Table Of Content

Advanced Diploma in Business Administration Study Manual STRATEGIC MARKETING The Association of Business Executives William House • 14 Worple Road • Wimbledon • London • SW19 4DD • United Kingdom Tel: + 44(0)20 8879 1973 • Fax: + 44(0)20 8946 7153 E-mail: [email protected] • www.abeuk.com © Copyright assigned to ABE All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form, or by any means, electronic, electrostatic, mechanical, photocopied or otherwise, without the express permission in writing from The Association of Business Executives. ABE Advanced Diploma in Business Administration Study Manual STRATEGIC MARKETING Contents Study Title Page Unit Syllabus i 1 Planning and Strategy 1 The Planning Process 2 Developing Plans 6 Strategic Planning 18 2 The Marketing Function, Objectives and Strategy 27 Marketing and Markets 28 Basic Concepts of Marketing 32 Marketing Objectives 36 Marketing Strategy 43 3 Marketing and Strategic Choice 49 Organisational Stance and Positioning 51 Ansoff’s Four Strategic Options 55 Porter’s Generic Strategy Model 58 Profit Impact on Market Strategy (PIMS) 60 Boston Consultancy Group Matrix (BCG) 61 General Electric Business Screen (GE) 67 Other Portfolio Models 70 The Role of Marketing Models 72 Strategic Choice 72 Implementation of Strategies 80 4 Analysing the Marketing Environment 85 Situational Analysis 86 SWOT Profile 92 The Internal Environment 94 The External Environment 100 5 Marketing Information 113 Managing The Information Flow 114 Marketing Research 120 6 Auditing the Marketing Mix 127 Approaching a Marketing Audit 128 Auditing the Product Portfolio 129 The Strategic Role of Price 137 Auditing Promotional Activity 139 Evaluating the Distribution Process 145 Marketing Strategy Revisited 147 7 Consumer Markets and Consumer Behaviour 151 Market Segmentation 153 Segmentation of Consumer Markets 160 Targeting 163 Positioning 164 The Buying Process 169 Understanding Buying Behaviour 174 8 Marketing Planning 185 The Marketing Plan 186 Promotional Plans 191 Product Planning 199 Pricing Plans 201 Distribution Planning 204 9 Marketing Implementation and Control 207 Strategic Orientation of Business 209 Organisation for Marketing 213 Coordination of Marketing with other Management Functions 221 Elements of an Effective Marketing Organisation 227 Control 235 10 Product Management and Development 245 The Concept of the Product 246 The Concept of the Product Offer 251 Product Management 253 The Product Life Cycle 258 New Product Development (NPD) 269 11 Branding and Brand Management 281 Why Brand Products? 282 Building Brands 286 Own Product and Own Brands 289 12 The Promotional Mix 293 Communications and the Organisation 295 Methods of Promotion 299 Communicating with the Market 312 Promotional Campaigns 317 13 Direct Marketing 335 The Basic Principles of Direct Marketing 337 The Growth of Direct Marketing 340 Direct Marketing Strategies 342 Major Market Sectors 350 Direct Marketing Data 358 The Media of Direct Marketing 362 Fulfilment and Customer Care 371 14 Distribution Channel Management 377 The Chain of Distribution 378 Characteristics of Different Channels 380 Distribution Management 389 Dealing with Intermediaries 395 Physical Distribution Management (PDM) 401 15 Pricing Policies and Price Setting 407 What does a Price Represent? 408 The Pricing Decision 410 Price and Costs 421 Price and Demand 426 Price and Value for Money 429 i Advanced Diploma in Business Administration Strategic Marketing Syllabus Aims 1. Examine the broad concepts of marketing strategy and planning. 2. Develop a deeper understanding of the processes of strategy development and marketing planning. 3. Understand the process of strategy development. 4. Examine and apply the core concepts and techniques for operationalising marketing strategy, particularly the elements of the marketing mix. 5. Develop a deeper understanding of the integration and application of the marketing mix variables and their impact on other functions within an enterprise. 6. Apply and implement strategic marketing plans. Programme Content and Learning Objectives After completing the programme, the student should be able to: 1. Identify society and customer values – describe the meaning of marketing in society and for an organisation. Understand the implications of the marketing concept. Identify and describe marketing activities. Recognise marketing’s social responsibility. 2. Understand the scope of strategic marketing – determine the marketing orientation of companies and specify the relevant scope of marketing management. State the function of mission statements, goals and objectives. Outline how companies identify and implement the marketing mix of an applied strategic plan. 3. Understand the marketing environment – apply portfolio models to the analysis of markets and competitors. Understand the importance of monitoring the marketing environment. Determine the value of market segmentation for different circumstances. Understand the importance of the product life cycle and its implications for managing the marketing mix elements. 4. Understand consumer markets – identify the general influences on demand for a good or service. Describe the nature and structure of competition in markets, distinguishing among undifferentiated, differentiated and monopoly markets. Determine the impact of market structure on marketing management. Evaluate the myriad social, personal and marketing influences in consumer markets. Specify the company’s marketing response to the consumer buying process. 5. Distinguish between strategic and tactical planning. Understand what planning is and its importance to the company. Understand the importance of flexibility in determining marketing objectives and how these will change within a marketing plan. 6. Understand strategic marketing issues of implementation, performance and control. Make decisions on how companies develop an organisational commitment to marketing. Determine © Copyright ABE ii the importance of human resources in the implementation of marketing strategy. Understand the challenges of implementing and controlling marketing strategy. 7. Understand marketing decision making with respect to developing new goods and services. Describe and classify products in a managerially useful way. Examine the role of packaging and design as a marketing tool. Examine strategies arising from knowledge of the product life cycle. Recognise the importance of innovation to strategic marketing. 8. Understand branding and its purpose. Evaluate the benefits of branding to the manufacturer and consumer. Evaluate the advantages and disadvantages of manufacturer brands versus private brands. Understand brand life cycles, extension and positioning. 9. Understand strategic marketing communications – determine the key factors in deciding the promotions mix. Recognise the value of public relations. Identify the key elements in forming an advertising strategy. Evaluate the purpose of sales promotion and outline its appropriate use. 10. Understand strategic marketing communications – understand direct marketing in operational terms as part of an interactive marketing system. Show how marketing can be used to build personal relationships. Understand the role of personal selling. 11. Understand the nature of channel decisions in strategy. Understand the importance and elements of, and tasks involved in, managing a market logistics system. 12. Understand the role of price in marketing management. Examine the various approaches to setting price. Examine the appropriateness of various strategies for pricing. Method of Assessment By written examination. The pass mark is 40%. Time allowed 3 hours. The question paper will contain: Eight questions of which four must be answered. All questions carry 25 marks. Further Reading The ABE is keen to encourage students to read around their subjects although your study manual provides complete coverage of the syllabus for the examination. If you have time available once you have worked through the manual, you may wish to consult one or more relevant books from the ABE's suggested reading list which can be found in each subject syllabus. Advanced Diploma students especially should supplement their study of the manual with wide reading of relevant journals, quality newspapers and contemporary media sources. Essential Reading (cid:1) P Kotler, Marketing Management: The Millennium Edition, 2000 (Prentice-Hall International) Additional Reading (cid:1) J A Murray, & A O'Driscoll, Strategy and Process in Marketing; 1997 (Prentice-Hall International) (cid:1) F Bradley, Marketing Management: Providing, Communicating and Delivering Value; 1995 (Prentice-Hall International) © Copyright ABE iii (cid:1) R M S Wilson & C Gilligan, Strategic Marketing Management: Planning, Implementation and Control; 2nd edition, 1997 (Butterworth-Heinemann) (cid:1) B Ennis, K Cox, & M P Mokwa, Marketing Classics: A Selection of Influential Articles; 8th edition, 1995 (Prentice-Hall) (cid:1) P Doyle, Marketing Management and Strategy; 3rd Edition, 2002 (Prentice-Hall) Supplementary Journals (cid:1) European Journal of Marketing (cid:1) Journal of Marketing (cid:1) Journal of the Academy of Marketing Science (cid:1) Journal of Strategic Change (cid:1) Long Range Planning (cid:1) Journal of Marketing Management (cid:1) Journal of Marketing Theory and Practice © Copyright ABE iv © Copyright ABE