Marketing is made up of two totally different but undoubtedly complementary aspects. On the one hand, we have a part focused on the medium and long term, such as strategic marketing. On the other hand we have a tactical part focused on the short term and create marketing actions, which is the operational marketing.
Society generally identifies marketing, only with its operational part, since it is the visible part of marketing (advertising, promotions, events, etc. However as we will see throughout the article this is a big mistake. Since for that operational marketing is successful requires a prior analysis, planning. Along with a series of effective strategies, which are working in the strategic marketing dimension.
“In a competitive environment such as the present one, it is necessary that the marketing professional not only takes care of the operative part of the marketing, but also has to worry about working the strategic part of the marketing of the company.”
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Concepts of Strategic Marketing
Strategic marketing is a methodology of analysis and knowledge of the market, with the aim of detecting opportunities. Actually that help the company to meet the needs of consumers in a more optimal and efficient way, than other competitors.
We can not create goods and services and then try to sell them. This vision has long since stopped working. Now we must analyze what the customers need to create products or services focused on meeting the detected needs.
The objective of strategic marketing is to satisfy uncovered needs that imply profitable economic opportunities for the company. When marketing the strategic part of marketing, you need to discover new markets to target, analyze the attractiveness of those markets. Moreover evaluate the life cycle of the products you are going to work with, study your competitors. Also find a lasting competitive advantage over time and of course it is difficult to imitate by the competition.
Functions of Strategic Marketing
The strategic dimension of marketing is part of the overall strategy of the company, as well as being a fundamental part of any marketing plan.
Before formulating the marketing strategy of the company we have to have a solid base of work and information. Basically through research and market studies, to understand where we are and where we want to be. Actually by the exercise of establishing or revising the mission, vision and values of the company, analyze our strengths and our weaknesses. In addition to threats and market opportunities points, all with the known strategic tool SWOT matrix.
It is necessary to obtain information and carry out an in-depth analysis of the situation in order to later establish our strategies in an effective way. The main functions of strategic marketing are:
- Analyze new habits and trends of consumers.
- Study the competitors.
- Observe the evolution of demand.
- Detect new customer needs.
- Study opportunities and threats in the market.
- Create a sustainable competitive advantage.
- Study our capabilities to adapt the company to the market.
- Define the marketing strategy that allows us to achieve the objectives that the company has set.
Main Strategies of Strategic Marketing
On the other hand, below you can observe the main marketing strategies that are worked on the strategic part of marketing a company.
Tools like the BCG matrix allows us to make strategic decisions about our product portfolio. Especially those related to the potential and profitability of the products.
The strategy brand positioning helps us work our place in the consumer’s mind regarding our competition. In addition, this strategy works: how to bring value to consumers, our current positioning. Also that of our competition, or the positioning we aspire to and its viability.
Within the strategic marketing strategy , market segmentation divides the market into groups with similar characteristics. Therefore needs to offer a differentiated and adapted to supply each of the target groups. This strategy also helps us to discover new markets and adapt our offer to this target group.
The functional strategy will help us make the necessary strategic decisions about the 4P marketing mix:- product, price, communication and distribution. The 4Ps will have to work consistently with each other.
The Ansoff Matrix is the perfect tool to determine the strategic direction of growth of a company. It will help us make a decision on what is the best option to follow: market penetration strategy, strategy development of new products. Moreover strategy development of new markets or diversification strategy.
Customer Loyalty Strategy
If the company has set goals, loyalty and customer development strategies necessary for working relationship marketing and customer relationship management . These will help improve the customer experience and create more lasting and profitable relationships with our customers.
Once we have made all the relevant strategic decisions, and we have defined our marketing strategy. Then we can begin to work on our marketing actions.
It is absolutely necessary to know what strategic direction we are going to follow, what products we are going to work. Moreover in which markets we are going to operate, what segments we are going to target. Also what brand strategy we are going to follow, what price scale we are going to define. And what distribution we will choose, what will be our tone of communication, etc. Only after working all these aspects, if we want our marketing to be effective and efficient. Then we must carry out the marketing actions of our organization. Such as launching a particular product, improving a service, launching an advertising campaign or opening a new market among others.
Examples of Strategic Marketing
Since World War II, Switzerland has always been a leader in the quality watch industry. However at the beginning of the decade of the 80 would arrive one of the biggest crises of its history suffering a fall of sales in the quality watches.
Two of the main factors affecting the industry were aspects related to new customer buying habits and the irruption of cheap and good quality Asian watches (Japan and Hong Kong), becoming a commercial success.
Swiss manufacturers worried about the loss of market share, analyzed what was happening in the watch market and what were the expectations of customers. Thanks to strategic marketing they created a new marketing strategy to adapt it to a new need they had detected.
Asian digital watches were inexpensive but had a sloppy design, all black, dark and all resembled each other. The new marketing strategy would consist of continuing the luxury and quality watches brands so rooted in Switzerland. But on the other hand would follow a strategy of launching new products to compete with oriental watches. These new Swiss watches would be affordable and feature innovative designs, attractive and vivid colors to compete with the sad image of Asian watches. They created a new category of differential product within a market with products that offered the same value proposition. Disruptive born a brand of watches: Swatch .
Car makers saw a segment of the population that was increasingly concerned about the environment, the continued rise in fuel prices and quickly adapted to new technological changes.
Faced with this situation, Toyota decided to launch its model Prius, a hybrid car that uses electricity and gasoline. This eco-friendly vehicle reduces the environmental impact by consuming less fuel and emitting less harmful gases to the environment. It also takes into account the economy of the user, since being a hybrid model consumes less fuel.
Since its launch in 1997, the Toyota Prius has become sustainable car par excellence. In 2005, it was declared car of the year in Europe and America.
Toyota, with its hybrid model Prius is a good example of how to properly work strategic marketing. He was able to detect and exploit a latent need in the market, such as having a car that takes into account the environment and was much more economical in fuel consumption.
As we have seen, any company regardless of its size, needs to work its strategic marketing to increase its business competitiveness. Many companies focus on working short-term operational marketing without having previously defined a strategic vision through strategic marketing, and this is a big mistake. In marketing if we want to be effective in the short term is a condition sine qua non to work our strategy.
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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