The Role of Strategic Marketing in an Organization - Report Example

Principles of strategic marketing management Name Institution Date The role of strategic marketing in an organization Introduction Evolving technologies combined with the dynamic global changes within the consumer demands, to a larger extent threaten even the most considered successful brands as well as established producers of both consumer and the business products. The contemporary bulletproof products can be considered as tomorrow’s distant memory within a landscape that is overcrowded with alternatives for consumer as well as business dollar. As a result, the capability to understand how an organization can successfully survive through the chaotic environments is considered crucial for competitive advantage. This can be achieved by carefully executing the strategic marketing practices. It is also important for the organizations to reduce the existing gap between the strategic marketing speculation and marketing practice (Aaker, 2001). Today’s executives are required to re-examine their marketing abilities by assessing the effects of their company’s decisions on the existing as well as potential customer’s desires in using the products. They also need to assess their marketing position as they expand their product lines, the safety of their brand extension and the risks associated in pursuit of a new product concept. Such decision-making issues are easily made through the execution of marketing strategy by the key executives in a firm. The study examines how the strategic marketing principles, tools, techniques are applied in Coca-Cola Company as the case of study and the company makes use of them to respond to the dynamic changes take place within the marketing environment. Coca-cola Company is identified as a beverage company as well as the leading producer and seller of soft drink. The company produces and distributes numerous brands within the United States and across the globe. In addition, the company produces and markets lots of fruit juices in conjunction with some other non-soda beverages. Coca-Cola Company is centrally located in Atlanta, Georgia (MacLaughlin, 2001). Whether in the operation of large or small organizations, research indicates that mainstream marketing can enable organizations to develop through the application of experience, skill-sets as well as creative approaches to the daily marketing by creating a highly effective and the results-driven marketing plan. This implies that development of a comprehensive marketing plan enables the marketing management to objectively assess their current marketing efforts in relation to product, distribution, pricing and promotional strategies. Furthermore, strategic marketing plan facilitates the organization’s assessment of their relationship with the entire business factors that include competition and target marketing, development of measurable sales objectives and outlining the product, distribution, pricing as well as promotion strategies designed in order to achieve such objectives (Brassington & Pettitt, 2000). Understanding the significance of a strategic marketing plan gives the marketing management the necessary power to control the destiny of their company. Additionally, the strategic marketing plan will enable them to smoothly navigate around their current competitors or the new competitors that may be threatening to potentially out-compete the market-share from them. Planning is strategic so are the entire organizational reactions to the threats that enter into a marketplace. From the experience of both developing and understanding the significance of a strategic marketing plan, various marketing leaders have been fortunate in seeing a number of organizations prosper from valuing the recommendations and from organizations that take their strategic marketing plan as a core factor to assist them critique their own existing plans. Marketing strategy is an operational strategy that is related to the product identification, advertising as well as selling, while corporate strategy involves the setting up of the objectives for an organization with the consideration of all the departments and not just the marketing section. Conventionally the corporate strategy has to be determined prior to marketing strategy. However, corporate strategy is associated with marketing plan within the value chain which is considered as the process of creating as well as marketing a product that customers are in need of. For instance, through market-sensing where research is used to do target marketing, in the new offering through which a product is researched and customer acquisition that encompasses the advertising activities which are aimed at attracting the target market or clients, are the key areas that relate marketing strategy and corporate strategy. In addition, customer relationship management is an important area that links marketing strategy to corporate strategy by ensuring the current customers are kept happy as well as loyal a company (Cateora & Graham, 2002). The process of Strategic Marketing Strategic marketing process undertakes three crucial phases such as planning, implementation and control. While the planning phase is normally perceived as the most significant phase, each of these steps is equally considered responsible for successful implementation of any firm’s marketing strategy. When it is created effectively, the process ensures the successful operation of an organizational marketing strategy. Development of a comprehensive marketing plan enhances the marketing management to objectively assess their current marketing efforts in relation to product, distribution, pricing and promotional strategies. Strategic marketing plan facilitates the organization’s assessment of their relationship with the entire business factors that include competition and target marketing, development of measurable sales objectives and outlining the product, distribution, pricing as well as promotion strategies designed in order to achieve such objectives. Therefore, understanding the significance of a strategic marketing plan gives the marketing management the necessary power to control the destiny of their company (Doyle, 1998). Strategic marketing plan will enable them to smoothly navigate around their current competitors or the new competitors that may be threatening to potentially out-compete the market-share from them. Planning is strategic so are the entire organizational reactions to the threats that enter into a marketplace. A focus on the implementation phase involves putting the marketing strategies into real actions through takes note of the facts about giving specific tasks as well as timelines to various people, the features, needs, elements and pitfalls. However, a more detailed discussion provides a five-step model of the strategic marketing process. This involves understanding the marketplace as well as customer needs and wants. It also deals with the designing a customer-driven marketing strategy (Payne & Frow, 2006). Construction of a marketing program that can be able to deliver superior value is another area of focus. Building of profitable relationships and the creation of customer delight is taken into consideration. Finally, capturing of value from the customers in order to create profits and the customer quality ensure a complete process. This implies that within the first four steps, there is creation of value for the customers as well as building the customer relationships, while in the final or fifth step value is captured from the customers in return. Such ideas are well illustrated in the diagram below (Palmatier, Jarvis, Bechkoff & Kardes, 2009). Coca-Cola Company which holds 65 of the major fountain soda market and is currently coming up with very innovative ways aimed at capturing a larger share, for instance, a fountain machine that provides music while pouring. Such new cups were carefully designed with some portability in mind so as to better accommodate the high or fast growing takeout of the business at the quick-service chains. Some of the Coca-Cola’s recent domestic marketing strategies include the Coke dominating fountain sales. Studies indicate that thousands of its consumers visit the fast-food restaurants on daily basis and Coke finds it very important to have the consumer consider drinking their product at the chains as McDonalds, Burger King as well as Domino’s Pizza. Tools used to develop strategic marketing strategy Various models are available for the development of strategic marketing plan. Products and services would appear to be of economic significance unless they are introduced as well as sold to end-users. As a result, strategic marketing planning model undertakes a different criterion. Although in general the marketplace considerably fast, fashionable and fickle, the strategic marketing planning model on other areas or certain factors. Such areas include introduction, positioning, entrenchment of either a product or service. This suggests that a strategic marketing planning model aims at designing a marketing methodology that can introduce a given product or service. After the identification of customer needs and expectations, the model seeks to establish the most appropriate as well as cost-effective method of introduction. Through the use of strategic marketing planning model, a product introduction should be expected to pave way to product positioning which dictates the deviations within a marketing planning strategy. Finally, the product positioning must determine the product entrenchment. This implies that a well-positioned product should equally be well entrenched within the marketplace. Coca-Cola Co. is operating within its existing brands, and it also develops some new global as well as local brands and the acquisition of either the global or local brands. In addition, Coca-Cola Company has invested a very huge amount of money in the marketing campaign in order to support their brands. Such campaigns were aimed at enhancing the consumer awareness as well as the consumer preference for a given brand. As a result, the Coca-Cola Company has retained its long-term growth in a profitable volume and great market share within the worldwide of non-alcoholic beverage market (Polk, 2008). Strategic Positioning involves positioning a unit of an organization in the future, while considering the changing environment as well as a systematic realization of that particular positioning. It is a tactic that requires an organization to devise its desired future position based on both the present and foreseeable developments, and hence making strategic plans to aid in realizing such positioning. Basically, strategic positioning is considered as a differentiation tactic by the customer segment, with the aim of dominating one market niche to a large extent, and thus matching the production costs, locations, price as well as the product to capitalize on the Rate of Interest (ROI) in combination. Therefore, strategic positioning calls for a more complex business operation, though managing such complexity increases overhead and also requires more sophisticated techniques, tools and knowledge for management. Coca-cola company undertakes market positioning through the provision of a range of products such as coke, sprite, Fanta and Diet Coke which are sold in different sizes and in various packing (Spallina, 2005). Since acquiring the new customers is considerably costly than keeping the already existing ones, relationship marketing is mainly geared towards the customers that emerge to be the most valuable for an organization. This implies that such customers expect a great deal of customer service and they would feel like the company recognizes them as a valued customer. Coca-Cola Company and its core competitor, PepsiCo had sometimes back saturated the local U. S. A. and the Europe markets. It discovered India to be the ideal market for its products due to the large population as well as the low-cost labor in order to operate its bottling plants. Similarly, international markets are more often than not different from the normal or local market. This necessitates the development of diverse marketing strategy and the stronger relationship building efforts. For instance, Coca-Cola built bottling plants within India so as to strengthen its relationship with the existing and emerging Indian customers in the exchange to their loyalty. Since the year 2003, Coca-Cola Company decided to reward its most loyal consumers as well as building closer relationships with such customers. Today, different brands to the consumers within different life stages, however, the consumers drink more than a single beverage a given time within their lifecycle. Coca-Cola Company provides its customers with the opportunity choose from their many brands distributed within the market places (Trifiletti, 2002). Use of strategic marketing techniques Strategic marketing involves Initiating, negotiating as well as managing the acceptable exchange relationships with the key interest groups or some constituencies. This should be in the pursuit of achieving a sustainable competitive advantage within the specific markets and on the basis of an organization’s long run consumer, channel and some other stakeholder franchise. For instance, the Coca-Cola Africa Foundation is considered to be the ideal example which was established in order to manage and provide fund support to the community initiatives in the African continent. In June the year 2001, UNAIDS announced its partnership with the Coca-Cola Africa Foundation purposely to introduce some new impetus to assist in the battle against AIDS. This collaboration between the Coca-Cola and UNAIDS is developed based on the existing models of public or private partnerships so as to strengthen the private sector involvement in addressing the global issues such as HIV/AIDS. Coca-cola Company is increasingly reaching places that it has not established before. The company is conducting expansions in order to reach the new territories as well as increase its profitability and clients. Furthermore, Coca-Cola Company is making every effort to bring the so referred to as “coca cola experience” to a high number of people within more countries. The company also makes use of the new branches and subsidiaries located in different countries to acquire more territories as well as reach more people within a short period of time. Such branches have been well oriented and trained on the company policies and procedures (Polk, 2008). Studies indicate that refreshing a thirsty world is considered to be a unique opportunity for the Coca-Cola Company and to all its associates in order to build shareholder value. This suggests that company focuses on the only production as well as distribution system that is capable of identifying opportunity on a global scale. As a result, the company is committed to realizing such global opportunities. With Coca-Cola as the main enterprise, theirs is an all-inclusive system of the superior brands and associated services through which the company, their franchises as well as other business partners so as to deliver satisfaction and the real value to its customers. In so doing, Coca-Cola Company enhances its brand equity on a global basis. Eventually, this increases the shareholder wealth.Coco-Cola Company identifies the various long-term objectives that can effectively reward its intentions. The main objective of the management is to expand the shareowner value over time. The company acknowledges the role played by certain key objectives in accomplishing the overarching objective. Such inherent objectives pursued by the Coca-Cola Company include profitability, productivity, competitive position and technological leadership enhancement (Burnett & Welford, 2007). The Coca-Cola Company exists in order to benefit as well as refresh everyone who appears to be touched by its business. Its core competencies or values include provision of excellent customer services, taking good care of its people, giving back, doing the “right” thing, creating the shareholder value, ensuring respect for all the people, entrepreneurial spirit and building very strong relationships. Based on the idea of demographics, the Original Coke of Coca-Cola Company is targeted to individuals who are of ages between 14 and 30 years. Such individuals appear to be young, unmarried and more often than not are students. Furthermore, Coca-Cola's website provides both bright and playful colors and their online store presents a number of items that are geared toward young adults. Majority of the commercials also focus on the young adults. However, it can be argued that certain commercials presented can be well focused to a specific psychographic segment, as well (Khan, 2009). Responding to the changes within the market environment In case the Coca-Cola is not capable providing an appropriate mix of the required incentives to its own bottling partners, the partners takes the most appropriate actions that, while the maximizing of their own short-term profits, can be detrimental to the Coca-Cola Company. Such bottlers devote more of the Company’s resources to its business opportunities or the products a part from those that are beneficial for the Coca-Cola Company. Such actions could, in the long run, have an adverse effect on Coca-Cola’s profitability. Additionally, loss of either one or more of its key customers by its existing main bottling partners could in an indirect way affect the Coca-Cola’s business outcomes. This dependence on the third parties is considered as a weak link in the Coca-Cola’s operations as well as increases its business risks (Trifiletti, 2002). A detailed SWOT analysis of Coca-Cola Company Strengths Coca-cola’s strength is its international popularity. The company is commonly known throughout the world. People across the world purchase and take drinks of the different products that the two companies have. Strength of the Coca-Cola company is its strong brand name that it has. This strong brand name is what considerably makes the company as well as its products more popular. Furthermore, the strong brand brings the company very huge amounts of profit and the worldwide notoriety. Effective advertising is another strength that the company uses. The Coca-Cola company makes use of different advertising method. Weaknesses The major weakness of the Coca-Cola company concerns the health issues when its product is partaken. For instance, its products can result into some health problems if taken several times. This implies that the company is not capable of restricting the consumption of its product at all the times, and thus it might not be able to overcome the associated health problems in order to be closer to its clients. It also has the weakness of inability to limit certain age from consuming their product. For example, young children who could acquire some health problems from taking the company’s products are not controlled. Another weakness of the Coca-Cola company concerns not being in a position to separate itself from the other beverage companies. This is reflected when the Coca Cola is related to Pepsi can as well be discussed about subsequently. The Company has a strong brand name. However, it does not have one major thing that distinguishes them. Opportunities Opportunity for a given company is to make products that can offer not only satisfaction to the clients, but also the health benefits. The Coca-cola company can possibly create a product that is not harmful to individual’s health without a bad taste.  This suggests that an opportunity for any company is to seek for more ways to provide a distinctive taste to its product. In so doing, the Coca-cola company will avoid being co related with the Pepsi as well as other competitors of the product. The company can effectively reach more territories that are not yet reached by the competitors. This attempt will enable the Coca-Cola company to have added profits. Threats Coca-Cola’s threat concerns the laws within the country it is operating in. Such laws although are vital part of the country, they initiate order as well as discipline within the country. Another threat to the Coca-Cola company involves the use of the tariffs and a tax where the company has agents in different countries. These taxes and tariffs are normally collected by the government of such countries as the additional funds for countries’ projects in. The collection made is a threat since such causes more expenditure to the company. Basically, Coca-Cola Company remains the most famous brands of the Cola worldwide. It has been capable of withstanding the obstacles faced with. For instance, the changes within the management are caused by the three main different factors as the external environment, internal changes as well as the proactive reaction to the probable threats and difficulties. It can also be discovered that Coca-Cola acquired bottling business within South Korea that resulted into more access to the retail stores in South Korea and make better entry into China, Japan and Malaysia. Furthermore, Coca-Cola takes no notice of its country-defined market perspective as well as makes a focus on the regional strategic view and has acquired the local brands of both tea and coffee. The Global Influence of the Coca-Cola Company is that it is a company that is well-known across the world for its product. The Company’s drink spans all the ages, colors, races as well as countries. The Coca-Cola Company is one major soft drink company that has been in existence for over 100 years. As a result, it has used such time to perfect its unique marketing strategy. Furthermore, Company’s success was built on various people with the ideal business knowledge and the know-how to undertake the production of soft drinks, and hence convert it into a symbol that appropriately represents humanity (Zikmund, Mcleod & Gilbert, 2003). Conclusion The soft drink industry is centered on a battle for supremacy of the Pepsi and Coca-Cola as the leading two companies. This battle gives life to the soft drink industry.  The main goal of the Coca Cola is to generate growth and development for the company. Coca-Cola Company not only intends to reinvigorate itself, but inspire all the people that work for the Company. Its strength is the Company’s international popularity that it has. Today’s executives are required to re-examine their marketing abilities by assessing the effects of their company’s decisions on the existing as well as potential customer’s desires in using the products. Strategic positioning calls for a more complex business operation, though managing such complexity increases overhead and also requires more sophisticated techniques, tools and knowledge for management. Development of a comprehensive marketing plan enables the marketing management to objectively assess their current marketing efforts in relation to product, distribution, pricing and promotional strategies. Coca-cola Company is increasingly reaching places that it has not established before. The company is conducting expansions in order to reach the new territories as well as increase its profitability and clients. References Aaker, D.A., (2001). Strategic market management 6th edition. New York, NY. Wiley & Sons. Brassington, F. & Pettitt, S. (2000). Principles of Marketing, 2nd edn, England, Pearson Education Limited. Burnett, M., & Welford, R. (2007). Case study: Coca-Cola and water in India: episode 2. Corporate Social Responsibility and Environmental Management, 14(5), 298-304. 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