Strategic Marketing Management
Marketing strategy is concerned with three elements - customers, competitors and internal corporate issues as illustrated in Figure 1.2. Strategic marketing management has three major phases: firstly, strategic analysis in order to answer the question where are we now?
This will include external analysis of customers, competitors and the macro environment and internal analysis of corporate capabilities; secondly formulation of strategy in terms of creating and evaluating options and thirdly implementation where the strategies are translated into action. The three stages are not mutually exclusive and are not necessarily linear. In fact it is expected that there will be some feedback and amendments as the process progresses.
Strategic marketing plans
A strategic marketing plan is the means by which the strategy is communicated within the organisation. The structure and content of a strategic marketing plan will vary considerable between organisations. However, normally the following components are included:
Current situation - external and internal analysis
Objective setting
Strategy formulation
Marketing programmes
Implementation issues
Control measures
Strategic Marketing Management
There is no one best format for a strategic marketing plan and organisations will develop their own frameworks that match the needs of their companies. Strategic marketing plans need to generate action and not just be filed away. They should also be sufficiently flexible to take into account the changing environment.
Activity 1.2
Read a copy of your own organisation's strategic marketing plan.
Give your opinion on whether the strategies outlined in it have been actioned.
Has the plan shown sufficient flexibility to take into account the changing environment.
If the answer to 3. is no, how could the plan have been improved?
Summary
In this unit we have seen that:
Organisations operate in a dynamic environment and therefore they have to take into consideration those external influences that will impact on their business. These influences are often referred to as drivers of change.
In market-oriented organisations it is likely that marketing will be the largest contributor to corporate strategy. Corporate strategy is concerned with what types of business the company as a whole should be in, i.e. the scope of the business. Marketing strategy is concerned with transforming corporate objectives into a competitive market position.
A strategic marketing plan is the vehicle by which the marketing strategy is communicated within the organisation. The structure and format of a strategic marketing plan will vary considerably between organisations. There is no one 'best' structure.
