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Chapter Summaries - Chapter 1

‘Strategy’ is arguably an overused word. In marketing terms, its use should be restricted to important decisions that will have a major effect on the future of the organisation. Strategic marketing decisions are concerned primarily with ensuring the effectiveness of the marketing organisation in the competitive struggle. Effectiveness is about ‘doing the right things’, whereas efficiency is about ‘doing things right’. Corporate strategy is a broader concept than strategic marketing, incorporating, for example, issues to do with finance, human resources and manufacturing or service operations, as well as marketing matters. Forecasting and budgeting are logical components of the strategic market planning process, but should not be taken for the process itself.