Strategic marketing plays a significant role in today’s competitive environment. Strategic marketing can help to distinguish the company from its competitors. Proper planning and implementation of strategy can provide advantage over other companies. According to Johnson & Whittington (2008), strategy is a long term planning of the company, think of the near of distant future where the company wants to be and what it wants to achieve. Its direction and scope helps exploit companies’ available resources in the best possible manner helping it to achieve advantage over others and fulfil stakeholders’ expectation. According to Henderson (sited at Marketing news 1982) strategy works as a “system” which looks after internal activities of the organisation in order to attain good external performance of the company. From this it can be said that to achieve long term Goals Company uses strategic planning. It can also help company to gain edge over other in the long run. Marketing strategy is an attempt to develop effective solutions for the changes that occur in market. It identifies segments of the market, develops it and places product right in the market which is targeted (Hooley, saunders, 2008). According to Webster “The successful organization of the future will be customer-focused, not product or technology focused, supported by market information competence that links the voice of the customer to all the firms value delivery process” (Hooley, saunders, 2008). Saunders and Webster have different view about strategic marketing where Saunder stresses more on developing solutions to changes happening in market by identifying segments and placing product.
Importance of marketing strategies
According to Henderson(cited at Marketing news 1982) there is a lot of difference between an organisation which is making good profit and an organisation which is running in loss and also an organisation which is try to survive. Every organisation has limited resources like Human resource, finance and raw material and to achieve any of the three stages and organisation has to manage its resources differently. To attain the finest result an organisation has to plan its use of resources well and in this strategy place a significant role. He future stress on the point that strategy is more important in the long term and it is the only thing that makes company different from its compititors. It is important to know competitors well as this can help in creating distinct image then other competitors by selecting right combination of resources at right time giving competitive advantage.Strategy play an important role in organisations success specially when there is healthy competition and all of them are targeting same group of customers .
Porter has made different level of strategies in such a fashion that it can be used by any organisation irrespective of size and type of business conducted. Porters strategy can be used solely or can be clubbed with two or more to tackle the situation and gain advantage over other competitors. It can used in a particular industry or for national as whole.
Porter’s generic strategies
Source: M.E. Porter, The competitive Advantage of nations, 1990
Low cost strategy is type of strategy in which a firm gains advantage over other firms by efficiently developing, distributing products or services then other firms. In Differentiation strategy quality of the product or services or the approach is taken into consideration instead of cost. The company tries to render better quality of product or services or it may stress more on customer service. Competitive scope is in terms of area that company is covering. It can either target the whole market by mass marketing or select a very small and niche market for its product (Carpenter, Bauer and Erdogan 2010) Cost leadership
Cost leadership strategy is all about making products with lower cost but at the...