What is Strategic Marketing? Definition, Meaning and Directions
What is strategic marketing and how it differs from the term marketing? In this article, we solve this question, and we will explain allot of other things that are related to strategic marketing.
Difference between marketing and strategic marketing
The term ” marketing ” is largely misunderstood, many people when you ask what is marketing, you answer: TV ads, making brochures, make catchphrases for a product or service, make a plan for people to buy more what they need, improve a brand, etc. In fact these answers are correct, but they are only part of Marketing, a very small part.
The marketers describe past activities as a plan to raise awareness, interest, desire and action among prospects.
Strategic marketing, in addition to what mentioned above, also addresses issues such as: What products or services should be involved? How much should we charge for them? How can we make it easy for people to buy our products?
The simple question “What products or services should be involved?” Is a huge problem. What potential customers want? What and how is the competition? Are we going to make money doing this? Do we have the ability to deliver what is required? Would we be better off doing something else? Is the market long – term or short? How to approach the market that we have identified? Is the market breaks into market segments ? etc.
The point of this is to emphasize that there is more to the strategic marketing of what is commonly understood as marketing.
A definition of marketing could be: “Marketing is the process responsible for identifying, anticipating and satisfying customer needs, management profitably.”
Marketing guru Philip Kotler defines marketing as:
“The concept of marketing holds the key to achieving organizational goals is to determine the needs and wants of target markets and deliver the most effective desired satisfactions and efficient your competitors ”
This concept is broken down into four components: market approach, customer orientation, coordinated marketing, and profitability.
The Strategic Marketing is the management process of instilling the concept of marketing, in the heart of an organization. A more appropriate definition for strategic marketing is “the correct identification of market opportunities as the basis for marketing planning and business growth, unlike marketing that emphasizes the needs and desires of consumers, strategic marketing emphasis to consumers and competitors. “
The core of strategic marketing is Segmentation, Targeting, and Positioning.
There are three basic concepts and contrasting that explain how organizations work. The number of concepts varies between three and five according to various authors, but to keep things nice and simple, we handle Three:
1. Production Concept
2. Sale concept
3. Concept Marketing
The concept of production follows the line of thought that the most important element of a company is its plant production. This is a particularly common view among engineers, who focus on the means of production, rather than the purpose of production.
The concept of the sale proceeds from the concept of production, since it recognizes the existence of customers, and focuses on selling as many things as possible.
The strategic directions for strategic marketing
Companies today face more than ever the challenge of assimilating strong and continuous changes not only the environment but also social, technological means, new adjustments and legislation, capital resources … It is, therefore, necessary to make decisions within the business to adapt to this changing and complex world. This process is referred to strategic direction, which can be defined as the art and science of implementing and developing all the potential of a company, which will ensure long-term survival and possibly beneficial.
It is important to remember that the strategy must always go hand in hand with innovation and value creation. In 1984 when I created as chief executive, along with a group of great professionals, Visionlab, we were not creating an optical more, but we were bringing added that existed at that time value, “your glasses in an hour.”
Any company that wants to succeed and seeks benefits must undergo a formal system of strategic management, perfectly select and define their values within the value chain of the company that will stand out from the competition.
Strategic management can be divided into three phases:
- Defining strategic objectives:
- Define the philosophy and mission of the company or business unit.
- Set short and long term goals to achieve the mission of the company, which defines business activities and future of an organization.
- Strategic planning:
- Formulate various possible strategies and choose the one that will be most appropriate to achieve the objectives set in the mission of the company.
- Develop an organizational structure to achieve the strategy.
- Strategic implementation:
- Ensuring the activities necessary to achieve compliance strategy effectively.
- Monitor the effectiveness of the strategy to achieve the objectives of the organization.
Although the word strategy, business management level, had an important role since 1980, its origins are set in the Greek term strategy which means “general” in the sense of military command. They were also Chinese military strategists, mainly led by the great Sun Tzu, marking the important pillars on which much of the current business strategy is based.
Therefore, the strategic management process requires planning, a continuous process of decision making, deciding in advance what to do, how to do, when to do it and who is going to do.
Mission, vision, and values in strategic marketing
This strategic decision is role and responsibility of managers at all levels of the organization, but the ultimate responsibility lies with senior management. Is this who set the vision, mission, and philosophy of the company:
- The vision of the company is the result of a search process, an intuitive impulse resulting from the accumulation of experience and information.
- The mission is what defines the importance of the company, which will determine their present and future activities, provides unity, sense of direction and guidance in making strategic decisions. We will provide a clear vision defining what market we are, who our customers are and who we are competing. Without a clear mission, it is impossible to practice strategic direction.
- The philosophy of the company defines the system of values and beliefs of an organization. It consists of a set of principles, which are based on knowing who we are and what we believe, that is, in their ideas and values; and what are its precepts and meet our commitments and our responsibilities to our audience, both internal and external. Thus the philosophy of the company is establishing the framework for relations between the company and its shareholders, employees, customers, suppliers, government, society in general, etc.
To help the reader understand these strategic concepts widely used in US companies. I will indicate two examples of large companies -ACCIONA- and an SME marketing consultant -RMG-.
We seek to meet current needs without compromising those of future generations.
Mission. To be leaders in the creation, promotion, and management of infrastructure, energy, water and services, actively contributing to social welfare, sustainable development and creating value for our stakeholders.
Vision. To be able to respond to the challenge of achieving sustainable development through all our areas of activity so that current and future generations enjoy a better life.
Values. Fundamental include:
- Concern for the environment.
- Social responsibility.
- Long-term approach.
- Financial strength.
- Customer orientation.
- Care of people.
Mission. To help our customers build a present and a future of success where business goals are the backbone of our business.
Vision. We like to be innovative and therefore propose solutions that bring clarity and common sense in the immediate future of the company.
Values. Do everything that contributes to improving sales: talent, discipline, analysis, passion, results, ethics, flexibility and demand.
Within the strategic planning process is knowing what tools we have to use to position the lead against the competition and help create value. If we read the chapter, we will be able to know that my professional judgment is more valid today and that, after reading it, more than one comment on the simplicity and logic they have in their approach. True, the real difficulty comes in knowing, perform, combine and implement them.
Personally, I like to compare this activity with a nice game of chess, where the board is the setting position the market and competition, and our records are strategic tools at our disposal. The movements we make and the vision we have is what will make us win the game.
Therefore, the implementation of the strategy involves assigning specific to particular people in the company, which are assigned the material means necessary to reach the objectives set by the organization actions.