MRKTG200 – Strategic Marketing Planning
Individual Reflection Paper
1. From the prescribed list of readings (Articles A-M as listed on the paper outline) but with the exception of Reading C: if a strategic marketing practitioner who works for large manufacturing company asked you to recommend any ONE, which would it be? Explain, in detail, the main reasons why you think the key points covered in your selected reading would likely be of use in their strategic marketing decision-making activities.
I recommend (Brooksbank, 1994) article, “The Anatomy of Marketing Positioning Strategy”. The fundamental concepts of this article are useful in strategic marketing decision-making activities. The critical point covered in this article is the marketing positioning strategy of a company (Brooksbank, 1994). In making strategic marketing decisions, companies need to consider their customer targets, competitor targets, and competitive advantage.
The marketing mix is a significant concept of strategic marketing, and business analysts must understand the impact of each element of the marketing mix, primarily the ‘promotional’ and ‘pricing strategies’ when making marketing decisions (Hooley & Saunders, 1993). Conversely, the STP (segmentation, targeting, and positioning) of the company needs to be explored. The proper understanding of a company’s STP helps understand the strengths, weaknesses, opportunities, and weaknesses (SWOT) facing the company – and this can only be realized by a dedicated company, competitor, and customer market analysis. In business, company’s endeavours to use their distinctive strengths to satisfy market needs than its rivals. In the market place, customer demands are the driver for everything. Thus, customer and competitor targets enable firms to derive competitive marketing strategies which bolster business performance in the industry (Brooksbank, 1994).
Selecting customer targets is another strategic marketing decision-making concern for a firm. The choice for consumer targets explains the central role of market segmentation in the process of business marketing (Brooksbank, 1994). In the market, customers have diverse needs and want which businesses should equally address. In strategic marketing decision-making, the business managers and analysts need to understand that customers differ in some respect, the customers may be grouped into homogenous segments based on their behaviour, and that segmentation enables them to target and isolate specific markets.
Another area of strategic marketing decision-making is the selection of competitor targets. For a business to succeed, it must satisfy consumer demands, needs, and wants in a better manner than the competitors. Obtaining competitive advantage is a goal every marketing strategist seeks to achieve (Brooksbank, 1994). Competitive advantage decisions need to be designed to ensure that the company’s offers are unique and distinguishable from those of its rivals in the market segment. An excellent example of such a decision is to make superior products, top quality products, superior service, and favourably lower price such that customers loyalty is acquired. For strategists, this concept of competitive advantage helps ensure that the decisions they make are based on creating/ adding value to the consumer (Hooley & Saunders, 1993).
Also, strategic marketing decisions on the company’s marketing mix are vital. Marketing mix decisions cut across the elements of product, price, promotion, and place/distribution. Business strategists rely on this concept to design a high-quality product use instruction manual, secure payment schemes, customer care services, and convenient distribution strategies that add value to both customers and the company itself (Brooksbank, 1994).
In summary, strategic marketing decision making involves a comprehensive situation analysis of a company and the market competitors. Competitive advantage is built around a company’s unique strengths that its rivals do not use. Thus, the strategic marketing planning of a company should be actionable, sustainable, and distinguishable.
2. Discuss the key learning insights you have gained from undertaking the group case analysis (i.e. the Universal Carpets case), with specific reference to the challenges involved in translating the theory of marketing strategy formulation into practice.
The universal Carpets case study has a lot of insights into the challenges involved in marketing formulation theory in practice. Some of the ideas include how the carpets are made in different types, how to sell the carpet in different markets and future measures which should be taken to ensure there is improved carpet supply in the years to come and also that the customer desires are fully satisfied.
In the production of carpets, they are made in different categories to suit customer desires. The categories include handmade rugs which are made by hand-knotted or woven in a loom. These carpets are costly due to the high cost of production. Machine multi-woven carpets are of the highest quality as they are made from quality yarns. They are also good looking and hard-wearing, thus making them very expensive. Others include the basic machine-woven carpets, tufted carpets and carpet tiles. These carpets have increased its growth; hence they have created many revenues and employment opportunities too many individuals. This has made the company to be able to identify new markets which no longer have the manufacturing industry of carpets and thus start the business there. After some years, they begin experiencing customer’s growth, and the products are accepted in the new markets. The creation of different types/ product brands ensures that every customer’s need is satisfied and that their tastes and preferences are fulfilled.
Setting new firms: Due to the growth of small subsidiary companies, the mother company decides to establish new firms to experience so new opportunities. They developed the Universal Carpets New Zealand Ltd (UCNZ) as a small subsidiary company. This company was provided with a capable managing director who ensured its success. He executed a strategic marketing plan that ensured that the new firm would have a modest profit within the year it started. Thus the company needs a manager who will provide the growth of the company by maximizing the available opportunities across the open markets. This will ensure the success of the business during the first year of business operations.
Strategizing unique selling methods: In every market, there is the existence of competition. Due to competition, selling of carpets in New Zealand came up with many strategies to ensure that the company has a competition advantage. These methods include selling directly to large firms where the vehicles with the samples go to the customer’s locality and help them make the decisions. The second method is where they establish retail chains. These retail chains are stocked with products for the customers to come and view and decide what they need.
Lastly, the small independent sellers who operate through the World Wide Web by offering prices which are cheaper to the customers have an edge in the market. All these strategies enable the company to identify the segments in the areas which have potential customers for the company. When the leading divisions are determined, they make the work to be simpler for the company management to make the right decisions for the markets they are supposed to target and move towards the set goals.
3. The basis for the entire paper (MRKTG200) is the B.A.S.I.C. strategic marketing planning process. However, this is only a model (i.e. an idealized representation of the real world). In reflecting on the course content, and from a strategic marketing practitioner’s point of view: what do you think are the potential advantages and disadvantages of using this model as the basis for developing a company’s strategic marketing plan, and why?
As the basis for developing a firm’s strategic marketing plan, the strategic marketing planning theory has both advantages and disadvantages.
Advantages
Promotion of business to the target audience: In a strategic marketing practitioner’s point of view, this model promotes the company to its target customers, audience or market. Marketing strategy is a practical approach to reaching the target customer (Hooley & Saunders, 1993). This tool allows practitioners, businesses, and strategists correctly know the habits, wants, behaviours, and needs of the target customers. Nevertheless, relying on this tool in market decision making makes a business more durable, sustainable, and competitive in the market.
Helps businesses understand their customers: Business relies on the strategic marketing planning tool in the development of marketing strategies. Practitioners are focused on obtained detailed information about their prospective customers. By doing market research, this enables firms to brand their business by offering their customers with the goods and services which they demand.
It improves operational efficiency: A strategic marketing planning provides the company’s management with a roadmap to align its functional operations to meet its set goals. It guides business strategists in marketing discussions and decision making to determine resource and budget requirements for accomplishing the set goals; thus helping to improve operational efficiency.
It helps companies increase profitability and market share: A strategic marketing planning model enables firms, and strategists acquire valuable insights on consumer segments, market trends, and also the service and product offerings which may potentially impact their success. A well-organized strategic marketing planning helps a firm increases the size of its market share, profitability, and competitiveness against its rivals in the market.
Disadvantages
There are various disadvantages of using the strategic marketing planning process in business activities decision making by companies, strategists, and practitioners. About the course content, some of these disadvantages include high costs of marketing, the inability of time and effort to yield a return, uncertainty in the market, and difficulties in implementation, among others.
High costs of marketing: Launching marketing campaigns are costly for an organization. Also, radio and television adverts are so expensive, and such decisions are very challenging for a firm because of the increasing need to advertise due to stiff competition, and yet the process is so costly. Also, strategic decision making consumers a lot of time, energy, and funds for the personnel need to be trained to acquire the necessary skills.
The inability of time and effort to yield a return: Another disadvantage of the strategic marketing planning theory is that the time and effort spend might yield little or no returns to the company. Sometimes, even a well-planned marketing campaign collapse; this continues to constrain managers in making effective strategic marketing plans.
Uncertainty in the market: The complexity of the strategic marketing planning process and the skills required in this planning render the whole process uncertain in meeting a company’s long-term goals. Also, the strategic marketing planning process itself has missteps, and thus the viability of such plans is always uncertain. Also, its implementation process needs clarity of communication plan, active participation of stakeholders, and accountability; this makes it challenging to implement.
4. If a marketing executive with a New Zealand SME (a small to medium sized enterprise) with limited resources asked you to recommend any ONE of the specific strategic marketing planning tools that we have covered as part of our course content, which one would it be? Explain, in detail, the reasons why you think your selected tool would be of particular use to them as a means of enhancing their strategic marketing decision-making.
Format: Short answers of no more than approximately 500 words per question.
Just for your references: