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Strategic Marketing is the way a firm effectively differentiates itself from its competitors by capitalising on its strengths (both current and potential) to provide consistently better value to customers than its competitors. In principle its that simple, but it means a lot more than getting creative with the marketing mix. Armed with a thorough understanding of the firms capabilities and aspirations, the customer market and the competitive landscape, the Goal of Strategic Marketing (and the job of the strategic marketer) is to maximise a firms positive differentiation over competitors in the eyes of its target market. It does this by answering 3 key questions; where, how and when should the business compete. In understanding this, its no surprise that a Strategic Marketing Plan will often lay a framework for fundamental change in the way a firm works and how it engages its markets. Business-to-Business (B2B) Marketing, like any area of management, has both strategic and operational components. While operational marketing (marketing management) is concerned with developing a suitable marketing mix to realise a set of defined business goals, Strategic Marketing on the other hand is concerned with defining what the business needs to be and become to consistently beat the competitors by delivering consistently better value. Simply put, the Role of Strategic Marketing is to decide: 1. Which markets to compete in (where to compete). 2. What the basis of the firms competitive advantage is going to be (how to compete), and 3. When and how the firm will enter each market (when to compete) Its only when these three questions have been answered can the marketing planning begin.
PROCESS:
Strategic marketing is a planning process that seeks to establish a clear direction and unified purpose for all marketing efforts. Its conclusions are documented in a marketing plan that is regularly updated. The five steps in strategic marketing are: identifying a mission; analyzing the situation; setting objectives; developing a marketing strategy; and planning for evaluation.
Mission
The first step in strategic marketing is to articulate the reason why the enterprise exists and how it can benefit target consumers over the long term. In particular, this mission statement is intended to anticipate the future and describe an ongoing role for the organization's product, service or expertise. For example, the mission of an airline might be to provide continuing
innovation in global transportation. A hospital could state a mission to take the lead in improving public health and education.
Situation Analysis
Organizations conduct a situation analysis, also known as a SWOT, to evaluate and prioritize their strengths, weaknesses, opportunities and threats. This second step in the strategic marketing process helps managers understand the resources they can build on and the challenges they face. Strengths and weaknesses are internal factors, under the firm's control. For example, a good image in the fashion press would be a key strength for a dress manufacturer, while a poor relationship with clothing retailers would be a weakness. Opportunities and threats arise from the external environment, like a strong economy or new payroll tax.
Objectives
The third step in strategic marketing is to set marketing objectives. These are clear, measurable goals that give decisionmakers a basis for making choices and assessing progress. Objectives are typically expressed in terms of one or more quantitative targets like revenue, profit, sales or market share. Importantly, each objective must be achievable within a fixed period of time. For example, aiming for a five-percent increase in profits might be realistic within a year, but probably not within one quarter.
To answer these questions, an organization uses the strategic marketing process, whereby an organization allocates its marketing mix resources to reach its target markets. This process is divided into three phases: planning, implementation, and evaluation.
The strategic marketing process has three vital phases: planning, implementation, and evaluation. The figure also shows where these phases are discussed in the text.
process, involves carrying out the marketing plan that emerges from the planning phase. If the firm cannot put the marketing plan into effectin the implementation phasethe planning phase was a waste of time. There are four components of the implementation phase: (1) obtaining resources, (2) designing the marketing organization, (3) developing planning schedules, and (4) actually executing the marketing program designed in the planning phase. Kodak provides a case example. Obtaining ResourcesIn 2003, Kodak announced a bold plan to reenergize the film marketer for the new age of digital cameras and prints. Kodak needed huge sums of cash to implement the plan. So by early 2009, it had sold or transformed several of its SBUs that provided over $300 billion to develop and market new products, such as the exciting Zi6 pocket video camera, which takes HD quality videos that can be uploaded to YouTube.
Designing the Marketing OrganizationA marketing program needs a marketing organization to implement it. T he organization chart of a typical manufacturing firm, giving some details of the marketing departments structure. Four managers of marketing activities are shown to report to the vice president of marketing. Several regional sales managers and an international sales manager may report to the manager of sales. The product or brand managers and their subordinates help plan, implement, and evaluate the marketing plans for their offerings. However, the entire marketing organization is responsible for converting these marketing plans to reality as part of the corporate marketing team. Developing Planning SchedulesTo implement marketing plans, members of the marketing
department hold meetings to identify the tasks that need to be done, the time to allocate to each one, the people responsible, and the deadlines for their accomplishment. In most cases, each team member works on different parts of the plan.
Executing the Marketing ProgramMarketing plans are meaningless pieces of paper without
effective execution of those plans. This effective execution requires attention to detail for both marketing strategies and marketing tactics. A marketing strategy is the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it. The term implies both the end sought (target market) and the means to achieve it (marketing program). At this marketing strategy level, Kodak will seek to increase sales of digital cameras, ink-jet printers, and digital picture frames. To implement a marketing program successfully, hundreds of detailed decisions are often required. These decisions, called marketing tactics, are detailed day-to-day operational decisions essential to the overall success of marketing strategies. At Kodak, writing ads and setting prices for its new lines of digital cameras are examples of marketing tactics.
deviations and (2) act on these deviationscorrecting negative deviations and exploiting positive ones.