It will also be assessed that what sort of marketing strategies can be ore useful for this type of business and how it can be implemented. This report also identifies the importance and applications of SOOT and PEST analysis. After getting the in depth know how about the strategic marketing at the end there will be few suggestions for the selected organization in order to grow and get high share in the market over the competitors.
Definition of Strategic Marketing: Strategic marketing is a process in which we Identify various sustainable competitive advantages & plan to ascertain a clear direction and unified purpose for all arresting efforts In order to widen the markets It serves or plan to serve by assailing resources to capitalize those advantages. (Porter M. 1981). 1. 1 Role of Strategic Marketing: Strategic marketing consists of selling your product in such a way that you achieve a goal. Goals can include sales growth, revenues generation, and large share in market, segmenting the market and position the product in the marketplace.
The department of strategic marketing develops the plan to meet the organizational aims and large amount of market growth in the industry. It helps to position the brand or particular reduce in the mind of customers. It's a very wide field of management that is vital for company's success. (Wilson R. And Gilligan, P. 2005) Strategic marketing is a big tool to take advantage over the rivals' existing In the market and promote the business In particular situation after analyzing the micro and macro environment of the business. 1. Formulation of marketing strategy: Any organization which Intends to sell a product or service should have a solid market plan to & methods to attain the set targets. It becomes a major target or objective of any business owner to develop a comprehensive market plan to promote heir service or goods. Marketing strategy should be developed in a chronological manner, following entire process & steps in order to implement that strategy for future success & achievement. (Berry T. 2011). Five Steps to Create a Marketing Plan: Step One: Look inward.
We should consider our business or company Just like an individual with its own personality traits & sole Identity. By keeping sole identity of our company & business in mind, complete Independent lists of Strengths, weaknesses & goals should be drafted & Jotted down without ignoring or exaggerating a single point. Once all the ajar strengths, weaknesses & goals have been listed down, prioritize points must be picked up from the list, Highly Important points must be assigned priority In a task list & less important points should be kicked off.
Once this entire step has been for heading in a right direction. All this also invites contribution from your business managers as well. (Berry T. 2011) Step Two: Look outward. Once you are done with looking inward then comes a time to have a close eye on opportunities and threat your business or company might be facing in the competitive market. Consider these challenges as external because you cannot intro them at your own directly, but can predict & make a plan to reduce their aftermaths on your business.
Opportunities may comprise of new markets, products, customer base, suitable environment and competitive advantage that boost up your business. Whereas, threats include increasing competition, inflating production cost, technological interventions, etc. While looking at the external or outward situation you should also come up with a detailed list of people and organizations who are prospective or either served as an ideal buyers as well as ideal target market. While aging a marketing plan every new thing should be taken as a unique persona, I. E. Ornamented discovering email or a college student getting his or her first credit card. Such persona's may be ideal target customers to be tapped in order to make them future buyer of your products or services. The best way to feel their needs & feasible mode of communication for them is to put our own self in their shoes and develop a communication plan in order to make it more effective & useful. Step Three: Focus on strategy. Once you are done with inward & outward overhaul of business situation, a time to UT both lists together comes in order to define your business identity & target market.
In terms of your business offerings Just consider those points which are competitive to your strategic plan & drop off the remaining points. For example, a restaurant business focused on healthy business, organic & fine dining would probably cater to people more in tune with green trends and with higher than average disposable income. So, it might rule out people who prefer eating fast food like hamburgers & pizza, and who look for bargains and this result in strategy. Narrow down your entire focus on the points which are aligned with your business identity & strategy in the market.
Step Four: Set measurable steps. After making lists of possible strengths, weaknesses, opportunities, threats, and developing a strategy to attract customers with efficient communication strategy get down to the details that are tangible and measurable. Your marketing strategy should be measurable in such a quantitative manner that includes monthly review, tracking and measurement, sales forecasts, expense budgets and non-monetary metrics for tracking progress. These can include leads, presentations, phone calls, links, blob posts, page views, conversion rates, proposals and trips, among others.
Match important tasks to people on your team and hold them accountable for their successes and failures. Step Five: Review often and revise. Same like we keep on revising & evolving our business plan, marketing plan should also be kept under a constant process of evolution & revision as per market requirements & competitors plans and also to come up with a well connected & linked business & market plan. This process of review & revision will make you feel hat your business is working better as per changing conditions. 1. Corporate strategy and strategic marketing relationship: A well defined marketing strategy that accomplishment of corporate strategy & targets. Business or organizations which are fragile in strategic formulation & linking their market plan with corporate strategy normally faces critical setbacks in this competitive market for selling products or services. (Bezel et al 1987) Corporate strategy is more often about overall profitability and company's mission and vision's objectives attainment while arresting strategy try to achieve its goals and objective to give support corporate strategies.
Any business lacking a strategic marketing plan in line with corporate strategy, hardly survive for a longer span in any competitive market For example KEF corporate strategy was to expand its business all around the world to gain maximum market share and growth through expansion. KEF marketing manager had developed penetration strategy with the slogan of 'go globally, act local'. KEF adapted strategy to position itself as a local company, not an overseas and achieved its goals. 2. 1
Importance of different models in strategic marketing: Strategic marketing models are very useful tool to analyze the company's situation and formulate the marketing strategies. Special models and tools used to developed the marketing strategies include the following: 1. PEST analysis 2. SOOT analysts 3. BCC manta 4. Anions Matrix 5. Business portfolio analysis 6. Porter's model for industry analysis. 7. Product life cycle These strategic marketing development models are related but distinctive. These can be used separately or in combination as company's requirements.
In this report we ill describe following two models one is Porter's five forces and Product life cycle analysis. 1. Potter's Model for Industry Analysis: There are various tools which are used to formulate strategy and the best known tool for strategy formulation is the model created by Michael E. Porter, a world known strategic management professional. Porter's model comprehensively outlines & describes the major forces that determine competitiveness within an industry and elaborates how those forces are related. This model also gives a guideline on how to develop effective & efficient organizational strategies.
Marketing managers must be proactive with respect to these forces with in an industry that helps in knowing the organization's level of competitiveness within that industry. According to this model, competitiveness within an industry is determined by the following factors: 1 . Threat of new entrants within the Industry 2. Substitute Products or Services - for goods or services that the companies within the industry produce/provide. 3. Supplier's ability to control issues like costs of material/ inputs 4. Buyer ability or power of bargaining 5.
Competition level among the companies in the industry. According to the Porter's five forces model, buyers, substitutes of goods or services, supplier and prospective new companies within an Industry all contribute to the intensity or competition among the firms. For porter's five forces we will take an potential new entrants are low and no cost of switching the cost. There are number of new brands coming in the market with almost same prices. Threat of Substitute Products is going medium to high level as many kinds of energy drink appearing in the market.
The bargaining power of buyers and the bargaining power of supplier both are low in regard of Coca-Cola. Rivalry among existing firms is bit high and its main competitor is Pepsi. (V. Scandal 2014) 2. Product Life Cycle: It is an important model of strategic marketing and tell the different probable stages of the products. (Riley. J, 2012) There are four basic stages of product life cycle in order to analyses the position of the business or certain good or services. 1 . Introduction stage: in this stage new product is developed and launched after extensive research and huge marketing campaign. . Growth stage: after launching in this step sales continuously increasing drastically. 3. Maturity stage: when sales of the product are getting low after heights due to market saturation. 4. Decline stage: in this phase sale of that product start to fail or people don't want to buy that product any more. A well developed and continuous improvement strategy can help the product to enjoy the growth stage as long as possible. For example Microsoft as the product is constantly advertised and improved according to customer's demands and sustains the good and strong brand image. . 2 Link between Strategic positioning and marketing tactics: If we go simply, than we can say this way that strategy is a plan for attaining a particular goal or task. Whereas, tactic is a way to reach set goals. In business world a strategy is a long term planning to attain the goals, such as sales growth or high market share or make good image or position the product for specific business. Tactics for creating an image or brand might include using price to establish you as affordable or high-end.
Marketing managers support their marketing strategies with poisoning the product and use tactical marketing. Tactical Marketing: After setting your goals & deriving the strategies to accomplish those goals a time moms to implement your strategies. If organization wants to boast up in sales and revenues, one marketing tactic could be to move up your prices in combination with rebinding a goods or services as chic. 2. 3 Benefits of relationship marketing: It's a modern concept of customer retention in this competitive era of market tycoons.
Noticeable market leaders such as Coke, Wall Mart, Hyperspace, etc are using modern day tools & techniques for retention & satisfaction of their customers. These tools are as simple as Just a telephone call for birthday wish to its customers, membership schemes, annual diaries, annual dinners, etc. All these ways help a long way to retain the existing customer base as well as widening it due to a positive word of mouth spelled out by its existing satisfied customer. Relationship management helps in controlling & managing loyalty of the customers and direct communication (Payne. A & Fro.
P 2005). Various advantages derived from Relationship Management are as follows: 1 . Customer retention. 2. Market repute / Goodwill. 3. Brand name & worth. 4. Good word of mouth by existing customer. 6. Less promotional & marketing cost. 3. Appropriate techniques to ascertain opportunities of growth: There is Anions model that gives different strategy making techniques to the organizations. Anions (1957) claims that there are four different approaches those organizations can adopt to make the strategy to gain the competitive edge over their rival companies and grasp the growth opportunities.
These techniques are: Market penetration Market Development Product Development Diversification strategy Another class of researcher explained that marketing managers can avail opportunities with good product positioning, segment the market according to reticular need of the customers and target market with careful strategies. 3. 2 marketing strategy options: Marketers have many strategy options available in the industry like price skimming, penetration price. And they also can use Porter's generic strategies option cost leadership, focus and differentiation to attain objectives and goals of the company.
For example Peer Peer Grill is newly established business they can use price skimming strategy option to attract more customers and grow in the market. Another example is for differentiation strategic option is Next. As they are giving customized and differentiates product and charge accordingly for the particular target class. 3. 3 Objectives for strategic marketing: Strategic marketing objectives are very important matters as these support the corporate overall strategy objectives. These objectives should be realistic that company can achieve to go ahead for example size of the market share.
The strategic marketing objectives can be create brand image, high market share, increase in revenue generation and build customer loyalty to gain competitive advantage in the market. The Marketing Mix ops: Product: is the main and key of any business and to attain objectives of the company must focus on product name, size, color, taste and all attributes. Place: The goods or services must be available for the customers at the easiest & nearby by spot to purchase for. Location of the business is very important issue to grow in the market.
Price: one more significant tool of marketing mix and sensitive too. Company must act wisely while setting the prices of goods and services they are offering. Promotion: is the very crucial element of strategic marketing. Through this company can build the mage of the brand in the minds of the end users and realize their goals bit easily. Let take the example of Primary. They are offering variety of products under the one roof for the convenience of the customers. They are offering products on reasonable prices to get the more customers and generate more revenue over the competitors.
They are using promotional strategies as well to retain the customer for long-lasting through different offers and discounts. So, with the aid of marketing mix they are trying to attain their objectives and somehow they are successful in this. 4. 1 Impact of changes in the external environment: External analysis is a great strategic model or approach to analyze the Political business or organization in due course of its business & marketing of products or services. It actually gives a comprehensive overview of all these factors & the way they affect business & best response to be given by a business in this regard. . Political: In this global era world is getting borderless for businesses therefore, domestic & international political stability is very key factor in success of any business. Other factors that come under this head are tax legislation, prevailing labor laws, Tariffs, Trade embargos, environmental regulations, etc. 2. Economic: Factors like state of domestic & international economies, interest rates, exchanging rates, inflation rates, etc are important to keep in eye upon. 3. Social: Demographic shifts in product lines usually effects if company has not devised a solid market plan.
Element such as inequality of wealth distribution in society, social values & norms, etc. Should be kept on paper for solid & successful business plan. 4. Technological: Technology is a very key factor that usually effect while entering a new market or focusing a new customer base. Factors such as rate of technological innovation, automation advances, skilled workforce, process innovation, recent technological developments are major ingredients of this component. Let's have look on Peer Peer Grill Cottage external environment as an example.
They can expand their business with relationship strategies and customer's feedback process (social factor). Peer Peer Grill can use latest technological system and equipment to enhance the business performance. They can use online ordering system and promotional activities to grasp more and more customers. They don't need much capital for their set up so they can establish business with economical cost. 4. 2 Internal analysis of the company's environment: Market research must be carried out to get a comprehensive understanding of your company's business environment.
Categorize and prioritize the main opportunities and threats. Moreover, it is not viable to address all the possible opportunities & threats in one market plan, therefore only those one to be picked which are supported by our company's strengths & financial capacity.. SOOT Analysis: SOOT Analysis is a modern tool which works as strategic development utensil to do a imperative analysis on organizational internal strengths & weaknesses with peripheral opportunities and threats. It undoubtedly helps in profound analysis of organization's Strengths, Weakness, Opportunities and Threats.
It is a universal hypothesis that if business owners or managers cautiously analyze such strengths, weaknesses, opportunities, & threats while keeping a long-term market plan in their minds than a constructive strategy for ensuring organizational success will become obvious to them. Strengths: Strengths may include cheap labor / human resource, solid market plan, well defined rarer path for its employees to ensure employee loyalty, latest technology, etc. Weaknesses: Weaknesses may come in the shape of expensive & unskilled workforce, obsolete technology, employee unions hurdling execution of various business plans, etc.
Opportunities: time. It may encompass a wide range of mania such as prospective customers, competitive advantage of price, promotion policy of product or service, new product or service, etc. Threats: Business owners & managers must be aware of potential risks or threats prevailing in the market. It includes new market entrants, competitors, political instability, etc. For example Peer Peer Grill cottage has opportunity to use latest technology and good promotional strategies to position their customers. There is already many strong competitors exist in the market with high market share.
Company need to get competitive advantage must have good business and marketing plan and dedicated workforce as a strength. 4. 3 key marketing response to emerging themes: Business world is changing rapid than ever as there are a lot of innovations and technology advancement is occurring on daily basis. Following are some responses to tackle with these changes themes. Business world is changing rapid than ever as there are a lot of innovations and technology advancement is occurring on daily basis. Following are some responses to tackle with these changes themes.
Globalization: As entire world is getting on to five fingers of people & has become a global village, therefore it is becoming easier & for both customers & companies to interact with each other despite of being half the world away in terms of distance. In order to enter this mode of globalization, a company must be technology adaptive in order to get a strategic win over its competitors. Product customization: Another emerging & worth noticing trend is product customization according to varying need of its customers as well as markets.
The days have gone when concept of "one size fits all" was common and prevailing. In this modern & competitive business era companies are using exclusive customization according to the customers' needs, preferences & taste. Previously concept of product customization was used in case of highly expensive products only. Social sites: Social forums such as Face book, twitter, tumbler, etc are the communication & marketing tools. By simply floating an advertisement or a poster on Face book you can public or promote your product or service to millions of customers on a single click.
For a business or organization to be unbeaten in this competitive era, it is becoming important to advertise via social networks as well. This mode of advertising is cheaper as compare to various other methods of advertisement. Some other means for interaction with wide range customers in a less time & low cost are blobs & public forums to entertain suggestions and queries. In this strategic & tactical global period, marketing is being considered as one of the most important & thriving force in success of any business or organization.
As time evolved, various concepts of marketing prevailed across the borders which kept on undergoing a wide range of changes & enhancements. In the context of selected company Peer Peer Grill cottage it is suggested that they should develop marketing mix objectives and analyze the both narrow and wide environment with wisdom and also use different techniques like new product development related to customers want and needs and also consider pricing strategies to get the customer attention. Company can give different event discount, kid meals and other promotional offers to capture the market.