Companies traditionally follow a planning framework. However, this is sometimes short-term, ad hoc and based on intuition. The need is for a more strategic approach, but before we consider its implications, we should consider why it is required. The key reasons are:
The pace of change and environmental complexity
Kotler and Keller13 suggest that the pace of environmental change is not only increasingly rapid, but these changes are often discontinuous in nature. We shall be examining these environmental factors in strategic marketing, but let us consider a sample of environmental changes with which organizations have had to cope in recent years.
The worldwide economic ‘meltdown’ in 2008 and its aftermath took people by surprise.
Healthy and particularly organic foods have been amongst the fastest growing markets in the UK.
Once a minority market, appealing to relatively few health food ‘fanatics’, this sector now represents a huge and growing market. More and more consumers are looking for a healthier diet and avoiding products and brands which may harm their health. Research indicates that nearly 500 food products were launched under the ‘healthy’ label in the UK in 2009. In addition, sales of organic foods in the UK during 2009 topped £3 billion. ASDA’s ‘Healthy Choice’, the Aviva range from Novatis and Johnson & Johnson’s Benecol are all examples of brands that have flourished with the trend towards healthy eating. Changes in attitude towards health and healthy eating will continue to give rise to marketing opportunities and challenges for marketers in the future. The significance of this all of this environmental change is its increased magnitude and pace and this has added to the complexity facing organizations.
Increasing organization size and complexity
A significant feature of environmental change is its increased magnitude and pace. Technological, social/cultural and political and regulatory change are now rapid and this has added to the complexity facing organizations and the marketer in particular.
Unilever, one of the world’s largest companies, currently employ more than 170,000 people producing and marketing in over 150 countries worldwide. Their products and brands encompass personal care products, home products and food products. Thirteen of their brands turn over in excess of $1 billion and there are twenty different nationalities in the top tier of management. They spend an annual total of nearly $1billion on R&D and are involved in supporting a number of good causes throughout the world. Marketing planning in a company this large and diverse is complex and requires sophisticated systems and procedures to develop effective strategic marketing plans.
As we can see with Unilever, increasingly, the contemporary organization is often large and complex, encompassing potentially many product lines sold in diverse markets to different customer groups. The different parts of a business each need a strategic marketing plan reflecting different requirements of each product market.
An example of the strategic planning implications of increased organizational size and complexity is the concept of viewing the multi-product, multi-market, organization as a number of sub-units or ‘strategic business units’ (SBUs), which need to be viewed and managed as a portfolio of businesses that may each contribute, in different ways and to a different extent, to overall corporate objectives. Lynch14 has suggested that particularly in larger organizations the strategic business unit is very often the basic organizational unit for the development of strategic marketing plans. Certainly, organizing around SBUs is very prevalent in today’s multi-product/multi-market organization and this is now explored.
Marketing Management Related Tutorials
|Consumer Behaviour Tutorial||Marketing Strategy Tutorial|
|Marketing Research Tutorial||Principles of service marketing management Tutorial|
|Advertising Management Tutorial|
Marketing Management Related Interview Questions
|Consumer Behaviour Interview Questions||Marketing Strategy Interview Questions|
|Marketing Concepts Interview Questions||Marketing Research Interview Questions|
|Principles of service marketing management Interview Questions||Advertising Management Interview Questions|
|Brand Management Interview Questions||Marketing Interview Questions|
Marketing Management Related Practice Tests
|Consumer Behaviour Practice Tests||Marketing Strategy Practice Tests|
|Marketing Concepts Practice Tests||Marketing Research Practice Tests|
|Principles of service marketing management Practice Tests||Advertising Management Practice Tests|
|Brand Management Practice Tests|
Marketing Management Tutorial
Development Of A Strategic Approach To Marketing: Its Culture; Internal Macro- And External Micro-environmental Issues
Markets And Customers: Consumer And Organizational Buyer Behaviour And Marketing Strategy
Markets And Customers: Market Boundaries; Target Marketing
Product And Innovation Strategies
Channels Of Distribution And Logistics
Customer Care And Relationship Marketing
Marketing Information Systems And Research
Analysing The Environment: (opportunities And Threats) And Appraising Resources (strengths And Weaknesses)
Evaluating And Controlling Strategic Marketing
Strategic Marketing Planning Tools
Services Marketing And Not-for-profit Marketing
All rights reserved © 2018 Wisdom IT Services India Pvt. Ltd
Wisdomjobs.com is one of the best job search sites in India.