Unit 5: Strategic Marketing Management
Unit code: Y/602/2065
QCF Level 7: BTEC Professional
Credit value: 10
Guided learning hours: 32
Unit aim
This unit provides the learner with the understanding and skills to support active engagement in the process of strategic marketing management.
Unit introduction
Marketing is at the core of the business. Outperforming the competition requires solid marketing knowledge and precise marketing decision making.
An organization’s positioning and the positioning of its products and services depends on the formulation and implementation of intelligent and well-informed strategic marketing plans.
All organizations operate in a dynamic marketplace. Competition, consumers, technology and market forces constantly redefine the way organizations operate.
Staying competitive means that organizations need to continuously adjust and adapt their customer approach to meet changing needs and expectations.
This is increasingly important with the globalization of markets and the rapid increase in competition from such as China, India, and Brazil.
In today’s markets, it is imperative that organizations focus on establishing, developing and adjusting their strategic marketing plans if they are to remain competitive.
Strategic marketing is a way of focusing an organization’s energies and resources on a course of action that can lead to increased sales and dominance of a targeted market.
A strategic marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements of marketing. It identifies an
Organization’s strategic marketing goals, and explains how they will be achieved, ideally within a designated timeframe.
Without a strategic marketing plan, organizations can waste resources, miss opportunities or, in a worst-case scenario, threaten their own survival.
Strategic marketing executives have up-to-date knowledge of competitive dynamics and know how to integrate marketing strategy into an overall business strategy.
Strategic marketing management provides a comprehensive examination of all the major components of marketing strategies and their integration into organizations. It is the basis for continued success in highly competitive markets.
Learning outcomes and assessment criteria
To pass this unit, the evidence that the learner presents for assessment needs to demonstrate that they can meet all the learning outcomes for the unit. The assessment criteria determine the standard required to achieve the unit.
| Learning outcomes | |
| 1. Understand the principles of strategic marketing management |
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| 2. Understand the tools used to develop a strategic marketing |
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| 3. Be able to use strategic marketing techniques |
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| 4. Be able to respond to changes in the marketing environment |
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Unit content
- Understand the principles of strategic marketing management
Role of strategic marketing: key definitions of strategic marketing from the Chartered Institute of Marketing and key authors (eg Hugh Davidson; Peter Doyle; Philip Kotler; Malcolm McDonald); role and importance of strategic marketing in an organisation; concepts; systematic approach; sequencing and scheduling of activities; integration of activities; resource requirements; time scaling; monitoring and control elements
Processes: strategic marketing planning processes (eg Peter Doyle, Malcolm McDonald) including strategic marketing analysis, marketing strategy objective setting, perceptual mapping, factor analysis, option evaluation, choice, formulation, implementation and control Links to corporate strategy: the nature of strategy and marketing links to corporate strategy, eg Michael Porter; links to mission statement, organisational structure, corporate responsibility, and ethics; dynamic strategy (Carpenter and Sanders); knowledge management systems
- Understand the tools used to develop a strategic marketing strategy
Models: organisation, industry and market environment situation analysis; Porter’s Five Forces model; structure, conduct and performance; SWOT (strengths, weaknesses, opportunities, threats) analysis, STEEPLE (social, technological, economic, environmental, political, legal, ethical) analysis, PEST (political, economic, social, technological) analysis, marketing audit; portfolio analysis techniques eg BCG matrix, Product Life Cycle model, Ansoff matrix
Links between strategic positioning and marketing tactics: strategic positioning, defining the future position, information collection, analysis, choice of strategy, implementation, monitoring; links to strategic plan eg internal growth, market penetration, market development, product development, marketing tactics; product tactics eg selection, range, quality, branding; price tactics e.g. skim pricing, penetration pricing, cost price, market price, price discrimination; promotion tactics eg customer loyalty schemes, product sampling, dealer loaders, extended credit, point of sale (POS) materials; place tactics eg distribution channels, transport management, stock and handling, run through times, terms of delivery.
Relationship marketing: direct response marketing strategies, eg offensive strategies, obtaining new customers, increasing customer purchase frequency; defensive strategies, increasing customer satisfaction and increasing switching costs; customer retention strategies, eg.
Product bundling, cross-selling, cross-promotions, loyalty programmes; customer satisfaction, customer lifecycle value; personalized marketing; Payne and Ballantyne’s six markets model (internal markets, supplier markets, recruitment markets, referral markets, influence markets, customer markets)
- Be able to use strategic marketing techniques.
Marketing techniques: setting marketing objectives and marketing strategy, targeting markets; segmenting markets, eg geographic, demographic, psychographic, behaviour; profiling markets, eg revenue potential, market share potential, profitability potential; positioning segmented markets, e.g. market leader or product line extension, mass marketing or targeted marketing, direct or indirect sales
Strategy options: Porter’s generic strategies (focus, cost leadership and differentiation); core competencies (G Johnson and K Scholes, G Hamel and C K Prahalad); competitive advantage (H Davidson, M Porter); investment opportunity evaluation (DF Abell and J S Hammond); General Electric model; Shell directional policy matrix; market leadership; market dominance strategies; market leader, market challenger, market follower, market nicher; innovation strategies; market pioneer; close followers, late followers; offensive, defensive and value-based marketing strategies
Strategic marketing objectives: marketing mix – 7 Ps (Product, Price, Place, Promotion, People, Process, Physical evidence); marketing activity strategies for product/service, pricing, distribution, promotion (advertising, sales promotion, personal selling, direct marketing, public relations), people (internal, intermediaries, customer service), processes and physical evidence, e-marketing strategy; customer relationship management; resource requirements (financial, people, marketing); integration of marketing activity strategies
- Be able to respond to changes in the marketing environment
Changes in the external environment: the shift from supply to demand environment; fashionation of markets; micro-markets; rising expectations; technological change; competition; globalization; the importance of customer service; commoditization
Strengths and weaknesses: focus of marketing objectives, links to corporate strategy, speed of new product developments, ability to customise, ability to handle information to gain competitive advantage; e-marketing position, core focus, target markets, nature and potential of key market segments, partnerships with customers and other stakeholders, organisational structure, innovation strategies, timescales, resource requirements, budgets, monitoring, review and control mechanisms
Strategic marketing responses: emerging themes, eg, the impact of globalization, the strength or weakness of competitors, the importance of environmental factors, changes in the political environment, the state of the economy, the exchange rate, health, and safety factor
Essential guidance for lecturers
Delivery
For learning outcome 1, it is possible that some learners will have had experience of developing aspects of marketing at an operational or strategic level in their organization. They need to be encouraged to share their experiences to provide a valuable source of discussion.
A useful starting point would be a lecturer‐led discussion on the role of strategic marking in organizations to draw out some of the processes involved in strategic marketing. A case study would help to connect and introduce learners to the links between strategic marketing and corporate strategy.
For learning outcome 2, lecturer input will be required on the tools used in strategic marketing planning.
Learners need to have a broad knowledge of the range of models that are available and make an assessment of the value of the in strategic marketing planning. Lecturers can draw on the experiences of using these as a basis for discussion.
Case studies will be a valuable way of providing examples of models being used in practice. Current examples of relationship marketing from the internet could be utilized, and with lecturer input, this could be developed further to incorporate the links between strategic positioning and marketing tactics.
For learning outcome 3, lecturer’s input will be required to introduce learners to the range of strategic marketing techniques.
It is important that examples are used to show how marketing theory and models are applied. Lecturers can use examples such as the General Electric model and the Shell directional policy matrix to bring the theory ‘to life.’
Learners will need to apply the principles of strategic marketing and use strategic marketing techniques in a selected market. It is therefore important that the theory and models are delivered in a way that links them with current practice.
For learning outcome 4, after lecturer input and discussion on changes in the external environment, one way of delivering this outcome is to provide learners with an example of a strategic marketing strategy.
This would lend itself to group work where learners are asked to report back on how they think current changes in the external environment would impact on
The marketing strategy. This could be developed further with the groups proposing strategic marketing responses to the key emerging themes.
Outline the learning plan.
The outline learning plan has been included in this unit as guidance and can be used with the Suggested Assignment.
The outline learning plan demonstrates one way in planning the delivery and assessment of this unit.
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Topic and suggested assignments/activities and/assessment |
| Introduction to unit and programme of assignments |
| Role of strategic marketing – lecturer input, definitions, case study, discussions |
| Strategic marketing processes – lecturer input, group discussions |
| Strategic marketing and links to corporate strategy – lecturer input with examples |
| Strategic marketing models – lecturer input, lecturer-led discussions |
| Strategic positioning and marketing tactics – lecturer input, case studies, lecturer-led discussion |
| Relationship marketing – lecturer input with examples |
| Topic: Developing and Managing a Strategic Marketing Plan |
| Marketing techniques for growth – case studies and discussion |
| Use of marketing strategy options in a given market–lecturer examples and discussion |
| Strategic marketing objectives – lecturer-led discussion with examples |
| Changes in the external environment – topical discussion, newspaper articles, web-based articles |
| Strengths and weaknesses of a marketing strategy – things to consider, lecturer input and discussion |
| Emerging themes – lecturer input with examples and discussion |
| Topic: Applying Strategic Marketing Management Techniques to a Market
Situation |
|
Review of unit and programme of assignments |
Assessment Guidelines
Unit 5: Strategic Marketing Management
LO1: Understand the principles of strategic marketing management
: Discuss the role of strategic marketing in an organization
- Explain the differences between strategic Marketing and using established models and definitions.
- Discuss the importance of strategic marketing for an organization.
: Explain the process involved in strategic marketing
- Explain the process involved in strategic marketing (situational analysis, marketing objective, strategy formulation (STP), designing marketing mix 7Ps, developing marketing programme, implementation & controlling).
: Evaluate the link between strategic marketing and corporate strategy
- Present vision, mission, objective & value of your organization.
- Evaluate how your strategic marketing plan can support the corporate strategy of your organization.
LO-2.Understand the tools used to develop a strategic marketing strategy
: Assess the value of models used in strategic marketing planning
- Research and discuss at least 3 models that can be used in strategic marketing such as SWOT, STEEEPL, BCG, Ansoff, and PLC.
- Make judgment and assess the value of those models in strategic marketing.
: Discuss the links between strategic positioning and marketing tactics
- Discuss the concept of strategic positioning (STP) and marketing tactics (7P’s)?
- Discuss how marketing tactics are related to strategic positioning decisions by presenting the strategic positioning (STP) of their organization as well as the marketing tactics (7P’s) that can be used to be aligned with the strategic positioning decisions.
: Analyze the merits of relationship marketing in a given strategic marketing strategy
- Present the importance of relationship marketing in the 21st century.
- Indicate the involvement of relationship marketing in the strategic marketing plan of your selected organization.
- Discuss the benefits of relationship marketing to your selected organization.
LO-3.Be Able to Use Strategic Marketing Techniques.
: Use appropriate marketing techniques to ascertain growth opportunities in a market
- Research internal organization data, current economy data, and data on the market (by using appropriate marketing technique) for your organization to ascertain growth opportunities in a specific market. (Ansoff’s matrix is suggested to use, Porter’s generic strategies, focus, cost leadership and differentiation, GE model, etc.)
: Plan how to use marketing strategy options in a market
- Present the understanding the importance of marketing strategic options.
- Identify the appropriate options and apply them to your organization.
: Create appropriate strategic marketing objectives for a market
- Set appropriate marketing objectives for your selected organization.
LO-4.Be able to respond to changes in the marketing environment.
: Report on the impact of changes in the external environment on a marketing strategy
- Assess changes in the environment that impact on the marketing strategy of your organization.
: Conduct an internal analysis to identify current strengths and weaknesses in a marketing strategy
- Research and conduct an internal analysis to identify current strength and weakness in their marketing strategy of your selected organization.
: Propose strategic marketing responses to key emerging themes in a marketing strategy
- Identify the key emerging themes in the environment affecting your organization. (Globalization, IT, Diversity, Green and Ethical issues)
- Proposed appropriate strategic marketing responses to these emerging themes used in your organization.
Suggested Assignment
The table below shows a Suggested Assignment that covers the criteria in the assessment grid. This is for guidance only, and it is recommended that centres either write their own assignments or adapt Edexcel assignments to meet local needs and resources.
|
Assignment Title |
Assessment
Method |
Assessment
Criteria Covered |
Scenario |
| Importance of Marketing | Written report
(Group) |
AC 1.1, 1.2 |
The learner works as a marketing manager and needs to prepare a report on the strategic marketing process, importance of strategic marketing & evaluation on how strategic marketing can support the corporate strategy of your organization. |
|
Strategic Marketing Plan |
Written + Presentation (Group) |
AC 1.3, 2.1, 2.2, 2.3, 3.1, 3.2, 3.3 |
The learner needs to prepare a strategic marketing plan (for a year is recommended) for a chosen organization |
|
Strategic Marketing Plan Analysis Report |
Presentation (Group) |
AC 4.1, 4.2, 4.3 |
Learner needs to review the strategic marketing plan and prepare a report on their analysis on the plan. |
Essential Resources
There are no essential resources required for this unit.
Indicative resource materials Textbooks
Best R J – Market-based Management: Strategies for Growing Customer Value and Profitability, 5th Edition (Prentice Hall, 2009) ISBN 0132336537
Chernev A – Strategic Marketing Management, 5th Edition (Brightstar Media, 2009) ISBN0982512635
Hastings H and Saperstein J – Improve Your Marketing to Grow Your Business (Wharton School Publishing, 2007) ISBN 0132331594
Hooley G, Saunders J, Piercy N F and Nicoulaud B – Marketing Strategy and Competitive Positioning, 4th Edition (Financial Times/Prentice Hall, 2007) ISBN 0273706977
Kotler P and Armstrong G – Principles of Marketing, 13th Edition (Prentice Hall, 2008) ISBN0136079415
Kotler P and Keller K L – A Framework for Marketing Management (Pearson Education, 2008)ISBN 0137131844
Lambin J J – Market-Driven Management: Strategic and Operational Marketing, 2nd Edition
(Palgrave Macmillan, 2007) ISBN 1403998523
McDonald M – Malcolm McDonald on Marketing Planning: Understanding Marketing Plans and Strategy (Kogan-Page, 2007) ISBN 0749451491
Mukerjee K – Customer Relationship Management: A Strategic Approach to Marketing
(Prentice Hall of India, 2007) ISBN 8120332857
Mullins J, Walker O C, and Boyd H W – Marketing Management: A Strategic Decision-Making Approach, 7th Edition (McGraw-Hill Higher Education, 2009) ISBN 007126776X
Palmer R, Cockton J, and Cooper G – Managing Marketing: Marketing Success Through Good Management Practice (Butterworth-Heinemann, 2007) ISBN 0750668989
Tollin K and Carù A (Eds) – Strategic Market Creation: A New Perspective on Marketing and Innovation Management (John Wiley and Sons, 2008) ISBN 0470694270
Winer R and Dhar R – Marketing Management, 4th Edition (Pearson Education, 2010) ISBN 0130387924
Journals
European Journal of Marketing (Emerald)
International Journal of Research in Marketing (Elsevier)
The Journal of Customer Behaviour (Westburn Publishers Ltd)
Journal of Interactive Marketing (Elsevier)
Journal of Marketing Communications (Routledge)
Journal of Strategic Marketing (Routledge)
The Marketing Review (Westburn Publishers Ltd)
Websites
en.wikipedia.org Articles on strategic marketing and further links www.businessballs.com Management learning resources and articles and links
on strategic marketing management
www.idea.gov.uk Local Government Improvement and Development– developing a strategic communication strategy in the public sector which applies equally to the private sector
www.managementhelp.com Articles on strategic marketing planning and further
links
www.marketingpower.com American Marketing Association – marketing articles