A Critical Examination of the Effect of Strategic Marketing on Organizational Performance
1.1 Background of the Study
Organizational performance is one of the most significant issues in management study since it is the most essential criteria in assessing organizations, their activities, and their environments. Its significance is mirrored in its widespread application. Companies are seeing internationalization of their activities and events as a strategy to stay competitive in the market as a result of the current globalization market. Marketing strategy has become an important tool for any firm in the globe to stay competitive and grow stronger in today’s industry. Hornby (2001), referenced in Aremu & Lawal (2012), defines marketing as “the practice of promoting, advertising, selling, and delivering an organization’s products to consumers in the most effective way feasible.” Furthermore, according to Kotler (2003), the American Marketing Association defines marketing as the process of planning and executing the conception, pricing, promotion, selling, and distribution of ideas, goods, and services in order to create exchanges that meet individual and organizational goals. This definition covers the five Ps of marketing (Product, Price, Promotion, Place, and People), which are essential for every marketing strategy. Marketing management, according to Kotler (2003), is the art and science of identifying target markets and acquiring, retaining, and expanding customers / consumers by generating, delivering, and communicating greater customer value. Furthermore, according to Aquino (2017) and University of Leicester (2002), strategic marketing management is the implementation of an organization’s marketing purpose through targeted procedures to get the most out of an existing marketing plan and to identify target customers / consumers.
Marketing strategy, on the other hand, may be defined as a company’s approach to set itself apart from its rivals by leveraging its relative strength to better meet client demands in a particular context (Jain, 2004). Marketing strategies are a series of actions aimed at gaining a competitive edge and achieving better-than-average results by making informed and fact-based decisions among competing options (Shane, 2000). Strategic marketing management would also aid the organization’s identification of further marketing possibilities, allowing ideas to become reality. McGuire (2020) defines a marketing plan as a report that explains an organization’s marketing strategy for the future year, quarter, or month. A typical business marketing plan would also include: an overview of the marketing and advertising goals, a description of the current marketing position, a timeline for when tasks within the strategy will be completed, key performance indicators (KPIs) to be tracked, and a description of the target market and customer needs, according to McGuire (2020) and Kotler (2003).
Excellent organizations are renowned for their capacity to implement the marketing strategy selection option made as well as for their well-conceived marketing specifying where, when, and how they will compete (Chris, 2006). Appropriate and well-executed marketing strategies are needed to effectively lead the deployment of available resources in areas where the company’s marketing strategy capabilities are needed to achieve desired goals and objectives. As a result, a good marketing strategy must explain a business where they want to be in the long run, which is why marketing strategy is frequently referred to as a continuous process. The marketing reasoning by which a company hopes to attain its marketing objectives is referred to as marketing strategy.
1.2 Statement of Problem
In today’s business world, a company’s success or failure is determined by how well it can please its consumers, and this act sets a significant marketing duty and obligation on any company that wants to succeed in satisfying its customers and clients. Owomoyela, Oyeniyi, and Ola are three sisters (2013). This task, according to the author, entails determining the specific demands of their customers/clients and selecting how best to manage their products and services in order to meet the desires of both potential buyers and sellers (represented by clients/customers). However, any business organization’s major priority is to maximize profit, and in order to achieve this goal, every sensible business organization’s marketing manager should create and implement strategies that maximize revenue per unit of capital employed in the firm.
According to Aremu and Lawal (2012), knowing customer requirements and desires is critical to good marketing, just as competition has a big influence on how successful a company’s business may be. It is critical to remember that customer happiness is determined not only by delivering a good product or service that meets the consumers’ desires and requirements, but also by how effectively the product or service is introduced to them. Some enterprises and corporations are able to achieve this in one manner or another, although some are more successful in the marketplace than others. The issue then becomes, “Why is this so?” With reports of varying degrees of success and failure by manufacturing firms in various parts of Nigeria, it is critical to attempt a detailed examination of the various marketing strategies used by these firms in carrying out their operations in order to determine the role of strategic marketing in their organizational performance.
1.3 Objectives of the study
The broad objective of the study is to examine the strategic marketing on organizational performance. Other specific objectives of the study are:
- To examine the different marketing strategies employed by organizations to enhance their performance.
- To ascertain the degree at which product strategy improves the level of profit of Nigeria Bottling Company, Abia State.
- To determine the extent at which promotional strategy influences the sales volume of Nigeria Bottling Company in Abia State.
1.4 Research Hypotheses
HO1: There is no significant impact of product strategy on the level of profit of Nigeria Bottling Company.
HO2: There is no significant impact of promotional strategy on the sales volume of Nigeria Bottling Company.
1.5 Significance of the Study
Findings from the study will be relevant to organization and brands as it will enlighten them on the need why they should as a matter of urgency embark on more aggressive product strategies so as to drive its products and servicesto the target market and to further improve the firm’s level of profit.Empirically, the study will contribute to the general body of knowledge and serve as a reference material to both scholars and student who wishes to conduct further studies in related field.
1.6 Scope of the Study
The scope of the study borders on the effects of marketing strategies on the organizational performance of Nigeria. It examines the different marketing strategies employed by organizations to enhance their performance. It will ascertain the degree at which product strategy improves the level of profit of Nigeria Bottling Company, Abia State and determine the extent at which promotional strategy influences the sales volume of Nigeria Bottling Company Aba, in Abia State.
1.7 Limitation of the study
Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. The significant constraint was the scanty literature on the subject owing to the nature of the discourse thus the researcher incurred more financial expenses and much time was required in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. Additionally, the researcher will simultaneously engage in this study with other academic work. More so, the choice of the sample size was limited as few respondent of Nigeria Bottling Company Aba were selected to answer the research instrument hence cannot be generalize to other corporate organizations. However, despite the constraint encountered during the research, all factors were downplayed in other to give the best and make the research successful.
1.8 Definition of Operational terms
Marketing: Marketing is the process of intentionally stimulating demand for and purchases of goods and services.
Marketing Strategy: A marketing strategy refers to a business’s overall game plan for reaching prospective consumers and turning them into customers of their products or services.
Organizational performance: Organizational performance comprises the actual output or results of an organization as measured against its intended outputs.
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