Strategic Marketing Management: Definition, Purpose & Process

Marketing in the current scenario has undergone a huge change. The scope of marketing has become wider and the extension of it is known as strategic marketing management. In this article, we will discuss strategic marketing management, its meaning, objectives and the process of Strategic Marketing Management in detail.

Strategic Marketing Management Overview

A Strategic Marketing Management process helps the market in not only dealing with different marketing issues but also resolving and get answers to numerous marketing queries in a scientific manner. This enhances the effectiveness of the marketing process and its outcome becomes more reliable.

What is Marketing?

The management process responsible for identifying, anticipating and satisfying customer requirements profitability is called marketing.

What is Strategic Marketing Management?

Strategic Marketing Management is the process of taking into account the company’s mission into action through different strategic tools and methods. It helps to develop a strategy and viable fit between the forms of objective skills resources with the market opportunities available. It helps the firm to deliver its stated profits and growth through its business and products.

Purpose of Strategic Marketing Management

Strategic Marketing Management focuses on the following objectives-

• Identification and creation of competitive advantage
• Identify and capitalize on opportunities with the help of strategic means and methods

Strategic Marketing Management Process

The Strategic Marketing Management process helps to answer different questions like where we are right now where we want to be how are we going to get there how will we know when we are there.

Goal Setting

Goal setting safely deals with setting major objectives of the marketing process by keeping into account the Vision and Mission statement of the company and its corporate objective.

Situation Analysis

In this phase, the marketer after setting out the goals analyses the present market situation with the help of Different techniques like marketing audit and SWOT analysis.

Strategy Formulation

In this stage, the marketer after getting fully acquainted with the marketing situation and its different aspects makes an effective marketing strategy that corresponds with the company’s objectives and mission statements.

Resource Allocation or Implementation

The final stage of strategic marketing planning deals with the actual implementation of the marketing strategy formulated with the help of resource allocation and implementation. This is done by making implementation plans for differences in your budgets.

What is Marketing Segmentation?

Marketing segmentation is a process of dividing a market into distinct groups with distinct needs, characteristics or behaviours who might require separate products or marketing mixes. Below are the different marketing segmentation

• Geographic segmentation:  this is a grouping of customers based on the region City or the climate of the city etc
• Demographic segmentation:  this is the process of making groups based on customer age gender race etc
• Psychographic segmentation: in this step, the marketer divides a market into different groups based on social class lifestyles or personality characteristics.
• Behavior segmentation: This segmentation is done by dividing the buyers into segments based on customer knowledge, attitude uses or response to a product.

What is Targeting?

After dividing the market into segments the organization then evaluates different segments and decides how much or which segment it can serve best. This evaluation and selection of a specific segment or segment is called targeting.

There are four approaches to targeting market segments- Undifferentiated market or mass marketing, Differentiated marketing, Concentrated marketing and niche Marketing, and Customized or micro marketing.

Undifferentiated market or mass marketing

Under the strategy the marketer attempts to appeal to one large market with the single marketing strategy. This approach was very popular in the early days of marketing.

Differentiated marketing

This is where the firm targets more than one market segment by introducing several products each aiming at a different segment.

Concentrated marketing and niche Marketing

This strategy combines mass and segmentation Marketing by using a single marketing strategy to appeal to one or more very small markets. It is normally used by smaller marketers. We have identified a small sub-segment of a larger segment.

Customized or Micro-Marketing

This target marketing strategy attempts to appeal to customers with specific bonds. For micro-marketing segmentation to be effective the market must to some degree allow them to build their own product.

 What is Market Positioning?

Positioning is concerned with the perception customers hold regarding a product or a company. In particular it relates to market decisions and organization undertaken to get customers to think about a product or company in a certain way compared to its competitor.

Conclusion

In nutshell, strategic marketing management processes play an important role in the marketing ecosystem. Marketers can easily identify the needs and wants of customers and make efforts to satisfy them in the best possible way.

Download UGC NET Commerce Study Notes PDF

The direct Link to Download UGC NET Commerce Study Notes PDF has been mentioned below. Candidate can download Strategic Marketing Management Study Notes PDF which has been mentioned below.

Download Strategic Marketing Management Study Notes PDF

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