Strategic Marketing: Macro-Environmental Analysis, Market Entry Options, Market Segmentation and Targeting, Porter's Generic Strategies

This document provides an overview of strategic marketing, including macro-environmental analysis, market entry options, market segmentation and targeting, and Porter's generic strategies. It discusses the importance of considering factors such as political, economic, social, technological, environmental, and legal in the marketing strategy. It also explores different market entry options, including strategic alliances, mergers and acquisitions, joint ventures, and foreign direct investment. Additionally, it explains the concept of market segmentation and targeting and demonstrates how Porter's generic strategies can help organizations gain competitive advantages.

Strategic Marketing

Table of Contents
Executive Summary.........................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Macro-Environmental Analysis...................................................................................................4
Market Entry Options......................................................................................................................7
Apply the concept of market segmentation and targeting for critically evaluating the potential
target market....................................................................................................................................9
Demonstrate Porter’s generic strategies which helps to gain competitive advantages..................10
RECOMMENDATIONS...............................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Executive Summary
Strategic Marketing is used by the organizations so that they are able to get a strategic
edge within the market. It has to be used specifically so that a right strategy can be framed for
getting ahead of the various competitors. The managers of an organization are required to use it
effectively and efficiently using the right techniques to get the required benefit from using it. For
it, it is necessary to outline the objectives which will be achieved by the company in a particular
time period and the methods it will adopt for doing so.

INTRODUCTION
Strategic Marketing is a process which is used to develop specific strategies and use
certain tactics so as to get ahead of the competitors in the market (Burford and Chan, 2017). This
has to be used by the marketing managers for the purpose of developing a specific strategy for
marketing. If used correctly this is going to benefit the company a lot by ensuring an increase in
its sales and maximization of its profits. For this report, Wilko has been considered which a
British Company is dealing in homewares and other household items. It is considering
diversifying its business to New Zealand where it will bring some new products in the market. In
this assignment, specific and detailed analysis will be made on macro-environment factors which
affect a firm, modes of market entry, application of concepts of market segmentation. Also,
application of Porter’s generic strategies will be done as a part of this project.
MAIN BODY
Macro-Environmental Analysis
Macro-Environment factors are required to be considered by the organizations because
they can impact its marketing strategy both in the short-run and the long-run (Felix, Rauschnabel
and Hinsch, 2017). These factors can be analyzed with the help of PESTEL analysis. The
analysis in the context of Wilko is as follows-
Political factors- These are government policy, political stability and corruption. These
factors impact Wilko because they are required to be analyzed effectively and efficiently so as to
obtain a strategic edge.
 Opportunity- The government policies in New Zealand are in the favor of the businesses
and thus this creates an advantage for Wilko because it can help it in earning more profits
in the future.
 Threat- If the government increases the tax rates in New Zealand then the profits of
Wilko will reduce leading to the creation of disadvantage for it.

Solution for threat- Wilko needs to increase its sales revenues by adopting the right
tactics so that it can maintain an optimum level of profit despite an increase in taxes.
Economic factors- These are economic growth, exchange rates and interest rates. These
factors impact Wilko because the economic conditions can change very suddenly leading
to an impact on profitability.
 Opportunity- The economic growth in New Zealand is excellent and thus this offers
plenty of opportunities for Wilko to achieve higher growth in the market in the future.
 Threat- If the inflation rate in New Zealand rises then this can also create a disadvantage
for Wilko because this will mean less demand for its goods in the market which will
certainly impact its level of profitability as its profits will reduce. Thus this can be a
disadvantage.
Solution to threat- Wilko is required to keep a right price for its products and services in
New Zealand which will maintain its sales despite an increase in the inflation rate.
Social factors- These are population growth rate, age distribution and safety emphasis.
These factors can affect the profitability level of the organizations as they are required to
be considered.
 Opportunity- If the population growth rate increases in New Zealand then naturally this
will create a demand for the products and services of Wilko as its demand will increase
leading to a rise in its revenues.
 Threat- If there is a change in the lifestyle attitudes of the customers in New Zealand and
they do not prefer the goods sold by Wilko then this will create problems for the
organization in the country as its profits will reduce.
Solution to threat- Wilko needs to adjust its products and services according to the
changing lifestyle attitudes of the customers so as to maintain its level of profits.
Technological factors- These are technology incentives, level of innovation and R&D
activity (Kumar, Sharma and Gupta, 2017). These factors have to be considered by Wilko
because they impact the overall profitability of the organization.
 Opportunity- If Wilko uses innovation and introduces the right products for the market
of New Zealand then it will ensure that the organization is able to earn higher profits.

 Threat- If Wilko is not able to invest much in R&D activity then it will be at
disadvantage as compared to its competitors in the country.
Solution to threat- Wilko has to make sure that it makes the required investment in R&D
activity. This will make sure that it is much-ahead of its competitors on the front of technology in
New Zealand.
Environmental factors- These are weather, climate and environmental policies (McCamley
and Gilmore, 2018). These factors are required to be considered by Wilko because it needs to
make sure that it is adopting an eco-friendly approach because the customers nowadays have
turned environment-conscious.
 Opportunity- If Wilko adopts environment-friendly policies in New Zealand then it can
surely get more profits.
 Threat- If Wilko does not adopt environment-friendly policies in New Zealand then this
will lead towards decrease in its revenues and its profits will also reduce.
Solution to threat- Wilko needs to make sure that it is able to adjust according to the
environmental laws prevailing in the country. This will lead towards more business.
Legal factors- These are discrimination laws, antitrust laws and consumer protection laws
(Varadarajan, 2018). Any organization in a particular country has to follow the legal rules and
regulations which are set by the government of that country. In the context of Wilko, it has to
make sure that it is able to follow the legal rules and regulations so that it is doing its business
lawfully.
 Opportunity- If Wilko is able to follow the legal rules and regulations of New Zealand
then this will result in increase in its profits as it will get the required business.
 Threat- If Wilko does not follows the legal rules and regulations in New Zealand then
this will create problems for the company in the long-run as it will lead towards problems
and issues.
Solution to threat- Wilko has to make sure that it is able to follow the legal rules and
regulations in New Zealand. This will lead towards more business and thus it will earn more
profits in the country by targeting the customers effectively and efficiently and following all
the rules and regulations of the country so that no problems and issues are created.

Market Entry Options
In business environment there many organization who are selling different types of
products and services by understanding demand and filling them properly. Such organization
wants to enter in to new market and expanding market so their selling activities can be increased
and helps to maintain the higher profits. Wilko is home ware organizations that is providing
different types of home décor products and services which attracts customers and manage the
performance. This organization is having different options to entry in market and increase the
performance. The options in relation to market entry are as defined:
Strategic Alliance:- This is defined as alliance and agreement between two and more than two
people who entered for the purpose of entering in to market and running their business
effectively. In this, management both parties excluded the procedure of partnership agency and
corporate affiliated relationship. In context to Wilko, management have option to entered in new
market and business activities by making the strategic alliance and increase the business
performance.
 Advantage:- Wilko can expand its business by strategic alliance that helps to perform
well and increase the brand image in competitive business environment. This also create
opportunities, growth and business stability.
 Disadvantage:- The managers of Wilko face various challenges as fraud, employee
relations and conflicts between employees due to agreement and profits ratio. People
who have entered in to agreement become difficult to manage the activities (Dolnicar and
Ring 2014) .
Merger and Acquisitions:- Merger means addition of two small business which are running
in market and wants to expand their business by entering in to new market. This can help to
operate the both business by getting a new name and help to manage the performance (Abratt
and Bendixen, 2018). Acquisition is another4 option which is required to manage and enter in to
new market. In this, a big organization can acquire small and weaker business by paying the
amount that can be continue and help to increase the business activities. In context to Wilko,
managers can adopt merger and acquisition for entering in to new market which can help to
manage the business activities and increase the performance. By using this organization can
increase their business performance and maintain high productivity.

 Advantage:- By using this, Wilko can entered in to market by developing
competitive advantages. This can help to compete with others and increases market
share. This maintain high performance by running business continuously.
 Disadvantage:- Higher prices, this can reduce competition and profitability. Wilko
has face this problem due to managing activity and decisions are inappropriate that
can create challenge for organization.
Joint Ventures:- This refers as legal activities and agreement which is required in organization
to share their business and creating a new venture that can help to expand the business and
manage the activities in competitive business environment. Wiklo has option to use joint venture
in order to enrter in to new market and managing their business by taking competitive benefits.
 Advantage:- In this, assets are sold and liabilities are paid off so all activities can be
maintain properly and run their business effectively. This helps to attain the future
investment and organizational productivity by entering in to market.
 Disadvantage:- In Joint venture existence of small organization is reduced and all
activities are stop due to jointing with other organization.
Foreign Direct Investment (FDI):- This is consider other ways to enter in to market and
expanding their business activities by using FDI. This means foreign direct investment that
can be use by company to utilize scarce of resources and managing the business activities
that help to deal with difficulties and achieve the goals (Casidy and Wymer, 2018). In
context to, Wiklo organization can use FDI to expand business and managing the activities
that can help to deal with competitor and manage the performance.
 Advantage:- This helps to make strong economy by getting foreign direct investment
and capital that uses properly to work effectively and generate higher profits. Wiklo can
use this by operating business and increasing the performance.
 Disadvantage:- Joint venture is time taken activity in which there is require of legal
forms that uses to run business and earn foreign investment. This make difficult for
organization to create joint venture as it is time taken activity.
From the above Wiklo should be adopt Foreign Direct Investment that can help to maintain
the high profits and performance in competitive business environment. By using this, a small
business can enter in to international market which increases business performance by dealing

with situations and running business appropriately. Wiklo can increase its homeware business by
working with FDI option that will help to utilize resources and increase customers.
Apply the concept of market segmentation and targeting for critically evaluating the
potential target market
Segmented Market:- This means segmentation of people’s group in to different
segmentation by focusing on needs and wants of customers then provide products and services
accordingly. Such as Wiklo is home ware organization that has segmented the market in to
different group according to requirement that are as defined:
• Geographic:- In this, management of Wiklo focuses on interest, taste, preference and
wants that increases demand of products and service in relation to home ware and help to
manage the performance.
• Demographic:- This refers as segmentation of demographics such as age group, gender,
qualification, family size and income group. Wiklo is focusing on income group and occupation
of customers that helps to provide the products accordingly.
• Psychographic:- This refers as classification of potential customers on the basis of their
values, interests, attitudes, lifestyles and opinions. The management of Wiklo are focusing on
attitude and lifestyle of people who wants better quality and design of home ware products
(Chapman and Sadd, 2014).
• Behavioural:- This is another task which is adopted by management by focusing on
buying behavior of customers and target them to buy the products.
From the above Wiklo is mainly focusing on demographic and behavioral segmentation
that helps to provide the products and services by maintaining good performance and create a
high level of satisfaction.
Target Market:- This refers as targeting group which is required for organization in
order to sale their products and services by managing the activities. The Wiklo is targeting
differentiated and undifferentiated products that can help to increase the business performance by
increasing sales and maintaining good performance. This organization is targeting potential
customers who are demanding different types of decorating products which can help to maintain
the good profitability by selling the products.

Positioning – The aim Wiklo is to maintain the leading position in London and other
countries by offering its differentiated products at reasonable prices that attract6s customers and
retain them continuously. This can help to manage the activities and increase performance by
delivering quality and designing of home ware products.
Demonstrate Porter’s generic strategies which helps to gain competitive advantages
Perfect Competition Market:- This determined as competition situation that arises in
market and needed to perform well in competition. In business market, number of suppliers
available who are selling different types of products and services for the purpose of increasing
their activities and maintaining high performance. The management of Wiklo wants to take the
competitive advantages so they are using porter generic model that help to select the best
strategy and make right business decisions.
Porters Generic model – This is a strategy which uses by organization for deciding and
attaining the business goals. A appropriate task and planning which is formulated by managers
for running and organizing all activities in organization and increase the profitability. The
description of porter’s generic strategy are defined below:
Cost leadership – This strategy is related to cost in which organization needs to lowest
cost leader that can help to increase the organizational productivity. The Wiklo’s managers need
to adopt this strategy in which it should set the lowest prices of their hotel services which helps
to take the competitive advantages. In this, it should sale its home ware products at lowest prices
so customers feel happy and attracts to buy the products (Chiarini, 2015 ).
Differentiation – This strategy is related to differentiation in which organization needs to
provide different types of hotel services that can help to take the competitive benefits. In regards
of Wiklo’s managers are focusing on innovative services in their organization such as different
design of home ware products and services as per people’s life style that helps to manage the
performance and increase profitability (Farhangmehr, 2015).
Focus strategy – This planning is those strategy which is uses by organization to create a
differentiation and cost leadership that can help to maintain the good performance in competitive
business environment. Wiklo’s, can use this strategy by providing different ho,e ware products

and services with low cost that can attracts customers and increase the organizational
performance in competitive environment.
From the above Wiklo is using differentiation strategy which helps to attracts the
customers by providing different design of home ware products which encourages classical and
high profile person to buy the products and improve their living standard that helps to increase
higher profits.
RECOMMENDATIONS
From the above specified project report it is recommended that strategic marketing is
playing important role which help to building good relationship and maintaining high
performance. It is recommended to Wiklo to use porter generic that can help to take the
competitive advantages by selecting an appropriate strategy such as differentiation is using by
chosen that helps to attracts the customers by providing better quality and design of products.
Marketing segmentation is uses to classification of market by understanding needs opf customers
targeting them properly.
CONCLUSION
From the above report it can be concluded that strategic marketing is important for
organization that helps to introduce from different planning and marketing strategies in order to
attain the business goals. PESTLE analysis is uses to conduct the macro analysis environment
and maintain business. Porter’s generic model is uses to take the competitive advantage and
market segmentation involves targeting, positioning and segmentation that can help to fill the
needs of customers and increase production.

REFERENCES
Books and Journals:
Burford, M. R. and Chan, K., 2017. Refining a strategic marketing course: Is a ‘flip’a good
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Felix, R., Rauschnabel, P. A. and Hinsch, C., 2017. Elements of strategic social media
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Kumar, V., Sharma, A. and Gupta, S., 2017. Accessing the influence of strategic marketing
research on generating impact: Moderating roles of models, journals, and estimation
approaches. Journal of the Academy of Marketing Science. 45(2). pp.164-185.
McCamley, C. and Gilmore, A., 2018. Strategic marketing planning for heritage tourism: A
conceptual model and empirical findings from two emerging heritage regions. Journal of
Strategic Marketing. 26(2). pp.156-173.
Varadarajan, R., 2018. Innovation, Innovation Strategy, and Strategic Innovation: In Innovation
and Strategy. Published online, pp.143-166.
Abratt, R. and Bendixen, M., 2018. Strategic Marketing: Concepts and Cases. Routledge.
Bolat, E., 2017. Discovering magic of mobile technology in business: Strategic marketing
perspective. In Creating Marketing Magic and Innovative Future Marketing Trends. (pp.
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Casidy, R. and Wymer, W., 2018. A taxonomy of prestige-seeking university students: Strategic
insights for higher education. Journal of strategic marketing. 26(2). pp.140-155.
Chapman, L. and Sadd, D., 2014. Events as strategic marketing tools in shopping centers. Event
Management. 18(3). pp.357-367.
Chiarini, A., 2015. Marketing strategy, strategic planning and corporate social responsibility: An
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Cham.
D’Andrea, F. A. M. C., 2019. Strategic marketing & Austrian economics: The foundations of
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Dolnicar, S. and Ring, A., 2014. Tourism marketing research: Past, present and future. Annals of
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Farhangmehr, M., 2015. Contribution of Strategic Marketing Planning to the Performance of
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Bolat, E., 2017. Discovering magic of mobile technology in business: Strategic marketing
perspective. In Creating Marketing
(Abratt and Bendixen, 2018) (Casidy and Wymer, 2018) (Chapman and Sadd, 2014) (Chiarini,
2015 ) (D’Andrea, 2019) (Dolnicar and Ring 2014) (Farhangmehr, 2015)