Understand the Principles Strategic Marketing Management
Discuss the Role of Strategic Marketing in an Organisation
Excellent performance is always at the core of every organisation. Hence, organisational stakeholders have to be keen when establishing their approaches to business, including the personnel to bring onboard to steer the organisation towards its objectives. Poor strategies are associated with losses whose impact has led to the closure of business by some companies. To reap the best from an organisation’s operations, stakeholders have embraced the concept of strategic marketing. Strategic marketing refers to a set of strategies that are designed in a way that the resources of a firm are apportioned and aligned to meet a firm’s long-term goals (Foxall 2014). In other words, strategic management involves identifying and performing a set of marketing activities, which are aimed at helping a firm to achieve its long-term objectives. The key motive behind the adoption of strategic marketing is to acquire a competitive advantage over the rivals (Chernev 2014). For a company to achieve success in a new niche, market managers must possess outstanding strategic marketing skills. It is important to note that one of the key reasons why firms adopt strategic marketing is to position themselves ahead of their competitors.
In the case of Philips, the objective would be to acquire a competitive advantage for its products against the backdrop of the stiffening competition in the home appliances industry. To achieve the stated goal, the company must employ a suitable marketing strategy to retain or gain a new market share. The strategic marketing adopted by the company is largely based on health considerations of the people suffering from heart disorders. The strategy by Philips to market air fryer, which uses steam to cook food, is a major strength to the achievement of competitive advantage. Currently, people are more concerned about their health. Hence, they are likely to purchase foods that are perceived to be healthy. The recent attribution of the traditional deep-fried foods with heart diseases has prompted the need for healthier foods. The introduction of Philip’s air fryers at a time when customers are considering alternative tools for preparing healthy foods illustrates the importance of strategic marketing in assisting a firm in determining when and/or how to penetrate and dominate a market.
Explain the Process Involved in Strategic Marketing
The implementation of strategic marketing in a firm follows several steps, which are important for a firm to achieve competitive advantage (Foxall 2014). In other words, strategic management is accomplished by following certain steps that are crucial to its success. Firstly, market managers must use their knowledge about this important concept of marketing to identify the target market in which they want to boost their competitive advantage. The next step is to determine the basis for acquiring competitive advantage by employing the right marketing strategies. Next, managers must decide when and/or how they will penetrate the market in question. The last step of strategic marketing involves implementing the identified strategy in the specified market to achieve the desired goals.
The implementation phase usually takes place in five different steps. The first step entails assessing the marketing strategy to eliminate any unreasonable elements, including appraising the availability of the necessary resources. Such resources include monetary requirements and the overall time taken to fully implement the concerned strategy. On the other hand, the next step of the implementation phase revolves around aligning the strategy with the overall visions and missions of an organisation. The goals must be attainable within the set timeframe using the available resources. The third step of the execution phase centres on setting a team whose work is to oversee the implementation of the strategy (Hitt, Ireland & Hoskisson 2012). The team must be conversant with the strategy and its attachment with the organisation’s visions. The fourth step involves organising various meetings with the stakeholders involved in implementing the strategy. During such meetings, any deviation from the set goals is discussed to come up with strategies to mitigate such deviations. The fifth and the final phase of the implementation phase involves enforcing the relevant controls to ensure that the strategy meets the desired goals within each stage.
Establish the Link between Strategic Marketing and Corporate Strategy
A corporate strategy refers to a set of plans, which affect every level of the concerned corporation. The plans are designed to help a firm to achieve its long-term goals. Such strategies define the activities that must be accomplished by a firm within a specified timeframe. Additionally, a corporate strategy outlines the levels of command and the responsibility of each stakeholder in ensuring that the firm achieves the set objectives. Corporate strategies affect every level of the organisation. The strategies include decisions to diversify into new regions, engagement in mergers and acquisitions agreements with other firms, and the establishment of decisions to abandon some products in favour of others, which may be more profitable (Chernev 2014). One of the major points of convergence between corporate strategy and strategic marketing is that both focus on achieving specific long-term goals for an organisation. Besides, the two types of strategies aimed at helping a firm to achieve a competitive advantage over the rivals.
The decision by Philips to abandon the traditional oil fryers in favour of steam fryers may be viewed as a corporate strategy since it affects all the levels of the organisation. The role of strategic marketing is to ensure that Philips achieves success in implementing its corporate strategies. Strategic marketing in the case of Philips is a set of marketing plans that aim at facilitating the implementation of the firm’s corporate strategy, which centres on offering an alternative cooking tool for the people at risk of contracting heart illnesses. In other words, strategic marketing in Philips only serves the purpose of helping the firm to achieve a competitive advantage over the rivals in the target market. The calculated marketing will help the company to inform its customers about the existence of the product in the market in the most convenient methods.
Understand the Tools used to Develop Strategic Marketing Strategy
Assess the Value of Models used in Strategic Marketing Planning
For a strategic marketing plan to be successful, a marketing manager needs to utilise various market analysis models. Models that are mostly used in analysing the market to develop an effective marketing strategy include the 3Cs model, Asnoff’s matrix, 4Ps, PESTEL, and SWOT analyses, among others. The first one, 3Cs, helps strategic marketing managers to gain insight regarding the client, the contestant, and the conglomerate (Shaw 2012). Information about the three stakeholders is important when developing a marketing plan. Market strategists need to assess them. The second one, 4Ps (product, place, price, and promotion), outlines the marketing mix that is suitable for the firm in a given market. By analysing the target market against the 4Ps, a marketer gains an insight into the best promotion strategies to be employed in the market based on the demographics of the customers. In the case of Philips, the analysis of the market based on the 4Ps will help the firm to determine the best place, price, and the promotion strategy to employ in its air fryer market.
On the other hand, marketers use the PESTEL model to assess the external environment of a firm to understand the opportunities and challenges emanating from uncontrollable market forces. This model assesses the external environment of a firm from the following angles: political, economic, social, technological, environmental, and legal factors (Iyamabo & Otubanjo 2013). For Philips, marketers need to assess the political factors that are likely to influence its operations. Such factors include political conflicts and diplomacy rows, among others. Additionally, the company must assess the economic factors that are likely to influence its operations. Such factors include the income levels of the target customers, taxation policies in place, and currency fluctuations, among others. The social factors that the firm must consider consist of the customers’ culture, their health concerns, and family organisation. Besides, a firm must consider the technological factors that are likely to affect its operations. For Phillips, such factors include the evolution of the internet and the social media and their application in marketing. Next, the firm must consider the environmental factors that are expected to influence its operations. The globe is becoming increasingly aware of the importance of conserving the environment. Such appreciation has led to the enactment of legislation to combat pollution. Such laws change with time. Hence, Philips needs to consider them when developing its air fryer marketing strategy. Lastly, the firm must consider the trade legislations operational in the target market. Such laws include the marketing laws, patents laws, and other applicable legislation. Other than the external environment, the firm must assess its strengths and weaknesses using the SWOT model. The stated model is an acronym of strengths, weaknesses, opportunities, and threats. It helps marketers to determine the ability of a firm to execute a market strategy.
Discuss the Links between Strategic Positioning and Marketing Tactics
Strategic marketing is important for the success of a company in any given market since it guides marketing managers through the process of formulating the marketing plan. It provides managers with the relevant support to align the company’s corporate strategies with the marketing plan to achieve long-term goals (Iyamabo & Otubanjo 2013). To position a firm ahead of its rivals, marketing managers need to not only assess its operational strategies but also align the marketing tactics with such strategies. In Philips, the low-cost strategy, which is at the heart of the firm’s operations, may be achieved by combining it with suitable marketing tactics to achieve competitive advantage. If combined with the right marketing tactics, Phillips’ cost leadership strategy may go a long way in positioning it ahead of its rivals. Customers must be notified about the strategy by advising them that goods are available at a reduced cost. It is important to note that customers are concerned about the prices of goods. Hence, firms must charge reasonable prices to acquire a good market share. Phillips’ healthy food strategy may also be used to illustrate the connection between strategic positioning and marketing tactics. The firm intends to offer a solution to the problem of heart disorders. The problem is attributed to the overconsumption of fat. To make the strategy work, the firm marketing department must inform customers that the new steam fryers are designed to prepare healthy foods.
Analyse the Merits of Relationship Marketing in a Given Strategic Marketing Strategy
Firms that embrace the concept of relationship marketing stand higher chances of recording excellent results in terms of their performance. Relationship marketing is a strategy that emphasises the establishment of customer loyalty and long-term relations to gain an edge in the market. Customer loyalty and long-term client relations are important in helping a firm to establish a competitive advantage over its rivals. For Philips to succeed in acquiring a profitable market share for its newly introduced steam fryers, it has to create customer allegiance base. It also needs to establish a lasting relationship with its clients. Loyalty may be achieved by supplying customers with high-quality fryers. Marketers must inform clients that the products are of high quality and that they are designed to cook healthy foods. The company must utilise personal promotion coupled with internet marketing. Personal promotion helps to increase the support given to the customers, a move that creates trust between the company and its pool of clientele (Wilson & Gilligan 2012). On the other hand, internet marketing allows customers to contribute to idea generation or any possible improvement of the quality of products and services. The involvement of customers in making the decisions of the firm helps to establish lasting affairs.
Be Able to Use Strategic Marketing Techniques
Use the Appropriate Marketing Techniques to Ascertain Growth Opportunities in a Market
Currently, the fryers market is dominated by large multinational firms, which specialise in the production of oil-based fryers. Before the invention of the steam fryers, Philips too used to market the oil-based fryers. However, through innovation, the company managed to introduce hot air fryers, a move that illustrates that the company’s staffs are highly innovative and/or have the ability to push the company ahead of its rivals. As it stands now, Philips is yet to explore the full potential of the international market. This case limits its profitability. As the world becomes increasingly concerned about healthy feeding, the company needs to focus its efforts on the global market to reap the benefits accruing from such endeavours. The fact that the newly introduced fryers are designed in a way that considers customers’ health needs is an outright indicator that it may gain acceptance within the shortest time possible. Additionally, the firm has been in the business of selling fryers. The company may use its strong brand equity to win global customers to increase its market share and profitability.
The invention of the internet and social media offers a great opportunity for the firm to penetrate the global market. Phillips may utilise the duo tools to reach more customers at a reduced cost. Many clients around the globe are increasingly using the internet to explore new products. This advancement may lead to fast acquisition of a profitable market share for the hot fryers (Kapferer 2012). However, although the firm stands to gain from the penetration of the global market, it has to embrace product diversification. Different segments around the globe have special needs, which must be met by the new product. The company may achieve this goal by customising the products distributed to each market segment.
Plan how to Use Marketing Strategy Options in a Market
Philips can use different marketing tactics to maximise its market share in the backdrop of the stiffening competition in the fryers industry. In its initial phases, the company should concentrate on its cost leadership strategy to lower the operations costs to facilitate the advancement of the low pricing strategy. Given that the hot fryers are in their initial stages of implementation into the market, customers would expect them to be of high quality and retailing at reasonable prices. The aspect of quality is already reflected in the product since the fryers are designed to cook fat-free foods. The company can easily compel customers to purchase the product by selling it at a discounted price. Price is a major source of competitive advantage in the short run. In the case of Philips, competitive advantage can be achieved by adopting the cost leadership strategy (Hollensen 2015). If the company advances the cost leadership strategy in the future, it can successfully gain durable customer loyalty.
Regarding product promotion, the company should use different promotional strategies such as TV and radio adverts, newspaper adverts, internet marketing, and direct selling. In its initial phase of the promotion of the hot fryers, the company should focus on clearing the bad picture of the traditional fryers. The firm can achieve this goal by providing extensive information about the new fryers, including their health benefits. Such message will transform the negative perceptions about fryers and paint a picture of a considerate and innovative company among customers. Clients should be encouraged to do reviews about their experiences with the product in social media platforms. Positive reviews about the product will encourage more customers to test the product, hence leading to market growth.
Create Appropriate Strategic Marketing Objectives for a Market
Philips’ primary objective should be to formulate a strategic marketing plan that places it at a better position relative to its competitors. In the initial stages, the focus should entail attracting customers to purchase its newly introduced fryers. However, as the company strives to acquire a considerable market share for its hot fryers, it should consider the fact that other companies in the industry will continue to market their oil-based fryers. This scenario poses some form of competition, which may limit the sales of the hot fryers. Besides, other companies may come up with similar technologies and/or introduce similar fryers, hence implying that substitutes will be readily available. The objective now will shift from that of establishing a market for the fryers to that of relationship marketing in an attempt to retain the established market. In this case, the company should increasingly utilise the 4Ps to come up with the best price, products, place, and promotional strategies.
Be Able to Respond to Changes in the Marketing Environment
Report on the Impact of Changes in the External Environment on a Marketing Strategy
The external environment of a business is prone to changes, which are prompted by factors that are not under the control of the business (Wilson & Gilligan 2012). In this regard, businesses must regularly adjust their marketing strategies to reflect the changes in the environment. Philips operates in the fryers industry, which is equally affected by changes in the business environment. The company’s marketing strategies must be flexible enough to adapt to the changes in the environment. One of the significant changes that are likely to affect the operations of the firm, in the end, is the policies concerning the environment. In the recent past, the world has embarked on a campaign that aims at ensuring that firms cause the least amount of environmental pollution.
There have been concerns that electronic products contribute to pollution if they are not appropriately disposed at the end of their life cycles. This situation may cause the enactment of strict legislations to regulate the production and disposal of electronics. As customers become more aware of the importance of conserving the environment, they will possibly prefer products that are less harmful to the environment. Philips should innovatively come up with new solutions to environmental pollution that emanates from its products. For example, the company may buy back the hot fryers at the end of their life cycles. Such a policy should be made known to the customers during the time of purchase.
Conduct an Internal Analysis to Identify the Current Strengths and Weaknesses in a Marketing Strategy
Philips’ current marketing strategy involves creating awareness of the existence of hot fryers through the available advertising channels. The company mainly relays the information that the fryers are health-conscious. One of the greatest strengths of the strategy is that it emphasises the health benefits accruing from the adoption of the newly introduced fryers. The target customers for the product are the people suffering from heart diseases who avoid consuming foods made from fat. The message about the health benefits attributed to the hot fryers indicates that the company is highly innovative and that it is determined to produce even better products in the future. This plan increases customers’ confidence levels towards the company.
Overall, increased confidence may boost customer loyalty on the company (Wilson & Gilligan 2012). However, although the company’s strategy of intensive marketing of health-conscious hot fryers has much strength, it also has its weaknesses. One of the weaknesses is that the strategy predisposes the company to the risk of being accused of unethical marketing. Although there is a great connection between fat and heart diseases, fat is not the only cause of heart attacks. Therefore, hot fryers are not the ultimate solutions to the illness. The other weakness of the firm’s marketing strategies is that it emphasises the cost benefits of the product. High-quality goods usually sell at premium prices. The insistence of the firm on the low pricing strategy may create the perception of low quality.
Propose Strategic Marketing Responses to Key Emerging Themes in a Marketing Strategy
In developing the strategic marketing strategy, it is important to consider the emerging issues in the field of strategic marketing. One of the emerging issues in strategic marketing centres on the barriers to effective marketing plans. Tariq (2013) identifies several factors as the major barriers to strategic marketing, namely, inadequate management support, failure to coordinate and comply with plans, and inadequate knowledge of customer needs. To overcome the listed challenges, organisations need to overcome such barriers to reap the benefits accruing from effective marketing.
Philips needs to develop an evaluation programme to assist the firm in evaluating the success of the marketing strategy at each stage. The programme should be designed in a way that it can detect any problems arising in the process of implementing the marketing strategy. The firm should engage employees from all departments of the firm when creating the assessment programme. This approach will ensure that all the possible barriers are identified and the probable solutions deliberated. Communication in the firm should not stop at the market strategy formulation but should be a continuous process. The firm should establish a communication system, which should be designed in a way that it facilitates horizontal and vertical communication throughout the process of implementing the marketing strategy in question.
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