Summary STRATEGIC MARKETING MNM3709

MNM 3709

Study Unit 1
Nature of strategic marketing

1.1 STRATEGY LEVELS
 Corporate strategy
- May be described as an organisation's sense of purpose.
- It involves mapping out future opportunities and threats that match the organisation's resources.
- Formulates the scope of the business, how resources should be used and applied and what competitive
advantage the organisation has and the effective coordination of the functional areas
 Business strategy
- Has to do with managing a specific division or business unit
- It must contribute to achieving corporate objectives.
- Concerned with how the organistion will compete in each product market or industry the organisation
choses to compete it
 Market strategy
- Refers to the marketing management's contribution to formulating the business strategy
- It primarily entails inputs (at top management level) about the internal and external marketing
environments, and joint decision making in the form of competitive and investment decisions
- The market strategy is a component of the business strategy and represents the SBU's ``total onslaught''
on the market; it is therefore market oriented.
 Functional strategy
As used in our field of study, is equivalent to the marketing strategy.


1.2 THE FUNCTIONING OF STRATEGIC BUSINESS UNITS(SBUs)
- When a division in a large organisation is concerned with one or more products with a common market
base
- Management of the division take full responsibility for the formulation and implementation of the division's
strategy, the division may be called an SBU.
- Units can be divided into divisions, product clusters, brands or geographic units
- SBU usually consists of a single product line of related products marketed to define market segments

1.3 STRATEGIC MARKETING MANAGEMENTAND MARKETING MANAGEMENT
- Strategic marketing, for example, requires managers to favour long-term results and therefore decisions
have long-term implications

Differences Strategic marketing Marketing management
Mission Deals with action of the SBU Deals with marketing activities
of specific SBU
Nature of the job Necessities a high degree of Necessitates maturity,
originality and innovation familiarity and control
Leadership style Requires a practical viewpoint Requires a spontaneous
viewpoint
Orientation Inductive and instinctive Deductive and logical
Time frame Long-term Day-to-day
Decision process Mainly bottom line Mainly top-down
Organisational behaviour Attains synergy between Pursues interest of the
various components of the decentralised unit
organisation
Opportunity sensitivity Ongoing Ad hoc
Relationship with finance Close relationship is sustained Relationship is less clear
Relationship with environment Environment considered ever Environment considered stable
changing and active with frequent instability

- Differences between strategic marketing and marketing management include differences like orientation,
the decision process, the relationship with the environment, opportunity sensitivity, organisational behaviour,
the nature of the job, the leadership style and the mission.




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, - Additional differences may include to the following:
- Importance
- Strategies
- Level of execution
- Regularity
- Nature of problem
- Information required
- Details
- Ease of evaluation
- Varying role for different products and markets
- Relationship with finance




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