The Role of Marketing in Strategic Planning

Role of Marketing in Strategic Planning

Introduction: Role of Marketing in Strategic Planning

Strategic planning is the process of developing and maintaining a feasible fit between the organization’s objectives, skills, and resources and its changing marketing opportunities. In this article let’s see the Role of Marketing in Strategic Planning

What is Market-Oriented Strategic Planning?

Strategic planning with example

It is “the managerial process of developing and maintaining a viable fit between the organization’s objectives, skills, and resources and its changing market opportunities”.

Strategic Planning Objectives

Strategic planning aims at shaping and reshaping the company’s businesses and products so that they yield target profits and growth.

The idea is to rationalize the overall growth of business organizations rather than to rely on the proposals of individual departments and accidents of nature. Strategic planning is a formalized review process that can and should lead to higher profits and sales for the whole business organization.

Strategic Planning Stages

There are three strategic planning stages in strategic planning; i.e. actions are taken in these areas. They are discussed below.

Stage 1:

In the beginning, it is acknowledged that, each of the business of the company is different, and as a result their profit potentials are different as well.
Keeping this in mind management allocates resources to different business differently, based on the profit potential of the business in question.

2nd Stage:

Second, each business is assessed accurately by considering the market’s growth rate and company’s position and fit in that particular market by using both current and anticipated sales and profits.

Stage 3:

The final area receiving attention is formulation of strategy. If a company has more than one business, it must develop individual game plan for each of the businesses. The purpose of developing such a plan is to achieve the long-run objectives of the company.
The game plans are prepared based on the company’s position in the industry, its objectives, opportunities, skills, and resources. It implies that companies doing the same business may have separate game plans depending on the company’s position, objectives, opportunities, skills, and resources.

Role of Marketing in Strategic Planning

In the strategic planning process, marketing plays the most vital role. If you want to understand marketing management in its true perspective, you must have clear comprehension on strategic planning. You should know that the top management at the headquarters basically prepares the corporate strategic plan. It takes into account the whole organizations, we mean all of the businesses are considered.
The corporate strategic plan is prepared showing guidelines for each of the businesses so that the company as a whole can ensure a profitable future.
Again, if a company has number of divisions, each division prepares divisional strategic plan by showing resource allocation to the units of business under the division.
Each business unit also prepares business unit strategic plan to make the unit a profitable one. At the last, marketing plan for each product level is prepared showing how sales will be achieved and profit will be made from each product class.

Important Role of Marketing in Strategic Planning

The importance of this study for organizations is the opportunity to see how marketing planning can be used as a management tool, leveraging it in the market. With the expansion of competition, the use of marketing and its interests must be established as a way of acquiring competitive advantage, adapting it to the reality of the company.

In short, business organizations use this tool to add value to their offered product or service. According to the literature, marketing has the role of making selling and / or offering services easier. With a well-designed approach to its compounds, management can become easier.

Conclusion: Role of Marketing in Strategic Planning

Thus, the Role of Marketing in Strategic Planning is very crucial for any organization. Although the topic is discussed among most managers, few still know how to develop a harmonious approach to its aspects. Studying marketing planning in small companies is very topical, both for its importance and for the high number of MSEs in the national economy. These are major drivers in terms of job creation, source of income, among others.

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The Role of Marketing in Strategic Planning

Role of Marketing in Strategic Planning

Introduction: Role of Marketing in Strategic Planning