Consulting

Definition of Strategic Marketing

Strategic marketing can be defined as the fundamental logic by which an organization tends to achieve its marketing objectives. The word "strategy" itself can be defined as the basic characteristics of the match an organization achieves with its environment.

Strategic marketing is thus an organization's logical efforts to best match what end users (and purchasers) desire and what programs and services it offers to those end users. This approach to customers, through what will be called strategic marketing.

The Exchange Relationship

The exchange relationship is the central concept that underlies marketing. The exchange is the offering of something (a service or product) to someone for something in return.

• There have to be at least two parties.
• Each party has to have something of value that the other party wants or needs.
• Each party can communicate an offer and is in a position to deliver on the offer.
• Each party is free to accept or reject the exchange offer.
• Each party believes it is appropriate and desirable to deal with the other.

Market positioning and differentiation

Quite simply, positioning is how one sets up the service offering in the mind of the prospective customer or buyer. It is about perception, not the service itself. Positioning has become so critical to strategic marketing that it is considered the fifth P of the marketing mix. Positioning is used to achieve differentiation. Differentiation is simply how one makes his or her service offering stand out from others in a crowded marketplace. It is easy to understand, but challenging to accomplish.