Strategic Marketing Management
Contents
Lecture 1 Introduction..................................................................................................................................... 2
Lecture 2 CSR (Guest Lecture) (i) ..................................................................................................................... 3
Lecture 3 CSR (ii).............................................................................................................................................. 4
Lecture 4 Decision-making (i) .......................................................................................................................... 7
1 Accumulate organizational knowledge .................................................................................................... 7
2 Get help .................................................................................................................................................. 10
Lecture 5 Decision-making (ii) ....................................................................................................................... 11
3 Be responsive ......................................................................................................................................... 11
4 Think and decide rationally .................................................................................................................... 12
Lecture 6 - Innovations.................................................................................................................................. 15
1 In-house R&D ......................................................................................................................................... 18
2 Outsourcing NPD (New Product Development) ..................................................................................... 19
3 Co-developing with customers............................................................................................................... 19
Lecture 7 – Online Marketing Strategy ......................................................................................................... 21
1 Digital Marketing Introduction............................................................................................................... 21
2 Impact on the marketing mix ................................................................................................................. 23
3 Social Media Marketing ......................................................................................................................... 23
Lecture 8 – Strategic Pricing .......................................................................................................................... 25
1 Pricing strategies .................................................................................................................................... 25
2 Price adjustment .................................................................................................................................... 28
3 Psychological aspects of pricing ............................................................................................................. 29
Lecture 9 – Customer Experience ................................................................................................................. 31
1 Customer Experience Introduction ........................................................................................................ 31
2 Understanding the Customer Journey ................................................................................................... 32
3 Managing Customer Experience ............................................................................................................ 34
1
,Lecture 1 Introduction
Marketing strategy: A thoughtful plan by a company to produce desired outcomes in the marketplace vis-
à-vis customers, channel members and competitors (Kotler, 2012). Another definition is an organization’s
integrated pattern of decision that specify its crucial choices concerning products, markets, marketing
activities and marketing resources in creation, communication and/or delivery of products that offer value
to customers in exchanges with the organization and thereby enables the organization to achieve specific
objectives (Varadarajan, 2010). It is to create a competitive advantage. It has the following components:
1) Distinctive: As opposed to similar characteristics or decisions as competing firms
2) Coherent: As opposed to a set of uncoordinated tactics
3) Dynamic: Poor implementation of activities
Characteristics strategic marketing decisions (as opposed to tactical marketing decisions) (Varadarajan,
2010):
1) Entail major resources commitments spread over long periods (around 5 years+)
2) Impact over longer time periods
3) Result in a distinguishable competitive advantage
4) Irreversible or difficult to reverse
5) Entails tradeoffs (e.g., if strategy A -> strategy B & C foregone…)
6) Made in the context of other strategic decisions (interdependencies)
7) Made at a higher level of the organization
Tactical marketing decisions: Short term (annual or quarterly) decisions to execute the strategic
directions within the firm. Filling in the marketing mix of the individual product or brand to realize the
company strategic goals (e.g. brand price level, advertising by brand, sales force allocation etc.). This
course will cover this as well
2
,Lecture 2 CSR (Guest Lecture) (i)
Shareholder capitalism: Legal foundation was established in the Dodge v. Ford company in 1919. Lost
some sparkle during the Great Depression but was reinforced by Milton Friedman in the 70’s. It has been
challenged (a.o. by the WEF) ever since
The Business Roundtable: An association of chief executive officers of America’s leading companies
working to promote a thriving U.S. economy and expanded opportunity for all Americans through sound
public policy. Previously, it thought the purpose of a company is solely to maximize shareholder return. It
now strives to go from a focus on shareholders to an inclusive approach to customers, employees,
suppliers, communities and shareholders. Many purpose-led multinationals focus on innovation and
creating value for multiple shareholders, but few go as far to quantify the extent they are willing to go
Shared Value strategy: Simultaneously create for the business and for society. It strives to meet societal
needs that expand opportunities for the business. It has a scalable societal impact because shared value is
self-sustaining
3
, CSV: Creating shared value. This is increasingly becoming a business imperative since big societal issues
are so complex that they require expertise and scalable business models of the private sector
Five key conditions for success in driving collective impact (Kramer & Pfitzer, 2016):
1) Common agenda
2) Shared measurement system
3) Mutually reinforcing activities
4) Constant communication
5) Dedicated backbone support
System leadership: Helping other in the coalition to understand how the health of the whole system
benefits each party
Three reasons why shared value is so difficult:
1) Legitimacy and importance of trust
2) Competitive free riders
3) Justification of investment
a. Expertise required in both societal and business issues
b. Long term commitment needed
c. Ring-fenced budgets required
Key elements of responsible leadership:
• Respect, honesty, responsibility, accountability, morality, trust, driven by ethical principles
• Compassion towards rest of society, social responsibility (triple P&L, CSV)
• Multi stakeholder approach
Definition of responsible leadership: Responsible leaders build and cultivate sustainable relationships
with stakeholders to achieve mutually shared objectives based upon a vision of business as a force of
good for the many. It implies responsibilities towards the various stakeholders
Lecture 3 CSR (ii)
How to get people to talk about your CSR:
• Events
• Inform the press
• Make it shareable
4
Contents
Lecture 1 Introduction..................................................................................................................................... 2
Lecture 2 CSR (Guest Lecture) (i) ..................................................................................................................... 3
Lecture 3 CSR (ii).............................................................................................................................................. 4
Lecture 4 Decision-making (i) .......................................................................................................................... 7
1 Accumulate organizational knowledge .................................................................................................... 7
2 Get help .................................................................................................................................................. 10
Lecture 5 Decision-making (ii) ....................................................................................................................... 11
3 Be responsive ......................................................................................................................................... 11
4 Think and decide rationally .................................................................................................................... 12
Lecture 6 - Innovations.................................................................................................................................. 15
1 In-house R&D ......................................................................................................................................... 18
2 Outsourcing NPD (New Product Development) ..................................................................................... 19
3 Co-developing with customers............................................................................................................... 19
Lecture 7 – Online Marketing Strategy ......................................................................................................... 21
1 Digital Marketing Introduction............................................................................................................... 21
2 Impact on the marketing mix ................................................................................................................. 23
3 Social Media Marketing ......................................................................................................................... 23
Lecture 8 – Strategic Pricing .......................................................................................................................... 25
1 Pricing strategies .................................................................................................................................... 25
2 Price adjustment .................................................................................................................................... 28
3 Psychological aspects of pricing ............................................................................................................. 29
Lecture 9 – Customer Experience ................................................................................................................. 31
1 Customer Experience Introduction ........................................................................................................ 31
2 Understanding the Customer Journey ................................................................................................... 32
3 Managing Customer Experience ............................................................................................................ 34
1
,Lecture 1 Introduction
Marketing strategy: A thoughtful plan by a company to produce desired outcomes in the marketplace vis-
à-vis customers, channel members and competitors (Kotler, 2012). Another definition is an organization’s
integrated pattern of decision that specify its crucial choices concerning products, markets, marketing
activities and marketing resources in creation, communication and/or delivery of products that offer value
to customers in exchanges with the organization and thereby enables the organization to achieve specific
objectives (Varadarajan, 2010). It is to create a competitive advantage. It has the following components:
1) Distinctive: As opposed to similar characteristics or decisions as competing firms
2) Coherent: As opposed to a set of uncoordinated tactics
3) Dynamic: Poor implementation of activities
Characteristics strategic marketing decisions (as opposed to tactical marketing decisions) (Varadarajan,
2010):
1) Entail major resources commitments spread over long periods (around 5 years+)
2) Impact over longer time periods
3) Result in a distinguishable competitive advantage
4) Irreversible or difficult to reverse
5) Entails tradeoffs (e.g., if strategy A -> strategy B & C foregone…)
6) Made in the context of other strategic decisions (interdependencies)
7) Made at a higher level of the organization
Tactical marketing decisions: Short term (annual or quarterly) decisions to execute the strategic
directions within the firm. Filling in the marketing mix of the individual product or brand to realize the
company strategic goals (e.g. brand price level, advertising by brand, sales force allocation etc.). This
course will cover this as well
2
,Lecture 2 CSR (Guest Lecture) (i)
Shareholder capitalism: Legal foundation was established in the Dodge v. Ford company in 1919. Lost
some sparkle during the Great Depression but was reinforced by Milton Friedman in the 70’s. It has been
challenged (a.o. by the WEF) ever since
The Business Roundtable: An association of chief executive officers of America’s leading companies
working to promote a thriving U.S. economy and expanded opportunity for all Americans through sound
public policy. Previously, it thought the purpose of a company is solely to maximize shareholder return. It
now strives to go from a focus on shareholders to an inclusive approach to customers, employees,
suppliers, communities and shareholders. Many purpose-led multinationals focus on innovation and
creating value for multiple shareholders, but few go as far to quantify the extent they are willing to go
Shared Value strategy: Simultaneously create for the business and for society. It strives to meet societal
needs that expand opportunities for the business. It has a scalable societal impact because shared value is
self-sustaining
3
, CSV: Creating shared value. This is increasingly becoming a business imperative since big societal issues
are so complex that they require expertise and scalable business models of the private sector
Five key conditions for success in driving collective impact (Kramer & Pfitzer, 2016):
1) Common agenda
2) Shared measurement system
3) Mutually reinforcing activities
4) Constant communication
5) Dedicated backbone support
System leadership: Helping other in the coalition to understand how the health of the whole system
benefits each party
Three reasons why shared value is so difficult:
1) Legitimacy and importance of trust
2) Competitive free riders
3) Justification of investment
a. Expertise required in both societal and business issues
b. Long term commitment needed
c. Ring-fenced budgets required
Key elements of responsible leadership:
• Respect, honesty, responsibility, accountability, morality, trust, driven by ethical principles
• Compassion towards rest of society, social responsibility (triple P&L, CSV)
• Multi stakeholder approach
Definition of responsible leadership: Responsible leaders build and cultivate sustainable relationships
with stakeholders to achieve mutually shared objectives based upon a vision of business as a force of
good for the many. It implies responsibilities towards the various stakeholders
Lecture 3 CSR (ii)
How to get people to talk about your CSR:
• Events
• Inform the press
• Make it shareable
4
