QCF

Unit Title: Strategic Marketing Management

Learning Outcome:

1. Understand the broad concepts and processes of strategic development and

marketing planning and the associated theoretical models and frameworks.

Please note that the content of this Lecture Guide is listed in its recommended
teaching order, rather than in numerical order.

Assessment Criteria/Indicative Content:

1.1 Define marketing strategy and explain the role and scope of strategic marketing
and the difference between strategic and tactical marketing.

Examine the scope of strategic marketing. Explain that marketing strategy involves
planning and decision-making with the aim of selecting and pursuing marketing
opportunities to achieve competitive advantage. Show it consists of making decisions
on the businesss marketing expenditure, marketing mix, and expected
environmental and competitive conditions.

Explain that marketing strategy is the means by which a marketing objective is

achieved (McDonald & Payne). Show it is an intuitive process requiring a proper
analysis of the competitive market place and involves asking the right questions and
finding solutions to problems.

Show that in todays dynamic and competitive global market, planning cycles are
shortening. Organisations need to be flexible to changing conditions and update their
strategies more frequently than was traditionally the case.

Understand the difference between strategic and tactical marketing.

Explain that marketing strategy is the marketing logic by which the business unit
expects to achieve its marketing objectives.

Show that strategic marketing places the emphasis on achieving important long
term marketing aims and objectives and that tactical marketing moves marketing
from the strategic to the operational level and involves designing and implementing
plans for the short term.

1.2 Describe the strategic marketing planning process and each of the various
stages.

Students should be familiar with at least one well known staged planning model
such as McDonald, Kotler or Fifield. The chosen model is likely to include:
Mission, goals and corporate strategy
Organisational opportunities and capabilities
Strategic objectives
Target market strategy and brand positioning
Marketing objectives
Marketing programmes for implementation
 Performance assessment, feedback, benchmarking and control.

Explain, identify and describe the key strategic tools, models and processes
associated with strategic marketing development and show how they can be used to
assist strategic marketing decision-making. These include:
Gap Analysis
Porters Generic Strategy
Ansoffs Competitive Strategies
Profit Impact on Marketing Strategy (PIMS)
Boston Consultancy Group (BCG)
Product Portfolio Analysis
Shell Directional Policy Matrix
ABC Sales Contribution Analysis.

Examiners tips.

Tutors should ask students to get hold of a strategic business or marketing plan of an
organisation well known to them; maybe their business or college. They should have
a close look at it. Try and identify the mission/vision and strategic objectives. What
are the marketing objectives and programmes? Try and identify how the plan is
measured and controlled.

Having a working knowledge of the strategic marketing planning processes will

greatly help students with this programme.
 QCF
Unit Title: Strategic Marketing Management
Learning Outcome:

1. Understand the broad concepts and processes of strategic development and

marketing planning and the associated theoretical models and frameworks.

Assessment Criteria/Indicative Content:

1.2 Explain and evaluate the emerging marketing philosophies; including social
responsibility, societal and ethical marketing and their impact on strategic marketing
management.

Identify and discuss societal and customer value. Explain why organisations must
handle marketing responsibilities in a way that contributes towards the well being of
society as a whole. (Who does this well/badly?)

Explain that the consumers assessment of the products overall capacity must satisfy
his or her needs.

Have empathy and recognise customer and other stakeholder needs.

Explain the meaning of marketing in society and for the organisation.

Show that organisations must determine the needs, wants and interests of target
markets and deliver the desired satisfactions more effectively and efficiently than
competitors, in a way that maintains or improves the consumers and societys well-
being. Need to consider consumers, suppliers, society, the company and the
shareholders.

Understand the concept and dimensions of social responsibility.

Define and describe the importance of marketing ethics.

Be aware of ways to improve ethical decisions in marketing.

Using contemporary examples, show how organisations have lost competitive

advantage and value through unethical behaviour (e.g. Enron, Desani water, use of
child labour).

1.3 Identify the various business orientations and explain the importance of
marketing orientation and how to create a marketing culture throughout the
organisation.

Identify, describe and evaluate the various orientations of companies. Be able to

critically describe sales, marketing, product and production orientation:
What are the benefits of marketing orientation? (Give examples)
What is a marketing-orientated organisation? (Give examples)
What can be done to improve marketing orientation both internally and
externally?

Explain internal marketing and be able to create an internal marketing plan.

Marketing orientation is characterised by: orientation towards the customer, being
alert to competitive situations, co-operation between functions, emphasis on profit,
not turnover, and responsiveness to change.

Identify and discuss customer and shareholder value and be able to define and
explain value based marketing (VBM). Doyle (2000) defines this as: Delivering
superior value to customers so that management can in turn deliver superior value
to shareholders.

Examiners tips:

Students must appreciate the importance and contribution of marketing as a

business function and as an interface between the organisation and its customers.
They should understand the scope of tasks undertaken in strategic marketing and the
range of different organisational situations in which marketing is applied. Make a list
of organisations that have lost touch with their customers and ultimately lost their
competitive advantage.

Classroom activity
Ask candidates to bring to each lecture a practical example of how an organisation
has addressed an issue related to the lecture. If this is done throughout the course
candidates will have developed a portfolio of examples to use in the examination.
Excellent examples can be found in quality newspapers, magazines, the Internet or
from within the candidates own business.
 QCF
Unit Title: Strategic Marketing Management
Learning Outcome

2. Understand the importance of strategic marketing analysis and research and how
todays global, dynamic and highly competitive business environment influences
the process of strategic development and marketing planning.

Assessment Criteria/Indicative Content:

[This is another large topic and is therefore split into two Lecture Guides.]

2.1 Assess the importance of monitoring and analysing the external marketing
environment and how it is done.

Define a dynamic environment. Why are markets so dynamic today? (Create a

portfolio of contemporary examples for illustration).

All businesses operate within an environment, which directly or indirectly affects the
way in which they function. Why is this the case?

Understand the macro environment in a dynamic environment with particular

reference to contemporary issues such as technology, self regulation, customer
power, regulation, laws of marketing practice, environmental issues etc. Explain that
many of these influences are uncontrollable by the organisation.

Understand how a market can be broken down in various ways. It is often done as:
Political and legal (e.g. regulation, laws, industrial practices, tax
issues)
Social and cultural (e.g. population levels and trends, changing tastes)
Technological (e.g. new production methods, use/access to the
Internet)
The market (e.g. the size, trends, communication methods)
The competition (e.g. number of competitors, market share)
The environment (e.g. demand for green issues, government
controls).

2.2 Discuss the importance of evaluating the internal environment and

understanding the needs of the various stakeholders.

Understand company-specific micro marketing environmental forces; these tend to

be more controllable and include those within the organisation, with suppliers,
intermediaries, buyers, competitors etc.

Be able to undertake analysis and critically review an organisations resources,

capabilities, and current market position.

Be able to undertake a SWOT analysis and use the SWOT results within the
strategic marketing management process to aid decision-making.

Demonstrate and apply portfolio models to the analysis of markets and competitors.

2.3 Discuss how to evaluate customers and competitive forces that impact on the
strategic marketing plan.

Describe, explain and show diagrammatically product and market portfolio tools.
These include:
BCG
Directional policy matrix
PIMS
ABC sales, contribution analysis
PLC
Porters five forces
McKinseys seven Ss.

Students must be able to critically evaluate each of these tools and consider their
value in the contemporary marketplace and be able to comment on their relevance
today, particularly with reference to SMEs.

Examiners tips:

All businesses operate within an environment which directly or indirectly affects the
way in which they function. Understanding the marketing environment is usually the
starting point for any strategic planning activity. The strategic marketer must fully
understand this. This is a frequent area for questioning in examinations.

Classroom activity - Take a company like BP (BP.com), or another well known

company, and in groups review the marketing environment that it is operating in.
Examine it from the perspective of the political, legal, social, cultural and
technological issues it faces. Also examine the market, its competitors and the
environment. Tutors should get students to explain how understanding the marketing
environment aids strategic marketing planning and development.
 QCF
Unit Title: Strategic Marketing Management
Learning Outcome:

2. Understand the importance of strategic marketing analysis and research, and how
todays global, dynamic and highly competitive business environment influences
the process of strategic development and marketing planning.

Assessment Criteria/Indicative Content:

2.4 Explain how strategic marketing information is collected, analysed and

distributed.

Explain the importance of monitoring and analysing the marketing environment.

Show how monitoring the marketing environment is crucial to an organisations
survival and long term achievement of its goals. This should be done through
effective environmental scanning and analysis. Scanning involves collecting
information, observing, keeping an ear to the ground, and using secondary data
and market research. Analysis involves assessing and interpreting the information
to determine possible threats and fend off competitor actions in order to maximise
marketing opportunities. Students need to be aware that this will often involve
substantial information that needs to be managed. How might this be done in
different sized companies?

Undertaking environmental evaluation and research tends to be expensive. How

can this be handled in small businesses? How is it handled in your college or
business?

Evaluate the importance of learning. What is knowledge management? Information

is said to be power. Is this correct?

Define, describe and explain Management Information Systems (MIS) and Marketing
Information Systems (MkIS) and show clearly their importance to the strategic
marketer. Candidates must understand the importance of collecting information,
analysing the information and then using that information to aid decision-making.
Many organisations collect information but do not use it! Why is this?

Understand the five steps of the marketing research plan:

Locating and defining the problem
Designing the research
Collecting the data
Interpreting the findings
Reporting the research findings.

Identify, describe and explain the advantages and disadvantages of the key data
collection methods. Secondary sources, also known as desk research, consists of
data and information that already exists and can be accessed by the organisation. It
may be internal and external. Primary sources include: sampling procedures, survey
methods, observation and experimentation.

Candidates should be aware how technology is providing new and faster methods of
data collection which includes internet searches, on-line surveys and computer-
assisted telephone interviewing etc.
Candidates should understand the importance of research to aid strategic marketing
decision-making; however, legal and ethical issues must be fully observed.

Examiners tips:

Market research is an essential tool for the strategic marketing manager and
candidates must have a working knowledge of the various techniques and be able to
explain in what circumstances a particular method would be appropriate.

Classroom activity
Identify each research method and determine in what circumstance each would be
appropriate.
 QCF
Unit Title: Strategic Marketing Management
Learning Outcome:

3. Understand how organisations determine their strategic direction and know how to
identify and evaluate the various ways in which this can be achieved.

Assessment Criteria/Indicative Content:

3.1 Describe the functions of a vision, mission statement, goals and objectives.

Explain that central to the strategic marketing plan is a clear view of the
organisational vision, mission, goals and objectives. Mission is about corporate
values and how the organisation will behave. Vision is about what the organisation is
going to become. Both are important and often combined.

The mission is defined as the broad, long term tasks that the organisation wants to
accomplish (Wensley). A mission/vision statement should become the focus of an
organisations direction for the coming years. Two good examples are:
Google: To make the worlds information universally accessible and useful.
Toyota: To sustain profitable growth by providing the best customer
experience and dealer support.

Goals should specify the ends, or results, that are sought. Examples may be profit,
return on investment, increases in market share, the desire to enter new markets,
etc.

Strategic objectives - determine the most promising directions for the business and
marketing activities. Objectives should always be SMART and start with the word to.

3.2 Explain the importance of flexibility in determining strategic marketing plans.

Understand the term hierarchy of plans and the various types of plans you are
likely to come across (the corporate plan, the strategic plan, functional plans and
contingency plans).

Discuss how organisations have traditionally developed short, medium and long term
plans.

Explain that in the current dynamic, complex and fast changing global market there is
a need for flexibility in determining marketing objectives and that this requires
frequent performance metrics, feedback and review.

Explain why the traditional planning cycle is becoming shorter. Show that in order to
gain sustainable competitive advantage organisations need to be quick on their
feet.

3.3 Explain the various strategic options organisations may consider in order to
achieve their desired strategic direction and how these options are evaluated. Once
an organisation has set its mission, vision, goals, and objectives there are usually a
number of ways (options) of achieving them. To help the strategic marketer decide
the best approach, a number of models and frameworks exist to help the decision-
making process. Candidates must be able to apply, describe and explain these
models and frameworks. These include: Ansoff, Porter, PIMS, BCG, GE matrix etc.
Show why some of the traditional frameworks are now considered by some people to
no longer be appropriate. A good example is the BCG matrix which is not really
appropriate when considering SMEs. Why is this the case?

Candidates must recognise that when considering various strategic options they
must take into account both financial and non-financial factors. Financial factors may
include issues such as return on capital, payback, cash flow valuation, economic
value added (EVA), profitability, shareholder added value etc. Non-financial factors
may include issues such as market share, sales volume, market image etc.

Examiners tips:

A common reason why some students do badly in the examination is that they fail to
answer every part of the question. Most questions have two or three parts and to
secure a good pass grade each part MUST be answered. For instance, if the
question asks for examples or using a context of your choice, this must be done. All
candidates should make a point of building up a portfolio of examples to use in the
examination.

Recent examinations suggest that candidates are particularly weak at critically

evaluating issues. Where questions ask for evaluation the examiner is looking for a
balanced approach showing the advantages and disadvantages and ideally a
conclusion.
 QCF
Unit Title: Strategic Marketing Management
Learning Outcome:

4. Understand how to implement, measure and control strategic marketing plans.

Assessment Criteria/Indicative Content:

There is a substantial amount of content within this learning outcome and therefore it
has been split into four lectures.

4.1 Define, explain and evaluate the use of segmentation, targeting and positioning
in differing circumstances.

Show that Market segmentation is the sub-dividing of a market into homogeneous

sub-sets of customers, where the sub-set may conceivably be selected as a market
target to be reached with a distinct mix (Kotler). Segmentation needs a deep
understanding of customers and it must recognise the diversity of customer
requirements, perceptions and expectations (how is this done?).

Explain that targeting involves making decisions about which market segment(s) a
business should prioritise for its sales and marketing efforts. Show that the approach
may be either the same for all targeted segments or may be differentiated.

Describe and explain what is meant by undifferentiated, concentrated and

differentiated strategies and use appropriate examples to illustrate each.

Explain that positioning refers to the place that the product/service holds in the minds
of the target audience. Show diagrammatically and explain that positioning maps are
a useful tool for understanding competitor analysis as well as for communicating
marketing strategy.

Explain that if the objectives cannot be achieved then the product/service may need
to be repositioned or withdrawn.

Explain that with rigorous analysis and understanding of the market, strategic
marketing managers can make quality decisions about where and how to compete.

Describe the product life cycle (PLC) and explain its implications for managing the
marketing mix. Explain the PLC concept and be able to show diagrammatically the
key shapes.
What are the characteristics of each stage?
How can a portfolio be balanced through the various stages?
Why do products tend to go through the various stages faster
today?
Not everyone believes that the PLC is a valid concept today. Why
is this so?

Identify and describe the buying process in both the B2B and B2C markets. What is
buying behaviour?

Explain and discuss the consumer buying decision process: problem recognition,
information search, evaluation of alternatives, purchase and post purchase
evaluation.

What are the factors that influence the buying decision making process (personal
factors, psychological factors and social factors)?

At a time when consumer expectations of products and services are rising, it is more
important than ever to keep abreast of trends in consumer behaviour. Why?

Explain the components of the business decision making unit (DMU) and how it
works in practice. What strategies can be developed to overcome barriers?

Examiners tips:

Segmentation, targeting and positioning are frequent areas for examination

questioning.

Limited resources generally result in organisations being unable to serve all of the
needs in the market and therefore marketers must trade-off choices based on the
relative merits of different market segments in determining which groups to prioritise.

Class work - Tutors should split the class into say three groups and ask each group
to choose a product and discuss how it could best be segmented and targeted; then
determine a suitable positioning strategy. The tutor should then get one person from
each group to present their findings followed by a general discussion.
 QCF
Unit Title: Strategic Marketing Management
Learning Outcome:

4. Understand how to implement, measure and control strategic marketing plans.

Assessment Criteria/Indicative Content:

4.2 Evaluate the role of the marketing mix within the strategic marketing plan and
demonstrate its application in practice.

Explain and demonstrate an understanding of the components of the marketing mix

(4Ps) and the extra 3Ps of the extended marketing mix for services. Some authors
now suggest there is an 8th P (Planet) given the importance of the environment
today.

Explain how marketing strategy involves selecting the opportunities to pursue,

analysing the target market and implementing it through the marketing mix.

Be aware that a product can be a good, a service or an idea.

Discuss and explain the importance of creating products and services that satisfy
consumer needs and wants.

Understand the importance of developing new products. Explain the new product
development process (NPD) and be able to discuss each of the stages.

Explain the importance of modifying existing products and why those products that
no longer satisfy buyers and/or yield acceptable profits should be eliminated.

Be able to undertake product/service analysis which products/services are doing

well/badly.

Discuss the importance of innovation and be able to explain what an innovation audit
is.

Describe and explain the role of strategic marketing communications, both internally
and externally.

Identify and explain the tools of the communication mix and Push, Pull and
Profile strategies.

Be able to create a communications plan using a contemporary communications

model situation analysis, objectives, strategies (3Ps), budget, measurement and
control, etc.

Understand the ethical considerations associated with communication.

Be able to communicate to the various stakeholder groups shareholders,

government departments, pressure groups, suppliers, the community, staff,
customers etc.
Explain and discuss standardisation and adaption (be able to give examples of
each).
Show how technology is creating new communication tools and new methods of
evaluation (e.g. new media, internet research).

Identify and evaluate the key factors in deciding the promotional mix and create a
portfolio of examples to illustrate understanding.

Describe and explain the nature of channel decisions in strategic marketing:

Explain the traditional distribution channels.
Discuss the impact that technology, especially the Internet, is having
on distribution (e.g. intermediation/re-intermediation, JIT, electronic
tracking etc.).
Discuss the important issues associated with channel motivation and
management.

Examiners tips:

Technology is impacting on all aspects of marketing and candidates should try to

incorporate the latest thinking in their answers.

Classroom activity
Students should discuss the following: why is it important to adhere to the principle of
analysis first, then marketing strategy development, followed ultimately by
programmes for implementing the recommended marketing strategy?
 QCF
Unit Title: Strategic Marketing Management
Learning Outcome:

4. Understand how to implement, measure and control strategic marketing plans.

Assessment Criteria/Indicative Content:

4.2 (continued) Explain the role of price in strategic marketing management and
practice.

Students need to have a working knowledge of price competition, pricing policy,

pricing objectives, pricing strategies, price management, international pricing issues
and the position of price in the product life cycle.

Explain and assess direct marketing (DM) activities within strategic marketing.
Understand how to collect DM data.
Explain the importance of fulfilment and customer care.
Show how technology is impacting on DM.

4.3 Define branding and evaluate its purpose, value and merits within the context of
strategic marketing management.

Define a brand and explain the purpose of branding. Show how it can benefit an
organisation both domestically and internationally.

Explain the various branding strategies, the categories of brands and how brands
are built and managed.

Be able to assess the ongoing debate between manufacturers brands and private
brands.

Explain how brands are valued, how brand value can be enhanced, and what factors
may contribute to brand value erosion.

What is brand piracy?

Be aware of the effect social media can have on branding.

4.4 Examine the growing importance of services within the context of strategic
marketing.

Understand the additional three Ps of service marketing: people, physical evidence

and processes.

Understand the nature of services: intangibility, inseparability, perishability and

heterogeneity.

Explain the problems involved in developing a differential advantage in services.

Explain and discuss the concept of service quality and be able to illustrate and
demonstrate appropriate service quality models (Servqual, Consumer Expectation
and Perceived Performance model etc.).
Be able to illustrate, using contemporary examples, some organisations that provide
excellent service quality and some that do not.

Understand the meaning of not for profit marketing. Why is it different?

Examiners tips:

Brands are at the very heart of marketing and this is a frequent area for examination
questioning.

Class work activity

The recognition of brands as assets is likely to become more emphasised in future as
financial directors and accountants increasingly use brand valuation techniques in
balance sheets. Lecturers should make sure candidates are aware of the various
approaches to brand valuation and be able to illustrate with appropriate examples
where organisations have been able to increase brand value and where other
organisations have suffered brand value erosion.
 QCF
Unit Title: Strategic Marketing Management
Learning Outcome:

4. Understand how to implement, measure and control strategic marketing plans.

Assessment Criteria/Indicative Content:

4.5 Evaluate the issues associated with implementing, measuring and controlling
strategic marketing plans and assess the challenges that may exist.

Be able to explain how marketing strategies and plans can be turned into marketing
actions in order to accomplish strategic marketing objectives.

Understand the various issues that may affect the successful implementation and
control of marketing strategy: external factors - social, legal, economic, political,
technological, environmental, and internal factors - leadership, organisational culture,
organisational design, financial policies, resources, evaluation and control, interface
with other departments, budgets, management style etc.

Identify and discuss the five key elements to successful implementation an action
plan, the right organisational structure, a decision and reward system, human
resource planning and an appropriate company culture.

Explain how to develop marketing budgets and create activity plans and schedules.

Be able to construct a Gantt chart to display work/time.

Be able to measure and evaluate the results of marketing strategies and plans and
take corrective action to ensure that marketing objectives are obtained.

What is operating control? What is strategic control?

Describe and explain the Balanced Scorecard approach (or other appropriate method
of measurement).

What is management by exception?

Understand the key financial ratios.

Be able to measure non-financial activities, e.g. customer satisfaction/loyalty,

innovation, brand equity, customer and staff attitudes, staff effectiveness, market
share.

4.6 Assess the role of other functions in the implementation of marketing strategy
and the creation of organisational structure consistent with effective strategic
marketing planning.

Understand the importance of working closely with all other business functions when
developing and implementing marketing strategy.

Discuss what strategies may be implemented to improve cross-functional working

and co-operation.
Explain and discuss the various organisational structures that may be adapted to aid
implementation of the strategic marketing plan.

Where does marketing fit within the organisation?

Centralisation verses decentralisation
Organisation by function
Organisation by product
Organisation by category
Organisation by region
Organisation by customer type.

Explain that many organisations have adapted their structures in recent years driven
by changes to the market and environment, the need to reduce costs, a desire to
improve efficiency and to exploit technological advancements etc.

Be able to develop an appropriate organisational structure for a specific organisation.

Examiners tips:

Candidates need to understand that modern marketing is not so much a functional

area of management as an overall business philosophy that should encompass the
whole organisation. A truly marketing orientated organisation is one that is customer
led and one in which every member of the organisation understands the importance
of the customer whether they are directly involved with customers or not. At the same
time the strategic marketer seeks to create marketing plans and strategies designed
to achieve shareholder value and sustainable competitive advantage. To achieve
both of these objectives can be a difficult balance.
 QCF
Unit Title: Strategic Marketing Management
Learning Outcome:

5. Understand how strategic marketing can be applied to a range of business

contexts including the small to medium-sized sector.

Assessment Criteria/Indicative Content:

5.1 Describe the different characteristics between large and small firms and the
effect this has on strategic marketing strategy.

Candidates should be able to discuss the advantages/disadvantages of large and

small firms and explain why small firms may have some advantages over large firms.

Small firms
Have small market share and little influence, but may dominate a
niche.
Often lack resources (funding, skills, professional expertise and
time).
Tend to be more tactical than strategic and often tend to fire-fight.
Many have a flexible culture and are relatively quick at making
decisions.
They are often effective at innovation. Why is this?
Many lack knowledge and knowledge management systems.
Many are personally owned. The owner is often involved in
everything.
E-commerce and technology have allowed many small firms to
grow rapidly.

Large firms
Tend to have larger market share and can often influence the
market.
Usually have larger resources and a more rigid culture.
Most are managed by directors and owned by shareholders.
Tend to be more structured but slower at decision-making.
They tend to be less successful at innovation.

5.2 Evaluate the key characteristics of the small firm, the increasing role small firms
play in both developed and developing economies and the suitability of the key
strategic marketing theories and models to firms within the small to medium sized
sector.

Be able to define SMEs (0-249 employees, most have between 0-10 employees).
Explain their increasing role in both developing and established economies.

When answering questions about SMEs it is important to specify the size, type,
geographical location and sector because there are major variations.

Technology (especially electronic trading) allows many SMEs to expand

internationally.

SMEs can evolve very quickly (be able to give examples).

Many of the traditional marketing models were developed in the 1980s/90s largely
based on large organisations in a relatively stable market. Candidates should be
aware that some of the traditional models are not appropriate to SMEs in todays
dynamic and complex market (have some examples ready for the exam).

5.3 Assess the appropriateness of strategic marketing across all sectors of business.

Candidates are likely to face questions from within a wide range of business contexts
or be asked to choose a context of their choice. Often they will be required to
illustrate their answer with contemporary examples from within the chosen sector.
Questions are likely to cover the following contexts:
Domestic/regional/global
Profit and not for profit organisations
Public and private companies
Limited companies, partnerships and sole traders
Organisations at different stages in the life cycle (introduction to
decline)
B2B, B2C, C2C (i.e. eBay) C2B (i.e. letsbuyit.com).

Examiners tips:

Frequently examination questions require candidates to answer the question from

within a given context or by using an organisation of their choice. In such cases it is
imperative that the candidate describes the organisation in sufficient detail for the
examiner to fully understand the organisational type. The type of answer required will
vary significantly depending upon the type of organisation, its size, sector and
geographical location etc. Far too often candidates fail to describe the context in
sufficient detail and consequently such answers tend to be awarded lower marks.
 QCF
Unit Title: Strategic Marketing Management
Learning Outcome:

6. Understand the impact that technological advances have on strategic marketing

and be able to incorporate such advances into strategic marketing plans.

Assessment Criteria/Indicative Content:

This is a large topic and is therefore split into two Lecture Guides.

6.1 Describe the role of information technology in strategic marketing management

and practice.

Explain why the development and implementation of many marketing strategies

today depends upon the effective use of sophisticated information technologies.

Show how information technology has an important role to play in the process of
implementing such activities as: online marketing communications, information
dissemination, file transference, information gathering, search and browser activity,
product display, payment and delivery, changes to intermediaries, customer
relationships, stock holding levels etc. Why is this the case?

How can the strategic use of IT help gain competitive advantage/reduce competitive
disadvantage?

It is said that IT is now a key driver in many businesses and many are conducting
business through cyberspace. What are the risks? Examples?

6.2 Assess how technology is influencing strategic marketing management and

practice.

Technology advances have influenced almost all marketing activities and can greatly
assist the strategic marketer. Some examples are listed below:
Knowledge management and databases
Dissemination of information across departments
Internal marketing (e-mail communication etc.)
Integrated databases
Cost reductions - restructuring, electronic ordering and delivery /
JIT etc.
Changes in the distribution channels (electronic delivery click
throughs)
Reduction in geographic boundaries (the global village / beneficial
to SMEs)
Communication methods (new media)
Customer relationships. CRM, loyalty promotions, one to one
marketing
New payment systems / e-commerce
The need for tighter regulation - privacy, spamming, permission
marketing etc.
The ability to enter global market via the Internet
Global sourcing
Electronic shop window via the WWW
6.3 Explain how technology can help the strategic marketing manager gain
competitive advantage and/or reduce competitive disadvantage.

Be able to identify and discuss future technological trends and themes and explain
how they may benefit strategic marketing management and practice.

Internet marketing is increasing as internet penetration grows throughout the world.

With broadband rollout globally the internet will become more of a mainstream
marketing tool. With more experience of using the internet and as trust grows it is
likely that consumers and business will spend more via this channel.

The internet has opened up a vast wealth of information sources, both free and paid
for, and has provided a new way of undertaking research.

It has also become a cost-effective distribution channel through e-retailing and

cybermediaries alongside traditional channels.

The internet has also become an advertising medium in its own right to compliment
other media

It can add value to customer service and customer relationship programmes.

Examiners tips:

Investing in e-marketing is an important decision for many organisations and is likely

to feature in many examination answers. Smith & Taylor (2002) summarise the main
benefits of e-marketing as the 5Ss.
Sell: selling goods and services online potentially to a global market.
Serve: using the website as a way of providing additional services.
Save: saving money in terms of overheads.
Speak: websites offer companies a chance to enter into a 1-2-1 dialogue.
Sizzle: a well designed website can add an extra something to the brand.
 QCF
Unit Title: Strategic Marketing Management
Learning Outcome:

6. Understand the impact that technological advances have on strategic marketing

and be able to incorporate such advances into strategic marketing plans.

Assessment Criteria/Indicative Content:

6.3 Be aware of the growth of new media (e-mail, wireless marketing and
interactive TV (iTV)) and how it can be used to build relationships with customers
through relevant targeted content.

Show that imaginative well designed messages can be used in viral marketing to
encourage recipients to pass the message on to a friend (e.g. Hotmail).

Explain that mobile marketing mainly involves text messaging as a form of marketing
communication, but technology will open up new avenues for wireless marketing.

iTV marketing provides the opportunity for two way communication between the
marketer and an individual via the television set. The consumer can use the remote
to request further information about a product or service.

Candidates need to be able to describe and discuss digital and social media. These
are primarily internet and mobile based tools for sharing and discussing information
amongst humans.

Explain how digital and social media helps the strategic marketer understand the
marketing conversation about the business. It helps marketers understand what the
buzz is about. This conversation takes place through blogs and social networks
such as Facebook, Twitter, Wiki etc. Knowing what is being said is crucial to the
strategic marketer because these discussions influence consumer attitudes and
behaviours. Candidates should be prepared to illustrate their discussions with
appropriate real life examples.

Explain and discuss the risks associated with conducting business through
cyberspace.

Marketing used to be simpler with few channels, less direct consumer influences and
frankly less risk. Marketing has however been transformed by technology.
Candidates need to be able to identify and discuss the key risks. These will vary
from country to country but are likely to include some of the following:
The local facilities
Availability of technology (e.g. internet/broadband) in the respective
markets
Disposable income for the purchase of equipment
Reliability of equipment and ability to upgrade
Local legislation / ethics and regulations
Lack of knowledge, skills and training
Local culture
Trust in technology - payment issues, delivery failures
Consumer acceptance
Examiners tips:

Technology does not change any of the fundamentals of doing good business or
good marketing. Companies that will succeed and benefit from technology will be
those that keep their core strategic objectives in view and then work out how to
integrate technological advances to help achieve those core objectives. Remember
what is important is to create differentiation and gain sustainable competitive
advantage. The Internet, new media and other technological advances may help
achieve this.