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Strategic Marketing
Omar Merlo
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Copyright © 2020 by Omar Merlo All rights reserved. This book or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the author.
Published by Amazon (London, United Kingdom)
ISBN: 9798625632492
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TABLE OF CONTENTS
Introduction
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1 Overview
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Part I: Foundations of Strategic Marketing
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2 Introduction to Marketing Theory
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2.1 What is marketing
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2.2 The “Evolution” Of Marketing
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2.3 Market Orientation
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2.4 The Role of Marketing within the Firm, and the Importance of Internal Marketing
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2.5 Market Orientation and Marketing Departments
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2.6 Marketing and Entrepreneurial Orientation
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2.7 Market Orientation: Market-Driven or Market-Driving? 27
2.8 Uncovering Customer Needs through Market Research 33
2.9 Value Based Marketing
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2.9.1. Marketing and shareholder value
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2.9.2. Marketing and customer value
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2.9.3. The myth of excellence
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Part I: Sources, References and Further Readings
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Part II: Implementing the Marketing Strategy
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3 The Marketing Planning Process
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3.1 Strategic Analysis
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3.1.1. Customer analysis
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3.1.2. Competitor analysis
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3.1.3. Market analysis
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3.1.4. Environmental analysis
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3.1.5. Internal analysis
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3.1.6. SWOT analysis
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3.2 Strategic Objectives
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3.3 Strategic Focus
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3.3.1. Increasing sales volume
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3.3.2. Improving sales productivity
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3.4 Market Segmentation and Positioning
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3.4.1. Market segmentation
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3.4.2. Product positioning
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Part II: Sources, References and Further Readings
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Part III: Executing the Strategy Through Marketing Tactics 96
4 The Marketing Mix
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4.1 Product
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4.1.1. The hierarchy of product attributes
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4.1.2. Product classification
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4.1.3. Services as products
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4.1.4. Management of product life cycles
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4.1.5. Factors affecting product diffusion
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4.1.6. The adoption process
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4.2 Marketing Communications
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4.2.1. Steps in developing marketing communications
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4.2.2. Promotional methods, objectives and the adoption process ... 118
4.2.3. Advertising
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4.2.4. The impact of media convergence on advertising
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4.2.5. Defeating customer apathy
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4.3 Pricing
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4.3.1. Pricing Objectives
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4.3.2. Pricing tactics
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4.4. Distribution
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4.4.1. Factors to consider in channel design
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4.4.2. Choices with indirect channels
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5 Branding
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5.1 Why do Brands Matter
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5.2 Brand Equity
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5.2.1. Branding and storytelling
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5.3 The Brand Management Process
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5.3.1. Establish brand positioning and values
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5.3.2. Design the brand marketing programme
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5.3.3. Measure and interpret brand performance
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5.3.4. Grow and sustain brand equity
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6 Strategic Customer Relationship Management
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6.1 The Business Case for Loyalty
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6.2 How to Build Loyalty
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6.2.1. Customer delight as a key driver of loyalty
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6.2.2. Customer engagement
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6.2.3. The Problem with CRM
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6.2.4. Brand transparency
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Part III: Sources, References and Further Readings
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Introduction
1 OVERVIEW
Strategy and marketing go hand in hand. Strategy refers to the overriding direction that determines the planning path for an organisation, given its assets and capabilities, its values, and the external business environment (i.e., its market, competition, customers, etc.). The strategy determines the firm’s objectives, plans and tactics.
In the past, marketing was largely relegated to a tactical role, which means that it was mainly seen as a demand-stimulating support function concerned with the day-to-day management of the market (e.g., advertising, sales promotion, channel management). While some people still see it that way, nowadays the most forward-thinking organisations have realised that the role of marketing should be elevated to a strategic level.
Today’s fast-changing environment increasingly emphasises the corporate need for market responsiveness, customer focus, service orientation, and the like. These are all core marketing activities. Thus, marketing should have significant input into higher-level strategy to read and shape market dynamics. Strategy development needs to happen at the business unit level and be driven by the market and the external environment, rather than merely by internal considerations. Market management needs to be proactive and future-oriented in order to capitalise on opportunities and to deal with the rapid rate of change in the external environment. As the key boundary-spanning function of an organisation, marketing can be critical to strategy development and execution.
In this book, we are going to adopt a strategic approach to marketing. The underlying process is detailed in Figure 1, which constitutes the basic structure of the book. This book aims to summarise fundamental concepts in strategic marketing in a concise way, by drawing on important research (both well-established work and the latest research in the field), and leading sources (references and extra readings are provided at the end of each section).
The book begins with Part 1. Before an organisation can implement a marketing strategy, people within it must have a clear understanding of the role that marketing should play within the firm, how it should be
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people within it must have a clear understanding of the role that marketing should play within the firm organised, the kind of culture necessary to achieve a competitive advantage, and how financial value is generated through marketing activities. These topics are the subject of Part 1.
Figure 1: Overview of the strategic marketing process
Part 2 focuses on how a marketing strategy can be designed. It is essential to have a planning process that is systematic and ongoing. Everything starts with strategic analysis, where managers carefully assess key external and internal factors, focusing primarily on the customers, the competitors, the market and the environment in which the firm competes. Once that is done, the firm is able to determine its strategic objective and focus; these are essentially the means through which the organisation aims to achieve its goals. Next, the business needs to be clear about its target market and the positioning of its products and services within that market.
Finally, management needs to ensure that the strategy is properly executed and supported by marketing tactics, which are the subject of Part 3. This requires the management of the marketing mix, often referred to as the 4 Ps of marketing (product, promotion, price and place). Companies are also realising that one of their most crucial assets is their brand. The brand can go above and beyond the product or service itself in differentiating the company’s offerings in the mind of its customers and can