Chapter 5: Marketing Strategy: Baines, Fill, & Page: Essentials of Marketing

Chapter 5: Marketing Strategy
Baines, Fill, & Page: Essentials of Marketing

Learning Outcomes
• Describe the strategic planning process.
• Explain the key influences that impact on and shape marketing
strategy.
• Develop a SWOT analysis and set out how it can help
strategic marketing decision making.
• Explain how understanding competitors can assist when
developing a marketing strategy.
• Identify the characteristics of strategic marketing goals and
explain the nature of the associated growth strategies.
• Understand the principles of marketing metrics, and how
these can contribute to the implementation and control of
the marketing planning process; and
• Outline the key elements within a marketing plan.

Case Insight – Innocent Drinks
• Innocent make smoothies, a drink made

from pure whole crushed fruit, with no
sugar, preservatives, colouring or nasty
additives. Innocent is now a £100 million
business.
• The strong ethical and health credentials

associated with the Innocent brand provide
opportunities for development.
• What challenges might Innocent branded
water/fruit juice face in order to be
successful and what impact would such a
product have on the Innocent brand?

The Strategic Context

The Strategic Context Framework
The Vision - a statement about what an organization wants to
become. It should give shape and direction to an organization’s future.
The Mission - a broad statement of intention, which sets out an
organization’s purpose and direction, what it wishes to achieve in the
long term.
Organizational Values - define the acceptable interpersonal and
operating standards of behaviour. They govern and guide the behaviour
of individuals within the organization.
Organizational Goals - the desired outcomes of the
organization’s various activities. These may be articulated in terms of
profit, market share, share value, return on investment or numbers of
customers served.
Corporate Strategy - the means by which the resources of the
organization are matched with the needs of the environment in which the
organization decides
Baines, Fill, & Page: toMarketing
Essentials of operate.
Three Key Activities of Marketing Strategy
Development

Strategic Market Analysis
• External Environment - PESTLE, Environmental
Scanning
• Performance Environment - 5 Forces, Competitor
and Supplier Analysis
• Internal Environment - resource analysis
The task is to assimilate the information derived
from the analysis of the environment, and to bring it
together in a form that can be easily understood. To
do this we can use:
SWOT analysis
Strategic Market Analysis
Pestle – An appraisal of the Political, Economic, Social,

Technological, Legal and Environment Forces acting on the
organization’s business and marketing activities
Competitor Analysis – An evaluation of the impact that

different forces have on a market and the way companies
compete.
SWOT – A series of checklists derived from the marketing audit and the
PESTLE analysis, presented as the internal strengths and weaknesses,
and the external opportunities or threats.

Strategic Marketing Goals

Strategic Marketing Growth Goals
• Intensive growth - refers to concentrating activities on markets
and/or products that are familiar. By increasing market share or by
introducing new products to an established market growth, growth is
achieved by intensifying activities.
• Integrative growth - occurs where an organization continues to

work with the same products and same markets but starts to perform
some of the activities in the value chain that were previously undertaken
by others.
• Diversification - refers to developments outside the current

chain of value adding activities. This type of growth brings new value
chain a activities because the firm is operating with new products and in
new markets.
Strategic Market Action

Five Areas of Strategic Market Action
Competitive - is achieved when an organization has an edge over

advantage its competitors when attracting buyers. It has a
superior value proposition.
Generic - there are three generic strategies; overall cost

strategies leadership, differentiation and focus strategies,
used in order to develop an advantage.
Competitive - Four main positions can be identified; market leader,

positioning challenger, follower and nicher
Marketing – organizing and implementing the strategic action.

planning
Marketing Planning
Marketing planning is a
sequential process involving a
series of activities leading to
the setting of marketing
objectives and the formulation
of plans for achieving them.
(McDonald, 2002 : 27).

Marketing
Planning
Table 5.4:
Key activities
within a
marketing
plan

Implementing Marketing Plans
An organization’s capability at implementing a

marketing plan is constrained by:
• Time
• Culture
• Partiality
• Latency
• Internal inconsistency
• Strategy inexperience
(Piercy 1998) • Dependency on a Particular Person
Summary
• Described the strategic planning process.

• Explained the key influences that impact on marketing
strategy.
• Explained how understanding competitors can assist the
development of marketing strategy.
• Explained how SWOT analysis can help strategic
marketing decision-making
• Explained the principles of Porter’s generic strategies.
• Outlined the key elements within a marketing plan.

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Chapter 5: Marketing Strategy

Baines, Fill, & Page: Essentials of Marketing

Baines, Fill, & Page: Essentials of Marketing

• Innocent make smoothies, a drink made

• The strong ethical and health credentials

Baines, Fill, & Page: Essentials of Marketing

Baines, Fill, & Page: Essentials of Marketing

Baines, Fill, & Page: Essentials of Marketing

Pestle – An appraisal of the Political, Economic, Social,

Competitor Analysis – An evaluation of the impact that

Baines, Fill, & Page: Essentials of Marketing

Baines, Fill, & Page: Essentials of Marketing

• Integrative growth - occurs where an organization continues to

• Diversification - refers to developments outside the current

Baines, Fill, & Page: Essentials of Marketing

Competitive - is achieved when an organization has an edge over

Generic - there are three generic strategies; overall cost

Competitive - Four main positions can be identified; market leader,

Marketing – organizing and implementing the strategic action.

Baines, Fill, & Page: Essentials of Marketing

Baines, Fill, & Page: Essentials of Marketing

An organization’s capability at implementing a

• Described the strategic planning process.

Baines, Fill, & Page: Essentials of Marketing

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