CHAPTER TWO
LITERATURE REVIEW AND CONCEPTUAL
FRAMEWORK
2.1. Conceptual Framework
Strategic
marketing is a method in which a firm attempts to reach its target audience. Strategic
Marketing starts with market research, in which competitors’ products are
assessed and it continues through into advertising, promotion, distribution and
where applicable, customer servicing, packaging, sales and distribution. Strategy
marketing must focus on delivering greater value to customers and the firm at a
lower cost. However, quantifying the return on investment from marketing
expenditure on activities such as advertising, promotion and distribution is
one of the most complex issues facing decision makers.
Marketing
performance is central to success in today’s fast moving competitive markets, and
measuring marketing’s performance is critical to managing it affectively Ayuba
(2009). In order to measure strategic marketing effectiveness, a business has
to break down its marketing function into constituent parts, along with a
mechanism through which to analyze the interaction between those parts. By
doing this, decision makers will finally be in a position to relate marketing
expenses to shareholders value and to understand how to tie marketing
initiatives back into value. Decision
makers will be able to understand the internal motives that propel the
marketing value of the business.
The
manipulation of the following marketing variables namely; price variation and
price promotion, research, advertising, product differentiation, quality,
packaging and place will yield increase returns for firms. The trading in
Nigeria as is the case globally has changed dramatically in recent years Ayuba (2009)
whether in towns, cities or more rural areas, there has been significant
economic and social change which has altered the ability, perception and
behavior of consumer with regard to shopping and retailing. The need and
desires of consumer have changed in different ways, although there are constant
needs, in the general sense, such as access to food and clothing.
Cont
and Brink (1999), indicate that the process of acculturation has resulted in
the development of subcultures in townships, characterized by unique
belief systems, dress codes and language
putters in the black communities - they appear to be distinctive social classes
which manifested in several ways. The social structure is clearly reflected in
the areas where black people choose to live in.
Black consumers are also conscious of their choice of products
reflecting the “right” social class in which they wish to be categorized by
their friends and peers.
2.2.
Theoretical Framework
The
following are the various theories that link strategic marketing to performance
of an organization. The subsequent
analysis of empirical data is to show the practical importance of these
theories and also possibly build on them.
2.2.1 Strategic Marketing Concept
Strategic
marketing is a process that can allow an organization to concentrate its
limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage. Strategic marketing includes all basic and
long-term activities in the field of marketing that deal with the analysis of
the strategic initial situation of a company and the formulation, evaluation
and selection of market-oriented strategies and therefore contribute to the
goals of the company and its marketing objectives Ifezue (1990). Strategic marketing
serves as the fundamental under pinning of marketing plans, designed to fill
market needs and reach marketing objectives.
Plans
and objectives are generally tested for measurable result. Commonly, marketing
strategies are developed as multi-year plans, with a tactical plan detailing
specific actions to be accomplished in the current year time horizons covered
by the marketing plan vary by company, by industry, and by nation. However,
time horizons are becoming shorter as the speed of change in the environment
increases. Strategic marketing are dynamic and interactive. They are partially
planned and partially unplanned Bush (1985).
Strategic
Marketing involves careful scanning of the internal and external environments. Internal environmental factors include the
“marketing mix” plus performance analysis and strategic constraints. External
environmental factors include customer analysis, competitor analysis, target
market analysis, as well as evaluation of any dements of the technological,
economic, cultural or political/legal environment likely to impact success. A
key component of strategic marketing is often to keep marketing in line with a
company’s overarching mission statement. Once an environment scan is completed,
a strategic plan can be constructed to identify business alternatives,
established challenging goals, determine the optimal marketing mix to attain
these goal and detail implementation M.C. Garthy (1984).
A
final step in developing a strategic marketing is to create a plan to monitor
progress and a set of contingencies if problems arise in the implementation of
the plan.
2.2.2 The Marketing Mix/Four Piece Variables
The
marketing mix could also be called four pieces or 4Ps. It is the division of
apportioning, after, the combination design and integration of the element of
marketing into programmed for the achievement of marketing objective Greenly
(1982). The marketing mix could also be referred to as the organization of
variables. The marketing mix/four piece includes the following:-
·
Product
·
Price
·
Promotion
·
Place or Distribution
Product:
This simply represents a bundle of satisfaction or utilities to the purchaser
or buyer, it implies all the satisfaction that one derives from the purchase of
a product and service. The most important strategically question in any
manufacturing firms, is what make decision of its product items, product line,
and product mix.
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