Strategic Marketing Management and Competitive Advantage Report

This report, focusing on strategic marketing management, examines the critical relationship between marketing activities and competitive advantages in the global business environment. It highlights the significance of effective marketing in achieving success, particularly in the context of global challenges. The report uses Apple as a case study to analyze the impact of marketing strategies. It reviews literature from various authors to understand how marketing elements contribute to competitive advantages, addressing issues such as diverse customer requirements and pricing challenges. The analysis includes a discussion of marketing capabilities, sustainable strategies, promotional mediums, value propositions, and pricing decisions. The report concludes by emphasizing the importance of adapting to market diversity and recommends decentralization and market-adaptable approaches for businesses to gain competitive advantages. The study also offers a critical analysis of the relationship between marketing and competitive advantages based on the opinions of different authors, including the key issues affecting the marketing performance. Based on these issues, a few recommended steps are discussed.

Running head: STRATEGIC MARKETING MANAGEMENT
Strategic marketing management
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Abstract
The chosen topic of relationships between the marketing activities and competitive advantages in
the current global business scenario is important because marketing effectiveness holds the key
term in the contemporary business operation. In the modern day business process, getting
succeeded in the market without having the proper marketing effectiveness is impossible. Thus,
this topic is chosen to gain an understanding about how the marketing activities can be effective
in gaining competitive advantages for the business. In doing so, Apple was chosen because they
are having their business across the world and facing the authentic global challenges. This helped
in identifying the major issues being faced by the contemporary business organizations in terms
of their marketing performance. In this report, critical analysis of the relationship between these
two variables has been done on the basis of different opinions of the authors. In addition, the
approach of the authors towards the particular marketing elements in gaining the competitive
advantages is also analyzed. Each of the opinions being given by them is further critically
analyzed by the potential challenges and issues. On the basis of these issues, a few recommended
steps are discussed. This report concluded that diversity in the current global market condition is
the key challenge for the business organizations. They are facing the issue of meeting the diverse
requirements of the customers from around the world. This report also concluded that
decentralization and market adoptable approach can be the key determinants for the business
entities in gaining the competitive advantages from their marketing activities.

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Table of Contents
Introduction......................................................................................................................................3
Problem statement.......................................................................................................................4
Literature review..............................................................................................................................4
Marketing capabilities and competitive advantages....................................................................5
Different marketing elements for gaining competitive advantages.............................................7
Sustainable strategy.................................................................................................................8
Promotional mediums and strategies.......................................................................................8
Value propositions...................................................................................................................9
Pricing decisions........................................................................................................................10
Critical analysis of the major performance issues.........................................................................11
Diversity in the customer requirements.....................................................................................12
Challenges in the pricing factors...............................................................................................13
Conclusion.....................................................................................................................................14
Recommendations..........................................................................................................................17
Reference.......................................................................................................................................19

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Introduction
The current business scenario is perceived as the most opportunist environment for the
contemporary business organizations. This is mainly due to the reason of globalization based on
which, the contemporary entities are operating in the international market and maximizing their
business opportunities from across the world. However, on the other hand, it should also be
noted that apart from the increasing opportunities, there are number of threats and challenges
also being faced by them. The major challenge for the contemporary business entity is mainly
from the side of the market complexity (Hillebrand, Driessen & Koll, 2015). With the emergence
of globalization, the target audience for the contemporary business entities is diverse in nature
and thus the business entities are facing the issues in meeting the diverse needs and requirements
of the customers from across the world. In this case, the key role is being played by the
marketing activities and principles of the businesses. This is due to the reason that with the help
of the effective marketing activities, the brand exposure will get increased and market awareness
for the particular brand will be more favorable (Al Fahad et al., 2015). There are number of
instances where it is seen that the marketing activities and strategies of the business firms are
their key source of gaining competitive advantages.
It is a well known cited fact that in the current business state of affairs, marketing and
competitive advantages are having direct relationships each of them is complementary to
another. However, the extent to which this advantage can be gained by the business
organizations is depended on the effectiveness of the marketing strategies. Number of issues is
also getting emerged in the current time that is posing the challenges for the business firms in
gaining the competitive advantages from their marketing activities (Urbancova, 2013). Thus, it is
important to understand the extent to which the marketing activities and strategies are effective

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in gaining the competitive advantages and the potential barriers to be faced. In this case, the
contradiction of the authors in concluding the statement is evident. This report will critically
analyze the relationship between the marketing activities and competitive advantages based on
the opinions of different authors. In addition, the key issues affecting the marketing performance
will also be discussed (Li & Liu, 2014). All these factors will be discussed from the perspective
of Apple because Apple is one of the renowned companies in the world in terms of extensive and
innovative marketing activities. Based on the identified factors, a few steps and strategies will be
discussed.
Problem statement
The key problem statement is the challenges associated with the global companies in
catering the international customer segments. This is majorly relevant for the MNCs such as
Apple because they are present in different countries and targeting the diverse range of
customers.
Literature review
As stated in the above section, different authors and articles are having different opinions
regarding the relationship between the marketing strategies and principles with gaining
competitive advantages. In addition, it is also important to note that each of the authors have
focused on different elements of marketing to gain competitive advantage and effectively
targeting the global sets of customers (Schilke, 2014). The following sections will discuss about
the opinions of the authors regarding the relationship between the marketing elements and
gaining competitive advantages. In addition, the specific marketing elements being focused by

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each of authors will also be discussed, which will help to have the understanding about how the
competitive advantages are being gained from the marketing strategies.
Marketing capabilities and competitive advantages
According to Tan and Sousa (2015), the marketing capabilities of the business firms are
directly related to the gaining of competitive advantages. This is due to the reason that marketing
capabilities of the businesses will determine the extent to which they are effectively leveraging
on their competitive advantages. This article concluded on the basis of dynamic capabilities
theory and stated that in the current business scenario, marketing activities should also be
considered as a major firm capability. It is also stated in this article that, the marketing
capabilities can also be beneficial in the international business performance. This is due to the
reason that in the international market, the success will be determined to the extent of the brand
awareness and identity and equity. The more will be the brand identity of the organizations
across the world, the more will be the potentialities for business. For instance, Apple is one of
the most known brands in the world and their logo is extensively communicated across the
world. This is helping them to create the same level of influence on the customers from different
regions and gain the maximum market opportunities.
However, on the other hand, it is stated by Vargo and Lusch (2014) that the marketing
activities will be effective and fruitful for the companies only when they will be properly aligned
with the external market and industrial situations. For instance, the marketing strategies initiated
by Apple should be in line to the current industrial trends in order to gain the maximum. Thus, as
per this article, business situations should also be considered in gaining the competitive
advantages from the marketing activities. Strategic marketing theories such as Porter five forces

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analysis will be effective in meeting the conditions of the current industrial situations and on the
basis of that, the marketing activities should be designed. Vargo and Lusch (2014) also stated the
fact that the new dominant logic of marketing refers to the flexibility of getting changed
according to the situation. Thus, with the help of these theories, current situations can be detected
and marketing activities can be designed accordingly. For example, Apple is having different and
diverse industrial trends in different regions across the world and accordingly, they are having
different strategies. In this stage, one key difference is identified, which is the change in the
definition of the dominant marketing strategy (Montgomerie & Roscoe, 2013). This is due to the
fact that in the recent past, organizations are recommended to follow certain marketing
approaches in their business but in the current time, flexibility is given the maximum focus. This
denotes the current challenge in catering the global customer differences.
It is stated by Whalen et al. (2016) that in the current global business trends, the
marketing activities and the competitive advantages are related because rate of revenue
generation is dependent on this factor. According to the authors, gone are the days when the
manufactured items are being sold to the customers and the customers were also having low
alternative options. In the current time, the trends and requirements of the target customers are
first determined and based on that the products and services are offered. In this case, the role of
marketing is not only to create the market potentiality but also determining the needs of the
customers. Thus, if the needs of the customers can be fulfilled, then they will get more attracted
towards the value propositions and revenue will get generated. Thus, as per the authors, the more
effective will be the marketing activities, the more will be the target customer based and the
more will be the competitive advantages in terms of higher sets of revenue. This is another fact
that is proving the point that marketing activities and competitive advantages are related to each

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other. For example, the research and development of Apple in offering new products is based on
the customer requirements and thus they are being able to penetrate in the global markets.
Kumar and Pansari (2016) further stated the fact that marketing activities in current time
should be engaging enough for the customers in order to ensure the maximum utilization and
return. This is due to the reason that if the customers are also not engaged with the marketing
activities, then irrespective of the effective marketing strategies, the return cannot be ensured.
Moreover, it is also being stated by the authors, that in the current time, the taste and preference
pattern of the customers is getting changed in much rapid manner and higher level of
engagement with them will be beneficial in identifying these changes. The more will be the
engagement with the customers, the more will be the effectiveness in determining the different
needs of the global customers and design the value propositions accordingly. This will ensure the
gaining of competitive advantages for the business firms. In the case of Apple, the different
product portfolio is denoting the fact that they are initiating the development process according
to the different market needs. For instance, the sales of Iphone S and SE have been stopped in the
western and developed countries while they are the top earners for Apple in the developing
countries such as India (See-To & Ngai, 2018). This is denoting the different market scenarios in
different regions around the world.
Different marketing elements for gaining competitive advantages
Even though the majority of the authors have agreed in the fact that in the current time,
marketing activities and competitive advantages are related to each other, they mainly differ in
focusing the different marketing elements for gaining the competitive advantages. This is due to
the reason that different authors are leveraging on the different marketing elements for gaining

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competitive advantages by business entities. In the following sections, these elements will be
critically analyzed.
Sustainable strategy
There are few authors, who have stated that sustainability is the key approach of current
marketing activities in gaining competitive advantages. Arseculeratne and Yazdanifard (2014)
stated that initiation of the green marketing strategies can only be effective in gaining the
competitive advantages for the businesses. This is due to the reason that in the current time,
customers are more aware about the sustainable practices and environmental factors. The authors
have also stated that with the help of the green marketing, the business entities can gain goodwill
and positive word of mouth for the entities and this will ensure the long term business viability
for them. This is also a key difference being noted between the current and past marketing
activities as in the past, importance of green marketing was not considered. In the case of Apple,
they are also leveraging on their green and environmental friendly initiatives for gaining
goodwill in the market. For instance, the entire operations of Apple are based on clean energy
and they have also lowered their carbon footprint by about 35 percent in the last three years
(Lehman & Haslam, 2013). This is not having direct impacts on their product sales volume but
long term market position is getting favorable for them.
Promotional mediums and strategies
Apart from some authors stating about the importance of green and sustainable
marketing, it is also identified proper and ideal choice of promotional mediums and strategies
can also be effective enough. As per Bacik, Stefko and Gburova (2014), effective sets of
promotional mediums will be beneficial in reaching out to the target customers in more extensive

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manner. This is due to the reason that different marketing and promotional mediums are having
different level of penetration across the world and it is important for the business entities to
select the mediums accordingly. For instance, social and online media is having higher market
penetration in the developed and developing economies while the traditional and offline based
mediums are having higher penetration in the under developed markets. In addition, the authors
have also stated that choice of the mediums can also determine the preference pattern of the
customers as they affect the influence level of the customers. For example, in order to engage
with the customers, Apple majorly leverages on their social media platforms. This is due to the
reason that with the help of the social media mediums, two ways communication is getting
generated and feedback of the customers is gained by Apple (Zheludev, Smith & Aste, 2014).
Thus, it can be concluded that the more effective will be the promotional strategies, the more will
be the probability of customer engagement, which will further contribute in gaining competitive
advantages in the long term.
Value propositions
Gone are the days when the core product level only helps in creating value for the
customers. In the current time, there are number of added elements and augmented product levels
also contribute in creating value for the customers. According to Lee et al. (2016), designing the
products or services on the basis of market requirements will have long term benefits for the
business entities and it will also ensure the continuous flow of revenue to the organization. In the
current time, customers can be targeted by means of after sales services as well. Thus, as per the
authors, if the customers can be targeted on the basis of the added services and values, the
competitive advantages can be gained by targeting the extended customer segments. Moreover,
in the global market scenario, the standardized core product level might not fulfill the

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requirements of the customers and in this case, the added elements will help in gaining the
competitive advantages. In the case of Apple, the core product level of Iphone is calling and
texting, which is not being promoted but the added elements such as design and other aesthetic
values, quality and reliability is differentiated to create value for the customers. This can be
concluded that major focus of the marketing activities on the products will be beneficial in
gaining competitive advantages.
On the other hand, it is stated by Bowen, Baker and Powell (2015) that diversification is
also an important factor in the product elements of the marketing strategies. This is due to the
reason that in the current global business scenario, different customer segments are having
different expectations and requirements from a certain brand and in this case, offering same and
standardized products will not be an effective option. In this case, it is stated by the authors that
diversity in the product portfolio should be followed in accordance to the different requirements
of the customers. The more will be the product diversity, the more will be the effectiveness of
the businesses in catering to different needs of the global customers.
Pricing decisions
Pricing decisions can also be an effective option for marketing in penetrating in the
market. This is due to the reason that price will determine the extent to which the product or
service will be beneficial for the customers. In this case, it is stated by Hinterhuber and Liozu
(2017) that pricing strategy can be an effective way of gaining competitive advantages and will
also complement the holistic marketing process. For instance, with the help of the market
penetration pricing strategy, larger market segments can be targeted and sales volume for the
business will get increased. On the other hand, initiation of the premium pricing strategy will

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help the business entities in gaining the maximum return from the market and flow of capital in
the process will be the maximum. The authors have also pressed about the importance of
initiating the pricing strategy according to the market position of the product. For instance, Apple
is following premium pricing strategy, which is helping them in maintaining the premium
positioning in the market. This is also helping them to gaining the maximum value from the side
of the customers along with creating the exclusivity in the market.
Thus, it can be concluded that there are different marketing elements being stated by the
authors in targeting the global customers and each of the elements is effective in their own case.
Moreover, it is also identified that the core approach of marketing in the current time got
differentiated from what was defined in the recent past. This denotes the dynamic market
scenario in the current time and requirements for the change in the business activities and
strategies for the contemporary business entities. However, it should also be noted that there are
number of emerging issues that can affect the performance of the marketing abilities and thus the
generation of competitive advantages will also be affected. The following section will discuss
about these key issues that will affect the performance of the marketing abilities in the
international market.
Critical analysis of the major performance issues
One of the major challenges for the current marketers in managing their performance is
the different and diverse business conditions in different markets across the world. This refers to
the fact that different markets and countries are having different external business factors and it
is important for the marketers to align with these factors. It is stated by Nijkamp and Kourtit
(2013) that even though the green marketing process can be effective and fruitful in the current