The concept of strategic marketing is regarded as the manner in which organization effectively make differentiation within itself and competitors through means of capitalization over its strength in order to offer better value to the customers in comparison with the competitors (Hollensen, 2015). Business utilizes strategic marketing for the sake of creating plan in order to effectively reach and provide satisfaction to the customers while enhancing the productivity as well as profitability. In the present report strategic marketing has been discussed in context of Shoprite. The organization is the largest retailer within South Africa. The firm has top position in the last five years. The study includes the principles of strategic marketing. Further it includes strategic marketing analysis.
1.1 Role of strategic marketing in Shoprite
Marketing strategy is regarded as the procedure that assist in allowing the firm to concentrate its scarce resources on the suitable opportunities that can result in increasing the sales and attain sustainable advantage over competitors. Strategic marketing concept is considered as the philosophy that lay focus on the proper determination of the opportunities related with marketing as basis for marketing planning and growth of the organization like Shoprite. Marketing is considered as the philosophy that results in the procedure by which the firm, individual and group can attain what is being needed by them through determination of the value, offering and communicating it and making its delivery to others (Jaakkola and et.al., 2010). The core concept in relation with marketing includes customers need, values, wants, products, exchange, communications as well as relationships. Marketing in strategic terms is associated with the direction and scope of activities that are long term which the firm performs in order to gain edge of competitors. The business makes application of the resources in the changing environment for satisfying the needs of customers when meeting the expectations of the stakeholder.
Strategic marketing is the need towards making development of strategy in order to cope with competitors, determination of opportunities in the market, developing as well as commercializing new products and services, allocation of resources between the activities of marketing and designing suitable structure of firm in order to make sure the desired performance is attained. The role of strategic marketing is greatly towards managing complexity of marketing, customer and stakeholder expectations as well as towards reconciling the impact of changes in the environment in relation with set of resource capabilities. Strategic marketing attempts at determining the manner of providing superior value to the profitable segment without affecting the individual customer association.
1.2 Analyzing the association among corporate strategy and marketing strategy
Corporate as well as marketing strategy often coincide or overlap as a reason, contrast to popular belief, main emphasis of marketing involves aspect of strategic planning towards development, pricing and product distribution. The two concept diverge in situation when corporate strategy has lesser to do with the development of product ad service as well as sales. However they are greatly involved in profit making (Kotler, Shalowitz and Stevens, 2011). Corporate strategy majorly lay emphasis on profitability. In addition to this it involves creation of the business structure, reduction in debt for improving the balance sheet of the organization, diversification of the product or service line towards increasing profits or decreasing dependence on single product, merging with or purchasing other product for creation of economies of scale. Further it also involves access to new technology and enhancing the volume of sales, reduction of cost of overhead in order improve the profit margin.
On the other hand marketing strategy is considered as the plan that include developing or sales of the product. They revolve around the marketing mix. The strategy of marketing is comprised of creation of the product having unique benefits towards sales, use of channels which increase the profits without affecting the brand image as well as use of advertising, social media, public activities for the sake of supporting brand message of the business (West, Ford and Ibrahim, 2015). The top management of firm needs to be in close contact with their department of marketing for the purpose of determining the corporate strategies which they want to pursue with the marketing strategy of the organization.
1.3 Analysis of manner in which marketing strategy is devised
Suitable marketing begins with considered, well informed strategy related with marketing. The development of marketing strategy can be done in the manner stated as under:
Writing successful strategy of marketing: For developing marketing strategy it is important to determine the goals and make development of stronger reputation regarding the product.
Identification of the organizational targets: Identification of the business goals is significant while developing market strategy. This is effective in defining the set targets for supporting them (Wilson, 2010).
Stating the marketing goals: On the basis of business targets specific set of marketing goals are defined. Such is effective in motivating the team in setting the benchmark for attainment of the success.
Research on the market: This is regarded as essential part of the marketing strategy. This includes collection of information regarding the market that includes its size, growth, social trends as well as demographics.
Profile of the potential customers: the use of market research is being done in order to devise customer profile that is being target and determination of their needs.
Profile of competitors: As a part of marketing strategy it is important for Shoprite to develop competitors profile through determination of product, supply chain, marketing tactics as well as pricing.
Development of strategies for supporting marketing goals: It is important to develop kind of strategies that can attract the target market and retain them for longer span of time (Drummond, Ensor and Ashford, 2010).
Use of 7 Ps of marketing: For development of marketing strategy it is important to make determination of the tactical marketing mix with the utilization of 7 P's of marketing.
Testing of the ideas: For deciding the tactics there is requirement to carry out online research and test ideas and approach on customers and staff and review the particular work.
1.4 Analysis of decisions and choices that are developed at corporate level
Within the strategic pyramid of the organization, corporate strategy is at the apex of the pyramid. The major decisions of the firm are being taken at this level (Varadarajan, 2010). Ansoff matrix assist in making determination of the marketing strategy which business needs to adopt. In case the business desires towards increasing the share within the present market of the existing product then it can adopt the strategy towards reducing the product price so that people can purchase it. Certain times firm needs to visit new market along with the product for enhancing the market. The management needs to decide upon introduction of the new product in existing market. However at certain point of time the business needs to go with newer market through development of new product. All the decisions that are major are being taken at corporate level.
1.5 Assessment of manner in which such decisions affects marketing at business and functional level
After the decisions are being made at corporate level then emerges the business level where major emphasis is on particular business. There is presence of various department such as finance, human resources as well as research who are allocated with specific job to be performed. Each one develops own targets and devise unique capabilities as well as competitive advantage (Moutinho, 2011). SWOT of individual unit is done and decisions are developed accordingly. They offer guidance at functional level in carrying out the duty.
The decision which are devised at functional level are concerned with management of the organization's functional areas (Wilson and Gilligan, 2012). It is evident the functional level is allocated with the duty to transform the corporate level and business level decisions into deeds. There are several departments like marketing, human resource, sales finance, research. Every function has greater contribution in attainment of the targets. This is deploying specialists in specific functional areas as well as make integration of several action under it.
1.6 Analyzing the approaches towards competitive positioning of business
For the purpose of competing within the market, Shoprite needs to possess clear set of targets. This is because it is effective in providing clear direction to the business. There is presence of several competitors within the market but business needs to make development of competitive strategy that can assist it in sustaining competitive edge over rivalries. When attaining the objective of marketing several risks are being faced by the organization. There is presence of greater number of competitors who are making sales of similar kind of product within the business environment. Several new competitors are coming up with varied strategies of marketing (Peter and Donnelly, 2011). Alteration within the regulations of government, taxes and other changes, environmental regulation enhances the barriers for firm. At certain point of time the firm has to take risky approach for keeping itself in the stronger position within the competitive market. There are certain situation wherein the company like Shoprite needs to follow its competitors. Under this firm waits waits till the competitor enter the market and bring innovation the product within the prevailing market.
2.1 Evaluation of approach to internal environment analysis
Shoprite is a famous retail outlet in the South Africa which delivers the high quality of product and services in the market. It majors objective is to earn the maximum profitability and market share from the South Africa market. Thus, it requires developing an effective strategy, policies, business activities and practices. In this manner, internal environment is essential aspect by which management can able to analyze its internal efficiency and condition. With assistance of the SWOT model, company can analyze its internal environment-
Strength- Its high quality of product and services is its major strength and it is available at all stores. Company gives the greater importance to organize product and offer the attractive discount for its customer (Mathur, Mathur and Kenyon, 2012). It another major strength is its online purchase and home delivery as it has it owns website on the internet by which it can easily communicate with customer and taking the feedback about the product and services.
Weakness- It majors weakness is its limited profit and revenue a compared to the other retail giants. It has not well train and high skilled employees that is why its business process is slow a compare to the other retailer in the south Africa.
Opportunities- Its major opportunity is to become the number one retailer in the world and expand it business at international level. It another opportunity is to enhance geographical presence to the neighboring states. It another major opportunity i to calories specific rating of essential food for the health conscious.
Threats- As it is the retailer which delivers the consumer product and services thus, its have high competition in the market. This is its major threat for the Shoprite. In addition to this, large numbers of the online retailer player in the U market is another \major threat for the cited venture (Liu, 2015). Furthermore, strict regulation and code of conduct is another major threat for the Shoprite.
2.2 Evaluation of approaches to external environment analysis
In order to survive in the competitive market, external environment analysis is very essential. External environment is consisted with macro and micro environment factors. These components can largely affect the business activities and function of the Shoprite. In order to analyses the market condition and business environment, external environment of the Shoprite is very important. Following are some major component of the Shoprite business environment-
Political factor- This factor is major component in the external business environment which includes governmental policies, code of conduct, rules, regulation etc which affect the organization's policies, activities and function. Corporation have to pay the tax of the product and services according to the taxation rate of the country which have decided by the government. (Leitner, Meissner and Martyna-David, 2015)
Environmental factor- In this factor includes the environmental components and natural resources such as air, water, gas, fuel, weather, climate etc. Company have to set its business operation according to the climate, weather and natural resource.
Social and cultural factor- As Shoprite is customer product company which deal with the customer related product and services. Social and culture factor largely affect the company's performance and business activities. In order to survive in the competitive market environment, corporation requires analyzing and asses the actual needs and wants of the customer. Acording to the customer choice, requirement and need, company have to deliver the product and services in the market
Economical factor- This factor includes the economic element that is prices recession, inflation, interest rates etc. Company have to consider the economic condition of the country and set the process of the product and services according to the countries economic condition.
Legal factor- Legal element of the external environment is emphasis of the legal legislation and framework. In this manner, government of the south Africa has developed some law and rights for the employees, customer and business which company needs to follow (Houdet,Trommetter and Webe 2012).
Technological factor- This factor includes the technical aspect, as in the country technology is continuously changed so corporation have to adopt the technology according to the countries' technology changed.
2.3 Explanation of how internal and external analysis are integrated
As per the above discussion it has been ascertained that Shoprite company is highly affected by the external and internal environment. These internal and external condition can largely affect the business activities and function. In the context of internal environment, company's internal strength, efficiency, weakness, threat, opportunities are included. These all are defined internal condition of the organization. On the other hand in the context of external business environment, macro environmental factor are included such a political, social, cultural, economical, environmental, and legal (Jaber and et.al., 2015). These internal and external environment are integrated with each other because these component are interconnected. For instance if company strength is related to it high quality product and services then in order to produce the product and services, company requires to consider the external elements like technological, political, social, cultural , etc. It can be aid that company's external environment directly affect the internal working process and efficiency, organization have to set its internal process, business activities and practices according to the external environment.
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3.1 Identification of a range of strategies that can contribute to their business competitive advantage
In order to gain the effective profitability and market share from the south Africa, company require adopting such effective strategies of business which assist in sustain the business for long time period. Competitive advantage is very essential aspect for the company which organization aids in sustaining its business in the market for long time a well as gain success. In the case of Shoprite, it can use the following strategies-
Market research- Market research is one of the best strateg\y by which company can easily analyses and assess the actual market condition and customer taste and preferences about the product and services. By help of market research company can able to know the strategies and efficiency of the competitors which are operated in business in the market. With assistance of this strategy, cited firm can able to meet the actual customer demand and requirement about the product and services.
Social media marketing- In the present era, social media is another major effective strategy which assist in developing competitive advantage of the organization. In this manner, company can use various social media channels such as Facebook, twitter, instagram etc. On these channels, company can directly communicate with customer and share the information about the product and services. It is the best strategy to know the customer feedback, respond and review of commodities.
3.2 An analysis of marketing communication strategies for the business
Following are major marketing communication strategies which can adopted by the cited venture for improve its marketing-
Social media marketing- With assistance of this strategy, corporation can get touch with customer and share the information about the product prices, features, quality etc. In this strategy, company can get the review and feedback about the product and services.
Public relation- Public relation is one of the best strategy to develop customer communication and strong relationship with them. In this manner, company should directly communicate with customer and identify the needs and wants related to product and services.
3.3 Analysis of marketing strategies and how they can apply by the organization
Following are some stages of the marketing strategies which can apply in the cited venture-
Define the target population- In the first stage, company can target the audience for marketing. It provides the effective demographics which aid in selecting the most appropriate marketing plan.
Test audience- In the second stage, company create a hypothetical procedure of purchasing to test the customers.
Consider marketing strategies- Once the company know the demographics that mean company know about the customer knowledge, attitude, behavior etc after that it can elect an appropriate strategy.
Business utilizes strategic marketing for the sake of creating plan in order to effectively reach and provide satisfaction to the customers while enhancing the productivity as well as profitability. From this report, it ha been analyzed that The strategy of marketing is comprised of creation of the product having unique benefits towards sales, use of channels which increase the profits without affecting the brand image as well as use of advertising, social media, public activities for the sake of supporting brand message of the business.
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