The 1970’s saw the advent and benefit of strategic planning. This led to the concept of strategic marketing. Strategic marketing usurped marketing management as the preferred planning strategy. There will be more about the fundamental differences between strategy marketing and marketing management in the future. The design of strategic marketing is perfect for the dynamic contemporary business environment.
There are 9 reasons why strategic marketing will have increasing importance in the future (Jain 1999):
1. Market share – due to the decreasing growth rates of attaining and maintaining market share is intensifying, strategic marketing may provide the leverage to win these battles.
2. Deregulation – this factor causes the environment to be very fluid. Deregulation can also bring about competition where it did not exist previously.
3. Companies from competitive markets have purchased companies from traditionally low-competitive industries. This can cause increased competition in the traditionally low-competitive markets battling for market share.
4. The onset of computer distribution systems has made the buying process more sophisticated, and the buying power is distributed among fewer entities. This has incredible impact on small business owners.
5. Globalization has increased the dynamic nature of business. Globalization has intensified competition, but at the same time globalization can also provide more channels for small businesses to utilize for marketing their product and/or service.
6. Higher per-capita incomes combined with consumers becoming more savvy and sophisticated, markets are being what are referred to as segmented. These consumers need to be identified in order to reach that market, such as through the use of internet marketing and social media.
7. Technology has created another interesting effect on business. Firms must introduce products and/or services much more quickly. Companies that are able to introduce their offering tend to be able to command a premium price. This factor can cause some small businesses to rise rapidly in the market
8. Diversification and partnering – These 2 factors bring about the need for strategic marketing by all firms large and small. Firms’s benefit from economies of scale, and hence gain efficiencies too. In a dynamic economy diversification and partnering can help to maintain and/or gain profitability and market share.
9. Demographic shifts – Over the past 30 years the traditional American society has changed. As we are all well aware the one-income family is a rarity and the necessity for a two-income household is now the norm. Over 55% of all household have two-incomes. Also the percentage of consumers over 65 is increasing. This demographic is projected to peak in 2030. Small businesses need to adapt to just such changes.
These 9 factors make it glaringly obvious to business owners of all sizes that there is a need to regularly take stock of the company’s position in the marketplace in reference to the consumer, competitors, social factors, regulatory factors, and technological factors. A well-conceived strategic marketing plan will help your business be well-positioned for long-term sustainable growth.
Jain, S. (1999). Marketing: Planning and Strategy. Cincinnati, OH: South-Western College Publishing.Tweet