|1. Understand the principles of strategic marketing management|
|1.1 discuss the role of strategic marketing in an organisation|
|1.2 explain the processes involved in strategic marketing|
|1.3 evaluate the links between strategic marketing and corporate strategy|
|2. Understand the tools used to develop a strategic marketing strategy|
|2.1 assess the value of models used in strategic marketing planning|
|2.2 discuss the links between strategic positioning and marketing tactics|
|2.3 analyse the merits of relationship marketing in a given strategic marketing strategy|
|3. Be able to use strategic marketing techniques|
|3.1 use appropriate marketing techniques to ascertain growth opportunities in a market|
|3.2 plan how to use marketing strategy options in a market|
|3.3 create appropriate strategic marketing objectives for a market|
|4. Be able to respond to changes in the marketing environment|
|4.1 report on the impact of changes in the external environment on a marketing strategy|
|4.2 conduct an internal analysis to identify current strengths and weaknesses in a marketing strategy|
|4.3 propose strategic marketing responses to key emerging themes in a marketing strategy|
|Notes on exactly what must be done to succeed in the assessment are written below, then followed by a reminder of the content of the module, organised according to the assessment criteria above.
Assessment Criteria Notes
For assessment of this unit, learners will need to apply knowledge and understanding of strategic marketing management and research information and apply their knowledge to their selected organisation.
For 1.1, learners need to show that they understand the difference between strategic and tactical marketing. They need to use established models and definitions to develop their discussion.
For 1.2, learners will be expected to understand and explain the processes involved in strategic marketing. This will involve looking at a range of processes and learners may wish to draw on their own experiences in the workplace to amplify their points.
For 1.3, learners are expected to understand that the process of strategic marketing does not take place in a vacuum. They will need to show that they can evaluate the links between strategic marketing and corporate strategy and provide examples of those links.
For 2.1, learners need to research the models used in strategic planning. They will need to make judgments and assess the value of the models for strategic marketing planning.
For 2.2, learners need to understand that when strategic plans are put into operation, day-to-day tactical decisions have to be made. In their discussion, they need to provide examples of how tactics are related to strategic positioning decisions.
For 2.3, learners need to show that they understand the nature of relationship marketing. They need to discuss the place of relationship marketing in a strategic marketing plan and then analyse the merits of using this marketing technique.
For 3.1, learners need to use a selected organisation to research and ascertain growth opportunities in a specific market. Evidence needs to be more than anecdotal and include real-time data to support the research, for example statistical data, current economic data, data from the organisation and data on markets.
For 3.2, learners need to show that they understand the importance of marketing strategy options. They need to plan appropriate options and apply them to the organisational context they are using.
For 3.3, learners need to pull all the strands of their learning together successfully to create appropriate strategic marketing objectives for their selected market. The objectives should follow logically from the research undertaken on the organisation and the selected market.
For 4.1, learners need to research the current external environment. They need to report on the extent to which identified changes will impact on the marketing strategy for their selected organisation.
For 4.2, learners need to look closely at their selected organisation. They need to conduct an internal analysis to identify current strengths and weaknesses in their marketing strategy as applied to their selected organisation.
For 4.3, learners need to identify key emerging themes affecting their selected organisation. These could be local, national or global. They will need to apply their understanding and propose strategic marketing responses to these emerging themes.
Unit Content – linked to Assessment Criteria
1. 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; timescaling; 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
2. 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, economical, 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 eg 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 life cycle value; personalised marketing; Payne and Ballantyne’s six markets model (internal markets, supplier markets, recruitment markets, referral markets, influence markets, customer markets)
3. 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 eg 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 competences (G Johnson and K Scholes, G Hamel and C K Prahalad); competitive advantage (H Davidson, M Porter); investment opportunity evaluation (D F 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
4. Be able to respond to changes in the marketing environment
Changes in the external environment: shift from supply to demand environment; fashionisation of markets; micro-markets; rising expectations; technological change; competition; globalisation; importance of customer service; commoditisation; erosion of brands; new constraints
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 impact of globalisation, the strength or weakness of competitors, importance of environmental factors, changes in the political environment, the state of the economy, the exchange rate, health and safety factors
This Assignment is based upon the Pearson Edexcel Strategic Management and Leadership from August 2010 Programme Specification found at http://www.lcbuk.org/pdf/Edexcel_level7_SML.pdf