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STRATEGIC

MARKETING

Definitions

MARKET:
A market is a medium that allows buyers and sellers of a specific good or service to
interact in order to facilitate an exchange.
It may either be a physical place where people come together to exchange goods
and services in person, as in a shopping center, or a virtual market wherein buyers
and sellers do not interact, as in an online marketing.

MARKETING:
Marketing is the practice of increasing awareness, consideration,
purchase/repurchase and preference for a product or service through customerdriven strategies.

STRATEGIC MARKETING:
Strategic Marketing is a long-term course of action designed to optimize allocation of
the scarce resources at the disposal of a firm in delivering superior customer
experiences and promote the interests of other stakeholders.

PRODUCT:
A product is a good, idea, method, information, object or service created as a result
of a process and serves a need or satisfies a want.

BUSINESS PRODUCTS AND CONSUMER PRODUCTS:

BUSINESS PRODUCTS
Products meant for use in producing
other products.

CONSUMER PRODUCTS
Products meant for the final consumer.

SERVICE:
A deed performed by one party for another.

BRAND:

A brand is a companys particular offering of a product, service, or other


consumption object. Brands represent the focus of MarCom efforts.

BRANDING:
The use of a name, term, symbol, or designor a combination of theseto identify
a product.

NEEDS, WANTS, DESIRES AND DEMANDS:

NEEDS
Needs are
something basic,
something
absolutely
necessary.

WANTS
A want is a feeling
for something you
lack.

DESIRES
A desire is the
craving to
apprehend your
want.

DEMANDS
The ability and
willingness to buy
a particular
commodity at a
given point of
time.

VALUE CREATION:
The performance of actions that increase the worth of goods, services or even a
business.

ADVERTISING:
A form of either mass communication or direct-to-consumer communication that is
non-personal and is paid for by various business firms, nonprofit organizations, and
individuals who are in some way identified in the advertising message and who hope
to inform or persuade members of a particular audience.

CUSTOMERS AND CONSUMERS:

CUSTOMERS
Customers are those who buy a
product/service and then sell it again or
give it to another person for use.

CONSUMERS
Consumers are those who actually use
the product/service.

EXCHANGE:
Exchange requires an almost instant bid and ask matching mechanism, settlement
and clearing, and market wide price communication and determination.

CUSTOMER SATISFACTION:
The number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specific
satisfaction goals.

ORGANIZATION:
A group of people who work together in an organized way for a shared purpose.

COMPETITOR:
A company in the same industry or similar industry, which offers a similar product or
service.

COMPETITIVE ADVANTAGE:
A firm has a marketing mix that the target market sees as better than the
competitors mix.

MARKET DRIVEN STRATEGY:


The underlying logic of market-driven strategy is that the customers that form the
market should be the starting point in business strategy formulation.

MARKET ORIENTATION:
Market orientation is a business perspective that makes customer the focal point of
a companys total operations.
A business is market-oriented when its culture is systematically and entirely
committed to the continuous creation of superior customer value.

INNOVATION:
The development and spread of new ideas, goods and services.

CROSS-FUNCTIONAL APPROACH:
It is an approach to work in which team members come from different areas of an
organization and have different skill sets.

MARKETING FUNCTION:
A role that helps a company to identify and source potentially successful products for
the marketplace and then promote them by differentiating them from similar
products.

CUSTOMER FOCUS:
Customer focus is offering customers a consistently great and relevant experience
across all touch points. Becoming customer oriented requires finding out what values
buyers want to help them satisfy their purchasing objectives. From the first time a
potential customer discovers your brand to every interaction they have with you,
their experience should be beautiful, easy, and effective.

COMPETITOR INTELLIGENCE:
A market-oriented organization recognizes the importance of understanding its
competition as well as the customer:
The key questions are which competitors, and what technologies, and whether
target customers perceive them as alternate satisfiers. Superior value requires that
the seller identify and understand the principal competitors short term strengths
and weaknesses and long-term capabilities and strategies.

CROSS-FUNCTIONAL COORDINATION:
Getting all business functionslike marketing, research, development and finance
to work together to provide superior customer value.
Individuals in separate functions or departments should act consistently in their
treatment of the customer.

PERFORMANCE IMPLICATIONS:
Performance implications address how well marketing activities are accomplished.
How well these activities are accomplished is influenced by how they are organized

and the specific behaviors the organization undertakes regarding customer


orientation, competitor analysis, innovation, and cost management.

Distinctive Capabilities:
A successful company achieves a competitive advantage that other firms cannot
replicate. This can happen by establishing a unique, distinctive character in the
relationships it has with its external environment/stakeholders or internally with
customers, suppliers, employees, investors, and shareholders.

OUTSIDE-IN PROCESSES:
They connect the organization to the external environment, providing market
feedback and forging external relationships.

INSIDE-OUT PROCESSES:
They are the activities necessary to satisfy customer value requirements like
manufacturing or operations, etc.

SPANNING PROCESSES:
All processes that occur between the inside-out processes and outside-in processes
are known as spanning processes.

MARKET SENSING:
It is defined as a set of processes that help the management in understanding the
external market in a better way. Its ultimate goal is to study the customers from
customers point of view rather than from the companys point of view.

CUSTOMER LINKING:
Customer linking is how a company connects beneficially with its customers.

CHANNEL BONDING:
It is the networking and building of relationships between the organization and
external sources, such as producer/retailer relationships or supplier/wholesaler
relationships.

TECHNOLOGY MONITORING:

It is the use of various methods of gathering information onlineuser experience,


applications, and infrastructure etc..to get vital information about new product
opportunities, service requirements, and competitive threats.

CUSTOMER ORDER FULFILLMENT:


It is the complete process from point of sales inquiry to delivery of a product/service
to the customer.

PRICING:
It is the process whereby a business sets the price at which it will sell its products and
services, and may be part of the businesss marketing plan.

PURCHASING:
It is the activity of acquiring something by paying for it.

CUSTOMER SERVICE DELIVERY:


It is how you offer support to the customersboth before and after they buy your
productthat helps them have an easy and enjoyable experience with you.
It is more than just providing answers; it is an important part of the promise your
brand makes to its customers. Moreover, it is critical to the success of your business.

NEW PRODUCT/SERVICE DEVELOPMENT:


It is described in the literature as the transformation of a market opportunity into a
product available for sale, and it can be tangible (that is, something physical you can
touch) or intangible (like a service, experience, or belief).

STRATEGY DEVELOPMENT:
Strategy development is a game plan that sets specific goals and objectives but like a
game plan, it is capable of being changed in response to shifting marketing dynamics.
The basic steps to strategic planning are:

Set your long-term goals.


Conduct a market and competitive analysis.
Assess where your company is now.
Do a SWOT analysis.

Compare where you are now and where you want to be in five years. How big
is the gap between the two?
Map out your strategic plan in writing.
Be flexible. The market changes constantly; new competition coming in, prices
shifting, and global economics impacting things.

FINANCIAL MANAGEMENT:
It is the effective and efficient management of money (funds) in such a manner as to
accomplish the objectives of the organization.

COST CONTROL:
It is the practice of identifying and reducing business expenses to increase profits.

TECHNOLOGY DEVELOPMENT:
Developing the scientific method that is used to give a solution to achieve an
industrial or commercial objective.

INTEGRATED LOGISTICS:
System-wide management of entire logistics chain as a single entity, instead of
separate management of individual logistical functions.

MANUFACTURING/TRANSFORMATION PROCESSES:
Manufacturing/Transformation processes are the steps through which raw materials
are transformed into a final product.

HUMAN RESOURCES MANAGEMENT:


It is the term used to describe the formal systems devised for the process of hiring
and developing employees so that they become more valuable to the organization.

ENVIRONMENTAL HEALTH AND SAFETY:


Health, Safety and Environment (HSE) is an umbrella term for the laws, rules,
guidance and processes designed to help protect employees, the public and the
environment from harm.
In the workplace, the responsibilities for designing and implementing appropriate
procedures is often assigned to a specific department, often called the "HSE"

department, which is responsible for environmental protection, occupational health


and safety at work. HSE management has two general objectives: prevention of
incidents or accidents that might result from abnormal operating conditions and
reduction of adverse effects that result from normal operating conditions.

CUSTOMER VALUE:
A customers perceived preference for and evaluation of those products attributes,
attribute performances, and consequences arising from use that facilitate (or block)
achieving the customers goals and purposes in use situations.
The difference between the benefits a customer sees from a market offering and the
costs of obtaining those benefits.

CUSTOMER LIFETIME VALUE:


CLV (Customer Lifetime Value) is a prediction of all the value a business will derive
from their entire relationship with a customer.
GLOBAL COMPETITION:
The existence of competing organizations that serve international customers. Access
to global customers has increased through enhanced communications, improved
shipping channels, reduction of barriers, and centralized finance authorities.

PRODUCT DIFFERENTIATION:
A source of competitive advantage that depends on producing some item that is
regarded to have unique and valuable characteristics
Products can be differentiated in two basic ways:
1. By variations in the physical appearance and attributes of the product based
on differences in design, styling, coloring and packaging, and differences in
quality composition, innovatory features and performance results
2. Broadly similar products may be differentiated in the minds of buyers by the
use of ADVERTISING and sales promotion techniques which emphasize
imputed or subjective aspects of the product.
For example: better than, cleaner and whiter than etc.

VALUE INNOVATION:
A strategic approach to business growth, involving a shift away from a focus on the
existing competition to one of trying to create entirely new markets. Value
innovation can be achieved by implementing a focus on innovation and creation of
new market possibilities.

CUSTOMER-DRIVEN STRATEGY:
Customer-driven strategy is concerned with meeting the needs of the organizations
actual and potential customers and, as a result, delivering the objectives of the
organization, such as profit or service in a public service organization.

IMPLEMENTATION CAPABILITIES:
The ability of an organization to execute and sustain market-driven strategy, and do
so on a global basis.

COPRPORATE, BUSINESS AND MARKETING STRATEGY:

CORPORATE
STRATEGY
Corporate strategy
consists of the decisions
made by top
management and the
resulting actions taken to
achieve the objectives set
for the business.

BUSINESS
STRATEGY
The long-term plan of
action designed to
achieve a particular goal
or set of goals or
objectives.

MARKETING
STRATEGY
A marketing strategy is a
process or model to allow
a company to focus
limited resources on the
best opportunities to
increase sales and
thereby achieve a
sustainable competitive
advantage.

REVOLUTION:
Forcible overthrow for an entirely new system; drastic, disruptive, far-reaching, and
momentous change.

RENEWAL:

It is the replacement, renovation, restoration, modernization, improvement,


reconditioning, rehabilitation, regeneration, overhauling, or redevelopment of a
product/service.

REINVENT:
To change something so much that it appears to be entirely new.

RESILIENT:
To be able to withstand or recover quickly from tough or difficult conditions.

EVOLUTION:
It is a gradual change, adaption, progression, or metamorphosis.

MARKET DEMAND:
The total demand for a product or service in the market as a whole.

COMPETITION:
The activity or condition of striving to gain or win something by defeating or
establishing superiority over others.

SCOPE:
Scope is concerned with resolving questions about the business the firm should be
in, where it should focus, and its enduring strategic purpose.

CORPORATE OBJECTIVES:
Indicate the dimensions of performance upon which to focus and the levels of
achievement required.

STRATEGY:
It is concerned with how the company can achieve its growth objectives in current or
new business areas.

RESOURCE ALLOCATION:
Addresses the division of limited resources across businesses and opportunities.

SYNERGIES:

Highlight competences, resources, and capabilities that derive efficiency and


effectiveness in the business.

CORPORATE VISION:
It defines what the corporation is and what it does and provides important
guidelines for managing and improving the corporation. Strategic choices about
where the firm is going in the futurechoices that take into account company
capabilities, resources, opportunities, and problemsestablish the vision of the
enterprise.

BUSINESS COMPOSITION:
When firms are serving multiple markets with different products, grouping similar
business areas together is called business composition.

BUSINESS DESIGN:
A business design is the totality of how a company selects its customers, defines and
differentiates its offerings, defines the tasks it will perform itself and those it will
outsource, configures its resources, goes to market, creates utility for customers, and
captures profit.

MARKETING MANAGEMENT:
Marketing management is the leadership function in the organization that designs
and guides organizational processes for sensing, resourcing, realizing, and learning
from the changing market environment, supplementing the traditional bureaucratic
view of management as analysis, planning, implementation, and control.

PRODUCT MARKET:
A product market consists of a specific product (or related products) that can satisfy
a set of needs and wants for the people (or organizations) willing and able to
purchase it.

COMPETITIVE SPACE:
Areas of business in which a firm feels comfortable against competitive pressures, on
the basis of its cost advantage and/or technological leadership.

MARKET SEGMENTATION:

It is the process of breaking down the total market into smaller, more homogeneous
groups of customers that you can more efficiently market to.
Companies segment customers using one of several common approaches:

Demographics
Geographic
Psychographics
Behavioral

DEMOGRAPHIC SEGMENTATION:
It is the division of larger market into groups based on age, race, gender, marital
status, occupation, education and income.

GEOGRAPHIC SEGMENTATION:
It is used by companies that sell products or services specific to a certain community,
state, region, country or a group of countries.

PSYCHOGRAPHIC SEGMENTATION:
Psychographics or lifestyle segmentation identifies customers based on interests and
activities in lieu of demographics.

BEHAVIORAL SEGMENTATION:
Behavioral segmentation is based on user behaviors, including patterns of use, price
sensitivity, brand loyalty and benefits sought.

STRATEGIC CUSTOMER RELATIONSHIP MANAGEMENT:


A strategic perspective on customer relationship management (CRM) emphasizes
delivering superior customer value by personalizing the interaction between the
customer and the company and achieving the coordination of complex
organizational capabilities around the customer.

TARGET MARKET:
It is a group of customers a business has decided to aim its marketing offers and
ultimately its merchandise towards.

MARKET TARGETING STRATEGY:

It is selecting the people (or organizations) that management wishes to serve in the
product-market. Its objective is to find the best match between the value
requirements of each segment and the organizations distinctive capabilities.

POSITIONING STRATEGY:
The combination of the product, value chain, price, and promotion strategies a firm
uses to position itself against its key competitors in meeting the needs and wants of
the buyers in the market target.

MARKETING MIX:
The strategies and tactics used to gain a favorable position are called the marketing
mix or the marketing program.

VALUE CHAIN:
The process or activities by which a company adds value to an article, including
production, marketing, and the provision of after-sales service.

PROMOTIONAL STRATEGY:
The choice of a target market and formulation of the most appropriate promotion
mix to influence it.

STRATEGETIC RELATIONSHIPS:
Agreement between two or more entities to conduct specified activities or
processes, to achieve specified objectives such as product development or
distribution.
Marketing relationship partners may include end-user customers, marketing channel
members, suppliers, competitor alliances, and internal teams.

STRATEGIC BRAND MANAGEMENT:


It consists of building brand value (equity) and managing the organizations system of
brands for overall performance.

PRICING STRATEGY:

Involves choosing the role of price in the positioning strategy, including the desired
positioning of the product or brand as well as the margins necessary to satisfy and
motivate distribution channel participants.

ESCALATING GLOBALIZATION:
It is the process of increased interconnectedness among countries worldwide.
The idea of globalization may be simplified by identifying several key characteristics:

Improved technology in transportation and telecommunications


Movement of people and capital
Diffusion of knowledge
Non-governmental organizations (NGOs) and multinational corporations

ETHICAL BEHAVIOR:
Acting in ways consistent with what society and individuals typically think is good
values. Ethical behavior tends to be good for business and involves demonstrating
respect for key moral principles that include honesty, fairness, equality, diversity and
individual rights.

CORPORATE SOCIAL RESPONSIBILITY:


This policy functions as a self-regulatory mechanism whereby a business monitors
and ensures its active compliance with the spirit of the law, ethical standards and
national or international norms.

DISRUPTIVE INNOVATIONS:
A disruptive innovation is an innovation that creates a new market and value
network and eventually disrupts an existing market and value network, displacing
established market leading firms, products and alliances.

COMMODITIZATION:
It is defined as the process by which goods that have economic value and are
distinguishable in terms of attributes (uniqueness or brand) end up becoming simple
commodities in the eyes of the market or consumers.
It is the movement of a market from differentiated to undifferentiated price
competition and from monopolistic to perfect competition. The key effect of

commoditization is that the pricing power of the manufacturer or brand is


weakened: when products become more similar from a buyers point of view, they
will tend to buy the cheapest.

PRODUCT-MARKET:
The term product-market recognizes that a market exists only when there are buyers
with needs who have the ability to purchase goods and services and products are
available to satisfy needs.

GENERIC PRODUCT-MARKET:
It includes a broad group of products that satisfy a general, yet similar need.

PRODUCT-TYPE PRODUCT-MARKET:
It includes all brands of a particular product type. It offers a specific set of benefits
intended to satisfy a customers need or want in a specific way.

SWOT ANALYSIS:
It is an acronym for strengths, weaknesses, opportunities, and threats and is a
structured planning method that evaluates those four elements of a project or
business venture.

ORGANIZATIONAL CHANGE:
It is about reviewing and modifying management structures and business processes.

BUSINESS CONSTRAINTS:
The business constraints can be fiscal limitations, physical limitations (for example
network capacity), time limitations (for example, completion before significant
events such as the next annual meeting) or any other limitation you anticipate as a
factor that effects the achievement of the business goal.

ORGANIZATIONAL DESIGN:
The manner in which a management achieves the right combination of
differentiation and integration of the organizations operations, in response to the
level of uncertainty in its external environment.

Differentiation refers to the subdivision of functional or departmental units, each


concentrating on a particular aspect of the organizations operations. Integration
refers to the linking of differentiated units to achieve unity of effort in working
toward organizations goals. In times of high uncertainty, greater organizational
effectiveness is achieved through high differentiation coupled with high integration.

VERTICAL DISAGGREGATION:
It is the cutting down of middle management and getting more direct with the lower
hierarchy for easier management.

ATTRACTIVENESS:
An attribute that includes any number of virtuous characteristics that receivers may
perceive in an endorser. The general concept of attractiveness consists of three
related ideas: similarity, familiarity, and liking.

ATTRIBUTES:
In the means-end conceptualization of advertising strategy, attributes are features or
aspects of the advertised product or brand.

COMPLEXITY:
The degree of perceived difficulty of an innovation. The more difficult an innovation
is to understand or use, the slower the rate of adoption.

WORTH:
The level at which a product deserves to be valued or rated.

CONSUMER MARKETS AND ORGANIZATIONAL MARKETS:

CONSUMER MARKETS

ORGANIZATIONAL MARKETS

Markets dominated by products and


services designed for the general
consumer.
Consumer markets are typically split
into four primary categories: consumer

All the individuals and companies who


purchase goods and services for some
use other than personal consumption.
They are divided into four components:
industrial market, reseller marker,

products, food and beverage products,


retail products, and transportation
products.

government market, and institutional


market.

ATTITUDES:
They are enduring systems of favorable or unfavorable evaluations about brands.

PERCEPTIONS:
Perceptions are how buyers select, organize, and interpret marketing stimuli, such as
advertising, personal selling, price, and the product.

EMERGING PRODUCT-MARKETS:
Product-markets that are newly formed are categorized as emerging and are created
by factors such as a new technology, the changing needs of buyers, and the
identification of unmet needs by suppliers.

GROWING PRODUCT-MARKETS:
They are the product markets that are experiencing rapid growth.

MATURE PRODUCT-MARKETS:
These product-markets are shifting from growth to maturity.

DECLINING PRODUCT-MARKETS:
A declining product-market is actually fading away instead of experiencing a
temporary decline or cyclical changes.

TEST MARKETING:
It generates information about the commercial feasibility of a promising new product
or about new positioning strategies for new products.

MARKET RESEARCH:
Any organized effort to gather information about target markets or customers.

COMPETITOR RESEARCH:

It is an assessment of the strengths and weaknesses of current and potential


competitors. This research provides both an offensive and defensive strategic
context to identify opportunities and threats.