Strategic marketing has evolved by trial and error. In the 1980s, companies developed unique strategic-marketing procedures, processes, systems, and models. Experience shows, however, that most companies’ marketing strategies are burdened with undue complexity. They are bogged down in principles that produce similar responses to competition. Changes are needed to put speed and freshness into marketing strategy.

Failings in Strategic Marketing The following are the common problems associated with marketing strategy formulation and implementation: 1. Too much emphasis on “where” to compete and not enough on “how” to compete. Experience shows that companies have devoted much more attention to identifying markets in which to compete than to the means to compete in these markets. Information on where to compete is easy to obtain but seldom brings about sustainable competitive advantage. Further, “where’’ information is usually easy for competitors to copy. “How’’ information, on the other hand, is tough to get and tough to copy. It concerns the fundamental workings of the business and the company. For example, McDonald’s motto, QSC & V, is a how-to-compete strategy - it translates into quality food products; fast, friendly service; restaurant cleanliness; and a menu that provides value. It is much more difficult to copy the “how’’ of McDonald’s strategy than the “where.’’20 In the next era of marketing strategy, companies will need to focus on how to compete in entirely new ways. In this endeavor, creativity will play a crucial role. For example, a large insurance company substantially improved its business by making improvements in underwriting, claim processing, and customer service, a “how’’ strategy that could not be replicated by competitors forthwith.

2. Too little focus on uniqueness and adaptability in strategy. Most marketing strategies lack uniqueness. For example, specialty stores increasingly look alike because they use the same layout and stock the same merchandise. In the 1980s, when market information was scarce, companies pursued new and different approaches. But today’s easy access to information often leads companies to follow identical strategies to the detriment of all. Ideas for uniqueness and adaptability may flow from unknown sources. Companies should, therefore, be sensitive and explore all possibilities. The point may be illustrated with reference to Arm and Hammer’s advertising campaign that encouraged people to place baking soda in their refrigerators to reduce odors. The idea was suggested in a letter from a consumer. The introduction of that unique application for the product in the early 1970s caused sales of Arm and Hammer baking soda to double within two years. 3. Inadequate emphasis on “when’’ to compete. Because of the heavy emphasis on where and how to compete, many marketing strategies give inadequate attention to “when’’ to compete. Any move in the marketplace should be adequately timed. The optimum time is one that minimizes or eliminates competition and creates the desired impact on the market; in other words, the optimum time makes it easier for the firm to achieve its objectives. Timing also has strategy implementation significance. It serves as a guide for different managers in the firm to schedule their activities to meet the timing requirement. Decisions on timing should be guided by the following: a. Market knowledge. If you have adequate information, it is desirable to market readily; otherwise you must wait until additional information has been gathered.

b. Competition. A firm may decide on an early entry to beat minor competition. If you face major competition, you may delay entry if necessary; for example, to seek additional information.

c. Company readiness. For a variety of reasons, the company may not be ready to compete. These reasons could be lack of financial resources, labor problems, inability to meet existing commitments, and others.

Addressing the Problems of Strategic Marketing Having the ability to do all the right things, however, is no guarantee that planned objectives will be realized. Any number of pitfalls may render the best strategies inappropriate. To counter the pitfalls, the following concerns should be addressed:

    1.  Develop attainable goals and objectives.
    2.  Involve key operating personnel.
    3.  Avoid becoming so engrossed in current problems that strategic marketing is
   neglected and thus becomes  discredited in the eyes of others.
    4.  Don’t keep marketing strategy separate from the rest of the management process.
    5.  Avoid formality in marketing strategy formulation that restrains flexibility  and
   inhibits creativity.
    6.  Avoid creating a climate that is resistant to strategic marketing.
    7.  Don’t assume that marketing strategy development can be delegated to a planner.
    8.  Don’t overturn the strategy formulation mechanism with intuitive, conflicting
   decisions.