Marketing Strategy

& Competitive Positioning

6th edition

Part 1
Marketing Strategy

Chapter 1
Market-Led Strategic
Management

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 Marketing Concept
Marketing concept holds that achieving organizational goals depends
on determining the needs and wants of target markets and delivering
the desired satisfactions more effectively and efficiently than
competitors do.
Kotler et al. (1996)

Marketing is the process of planning and executing the conception, pricing,

planning and distribution of ideas, goods and services to create exchanges
that satisfy individual & organizational objectives.
(American Marketing Association, 1985)

Marketing is the activity, set of institutions and processes for creating,

communicating, delivering and exchanging offerings that have value for
customers, clients, partners and society at large.
(American Marketing Association, 2013)

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Figure 1.1
Mutually beneficial exchanges

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Figure 1.2
Components and context of market orientation

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 Marketing Orientation
Defined as:

1.One or more depts. Engaging in in activities geared towards developing an

understanding of customers current and future needs and factors affecting
them

2.Sharing this understanding across depts.

3.Various depts. engaging in activities designed to meet select customer

needs

In sum it refers to Organization-wide generation, dissemination and

responsiveness to marketing intelligence

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 Marketing Orientation
Customer orientation
Competitor orientation
Interfunctional coordination
Organizational culture
Shareholder value
Understanding
customers well enough
continuously to create
superior value for them
Awareness of short term
and long term capabilities
of competitors
Using all company
resources to create value
for target customers
Linking employees and
managerial behaviour to
customer satisfaction
Create long term
shareholder value as
overriding business obj
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 Table 1.1
The fabric of the new marketing concept

Source: Webster (1994).

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Figure 1.3
Marketing approaches

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Figure 1.4
Organisational stakeholders

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Figure 1.5
Marketing and performance outcomes

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 6 Marketing Fundamentals
Principle 1 Focus on the customer
Principle 2 Compete in markets where you can
establish competitive advantage
Principle 3 Customers do no buy products – buy
what products can do for them i.e.
products that solve their problems
Principle 4 Marketing is too important to be left to
the marketing department (marketing is
everyone’s job in the org.)
Principle 5 Markets are heterogeneous

Principle 6 Markets and customers are constantly

changing

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Figure 1.6
Product and process improvement

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Figure 1.7
The role of marketing as strategic management
in the organisation

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