Monday, June 17, 2013

STRATEGIC MARKETING MANAGEMENT

Introduction The aspect of marketing has continued to form an integral attribute of organizational performance because it involves the conduction of business promotion and this includes the promotion of commodities and services through the elements of market research and advertising. The attributes of strategic marketing has been of immense benefits because they have had the aspect of shortening the sales cycle thereby enhancing the realization of performance of the medium sized and small sized companies. Strategic marketing is of immense benefits to the business organization because it conducts the attributes of identifying the market and understanding their complexities. Another incentive is to select the marketing mediums that is most preferred by the selected group upon a messaging strategy is developed to paint the clear picture of the market (Mintz & Currim, 2013). Execution of the directives is also ideal and leads to the establishment of integration of the campaign across the selected group and finally the monitoring of the results is of immense benefits. The development of the strategic marketing management is essential because it enables sustainability of the business organization during the periods of disparities. The occurrence of global recession had adverse effects on the performance of the business organization. Global recession is detrimental because it results in the reduction in the performance of the organization since it affects the operations and execution of strategies that enhances performance. In view of this, the advents of strategic management are adversely affected by the prevalence of the global economic recession since it reduces the capacity of organizational performance and this result in the reduction of organizational performance (Sarin, Challagalla & Kohli, 2012). Economic recession reduces the execution of strategic marketing policies and this result in reduction of the overall performance of the companies. The marketing departments in an organization have the function of ensuing that continued conduction of the organization is extremely critical in periods of disparities because the profitability of the organization depends on the execution of these factors and they contribute towards the establishment of the prevailing market factors. During the periods of disparities like in the periods of reduced performance, the companies are and their strategic managers are faced with critical decisions that concern the development of the organizations and the aim of initiating these decisions is to help enhance development of the organization. The crucial decisions in the market that alters the decisions of the strategic management are as follows. Pricing review analysis This is one of the strategic marketing management policies that help in the examination of the current pricing policies and their applicability in the market. The necessity for this consideration is to identify if the existing pricing strategies are ideal in the periods of rinsing disparities and rise in the level of competition. Estimation of demand and simulation of the market Over the period, the aspect of examining customer preferences and other attributes relating to the customers has become an incentive that is critical for the aspect of increased performance for the strategic marketing management. The attributes and features of the customers that necessitate changes in the marketing paradigm include the decision processes, marketing activities, behavior of the sales channels, and the changes in the demand model (Hanna & Rowley, 2011). In addition, the marketing management also involves the attributes of development where profit variation and change in market share are also considered as ideal for consideration. Competitor analysis The conduction of competitor analysis is extremely essential attribute of strategic marketing management because this has the impact of helping the managers to identify the competitive threats and establish pricing policies with the aim of improving the market position (Imamabad & Otubanjo, 2013). The analysis of the competitors in the market is an extremely critical factor that helps in the realization of risk minimization and profit development. Furthermore, competitor analysis is essential because it enables the conduction of product development and test competitive pricing behavior hypothesis (Gibbs & Humphries, 2009). This is essential because it enables the marketers to set prices in highly competitive and adverse market conditions. Cost and financial analysis The estimation and calculation of the costs in the business is an extremely critical attribute of development and this is the role of strategic marketing management. The conduction of costs and financial analysis is essential in an organization because it helps in revealing the true costs of the doing business. The conductions of the costs are used more accurately to ascertain the impacts of prices and profits that are realized upon modification of the services or the products of the business organization (Capozzi, Horn & Kellen, 2013). The realization of these attributes is an extremely critical incentive that helps the strategic marketing managers in drafting their provisions about the organization. This is highlighted as one of the critical roles of strategic marketing management because of its role in ascertains the costs. The management and performance of the organization is based on the usage of costs and these costs further have the attribute of enhancing ideal developmental management. Strategy assessment The attribute of strategy assessment is critical and it is involved with the attribute of reviewing the target market and the policies of its operation. The company’s current and potential performance in serving the targets is also reviewed by the existing strategic marketing incentives. Upon the conduction of the review, the strategic marketing managers must consider the aspect of reconditions to enhance the realization of the full market potential (Chakrabarty, Brown & Widing, 2012). The recommendations are ideal because they are geared towards the aspect of changing the targets in the market and further the consideration of market repositioning. The conduction of adjustments in the products and services and further modification of policies is an extremely critical idea that is considered and managed by the aspect of strategic marketing management. In view of the above factors, strategic marking management is beneficial of the organization because it has the attribute of assessing both marketing managers and other managers in the aspect of making ideal decisions that help in improving the performance of the organization. The aim of enacting these decisions is to help increase the profitability and further help in the realization of organizational goals and objectives. The enactment of strategic business marketing management are extremely beneficial and results in the understanding the complexities of the market. Some of the emerging challenges from the market have been identified as the element of external and internal environmental attributes (Balmer, 2012). The strategic marketing teams have the attribute of enacting critical challenges to suit the provisions of development and this is result in the enhancement of market practices. The factors surrounding market incentive are characterized by the development of ideal market paradigm that results in the creation of development. Certainly, strategic marketing management has been beneficial in enhancing business performance during the events of disparities and this result in the restoration of the business performance. The activities of global recession had immense consequences on the performance of the leading business incentives and the market as a whole. The occurrence of the global economic recession was attained as a result of the reduction in the performance of the financial institutions in the United States and these detrimental effects spread to the entire global economy (Lyus, Rogers & Simms, 2011). The aspects of global financial crisis were detrimental and further necessitated the reduction in the financial capacities of the business organization and this had the result of reducing the performance of the business organization because it affected the business environment. With the changes and variations in the business environment, the performance of the organization was adversely affected thereby leading to the capacity to enact some of the leading decisions of strategic financial management. The realization of these attributes of financial strategies is extremely beneficial because they help in providing developmental strategies for the organization under the circumstances of adverse environment. The aspect of reduced economic performance due to the recession has the impact of altering the attributes of the environment and this call for the enactment of ideal strategic marketing management decisions to help in the restoration of the performance of the organization (Srinivasan, Lilien & Sridhar, 2011). Certainly, the realization of development is associated with the elements of strategic marketing management. Strategic marketing management is concerned with the development of critical developmental factors that have the capacities o developing the remedies of development that results in crucial development. The aspect of development during the adverse economic conditions is concerned with the realization of ideal decisions and strategies to be enacted in the market with the aim of increasing the participation and performance of the products and services. In the regards of development of the market, the occurrence of recession has been extremely detrimental and has resulted in the consideration of impacting development to increase the participation of business attributes. In order to understand the complexities of the recession and the strategic marketing incentives, it is extremely critical to consider the aspects of strategic management theories (Srinivasan, Lilien & Sridhar, 2011). There are various theories that have been developed to enhance the condition of business incentives during the periods of recessions and economic uncertainties. Some of the strategic management theories include the following. Resource based theory According to this theory, the aspects of the firm are based on the resources and capabilities and these are resources are based on the financial, physical, intangible and human assets. the development and conditioning of this theory is based on the fact that the resources that helps in business performance are limited in mobility but are also homogeneous. Therefore, the firm must ensure that it translates these resources and capabilities into a strategic advantage if they are valuable and rare. This aspect also holds for the inimitable and the firm organized to exploit the available resources. The depiction of the similar situation is the analysis of the condition of Toyota motors during the periods of global economic recession that was characterized by reduced performance of the economy. The realization of the detrimental effects of the recession resulted in the reduction of Toyota performance. In this regard, it was increasingly beneficial for the organization to adopt new strategic measures that will lead to the continuation of performance. Therefore, the enactment of strategic marketing management by Toyota resulted in the restoration of performance (van heerde, gijsenberg, dekimpe & steenkamp, 2013). Despite the prevailing effects of Toyota Company under recession, the marketing managers were able to conduct ideal market analysis and impact on the aspect of positive market development. Instead of laying-off workers like their competitor, the strategic marketing management identified the policies and the decisions of initiating development through the enactment of temporary wage cuts and further initiating the decision to reduce the break even production unit. The reduction of the breakeven production unit proved to be immensely beneficial upon the conduction of the market research by the marketers. This incentive was further essential because it resulted in the development of the firm. In view of these policies and theory, the advents of recession in 2008 and 2009 were not extremely detrimental for the Toyota Corporation because they employed the provisions of strategic marketing management. The network view theory The development of the firm is based on the consideration of the connections of the players within the market. According to this theory, there are critical numbers of participant in the market and they are classified as the market players. The participants and the players in the market include the customers, suppliers, rivals, institutions and other critical market players. The activities of these market players are an important event that enhances participation, legitimacy and resources of the firm. This aspect is also crucial because it contributes to the provisions of diversity of the connections thereby helping in the generation of the strengths of the firm. The higher the number of these factors, the higher the capacity of the firm to initiate development with the market (Tarasi, Bolton, Hutt & Walker, 2011). Overall, this social depiction produces social benefits for the organization and further enhances the realization of ideal development of the organizations. The firms are advanced and these attributes may provide constraints to the organization thereby reducing their capacity to performance at par. The aspect network view theory is an extremely crucial event that has relations with the environmental realities. The depiction of these attributes leads to the realization of development and it results in the survey of the environment. The operation of the company are adversely affected by the prospect of financial crisis that resulted in the emergence of global; recession. The aspect of recession is detrimental and resulted in the reduction the capacities of the market players. In view of the reduction of the activities of the players, the attributes of development of the company’s was adversely affected ands this results in the aspect of development (Tarasi, Bolton, Hutt & Walker, 2011). The consideration of initiating quality check on the adherents of the market is achieved through the realization of strategic marketing management. Strategic marketing management is concerned with the attributes of the market relations and it further results in the depiction of development because it aids the increases in the understanding of the prevailing condition in the environment. This reality holds true for Toyota corporation that is used an ideal example to explain that capacities of strategic marketing management during the periods of global recession. The markers in Toyota Corporation applied the principles of strategic marketing management to understand the complexities in the market and further used the analysis from the strategic marketing management to initiate critical relationship with the other players in the market (Gilligan & Wilson, 2009). The development of these attributes has continued to be critical factor that enhances development of Toyota Corporation even in the periods of global financial crisis and recessions. Other effects of recession Apart from the factors and effects of global recession highlighted above, there are other factor and concerns that have been raised to impact on the usability of the strategic marketing management. The attributes of strategic marketing management is to create the shortest distances in the market for the enhancement of sales. The increase in sales is one of the leading attributes that s highlighted as the role of strategic marketing management. However, global recession is characterized by one adversity that results in the reduction of marketing performance and reduction in the quantity of cash flow. The development of these factors is beneficial because they help the firms in developing its goals and objectives (Graham & Frankenberger, 2011). In view of this, there is the clash of conflicts between the role of strategic marketing management and the effects of global recession because they pull on the opposite sides to initiate sales in the market. In summary of this point, the occurrence of global recession reduces the amount of sales thereby prompting the emergence of strategic marketing management to identify ideal factors and policies in the market that should be enacted to increase the value of sales. Another attribute about recession for consideration is the effect that is has on all the participants in the market is the fact that recession affects the participants differently and this becomes the role of the strategic marketing managers to design critical measures of development for the particular players in the market. An example is the realization that consumers become more value oriented during recession (Huxford, 2012). Strategic management therefore becomes essential during the consideration of drafting pricing policies. Another important factor for consideration is the fact that distributors and customers normally undergo changes that enable them to adapt to the policies initiated by strategic marketing managers. Therefore, the policies initiated by the marketing managers must be critical and assists the firms in enhancing their performance even during recession. The management of working capital is extremely critical during the periods of recession because it helps to keep the business operational and further initiates correspondence in the business incentive. Finally, the attributes of recession are detrimental for the business organization and this call for the enactment of ideal strategic marketing management because the marketing managers are capable of developing critical decision regarding the market and its performance (Huxford, 2012). Strategic marketing management also encompasses the attributes and contributions of the other market participants. Therefore, it leads to the enhancement of profitability through the increase of sales. Conclusion The aspect of strategic marketing management has continued to be adopted as one of the crucial elements of business because it results in the enhancement of ideas that leads to the enhancement of sales. Strategic marketing management is extremely beneficial for the performance f business organization because they target development of more sales and understanding the complexities of the market. Increase in sales is crucial and this results in high profit margin. The occurrence of global recession is detrimental for the organization because it affects business environment. Despite the detrimental effects of recession, strategic marketing management is used in enhancing decision making and further implementation of regulations that helps to increase the participation of the organizations. Strategic marketing management helps businesses and other managers to understand that the factors in the market are interrelated and decisions initiated should increase the interrelation of the duties of the organization. In conclusion, strategic marketing management is applied by companies during recession to initiate increase in sales and profitability. 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