Page 61 - Foundations of Marketing

28 Part 1 | Strategic Marketing and Its Environment

Whether it’s Procter & Gamble or Subway, an organization must be able to create customer value
and achieve its goals. This occurs through successful strategic marketing management. Strategic
marketing management is the process of planning, implementing, and evaluating the perfor-
mance of marketing activities and strategies, both effectively and efficiently. Effectiveness and
efficiency are key concepts to understanding strategic marketing management. Effectiveness is
the degree to which long-term customer relationships help achieve an organization’s objectives.
Efficiency refers to minimizing the resources an organization uses to achieve a specific level of
desired customer relationships. Thus, the overall goal of strategic marketing management is to
facilitate highly desirable customer relationships and to minimize the costs of doing so.
We begin this chapter with an overview of the strategic planning process and a discussion
of the nature of marketing strategy. These elements provide a framework for an analysis of
the development, implementation, and evaluation of marketing strategies. We conclude with a
discussion of how to create a marketing plan.

LO 1 . Understand the strategic THE STRATEGIC PLANNING PROCESS
planning process.
Through the process of strategic planning , a company establishes an organizational mission
2
and formulates goals, a corporate strategy, marketing objectives, and a marketing strategy. A
market orientation should guide the process of strategic planning to ensure that a concern for
customer satisfaction is an integral part of the entire company, leading to the development of
3
successful marketing strategies and planning processes.
Figure 2.1 shows the various components of the strategic planning process, which begins
with the establishment or revision of an organization’s mission and goals. The corporation

Figure 2.1 Components of the Strategic Planning Process

Organizational mission and goals

Corporate and business-unit strategies

Analysis of organization’s strengths and weaknesses
Identification of organization’s opportunities and threats

strategic marketing
management The process of
planning, implementing, and
evaluating the performance Marketing Production Finance Human
of marketing activities and • Objectives • Objectives • Objectives Resources
strategies, both effectively and • Strategy • Strategy • Strategy • Objectives
efficiently • Strategy
• Marketing • Production • Finance
strategic planning The process plan plan plan • Human
of establishing an organizational resources
mission and formulating goals, plan
corporate strategy, marketing
objectives, marketing strategy,
and a marketing plan
From Pride/Ferrell, Marketing 2014, 17E. © 2014 Cengage Learning.

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