Marketing is Key to Survival in Global Economy: Innovate & Compete - Essay Sample

Introduction

In the world today, marketing is an essential aspect of most corporations. Both large and small businesses are competing for the same market. Companies that practice innovation and creativity are emerging as victors in the market segment. The global economy has realised the change emanating from small companies and have the needed support that would help in sustaining their growth (Kumar et al., 2018). With this in mind, it is clear that the survival of any organisation is dependent on the marketing efforts coupled up with the financial operations together with the different other functions within a corporate structure.

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Accordingly, marketing has a significant role to play in establishing the relationship existing between consumers and the offerings of a company to the market (Ejrami et al., 2016). Marketing yields the desired confidence for a company to try a new product in a market when contrasted to situations where the products enter in a market without any form of publicity. According to Ejrami et al. (2016), the marketing function is critical in an organisation regardless of whether it is a profit or a non-profit entity. Marketing has a role to play in shaping the image of a corporation and influences how people associate with the products and services offered. In effect, it has a role to play in allowing people to freely associate with the products and services provided within a corporation.

In profit-led firms such as Craft Supplies, marketing is responsible for the overall increases in revenue and profitability. In addition to that, the function helps a company in having a large customer base, which, in turn, leads to overall sale increment. Similarly, Ferreira and Coelho (2017) asserted that marketing within an organisation aids in branding. In companies, the marketing function or department is actively involved in publicity activities, advertising, and interacting with customers through feedback. Before a company launches any product, marketing is the first step. It is often the last step as well since the department is focused on understanding the needs of the consumers prior and after a product launch (Ejrami et al., 2016). With effective marketing techniques, an organisation can successfully meet the needs of the customers.

Further, organisations are competing with each other to remain in the minds and heart of the consumers. It is the wish of every corporation to protect the market share. According to Ferreira and Coelho (2017), marketing is the centre of customer loyalty and retention of consumers. In consequence, the marketing department in a firm is involved in conducting promotions and campaigns frequently. Importantly, this has proved to be a prosperous initiative in attracting consumers. When a company lacks a well-functioning marketing department, its brands are not likely to be illuminated, and a company would be lifeless. As Ferreira and Coelho (2017) argued, the success of a company is not determined by the application of funds to different kinds of investment but rather the relationship that a firm has with its customers. The responsibility of a marketing department is to maintain the right relationship with the consumers.

Relationship Between Marketing Strategy and Corporate Strategy

The difference between corporate and marketing strategy could be confusing since the two overlap with each other at some point. Understanding each term is essential for a firm to have clearly defined corporate and marketing strategy. Corporate strategy, as Vallaster and Lindgreen (2011) stipulated, is the long-term planning for an organisation that gives a firm the sense of direction and goal. In contrast, marketing strategy is the ultimate goal of increasing sales and enhancing a competitive advantage sustainably. A company comprises of various departments and functions that include marketing, finances, production, human resources, and IT. Vallaster and Lindgreen (2011) argued that an efficient organisation results when all the departments work together undisputedly. Corporate strategy helps in ensuring that all departments work together as teams to achieve the designated outcomes. With this in mind, a corporate strategy should not violate the strategic goals of the departments, but instead, they should be aligned with each other.

A marketing strategy focuses on the means of attracting and retaining customers for the goods and services offered. The marketing strategy of a company heads the marketing department. The corporate policy governs the entire company. For instance, a company could have a plan that aims at fostering cost reduction. However, the technique should not influence the overall quality of products by undertaking measures such as the use of cheap materials and unskilled labour. Primarily, the corporate strategy should not interfere with the marketing techniques. From this, it is clear that the corporate policy governs the entire company. However, it gives importance to existing departmental strategies. Both the corporate and marketing strategy should work together for them to succeed.

How Marketing Strategy Can Lead to Competitive Advantage

Marketing strategies, if well implemented, can yield a competitive advantage within a corporation. Before designing a marketing strategy, Denning (2017) stipulated the need for an organisation to understand the needs of the consumers. The objective of a marketing plan is to identify the customer groups that could benefit most of the products and services offered. Notably, the process of marketing planning aids a company in identifying the target consumers and narrowing them down to the customers likely to purchase the product offerings. With time, this allows a firm to use its resources to reach out to the prime customer targets. It also aids in minimising wastage of resources that a company could incur when attempting to sell the products to persons who do not view them as urgent or necessary.

Further, a marketing strategy is essential in attracting new markets hence leading to competitive advantage. The management team of a company identifies the new demands that a company could venture into and gain traction before the competitors can get to them. Mainly, this is also referred to as the first-market advantage. Companies that are adept to marketing planning develop the capacity to spot the emerging markets that occur from factors such as the shift in populations and changes in consumer preferences (Denning, 2017). Effective market strategies help companies in selecting the most profitable opportunities to venture into among the different existing options.

Consequently, marketing strategy helps in emphasising customer service. It is paramount for companies to include plans to raise the levels of customer service. Vallaster and Lindgreen (2011) asserted that maintaining customer satisfaction leads to repeat business for a customer and serves as an opportunity for a firm to enjoy customers attracted by endorsements from other clients. Customer service is a form of competitive advantage, which is accomplished through tactics such as addressing the concerns immediately, having an individual to speak with, and reserving time to know customers while also identifying how a customer can improve its products and services. Business strategies have a substantial role in creating a formidable advantage.

Type of Competitive Positioning that an Organisation can Adopt

Three types of competitive positioning exists that the organisation can adopt to enhance its competitive advantage. They include expanding the overall market, guarding the existing market share, and expansion of the market share (Denning, 2017). According to Vallaster and Lindgreen (2011), expanding the market helps in increasing the number of users of a particular product. In addition to that, guarding the existing market share would mean concentration of the competitive advantages. Continued innovation of products and process is critical in increasing the effectiveness of competition and overall value it has to a consumer. Strong relations between the customers and distributors are an essential technique for enhancing the competitive positioning of an organisation. Lastly, a company may opt to expand the market share, which entails massive advertisements, improved distribution, price incentives, and development of new products. Mergers and takeovers are also critical in the expansion of the market share.

How to Develop a Marketing Strategy

A well-developed marketing strategy is essential in helping a business to realise the business goals and build a strong brand reputation. A proper marketing technique plays a substantial role in helping a company to target the products and services to the people that could buy them. Developing a marketing strategy is essential in allowing a firm to have its marketing-focused while also measuring and improving the overall sales. The first technique of developing a marketing strategy is the identification of business goals. Vallaster and Lindgreen (2011) stipulated that developing a market strategy require a corporation to identify the overall business goals, which would allow for the definition of marketing goals. The goals need to be targeted as much as possible to enable a company to measure them quickly.

The second step towards the development of a market strategy is stating the goals set. Defining the goals serves as a motivating factor that allows a team to study and benchmark the success attained thus far (Vallaster & Lindgreen, 2011). Some of the examples of marketing goals include increased market penetration. Such goals could be either long-term or short-term. However, these goals ought to be clear and measurable for them to be monitored easily. Thirdly, a corporation needs to research the market. Vallaster and Lindgreen (2011) asserted that research is a critical part of a marketing strategy. While studying, it is crucial to gather the information on a market that is inclusive of size, growth, and social trends. Researching the market allows an organisation to eye the market and remain aware of the changes occurring over time. Fourthly, a firm should profile its potential customers. After researching the market, a firm should develop a profile of the targeted consumers while identifying their needs. Mainly, this helps to ensure that a firm channels its products and services in a way that caters and serves the needs of the targeted customers.

The fifth step is profiling the competitors. As part of the marketing strategy, a firm should develop a profile of the competitors by identifying the products, supply chains, pricing, and marketing strategies (Ibrahim & Harrison, 2019). Such measures should help in identifying the competitive advantage. The sixth procedure entails the development of strategies to support marketing goals. A firm must list the target markets and construct policies aimed at attracting and retaining the customers. The seventh step is the use of the seven P's of marketing. According to Ibrahim and Harrison (2019), a company should choose the right combination across the seven P's that include product, price, promotion, people, place, process, and physical evidence to have a more successful marketing strategy. The final step involves testing of those ideas.

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