SMM 2

• Marketing is the set of processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society.
• Marketing strategy refers to an organization or person’s plan of action created to sell or advertise a product or service.
• Levels of Marketing (strategy): Corporate level, Business level (SBU), Functional level
• External audit – a detailed examination of the markets, competition, business and economic environment in which the organisation operates
• Rivalry Determinants: Industry growth; Fixed costs/value added; Product differences; Brand image; Switching costs; International complexity; Diversity of competitors; Exit barriers
• Market leader: the firm with the largest market share and, by virtue of its pricing, advertising intensity, distribution coverage, technological advance, and rate of new product introduction, it determines the nature, pace, and bases of competition.
• Market challenger: a runner-up firm that is fighting hard to increase its market share. It may choose to adopt an aggressive position and attack other firms, including the market leader.
• Frontal attack: the challenger opposes the competitor directly using its own weapons, and trying not to expose its weak points.
• Flanking attack: the challenger can focus its strength against the competitors weaker flanks or on gaps in the competitor's market coverage.
• Encirclement attack: involves attacking from the front and the flanks. It attacks its rivals in as many ways as possible by extensive stretching of its product lines
• Bypass attack: changing the rules of the game by diversifying into unrelated products, moving into new geographic markets, or using new technologies
• Guerrilla attack: it is best suited to smaller companies with a relatively limited resource base
• Market follower: a firm that wants to hold its share without 'rocking the boat'. It may adopt a less aggressive stance and a defensive tactic in order to maintain the status quo.
• Following closely - with a similar marketing mix and marketing segmentation.
• Following at a distance - the follower can flag up some areas of differentiation, and diminish the obvious similarities with the leader.
• Following selectively - both in product and market terms, so that the likelihood of direct competition is minimized.
• A nicher is interested in a few niches, not in the whole market. The goal is to be a large fish in a small pond.  A market nicher can specialize in serving one type of end-user, or in serving a given customer-size group, or focus on one or a few specific customers.  There is a strong argument for multiple rather than single-sector niching because these tactics are risky.
• Strategy concept and definition: The overall plan for deploying an organization’s resources to establish a favourable position in the market.
• Corporate level: Marketing as a culture (way of doing business)
• Business level (SBU): Marketing as a strategy (STP-approach)
• Functional level: Marketing as tactics (4Ps model)
• Corporate level strategy development: The company's core strategy is selected; Marketing objectives are identified;
• Business level (SBU) strategy development: Market segments and targets are chosen; The company's differential advantage in serving the target markets better than the competition is identified;
• Functional level strategy development: Designing the marketing mix programs that can convey the positioning and the products/services to the target market.
• Key conditions for marketing strategy success: It is directed towards unambiguous long-term goals; It is based on insightful understanding of the external environment; It is based on intimate self-knowledge by the organization or by individuals of internal capabilities; It is implemented with coordination and effective harnessing of the capabilities to achieve the targeted competitive position.