There are 4 major components of marketing that provide the tools used to satisfy the market’s needs: These are Product, Price, Place and Promotion. The interplay of these 4 components is known as the Marketing Mix.
Products- These are goods that customers buy to satisfy their demand. How a product is sent to the market influences its package. The Mix for each product must be evaluated carefully. Market Research is essential in determining the appropriate marketing mix.
Price- Price is the amount a company charges customers for a product. The greater part of a company’s marketing effort should be aimed at making some discretion on pricing decision which can increase the perceived value benefits its market offers the buyers.
Place- It focuses on where products are sold, what distribution methods are used, where products are inventoried while waiting to be sold, and how products are transported to the customer.
Promotion- The techniques a company uses to generate customer sales, brand awareness, make up promotion. Promotion has three major goals: informing customers about the products, influencing a customer’s decision and reminding the customer of product features and availability.
The perfect marketing mix does not guarantee success; other elements come into play, enabling the company to devise a complete marketing strategy. Without demand, the product will fail. A company that needs to succeed must understand both the target market and the competitive environment. It must focus efforts to match products with customers.
Strategic management process can be referred to as the planning and decision making process which involve strategic planning, implementation and evaluation. It consists of eight interrelated and integrated steps which may vary according to business. These steps are:
Establishment of Organization’s Mission, Vision and Goals: Strategic vision is a roadmap to an Organization’ future. It provides a perspective of a business’ direction and means of getting there. Mission Statement is the declaration of any business’ purpose of existence. Organizational Goals are targets that an organization wants to achieve. Goals must be realistic, challenging, achievable, quantifiable and time bound.
Analysis Of The External Environment: A thorough evaluation of the external environment begins with the examination of the task environment. And identification of the influence of the Organization’stakeholders (buyers, competitors, suppliers, creditors, Union employees).
Identifying Opportunities and Threats: SWOT(strength, weakness, opportunity, threat) analysis is the most popular and appropriate strategic tool used in analyzing business environment.
Analysis Of The Business’ Resources: This deals with the evaluation of the skills, knowledge and abilities of the organization’s employees, resources, degrees of success in product innovation, financial worth of the business and means of providing quality products to meet consumers need.
Identifying Strengths and Weaknesses: Strengths are the activities that have the potential of improving the organization’s competitive situation. Weaknesses are the activities that an organization is not good at, making it potentially vulnerable to strategic moves by competitors.
Formulation of Strategy: Strategists get required information needed to formulate corporate, business, functional and operating strategies from analyzed internal and external environment factors. An effectively formulated strategy blends, integrates, co-ordinates and utilizes the company’ internal resources and makes appropriate use of external information.
Strategy Implementation: If a well formulated strategy is not properly implemented, it becomes nothing.
Measurement and Evaluation of Results: This final process deals with the assessment and evaluation of strategic control, in order to know if the outcomes meet expectations.
Strategic management process helps an organization to set both short-term and long-term goals, involving every employee in the organization to work together as a team.
Have you ever heard the adage which says that those who fail to plan, plan to fail? This is applicable to all areas of life even in business.
If you really want to succeed at something, then you need to map out a plan and ways to execute the plan in order to achieve your goal.
Planning involves the conscious determination of courses of action required to achieve predetermined objectives.
Here are 7 problems associated with planning in Nigeria:
Excessive reliance on experience: Although experience is the best teacher but relying on it only could be dangerous because the world is changing. Things are getting more different from what happened years back. And they are becoming more challenging too.
The Fear of Change: Some people hate to plan because they are afraid of change. They want to keep doing things in a stereotype manner.
Nonchalant attitude: Many business organizations especially in developing countries lack commitments to planning activities.
Poor Database Management: This is another challenge to the planning process because planning involves a lot of paperwork about the past, present and future which can only be got from database.
Unqualified personnel: If there is no qualified personnel to do proper planning and implementing plans, then there is a problem.
Unstable Business Environment: The instability of the business environment discourages planning especially strategic planning.
Overdependence on imported goods: Since many organizations sell or distribute products of another Business venture in a foreign country, there is a little or no serious plan to sell.