Corporate objectives are established for many areas, but the most visible tend to be financial objectives. Typical financial objectives concern sales, sales growth, profits, profit growth, earnings per share, return on investment, and stock price.
Corporate objectives and resource allocation affect marketers in two basic ways. First, marketers are involved in setting the objectives for different organizational levels. Although the amount of marketing participation varies across firms, setting realistic objectives requires the market information and analysis that marketers can provide. Assessments of trends in the size and growth rates of markets and the potential actions of competitors are inputs for setting objectives and allocating resources. Second, corporate objectives and resource allocation decisions provide guidance for the development and implementation of business and marketing strategies.
As we see, marketing management relates to specific product marketing strategies. It differs from strategic marketing in its basic orientation. Strategic marketing focuses on broad strategic decisions at the corporate and business levels. Marketing management is concerned, by contrast, with specific strategic decisions for individual products and the day-to-day activities needed to execute these strategies successfully. At the operating level, marketing managers must focus on the four Ps of the marketing mix: price, product, promotion, and place (distribution).
The strategic role of marketing and marketing management is now in a period of considerable change and evolution. These changes are due to a number of important environmental phenomena that are affecting the way many firms do business. To begin, many well-known companies work closely with dedicated partners on the supply side (often using single supply partners) and the distributor side of their business, expecting their distributors to play proactive roles in the development of services and marketing strategy.
Other influences on marketing include the connected-knowledge economy; globalized and consolidated industries; fragmented markets; and demanding customers and consumers. With these changes, new kinds of competitors will emerge, markets will continue to become homogenized across country boundaries, and mass markets will erode in the face of mass customization. Business customers and individual consumers expect diversity and have multiple means of obtaining products, as well as learning about company offerings. Some observers foresee a future in which the Web will enable automated purchasing, anonymous transactions, and the bypassing of most intermediaries.
Let me speak about example — Sony Corporation. I can say that successful marketing strategies for Sony Corp. will be the following:
1) Product development strategy:
β’ New product innovations on the existing markets to keep position as premium brand, hence gain competitive advantage.
β’ Develop new products by creating alliances or joint ventures (Sony Ericsson).
β’ Conclusion: invest more money in R&D and become more dynamic.
It is too big to change overnight and long process. Sony has to improve the existing organization.
2) Conversion strategies
β’ Use knowledge and technology from the company’s different divisions to create new products and enter new markets e.g. new convergence products.
β’ Use its position as a big company to create alliances with new entrants and thereby eliminating future competitors.
These strategies, on my opinion, will help Sony to be even more successful international company.
Literature
Aaker, D.A. (1998), «Strategic Market Management», 5th edition, New York: John Wiley & Sons, Inc.
Kotler, P. (2000), «Marketing Management,» The Millennium edition, New Jersey: Prentice Hall.
Lawrence, P. R. and J. W. Lorsch (1967), «Organization and Environment,» Illinois: Richard D. Irwin.
McDonald, M. H. B. (1992), «Strategic Marketing: A State-of-the-Art Review,» Marketing Intelligence & Planning, 10 (4), pp. 4−22.
McDonald, M. (1996), «Strategic Marketing Planning: Theory, Practice and Research Agenda,» Journal of Marketing Management, 12, pp. 5−27.
Porter, M. (1981), «The Contribution of Industrial Organization to Strategic Management,» Academy of Management Review, 6 (4), pp. 20 — 600.
Rajagopalan, N. and G. M. Spreitzer (1997), «Toward a Theory of Strategic Change: A Multi-Lens Perspective and Integrative Framework,» Academy of Management Review, 22 (1), pp. 48 — 79.
