The concept of Strategic Market Planning

There is no denying the fact that strategic market planning refers to long-term setting indicators through which the goals of the management are targeted and achieved.  A strategic market plan gives direction to a firm's efforts and better enables it to understand the dimensions of marketing research, consumer analysis, and product, distribution, promotion, and price planning, which play a vital role in revitalising overall activities of the market.

We will have a special look at an impression of the strategic marketing process, including the expansion of:

• SWOT Analysis
• Mission Statement
• Organizational Goals
• Corporate Strategy
• Marketing strategy

The strategic market plan is not a marketing plan; rather, it is a plan of all aspects of an organisation's strategy in the marketplace. The process of strategic market planning yields a marketing strategy that is the structure and development of the marketing plan. Developing a marketing plan is your group project assignment. A marketing plan deals primarily with implementing the market strategy as it relates to target market(s) and the marketing mix.

Strategic Market Planning

A Strategic marketing plan is an outline of the methods and resources required to achieve organisational goals within a specific target market(s). It enunciates the direction it will pursue within its preferred environment and guides the allocation of resources and effort. Strategic planning requires a general marketing orientation rather than a narrow functional orientation. All functional areas must include marketing and must be coordinated to reach organisational goals. It is a hierarchical process, from companywide to marketing specific, indicating the Marketing concept and implemented from top down.)

Companywide - SBU

A firm can be broken down into several strategic business units. Each SBU is a division, product line, or other profit centre within the parent company. An SBU has its own strategic plan and can be considered a separate business entity competing with other SBU's for corporate resources.

For example, PepsiCo Companies' SBUs include:

• KFC
• Taco Bell
• Pizza Hut
• Mountain Dew
• Lipton Tea Brands
• Frito Lay

IE, The College of Business and Economics is an SBU of the University of Delaware.

A strategic plan gives:

• Direction better enables the company to understand the market. function dimensions
• Make sure that each division has clear, integrated goals
• Different functional areas are encouraged to coordinate
• Assesses SW & OT
• Assesses alternative actions
• It is a basis for allocating company resources
• A procedure to assess company performance

The strategic planning process may include the following, although this differs from one organisation to another:

• Develop a SWOT analysis
• Develop a Mission Statement that evolves from the SWOT analysis
• Develop Corporate Objectives that are consistent with the organisation's mission statement.
• Develop a corporate strategy to achieve the organisation's objectives. [If the organisation is made up of more than one SBU, then follow the loop again for each SBU, then proceed]
• Marketing (and other functional objectives) must be designed to achieve the corporate objectives
• Marketing Strategy, designed to achieve the marketing objectives.

The strategic market planning process is based on the establishment of organisational goals, and it must stay within the broader limits of the organisation's mission, which is developed taking into consideration the environmental opportunities and threats and the company's resources and distinct competencies.

Because of the above, it is evident that a firm can then assess its opportunities and develop a corporate strategy. Marketing objectives must be designed so that they can be accomplished through efficient use of the firm’s resources. Corporate strategy is concerned with issues such as diversification, competition, differentiation, interrelationships between business units and environmental issues. It attempts to match the resources of the organisation with the opportunities and risks of the environment (SWOT). Corporate strategy is also concerned with defining the scope and roles of the SBUs of the firm so that they are coordinated to reach the desired ends.