To focus the organization, business managers allocate resources and guide operational decisions through the strategic plan. According to the American Marketing Association (AMA) Dictionary of Marketing Terms (2005), three elements describe a strategic plan:
(1) A business definition that specifies the area in which the business will compete
(2) A strategic thrust that describes whether a competitive advantage is to be gained by focusing the scope or by exploiting an asymmetry in the position of the business
(3) Supporting functional strategies that are activities designed for consistency and comparability with other activities and the strategic thrust.
Marketing strategy is a component of the overall business plan that details the manner in which a product line will accomplish its goals by providing the framework for decisions and direction regarding different variables within the market, such as identification of the target market, positioning, marketing mix, and expenditures. The complexity of the current economy cannot emphasize the importance of an intelligent marketing plan.
Strategy is defined as the plan the business will pursue within its chosen environment and guides the allocation of resources and efforts. The plan integrates the functional departments and operating units and focuses them in the same direction. Additionally, three elements describe the strategy of an organization (AMA):
(1) "A business definition that specifies the area in which the business will compete
(2) "A strategic thrust that describes whether a competitive advantage is to be gained by focusing the scope or by exploiting an asymmetry in the position of the business
(3) "Supporting functional strategies that are activities designed for consistency and comparability with other activities and the strategic thrust"
The strategic plan of an organization allows the functional areas of a business to create, communicate, and deliver value to customers in a way that manages customer relationships to benefit the firm and its stakeholders. Business planners to make operational decisions and guide tactical manager to accomplish the objectives of the company use strategy. A strategic plan begins with a mission statement that describes the overall purpose of the firm. Planners then consider internal factors, such as resources and capabilities, and external factors, such as culture and government regulations, before establishing long-term and short-term objectives.
Overall, the strategy integrates functional departments and operating units, and points them in the same direction. Mangers need to ensure the marketing strategy is a component of the overall business plan that details the manner in which a product line will accomplish its goals. Business leaders need to make decisions and provide direction, and the complexity of the current economy requires analysis and long-term strategic planning to enable a company to maneuver the many obstacles.
