What is the Importance and Need of Strategic Marketing Planning?

Importance and Need of Strategic Marketing Planning

1) Provides direction and creates commitment – it provides the road map for smooth functioning of organisations activities. The decisions are made systematically focussing on organisations objectives and market objectives (via proper Internal and external analysis). It directs the energies of the entire organisation towards well specified goals.

2) Effective in constantly changing environment – Most of the organisations work in an unpredictable environment and need to handle these challenges strategically. A good strategy creates a sustainable advantage. The organisations which follow strategic planning continually update and reposition their existing products, and introduce new ones to stay ahead of competition.

3) Enables risk taking and growth seeking culture – the strategic planning helps an organisation to prepare for risks. A thorough understanding of the market demands, environment, competition and the organisations capabilities helps taking risks to its advantage. Organisations follow contingency plans or plan B if the opted strategy doesn’t pays off. Because of strategic planning adapting to a new strategy is effective and efficient (economical).

4) Better utilisation of resources – effective use of resources makes the most of the limited resources available with the organisation. The resources in the form of employees as well as raw materials for creating the products are strategically utilised. Designating specific tasks to different departments and effective flow of raw materials when required results in cost reduction for the organisation. The movement of the products to the buyers by choosing the best distribution channels and storage facility forms part of strategic planning.

5) Prepares the organisation for the future – as the organisation constantly receives updates from the market about the trends, it continuously makes changes to its strategies. The organisation influences the market by creating needs, wants and demands.

6) Adaptive, flexible approach – the approach of an organisation under strategic planning is highly analytical. It continuously analyses its resources, systems, and consequences of opting a different strategy under different scenarios. The strategies are directly related to the environment, and adjustments are done accordingly.

7) Provides effective communication within the organisation among different departments – due to clearly defined tasks and reporting structure by forming SBU’s the communication process is always open to discussing challenges within the organisation, feedback from customers, intermediaries, etc.