The Process Involved in Strategic Management - Essay Example

Strategic Marketing xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course Instructor xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date Submitted Section one It is quite evidence as companies strives to ensure it future growth and profitability, there are constantly shifting on their marketing organizations to accelerate their attainment of their goals and objectives. In order to get a clear view of roles of strategic management, it is very essential to first understand what it means. John (2000) asserts that, strategic marketing is defined as the process in which decisions are yielded on how organizations best an organization can compete widely in the various market positions. It is further base its definition from totaling on the marketing process. It is very obvious that strategic management serves major roles in all organizations. According to John (2000), the main role of strategic management in a company is that it upholds all organizational tasks in determining interests, needs and wants of various target groups as a way of ensuring that it is more efficient than its key competitors enhancing customer satisfaction. Further, strategic management ensures that direction is at all business level in a manner which lower level plans work in executing plans that are of higher level. The process involved in strategic management takes place in three vital processes namely panning, implementation and control. Although planning is considered as the main process, each of the named processes is very essential in developing organizational success (John 2000). Basing on the panning process, this is considered as the most crucial stage in any business strategic management. This stage mainly entails developing SWOT analysis of an organization. This process assists organizations in determining its current situation in relation to various market conditions. In determining a firm’s strengths, weaknesses, opportunity and threats always help an organization in formulating strategy that will work on reducing the risks and maximizing on their market opportunities (Lantos, 2001). According to Lantos (2001), the second process of strategic management is implementation whose main mandate is utilizing the market product approach which highly involves objective and goal setting. It initial step is clearly understanding each and every consumer want and need so as to come up with a concrete market research. Here, the strategic management point of view highly entails identification of critical attitudes and issues relating them to the kind of product on offer. Finally, after collected data the data is used in control process where the development of objectives and goals. Here, the use of business portfolio will be good in analyzing the profitability in introducing new product (Lantos 2001). It is quite evidence that there is great connection between strategic marketing and corporate governance. The defined link creates an opportunity whereby marketing is made relevant for top management, shareholders and customers. Further the link between these two fields encompasses all organizational functions, departments and functions ensuring that the whole organizational work is widely imperative to its success (Lantos 2001). From definition of strategic management, all desired goals are attained through exchanged linking with corporate governance through enhancing and maintaining positive relationship between the two. This always ensures that a network is related between all members within an organization. Section two According to Weitz & Kevin (2000), it is quite identifiable that in organization, individuals responsible for strategic management often employ some definable models that are usually essential in analyzing various marketing decisions. Firstly, an organization can decide on embarking on the 3Cs model of strategic marketing which is defined as company, competitors and customers. This model always ensures that an organization maintain a close relationship between company image and customers bearing in mind of their competitors. Further this model can be used to give a broad understanding of a firm strategic environment. The second model involves the 4Ps namely; price, product, pace and promotion. Here, a market plan is used in pursuit of defining strategy thus creating a prioritization of growth in opportunities such as market trends, understanding segment dynamic changes and getting to know business challenges. It is evident that in the field of marketing, positioning is considered as that process in which marketers work in creating a reputable image of the proposed target market for its defined product and brand. The link between strategic positioning and marketing tactics serves an important role in the whole organizational marketing process. These two fields’ works in ensuring that the aggregate position possessed by market has on the company product and brand is in relation to the aggregate perception being defined by its various competitors (Weitz & Kevin 2000). Further, the link ensures that a focus is created in such a way that there will be formulation of stipulated dynamic strategies so that the organization is able to sustain its profitability even in the current competitive global markets. It is important to note that strategic positioning and marketing tactics should be market oriented and customer insights so as to create a descriptive competitive advantage which are considered as key requirements of strategy formulation. Research indicate that organizational competitive marketing strategy (CMS) has acquired relationship marketing (RM) as one of the major functionality in the enhancement of business performance. There are several merits linked to relationship marketing in any given strategic marketing strategy. For instance, RM defines the enhancement, modification, maintenance, establishment and termination of customer as a way of creating values for customer. Weitz & Kevin (2000) assert that, the main descriptive advantage of relationship marketing is ensures that there is an establishment of long term market strategy that usually lead to greater financial performance. It is quite observable that formulating distinctive marketing strategies entails the use of relationship marketing between market mix and market conditions. Further, relationship marketing assists in acting as a main moderator for the rations of positional advantages that widely impacts of marketing mix formulation. Finally, the link of relationship marketing in any given strategic marketing strategy merit is that it builds on personnel partnering thus addressing customer needs more effectively due to the already developed trust between them (Weitz & Kevin, 2000). Section 3 To begin with, the effects of the past marketing efforts should be quantified by conducting marketing analysis on an annual basis. This is an important tool in the decision making process for the following year since it gives a clear indication of the impacts of the marketing elements on profitability and growth. Collection and analysis of such data is used to determine the elements of the marketing strategy that were able to produce good results and those that underperformed hence review and reallocation of the marketing mix in order to accelerate growth. Secondly, the marketer can examine and assess competitive performance and its effectiveness which is important in development of a deep insight about competition and it enable the company to incorporate a plan that will help realize a competitive advantage. Thirdly, it is important that each element of the marketing activity is accounted for individually. This is achieved by setting goals for each activity and rewarding outcomes to each of them (Chung‐Hoon & Young‐Gul 2003). The first step in planning of how to apply the marketing strategy will be to analyze the market segment. This basically involves the three stages of strategic marketing plan which include segmenting of the market demographically, geographically and psycographically, profiling of the market segment in terms of market share, revenue and profitability potentials. The third stage entails developing a marketing strategy for the market segment. After making this analysis, it is important to determine the customer interest and the purchasing process. Such documents like the situational analysis can be drafted to give the present condition of the company with regard to competition, problems and opportunities, legal and social environments, technological considerations and key success factors. The marketing objectives are drawn indicating the future prospects of the company with regard to product development, target profits and target market. It is also important to determine the marketing strategies that will achieve these objectives. They include promotion, pricing, distribution and product strategy. Objectives To achieve a market dominance with a share of above 50% To reach as many customers as possible through customer awareness of the products and services offered in the target market. To develop better products that enhances customer satisfaction by use of latest technology. To increase the level of profits margin, the rates of returns on investments. To focus on key activities that ensures optimum utilization of resources. To open up branch factories and business locations aimed at targeting a great deal of customers. To be the leading in the quality of customer services offered. To gain access to the international market by way of intense advertisement especially through internet and social networks. To restructure the organization structure and redefine the promotion policies which will ensure that there is optimum use of skills and knowledge for increased productivity. To boost the advertising strategy by venturing into recent advertising methods that utilizes technology. To invest in research programs aimed at identification of potential markets and development of highly competitive products. Section 4 External political/legal factors such as laws and regulations cover many aspects of the company. For instance regulation bodies the trade and industry department develop policies regarding how products are sold, produces and promoted. Another environmental aspect is economic factors. This is to large extent a government policy that affects customer spending capacity. Socio-cultural trends determine the age group that most appropriate to target (Vrontis & Pavlou 2008). Environmental conditions like climate have direct effect on demand of a product. The level and nature of competition influences the company decision on establishing a competitive strategy that will enhance profitability and sustainability. Customer taste and preference is also a vital issue to put into consideration. By adapting to the needs of the consumers the company is able to maintain its marketing concept and orientation. Technological development has accelerated the processes of international travel and communication which in turn has affected the rate in which trends and fashions are exchanged between countries. Subsequently there is an increase in demand and companies have been forced to come up with more appealing methods of selling. The two factors considered in looking at the internal issues (strength and weaknesses) affecting a company are resources and capabilities. The first step in identification of resources in a company is determination of both tangible and intangible human resources. Tangible resources are the physical and financial assets valued and identified in the financial records. Intangible ones are invisible but are very important especially in obtaining a competitive advantage. They include reputation assets like brand names and the technological assets. Human resources/capital can be determined from the human resource office. They offer productive services to the company in terms of reasoning, skills, knowledge and in decision making processes. Organizational capabilities refer to the ability of a company to undertake a particular task or activity that will increase its productivity. Functional areas that should be considered in evaluating strengths and weaknesses with regard to capabilities are information management; how effective and comprehensive it is, corporate; effectiveness in coordinating and motivating business units and finally research and development levels in the company that enhance innovation of new products and brand management. Potential key emerging themes in a marketing strategy can be divided into macro, meso and micro environmental themes. They include political, economic, social, technological, environmental, structure and trends of market, competition, new market grounds, consumer ethical and power of consumption, contemporary business strategies and marketing professional. Since regulations and restrictions regulate the content of promotion, the company may need to change its promotional activities. Changes in demographic trends may call for the company innovation in development, designing, promotion and packaging of products. To minimize harmful and unnecessary wastes from negative impacts of environmental changes, it is important that the company works in collaboration environmental organizations such as EDF. To deal with competition, the company will need a standard and operational process that will reduce cost of products, use of distribution networks efficiently, product innovation and low cost labor (Ruff, 2009). Reflective learning statement It is quite evidence that the themes found within this unit have made me realized on the importance of strategic marketing within any organization. The acquired knowledge has proven to be of significance in the sense that it will enable me in my career choice both on a personal view and that of an organization. One of my main strength in this unit is that am able to relate my knowledge to what is currently taking place in this global economy. My weakest point is that I am finding it difficult to widely discuss various topics especially when linking different sections of the unit. In general, I can state that it was a good idea that I decided to acquire knowledge on this unit. Work cited: John, F. 2000. ‘Beyond market orientation: When customers and suppliers disagree’. Journal of the Academy of Marketing Science, 28 (1), 109-119. Lantos, G. 2001. “The boundaries of strategic corporate social responsibility”. The Journal of Consumer Marketing 18(7), pp. 595-639 Weitz, B & Kevin, B. 2000. ‘Personal selling and sales management: A relationship marketing perspective’. Journal of the Academy of Marketing Science, 27(Spring), 241-254. Vrontis, D. and Pavlou, P. (2008). “The External Environment and its Effect on Strategic Marketing Planning: A Case Study for McDonald’s”, Journal of International Business and Entrepreneurship Development, Vol. 3, No. 4, pp. 289-307 (ISSN: 1549-9324-Inderscience). Chung‐Hoon, P. and Young‐Gul, K. (2003) Identifying key factors affecting consumer purchase behavior in an online shopping context. International Journal of Retail & Distribution Management, Vol31(1), pp16‐29. Ruff, F. (2009) Corporate foresight: integrating the future business environment into innovation and strategy. International Journal of Technology Management, Vol3(4), pp278‐295. Read More