The Effects of Strategic Marketing on Business Performance - Dissertation Example

Marketing is one of the most significant factors of the business and in the book Practice of Management Drucker wrote, “There is an only valid definition of business purpose to create a customer…[Therefore], any business enterprise has two -- and only these two – basic functions: marketing and innovation. They are the entrepreneurial functions. Marketing is the distinguishing, the unique function of the business.” (Silk, 2006, p.vii) So it is evident, for outperforming the competition and taking accurate marketing decisions, every company requires good marketing knowledge.

An organization’s product positioning and services depend on the performance and implementation of intellect and good strategic plans. This can be explained simply by the statement about marketing management provided by Moore and Pareek (2009, p.7) “in business, marketing has two aims. The first is to attract new customers by highlighting the potential value of good service. Getting customers is an active process, meaning the business must solicit the customer; rarely do customers come to business.

The second aim is to retain customers by continually meeting and surpassing the customer’s satisfaction with the products.” (Moore & Pareek, 2009, pp.7-8) In the present era, the market has become highly competitive. In this competitive market, a strategy is needed to offer a product or service which will do better than the competition. In this context, Kenechi Ohmae stated that “What business strategy is about – what distinguishes it from all other kinds of business planning – is, in a word, competitive advantage.

Without competitors there would be no need for strategy, for the sole purpose of strategic planning is to enable the company to gain, as efficiently as possible, a sustainable edge over its competitors.” (Mercer, 1996, p.13) Hence, the marketing strategy must be executed by a proper method. To create a marketing strategy for business a company should think about some situational factors in business. Those are, when the market is attractive and the company is holding a strong position in that particular industry, then it must invest the best resources to support the offering.