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Marketing managers are concerned with different time frames the short term, the medium term and the long term are commonly used phrases By the short term is usually meant using existing assets as ef ciently as possible and attempting to cut costs By the medium term is meant the possibility of replacing labour and other scarce resources with equipment Medium-term management decisions require the availability of capital and a willingness to take signi cant nancial risks In the long term, in contrast, the organization can develop new products and processes which introduces the possibility of new markets or the restructuring of old ones Success in the long term demands imagination and a considerable amount of innovation Organizations which respond only to pressures of the short term simply delude themselves into believing that consumer surveys, techniques and product portfolio procedures automatically confer a marketing orientation on their adopters (Anderson 1982, p 23) The role of marketing is to manage the organization s customer relationships by: Identifying the optional long-term position that will ensure customer satisfaction and support Developing strategies designed to capture the organization s preferred positions Negotiating with senior managers in the organization and other functional areas to implement chosen strategies (Anderson 1982, p 24) In regard to the rst activity the optimal position re ects the organization s perception of what its customers needs and wants are likely to be over the organization s strategic time horizon Optimal long-term positions, according to Anderson (1982), are likely to be determined by fundamental changes in social, demographic, political and economic factors In this regard strategic positioning will be guided by research in these areas and by research aimed at discovering the latent preferences of customers that re ect their value systems Behind the second activity is an attempt to gain a competitive advantage over organizations pursuing similar positioning strategies This is likely to be incremental Speci c strategies focus on shorter time periods and are
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[74] Strategic Marketing
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designed to move the organization toward a particular position without severely disrupting the organization itself or the market Activity at this stage combines assessment of current performances of consumers with demographic and socioeconomic research to produce viable intermediate strategies The third activity listed suggests that marketing adopts an active and assertive role in promoting its strategic view It can do so by demonstrating to other functional areas and to senior management the questionable survival value of a short-term consumer orientation Short-term marketing objectives are usually speci ed in annual budgets and are included with other objectives such as those related to pro ts, sales volume and market share Short-term objectives are measurable and provide forecasts and targets for different activities within the organization The most important short-term objectives in regard to marketing tend to refer to pro ts, sales volumes or market shares Short-term operational marketing objectives assist the organization with its management control Setting strategic marketing objectives means devoting time to determining long-term levels for the various marketing variables at the organization s disposal It implies thinking through the pricing, distribution and promotional strategies for the various stages of the product life cycle In this instance marketing variables are not conceived of merely as tactical variables to be used to gain short-term advantage in the market The myopia of ignoring the longer-term marketing objectives may be seen in the case of a organization installing a new plant and failing to accurately forecast the demand for the product Failure to adequately consider long-term strategic marketing issues in uences all aspects of the business; nancial performance, eg a combination of a known pattern of high xed costs with an undesirable pattern of product prices, products and even variability
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