STRATEGIC PLANNING

The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunity. It relies on developing a clear company mission. Supporting objective, a sound business portfolio and coordinated functional strategies.





Definition Of The Company Mission
Mission Statement is a statement of the organization's purpose-what it wanted to accomplish in the larger environment. Mission statement should be Market Oriented. Mission should be realistic, specific and should fit the Market Environment. Organisation should base its mission on its distinctive competencies. Mission statement should be motivating.

Setting Company Objective And Goals
Mission need to be turned into detailed supporting objective for each level of management. Manager should have objectives and be responsible for reaching them. Mission leads to a hierarchy of objectives, including business objective and marketing objective. Goals than become the company's current objective.

MARKETING CHALLENGER INTO THE NEXT CENTURY

Marketing operates within a dynamic global environment. Today's companies are wresting with changing customer values and orientations, economic stagnation environment decline; increased global competition; and host of other economic, political and social problem.

GROWTH OF NONPROFIT MARKETING
Private college, facing decline enrollment and rising cost are using marketing to compete for student and funds. They are defending target markets, improving their communication and promotion, and responding better to student needs and wants. Churches are conducting marketing research to gain a better understanding of member needs, and are residing their "services offering" accordingly. U.S. Army has a marketing plan to attract recruits, and various government agencies are ow designing social marketing campaigns to encourage energy conservation and concern for the environment, or to discourage smoking, excessive drinking, and drug use.

THE INFORMATION TECHNOLOGY BOOM
The boom in computer, telecommunications, and information technology, as well as the merging of these technologies, has had a major impact on the way business produce and market their products and services. The information superhighway will link customer to companies in ways that were unimaginable only a few years ago. The internet is vast and burgeoning global web of computer networks, with no central management or ownership. The internet links computer user of all types around the world. As information technology becomes user friendlier, the astute marketer will learn how to use the various systems to increase business and better serves the customer. The use of World Wide Web has given companies access to millions of new customers are a fraction of the cost of traditional advertising form.

RAPID GLOBALIZATION
With the advancement of telecommunication and transportation technology. This has allowed companies to greatly expand their geographical market coverage, purchasing and manufacturing. Almost every company, large or small, to touched in some way by global competition. Consumer goods product introducing new product into emerging market abroad. Companies taking advantages of international market opportunities. Many domestically purchased goods and services are "hybrids", with design, material purchases, manufacturing, and marketing taking place in several countries.

THE CHANGING WORLD ECONOMIC
World has growth poorer during the past few decades. A sluggish world economy has resulted in more difficult times for both consumers and marketers. People need is greater than ever, but people are lacking the mean to pay for needed goods. Although wages has risen, real buying power has declined. Current economic condition creates problems and opportunity.

THE CALL FROM MORE ETHICS AND RESPONSIBILITY
Corporate ethics has become a hot topic is most every business arena, from the corporate boardroom to the business school classroom. The ethics and environmental movements will place even stricter demands on companies in the future. Companies will held to an increasingly higher standard of environmental responsibility in marketing and manufacturing activities.

THE NEW MARKETING LANDSCAPE
Successful firms in mature industries learned that they cannot overlook emerging markets, technologies, and management approaches. Companies will have to become customer oriented and market driven. Changing marketing landscape will be a strong focus on the marketplace and a total marketing commitment to providing value to customers.

Marketing Management Philosophies

There are five alternatives concepts under which organizations conduct their marketing activities: the production, product, selling, marketing, and social marketing concepts.

The Production Concept
Production concept favor product that is available and highly affordable. Focus on improving production and distribution efficiency. It is useful when the demand exceeds supply and production cost is too high and improved productivity to bring down cost.

The Product Concept
The product concept will favor product after quality, performance and innovative feature. Organization should devote energy to make continuous product improvement. The product concept also can lead to marketing myopia.

Selling Concept
Selling concept, which holds that consumer, will not buy enough of organization's product unless it undertakes a large-scale selling and promotion effort. It practical with unsought goods and in non profit area. Example: political party, firms practice the selling concept when they have over capacity. Their aim is to sell what they make rather than what the market wants.

The Marketing Concept
Marketing concept hold that achieving organization goal depend on determining the needs and wants of the target market and delivering the desired satisfaction more effectively and efficiently than competitor do. Selling concept takes an inside-out perspective, marketing concept take an outside-in perspective.

The Societal Marketing Concept
It hold that organization should determine the needs, wants, interest of target market and deliver superior value in a way that maintain or improved the customer's and the society's well.

Marketing Management

Marketing Management is defined as the analysis, planning, implementation and control of programs designed to create, build and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.

Demand Management

Marketing Management is concerned not only with finding and increasing demand, but also with changing or even reducing it.
1) Demarketing's aim to reduce demand temporarily or permanently (move traffic away from a popular tourist attraction during peak demand times).
2) In reality, marketing management is really demand management.

Building Management

A company's demand comes from two groups: new customer and repeat customer. Today emphasis is shifting. Beyond designing strategies to attract new customer and create transaction with them, company now are going all out to retain current customer and building lasting customer relationship. Companies are facing some new marketing reality. Changing demographics, a slow-growth economy, more sophisticated competitor and over capacity in many industries cost of attracting new customer is arising. So losing a customer means more than losing single sales. Work to retain customers make good economic sense. Company can lose money on specific transaction, but still benefit greatly from long term relationship. The key to customer retention is superior customer value and satisfaction

Marketing

The concept of markets finally brings us full circle to the concept of marketing. Marketing means managing market to bring about exchanges and relationships for the purpose of creating value and satisfying needs and wants. The modern marketing system is characterized by the company and competitors sending their respective products and messages to consumers either directly or indirectly through marketing intermediaries to the end users. Environmental forces affect the system.

Markets

The concept of exchange and relationships lead to a concept of market. A market is the set of actual and potential buyers of a product. Originally a market was a place where buyers and sellers gathered to exchange goods. Economics use the term to designate a collecting of buyers and sellers who transact in a particular product class (as in the housing market). Marketers see buyers as constituting a market. Modern economies operate on the principle of division of labor, where each person specializes in producing something, receives payment and buy needed things with this money.Thus, modern economies bound in markets.

Exchanges, Transaction And Relationships

Marketing occurs when people decide to satisfy needs and wants through exchange. Exchange is the act of obtaining a desired object from someone by offering something in return. Exchange is only one of many ways to obtain a desired object. Exchange allows a society to produce much more than it would with any alternative system. Whereas exchange is a core concept of marketing, a transaction (a trade of values between two parties) is marketing's unit of measurement. A transaction usually involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement. Most involve money, a response, and action. Transactions in marketing are part of a larger idea of relationship marketing. Beyond creating short-term transactions, marketers need to build long-term relationships with valued customers, distributors, dealers and suppliers. To build this relationship (beyond offering consistently high value and satisfaction ) the marketer can build a marketing network (consisting of customers, suppliers, distributors, retailers, ad agencies and others whom the company has built mutually profitable-business relationships).