The purpose of this lesson is to discuss the importance of organizational planning at both the strategic and the tactical levels and to show how pertinent each one is to organizational effectiveness and success.
Strategic and Tactical Marketing
My neighbor Karla is highly skilled at custom jewelry making. She is able to do very artistic bead stringing and is a good silver smith. She is also very knowledgeable about precious and semi precious gemstones. She wants to communicate the perception of high quality and the uniqueness of her jewelry. She also wants to set prices at premium to make a profit. How can Karla achieve this objective? She will need to engage in careful planning of strategic and tactical marketing strategies.
Strategic marketing involves offering and selling your products in a way that will lead to achieving an organization's goals. Tactical marketing outlines specific steps that need to be taken to implement the strategy. Let's take a closer look at each of these concepts and see how Karla can use them as a way of achieving her goals.
A Closer Look
Keep in mind that the foundation upon which good marketing is built is market research. Knowing an organization's customers and its competitors is key to making marketing efforts work.
With that in mind, most organizations have one or two overarching goals or objectives that they hope to achieve within a particular time period when it comes to marketing. Strategic marketing allows an organization to find the right steps to take in order to reach those goals. An example of strategic marketing could be maintaining current revenues while cutting advertising and promotion expenses, hence increasing profits.
Karla's goal is to create a quality image for her products, but other goals she may have include increasing revenues, increasing market share, or targeting a specific market segment. For Karla's jewelry business a strategic marketing plan could be to enter the jewelry market and gain 5% market share in the local fine jewelry segment.
The tactical marketing portion of the plan will allow the organization to implement the right steps or tactics to reach its goals. For the strategy example focusing on maintaining revenues, a tactical move could be increasing prices while simultaneously re-branding the product.
Karla might solve her problem by forming an alliance with an upscale fashion outlet, who would stock her jewelry as accessories to their clothing. Using an upscale retailer will assist her with the quality image she wishes to establish.
Link Marketing Strategy and Tactic
Marketing tactics are those methods that are used to achieve a strategy. Great marketing tactics will likely result in customer satisfaction and hopefully customer loyalty. The tactics can, therefore, be thought of as the route through which the strategies are implemented. Consider these three levels of marketing and how strategic and tactical marketing are related to the process:
- Goals determine strategy determines tactic
- Tactic accomplishes strategy accomplishes goals
In our example, Karla will plan for her strategic marketing by asking, 'How will I achieve this goal?' Her answer might be, 'By getting exposure for my product line' or, 'Marketing my products to the right people.' She then has to make decisions on the specific tactics she will use.
Strategic and tactical marketing are necessary steps towards achieving organizational objectives. Strategic marketing is a concept of how the goal will be achieved. Tactical marketing is the action that is taken to realize the concept derived in the strategy. Strategic and tactical marketing would likely be unsuccessful without knowledge of a company's consumers and competitors, which is gained through market research information.