The New Generation Marketing Text!

MARKETING
ASIAN EDITION

Paul Baines

Chris Fill

Kelly Page | Adapted by Piyush K. Sinha

Essay Questions with Answer Guidance

Marketing Asian Edition

Chapter 5

Essay questions with answer guidance Chapter 5 - Marketing Strategy Question 1 Describe the strategic planning process. Answer guidance The strategic planning process commences at corporate level. Here the organization sets out its overall mission, purpose and values. These are then converted into measurable goals that apply to the whole organization. Then, depending upon the size of the organization, the range of businesses (SBUs) and/or products is determined and resources allocated to help and support each one. Each business and/or product develops detailed functional and competitive strategies and plans, such as a marketing strategy and plan.

Question 2 Explain the key strategic influences that impact on marketing strategy. Answer guidance The development of a strategic marketing plan is a complex and involved process. It does not occur in a linear, sequential manner but certain key aspects can be identified. These concern three broad activities that are necessary when considering the development of marketing strategy and will form the framework through which we examine this topic. These three elements are shown in Figure 5.3 in Chapter 5. Here it can be seen that it is necessary to first develop knowledge and understanding of the marketplace, referred to here as strategic market analysis. The second is to determine what the marketing strategy should achieve, in other words what are the strategic marketing goals that need to be accomplished. The third and final decision area concerns how the goals are to be achieved. This relates directly to strategic marketing action, that is how the strategies are to be implemented, including the development of marketing plans. In summary, there are three key influences on marketing strategy. These are: strategic market analysis, which is concerned with developing knowledge and understanding about the marketplace, strategic marketing goals, which are about what the strategy is intended to achieve, and strategic marketing action, which is about how the strategies are to be implemented.

Question 3 Explain how SWOT analysis can help strategic marketing decision making. Answer guidance SWOT analysis is a tool used to determine an overall view of the strategic position, and highlights the need for a strategy to produce a strong t between the internal capability (strengths and weaknesses) and the external situation (opportunities and threats). SWOT

OXFORD H i g h e r
Oxford University Press, 2013. All rights reserved.

Education

Marketing Asian Edition

Chapter 5 analysis serves to identify the key issues and then prompts thought about converting weaknesses into strengths and threats into opportunities. Students could a) expand on scenario planning or b) further apply the SWOT analysis framework to a case study.

Question 4 Explain the principles of Porters generic strategies for competitive advantage. Answer guidance In order to achieve a sustainable competitive advantage Porter claims there are two main routes. One is to become the lowest-cost producer in a market and the second is to differentiate the product/service to a degree that is of superior value to the customer. These strategies can be implemented in either broad (mass) or narrow (focused) markets. Porter suggested that these give rise to three generic strategies: Overall cost leadership Differentiation Focus strategies.

Students should expand on each of these generic strategies and provide examples.

Question 5 Describe the role of market planning and outline the key elements within a marketing plan. Answer guidance In order for organizations to develop, implement and control marketing activities at product and brand level, a marketing planning process is required, out of which marketing plans are derived. This final section of the chapter considers the marketing planning process, identifies its key characteristics, and considers some of the issues associated with the process. 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). A marketing plan is the key output from the overall strategic marketing planning process. It details a companys or brands intended marketing activity. Marketing plans can be developed for periods of one, two to five years, and anything up to twenty-five years. The following represent the key elements associated with the structure of a marketing plan: overall objectives; product/market background; market analysis; marketing strategy and goals; marketing programmes; implementation, evaluation, and control. Although depicted as a linear process, many organizations either do not follow this process, do not include all these elements, or undertake many of these elements simultaneously.

OXFORD H i g h e r
Oxford University Press, 2013. All rights reserved.

Education