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Strategic Marketing
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A better approach is to perform an annual comprehensive review of markets and opportunities, then make long-term strategic decisions without the distractions of day-to-day marketing and sales activities. Daily decisions then fit into the company's overall strategic marketing goals.
It's important for a strategic marketing planning process to look at the company from the customer's point of view by asking questions that have a long time horizon, such as:
- What needs or problems cause customers to consider buying from our company?
- What improvements in the customer's personal or business life can we enable or improve?
- Which customer market segments are attracted to our company or products?
- Which customer motivations or values lead people to decide to purchase our products?
- What changes or trends in our customer base are affecting their general interest or attraction to products like ours?
What makes a strategic marketing plan different from a more tactical marketing communications plan? The key difference is the focus on meshing overall customer situations with your overall company direction. For business-to-business marketers, this means combining industry sector segmentation and product use with other factors related to purchase decisions. These include the purchase criteria and decision motivations that affect large, enterprise size purchases.
For example, the trend toward increased use of outsourcing to both domestic and global vendors creates markets for those suppliers. However, those vendors need to have a strategic marketing vision in order to see these new markets early enough to take advantage of the opportunity.
For consumer marketers, this means using geographic and demographic segmentation, as well as psychographic segmentation (i.e., values, attitudes, lifestyles), and product usage motivations.
For example, the aging population bubble creates a general increase in demand for a wide range of products. It also creates market niches that are large enough to make product development and marketing worthwhile.
The same shifts can also reduce demand for other products. These long term shifts in markets are frequently misinterpreted as short-term competitive pressures or fluctuations in the economy. Instead of increasing advertising or sales efforts, it might be better to abandon a declining market.
Without a strategic marketing plan a company could waste resources or miss an opportunity.
What's the cost of missing an opportunity? Of course, it's impossible to know at the time the opportunity is missed, but years later it will become clear when a competitor opens a new factory or enters a new market -- and their revenue grows faster than their competitors.
In other words, the annual cost of a strategic marketing plan review is miniscule compared to the revenue, market share, and profitability it can generate.