Planning Funclional Strategies

The company's strategic plan establishes what kinds of business the company will be in and its objectives for each. Then, within each business unit, more detailed

Marketing Within Strategic Planning

Existing products

M o.w products

Nfew markets

Existí ng

Nfew markets

Existí ng

Market development

Market penetration

Product/market exp ansion grid planning takes place. The main functional departments in each unit - marketing, finance, accounting, buying, manufacturing, personnel and others - must work together to accomplish strategic objectives.

Each functional department deals with different publics to obtain resources such as cash, labour, raw materials, research ideas and manufacturing processes, For example, marketing brings in revenues by negotiating exchanges with consumers. Finance arranges exchanges with lenders and stockholders to obtain cash. Thus the marketing and finance departments must work together to obtain needed funds. Similarly, the personnel department supplies labour, and the buying department obtains materials needed for operations and manufacturing.

There is much overlap between overall company strategy and marketing strategy. Marketing looks at consumer needs and the company's ability to satisfy them; these factors guide the company mission and objectives. Most company strategic planning deals with marketing variables - market share, market development, growth - and it is sometimes hard to separate strategic planning from marketing planning. Some companies refer to their strategic planning as 'strategic marketing planning'.

Marketing plays a key role in the company's strategic planning in several ways. First, marketing provides a guiding philosophy - company strategy should revolve around serving the needs of important consumer groups. Second, marketing provides inputs to strategic planners by helping to identify attractive market opportunities and by assessing the firm's potential to take advantage of them. Finally, within individual business units, marketing designs strategies for reaching the unit's objectives.

Within each business unit, marketing management determines how to help achieve strategic objectives. Some marketing managers will find that their objective is not to build sales. Rather, it may be to hold existing sales with a smaller marketing budget, or even to reduce demand. Thus marketing management must manage demand to the level decided upon by the strategic planning prepared at headquarters. Marketing helps to assess each business unit's potential, set objectives for it and then achieve those objectives.

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