• 2.2 The Role of Marketing in the Strategic Planning Process
  • 1 Unit Introduction
  • In the Spotlight
  • 1.1 Marketing and the Marketing Process
  • 1.2 The Marketing Mix and the 4Ps of Marketing
  • 1.3 Factors Comprising and Affecting the Marketing Environment
  • 1.4 Evolution of the Marketing Concept
  • 1.5 Determining Consumer Needs and Wants
  • 1.6 Customer Relationship Management (CRM)
  • 1.7 Ethical Marketing
  • Chapter Summary
  • Applied Marketing Knowledge: Discussion Questions
  • Critical Thinking Exercises
  • Building Your Personal Brand
  • What Do Marketers Do?
  • Marketing Plan Exercise
  • Closing Company Case
  • 2.1 Developing a Strategic Plan
  • 2.3 Purpose and Structure of the Marketing Plan
  • 2.4 Marketing Plan Progress Using Metrics
  • 2.5 Ethical Issues in Developing a Marketing Strategy
  • 2 Unit Introduction
  • 3.1 Understanding Consumer Markets and Buying Behavior
  • 3.2 Factors That Influence Consumer Buying Behavior
  • 3.3 The Consumer Purchasing Decision Process
  • 3.4 Ethical Issues in Consumer Buying Behavior
  • 4.1 The Business-to-Business (B2B) Market
  • 4.2 Buyers and Buying Situations in a B2B Market
  • 4.3 Major Influences on B2B Buyer Behavior
  • 4.4 Stages in the B2B Buying Process
  • 4.5 Ethical Issues in B2B Marketing
  • 5.1 Market Segmentation and Consumer Markets
  • 5.2 Segmentation of B2B Markets
  • 5.3 Segmentation of International Markets
  • 5.4 Essential Factors in Effective Market Segmentation
  • 5.5 Selecting Target Markets
  • 5.6 Product Positioning
  • 5.7 Ethical Concerns and Target Marketing
  • 6.1 Marketing Research and Big Data
  • 6.2 Sources of Marketing Information
  • 6.3 Steps in a Successful Marketing Research Plan
  • 6.4 Ethical Issues in Marketing Research
  • 7.1 The Global Market and Advantages of International Trade
  • 7.2 Assessment of Global Markets for Opportunities
  • 7.3 Entering the Global Arena
  • 7.4 Marketing in a Global Environment
  • 7.5 Ethical Issues in the Global Marketplace
  • 8.1 Strategic Marketing: Standardization versus Adaptation
  • 8.2 Diversity and Inclusion Marketing
  • 8.3 Multicultural Marketing
  • 8.4 Marketing to Hispanic, Black, and Asian Consumers
  • 8.5 Marketing to Sociodemographic Groups
  • 8.6 Ethical Issues in Diversity Marketing
  • 3 Unit Introduction
  • 9.1 Products, Services, and Experiences
  • 9.2 Product Items, Product Lines, and Product Mixes
  • 9.3 The Product Life Cycle
  • 9.4 Marketing Strategies at Each Stage of the Product Life Cycle
  • 9.5 Branding and Brand Development
  • 9.6 Forms of Brand Development, Brand Loyalty, and Brand Metrics
  • 9.7 Creating Value through Packaging and Labeling
  • 9.8 Environmental Concerns Regarding Packaging
  • 9.9 Ethical Issues in Packaging
  • 10.1 New Products from a Customer’s Perspective
  • 10.2 Stages of the New Product Development Process
  • 10.3 The Use of Metrics in Evaluating New Products
  • 10.4 Factors Contributing to the Success or Failure of New Products
  • 10.5 Stages in the Consumer Adoption Process for New Products
  • 10.6 Ethical Considerations in New Product Development
  • 11.1 Classification of Services
  • 11.2 The Service-Profit Chain Model and the Service Marketing Triangle
  • 11.3 The Gap Model of Service Quality
  • 11.4 Ethical Considerations in Providing Services
  • 12.1 Pricing and Its Role in the Marketing Mix
  • 12.2 The Five Critical Cs of Pricing
  • 12.3 The Five-Step Procedure for Establishing Pricing Policy
  • 12.4 Pricing Strategies for New Products
  • 12.5 Pricing Strategies and Tactics for Existing Products
  • 12.6 Ethical Considerations in Pricing
  • 13.1 The Promotion Mix and Its Elements
  • 13.2 The Communication Process
  • 13.3 Integrated Marketing Communications
  • 13.4 Steps in the IMC Planning Process
  • 13.5 Ethical Issues in Marketing Communication
  • 14.1 Advertising in the Promotion Mix
  • 14.2 Major Decisions in Developing an Advertising Plan
  • 14.3 The Use of Metrics to Measure Advertising Campaign Effectiveness
  • 14.4 Public Relations and Its Role in the Promotion Mix
  • 14.5 The Advantages and Disadvantages of Public Relations
  • 14.6 Ethical Concerns in Advertising and Public Relations
  • 15.1 Personal Selling and Its Role in the Promotion Mix
  • 15.2 Classifications of Salespeople Involved in Personal Selling
  • 15.3 Steps in the Personal Selling Process
  • 15.4 Management of the Sales Force
  • 15.5 Sales Promotion and Its Role in the Promotion Mix
  • 15.6 Main Types of Sales Promotion
  • 15.7 Ethical Issues in Personal Selling and Sales Promotion
  • 16.1 Traditional Direct Marketing
  • 16.2 Social Media and Mobile Marketing
  • 16.3 Metrics Used to Evaluate the Success of Online Marketing
  • 16.4 Ethical Issues in Digital Marketing and Social Media
  • 17.1 The Use and Value of Marketing Channels
  • 17.2 Types of Marketing Channels
  • 17.3 Factors Influencing Channel Choice
  • 17.4 Managing the Distribution Channel
  • 17.5 The Supply Chain and Its Functions
  • 17.6 Logistics and Its Functions
  • 17.7 Ethical Issues in Supply Chain Management
  • 18.1 Retailing and the Role of Retailers in the Distribution Channel
  • 18.2 Major Types of Retailers
  • 18.3 Retailing Strategy Decisions
  • 18.4 Recent Trends in Retailing
  • 18.5 Wholesaling
  • 18.6 Recent Trends in Wholesaling
  • 18.7 Ethical Issues in Retailing and Wholesaling
  • 19.1 Sustainable Marketing
  • 19.2 Traditional Marketing versus Sustainable Marketing
  • 19.3 The Benefits of Sustainable Marketing
  • 19.4 Sustainable Marketing Principles
  • 19.5 Purpose-Driven Marketing

Learning Outcomes

By the end of this section, you will be able to:

  • 1 Explain the role of marketing in the strategic planning process.
  • 2 Discuss the business portfolio and identify planning tools.
  • 3 Describe a SWOT analysis.
  • 4 List and describe marketing strategies based on analytics.

Explain the Role of Marketing in the Strategic Planning Process

To get a better idea of the importance of marketing in the strategic planning process, let’s imagine that you’re the owner of a manufacturing business that produces widgets. You’ve been able to recruit top engineering talent to design these widgets and source components from trusted, reliable vendors, and your manufacturing facility is efficient and can produce the widgets in a cost-effective manner. Sounds like a winning business, doesn’t it?

Well, the only thing we’ve left out of the equation for success is customers, and without customers, the finest engineering staff and manufacturing facility in the world won’t ring the bell in terms of profits or revenue. You need to determine who your customers are, what their needs and wants are, how you’re going to reach them, and how you’re going to persuade them to buy your widgets. That’s where marketing comes into the strategic planning process, and that’s why it plays a crucial role.

Marketing in the strategic planning process has several basic but critical functions:

  • First, marketers assist the strategic planning team in executing a marketing philosophy throughout the strategic planning process.
  • Second, marketers assist the organization in gathering and analyzing information necessary to examine the current situation (the first step in a gap analysis).
  • Third, marketers are responsible for the identification of trends in the marketing environment and assessing the potential impact of those trends. 24

Business Portfolio Definition

As noted above, many businesses have a single product or business unit. However, larger organizations such as Apple , Alphabet , General Electric , Meta , and Microsoft often have multiple diverse business units called strategic business units. Despite the fact that these SBUs report directly to the parent company’s headquarters, they typically develop their own vision statements, mission statements, objectives, and goals, and the strategic planning for these SBUs is performed separately and apart from other SBUs within the organization. 25 When companies have multiple products or business units, these comprise the business portfolio —the total group of product lines, services, and business units that the company possesses.

To give you a better sense of what a business portfolio entails, look at Figure 2.5 , which illustrates the products and services of Microsoft and how each offering contributes to the overall strategic plan of the company. 26 Microsoft reported $168 billion in revenue in fiscal year 2021, and each of its product lines (or strategic business units) contributes to this revenue in differing amounts. 27 It’s easy to see from this breakdown why each of these businesses under the Microsoft “umbrella” would have different strategic plans to execute within the markets they serve. You likely wouldn’t have one overarching marketing or business strategy for all of these SBUs because the markets for Office, Gaming, LinkedIn , and the other SBUs are likely very different and would require different strategies to reach and retain customers.

Analyze and Design the Business Portfolio

There are many reasons why an organization would establish separate business units or product lines as it grows. For example, if the current product line is in a market where growth is limited, it may choose to branch out to other product lines or markets. Alternatively, an organization may choose to expand into other product lines to take advantage of emerging opportunities.

Emerson Electric , headquartered in St. Louis, Missouri, has five business segments: Network Power, Process Management, Industrial Automation, Climate Technologies, and Commercial and Residential Solutions (i.e., tools and storage). These business segments provide products as diverse as hardware and software technologies; motors; fluid control systems; heating and air-conditioning products and services; and tools, storage products, and appliances for residential, health care, and food services. 28 When you consider divisions as diverse as these, it should be readily evident why each is a separate division with separate strategies to compete in its respective marketplaces.

Conversely, a business may choose to expand in areas in which it already has experience and can use the power of its core competencies to establish sustainable competitive advantage with new products in existing markets.

There are a few tools that can help determine which course of action is best advised given the current circumstances of the organization, the marketplace, and other factors. Let’s take a look at a few of them.

Boston Consulting Group (BCG) Matrix

The BCG matrix is a model developed by Boston Consulting Group that can be used to analyze a business’s product lines or SBUs and make decisions about which to invest in in the future and which they should try to minimize further investment in or even eliminate. The bottom line is that no business has unlimited funds to invest in its product lines, and the BCG matrix is a useful model in determining how to allocate money in terms of marketing, research and development (R&D), etc. to that portfolio.

As shown in Figure 2.6 , the BCG matrix considers both market share and market growth rate. The SBUs or products that have high market share in a high-growth market are called stars and are placed in the upper left quadrant. These are the opportunities that hold the most promise for the organization.

Conversely, those SBUs or products that have low market share in a low-growth market are referred to as dogs and are placed in the lower right quadrant. These are prime candidates for divestiture or elimination because they have relatively low growth potential, and although the business has significant funds tied up in them, they bring in virtually nothing in terms of revenues. Divestiture could also provide needed capital to invest in your stars or question marks.

Cash cows , in the lower left quadrant, are an interesting breed, so to speak. A cash cow is an SBU or product that has high market share in a low-growth market. They’re valuable to a business because they generate significant revenue that can fund other strategic initiatives or emerging opportunities. Incidentally, they’re called cash cows because the thinking is to “milk” these products for profits.

Those SBUs or products that have a low market share in a high-growth market are called question marks (sometimes also called “problem children”) and are placed in the upper left quadrant. Question marks are among the most complex decisions to be considered when developing a BCG matrix because a root cause analysis may be required in order to determine why these SBUs are, in fact, question marks. Obviously, with high-market growth, the market is strong, but there are one or more reasons why your organization hasn’t been able to capitalize on it and gain market share. Does the product line need more investment in order to move into the “star” category? Is competition so strong in this market that additional funding in terms of advertising campaigns or other marketing tactics render them useless? Is the question mark just a trend in which you can expect high growth without a lot of market share for a short period of time?

Once you have categorized each of your SBUs or products on the BCG matrix, you’ll have a crystal-clear vision of where each stands and can identify which you should prioritize and which need to be divested.

To better understand the BCG model, let’s do a simplified matrix for Apple and some of its products (see Figure 2.7 ). Because Apple has so many products and services, we’re showing only four hardware products in this matrix.

In this sample matrix, we’re going to place the Apple iPhone in the star category. You’ll recall from our discussion above that stars have relatively high market share in a growing market. Let’s face it: the iPhone is the shining gem of Apple’s portfolio. Even though Apple has diversified its product line, the iPhone is still responsible for 52 percent of the company’s revenue, raking in an astounding $192 billion in 2021. 29

Next, we’re going to put the iPad and the MacBook in the cash cow category. Remember that the BCG matrix is built on two parameters—market share and market growth. Both the iPad and the MacBook have relatively high market share compared to competitors, but the market for these products is not growing much anymore. 30 The Apple iPad had a 31.5 percent share of the global tablet market during the first quarter (down from 38 percent in the previous quarter), and the MacBook still holds popularity, garnering 15.3 percent of the market share. 31 Both the iPad and the MacBook are well-established products that continue to generate substantial income for Apple, and these products require relatively little additional investment for them to remain profitable.

Let’s move on to the question mark category. Remember that question marks have low market share in a high-growth market, and we’re going to place the Apple iWatch in this category. The iWatch has the potential to become as big of a hit as the iPhone, but the jury is still out because there are too many unknowns in the market. Global sales of smartwatches increased by 13 percent in the first quarter of 2022, and the Apple iWatch continues to lead in market share. 32 However, Apple will need to analyze its iWatch vis-à-vis its other products to decide if it should continue to invest in the product. 33

Finally, let’s move on to the dog quadrant of the matrix. We’re going to place the iPod in this category because market growth has slowed considerably as people use their phones to listen to music or podcasts. The iPod has experienced a shrinking market share as a result, and it wouldn’t make sense for Apple to continue to invest in the iPod. 34 As a matter of fact, Apple announced in May 2022 that it would discontinue the iPod Touch, while the touch-screen model launched in 2007 will remain on sale until supplies run out. 35

Link to Learning

Would you like to learn more about the BCG Matrix? Watch this brief video from Solve It Like a Marketer.

SWOT Analysis

SWOT is an acronym for a business’s strengths, weaknesses, opportunities, and threats, and it is a useful aid for zeroing in on a feasible marketing strategy. The purpose of a SWOT analysis is really quite simple. Marketers want to identify the strengths and weaknesses in the organization’s internal environment as well as the opportunities and threats that exist in the organization’s external environment. It is generally presented in the format seen in Figure 2.8 . You would complete the template with bullet points in each of the four quadrants.

A SWOT analysis will aid in taking advantages of the organization’s strengths and opportunities while avoiding (or at least minimizing) weaknesses and threats to its success. Realistically, some of the factors are in the control of the company (i.e., strengths and weaknesses), but other factors are outside the control of the company (i.e., opportunities and threats). Let’s consider each of these in a little more detail.

Strengths can be factors such as patents or trademarks possessed by the company that hinder competitors in participating in the market; a better cost structure than competitors; a talented, innovative staff; or strong brand recognition in the market. Strengths are internal to the organization, and they’re also positives. Questions to ask when developing this section may be: What do you do well? What unique resources you can draw on? Consider a company like Starbucks . If you were preparing a SWOT analysis for Starbucks, its strengths might include a strong brand image, solid financial performance, impressive growth in the number of stores, and an extensive international supply chain. 36

Weaknesses are also factors within a company’s internal environment, but these are hindrances to your success, so they’re categorized as negatives. Weaknesses may be difficulty in accessing capital or funding, outdated technology, an unmotivated workforce, weak brand recognition, or high levels of debt. Let’s go back to Starbucks. If you were preparing a SWOT analysis for Starbucks, some of its weaknesses may be high prices versus the competition and the imitability of its products. 37

Now we’ll switch over to external factors that affect the business. Opportunities are openings for something positive to happen if (and only if) you can capitalize on them. Opportunities can be moving into a new market segment that offers improved profits (like a snack food manufacturer moving into the health foods sector), competitors that have quality or delivery problems, or impending legislation that would favorably affect your organization if you’re able to capitalize on it. Once again, let’s go back to Starbucks. If you were preparing a SWOT analysis for Starbucks, some of its opportunities might be expansion in developing markets, a coffee subscription service similar to that offered by Panera Bread , and the introduction of new products and holiday flavors. 38

Finally, threats are anything external to your organization that can negatively impact your business. These may include supply chain problems, ongoing staffing problems, new competitors entering the market, or impending legislation that would negatively impact your organization, like tariffs. If you were doing a SWOT analysis for Starbucks, you might identify threats such as competition with lower-cost coffee sellers, tightening discretionary spending due to inflation, or the rising price of coffee beans. 39

Check out this video for a very simple example of a SWOT analysis.

When preparing a SWOT analysis, it is also helpful to compare elements by ranking strengths and weaknesses (internal factors) in terms of relative competitive importance. Marketers can also rank threats and opportunities (external factors) in terms of their likelihood and magnitude. 40

Earlier in this chapter, we pointed out the differences between corporate-level strategy, business-level strategy, and functional strategy. If you’re a fan of movies like Other People’s Money or Wall Street , you might think that corporate strategy focuses on hostile takeovers, mergers, and ruthless acquisitions.

The movie Moneyball is about a baseball general manager assembling a team by using computer analysis to hire new players. This is a great example of using analytics to inform strategy. Watch a clip of the movie here, where you see the analytics applied.

Market Penetration

When a company focuses on growing its market share in its existing markets, it is using what’s known as a market penetration strategy . This approach generally entails significant expenditures in advertising and other marketing efforts in order to influence consumers’ brand choice and create a brand reputation for the company, thereby increasing its market share.

In some mature industries (like soap, laundry detergent, or toothpaste), a market penetration strategy becomes a way of life because nearly all competitors are also engaged in intensive advertising and battle for market share. It becomes a way of life because companies fear that if they don’t advertise as much as or more than their competitors, they will lose market share.

To give you an idea of how fierce the competition is with a market penetration strategy, consider Procter & Gamble , which spent $4.7 billion on advertising in 2020. 41

Product Development

As noted above, a market penetration strategy focuses on existing products and existing markets. By contrast, a product development strategy involves the creation of new or improved products in order to drive growth in sales, revenue, and profit. Although the advertising expenditures involved with a market penetration strategy may be significant, they often pale compared to the expenditures involved in a product development strategy. This is because product development generally requires significant investment in R&D activities. 42

The automobile industry provides a good illustration of the product development strategy. Car makers generally refresh their models every few years to encourage car owners to trade in their old vehicles and buy the redesigned cars with the latest tech features such as driver assist, Wi-Fi hotspots, and Apple CarPlay and Android Auto. 43 At the same time, all the manufacturers are spending billions of dollars developing new electric vehicle models to meet ambitious goals for phasing out gasoline-powered engines.

Another great example of a product development strategy is Tide laundry detergent. Tide has undergone more than 50 formulation changes over the past 40 years in an effort to continually improve its product’s performance. The name always stays the same, but Tide has a “new and improved” formula with each new product release. 44

If you doubt the power of a product development strategy, the next time you go to the grocery store or supermarket, just look at how many “new and improved” products are on the shelves!

Market Development

A market development strategy involves searching for new market segments and uses for a company’s products. This strategy can involve the launch of its existing products into new markets or different geographical areas. In doing so, the company attempts to capitalize on the strength of the brand name it has developed in the existing markets and find new markets in which to compete.

Facebook is a great example of a market development strategy. It’s difficult to remember when Facebook wasn’t a household word, but Facebook started out as a small platform that enabled Harvard University students to compare headshots. The popularity of the platform spread to other college campuses, and eventually Facebook allowed nonstudents to join. It looks like the strategy worked—Facebook is now the largest social network in the world, with nearly 3 billion users! 45

To help you better understand these strategies, let’s consider each one from the perspective of one company— Harley-Davidson . If Harley-Davidson were to adopt a market penetration strategy, the company would focus on selling more Harley-Davidson motorcycles in the US market. If the company were to adopt a product development strategy, it would begin selling a new product such as biker clothing for children under the Harley-Davidson brand in the US market. Harley-Davidson is currently pursuing a market development strategy, with plans to develop a new motorcycle to manufacture and sell in China. Harley-Davidson’s diversification strategy might entail selling new products like children’s biker clothing in China for the first time.

Product Diversification

A product diversification strategy is still another tool that companies can use to improve profitability and increase sales of new products. This strategy can be utilized at both the business level and the corporate level. At the business level, marketers would expand into a new segment of an industry in which the company is already operating. 46 For example, consider Apple . The company launched its revolutionary iPhone in 2007, but it didn’t stop there. It has since diversified into tablets and other technology-related products. 47 At the corporate level, let’s consider a dine-in restaurant that adds corporate catering and perhaps a fleet of food trucks—both businesses outside the scope of its existing business.

There are three types of diversification techniques, as shown in Figure 2.9 .

Let’s look at each of these strategies in a little more detail.

The concept of concentric diversification revolves around the addition of similar products or services to an existing business. 48 If a picture is worth a thousand words, then an example has to be worth even more, particularly an example to which you can easily relate as a student. As you’re reading this chapter, consider book publishers, like Harper Collins , Simon & Schuster , or Penguin/Random House . These book publishers don’t only print the works of one author; rather, they have hundreds or perhaps thousands of authors’ works in their arsenals. These publishers will publish print books, e-books (like the one you’re reading right now), and audiobooks and may even sell the rights to some of the books for film and TV adaptations, allowing them to garner additional streams of revenue for one product. 49

Conversely, the concept of horizontal diversification involves making available to existing customers new and perhaps even unrelated products or services so that you can garner a larger customer base. 50 For example, consider a company that produces dental hygiene products like toothbrushes and dental floss. In order to increase sales to existing customers, the company may decide to introduce into the market a line of oral irrigators or teeth whiteners. These products are new to the company, but they still serve the same customer base as its existing products.

Finally, conglomerate diversification takes horizontal diversification one step further. Conglomerate diversification involves the development and addition of new products or services that are significantly unrelated. You’re not only introducing a new product, you’re introducing a new product that is completely unrelated to your existing line of business. 51 Consider General Electric when looking for an example of conglomerate diversification. General Electric started out as a lighting business, but over the years, it has diversified into medical devices, household appliances, aircraft engines, financial services, and more. That’s taking conglomerate diversification to a whole new level!

Blue Ocean Strategy

Learn about market-creating strategies known as the Blue Ocean strategy from Harvard Business Review , where it uses Cirque du Soleil as an example.

Knowledge Check

It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.

  • Opportunity
  • Market share and market growth rate
  • Market size and market share
  • The ratio of dogs to cash cows in the product portfolio
  • The potential for question marks to cross over and become stars
  • Question mark
  • Market development
  • Product diversification
  • Horizontal diversification
  • Product development

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Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction
  • Authors: Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman
  • Publisher/website: OpenStax
  • Book title: Principles of Marketing
  • Publication date: Jan 25, 2023
  • Location: Houston, Texas
  • Book URL: https://openstax.org/books/principles-marketing/pages/1-unit-introduction
  • Section URL: https://openstax.org/books/principles-marketing/pages/2-2-the-role-of-marketing-in-the-strategic-planning-process

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  • The Strategic Marketing Process: A Complete Guide

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A well defined and feasible marketing strategy makes meeting customer needs a likely and attainable goal. And while most companies do great marketing, only a few have created brand attachment and customer loyalty through their marketing practices and tactics.

The Strategic Marketing Process: A Complete Guide

© Shutterstock.com | PureSolution

In this article, we explore, 1) the definition and purpose of strategic marketing , 2) the three phases of the strategic marketing process , 3) guidelines for effective strategic marketing process , 4) problems to expect in the strategic marketing process , 5) p.e.s.t: trends to consider when implementing marketing strategy , 6) strategic marketing process simplified , and 7) why Apple’s strategic marketing process is genius .

DEFINITION AND PURPOSE OF STRATEGIC MARKETING

Strategic Marketing is a process of planning, developing and implementing maneuvers to obtain a competitive edge in your chosen niche. This process is necessary to outline and simplify a direct map of the company’s objectives and how to achieve them. A company wanting to secure a certain share of the market, should ensure they clearly identify their mission, survey the industry situation, define specific objectives and develop, implement and evaluate a plan to guarantee they can provide their customers with the products they need, when they need them. Of course, the central objective of any company will be customer satisfaction so they may dominate the market and become leaders in their industry and thus providing substantial business satisfaction. In order to do that, three phases of marketing strategy must be perfected to create delight in their customers and beat out the competition.

THREE PHASES OF STRATEGIC MARKETING PROCESS

1. planning phase.

The planning phase is the most important as it analyzes internal strengths and weaknesses, external competition, changes in technology, industry culture shifts and provides an overall picture of the state of the organization. This phase has four key components that will provide a clear diagram of where your company is and what it is doing.

  • Analyze competitors
  • Research company’s current and prospective customers
  • Assess company
  • Identifying trends in the company’s industry

Once this analysis is complete the results should be used as a basis for developing the company’s marketing plan, which should be measurable and attainable.

  • Marketing program – Once the needs of the customers have been determined, and the decisions have been made about which products will satisfy those needs, a marketing program or mix must be developed. This marketing program is the how aspect of the planning phase, which focuses on the 4Ps and the budget needed for each element of the mix.
  • Once the customer needs are understood, goals can be set to meet them, thus increasing the chances of success with new products.
  • Find points of difference: like your company’s unique selling point, each product should also have a certain set of traits or characteristics that makes it superior to the competitive substitute. For example, your product could be longer lasting, more accessible, more reliable or very user-friendly so the buyers will choose it over the competition each time.
  • Position the product: market so that in people’s minds your product is the “go to” for their problem. Through emotional and mental marketing customers will associate your brand with their solution and eliminate choice. For example, many mothers use “Pampers,” when referring to diapers, as this brand has been positioned as the go to in baby diapering needs.
  • Select target markets: based on the research and their commonalities, that way needs and goals are both met.
  • Price strategy : focuses on the list price, price allowances (reductions), discounts, payment periods, and credit contracts.
  • Place (Distribution) Strategy : the final ‘P’ in the marketing mix should focus on distribution channels, outlets and transportation to get the product to the customer when they need it.
  • Promotion Strategy : this element of the program should focus on direct marketing, advertising, public relations and sales promotions that create brand awareness.
  • Product Strategy : this element focuses on the features, packaging, branding and warranty of the product.

2. Implementation Phase

The implementation phase is the action portion of the process. If the firm cannot carry out the plan that was determined in the early stages, then the hours spent planning were wasted. However, if the planning was adequately and competently structured, then the program can be put into effect through a sales forecast and a budget, using the following four components.

  • Obtaining Resources – sums of cash to develop and market new products.
  • Designing marketing organization – there should be put in place a marketing hierarchy to properly see the plans to fruition.
  • Developing planning schedules – time needs to be allocated to specific tasks so they can be accomplished.
  • Executing the marketing plan – effectively executing the marketing plan will take attention to detail, and focus on the strategy and tactics defined in your marketing plan.

3. Evaluation or Control Phase

The evaluation phase is the checking phase. This process involves ensuring that the results of the program are in line with the goals set. The marketing team, especially the manager will need to observe any deviations in the plan and quickly correct negative deviations to get back on course; for example fluctuations of the dollar creates a lesser need for the product than in the past, then the production of said product should be repurposed for a new more desired item. And they should exploit the positive divergences as well, for example if sales are better than predicted for certain products then there could be more resources allocated to greater production or distribution of the same item.

A few ways to evaluate the effectiveness of your marketing strategy include paying attention to:

  • Strategy versus tactic – strategy defines goals and tactic defines actions to achieve goals.
  • Measurable versus vague – have milestones that define when you’ve achieved your goals.
  • Actionable versus Contingent – According to Inc.com : “ A strategic goal should be achievable through the tactics that support it, rather than dependent upon uncontrollable outside forces.”
  • Marketing strategy should be backed by a business plan with tactical moves to accomplish goals, or it is useless.

GUIDELINES FOR EFFECTIVE STRATEGIC MARKETING PROCESS

A well thought out plan for offering value and solutions to your target market allows the company to discover the needs of the targeted customers and fulfill those needs in a cost effective and timely fashion. This in turn allows for the marketing team to be able to measure a company’s value based on your ideal customer’s response to your product and strategy. Some guidelines to ensure this strategy is effective are:

  • Set measurable, achievable goals by ensuring they are clear, structured and measurable it will be easier to accomplish your purpose.
  • Base plans on facts and validated assumptions through market research .
  • Use simple, clear and precise plans to detail what benefits you will offer your clients and how. Customers are driven by needs and desires so a clear plan will target those to gain customer loyalty.
  • Have a feasible plan by using research to decide the best way to connect with and engage your ideal customers and then implement a plan your company can afford and carry to fulfillment to do so.
  • Ensure control and flexibility by customizing your business plans and goals to match the needs of the customers, as they determine the success or failure of your company.

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PROBLEMS TO EXPECT IN THE STRATEGIC MARKETING PROCESS

While creating the perfect marketing plan for your company, there are certain issues that could arise to deter the process. Here are a few possible issues to be prepared to face:

  • Organizational Issues such as Poor Assumptions : – assuming customer needs without validation, lack of skilled workforce to implement the plans once they are arrived at, loss of sight of customer needs during the planning phase and changing demographic of consumers.
  • Issues in the Marketing Department such as : inflexibility, performance assessment problems, coordination problems, poor information management and human relations issues.
  • General problems such as : trouble obtaining marketing feedback, issues related to cost of marketing and problems integrating collected information into plans.

P.E.S.T: TRENDS TO CONSIDER WHEN IMPLEMENTING MARKETING STRATEGIES

According to Business news daily , while industry related factors could affect a company’s performance, outside factors can also play a major role in the outcome of a business’s plans. To determine the role of the external factors, it is recommended that companies perform a PEST analysis. Below is a break-down of what the four factors analyze.

  • Political – this analyzes how legal issues and government regulations affect profit and consumer behavior. The major considerations of the political aspect are tax guidelines, political stability, trade regulations and embargos, employment laws and safety regulations. An example of this analysis and how it works is looking at the effects of political instability in a foreign market and how it affects your company’s plans.
  • Economic – this factor looks at the outside economic issues that affect a firm’s success. Companies should pay attention to economic growth, inflation rates, exchange, interest rates and local business cycles. Changes in interest rate could improve or decrease the company’s bottom line.
  • Social – demographic and cultural aspects affect whether a company can compete in the market or not. The social factor helps businesses to examine why customers purchase and what exactly their needs are. Issues to consider include lifestyle changes, health consciousness, environmental responsibility awareness, and attitudes toward work, education levels, population growth rates and country demographics. A certain shift in educational requirements may result in career changes that could reflect in changing needs of the customers.
  • Technical – this aspect considers how technology impacts product placement and marketing. Technology can bring advantages and challenges that will increase or decrease production level. Specific areas to consider are new technological advancements, the use of technology in marketing, the role of the Internet and the impact of the information technology changes. The introduction of the Internet has created an expectation of instant gratification in today’s consumer; so social media marketing has to be considered an option.

STRATEGIC MARKETING PROCESS SIMPLIFIED

According to Center for Simplified Strategic Planning , “ Any strategic planning process involves digesting information and some fairly difficult analysis. Good strategic planning should be simplified, not simplistic. ” And it should also answer the questions: what are we selling, to whom and how do we beat the competition? The first two questions will determine the focus of your overall business while the third will help you specify your strategies to market. The following five steps are essential to accomplishing a simple, effective strategic plan.

  • Identify objectives and determine mission
  • Do business environmental scan-including trends and competition
  • Devise strategy including SWOT , budget, marketing, price and distribution
  • Implement strategy-put your plan into action
  • Evaluate and modify- measure how close or far you are from objectives, track what works and change what doesn’t.

WHY APPLE’S STRATEGIC MARKETING PROCESS IS GENIUS

Apple has a significant competitive advantage over it’s rival because of it’s strategic marketing process. This company was voted overall winner of the 2012 CMO Survey Award for Marketing Excellence and before that it was listed in the top marketers group for five years in a row, as reported in Forbes.com . This competitive advantage is due to a thirty-five year old, 3-point philosophy employed by the Apple brand. The three points that constitute this philosophy include

  • empathy -authentic understanding of customer need,
  • focus- eliminate all unimportant opportunities and
  • impute – ensuring creative, professional presentation of products.

Listed below are some of the main strategies used by Apple to ensure they beat the competition in marketing, placement and brand awareness and loyalty.

  • Identify and respond to trends – though an innovative visionary, (the Apple Tablets ignited a market and were an industry leader) Apple’s team saw the digital trend shifting and responded with the iPad mini, despite Steve Jobs showing his disdain for smaller tablets in the past.
  • Analyze competition and adjust – Though Apple and Microsoft have always been in competition, the two technology giants have not passed up opportunities to collaborate. And while Apple worked with Microsoft to accumulate a very big share of the market, the company went ahead and added Intel chips into their computers to ensure they were a step ahead of the competition including Microsoft.
  • Innovation – Apple is usually first to market with products and visions customers love, and though it does not strive to be an innovator, usually focusing on specific strategy and enthusiasm, Apple is usually a leader in the market segment they occupy.
  • Emotional branding – Companies like Apple tend to have very specific strategic aims and work hard to ensure they are met. One such strategy can be seen as forming an emotional attachment to the products sold to ideal customers. By effectively integrating emotions into the marketing strategy, the brand recognizes positive results, such as customers spending nights lined up to be the first to own the newest product.
  • Enhanced distribution systems – Apple opened international retail stores and improved sales drastically. Now Apple representatives can be found in local malls and plazas to help solve customers’ issues and offer upsells and upgrades. This accessibility helps to build customer trust and helps make the decision process much easier when choosing a brand.
  • Excellent customer service – Apple brand is synonymous with excellence customer service, friendly environments, and great customer experiences. The secret lies in the acronym APPLE, which, according to Social media today spells out:
“ A pproach customers with a personalized warm welcome P robe politely to understand all the customer’s needs P resent a solution for the customer to take home today L isten for and resolve any issues or concerns E nd with a fond farewell and an invitation to return ”
  • Product placement – The Apple App store and iTunes compliment and extend the customer experience and the personality and reputation of the brand lead to loyalty and evangelism.

By incorporating these practices into your company’s marketing program and ensuring to follow through consistently, your company will be rewarded and recognized for its efforts.

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What Is Strategic Marketing?

Flori Needle

Published: April 14, 2021

Marketing is the actions you take to attract an audience to your business. You aim to get people interested in what you have to offer and share content with them to help them decide to do business with you.

marketers working together during a strategic marketing process

However, since marketing helps you attract people to your business, it’s essential to know how to attract them, and even more so who the people are that you want to attract to begin with. Without this critical information, it will be challenging to be successful in your marketing processes.

The way you can get this information is through strategic marketing. In this post, we’ll define strategic marketing and explain the different phases of the process that will help you effectively market your business, attract customers, and drive revenue.

Download Now: Free Marketing Plan Template [Get Your Copy]

What is the strategic marketing process?

The strategic marketing process involves conducting research and establishing goals and objectives that will maximize the effectiveness and success of your overall marketing strategy.

This process is beneficial as it helps you be more intentional with your marketing. You’ll be able to ensure that you’ve targeted the right audience, entered the right markets, and used the correct mediums.

You can think of it like this: strategic marketing is the butter you spread on toast. You can have plain toast as it is, but the butter enhances the flavor and makes it better. Strategic marketing ensures that your marketing campaigns are well-planned, effective, and shown to the right people.

Essentially, strategic marketing is the act of uncovering the information you’ll need to create an effective marketing plan and execute successful campaigns.

Strategic Marketing Process Phases

Given that strategic marketing directly influences many elements of your overall marketing strategy, it’s important to approach the process carefully. Below we’ll discuss the different phases of a strategic marketing process.

1. Planning Phase

The first stage of strategic marketing is the planning phase. It’s the most critical step, as it is the basis of your efforts. You’ll want to identify your business purpose, needs, and the goals and objectives you want to accomplish, as the entire process will help you achieve them.

Without this information, it will be challenging to progress to the next steps as you won’t understand the purpose behind your marketing efforts, which makes it even harder to create a solid plan that helps you succeed.

2. Analysis Phase

The analysis phase involves taking an outward look at how your company measures up to your competitors and your industry. During this stage, many businesses will conduct market research and competitor analyses .

Market research will give you an understanding of what your industry looks like, like current trends, market share , and an overall sense of the playing field. The information you discover should also validate your goals and objectives and let you know if they’re achievable. For example, if your overall business goal is to bring a new type of fork to market, but there is no industry or consumer demand for this new type of fork, your efforts won’t be worthwhile.

A competitor analysis will teach you the ins and outs of how your competition works, their position in the industry, and any possible gaps in the market that you can take advantage of to out-perform them. You can look at competitors’ customer testimonials to get a sense of what your target audience is looking for that they don’t provide and use that insight to build a product that your ideal customer already wants.

You’ll also want to take time to study your target audience and create buyer personas . Aim to gain a well-rounded understanding of who your customers are, their needs, desires, interests, and where you’ll find them within the market.

All in all, your analyses should give you an understanding of how competitive you are, and how competitive you’ll need to be in your final strategy to outshine similar businesses and become a viable market competitor.

3. Development Phase

Once you have a clear picture of your industry and how you should present yourself in the market, the next step is to develop your marketing plan. This stage is more closely related to the aspect of marketing you may be most familiar with, as you’re establishing the marketing tactics that are informed by your strategic marketing process.

This stage involves defining your marketing mix, which is how you’ll meet the objectives from phase one concerning the information you discovered during phase two.

A marketing mix is composed of four Ps: product, price, place, and promotion. Let’s go over some brief definitions of each:

  • Product: This is what your business is selling. Product marketers or managers typically do this work, but it involves researching (from phase two), development, and creating a product launch timeline.
  • Price: The price point at which you’ll sell to consumers. Pricing should also be informed by market research and reference to different pricing strategies .
  • Place: Where your product or service will be sold, like online or in-store.
  • Promotion: How you’ll advertise your product and introduce it to the market. For example, the different promotional channels (like social media) you’ll use to get your audience excited and entice them to do business with you.

You can think of it like this: say your end goal, developed during phase one, is to create a full-service CRM. Your discoveries in phase two have shown you that the current CRM your customers use isn’t scalable, which is a consistent pain point. They also want a more reasonably priced option.

This current phase would help you create, price, market, and promote your full-service, scalable, and affordable CRM to the correct audiences that are ready and eager to purchase what you have to offer.

4. Implementation Phase

The final phase of the process is when you begin to act on your marketing efforts. As the name suggests, you’ll start implementing the strategy you’ve developed based on your planning and market research. You’ll launch your product and begin seeing sales.

After implementation, it’s also important to take time to review your processes and make changes as necessary. As the market is constantly evolving, you may need to re-address certain things from phase two due to new trends or changing consumer interests.

Strategic marketing is a full circle process.

Although each phase has its unique requirements, it all comes full circle; the marketing mix you created during phase three is based on research from phase two. And, if you’ve put time and effort into your overall strategic marketing process, you’ll attract customers, drive revenue, and meet the goals and objectives you identified in phase one.

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COMMENTS

  1. Chapter 3: Strategic Marketing Plan Flashcards

    steps to a strategic plan 1: define the mission2: evaluate the internal and external environment3: set organizational or SBU objectives4: establish the business portfolio5: develop growth strategies

  2. Strategic Marketing Planning Flashcards

    1. Define Corporation Mission 2. Evaluate the Environment 3. Set Objectives 4. Establish Business Portfolio

  3. Chapter 16: Strategic planning, Goal-Setting, and Marketing

    1. Planning is a process designed to achieve goals in dynamic, competitive environments. As a new manager, what is the first step you will undertake to develop a strategic plan of action for a congestive heart failure program? a. Search the environment to determine changes that may affect the organization. b.

  4. Marketing Strategic Planning Ch.2 Flashcards

    The mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.

  5. 2.2 The Role of Marketing in the Strategic Planning Process -

    First, marketers assist the strategic planning team in executing a marketing philosophy throughout the strategic planning process. Second, marketers assist the organization in gathering and analyzing information necessary to examine the current situation (the first step in a gap analysis).

  6. The Strategic Marketing Process: A Complete Guide

    Strategic Marketing is a process of planning, developing and implementing maneuvers to obtain a competitive edge in your chosen niche. This process is necessary to outline and simplify a direct map of the company’s objectives and how to achieve them.

  7. What Is Strategic Marketing?

    Strategic Marketing Process Phases. Given that strategic marketing directly influences many elements of your overall marketing strategy, it’s important to approach the process carefully. Below we’ll discuss the different phases of a strategic marketing process. 1. Planning Phase. The first stage of strategic marketing is the planning phase.