Strategies for Gaining Competitive Advantage

Environmental factors can significantly affect an organization's overall business activity. These factors include Political, Economic, Social, Technological, Environmental, and Legal (PESTLE) influences. To gain a competitive advantage, organizations can employ various strategies such as product innovation, market segmentation, and brand positioning. Effective marketing communication strategies are also crucial for introducing products to customers and promoting them in targeted areas.

STRATEGIC MARKETING

TABLE OF CONTENTS
Strategic marketing...............................................................................................................................1
Introduction...........................................................................................................................................3
Activity 1..............................................................................................................................................3
Role of strategic marketing..............................................................................................................3
Relationship between corporate strategy ad marketing strategy......................................................3
Development of marketing strategies..............................................................................................4
Decision and choices made at corporate level.................................................................................5
Impact of decisions on influencing marketing at business unit and functional level.......................5
Approaches to competitive positioning............................................................................................5
Activity 2..............................................................................................................................................6
Approaches to internal environmental analysis:..............................................................................6
Approaches to external environmental analysis...............................................................................6
Integration of external and internal analysis....................................................................................6
Activity 3..............................................................................................................................................7
Range of strategies contribute to their business competitive advantage..........................................7
Marketing communication strategies...............................................................................................7
Marketing strategies and how they can be implemented.................................................................8
Conclusion ...........................................................................................................................................8
REFERENCES.....................................................................................................................................9

INTRODUCTION
Strategic marketing refers to designing marketing plans according to needs and demands of
customer. It helps an organization to achieve their goals with more consumer satisfaction. Apart
from all this it also improved performance of company which results in increasing profits. In his
report, the entire case is based on marketing consultancy business Total Marketing Solutions Ltd. It
was found in 2004 for providing high quality marketing plans to their customer which can help
them to improve their organizational performance (Aboutus. 2016).
The report highlights principles of strategic marketing under which plans and ideas are
developed. Apart from this, a detailed explanation of role of strategic marketing and its relationship
with corporate strategy is elaborated which helps in assessing its use in developing marketing plans.
In addition to this, analysis of external and internal environmental are evaluated which affects
decision making capacity of managers. Other than this, the report explains a range of strategies
which helps to manage competitive advantage within the organization. Apart from this various plans
are highlighted in the report through which marketing strategies are implemented on an
organization.
LO 1: UNDERSTAND THE PRINCIPLES OF STRATEGIC MARKETING
1.1) Role of strategic marketing
Marketing strategy:
Marketing strategy refers to the development of fundamental goals through which it can be
possible to increase the sales of company and achieve competitive advantage in the market place. It
deals with all short term and long term goals of company in the field of achieving its target within
market place.
Role of marketing strategy:
Developing marketing plans: Marketing plans gives an idea to accomplish the task
effectively. Apart from this, starting a work with planning that will give better results than doing it
without any specific plan. It includes identifying marketing tools through which the customers are
targeted and also analyse sources of advertisement which help customer to know about the features
of services or product (West, Ford and Ibrahim, 2015). Total Marketing solutions should develop
marketing plans that will help them to make good strategic marketing plans.
Developing financial goals: Financial goals can be anything, it may be related to budgets or
earning profits. Specific plans are developed to control their cost of introducing services or product
which will results in getting more profit within the predetermined time period (Mena and
Chabowski, 2015.).
Forecasting: Apart from this, strategic marketing helps to forecast needs and demands of

costumer which helps in developing marketing plan accordingly. It has the tools and techniques
through which proper analyses is done to identify all the future conditions of market. Finance
department helps to find needs of funds for creating budgets while human resource management
looks go forecast sales to make appropriate plans for employees (Kortmann, 2015).
Use of resources and implementation: Marketing strategy also helps the organization to use
their resources in an efficient way so that it will be easy for TMS to use their major resources as the
strengths of business. At the time of implementation, it is easier for the organization to implement
the strategies easily with the help of resources.
Monitoring and control: Developing marketing strategy also helps to monitor and control
the business activities through which it will be easy to watch the progress of company in the
organization.
1.2) Relationship between corporate strategy and marketing strategy
Corporate strategy helps to create value of organization across different business while
marketing strategy deals with combining all then plans which are used in achieving marketing goals
of the company. Corporate strategy evaluate plans to aid an organization in carrying out visions and
missions of company while achieving its organizational goals and Marketing strategy helps to
attract the customers which are targeted in their visions and missions. Corporate strategies identifies
competitor analysis through using SWOT and Five force model across the market and Marketing
strategies find effective ways and tools which help to face the market competition and gain
competitive advantage (Ashley and Tuten, 2015). Corporate strategy has main focus on profitability
of business and Marketing strategy develop plans how to achieve the profits from the market.
Corporate strategies identifies the market and people who have to be targeted and Marketing
strategies develop plans on how to attract the targeted market for consuming the services (Gonzalez-
Brambila, Jenkins and Lloret, 2016). Both Corporate strategy and Marketing strategies are
important for Total Marketing Solutions. For example, corporate strategy and marketing strategy of
McDonald both have positive relationship as they are operating in different countries which are a
part of their marketing strategy and this will also give direction to their entire organization. Other
than this, it will also help the organization to get their goals achieved within a limited period of
time. Their marketing strategy will give support to their overall corporate strategy by increasing the
profit of company.
1.3) Development of marketing strategies
Success of marketing strategies are always depends on reaction of customer. Marketing
strategies should be built according to attitude, culture and environment under which the services
and products are introduced.

Environmental analysis: For developing marketing strategy, it is essential to conduct
environmental analysis of the market. It will help the firm to find major opportunities within market
so that it will be easy for them to get the positive results.
Objectives: The major objectives of TMS are to expand the network of customers so that
they will be able to cover more market area. This will help to increase their profits. Another
objective of company is to increase the level of customer satisfaction so that it will be easier for
them to make profits.
Develop unique selling point: Some unique prepositions should be identified which helps in
convincing targeted customer (Hollensen, 2015). This preposition helps Total Marketing Solutions
to make company different from all other. Different features, uses and benefits of the product should
be clearly stated to customer that helps them understand benefits of the product for them.
Target the customers: After finding unique prepositions, Total Marketing Solutions should
focus on deciding the customer which should be targeted for the product. Ways of attracting
customer are depends upon targeted market.
Define the benefits of product or services: Benefits of product should be described on the
targeted market through which product can be introduced (Grönroos, 2016). Customers are attracted
towards the services after identifying its benefits for them. This will help Total Marketing Solutions
to convince people more effectively.
Create pricing strategies: Pricing of the product should be according to type of targeted
customer. Appropriate prices should be identified which the target market can afford. A proper
market research should be conducted in market which helps Total Marketing Solution to evaluate
buying capacity of people (Costanzo and Di Domenico, 2015). For example, TESCO uses to
provide discount on their the product which will help them to attract the customers (Tesco launches
fresh price-cutting drive to combat Lidl and Aldi as its market share tumbles and accounting
scandal takes toll, 2014).
To position the product: After identifying all the above factors, Total Marketing Solutions
should work on deciding positioning strategy for the chosen product and services. For this, company
should choose a place where the product can be easily reachable by the customer (West, Ford and
Ibrahim, 2015.).
Identifying promotional techniques: Total Marketing Solutions should work on identifying
promotional techniques through which an organization can better introduce their product to targeted
customers. It includes advertising, sales techniques and public relation campaigns through which a
product can be promoted in the market. For example, TESCO is using club cards for making
promotions of the products. This will help them to attract more people so that they can achieve their
goals (Tesco Clubcard Rewards for Petrol, Diesel, Car Washes | Esso, 2016).

LO 2: UNDERSTAND HOW TO CARRY OUT STRATEGIC MARKETING
ANALYSIS
2.1) Approaches to internal environmental analysis:
SWOT analysis: It helps Total Marketing Solutions to evaluate internal strength of the
business and helps managers to take quick overview of the firm. Strength refers to that attributes of
business which are helpful in achieving organizational goals. Using strength of the company as tool
organizational objectives can be achieved more quickly.
Apart from this, weaknesses of the company include low morale of employees, lack of
proper management and absence of cooperativeness among staff (Bennett and Chorley, 2015). For
this Total Marketing Solutions should make a detailed study on organizational weaknesses because
this will reduce working efficiency and productivity of the company. These factors will help to
determine opportunities and threats for the organization and also evaluate the sources which can be
used while facing competitors.
McKinsey 7S Framework: It is a management model which is used as an organizational tool
for assessing and monitoring the internal situation of an organization. TMS should use McKinsey’s
model so that they will be able to find their major structure of organization. The factors which are
included in this framework are strategy, structure, systems, staff, style and skills of the employees.
This factor has a major impact on the profitability of the organisation. All of these factors should be
take care by the organization so it will be easy for them to get the organizational goals more easily.
There are two which are hard elements and soft elements. Hard elements are strategy, structure and
systems. This element can be seen at place while the soft elements are shared values, skills, staff and
style, which are intangible and cannot be seen by the organization still they are involved in the
growth of the company. All of these elements are interrelated with each other.
Structure: it is the line of reporting, task allocation and supervise all the level in the
organization. Through this, TMS will be able to monitor the performance of the employee and also
it will help to make coordination between the all levels of employees so that they can work together
for achieving the organizational goals.
Strategy: Strategies plays an important role in enhancing the market share of the
organization. For this top level plan have to be developed by TMS so it will help the to get
competitive advantage within the market.
Systems: TMS should plan the strategy which can support the system and process of the
firm. Different types of process and system are three such as information system, financial system,
and payment system and resource allocation of the organization. So the plans and strategies should
support the system, of the organization through which it will be easy to get success.
Shared values: This factors are related to the core values of the company which help the to

get more success within less period of time.
Styles: This is related with the leadership styles which are helpful in motivating the
employees. The company have to use effective leadership styles so that employees will get attracted
towards their work.
Staff: It deals with number of people working in the organization. TMS should also have to
find the number of people working with them. If they do not have the sufficient human resource
they should appoint more people who can make participation in the productivity and profitability of
the organization.
Skills: Employees which are working in the organization should have sufficient knowledge
about the work they are given. This will help TMS to get more success with the market. A skilful
employee can give more positive results than the untrained people.
2.2) Approaches to external environmental analysis
External environmental analysis helps to evaluate the factors which can affect business in
terms of their profit and expansion of business. It includes political, economical, social,
technological, environmental and legal factors. These factors are generally not in control of a single
business entity. It helps to understand risk factors which are responsible for growth and decline of
market. It is basically a framework used for scanning external macro environment which affects
both domestic and international business of the company. Political approach of business helps to
deal with political issues related to business which helps to understand the political and legal
environment of business across the country (De Massis and et.al., 2015).
Apart from this economical factors of the country deal with employment rate, rate of
inflation and consumer confidence. Change in any of the economical condition will impact overall
business of the company. Other than this, change in technology will also impact business. Social
factors also have a great impact on the profitability of company. Total marketing Solutions should
make an effective research to analyse all the external factors of a business which can impact
profitability of business. Governmental factors also affect the business of the organization, as the
company have to deal with all the policies and regulations of the govt. so that the organization can
make their business transaction more easily.
Other than this, micro environmental factors are also responsible for the growth and
expansion of business. This are related with employee, customers and competitors. Employees
affect business in the sense that if organization do not have the skilled employees, it will impact on
the productivity of business. As if they do not work properly, it will directly impact on the business
of TMS. Other than employees, customers also affect the profitability (PESTLE Analysis for Tesco
discusses its Business Environment, 2016).

2.3) Integration of external and internal analysis
Integration basically refers to the adding all the internal and external factors to find out the
best possible results. Focusing on external analysis will help to identify their effects on the
profitability of the business. Total Marketing Solutions can provide best working environment to
their client by introducing them through external and internal factors of business. While paying
attention on internal factors company can find out their own strengths and weaknesses. It shows
how to use their strengths as a tool for making business plan successful (Melnikas, 2015). It deals
with functional assessment of financial, human resources and information system of the
organization. Apart from this, Swot analysis helps in matching the firm resources with the
capabilities of the competitive environment in which the business operate.
By understanding internal and external factors company can differentiate themselves from
their competitors. Both internal and external factors are integrated with each other as they both are
responsible for measuring the factors which can affect the productivity of the business. Internal
factors deals with internal environment of the company while external deals with all the external
factors. For example, both internal and external factors impact a lot on the progress of business.
Both the micro and macro factors are responsible for development of the business.
LO 3: ANALYSING THE STRATEGIC MARKETING DECISIONS AND
CHOICES
3.1) Decision and choices made at corporate level
Decisions of all levels management are taken on the behalf of the company. All decision
which is taken at corporate level directly or indirectly related to functions of management which
includes planning, organizing, leading, staffing and controlling. Decisions and choices made at
corporate level are as follows:
Strategic decisions: This are basically refers to long term and difficult decisions which are
taken by senior level managers. This decision has the capabilities to affect direction of whole
organization. These decisions are multi dimensional and have an impact long term decisions of the
organization. Large amount of money is involved in these types of decisions (Costanzo and Di
Domenico, 2015). Corporate level mangers of Total Marketing solutions work on taking decisions
on expansion of product and services that involve high amount of money. Apart from this, new
technologies and sources are developed which help to make services more efficient. Main
characteristics of the strategic decisions are implication of resources on the right place, assigning
duties to the people according to their interest and abilities. For example TESCO is using strategic
decisions to decide the prices of their products through which they can get success within the
market.

Tactical decisions: These are included in medium term decisions of a company. A single
wrong step of taking decisions can make the whole organization into wrong direction. These
decisions are taken by senior level and middle level managers (Hammond, Keeney and Raiffa,
2015).
Difference between strategic and tactical decisions: Both the decisions are different from
each other as the strategic decisions are related to the major and complex decision of the
organization. On contrary to this, tactical decision are not much complex. Strategic decisions are
taken for long time while tactical decisions are taken for medium time.
3.2) Impact of decisions on influencing marketing at business unit and functional level
Business unit: Different business units are there such as accounting, marketing and
production. This is also known as division of people on the basis of functional area. All the business
unit have to follow the strategic decisions of the organization.
Functional level: Different functional level is there where people work is assigned to people
on the basis of their area of interest and ability. People are divided on the base of their different
functional level.
Impact of strategic and tactic decision at business unit and functional level: As, strategic
decisions are taken on long term basis; this will affect the profits of entire organization (Krush, Sohi
and Saini, 2015). For multi-dimensional organization it helps in finding ways that how staffing,
capital and other resources are allocated that form benefits for the organization. It also affects at
functional level as strategic decisions also affects integrating activities operating in functional area.
Functional strategy links with business strategy and overall corporate strategy so any corporate
decision will make effect on functional level of business.
3.3) Approaches to competitive positioning
Total Marketing Solutions can use different positioning approaches to make the product
more competitive in the market. These approaches are as follows:
Competitive positioning: It is related to positioning of business in a manner that can help
them to get more success. This can be created through making better promotional activities by using
different pricing strategies. For example, TECSO is making their positioning on the base of quality
of their products. This will help the company to become to become market leader. Benefit of a
product is to make competitive positioning in market. It includes introducing new product with an
explanation of its uses and benefits to the targeted group (West, Ford and Ibrahim, 2015.).
Using price as positioning tool: Total Marketing Solutions also position the organization's
product through using their prices as a tool (Böttcher and Müller, 2015). Offering affordable prices
with good quality of product will always attracts customer towards the company.

Using product-user approach: In this approach product is positioned in the market with
focusing on a particular user group. Total Marketing Solutions can use this approaches for their
customer to make competitive positioning.
LO 4: UNDERSTAND HOW A RANGE OF MARKETING STRATEGIES CAN
BE IMPLEMENTED TO CONTRIBUTE TO COMPETITIVE ADVANTAGE
4.1) Range of strategies contribute to their business competitive advantage
Competitive advantage basically refers to an environment where a business can gain profit
over its competitors. It can be done through offering a range of services to their customers according
to their needs and demands.
Cost leadership strategy: This strategy deals with establishing competitive advantages
across marketplace. Its main aim is to create low cost operations for the business. Total Marketing
Solutions can use this strategy for their clients by reducing their operational cost below the other
competitors (Morris and et.al., 2015).
Product differentiation: Total Marketing Solutions can use this strategy for their clients
which help them to gain competitive advantages by introducing a range of products in market
(Luxton, Reid and Mavondo, 2015). This product and services should be unique in their nature
which attracts more customers.
Focus strategy: Total Marketing Solutions helps their client to gain competitive advantage
by using focus strategy. This strategy deals with focusing on a few target markets (Frow and et.al.,
2015). Introducing new products and setting prices are based on needs and demands of the selected
segment.
Segmentation: This will help TMS to segment the market on the basis of different grounds
so it will be easy for them to make focus on the specific market.
E-marketing: Now-a-days people spent most of their time on internet, so E-marketing will
be grate option for TMS to make target on the entire market. Through this they can cover the major
of the area.
4.2) Marketing communication strategies
Total Marketing Solutions can use this to make customer aware about the brand and product.
Marketing communication strategy develops a plan to introduce a product in market. Apart from
this, the strategy will started for focusing the customer. Analysing customer needs, preference and
buying habits will help to introduce new product more effectively. It helps to disseminate company's
ongoing message in one or more components. Apart from all this, it also helps to develop strategic
vision to lookout for new opportunities within the market. This strategy works for expressing
competitive advantage and improving its ways which help to become market leader of the business

(The conceptual foundations of relationship marketing: Review and synthesis. 2015.). Total
Marketing Solutions can also use this strategy for building a good image of the company. This can
be done through publishing all activity such as charitable work of the organization. Company need
to attract their clients continuously for this. Communication is a strategy that helps to attract new
talent towards the company.
 Marcom success measurement: IT states that whatever are the methods of communication,
it should be measurable. For this, TMS should establish key communication goals and then
work according to this. It will help the organization to find the progress of the business.
Other than this, TMS can also make communication on the international level so it will be
helpful for them to increase their contacts. Through use of social media they can enhance their
communication network.
4.3) Marketing strategies and how they can be implemented
Specific targeting: For an effective marketing strategy specific customers should be
targeted. By focusing on specific people and by understanding their needs, it helps to achieve the
organizational goals more quickly and efficiently (Grönroos, 2016). Company can use this
technique as making strategy for targeting specific area.
Social networking: Social networking sites are the most popular things which help in
advertising the features and quality of product or services. This will also reduce cost of marketing
for company. As, most of people are interested in accessing social sites, this could be a great
strategy for advertising the product in every social networking sites (Cohen and et.al., 2015).
Electronic barcode technology: As, Barcode technology is becoming more and more
popular as marketing strategy. In this strategy a logo type graphic is placed on a business card or
other printed piece. A phone application is used to read the tag. This will help the company to
making new marketing strategy with adopting new technology in it. New technology will always
attract customer.
Product development: For increasing profits TMS can develop their services, so it will help
them to attract the customer in market. It will also help the organization to increase their market
share among the competitors.
To lower down the prices: This is another method of developing the market share of TMS.
In this they can attract the people through lowering their prices. Thy will also get competitive
advantage through using this strategy.
CONCLUSION
The entire report is based on a marketing consultancy business which provides their services
to their clients in developing their business. In this case, role of strategic marketing is explained

which helps to identify its uses in an organization. Apart from this, a detail analysis of relationship
between corporate strategy and marketing strategy is done. In addition to this, a marketing strategy
is developed which helps Total Marketing Solution to help their clients.
Other than this, effect of strategic decision is shown on marketing decisions of the company.
Various approaches of positioning are described which helps to gain competitive advantage for the
organization. The report also highlights the internal and external environmental factors which can
affect overall business activity of organization. Apart from this, a range of strategies are elaborated
which helps to gain competitive advantage across the market. In addition to this, marketing
communication strategies are explained which helps to sale the product by introducing it to
customer. At the end, marketing strategies are explained that helps to market the product in the
targeted area.

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