Abstract
Marketing is an essential functionality in the business set up. For the procedure to be effective, marketing has to have clear objectives that are set in the organization. The objectives can be cascaded down to the individuals who have taken up certain roles in the marketing department for instance. Aggressive promotion while at the same time making identification of the expected target for the particular service or product is of importance. The marketing content is also crucial, and this can be promoted by the presence of activities like marketing strategies and strategic marketing which can be solely managed in some organizations. Integration of new marketing kits like strategic account management, in the organizations, is bringing new meaning to the marketing dynamics.
Key Words: Marketing, Marketing strategy, Marketing concept, strategic marketing, marketing strategy, dynamics, marketing philosophies, strategic account management
Strategic Marketing
Introduction
It is important first to introduce the marketing topic as a definition and before that; it is to mention at a glance that marketing is an important tool in the organizations today. Organizations are using this tool as a means of gaining a competitive advantage over other organizations that deal in more or less similar product or service. Bringing in the aspect of portfolio analysis of the customer is also crucial given that the clients are the reason why marketing exist in the first place. This topic will, however, be tackled at a much later stage in this paper. At this point, therefore, we can define marketing as the activity that involves giving the customer what they want or complying with the requirements of the client as far as satisfying their needs are concerned. While in the quest for the satisfaction of the customer’s desires, the organization’s objectives are considered. Introducing the topic of the strategy drawn from the complementary usage of the term while about marketing, a strategy can be defined as a process that attempts to integrate a given organization’s decisions, goals and policies and the actions therein and fusing them into one whole idea. Strategic marketing can be defined as the field that integrates matters organization, environmental, inter-organization concerning the various organizational behaviors and their relationship to the customers, competitors, and other external factors while incorporating the responsibilities of the management in the marketing function of the organizations.
Importance of marketing and marketing philosophies
The term strategic marketing is often used interchangeably with the term marketing strategy. According to Drummond, Ensor and Ashford (2008, p. 12), marketing, derived from its strategic role is defined as the aspiration to change the corporate objectives together with the business strategy in the hunt to create competitive advantage. The key pointers in marketing strategy addressed by Drummond, Ensor, and Ashford (2008, p. 12), is that there is the element of business environment analysis where customer needs are put forward, segmentation creation and the implementation of activities that assure product position which guarantees a competitive edge over the existing competitors.
Marketing according to Lusch and Webster (2011, p.129) has evolved over time from being production oriented to sales oriented and finally as customer oriented. The changes in the orientation factor loosely define the marketing philosophy. Marketing philosophy, according to Kotler (2000, para.1), the marketing philosophy that an organization opts to incorporate in its processes must be efficient, effective and at the same time socially responsible. Organizational activities, according to Kotler are guided by either one or more of the five philosophical concepts that are mentioned below. Production concept is one of the philosophies that governs the marketing venture of organizations. This is one of the oldest ideas under the marketing philosophies topic as mentioned by Kotler (2000, para.3). This concept holds that consumers are more inclined to products that are readily available as compared to the specific features that product may be having. This concept is applicable pretty much in the developing world. Organizations that use this concept will tend to be efficient in their production processes and as a result, come up with products that are of low cost. Such products would appeal to consumers who value low priced commodities.
The product concept is the second aspect which addresses the fact that consumers will tend to be more inclined to those products that are innovative and have desirable features. Those organizations that employ the use of this concept will tend to products that are more superior which would appeal to a particular niche of customers. These products would continuously undergo modification for them to be maintained at a status that is relevant (Kotler, 2000, para.4). Kotler (2000, para.5) notes the next concept as that of the selling factor. This concept is based on the fact that consumers tend to buy products that are aggressively marketed by the organization that is selling. In such a case, organizations that employ the selling concept philosophy will have to come up with aggressive promotional and selling tactics for gaining the appeal of the customer. The fourth concept is referred to as the marketing concept which deeply rooted in the marketing organization being centered on effectiveness as compared to the competitors (Lusch and Webster (2011, p.130). The effectiveness addresses the topics of product creation, the value of the product and communicating the said value to the consumer. It is essential to note that a difference exists between the marketing and the selling concepts. The former addresses the buyer’s needs together with the need for customer satisfaction while the latter is centered on the trading company’s needs and the desire to make money.
The final concept is that of societal marketing. This philosophy was incepted arose as because of the loopholes that were present in the then marketing concept. Societal marketing is profound at a time when there is the advent of calamities such as environmental deterioration, diminishing resources, massive population outbursts, global hunger and poverty and the social services that seem to be neglected in the society (Kotler, 2000, para.11). This philosophy makes use of the fact that the marketing procedure that is applied is intended for the societal wellbeing. While maintaining societal good, the interests of the target market ought to be fully met and addressed.
With the above concepts in mind, the importance of marketing can be ascertained. One such importance of marketing is garnering a competitive edge over other existing companies dealing in a similar product or a rather product. The actual competitive positioning of the product is important to both the marketing company and to the consumer. For the user, the product becomes readily available to the consumer, and this enhances reliability. For the organization, the benefit of this is the fact they can command a market share of the industry and as a result make a fortune from a particular market segment (Proctor, 2008, p2). The other importance of marketing is the maintenance of relationships this is according to Proctor (2008, p. 2). Persuasion tactics promote and maintain relationships between the organization and the consumer. For the persuasion tactic to work, the customer’s needs and wants ought to be addressed in the tactic employed. The persuasion chain can at some point be transferred to the employees in the organization who would be involved in the marketing task in a phenomenon that is termed as
Internal marketing (Proctor, 2008, p.2). Building a rapport with other organizations is crucial as well and in this case, firms that have some form of stake in the company are considered. Some the main stakeholders in this sense are the customers, creditors, suppliers, stockholders, employees, the management, some competitors and the society as a whole. One of the main advantages of an organization that makes a profit is the fact that stakeholders can be able to develop and maintain an interest in the organization’s products and services as far as the commitment to time and investment is concerned. However, it is essential to understand that as much as the new age market promotes the ideology of formation of collaborations and even alliances, as part of relationship building, the outcome can be either black white. In layman language, this means that the result of partnership formations between organizations can, in fact, be fruitful or not, meaning can be the key to either success or failure (Proctor, 2008, p3).
At this point, we can address the fact that marketing is, in fact, a management process, this is according to Proctor (2008, p. 3). What this means is that marketing promotes the management element of carrying out identification, anticipation and the actual satisfaction of the relevant stakeholders’ needs and wants. While carrying out the functionalities as mentioned above, the organization’s objective must, in fact, be realized. It is critical to note that the facilitation of a given organization’s objective achievement comes right after the stakeholder’ desires and needs are met to the later, in the strictest sense.
Marketing Strategies
The mentioning of the actual importance of marketing cannot be fully complete without putting into consideration of the marketing strategies that are important or that come into play in a given marketing venture. In this sense, we put into account the factors that go into consideration when addressing the topic of marketing strategy, according to Proctor (2008, p.3). Making recognition of these factors is relevant at the organization level especially if arriving at the long-term marketing strategies is the expected outcome. These factors are strategic windows opening and closure, the effects of the market drivers, marketplace competition dynamics, the lifecycle of the industry and or the marketplace and those assets that a given organization possesses or can acquire readily without a doubt. We cannot forget the place of the interest of the relevant stakeholders (Proctor, 2008, p.3).
A brief look at what each of the factors as mentioned above is essential for further understanding of the strategic marketing tools. An address can be first made to the stakeholders’ interests in which case, it is worthwhile to mention that these interests are variable, from one organization to another. When conducting the stakeholders’ analysis, certain issues ought to be addressed, and these range from an understanding of the support services, promotional marketing mix, manufacturing procedure, R& D functions, product/ service development and its delivery. Also, noting the purchasing power and effect of the stakeholders’ of interest is paramount (Proctor, 2008, p3). Keenly looking at the factors mentioned above, on the part of the stakeholder, in the public sector, it is, therefore, easy to determine their attitudes. For the private sector, a majority shareholder has an undoubtedly high effect on the influence of the said organization meaning that the management, in a private sector may not have the influencing power at their disposal.
Market drivers as earlier mentioned have an effect on the strategic influence and in this case, PESTEL analysis is put into consideration. Political, economic, socio-cultural factors, technological, ecological and legal factors come in handy at this juncture, with regards to a particular product or service (Proctor, 2008, p.4). An analysis of the forces drawn from the drivers mentioned above is in order. The other factor addresses the effect of competition, and here, it should not be biased that competition can be simply countered by the actual production of attractive and excellent goods and services as a means to satisfy the needs or wants of the customers. The minds of the client must be addressed in the strictest sense where the organizations strive to position themselves competitively in the minds of the customers. What this means is the fact that the benefit of the organization’s products and services standing out is more or less assured. As a result, competing organizations will be at a position of operating in the marketplace, and it should be well evident that this is not just small marketplace operation, rather a successful market operation.
Strategic windows can be addressed at this particular point and at this time, reference is made to Proctor (2008, p.7). The reasoning behind this variable is the fact that organizations ought to note that there are those times where the requirements of a given product or service and the competency of a given organization tend to be at an optimum level. What this means for the organization, is that they should invest in those products or that market in a particular time that is consistent to when a particular strategic window is deemed to be open. The ideology behind this factor is the organizations are in a position where they can align themselves with the changing nature of the market environment. The organizational alignment to the ever-changing marketplace dynamics is addressed when an organization forms some form of adaptation to the changing environment. Some of the changes that organizations can indulge in are technological innovations, customer tastes, and legal factor changes. Also, regulatory, legal and economic changes are in fact put into consideration. Being up to task with the dynamics of the strategic window opening or closure on the part of the organizations is crucial. The importance of this is the prevention of the participation in the window being disastrous which can be difficult for the organizations to recover from or overcome.
Product and industry lifecycle management are just but examples of time-based models that are in place that are of importance in a given strategic marketing procedure (Phaal et al., 2011, 220). Under this variable, there is a difficulty that emerges when carrying out some form of determination of the boundaries that exist in a particular market dynamic. When assessing the life cycles, management of the stages in the lifecycle are noted and in so doing, the rate of growth and even sales, come into play. The last variable is on the assets and the relevant skills that a given firm can acquire for them to participate actively in strategic marketing. Here, the skilled personnel in a given company are considered mostly.
Key elements of strategy
Introducing the key element of strategy in the business models employed by organizations is of importance at this particular time. It is worth noting that strategic marketing management addresses the facts that the marketing strategy used in the organizations is working without which, changes ought to be inevitable (Martin, 2011, p.15). A fusion of strategy, business models and tactics are necessary to the implementation of a given strategic marketing. The key issues that are worth making reference to in the topic of strategic marketing are value determination i.e. both its creation and its value. The other point touches on the element of making choices that are tactful in the quest for maximization of the stakeholder’s value. In this sense, the said wise decisions are in fact held by the need for achieving goals (Casadesus-Masanell & Ricart, 2010, 199).
Strategic Account Management
Finally, tackling the theory of customer portfolio can be well-understood having had the background mentioned above on the new age of marketing that takes place in the organizations. Storbacka (2012, p.259) notes that the topic of strategic account management is a topic that is limited in research. This strategic performance tool is pretty much under investigated so to speak as mentioned by Storbacka. Additionally, Storbacka, 2012 (p.259) suggests that when an organization is in the position of identifying and maintaining customer relationships contributes to the benefit of achievement of corporate objectives both in the present and the future, significantly. The author also mentions the fact that the management of such important customer relationships is pivotal to the organization as far as acquisition of success in the marketplace is concerned. Bradford et al., (2012, p.41) concurs with Storbacka and adds on to the definition of the strategic account management, plus mentioning the topic’s importance concerning the organization. Bradford et al., (2012, p.41), says that Pareto Principle governs the idea behind selling products to a particular strategically placed and valuable customers. In an extension of this principle, the vital few are targeted for the advantage of the many who are in fact trivial. The other interpretation that can aid in bringing the point at home is the idea that a large chunk of sales or even profits is attributed to a small group of contributors who make the whole lot difference. Therefore, with that in mind, it is worth noting that the management in the given organizations ought to address or rather put into consideration the aspect of the actual management of its critical strategic accounts per se.
Strategic accounts management is of crucial importance to the organizations that are in fact selling a particular item. This is so as long as its long-term actions are inclined towards the needs of identification, establishment, development, and maintenance of sound relationships with such like key accounts (Martin, 2011, p.16). This mandate, in the organizations, is often charged to the salespeople under the sales departments. The desires and needs of the accounts are bound to differ and in such a case, the selling organization is tasked with the needs for solutions that are meant for the integration, development, and proposals, which are deemed to be beneficial. In this case, the needs of the accounts are addressed when the organizations provide combinations of certain goods and or services to meet the needs mentioned above. When organizations get to understand this subject, then it will be clear as to why the notions of marketing terminologies which are in actual practice in the organizations e.g., promotional marketing mix are becoming outdated by the day because of the advent of oversimplifications that are seen to be in place.
According to Bradford et al., (2012, p.42), strategic account management can be effected by team structures that are different. The compositions can include in their constituents, members that are temporarily based as well as those that are dedicated. At this juncture, coming up with the framework for the management of strategic accounts is of importance and in this case, competitive advantage and return on investment is the beneficial outcome of such management ventures. It is also evident that the need for the establishment of goals and design of processes is instrumental, and it should be done specifically for each particular account. The goals for the temporary management teams are to address the fact that a certain customer may at the moment be having short-term value but with long-term future potential. A major goal for the fluid management structures is ensuring that the relationship with the customers mentioned above is nurtured with the identification of any existing barriers to the relationship. For those teams that are dedicated, when the short term lifetime of the client is very crucial to the organization as far as making revenue is concerned. For the goals to be realized, processes must be set in place to facilitate. Skilled process thinking and the establishment of individual relationships for the fluid relationships is paramount. Dedicated management structures look into establishing institutional relationships and address improvement in coordination, enhancement of the learning speed and thus improve implementation.
The structure of the strategic account management is complicated given that changes are imminent in the organization chart. The structure, in fact, requires support from the top level management as far as resource allocation is concerned. Particular firm based factors are important in a given strategic account management, and this tackles topics like customer lifetime value as far as customer retention tactics, innovations owing to the increased resource allocation and efficiency and effectiveness where productivity is promoted at all costs. Both sales volumes and profits must be provided arising from both the fluid and the dedicated teams. Other factors affect the strategic account management ventures and in this case, team, environmental, and organizational factors are considered. These include; compensation, sales volume, effectiveness, client’s climate, the effects of the industry, team conflict and collaboration, integration at the social perspectives, communication and lastly, proximity.
Recommendations
The management of strategic accounts is crucial to the organization. Organizations can implement this phenomenon in their business function as a means of gaining competitive advantage. Marketing strategy is all about the positioning of an organization in the market and so an organization can look at the factors that revolve around strategic account management and address them duly. In this case, both fluid and dedicated accounts can be developed with a clear definition of their goals and the processes that these accounts will take in their quest to have goal actualization.
Conclusion
Marketing is a crucial subject for the organizations that are involved with bits of selling activities. Marketing importance is drawn from the marketing strategy which is often aligned to the marketing philosophies which are above mentioned. Strategic marketing employs the use of tactics that would at the end of the day grant satisfaction of the customer’s needs and objective achievement for the organization. Management of the strategic marketing procedure is crucial for the determination of whether a marketing strategy is sound or not. Incorporation of new age procedures like strategic account management is worth noting given the advantages that come with the phenomenon.
References
Bradford, K.D., Challagalla, G.N., Hunter, G.K. and Moncrief III, W.C., 2012. Strategic account management: Conceptualizing, integrating, and extending the domain from fluid to dedicated accounts. Journal of Personal Selling & Sales Management, 32(1), pp.41-56.
Casadesus-Masanell, R. and Ricart, J.E., 2010. From strategy to business models and onto tactics. Long range planning, 43(2), pp.195-215.
Drummond, G., Ensor, J., & Ashford, R. (2008). Strategic marketing: planning and control. Amsterdam, Elsevier/Butterworth-Heinemann. http://site.ebrary.com/id/10382864.
Kotler, P. (2000) Marketing Management. Upper Saddle River, New Jersey: Prentice Hall.
Lusch, R.F. and Webster, F.E., 2011. A stakeholder-unifying, cocreation philosophy for marketing. Journal of Macromarketing, 31(2), pp.129-134.
Martin, G., 2011. The importance of marketing segmentation. American Journal of Business Education, 4(6), p.15-18
Phaal, R., O'Sullivan, E., Routley, M., Ford, S. and Probert, D., 2011. A framework for mapping industrial emergence. Technological Forecasting and Social Change, 78(2), pp.217-230.
Proctor, T. (2008). Strategic Marketing: an introduction (2nd ed.). New York: Routledge.
Storbacka, K., 2012. Strategic account management programs: alignment of design elements and management practices. Journal of Business & Industrial Marketing, 27(4), pp.259-274.
