It generally establishes the mission, vision, values and long-term goals of a company and formulates strategies to accomplish those goals.

It generally provides a framework to plan different functional areas such as production, finances, human resources, research and development and marketing. 

It generally puts forward goals and strategies for a company and its marketing efforts. 

It generally comprises of a specific period which is usually yearly in nature and prepared through taking a strategic marketing plan as a baseline.

It generally requires managers in corporations to gather by sharing a common goal and act together.