Importance of strategic marketing
Strategic marketing is a key process in the successful business organization. It serves as a key roadmap for the business as a whole. The process enables promotion of the business, the attraction of the right kind of clients, and correct resource allocation as the firm’s reputation is safeguarded (Kohli & Jaworski, 1990). Use of effective strategies in marketing, firms will be able to develop a business-wide, focused approach to marketing operations. Primarily, the most important factor in strategic marketing is connected to the identification of opportunities of growth by carrying out an analysis such as SWOT analysis (Day, Shocker & Srivastava, 1979). Once a firm identifies the weaknesses, strengths, threats, and opportunities of the strategic marketing scheme, the managers are able to seize the opportunities available (Porter, 1989). Also, the managers are able to identify the most appropriate course of action to mitigate the available threats.
Through strategic marketing, the management team gets more informed on the trending marketing operations and they acquire new ideas to develop the company’s brand (Sheth & Frazier, 1982). Additionally, they are able to rate the company’s brand and identify the areas where they need to develop confidence and trust in the brand (Kohli, & Jaworski, 1990). Throughout the process of strategic marketing, the company’s brand is a crucial asset of the organization is protected and enhanced. Ultimately, there is a need to implement the effective marketing strategies in order to have effective marketing operations.
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Forces that help shape marketing
According to the study conducted by Porter (1989), competitive forces play an important role in shaping marketing strategy. The author asserts that the effect is seen as the importance of designing marketing strategy in the first place is to cope with competition. The competitors in a market include suppliers, customers, substitute products, and potential entrants. All the competitors may be more or less active depending on the company. The competitors take part in the competitive force that helps in shaping marketing as business owners need to consider all of them in making marketing decisions (Kohli & Jaworski, 1990). If the competition forces are weak, the opportunity for strong strategic marketing is strong as the pressures are minimal on the marketers. Other forces that shape marketing including the external forces associated with the satisfaction of customers’ needs and wants (Day, Shocker & Srivastava, 1979). The consumers pressure companies to produce the products desired as the managers wish to win their trust as well as building brand name.
Knowledge of the underlying sources that shape marketing such as the bargaining power of customers and suppliers, threats of substitutes, and the challenge of new entrants provide a baseline for the action of strategic agenda (Porter, 1989). On the other hand, the forces highlight the weaknesses and strengths of a company as well as animating the position of a firm in its industry. Additionally, the forces help in identification of the areas where strategic changes may result in the greatest payoff (Parasuraman, Zeithaml, & Berry, 1985). Further, the forces enable the management team to recognize the areas that the industry promises to yield the greatest significance as a threat or an opportunity. Consequently, the strongest forces of competition are major determinants of the profitability of a company and hence they are of great importance in the formulation of marketing strategy.
Day, G. S., Shocker, A. D., & Srivastava, R. K. (1979). Customer-oriented approaches to identifying product-markets. The journal of marketing, 8-19.
Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: the construct, research propositions, and managerial implications. The Journal of Marketing, 1-18.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. the Journal of Marketing, 41-50.
Porter, M. E. (1989). How competitive forces shape strategy. In Readings in strategic management (pp. 133-143). Palgrave, London.
Sheth, J. N., & Frazier, G. L. (1982). A model of strategy mix choice for planned social change. The journal of marketing, 15-26.