Strategic marketing planning as an Essential Marketing Tool Essay

Strategic merchandise planning as an Essential Marketing Tool - strain ExampleStrategic Marketing Planning Strategic marketing plan is a management mental process leading to a marketing plan (McDonald, 2008, p.7). It is a systematic approach by managers that includes the written or detailed plan of the current status of the company, its goals, and how to attain it. The company obtains information about the mission control and corporate objectives analyses the financial performance of the company through the marketing audit reviews the strength, weaknesses, opportunities, and threats forecasts the marketing impact sets marketing objectives and strategies estimates the anticipated outcome classifies alternative plans and mixes and projects the budget needed. Marketing planning is requirement for business establishments that aim to extend to competitive advantage, which is limited to establish brand, build, defend, and maintain. To achieve competitiveness, firms must(prenominal) employ techniques or models such as porters beers generic competitive strategies. Generic Competitive Strategies Porters Model was developed to win the firm to gain competitive advantage through following the suggested strategies. The famous hypothesis of Porter is stuck in the middle when firms failed to engage one of the strategies such as differentiation, cost leadership, focus, or combination as illustrated in Figure 1 below. The model of Porter is determined by the forces in the environment that have a direct influence to the firms competitive stake. These are threat of new entry, intensity of controversy among existing firms, pressure from substitute wares, bargaining power of buyers, and suppliers (Ormanidhi & Stringa, 2008, p.57). Porter argues that companies must examine its competitive position so that they will know their strength and weaknesses that would form into strategies for defensive or offensive actions. Figure 1 Porters Model * Grant 1998 cited in Kossowski , 2003, p.6 Differentiation This is one of the business strategies that Porter identifies in the framework. Differentiation is the firms strategy to produce unique products or services (Allen, 2006, p.434). This strategy is essential when the companies objective is to build customers loyalty because it satisfies the customers needs and preferences. The product or service is designed based on the customers wants hence, it produces satisfaction. The customers are concerned with the product quality, features, or after-sales support that increases their value. It results to the authoritative perception of customer regarding the quality of services the company rendered. Due to additional expenses caused by differentiating products, the company must charge a premium price to return its investment. Regardless of this, perceptive customers prefer quality in terms of delivery system, product, and services. Thus, this strategy is limited to customers who are willing to pay despite the higher price. However, product differentiation is relevant in establishing a brand name for its recall. The differentiated products influence the customers perception of the firms variety with their competitors. In addition, it eliminates price conscious consumers by focusing on unique products. The research literature is concerned with the widely accepted and used model designed by Porter. Akan, et al. (2006, p.45) include the tactics that managers must utilise in applying this strategy that will