Summary
This text deals with the relationship between marketing and strategic planning from the perspective of creating a marketing plan. You will be able to know the basic elements that the managers of the marketing departments must include in this plan such as: mission statement, statement of objectives, analysis of external and internal factors, marketing strategies, strategies of the elements of the marketing mix and finally the alternatives to take strategic directions. The text will address the aforementioned topics from a business and theoretical approach.
Strategic Marketing
introduction
This work contains information on the development of the marketing department and the tools used for its operation. In this document we will briefly analyze the marketing plan based on the contributions of the main writers on the subject. We will also emphasize the three most common competitive advantages: low costs, market niche and differentiation. It also contains information on the basic structure for the development of the marketing plan. Finally the reader will know the main concepts that involve the study of marketing as a discipline for its practical application.
II. Background
The historical themes of marketing are the basis for the evolution of new marketing practices; however current practices must be the focus of the new management professional in order to compare past mistakes with present solutions.
Marketing is a discipline that currently includes topics such as: public relations, product design, strategies for the product cycle, competitive advantage or design of advertising campaigns.
Within the commercial world in which both wholesalers and retailers, small or large companies are debated by the market, differentiation strategies, market niche or low costs are necessary. The strategies outlined above are the foundations of strategic marketing that is based on strategic planning.
Planning is the process of formulating the basis on which the company will start its path, to plan it is necessary to investigate and investigate the possibility of our company being successful. Planning is the same theory that everyday life involves from having a party with friends to planning a trip with the family.
The planning includes topics such as mission, vision, objectives, research, budgets and those topics that must be anticipated before starting the operation of the company.
It is necessary to mention that planning is the first stage of the administrative process and its position is mechanical administration, that is, the step before trying to compete in the market or before launching our company to the knowledge of our clients.
Marketing planning is part of the core study that we will analyze because its knowledge is essential for the marketing department. Marketing planning is understood as the "design of activities related to the objectives and changes in the market environment" (Lamb, Hair and Mc Daniel 2011, pp.36)
Carrying out an analysis of the concept shared by the authors, we can determine two approaches: monitoring of objectives and market environment.
After understanding the basic concept of marketing planning, we are left to enter the world of marketers and administrators, a world where creativity, management effort and continuous improvement are the tools towards financial success.
III. Development
The interest of communicating an idea, communicating a promotion, advertising a product or selling a service is a tool of the current marketer and administrator. Other subjects such as market research, sales techniques, public relations, brand design or distribution are the competence of marketing.
For the reader's knowledge, we present in an enunciative way the types of marketing that are known:
- Commercial or lucrative marketing Social marketing Marketing in non-profit organizations Marketing serving the administration of public services Political marketing (Fisher 1988, pp. 39)
This text will revolve around commercial marketing, which according to Laura Fisher in her book "Marketing" defines as:
"It is one that sells articles and / or services with the aim of obtaining economic profit" (Fisher 1988, pp. 11). Marketing implies a social context because it is interested in consumer behavior in an environment where it does not develop individually but according to the influences of the environment. Marketing has different conceptions but in no case is it allowed to confuse the term marketing with advertising or with a single tool of this discipline. According to Philip Kotler, known as the father of marketing, he defines the concept of marketing as “the social and administrative process by which groups and individuals obtain what they need and want through generating, offering and exchanging valuable products with their peers. »(Kotler 2009, pp.7).
Market research is an example of social application as it involves the evaluation of consumer preferences about a market or product. Conceptually, market research refers, according to Laura Fisher, to: “knowing who are or could be potential consumers or clients; identify their characteristics… ”(Fisher 1988, pp.9)
On the other hand, the American Marketing Association (AMA) defines market research as “The identification, collection, analysis and dissemination of information in a systematic and objective way, with the purpose of improving decision-making related to the identification and solution of marketing problems and opportunities ”.
Within the administrative approach we can find the decision-making made by marketing managers. Analyzing companies from their organizational structure, we can deduce that large corporations have executives exclusively dedicated to the marketing area and even personnel specialized in some of the aforementioned topics. However, from the local and national point of view where small and medium-sized enterprises are presented, it is rare to find organizations with well-developed marketing departments.
According to Forbes magazine, 90% of small companies do not have a business plan, much less a marketing plan (Morán 2013). However, the development of marketing strategies at present is not a concept that has to be associated with high costs or a utopia for the small business owner or the entrepreneur, since the advance in electronic tools has allowed the action of communicating to take on importance. in the so-called social networks since the cost that is generated is minimal and can even be without any cost.
From an internet search, various magazines, forums for entrepreneurs or sites authorized by the federal government expose ideas or "tips" under the theme "low cost strategies" or "marketing for SMEs."
From a general approach, the marketing department is considered as part of the basic departments for the operation of a company. According to Lourdes Munch Galindo in her book "Management Fundamentals" the marketing department:
It focuses on bringing together the factors and facts that influence the market, to create what the consumer wants, wants and needs, distributing it in such a way that it is available to them at the right time, in the right place and at the most appropriate price. (Munch 2009, pp.62).
It should be noted that it is the responsibility of the marketing management to delineate the importance of the mission statement. The mission statement is addressed by different authors therefore we will analyze three of these:
“The mission statement is a lasting definition of the object of a company that distinguishes it from other similar ones. The mission statement indicates the scope of a company's operations in terms of products and markets ”(Contreras 2001, pp.9) Therefore, we can agree that the mission is the central purpose of the company assuming that the company is it creates for an indeterminate time and during that period the reason for its existence is the same since its creation. The mission statement must indicate the difference between one organization and another (competition), that is, indicate the quality that makes an organization unique, such as speed of service, low prices, product quality or safety of the consumer.
According to Kotler in his book "Marketing Fundamentals" the mission statement is the "expression of purpose of the organization: what it wants to achieve in the larger environment" (Kotler and Armstrong 2008, pp.38). Additionally, it recommends that the construction of this be oriented towards the market, that is, in terms of satisfying the needs of consumers.
It is also advised that the mission statement be made about the market to be served, always taking care not to fall into marketing myopia. Marketing myopia is "approaching the business from the product perspective and not from the market perspective" (Baena 2011, pp.52)
Finally, we enunciate the definition provided by Fred R. David in his book "Concepts of strategic management": "the mission statement is the" reason for being "of a company, it is essential to establish objectives and formulate strategies effectively" (Fred 2003, pp.59). The entrepreneur who decides to start a business must first answer the question What business is he in? In addition to indicating What is the reason for your business? This answer can be resolved based on the benefits that you hope to bring to your current and potential clients, you should avoid, as we have mentioned before, falling into marketing myopia.
With the contributions of the previously analyzed authors we can conclude that the mission statement is the first element of marketing planning, it is essential to define the strategies of our company and it is defined according to the benefits that we intend to offer to the market, that is that is, meet the needs of the market.
The mission statement is an important step; However, it is not the only basic element that should be reflected in a marketing plan, therefore we continue with the tools for marketing management.
To determine what facts or factors influence consumer purchasing decisions, we go to the study of market behavior, that is, we carry out a study or market research. Marketing uses the aforementioned tools to achieve a single purpose "to satisfy the needs of consumers."
The consumer matters to us not because he is our source of income but because he is the most objective evaluator of our product, if we achieve satisfaction we have the best product, otherwise it is necessary to change the course of our decisions. The evaluation of the marketing conditions in our company can be done through a marketing audit. The marketing audit is "a complete systematic and periodic evaluation of the objectives, strategies, structure and performance of the marketing organization" (Lamb, Hair and Mc Daniel 2011, pp.49) Based on this evaluation we can execute the corrections either in budgets, strategies or the modification of the structure of the organization.There are companies that in extreme cases make the decision to carry out an “organizational or process reengineering” in both cases the costs are usually high; however, the benefits are greater as this decision is often applied at critical times and the results can range from increasing competitive advantage to improving the quality of the company.
Audits are evaluations that are carried out in the marketing, human resources or accounting department for the aforementioned purposes: to verify the performance of the organization or the area. It is recommended that any application that is complete be carried out independently, that is, that the auditor is not part of the organization to obtain greater objectivity in the results.
However, before conducting a marketing audit, it is necessary to know the marketing management tools to manipulate them in such a way that offers benefits to the organization, either through greater demand for the product, greater market share or increased sales. Utility.
The basic tools are those contained in the marketing mix or also known as the 4P's; product, place, promotion and price. The marketing mix according to the American Marketing Association (AMA) are "controllable variables that a company uses to achieve the desired level of sales in the target market"
The 4 elements of the marketing mix are:
- Product: the combination of goods and services that the company offers to the target market Price: is the amount of money that customers have to pay to obtain the product Square: also known as distribution includes the activities of the company that make the product is available to target consumers.Promotion: involves activities that communicate the benefits of the product and persuade target customers to buy it. (Kotler and Armstrong 2007, pp.60)
The 4 elements of the marketing mix are manipulable and its correct combination is intended to offer benefits to the company. They are tools of the marketing director because their decisions should be based on these variables.
The 4 variables are understood more clearly when applied in market research, the price is evaluated to know if consumers are satisfied with it or consider that the monetary value to pay is greater than the benefit they obtain. The product in the market study implies knowing if the consumer satisfies their needs or desires with the acquisition of it. The study of promotional sources such as brochures, posters, television advertisements or online media provide us with information about the medium with the greatest impact or influence it has had on consumers. Finally, we study the distribution to consider whether the consumer acquires their product on time and at the precise moment.
Against this background, product, price, place and promotion strategies are created. The strategies range from lowering prices through low-cost production to offering promotions to make the purchase of the product attractive. On the other hand, the promotion can be seen as the means or the ideas that our message expresses towards the consumer, the more concrete and attractive the communication, the more favorable it will be. The product has its strategy in creating added value, that is, turning our product into an idea superior to that of our competitor. Finally, distribution can be understood as the relationship that the company maintains with its market, for example, companies trying to expand their market try to introduce their products to other market segments.The purpose of distribution is to bring the product to the customer.
However, the application of these tools that the marketing mix entails does not imply the guarantee that our product is the most profitable. Given this, the concept of situational analysis is introduced into the administration, which refers to the analysis of the internal and external environment in which the sale of the product or service takes place. This analysis is better known as the SWOT analysis which involves a combination of the strengths, weaknesses, threats and opportunities until obtaining the SWOT matrix. This analysis is part of the third step of the marketing plan. Its definition is “to identify the strengths (F) and the opportunities (O), in addition to examining the weaknesses (D) and the threats (A)” (Lamb, Hair and Mc Daniel 2011, pp.38).The SWOT matrix is transcendental for organizations and even for personal evaluation in the workplace. The strengths indicate the variables that can be manipulated by the company, for example: the lack of age of a company. The weaknesses are also part of the internal scope but indicate the negative variables that the company can manipulate, for example: the lack of training of sales personnel. On the other hand, opportunities and threats are external factors that cannot be modified by the will of the organization. Taxes are an example of threats.The weaknesses are also part of the internal scope but indicate the negative variables that the company can manipulate, for example: the lack of training of sales personnel. On the other hand, opportunities and threats are external factors that cannot be modified by the will of the organization. Taxes are an example of threats.The weaknesses are also part of the internal scope but indicate the negative variables that the company can manipulate, for example: the lack of training of sales personnel. On the other hand, opportunities and threats are external factors that cannot be modified by the will of the organization. Taxes are an example of threats.
The marketer or administrator ends up identifying the factors that favor him and those in which he must work hard to eliminate them within the category of "risky". However, the reader can see that after defining what makes us strong and what sinks us into the market, we can identify something unique as a company: our competitive advantage. We say that we have a competitive advantage when we understand that as a company we compete with similar companies or of the same line of business in which "we win customer loyalty." Theoretically, competitive advantage "is superiority over competitors obtained by offering consumers more value than what they offer to competitors" (Armstrong and Kotler 2008, pp.646)
Business competition offers the customer the possibility of comparing two organizations in reference to the additional value that each one brings, for example: delivery time of a product, frequent prices or discounts, free transportation or the guarantee of product quality. This value will offer us a unique attraction that will be the center of consumer attention and will allow us to be that consumer's preference over the competition. Without losing sight of the steps we have followed after analyzing our market situation or also known as tracking or scanning the environment, we proceed to identify our advantage.
Its classification is designated according to its focus: low costs, market niche and differentiation. This classification is adopted both by Philip Kotler in his book "Marketing Fundamentals" and by authors Charles Lamb, Joe Hair and Carl Mc Daniel in their book "Marketing." The competitive advantage of low costs is translated as the decrease in costs as a cause of the acquisition of low-cost raw materials, the contribution or donation of material for the company or the production under technology conditions that allow the reduction of these. The low cost advantage does not imply that the quality is poor compared to products made from higher cost material. The intention of this strategy is to sell a product or offer a service at a lower price than the competition.
The competitive advantage of differentiation is to add a quality that can be served by the target market as the only one in the market. (Lamb, Hair and Mc Daniel 2011, pp.42) This attention from the market influences in such a way that the price of the product moves to a second place of importance. Differentiation can be seen as the inclusion of new technology to a product, new tools or uses to a product.
The niche market or segmentation advantage emphasizes the unique attention to a group of people with similar characteristics, for example: people of a specific age range, boys, girls, etc. This classification can be demographic, geographic, behavioral, or psychographic.
However, the problem is not solved by creating competitive advantage but by maintaining said strategy for the life of the company. The competitive advantage culminates until the competition succeeds in copying the differentiating strategy. We understand that competitive advantage is "the advantage that the competition cannot copy" (Lamb, Hair and Mc Daniel 2011, pp.42) Therefore the recommendation for entrepreneurs is to avoid copying the advantage of our competition since this implies risking Let the competition start a strategy war in which you could be the one affected. If you really want to create a sustainable advantage, create one according to your company and with the stamp of originality.
To finish with this text on marketing management with application in strategic planning, that is, strategic marketing, we need to locate ourselves at the critical point of every administrator or marketer: making decisions.
The decision to take is part of the strategic direction, in summary we are interested at this moment in making a decision based on the above. The decision is made according to the philosophy of the organization and based on the time or benefits expected. For example, if you expect to first obtain the profits or generate participation, this process is joint; therefore, it is understood that by generating participation it is likely to obtain better profits. (Lamb, Hair and Mc Daniel 2011, pp. 42)
There are 4 courses to choose from considering the above: market penetration, market development, product development and diversification. These 4 decisions are integrated in the book by Charles Lamb, Joe Hair and Carl Mcdaniel in their book "Marketing":
- Market penetration: marketing strategy that seeks to increase market share among current customers. Market development: marketing strategy that encompasses attracting new customers for current ones. Product development: marketing strategy that encompasses the creation of new products in new markets Diversification: sales strategies when introducing new products in new markets. (Lamb, Hair and Mc Daniel 2011, pp.44)
The 4 decisions can generate benefits if they are carried out after a detailed analysis of the conditions of the products and the market in question. Now it is necessary to reveal that the steps detailed above and the tools stated in previous paragraphs correspond to the content of the marketing plan.
The activities that are intended to be carried out are reflected in the document called "marketing plan:
The marketing plan is a written document in which, in a systematic and structured way, and after the corresponding analyzes and studies, the objectives to be achieved in a given period of time are defined, as well as the programs and means of action are detailed. that are necessary to achieve the stated objectives within the foreseen term (Saínz de Vicuña Ancín 2013, pp. 77)
The additional elements that a marketing plan can contain are: schedules, program of activities, management by objectives and even the budget.
IV. conclusion
Marketing is currently positioned as one of the most valuable tools in global companies, with multinationals offering the most innovative marketing strategies, with greater freshness and with a great touch of creativity. From a local perspective, small and medium-sized companies are still recognizing the importance of this discipline.
Companies, despite their size, must focus their attention on a single goal: meeting consumer needs. For this they must understand that generating a marketing plan that is too extensive or simply with the most perfect wording does not guarantee that our product or service will be successful.
In order to move our resources towards higher profits, we must apply strategic planning, that is, execute the activities that we have said we will do in the marketing plan. We must avoid falling into laziness or the unrealistic thinking that only the marketing department should be in charge of the execution of the 4 elements of the marketing mix. Finally, we invite the reader to not only create a marketing plan but also take it into action together with their collaborators to achieve market satisfaction.
Consulted reference
- Armstrong, Gary, and Philip Kotler. Marketing principles. Spain: Prentice Hall, 2008.Baena, V. Marketing fundamentals: environment, consumer, strategy and commercial research. Spain: UOC, 2011.Contreras, J. Strategic Administration. Mexico: National Autonomous University of Mexico, 2001 Fisher, L. Marketing. Mexico: Interamericana, 1988. Fred, R. Concepts of strategic management. Mexico: Prentice Hall, 2003. Kotler, Philip. Marketing management. Mexico: Prentice Hall, 2009. Kotler, Philip, and Gary Armstrong. Fundamentals of Marketing. Mexico: Prentice Hall, 2008.-. Marketing fundamentals. Mexico: Prentice Hall, 2007.Lamb, C., J. Hair, and C. Mc Daniel. Marketing. Mexico: Cengage Learning, 2011. Morán, Enríque. Forbes Mexico. October 29, 2013 (last accessed June 15, 2014). Munch, G. Management Fundamentals.Mexico: Trillas, 2009.Saínz de Vicuña Ancín, José María. The marketing plan in practice. Spain: ESIC, 2013.
