INTRODUCTION TO STRATEGIC MARKETING • Accessories: Apple Watch, AirPods.

MANAGEMENT
• Entertainment Services: Apple TV+, Apple Music.
CHAPTER 1
• Digital Ecosystem: iOS, macOS, and other
MARKETING STRATEGY & PLANNING integrated software.

• Marketing makes the corporate strategy decisions Corporate Strategies are usually long-range plans
clear and achievable, the critical question to be designed to select some of the various businesses a
answered is, “In what markets will our particular company should be in. They identify the markets to be
resources be most effective in implementing the served and the product line and services to be
marketing concept?” produced on the basis of an assessment of the
company’s environment, resources, and objectives.
CORPORATE MARKETING PLANNING
2. Product Mix Strategy
Corporate Marketing Planning – is the process by which
an organization sets its long-term priorities regarding – provides clear guidance to the middle managers about
products and markets in order to enhance the value of the top management’s expectations.
the overall marketing performance.
CORPORATE MARKETING PLANNING
There are 2 kinds of top-management decisions that are
Corporate Strategies should be derived from the
involved in the corporate marketing planning:
analysis of 3 elements:
1. Corporate Strategy
1) Environmental Threats & Opportunities
management identifies the businesses in which the 2) Organizational Strengths & Weaknesses
company will be involved in the future by specifying: 3) Corporate Mission & Objectives

 The range of markets to be served "NEVER ENTER UNFAMILIAR TERRAIN"

 The kinds of product to be offered
WHAT IS ENVIRONMENTAL SCANNING?
Range of markets to be served: APPLE INC.
It is the gathering of information pertaining to the
Apple's corporate strategy involves targeting both company's external environment; processing the
consumer and professional markets. This includes a gathered information into strategic analysis whether
range of sectors like: unfavorable impacts may hit the organization in some
future time; hence, enabling organization to create a
• Consumer electronics: iPhones, iPads, and
defense prior to the anticipated attacks.
Apple Watches.
A study of about 100 large companies found out that,
• Personal computing: Mac computers for both
"Firms having advanced systems to monitor events in
consumer and professional use.
the external environment exhibited
• Entertainment and Media: Apple TV+, Apple
higher growth and greater profitability than firms that
Music, and gaming services.
did not have such systems".
• Software Services: iCloud, App Store, and
Environmental Scanning: TESLA
other digital services.

Kinds of Products to be Offered: Apple Inc.

Apple focuses on offering premium, innovative products

that integrate hardware, software, and services:

• Smartphones: iPhone series.

• Computers: MacBook, iMac.

Company like Tesla conducts environmental scanning to  Middle
stay ahead in the electric vehicle market. It monitors  Lower
technological advancements in battery technology,
o Individual's orientation about time, family, leisure,
changes in government regulations regarding
personal goals, career and even religion may directly
emissions, and shifts in consumer preferences toward
or indirectly dictate his or her actions and decisions.
sustainable products. This scanning allows Tesla to
adjust its marketing strategies, product offerings, and o Changing consumer preference
overall business strategy to maintain its competitive
edge. 4. ECONOMIC CONDITION

THE COMPANY'S DYNAMIC ENVIRONMENT INVADED BY o An economy that is slowing down when there is an
SIX (6) UNCONTROLLABLE FACTORS: increasing inflation rate, the ballooning price levels
of commodities affect the buying power of
1. DEMOGRAPHICS consumers.
 Population's age o Economic condition does not only affect marketing
 Income programs but also the business operation and its
cycle in general.
 Gender
o 4 STAGES OF BUSINESS CYCLE:
 Civil Status
i. Prosperity - manifests growth and success in
 Education almost different aspects of business endeavors.
 Religious & Professional Affiliation ii. Recession - is a period where both consumers
 Race and businesses are tightening their economic
belts.
 Geographic Location
iii. Depression - is a period of sustained recession.
Demographics pertains to the characteristics of the
population, which explains who they are and how much iv. Recovery - is an upswing period where
they are willing to sacrifice as payment to the products companies are slowly recuperating from the ill-
or services they would like to enjoy or avail. fated period of recession or depression

2. TECHNOLOGY 5. POLITICAL AND LEGAL FORCES

o The internet has now become a way of life. o When the state enacts and promulgates laws, these
o People now spend more time online than watching limit legitimate actions of a firm.
tv or reading magazine.
o A recent consumer survey shows that everyone is o These forces affect the effort of the firm as to the
jumping on mobile applications already. production, promotion and distribution of their
o Consumers from all generations are starting to make products to the target market.
more purchases on smartphones and tablets 6. COMPETITION
through browsers and app.
o These forces affect the effort of the firm as to the
3. SOCIAL AND CULTURAL FORCES production, promotion and distribution of their
o Purchasing decisions can also be affected by a social products to the target market.
class or a particular group where an individual is i. Brand Competition - companies have to deal
affiliated with. consistently with brand competition from
o The cultural comfort zone that the group adheres to marketers of directly similar products.
could shape consumer's buying decisions.
o Social Classes: ii. Substitute Products - these are items that can
 Upper replenish the same needs or wants especially in
the absence of the intended product brand.
 iii. Competition for Target Customers - marketers • Vision - is the desired image of what you want your
have to work double since companies rival for business to become in the future.
the customer's limited budget and limited
• Objectives - It serves as the organization's control
attention.
mechanism since it directs plans, it tells where the
SCANNING THE ORGANIZATION'S INTERNAL FORCES primary emphasis or the magnitude of resources is
to be placed; and at the end of every period,
• Second fundamental consideration in selecting a
objective serves as the yardstick that will speak the
corporate strategy is whether the firm possesses the
organization's performance.
strengths and weaknesses required to respond to
environmental developments. • Goal - are strategic objectives that a company's
management establishes to outline expected
• Strengths are analyzed by identifying resources and
outcomes and guide employees' efforts.
competencies:
TYPICAL CORPORATE MARKETING STRATEGY
• Financial resources
2 Fundamental Directions in Selecting a Corporate
• Labor and managerial skills
Strategy:
• Production capacity and efficient equipment
1. Growth Strategies - refers to a plan or
• Research and development skills and patents method that a business implements to expand its
operations, increase its market share, and
• Control over key raw materials ultimately boost its revenue and profitability.
• Size and expertise of the sales force This strategy can be executed in various ways,
depending on the company's goals, resources, and
• Efficient and effective distribution channels market conditions.
Frito Lay’s Success in the Snack Business 2. Consolidation Strategies - involves stabilizing
Core Competency – firm’s strongest resources or strengthening a company's position in the
market by focusing on reducing costs, eliminating
• Effective advertising management redundancies, and optimizing operations. This approach
is often used when a company wants to secure its
• Extensive sales force
current market share and improve efficiency rather than
STRATEGIC ALLIANCE – two firms collaborate in a far aggressively pursuing growth.
more complete way by exchanging some key resources
Growth Strategies: Growth for Current Market
that enable both parties to enhance their performance.
Market Penetration - a company increases its market
The strategic alliance will allow both carriers to harness
share within existing markets by promoting its current
synergies and efficiencies to enhance their network
products more aggressively.
coverage, flight frequencies and customer service, and
jointly market their routes using codeshare and interline Ex: Coca-Cola - increases advertising and promotional
arrangements. offers to boost sales in an already saturated beverage
market
“Tigerair and Cebu Pacific share a vision for both airlines
to join forces and create the largest budget airline Growth Strategies: Growth for Current Market
network between Asia and the Philippines.
Product Development – involves the development of
Mission, Vision, Objectives & Goals new products for existing markets in order to:
• Mission – describes the broad purposes the • Meet changing customer needs and wants
organization serves and provides general criteria for
long run organizational effectiveness. • Match new competitive offerings

• Take advantage of new technology

Ex: Dunkin - Dunkin' significantly expanded its beverage • Telecommunications – Globe
menu, particularly focusing on coffee. The introduction
• Water Utilities – Manila Water Company
of espresso-based drinks, iced coffees, cold brews, and
specialty beverages helped Dunkin' tap into the growing • Power Generation – AC Energy
coffee culture.
• Health Care – Ayala Health Care Holdings
Growth Strategies: Vertical Integration
• Education – Avida
Vertical Integration - A company takes control of more
stages in its supply chain to reduce costs and improve Consolidation of Strategies: Retrenchment
efficiency. Retrenchment - is a strategy that companies use to
Ex: Universal Robina Corporation - is vertically reduce costs, improve financial stability, or streamline
integrated from the production of raw materials to the operations during difficult economic times or when
manufacturing and distribution of its products. For facing financial challenges. This often involves
instance, URC owns sugar mills and plantations, which downsizing the workforce, selling off unprofitable
supply the sugar used in its products. It also owns divisions, closing underperforming units, or other
factories that produce a wide range of food items and measures aimed at cutting costs and refocusing the
operates distribution networks to bring its products to business on its core operations.
retailers and consumers. Ex: ABS-CBN - faced significant challenges in 2020 when
Growth Strategies: Growth for New Market its broadcasting franchise was not renewed by the
Philippine Congress. The non-renewal forced the
Market Development – represents an effort to bring network to cease its free-to-air TV and radio operations,
current products to new markets. which had been a major source of revenue.
Ex: Ikea - the Swedish furniture and home goods giant, Consolidation of Strategies: Divestment
has successfully employed a market development
strategy by expanding into new geographic regions Divestment – occurs when a firm sells off a part of its
across the globe. Starting in Sweden, IKEA gradually business to another organization.
entered new markets in Europe, North America, Asia, Ex: San Miguel Corporation
the Middle East, and more.
SMC sold its 40% stake in Petron Corporation to the
Growth Strategies: Growth for New Market Saudi Aramco Oil Company in 1994. The divestment
Diversification – a strategy that involves both new raised significant capital for SMC and allowed it to
products and new markets. reduce its exposure to the volatile oil industry.

• No other growth opportunities can be Consolidation of Strategies: Pruning

established with existing products or markets. Pruning – occurs when a firm reduces the number of
The firm has unstable sales or profits because it products offered in a market. It is the opposite of
operates in markets that are characterized by unstable product development and occurs when a firm decides
environments that some market segments are too small or too costly
to continue to serve.
Ex: Ayala Corporation
Ex: JFC - Jollibee acquired Red Ribbon Bakeshop, a
Ayala Corporation's diversification strategy has allowed popular Filipino bakery chain, as part of its expansion
it to grow from a real estate company into a multi- strategy to cater to the Filipino in the US. While the
industry conglomerate, making it one of the most brand was successful in the Philippines, it faced
influential and resilient companies in the Philippines. challenges in the competitive US market.
• Real estate – Ayala Land In 2020, JFC decided to close several Red Ribbon stores
in the US as part of a broader strategy to focus on more
• Banking & Financial Services – BPI
profitable and strategically aligned businesses.
Product Mix Strategy

Product mix strategy refers to the approach a company

takes to manage and optimize its range of products. This
strategy involves decisions about the variety, width,
depth, and consistency of the product lines the
company offers. The goal is to align the product mix
with the company’s overall business objectives, market
demands, and consumer preferences.

Key Components:

a) Product Mix Width

The number of different product lines a company offers.

Example: A company like Procter & Gamble, which

offers a wide range of product lines including personal
care, cleaning agents, and health products.

b) Product Mix Length - The total number of

products within the product lines.

Example: A smartphone manufacturer might offer a

range of models within its product line, from budget to
premium devices.

c) Product Mix Depth - The number of variations

or versions of each product within a product
line.

Example: A coffee company like Starbucks offers

multiple flavors, sizes, and brewing methods to cater to
different tastes.

d) Product Mix Consistency - How closely related

the various product lines are to each other in
terms of use, production, and distribution.

Example: Apple maintains high consistency by focusing

on high-tech, premium consumer electronics and
software, while a company like Nestlé has a diverse
product mix spanning food, beverages, and nutrition.