Introduction
1.1 Background Of The Study
Marketing efforts and know-how are instrumental in commercializing ideas and inventions successfully. Therefore, it could be fatal for companies to ignore the importance of marketing (CF. E.G. Yli-Kovero, 2006; Salminen, 2006). Kotler (1999) emphasizes the position of marketing to even argue that, in the future, marketing has the main responsibility for achieving profitable revenue growth for the company. Today cost-efficiency does not provide long-term competitive advantage for companies whereas marketing, when well conducted, does. Especially in the field of strategic marketing, benefits are still largely waiting for realization.
Marketing has traditionally been viewed and treated more as an operational rather than strategic function in companies. It has focused on decisions related to analyzing and selecting target markets, product and brand development, promotion, and channels of distribution (Hunt and Morgan, 2001). This perhaps somewhat biased standpoint presents marketing as a task of creating, promoting and delivering goods and services to consumers and businesses (Kotler, 2003). It is generally accepted that acquiring a new customer may turn out to be considerably more expensive than building customer loyalty among firm’s current customers (e.g. Kotler, 2003). This strongly speaks for the need for higher levels of customer orientation among companies. Similarly to reward systems that base on short-term performance, short-term marketing focus may start working against longer-term market orientation, business performance and strategic intentions of a company.
From strategic point of view, as Morgan, Clark and Gooner (2002) argue, marketing budgets should be seen as capital expenditure in building revenue generating marketing assets rather than overhead expenditure; marketing resources ultimately drive long-term marketing performance. Despite general acceptance of value creation of marketing activities, marketing practitioners have found it difficult to measure and communicate to other functional executives and top management the value created by investments in marketing (Srivastava, Shervani and Fahey, 1998). To bring light to the prevalent situation, confirmatory statistical analysis basing on hypotheses from previous literatures is a justified method to explore strategic marketing and its effectiveness.
At this early phase of the project, it is necessary to conduct an international empirical study that clarifies the links between strategic marketing practices and business performance,
1.2 Statement Of Problems
The main problem and discovered gap of strategic marketing involving marketing-related issues that should be concentrated on in order to maximize companies’ long-term financial performance. The primary research problem for this study can thus be presented as follows:
- What kind of strategic marketing are most positively and effectively relates to companies’ financial performance in different business environments?
- What is the relationship between marketing resources and business orientations, and financial performance of a firm?
- How is marketing effectiveness assessed today and potentially in the future?
Further on, this problem statement will be formulated as a research question, with several underlying sub-questions.
1.3 Purpose Of The Study
This research work primarily aim at examining the impacts of strategic marketing and how it affects organisation’s performance. Other objectives of the study include;
- Examine strategic marketing concepts and their relationships with performance measures
- Provide an integrated review of the origins, insights and status of strategic management
- Discuss marketing performance assessment (MPA) systems and development areas related to them
- Describe the structure of performance management systems.
1.4 Research Questions
Research questions are meant to generate possible answers to different aspects of the research problem and they should be clearly stated such that they act as guides in identification, collection and analysis of relevant data. In order to achieve the purpose of this research study, the study will attempt to provide answers to the following research questions.
- What kind of strategic marketing are most positively and effectively relates to companies’ financial performance in different business environments?
- What is the relationship between marketing resources and business orientations, and financial performance of a firm?
- How is marketing effectiveness assessed today and potentially in the future?
1.5 Statement Of Hypotheses
To provide answer to the research questions arising from this study, the following hypotheses are postulated.
Hypothesis One
- Ho: There is no significant relationship between strategic marketing and companies’ financial performance
- H1: There is significant relationship between strategic marketing and companies’ financial performance
Hypothesis Two
- Ho: Market orientation does not positively relates to market performance
- H1: Market orientation positively relates to market performance
Hypothesis Three
- Ho: There is no Relationship between marketing resources and business orientations, and financial performance of a firm
- H1: There is Relationship between marketing resources and business orientations, and financial performance of a firm
1.6 Significance Of The Study
Marketing efforts and know-how are instrumental in commercializing ideas and inventions successfully. Therefore, it could be fatal for companies to ignore the importance of marketing (Yli-Kovero, 2006; Salminen, 2006). Kotler (1999) emphasizes the position of marketing to even argue that, in the future, marketing has the main responsibility for achieving profitable revenue growth for the company. Today cost-efficiency does not provide long-term competitive advantage for companies whereas marketing, when well conducted, does. Especially in the field of strategic marketing, benefits are still largely waiting for realization. Thus, this study will help in making companies more responsive to this change environment.
1.7 Scope And Limitations Of The Study
The scope of the study is somewhat evident from the research problem, research questions and objectives of the study. The study is confined only to Doyin Group of Companies, Orile Iganmu Branch, Lagos. In addition, developing conceptual framework of strategic marketing is at the core of the research. Both academics and firm company audiences are being considered in this study since, in addition to taking part to discourse of strategic marketing, it also offers implications and even a concrete marketing performance assessment tool for firms.
In the course of conducting this research work, it is expected that the following will constitute impediment to the effective conduct of this study.
- Availability of relevant literatures and textbooks
- Time constrains
- Financial constraints
- Inaccessible and inadequate database
- Inadequate information given by the case study firm.
1.8 Operational Definition Of Terms
Marketing:
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
Strategy:
It is the approach a business takes to securing and developing profitable customer relationships
Strategic Marketing:
The process of building and executing a marketing campaign according to set criteria established as a result of detailed research, evaluation and planning in the areas of target market segmentation, positioning, product development, pricing, distribution and promotion.
Performance:
The act of performing; the carrying into execution or action; execution; achievement; accomplishment; representation by action
Benchmarking:
A measurement of the quality of an organization’s policies, products, programs, strategies etc. and their comparison with standard measurements or similar measurements of it’s peers.
Intangibility:
Means that services cannot be seen, felt or tasted. They cannot be touched, in comparison with products. Intangibility is the critical goods-services distinction from which all other difference emerge (Bateson, 1979).
Heterogeneity:
Concerns the potential for high variability in the performance of services (Zeithaml, 1985).
Perishability:
Means services cannot be produced and stored for later use. They will be produced and consumed at the same moment.
