Strategic marketing management is the process of implementing your business’ mission through specific and strategic processes in order to maximize your current marketing plan.
Essentially, it is the act of making strategic decisions within a marketing plan in order to better that plan.
Over the past nearly 30 years, strategic management has evolved considerably compared to what it is today.
Initially, strategic management, marketing and otherwise was simply referred to as budgeting. Just as the name suggests, the methodology was mainly concerned with budgetary and control mechanisms. The methodology itself used the budget and its many variants as a way to manage marketing plans and marketing audits.
After budgeting, long-range planning emerged as the focus shifted towards forecasting. Using trends at the time, predictions were made concerning sales, costs, and profits.
During the 70s and 80s, strategic planning placed focus on overall direction and control over planning. There was still a bit of forecasting involved, but the main focus was on the business side of things.
Strategic marketing management
Now, we find ourselves in the era of strategic management. Strategic marketing management uses all of its previous variants and combines each of them into one. The idea is to use all of the versions of the methodologies in order to better manage the plan at hand.
Remember, strategic marketing management involves making strategic decisions within your current marketing plan in order to maximize on your plan. A good example of this would be Apple and how they market themselves.
Before the smartphone craze, there weren’t many options for phones on the market. In comes Apple with their strategic marketing management. They saw a need for a product on the market and made the necessary decisions and implemented a strategy. Now, almost everyone has an iPhone in their pocket.
In fact, in its early years, Apple made all of their decisions based on forecasting and strategy. For instance, the Apple logo is very simple in its design because they wanted it to be easy to remember. Hence the name “Apple” as well.
It was a combination of all of these decisions and the implementation of their strategic marketing management that made their world-wide fame possible.
Tesla and their evolution over just the past few years is another great example. Tesla came in when people thought that electric cars were nothing but boring money-savers, and changed the industry completely. Because of strategic marketing management, Tesla is viewed as the world’s first luxury electric vehicle manufacturer.
The idea behind strategic marketing management is to adapt to your market as things change around you. The goal remains the same, but the path that leads you towards your goal can change.
The benefits of implementing strategic marketing management are fairly recognizable in the business world. Here are a few of the advantages in implementing a strategic marketing strategy:
A better understanding of the market
The research involved in properly implementing strategic marketing management will inevitably end in a better understanding of your given market. Research regarding domestic and international markets, competition, and market trends will need to be conducted.
Helps identify the strategic direction
Strategic marketing management involves making better decisions that align your plan with the company’s goals.
Can have a big pay off
If implemented correctly, strategic marketing management can yield some impressive results for a business. The result could be a better handle on budget, and an overall increase in the longevity of a business.
All in all, there are many advantages to this style of management. By implementing strategic marketing management, you’re making strategic decisions to better your business and your understanding of the market as a whole.
As helpful as strategic marketing management can be for a business, there are some drawbacks. Here are some disadvantages you should consider before implementing strategic marketing management:
Budget vs cost
As we’ve stated a few times before, strategic marketing management often involves making quick and game-changing decisions. Marketing campaigns are expensive, advertising is expensive, simple analysis and research can end up costing money. At the end of the day, you could make a decision that can greatly affect the end cost of the campaign. If affected too much, the budget will be blown.
It’s very time consuming
Strategic marketing management can take quite a long time to research and plan. The process should be very precise, which means that the initial planning should be, too.
It may not pay off
Making these strategic decisions may not end up working out in the end. They are often risky, which means that you could end up with nothing to show for your efforts at the end of the period. As you may already know, marketing plans, strategic or not, can often take months to reach their end. That means you may end up wasting not only a lot of your own time, but everyone else on the marketing team may end up doing the same.
These are just some of the major issues that arise when practicing strategic marketing management. Just like any other methodology, marketing strategy, or business plan in general, there are things that can and will go wrong.
Now the impending question comes up: is strategic marketing management right for your team? The answer to that question is a simple one. If you and your team are willing to combat the negatives in pursuit of the positives, then yes, it could work.
But, like we explained above, there will be drawbacks no matter how you look at it. If you’re running a massive corporation with lots of money to spend in the budget, a wrong decision may not affect you so badly. However, for a small startup with just a few employees, a simple mistake could lead to a massive blow to the entire company.
The key is research. Precise decisions and calculated risks are all going to be based on market trends, competition, and the customer.