Strategic Marketing

MKT703
Virtual University of Pakistan

2/12/20 SMM1 1
Marketing –As a Pure Function

Original concept
Communication

Industry
Industry Goods and Services Market
Goods and Services Market
(Point
(Pointfor
for (Point for
Sellers)
Sellers) Money buyers)for
(Point
buyers)

Information
Conceptual development of Marketing

Production
ProductionConcept:
Concept:
Consumers
Consumers preferproducts
prefer productsthat
thatare
arewidely
widelyavailable
availableand
andinexpensive
inexpensive

Marketing
Product
ProductConcept
Concept
with Consumers
Consumersfavour
favourproducts
productsthat
thatoffer
offerthe
themost
most quality,
quality,performance,
performance,
functional or innovative features
or innovative features
approach

Selling
SellingConcept:
Concept:
Consumers
Consumerswill
willbuy
buyproducts
productsonly
onlyififthe
thecompany
companyaggressively
aggressively
promotes/sells these products
promotes/sells these products

Marketing Marketing
MarketingConcept:
Concept:
Focuses
Focuses on needs/wants
on needs/ wantsofoftarget
targetmarkets
markets&&delivering
deliveringvalue
valuebetter
better
as holistic than
than competitors, to a consumer who is exposed to informationby
competitors, to a consumer who is exposed to information by
approach media and IT
media and IT
How to look at Marketing?

Marketing as a function
Marketing as a philosophy
Marketing as a Culture
Corporate Business, SBUs and Functional Levels

Corporate
Corporatebusiness
business
decides:
decides:
• •SBU’s SBUs
SBUshave:
have:
SBU’sobjectives
objectivesand
andmarket
market Corpor
•which SBU to be promoted • • stand alone system
•which SBU to be promoted Corpor
ate stand alone system
• •its • • individual competitors
itsposition
positionininthe
themarket,
market, ate
Level individual competitors
• •its level of market share
its level of market share Level • • independent strategy
independent strategy
• •resource
resourceallocation
allocationfor
foritit • • recognizable
recognizabletarget
target
customers,
customers,
Business Unit Level • • profit
profitgeneration
generationtarget
target
Business Unit Level
Functional
FunctionalLevel
Level––HR,
HR,
Finance,
Finance, Marketing- -
Marketing
Support
Supportsystem
systemforfor
Corporate
Corporate Level andSBUs
Level and SBUs
level
level Functional Level
Functional Level

SMM1 5
Marketing as a Philosophy & Culture
Philosophy
"The aim of marketing is to know and understand the customer so well the
product or service fits him and sells itself.” Peter Drucker (1973)

Marketing as a Concept - Marketing Orientation as the

Operationalization of the Philosophy of Marketing

“The organization-wide generation of market intelligence, dissemination of

the intelligence across departments and organization-wide
responsiveness to it". Kohli and Jaworski (1990)

“The organization culture that most effectively and efficient creates the
necessary behaviours for the creation of superior value for buyers and,
thus, continuous superior performance for the business.” Narver and
Slater (1990)
Role of Marketing in Corporation - STP

•The tool of marketing

strategy that supports
SBU’s strategy is STP
• Positioning occurs Corporate Level
through 4Ps
• This positioning is
marketing strategy
•It is the function of SBU level
marketing

Functional
Marketing Level

SMM1 7
Marketing Philosophy, Concept,
Organizational Culture and Strategy

STP
Function of
• Marketing Marketing • Strategy
Orientation • 4p’s – product, price
• Organizational • Segmentation
promotion, place
Culture of • Targeting • Economic Success
Customer • Positioning or Failure
responsiveness
Marketing Philosophy Marketing
Marketing in developing and developed
countries
In developing countries demand is greater than supply
Marketing will have only functional not philosophical
status in firms which has monopoly
The case of developed countries - relationship b/n
marketing, competition and quality of life of the
citizens in terms of giving better choices
Marketing as theory has consensus in the context of
developed countries and can explain the behavior of
organization across all functional levels