Wednesday, October 30, 2019
The effects of Strategic marketing on Business performance Literature review
The effects of Strategic marketing on Business performance - Literature review Example In the present era, market has become highly competitive. In this competitive market, a strategy is needed to offer product or service which will do better than the competition. The marketing strategy must be executed by a proper methodology. To create a marketing strategy for business a company should think about the following factors. When the market is attractive and the company is holding a strong position in that particular industry, then it must invest the best resources for supporting the offering. But if the company is not in a good position then it must focus on strengthening the company first. When the market is not that attractive and the company is holding a strong position in any industry, then the company should offer effective sales and marketing effort for creating good profit. Furthermore, in either case where company is not too strong then it should promote those offerings which will prove most profitable for business. Literature Review According to the study conduc ted by Jaakkola (2006), there is a strong connection between market and financial performance. Sales volume has direct effect on profit. Individual coefficient differs from country to country. Four measuring sets, i.e., market and innovation orientation, inside out, and outside in marketing were used for assessing marketing performance in few companies. The Ã¢â¬Ëinside out capabilitiesÃ¢â¬â¢ have high influence on performance in most of the sample country he used except Hong Kong because the market structure and strength of competition are favourable with high market orientation. The connection among market orientation and market performance is extremely low in Finland. This indicates that market orientation in Finland is bad and high market orientation of the business context does not pay off. Where Finnish companies are good in making profit from Ã¢â¬Ëinside out capabilitiesÃ¢â¬â¢, Austrian companies are good in converting Ã¢â¬Ëoutside in capabilitiesÃ¢â¬â¢ into good b usiness performance. German companies are good into innovation orientation and generate profit with it. Finnish companies have a more positive outlook than others and they act in market oriented way. They continuously take customers and competition into account and hence the financial performance suffers from it. The effectiveness of strategic marketing process in Finnish companies is extremely low. This refers to strong focus on technological product improvement as emphasis should be put more on irrelevant development of processes and capabilities of company. It shows that how Ã¢â¬Ëinside out capabilitiesÃ¢â¬â¢ is the individual construct and have large influence on competitive advantage development and sustaining business performance. The innovation process positively relates to market performance and competitive advantages, but its total effect on financial performance is negative. The Ã¢â¬Ëoutside in capabilitiesÃ¢â¬â¢ and marketing orientation include slight harmful out come on business performance of a company (Jaakkola, 2006). According to the researches done by Garland and Brooksbank (2008), the marketing strategy is quite prevalent in company in case of more comprehensive situation. The higher performing firms place more importance to an inclusive situation analysis than the lower performing companies. There are five kinds of situation study namely buyer, internal, marketplace, business environment and competitor.