36860144 Explain the Role of Marketing in Strategic Planning

7/27/2019 36860144 Explain the Role of Marketing in Strategic Planning

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Assignment of business tobusiness to marketing

Submitted by:

Sachin Saxena

09BS0001988


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Explain the role of Marketing in Strategic Planning?

Marketing strategy is a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a sustainable

competitive advantage. A marketing strategy should be centered around the key concept that

customer satisactionis the main goal.

!arketing plays an important role in the strategic planning process or many organizations.

Although some marketing positions are represented at the corporate le"el# most are at theunctional le"el within the business units o an organization.

$ the company has obtained an ade%uate understanding o the customer base and its own

competiti"e position in the industry# marketing managers are able to make their own key

strategic decisions and de"elop a marketing strategydesigned to maximize the revenuesand

profitsof the firm.&he selected strategy may aim or any o a "ariety o speciic ob'ecti"es#

including optimizing shortterm unit margins! revenue gro"th! market share! longterm

profitability! or other goals.

Strategic marketing acti"ities can be classiied into three basic unctions. (irst# marketers helporient e"eryone in the organization toward markets and customers. &hus# they are responsible or

helping organizations execute a marketing philosophy throughout the strategic planning process.

Second# marketers help gather and analyze inormation re%uired to examine the current situation#identiy trends in the marketing en"ironment# and assess the potential impact o these trends.

&his inormation and analysis pro"ides input or corporate# business# and marketing strategic

plans. &hird# marketers are in"ol"ed in the de"elopment o corporate# business# and marketingstrategic plans. !arketing)s inluence "aries across organizations. (or organizations dri"en by a

marketing philosophy# marketing necessarily plays a key role in strategic decision making. &he

trend toward pushing strategic planning responsibility urther down the organization isincreasing marketing)s clout in an organization)s strategic planning process

Marketing management relates to speciic product marketing strategies. $t diers rom strategic

marketing in its basic orientation. Strategic marketing ocuses on broad strategic decisions at thecorporate and business le"els. !arketing management is concerned# by contrast# with speciic

trategic decisions or indi"idual products and the day*to*day acti"ities needed to execute these

strategies successully. At the operating le"el# marketing managers must ocus on the our +s othe marketing mix, price# product# promotion# and place -distribution. &he strategic role o

marketing and marketing management is now in a period o considerable change and e"olution.

&hese changes are due to a number o important en"ironmental phenomena that are aecting the

way many irms do business. &o begin# many well*known companies work closely with edicatedpartners on the supply side -oten using single supply partners and the distributor side o their

business# expecting their distributors to play proacti"e roles in the de"elopment o ser"ices and

marketing strategy.
http://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Customer_satisfactionhttp://en.wikipedia.org/wiki/Marketing_strategyhttp://en.wikipedia.org/wiki/Revenueshttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Customer_satisfactionhttp://en.wikipedia.org/wiki/Marketing_strategyhttp://en.wikipedia.org/wiki/Revenueshttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Market_share


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(or example# on the supply side# the modern*day /ike does "ery little manuacturing o its own

and ocuses largely on marketing. $n this "ein# companies such as this are actually embedded in

business net"orks! comprising strategic alliances among suppliers# distributors# and themarketing irm. ther inluences on marketing include the connected*knowledge economy

globalized and consolidated industries ragmented markets and demanding customers and

consumers. 2ith these changes# new kinds o competitors will emerge# markets will continue to

become homogenized across country boundaries# and mass markets will erode in the ace omass customization. Business customers and indi"idual

consumers expect di"ersity and ha"e multiple means o obtaining products# as well as learning

about company oerings. Some obser"ers oresee a uture in which the 2eb will enableautomated purchasing# anonymous transactions# and the bypassing o most intermediaries.

&he role o marketing within the irm is in transition as well. (or example# some scholarly

obser"ers ha"e argued that the marketing unction will be reduced as the "alues embodied in theirm)s market orientation permeate the irm. &hat is# a crossunctional dispersion o marketing

acti"ities will occur as the irm becomes marketoriented throughout. $n a test o this premise# one

study o managers across unctions -i.e.# marketing# human relations# operations# accounting# and

inance within their irms re"ealed that marketing as a separate unction still contributes to a

irm)s inancial perormance# customer*relationship perormance# and new*product perormancebeyond the perormance attributable to the irm)s general market orientation. &hereore# an

understanding o the strategic planning process is e"en more important in today)s e"er*changingmarketplace.

Marketing Plans - How to prepare them: How to use them# describes The Ten Steps of the

Strategic Marketing Planning


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Process as ollows,

#he #en Steps of the Strategic Marketing Planning Process

$%ES %' #(E S#)*#E+,$ M*)-E#,&+ P*&:

/. Mission Statement

&his clearly sets out the reason or the existence o the Strategic Business 3nit -SB3 and should

Briely state,

4 5ole or contribution o the unit

4 6einition o the business

4 6istincti"e competence

4 $ndications or uture direction

0. Summary of Performance

&he current and historical inormation can be easy represented in graphical orm.Aggregated (inancial Summary


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1. 'inancial Summary of Strategic Plan

$ts purpose is to summarize the inancial implications o"er the planning period. (or example,

7This three-year business plan shows an increase in revenue

From 85m to !"m an# an increase in contribution from $mto %&m')

2. Market %vervie"

&he !arket "er"iew considers the ollowing,

4 !arket structure4 !arket trends

4 ey !arket Segments

4 ap Analysis4 :ompetiti"e (orces -+orter.

&he ap Analysis charts illustrate the trend situation and build up the results o the marketing

b'ecti"es and strategies.


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&his chart illustrates how the shortall will be closed or not# as the case may be. $n the exampleBelow there is still a gap between the o"erall ob'ecti"e and what can be realistically achie"ed.


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5. SWOT Analysis

&he S2& Analysis makes use o the :ritical Success (actor -:S( techni%ue. &his section

takes into account how the ollowing changes will aect business in the planning period,

4 &echnology

4 $nternational trade

4 eneral ;conomy4 Socio*political actors

4 6emographics

4 !arket (actors4 :ompetition.

6. Portolio Summary

&his section e"aluates the indings rom the Boston !atrix and the 6irectional +olicy !atrixcalculated rom the S2& Analysis.

!. O"erall Assumptions

&he assumptions need to be,

4 ;xplicit

4 (ew in number4 Agreed by key managers

4 5elated to issues in the S2& Analysis

#. Strategies

+roduct# price# place and promotion deine the marketing strategies. &ypically they include

Actionable propositions such as,

Pro$u%t

4 :hange product design# perormance#

%uality# eatures# positioning

4 :onsolidate product lines

4 Ac%uire and de"elop new products

4 2ithdraw product lines

Pla%e

4 :hange channels

4 :hange deli"ery or distribution

4 :hange ser"ice le"els

4 :onsolidate distribution


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A new + has been added making it a total o


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Ater the irm=s strategic ob'ecti"es ha"e been identiied# the target market selected# and the

desired positioning or the company# product or brand has been determined# marketing

managers) ocus on how to best implement the chosen strategy * implementation planning acrossthe >?+s> o marketing,.

&aken together# the company=s implementation choices across the ?-go to market> and

execute the marketing strategy. #he overall goal for the marketing mix is to consistently

deliver a compelling value propositionthat reinforces the firm3s chosen positioning! builds

customer loyalty and brand e4uity among target customers! and achieves the firm3s

marketing and financial ob5ectives.

Evaluation: )eporting! measurement! feedback and control systems

!arketing management employs a "ariety o metrics to measure progress against ob'ecti"es. $t is

the responsibility o marketing managers @ in the marketing department or elsewhere @ to ensurethat the execution o marketing programs achie"es the desired ob'ecti"es and does so in a cost*

eicient manner.

!arketing management thereore oten makes use o "arious organizational control systems#

such as sales orecasts# sales orce and reseller incenti"e programs# sales orce managementsystems# andcustomer relationship managementtools -:5!. 5ecently# some sotware "endors

ha"e begun using the term >marketing operations management> o r >marketing resource

management> to describe systems that acilitate an integrated approach or controlling marketingresources. $n some cases# these eorts may be linked to "arious supply chain management

systems# such as enterprise resource planning -;5+# material re%uirements planning -!5+#

eicient consumer response-;:5# and in"entory managementsystems.

!easuring the return on in"estment -5$ o and marketing eecti"eness "arious marketinginitiati"es is a signiicant problem or marketing management. arious market research#

accounting and inancial tools are used to help estimate the 5$ o marketing in"estments. Brand

"aluation# or example# attempts to identiy the percentage o a company=s market "aluethat isgenerated by the company=s brands# and thereby estimate the inancial "alue o speciic

in"estments in brand e%uity. Another techni%ue# integrated marketing communications-$!:# is

a :5! database*dri"en approach that attempts to estimate the "alue o marketing mixexecutions based on the changes in customer beha"ior these executions generate.9C
http://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Go_to_markethttp://en.wikipedia.org/wiki/Value_propositionhttp://en.wikipedia.org/wiki/Customer_loyaltyhttp://en.wikipedia.org/wiki/Brand_equityhttp://en.wikipedia.org/wiki/Brand_equityhttp://en.wikipedia.org/wiki/Incentivehttp://en.wikipedia.org/wiki/Sales_force_management_systemhttp://en.wikipedia.org/wiki/Sales_force_management_systemhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Marketing_Operations_Managementhttp://en.wikipedia.org/wiki/Marketing_Resource_Managementhttp://en.wikipedia.org/wiki/Marketing_Resource_Managementhttp://en.wikipedia.org/wiki/Supply_chain_managementhttp://en.wikipedia.org/wiki/Enterprise_resource_planninghttp://en.wikipedia.org/wiki/Material_requirements_planninghttp://en.wikipedia.org/wiki/Efficient_Consumer_Responsehttp://en.wikipedia.org/wiki/Inventory_managementhttp://en.wikipedia.org/wiki/Return_on_investmenthttp://en.wikipedia.org/wiki/Marketing_effectivenesshttp://en.wikipedia.org/wiki/Brand_valuationhttp://en.wikipedia.org/wiki/Brand_valuationhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Integrated_marketing_communicationshttp://en.wikipedia.org/wiki/Marketing_management#cite_note-SchultzCG-8http://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Go_to_markethttp://en.wikipedia.org/wiki/Value_propositionhttp://en.wikipedia.org/wiki/Customer_loyaltyhttp://en.wikipedia.org/wiki/Brand_equityhttp://en.wikipedia.org/wiki/Incentivehttp://en.wikipedia.org/wiki/Sales_force_management_systemhttp://en.wikipedia.org/wiki/Sales_force_management_systemhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Marketing_Operations_Managementhttp://en.wikipedia.org/wiki/Marketing_Resource_Managementhttp://en.wikipedia.org/wiki/Marketing_Resource_Managementhttp://en.wikipedia.org/wiki/Supply_chain_managementhttp://en.wikipedia.org/wiki/Enterprise_resource_planninghttp://en.wikipedia.org/wiki/Material_requirements_planninghttp://en.wikipedia.org/wiki/Efficient_Consumer_Responsehttp://en.wikipedia.org/wiki/Inventory_managementhttp://en.wikipedia.org/wiki/Return_on_investmenthttp://en.wikipedia.org/wiki/Marketing_effectivenesshttp://en.wikipedia.org/wiki/Brand_valuationhttp://en.wikipedia.org/wiki/Brand_valuationhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Integrated_marketing_communicationshttp://en.wikipedia.org/wiki/Marketing_management#cite_note-SchultzCG-8

36860144 Explain the Role of Marketing in Strategic Planning

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