Strategic Marketing Management: Kazkommertsbank Case Study Analysis

This report provides a comprehensive analysis of strategic marketing management, focusing on the case of Kazkommertsbank. It begins with an executive summary, table of contents, and an introduction highlighting the significance of strategic marketing. The report then offers an overview of Kazkommertsbank, its nature, and the purpose of strategic marketing within the company. It explores various marketing concepts, the processes involved in strategic marketing, and the development of SMART marketing objectives. The analysis includes PEST and Porter's Five Forces analyses, product life cycle, and Ansoff matrix, followed by an examination of the external and competitive environment, including competition, customer service, and supply-demand dynamics. An internal and stakeholder environment evaluation includes a SWOT analysis. The report also covers the development and evaluation of strategic options, Porter's generic strategies, market segmentation, targeting, brand positioning, and the marketing mix (7Ps). It further establishes the linkage between the product life cycle and the marketing mix, identifies critical success factors for implementing marketing strategies, and discusses resource organization and the monitoring of marketing strategy effectiveness. The report concludes with a summary of key findings and references.

Running head: STRATEGIC MARKETING MANAGEMENT
Strategic marketing management
Name of the student
Name of the university
Author note

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Executive Summary
The report throws light in understanding the importance of the strategic marketing approach
of organization Kazkommertsbank positively. With the assistance of external and internal
environment analysis, the strengths, opportunities as well as threats can be analysed that
helped in understanding the growth of the company in a successful manner. The marketing
mix along with the segmentation, targeting and positioning have been helpful for improving
the growth and effectiveness of company in an effective manner.

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Table of Contents
Introduction................................................................................................................................2
Overview of Kazkommertsbank............................................................................................2
Nature and purpose of strategic marketing in company.............................................................2
Analysis and application of different marketing concepts.........................................................3
Process involved in strategic marketing.....................................................................................3
Development of smart marketing objectives..............................................................................4
Pest analysis...........................................................................................................................4
Porter’s five forces analysis...................................................................................................6
Product life cycle....................................................................................................................7
Ansoff matrix.........................................................................................................................7
Analysis of external and competitive environment (competition, new constraints, importance
of customer service)...................................................................................................................8
Level of competition..............................................................................................................8
Supply to Demand Environment Shift...................................................................................8
Importance of customer service.............................................................................................9
Evaluation of internal and stakeholder environment.................................................................9
SWOT Analysis.....................................................................................................................9
Role of Stakeholders............................................................................................................10
Development of Various Options Available............................................................................10
Evaluation of various options available within constraints......................................................11
Porter’s Generic Strategies...................................................................................................11

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Selection of competitive strategic marketing strategies...........................................................11
Development of market segments, targeting and brand positioning........................................11
Significance of integrated marketing communication mix......................................................12
Marketing mix (7ps).................................................................................................................13
Establishment of linkage between product life cycle and dynamics of marketing mix...........14
Critical analysis factors of impacting successful implementation of marketing strategies.....14
Organising for resources during implementations...................................................................14
Monitoring the effectiveness of marketing strategies and qualifications.................................15
Conclusion................................................................................................................................15
References................................................................................................................................16

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Introduction
The report helps in analysing the significance of strategic marketing in the
organization that can prove to be helpful for managing various kinds of instances in an
appropriate manner. The main aim and purpose of the assignment is to analyse different
processes which are included in the strategic marketing for understanding the position of the
company in the competitive market. Through the help of the external along with the internal
environment analysis, the performance and the environment in which the organization is
operating can be identified. In addition, there will be critical assessment of segmentation,
targeting along with positioning from organizational context to understand the position of the
company in the environment. Lastly, marketing mix and the branding are required to be
demonstrated which will be strengthening the products and services delivered by the
company.
Overview of Kazkommertsbank
Kazkommertsbank is one of the largest providers of the banking services along with
the different other financial products to the different small along with medium sized
companies in the different sectors in the economy of Kazakh. The company was founded in
the year 1990 and it belongs to the finance and insurance industry wherein it is considered to
be the commercial banking business that primarily consists of the corporate banking, personal
banking along with debit or credit card services (Kazkommertsbank.com 2019). There has
been increase in revenue of the company in last few years which is around 19,023 million kzt
till the year 2018 and it proves that the company is performing well and it will be suitable for
the growth of the company.

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Nature and purpose of strategic marketing in company
As commented by West, Ford and Ibrahim (2015), the marketing strategy helps in
providing the organizations an edge over the other competitors which are present in the
competitive environment. The strategy is helpful in developing different goods as well as
services for making optimum utilisation of the different resources as to provide the sales
message to the target audiences present in the market. Strategic marketing is helpful for
identification of strengths of the company that assists them in differentiating their products
and services from competitors (Vellas 2016). There is strong interrelationship between
strategic marketing and business company named Kazkommertsbank as through the internal
and external analysis of environment, it has allowed the financial services provider company
to differentiate themselves from other companies.
Analysis and application of different marketing concepts
The mission of Kazkommertsbank is to provide the different financial services to the
customers at an international standard along with provide local financial kind of expertise to
the different foreign partners. The company wants to enhance wealth as well as fulfillment of
the life of the different customers (Tomczak, Reinecke and Kuss 2017).
On the other hand, vision of Kazkommertsbank is to become a respected as well as
reputed financial service provider company in the entire world and spread their presence
effectively.
the ethical values which are followed by Kazkommertsbank includes helping the
individuals to follow forward thinking along with innovative approach which will be
adhering to the principles of the good banking in a successful manner (Spanjol et al. 2015).
The different corporate social responsibility practices which are included by
Kazkommertsbank is their commitment to the financial education of the students along with

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equipping themselves with the technologies which are environment friendly (Sams et al.
2016).
Process involved in strategic marketing
In the strategic type of marketing aspects, there are five steps which are required to be
followed which include the identifying objectives along with determining the mission and
vision of the company. There will be external and internal business environment analysis
which will be successful in devising strategy that will be effective in improving the business
operations. Lastly, there will be implementation of strategy for putting the plan into action is
necessary that will be enhancing the efficiency in an appropriate manner (Rudd, Jaakkolaand
Marshall 2016). The strategy of marketing will be allowing the company for concentrating
the limited resources in the greater opportunities that will be effective in improving the
business operations. In case of Kazkommertsbank, strategic marketing will be helpful in
supporting next and other departments which will be efficient in managing operations.
Development of smart marketing objectives
The external environment and the situation analysis are required to be analyzed as it
will be helpful for making the organization understand under which kind of environment,
they are operating their business. In this section, the pest, porter’s five forces analysis,
product life cycle and the Ansoff matrix will be analyzed to understand the situation of the
environment wherein it is performing their business.
 To maximise the return on capital for spreading their presence in an efficient manner
 To create strong customer relationship that is given due to importance (Postand
Leavell 2019)
 To work for the upliftment of the women class of Kazakhstan

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Pest analysis
Political There is high level of political stability
which will be playing a vital role in survival
of the Kazkommertsbank in the respective
country
However, the high level of taxation would
demotivate the companies like
kazkommertsbank from maximising their
profits (Miles et al. 2015)
Economic The GDP of the country is high and it is one
of the major advantages for
kazkommertsbank to gain competitive
advantage in the market (McDONALD
2016)
However, there is high level of
unemployment in country, therefore, the
demand for the job is less than supply and
due to the same, the people are willing to
work for lower wage

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Social There are few differences in the educational
background among marketers as well as
target market and due to the same, the
kazkommertsbank needs to be careful
regarding not losing their target market’s
attention (Magalhãesand Pereira 2019)
Technological There is advancement of technology in the
different sectors such as in banking sector as
well. However, kazkommertsbank does not
apply such technological innovation which
can be of great disadvantage for the
company
Porter’s five forces analysis
Competitive rivalry It is high in nature as banking industry has
become competitive as the respective
financial services industry has been in the
society for centuries. There are different
other competitors such as commonwealth
bank in Australia, which impacts the
effectiveness of the company negatively
(Liebl 2015)
Threat of new entrants It is low as there are high level of entry
barriers for the new companies and it is not

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at all easy in establishing private banks in
limiting presence of foreign banks in the
respective country (Hollebeek, Conduitand
Brodie 2016)
Bargaining power of suppliers It is low as the suppliers who are in large
numbers make the switching cost of
kazkommertsbank is low and these cannot
influence the company as well.
Bargaining power of buyers It is high as there are different kinds of
banking institutions which are present in the
country which can be providing different
options to the customers and it can be
creating high level of ineffectiveness in the
banking industry (Felix, Rauschnabel and
Hinsch 2017)
Threat of substitutes It is medium in nature as there are different
banking institutions beside the financial
services company which can be impacting
the performance of the company negatively
to a certain extent (Hajli 2015)

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Product life cycle
In the case of product life cycle, the Kazkommertsbank is in the growth stage wherein
there can be different kinds of new products which can be introduced which can be satisfying
the entire market. Through introduction of different debit or credit cards, the distribution and
sales will be increasing and so does the competition. The profits increase while
manufacturing and the entire promotion costs gain economies of scale. It will be capable of
gaining high level of acceptance among the different customers (David, David and David
2017).
Ansoff’s matrix
Based on the analysis of Ansoff’s matrix, the Kazkommertsbank’s main intensive
strategy which is followed is market penetration. The growth strategy mainly aims in selling
different kinds of financial services to the current markets of the company. In addition, the
respective company mainly relies on the market penetration than diversifying the different
product portfolio outside the financial service industry (David and David 2017). For instance-
the cost leadership strategy helps in ensuring the competitive kind of advantage as well as
attractiveness of the financial services of organization which will be leading to the success of
the company.
Analysis of external and competitive environment (competition, new constraints,
importance of customer service)
Level of competition
Name of competitors Market share and level of Comments

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revenue
Commonwealth bank 2,600.5 crores AUD and
there is more than 45% of
the market share which is
owned by them
From the analysis, it can be
seen that commonwealth
bank has been capable of
improving the market share
and gain competitiveness in
the market as well (Chernev
2018)
Westpac bank 40% of the market share in
the economy and the
revenue 2,200 crores AUD
In case of Westpac bank, the
main aspect which has been
learnt is the fact that the
company is trying hard to
achieve the strong presence
in market and improve their
business operations
Supply to Demand Environment Shift
In the entire banking industry, it can be seen that at Kazakhstan, it can be seen that as
there is high level of gap in the education of the different people, therefore, the demand is
less than the supply in the environment and it can be impacting their effectiveness in a
negative manner. In such scenario, the technological advancement plays a crucial role in
managing the growth prospects of the company in a suitable manner.