Principles of Strategic Marketing Management

Principles of Strategic Marketing Management Organizations use Strategic Marketing to create a plan to better reach and satisfy customers while increasing profitability and productivity. Read on to learn more about what Strategic Marketing is and how businesses use it. Companies use Strategic Marketing to identify customer needs and to create a marketing plan to meet those needs and increase profit. Typically, an organization will create a written Strategic Marketing plan that dictates what type of marketing programs it will use during a given time frame and how those programs will be implemented. Marketing promotes your business and all that your business offers to your customers, brings customers to your business, and makes your business stand out in the crowd. A solid Marketing Strategy brings consistent traffic and a constant flow of customers to your business. TASK 1 Principles of Strategic Marketing Management The principles of Strategic marketing deals with the big picture marketing planning. It analyses how a company can best satisfy its customers and make a profit  at it. Strategic marketing planning is directed from the top of the company and is extremely important in any for-profit organization. Several key principles govern strategic marketing. History of TARIK FOODS: I am going to construct a strategy on a grocery store (TARIK FOOD) in east London market. We aim to make the selection process through and challenging for a number of reasons, firstly to make sure us employee those people that are right for the role and just as important who will fit in with TARIK food culture. TARIK food started life in 1995 when Mar. TARIK started selling surplus groceries from a stall in the east of London Mr TARIK made a profit of  £1 from sales of  £4 on his first day. The TARIK brand first appeared two years later in 1997 when he bought a shipment of Asian stuff food from Pakistan. The nature of this business is sole proprietorship. Though there are so many grocery stores like TARIK FOODS, Vijays Store, Khan Super Food, Johan Supermarket Store and Sainsburys. People demand some change in their taste with higher quality food at lower price. So, we need competitive edge in the grocery market. Thats why we are going to launch something new according to consume r requirement in better way! This differentiation supposes to be a big profit for me. Growth of TARIK Food in 1999 represents increase of 4% compared to 1998. Growth in 2005 and 2006 represent 7% compared to 1999. Growth is forecasted at the same rate in 2010. The role of strategic marketing in TARIK FOODS As companies strive to ensure future growth and profitability, they are turning to their marketing organizations to accelerate and guide their paths. Marketing is expected to provide a competitive advantage in shaping not just brand and corporate positioning but also in driving corporate strategy and setting the agenda for innovation and growth. Marketing plays an important role in the strategic planning process for many organizations. Although some marketing positions are represented at the corporate level, most are at the functional level within the business units of an organization. As shown in Exhibit 3-3, however, marketing is involved in strategic planning at all organizational levels in TARIK FOODS Strategic marketing is describing the the marketing activities that are affecting the functioning of the TARIK FOODS in the competitive market of food products. The role of strategic marketing can be described in the three basic types and functions. First : This helps everyone in TARIK FOODS towards the market and the customers. Thus they are responsible to excute the marketing philosophy throughout. Second :- This help gather and analyse the information required to examine the current situation , identify the trends in the marketing environment for TARIK FOODS and assess the potential impact of these trends. Third :- The role of marketing is varied in the TARIK FOODS . For it is a organisation which is driven by the marketing philosophy , so it plays a key role in the strategic decision making. The trend is pushing towards the strategic marketing and its planning responsibility further down the organisation, which is increasing the clout in the organisation`s strategic planning process. Processes involved in strategic marketing in TARIK FOODS Setting up of marketing goals.  Once they have decided to market their products, they set realistic and measurable goals to achieve over the next 18 to 24 months. This time span allows them to plan activities around community events that are in line with their marketing goals. For example, TARIK FOODS might help sponsor an annual walkathon for breast cancer or speak at a nearby communitys annual health fair. Because of the rapid changes occurring in the health food and care environment. TARIK FOODS dont recommend planning specific activities more than two years in advance. Conduct market research.  The purpose of market research is to draw a realistic picture of their practice, the community they serve in and their current position in that locality . With this research, TARIK FOODS can make fairly accurate projections about future growth in the community, locality and Region and as well as identifies the competitive factors and explore non-traditional opportunities   Determine a budget.  Before TARIK FOODS can decide what specific marketing strategies they want to implement to achieve their goals, they examine ther financial information and come up with a marketing budget. Marketing budgets vary by the type of market a practice is in, the age of a practice and whether the practice has marketed before. Develop an implementation schedule.  An implementation schedule is a time-line that shows which marketing actions will be done when and by whom. TARIK FOODS decides the schedule should also include the cost of each marketing action and how it fits into the budget estimates for the 24-month period. While the management of TARIK FOODS creates the schedule, they carefully consider how the activities will affect the current practice operations and whether there are sufficient resources (such as staff, time and money) to accomplish the necessary tasks.   Creating an evaluation process.  The management of TARIK FOODS belives in the the value of a marketing plan is its effectiveness, which requires deliberate and timely implementation  and  monitoring and evaluation of results. Thus they pay importance to measure their results against the standards they had set in establishing your goals.This helps them achieve the said process laid down by them. Link between strategic marketing and corporate strategy in TARIK FOODS In TARIK FOODS the Corporate structure is very well laid and thus each and every strategies are linked and are co-releated to each other . This helps them to achieve each and every goal and the laid down of various marketing and organistaional stratergies very effectively . Corporate strategy is the  overall  scope  and  direction  of a  corporation  and the way in which its various  business operations  work  together to  achieve  particular  goals. Where as Strategic marketing is promotes your business and all that your business offers to your customers, brings customers to your business. In TARIK FOODS we can see that that the management which is promoting its business with the techniques of the strategic marketing , is also simultanesouly incorporating the said similar type of guuodelines in some of its corporate environment , which is controlling the few other branches of the stores and distributon and control of its staff. So it is very obvious that the lin between the corporate and the strategic marketing is evident. TASK 2 Tools used to develop a strategic marketing strategy In TARIK FOODS the management follows the following chart which is best describing the strategic marketing that they are using in oreder to develop and promote and bring in the growth for the organization . They are at present using the 5 Step Planning Process . Below here is the chart which describes it the best. C:UsersdineshDesktopplanprocess.jpg 2.1) The Models used in strategic marketing planning in TARIK FOODS SWOT Model : The SWOT tool is one of the most important tools in strategic marketing.  Ã‚  It is also one of the most maligned and misunderstood.  Ã‚  90% of the SWOTs that we see are done badly and have little use in developing strategy. SWOT means Strengths, Weaknesses, Opportunities and Threats.  Ã‚  Done correctly , it should provide a one-page summary of your entire market audit and point towards the key issues that need to be addressed in the marketing plan. This simple tool will help you undertake your own SWOT effectively and provide a professional situation summary in your marketing plan.   McDonald Marketing Plan :- 2.2) The Link between strategic positioning and marketing TACTICS IN TARIK FOODS Strategic positioning is Primarily, strategic positioning is a differentiation tactic by customer segment, with the goal to dominate one market niche as much as possible, thus matching production costs, locations, price and product to maximize the ROI on that combination. Where as Marketing tactics is the tactics that are used by the TARIK FOODS or say any organization for its promotion of a particular product. In TARIK FOODS the whole concepot is to focus on the dominance of the market in the area and the adjoining areas in the particular segment of food business that they do, thus they lay down their marketing tactics in sucha manner that they bring out the best outcome from the straatergies of marketing that they lay down that helps them position their own organization at a place that helps them to expand their profits and help them grow and be positioned at a dominating position in the market. 2.3) Analyse the merits of relationship Marketing in TARIK FOODS strategic marketing strategy Retaining customers for the long-term offers always benefits this is what TARIK FOODS has in mind when the stratergies are laid down by the management. The aim is for the company to obtain life time customer. Some of the merits of relationship marketing which TARIK FOODS belives is it includes :- Loyal customers will recommend your business to others, thus expanding your business for you. Loyal customers are willing to try some of your new products, because they trust you. Customers will be willing to pay more for your services/products if there are adjustments in pricing because they are loyal to you and trust your services/products. Loyal customers will tell you about problems with your products/services enabling to improve your products/services. The ultimate benefit will be an increase sales, market share and dominance. Task 3 Using of the strategic marketing techniques In TARIK FOODS the appropriate use of the strategic marketing techiniques is very essentioal for the success of the branch. As they belive in dominating the market , so they have this thing in mind that they have to use the strategic mareting techniques to the success as its implementation will only bring out a result. 3.1) Marketing techniques by TARIK FOODS There are a few small types of marketing techniques but very effectively used by the TARIK FOODS , this ascertain growth opportunities in the market for TARIK FOODS. The below mentioned techniques are used by TARIK FOODS :- Outdoor Advertising:  Hoardings and roadside boards are put up so that displays their exsistance and their current offers. This is quite effective for displaying a marketing message or introducing a new brand among public . The Management believes that the probability of message transmission is strong with outdoor advertising. Brochures and Leaflets:  Brochures and leaflets let them reach out to specific customer group through  the direct marketing, means  these can be distributed by hand to specific groups of people. This allows the management a guaranteed message delivery.May it be a particular offer that is running in the outlet or say a particular rate reduction in the offering. Internet Search Engine Marketing:  This specific type of marketing lets them reach out to targeted audiences with specific interest for their variety of eatable products and also lets the customers know about their customer service experiance. This often leads to product awareness and even sales in many cases. Search engine optimization and paid search marketing are two most effective methods utilized by TARIK FOODS for the stratergy of their marketing. 3.2) Plan how to use marketing strategy options in the market where tarik foods is operating MARKET DOMINANCE STRATEGIES Looking at the way the area has been dominated by TARIK FOODS the market dominance strategy is the one which will suit the management style of interest for them . As they have been dominating the market in the area, as well as in the surrounding also. Typically there are four types of market dominance strategies that they should consider: They are à ¢Ã¢â€š ¬Ã‚ ¢ Market leader: It typically is the industry leader in developing innovative new business models and new products (although not always). Of the four dominance strategies, it has the most flexibility in crafting strategy.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The main options available to TARIK FOODS are: Expand the total market by finding   Ã‚  New users of the product or more usage on each use occasion Protecting TARIK FOODS existing market share by: Developing new product ideas and improved customer service and improved distribution effectiveness as well as reduce costs Expand TARIK FOODS market share: By targeting one or more competitor and without being noticed by government regulators à ¢Ã¢â€š ¬Ã‚ ¢ Market challenger:- A market challenger is a firm in a strong, but not dominant position that is following an aggressive strategy of trying to gain market share. It typically targets the industry leader (for example, Pepsi targets Coke), but it could also target smaller,more vulnerable competitors. TARIK FOODS should ssess the strength of the target competitor. Considering the amount of support that the target might muster from allies. Choose only one target at a time. Find a weakness in the target Position. Attack at this point. Consider how long it will take for the target to realign their resources so as to reinforce this weak spot. Launch the attack on as narrow a front as possible. Whereas a defender must defend all their borders,an attacker has the advantage of being able to concentrate their forces at one place. Launch the attack quickly, and then consolidate.Some of the options open to a market challenger are: price discounts or price cutting line extensions Introduce new products Reduce product quality Increase product quality Improve service Change distribution Cost reductions and Intensify promotional activity à ¢Ã¢â€š ¬Ã‚ ¢ Market follower:- A market follower is a firm in a strong, but not dominant position that is content to stay at that position.The advantages TARIK FOODS will derive from these strategies are: No expensive RD failures   No risk of bad business model   Best practices? are already established   Able to capitalize on the promotional activities of the market leader   Minimal risk of competitive attacks Market nicher:- In this niche strategy TARIK FOODS should concentrates on a select few target markets. It is also called a focus strategy. TARIK FOODS tend to be in high value added market and are able to obtain high margins. TARIK FOODS tend to be highly focused on a specific market segment. TARIK FOODS tend to market high end products and are able to use a premium pricing strategy. TARIK FOODS tend to keep their operating expenses down by spending less on RD, advertising, and personal selling. 3.3) Create appropriate strategic marketing objectives for the market where TARIK FOODS is operating TARIK FOODS should look into the following strategic marketing objectives :- Purpose of setting OBJECTIVES is to  Convert TARIK FOODS into market performance targets  creating yardsticks to track market/sales performance. Establish performance goals requiring stretch  . Also they should push firm to be inventive, intentional, focused   products/services setting CHALLENGING but ACHIEVABLE objectives  such as SALES MARKET   SHARE DISTRIBUTION PROFIT/SALES   RATIO TWO TYPES OF OBJECTIVES NEEDED Outcomes that relate to improving firms financial performance Outcomes that will result in greater competitiveness stronger long-term market position Financial Objectives Strategic Marketing   Objectives example :- STRATEGIC   MARKETING   OBJECTIVES improve   market   share position as the number one .  Build a strong brand name   in growing   market develop new   products that women need and want.  Explore the market   to develop   international   market.  Increase   the   distribution   coverage to   maximize   sales.Increase   the   gross   profit   margin   by   Ã‚  5 %. CRAFTING A MARKETING   STRATEGY Strategy-Making concerns HOW to  develop strategy   to   achieve   Ã‚  desired the brand   acceptance   Ã‚  objectives   Position all   products to   win a competitive advantage   devise   a   channel   strategy   to   meet   outsmart   Ã‚  competition and devise   a   incentive   strategy   to   Ã‚  stimulate   the   trade/distributors also devise   a   retail   strategy   Ã‚  to   Grow the company   business Task 4 Changes in the marketing environment   Ã‚  Marketing environment comprises of the combination of two words marketing and environment. Marketing means responding to the needs and demands of the consumers to provide optimum satisfaction. Similarly environment refers to external factors influences and organizational power which is related to the aim and effective working of a firm. Thus marketing environment refers to external or macro factors and forces which not only influence a company but also the components which affect the consumers analyzing its trend and impact on the operations and performance of the company. 4.1) Impact of changes in the external environment on the marketing strategy of TARIK FOODS The impact of EXTERNAL ENVIRONMENT has a very big change on the marketing stratergies in TARIK FOODS Considering the taste : Looking at the type of the people that live close by in a specific area the management in TARIK FOODS , takes utmost care while laying down the selling stratergy, so that the likes and dislikes of the people who will be eating and buying are matched appropriately. Atmospheric Change : The Cliate change forces the TARIKK FOODS to sell those food stuff which are the thing that are more preferred by the people who eat and buy the products . As this enables the management to get a high amount of sales for achieving the stratergic targets of their strategic marketing . 4.2) Conduct an internal analysis to identify current strengths and weaknesses in TARIK FOODSs marketing strategy Looking into the swot analysis of the strengths and weaknesses of TARIK FOODS , it can be observed the following. SWOT analysis of TARIK FOODS Weaknesses On performing a SWOT analysis of TARIK FOODSs the weaknesses,that can be seen are like Its very small in the amount of business it does when compared with the big wigs in the same industry Its serving a few selected categories of people , where in a larger chunk of people are left out Its looking more towards the market dominance and less towards the customer service TARIK FOODS is bound to reveal several weaknesses. One example, of many, is the amount of fossil fuel used in its transport network. With increasing oil prices,   TARIK FOODS needs to keep a close eye on transport costs. Another weakness come from TARIK FOODSs dependence on the UK grocery market. Hence, it is increasing its foreign outlets and selling other goods. SWOT analysis of TARIK FOODS Strengths TARIK FOODSs strengths in grocery retail allow it to compete easily with local businesses . This has led to its brand name and financial power becoming strengths in themselves. This has led to many more stores being built at the nearby areas as well, leading to geographical strength. The following strengths can be seen : The ability to perform with terms of revenue generation The abilty to deliver to customer at times when the other stores cant deliver The model of successful implementation of the Strategic marketing techniques. 4.3) Propose strategic marketing responses to key emerging themes TARIK FOODS marketing strategy The responses to the strategic marketing of the key themes that are emerging from TARIK FOODS , marketing strategy are very special in terms looking at their market capture in the area. They are also having a very good and healty competition in the industry , which is giving a run for the money to even the best known , international brands of food outlets and the product selling industry with in the area.