INTRODUCTION TO STRATEGIC MARKETING IN PRACTICE part1

Marketing drives the business agenda

Marketing is a set of activities concerned with creating value for shareholders and other stakeholders by
creating and capturing exceptional value for customers. Organizations expect professional marketers to
develop an increasing sense of ownership for the whole customer experience; this requires them to be
more aware of the operational business agenda.
Professional marketers in publicly quoted or limited companies have to:
 * Focus on the long term – While other business functions can maximize economic profit through
    efficiency, marketing is the only way to create value. Marketing typically creates three times more
    value than other functions.
 * Create and Capture value for customers – Marketers create value by increasing the value perceived by
    customers in an organization’s products and services. By increasing perceived value, marketers create the
    opportunity for premium pricing through which economic profit is increased.
 * Take charge of the business agenda – Marketing uses its activities and assets to create customer
    value. Shareholders measure the value that the business has created for them as the sum of dividends
    paid and increase in share price. Marketing has to take charge of investment in marketing assets and
    the activities that create value.

 Marketing activities in organizations can be grouped broadly into four models:

Sales Support
Common in SME’s and some B2B contexts, the
emphasis is essentially reactive with marketing
supporting a direct sales force and including
activities such as tele-marketing and responding
to inquiries.

Operational Marketing

Marketing supports the organization with a
co-ordinated range of activities. Planning is at the
operational and functional level. Typically used in
FMCG, B2C and B2B.

Marketing Communications

Marketing promotes through push and pull
communications promoting the organization.
More proactive approach uses communication
methods to raise awareness, generate leads
and take orders.

Strategic Marketing
Emphasis on creating value and developing a
competitive strategy. Practiced in larger and
customer-focused organizations, with strategic
marketing decisions being made by professional
marketers or business leaders.