Strategic Planning in Marketing
The purpose of the strategic planning is to find ways in which the company can best use its strengths to take advantage of the opportunities in the environment. For long run survival and growth, companywide strategic planning is done which involves defining a company’s mission, setting companies goals and objectives, designing the business portfolio, planning other functional strategies. Marketing Strategies and programs operate within the broader strategic plans of the company. Guided by the company strategic planning, the marketers manage the marketing system. The management process consists of:- Analyzing: Provides review of the company present situation. Planning: Setting of the goals and strategies and tactics to reach the objectives. Implementing: Actual operation of the strategies to reach the goal Performance Evaluation: Evaluation of performance in light of organizational and marketing goals. So, in this way the marketing department aligns its goals with the organizational goals and by developing partnering relationship, works closely with others inside and outside the firm to form a competitive superior value delivery network to serve customers.
Marketing's Role in Strategic Planning
Marketing plays a key role in the company's strategic planning in several ways.
Marketing provides a guiding philosophy company strategy should revolve around serving the needs of important consumer groups.
marketing provides inputs to strategic planners by helping to identify attractive market opportunities and by assessing the firm's potential to take advantage of them.
within individual business units, marketing designs strategies for reaching the unit's objectives.
Strategic Marketing Planning
Strategic Planning is the managerial process of matching an organization’s resources with its marketing opportunities. Strategic Marketing Planning is the process of finding the best marketing strategy that helps in achieving marketing goals given a company’s situations, opportunities, objectives and resources. The strategic marketing planning process has three stages:
Market Segmentation: Division of market into meaningful groups who have distinct needs, characteristics, or behaviour and who may require separate marketing mixes. Consumers can be segmented on the bases of:
The company identifies different ways to segment the market and develops profiles of the resulting market segments. A market segment is a group of people who respond in a similar manner to a set of marketing efforts. 2.
Target Marketing: The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. It evaluates on:
Market share potential
The company then decides to enter the segments in which it can offer superior value and gain advantage over competitors. A target market is a group of buyers sharing common needs or characteristics that the company decides to serve. 3.
Market Positioning: Market positioning is arranging for a product to occupy a distinctive, clear place relative to competing products in consumers’ minds. The marketers want to build a unique position for their product. That begins wit differentiating the marketing offer that gives superior value. Once decided, the marketers take steps to deliver and communicate that position to target market. Example: Shopper's Stop Ltd. (Shopper's Stop) unveiled its new logo as a part of its rebranding strategy. The chain undertook the rebranding exercise in a bid to reposition itself as a 'bridge to luxury' store as opposed to its earlier image of a premium retailer. After analyzing market segments, customer interests, and the purchase process, it's time to create the strategic marketing plan. The strategic marketing plan document usually includes:
Situational Analysis is the analysis of the...
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