Marketing Planning
Introduction
If an organisation wanted to conquer the market, it is important that they consider strategic marketing planning of the business (2000) and as part of this plan, it is important that a company should understand its competitors. Principally the goal of this paper is to determine the reasons why a certain organisation should be able to understand its competitors and how this can be helpful for the company.
In this particular study, the discussion of the concept of strategic marketing planning will be given. Moreover, the discussion of the comparison of corporate, strategic and marketing management will also be cited. And lastly, this will also tackle the role of strategic planning versus its competitors.
A strategy is a plan that integrates an organisation’s major goals, policies, decisions and sequences of action into a cohesive whole. It can apply at all levels in an organisation and pertain to any of the functional areas of management and this include marketing plan.
Strategy is concerned with effectiveness rather than efficiency and is the process of analysing the environment and designing the fit between the organisation, its resources and objectives and the environment. The strategic process refers to the manner in which strategy is formulated. There are several approaches. First, the rational approach, making use of tools such as SWOT analysis and portfolio models; second, the flexible approach, which employs multiple scenario planning. The creative approach reflects the use of imagination in planning. The behavioural approach reflects the influence of power, politics and personalities. And finally, the incremental approach is based on small adjustments or changes to previously successful strategies.
Marketing is about satisfying customer wants and needs and in the course of doing so facilitating the achievement of an organisation’s objectives. By paying attention to customer wants and needs, organisations are more likely to achieve their objectives in the marketplace. Of course, organisations have to compete with each other and so also have to satisfy customers’ wants and needs at least as well as their competitors. Fortunately, organisations can do this in different ways. Competition involves finding a different way to satisfy customers from other organisations in the market place. In the pursuit of this end, products and services need to be seen as more than physical entities—it is the benefits they offer customers that are being purchased. Hence, Strategic marketing planning aims to effectively deliver the company’s competitive advantage to the marketplace so that the firm can exploit this profitably. In addition strategic marketing plan is the vehicle via which the cash is earned to make that return on capital (, 1999).
In this study, the organisation that will be considered is Company Inc. which plans to enter the Indian market. This paper will also attempt to analyse and evaluate the competitive situation, in which Company Inc. as it considers entering the Indian market for home water and purification equipment. This will also provide some marketing plans that the company can use for the Delight purifier.
Company Inc. was founded by in 1975. The company’s mission is to provide equipment that will meet the needs of its target market in terms of filtration and purification of water for having high quality water. As part of the organisational goal, the company is also aiming to enter international market to be able to be known in both local and international level and position itself in the global competition. As part of the geographic expansion of the company, they are trying to produce innovative products to meet future needs in terms of water purification and filtration. Herein, the challenge for the company is to determine a marketing strategy which will make their product profitable in the Indian market. The company is also being challenged by other industries who offered quality water in India.
The Concept of Strategic Marketing Planning
Strategic marketing planning is concerned with predetermining both short and long-run courses of action, and with arranging the marketing elements so that a firm’s position will be optimized over time. Both the marketing concept and the systems approach imply marketing planning. Planning emphasizes that companies do have an opportunity to shape their own destiny and provide basic directional guidance for future activities. Marketing planning is linked directly to sales forecasting and leads to two results: establishment of a corporate perspective and the development of marketing programs. The application of computer technology and the use of new analytical techniques have added greatly to the efficacy of planning activities. Such tools as critical paths, input-output analysis, payoff matrices, decision trees, linear programming, and simulations, discussed in later chapters, are used extensively in marketing-planning operations.
Comparison Corporate/Strategic/Marketing Management
In the marketing concept, there are many approaches that can be used in order to make a company more competitive and successful. These approaches include corporate management, strategic management and marketing management. Corporate management adheres to all other management concepts needed by the company. Herein, corporate managers are responsible for determine the best management system to be implemented within the company. Corporate management may include the task of monitoring the company performance, risk and competitive advantage. On the other hand, strategic management can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enables any organisation to attain its objectives. As this definition entails, strategic management gives emphasis on integrating management, marketing, finance, production/operations, research and development and computer information systems to achieve organisational success. The term strategic management is also used synonymously with strategic planning (2001). Strategic management is guiding an organisation relative to challenges and opportunities appearing in the contingent environment. This environment is composed of those external elements that most directly affect organisational goal achievement and new goal development. Thus, organisation system design and management should complement strategic actions taken for productive subsystems, as well as those providing output delivery and other support functions for the organisation. To the extent possible, the organisation bases its actions on strategic planning that, rather than a one-time effort, is an ongoing process of adaptation of original conceptions of mission, goals, structure, roles, and so forth relative to environmental dynamics (1992).
And lastly, marketing management covers the application of management techniques in the utilization of marketing resources. It is concerned with the responsibility for planning, organizing, actuating, and controlling marketing activities. It achieves its aims by establishing marketing objectives, policies, plans, programs, and standards, allocating marketing resources, and evaluating the effectiveness of marketing activities.
Effective marketing management includes the following precepts: (1) acceptance of change as a constant; (2) recognition of the centrality of consumer wants and needs; (3) adoption of a systems approach to marketing issues; (4) recognition and application of meaningful concepts from other disciplines, and the acceptance of theoretical constructs and findings as helpful in managing marketing effort; and (5) recognition of the relationship between marketing and other aspects of management.
Strategic Marketing Planning VS Competitors
Competitor’s analysis is very important when a company will be considered as a new entrant within the market place. It is essential so that the company will be able to know their competitors and the possible strategy that they may use to level up such competitors and know the needs of the target market. There ha been other companies in terms of providing quality water in India. These companies have spent years to increase their levels. However, some of these companies do not offer water filtration and purification equipments the way the Indian customers want it. Hence, it is important that Company should understand its competitors and their strategies.
Competitors are always a threat on the company, particularly if the company is considered as a new entrant in the industry. It is in this area where the products of every company are considered on the level of differentiation and diversity. Moreover, the presence of a secondary market is also examined in this part of the planning process. The competition in this industry is powerful, not only for the consumers of the arts and crafts sector, but also with regards to the loyalty of suppliers and artists in the market. Competitors can drive down industry profitability by cutting prices or offering more product features for the same price. When rivalry is most intense, competitors often compete head-to-head on price. When competition is disciplined and constrained by industry norms, rivalry is weak.
In order to understand the competitors different marketing tools are used. In this paper, the ’s generic strategy will be utilised. A company positions itself by leveraging its strengths. (1980) has argued that a company’s strengths ultimately fall into one of two headings: cost advantage and differentiation. By applying these strengths, three generic strategies are resulted: cost leadership, differentiation and focus (1997). In this study the competitors of Company uses Cost leadership. Cost leadership strategy is based upon a business organizing and managing its value-adding activities so as to be the lowest cost producer of a product within an industry (, 2002).
Own Strategy VS Competitors Strategy
As mentioned, competitor’s analysis is an important aspect of strategic marketing planning. Herein, the company is given the chance to recognise which competitors are strong or weak. Through this also, Company may be able to determine the most suitable strategy to be used to outgrow its rivals in the Indian market. If the competitors of Company use Cost-leadership, Company uses other strategy which is focus strategy. Focus strategy is aimed at a segment of the market fro a product rather than at the whole market or many markets (2002). The successful way using focus strategy is to tailor a broad of product development strengths to a relatively narrow market segment that they know very well. Since is a new entrant in the Indian market, must see to it that they provide quality service to their focus market segment.
The main product of Company Inc. is Delight Purifier is a product that used an integration of innovated technologies with a purpose of removing four kinds of water contaminants that can be founding potable water. These include sediments, organic and inorganic chemicals, microbial or cysts and objectionable odours and tastes. The product will be provided to the Indian customers to meet their needs having equipments that will enhance the quality of their water for their everyday consumption.
In the case of Company, market segmentation includes those Indian customers who are willing to try the Delight Purifier to meet their needs of water filtration and purification equipment that will provide them quality water that they can use for every purpose they want. In addition, market segmentation includes household, corporate, and political market segments.
Conclusion
Companies are facing different complexities and challenges. Hence, each management should be able to identify, develop and exploit their core competencies in order to have a long-lasting and successful business and this can be done through strategic planning. Successful strategy requires the firm to choose the markets in which its distinctive capabilities yield competitive advantage. But the adaptive, incremental nature of strategy means that the starting-point is where the firm is now. Strategy is the direction and scope of an organisation over the long term: which achieves advantage for the organisation through its configuration of resources within a changing environment, to meet needs of the markets and fulfil stakeholder expectations.Analysis shows that strategic marketing planning is essential in making the business have a better performance in the marketplace. Through strategic planning, organisations will be able to meet is goals and objectives. Aside from this, the evaluation and understanding the competitors and their strategy is also important to determine the most suitable strategy that can be used against the rivals.
Analysis shows that Company Inc has a great opportunity to enter the Indian Market. This is because the products that the company is offering, can be considered as a solution for the Indian customers in having an equipment that they can use at home and that can provide them quality water for their everyday consumption. However, before the company must enter the Indian market, the company must be able to take into consideration all different aspects of marketing including models and theories so as to ensure success in operating to an international market.
Reference
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