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MARKETING STRATEGY

Marketing strategy[1][2]is a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a sustainable competitiveadvantage[3] . A marketing strategy should be centered around the key concept that customer

satisfactionis the main goal.

Key part of the general corporate strategy

arketing strategy is a method of focusing an organization!s energies and resources on a

course of action which can lead to increased sales and dominance of a targeted market niche.

A marketing strategy combines product development" promotion" distribution" pricing"

relationship management and other elements# identifies the firm!s marketing goals" and

e$plains how they will be achieved" ideally within a stated timeframe. arketing strategydetermines the choice of target market segments" positioning" marketing mi$"and allocation

of resources. %t is most effective when it is an integral component of overall firm strategy"

defining how the organization will successfully engage customers" prospects" and competitors

in the market arena. &orporate strategies" corporate missions" and corporate goals. As the

customer constitutes the source of a company!s revenue" marketing strategy is closely linked

with sales. A key component of marketing strategy is often to keep marketing in line with a

company!s overarching mission statement['] .

(asic theory)

1. *arget Audience2. +roposition,-ey lement

3. %mplementation

Tactics and actions

A marketing strategy can serve as the foundation of a marketing plan. A marketing plan

contains a set of specific actions re/uired to successfully implement a marketing strategy. 0or

e$ample) se a low cost product to attract consumers. nce our organization" via our low

cost product" has established a relationship with consumers" our organization will sell

additional" higher4margin products and services that enhance the consumer!s interaction withthe low4cost product or service.

A strategy consists of a well thought out series of tactics to make a marketing plan more

effective. arketing strategies serve as the fundamental underpinning of marketing plans

designed to fill market needs and reach marketingob5ectives[6]. +lans and ob5ectives are

generally tested for measurable results.

A marketing strategy often integrates an organization!s marketing goals" policies" and action

se/uences 7tactics8 into a cohesive whole. 9imilarly" the various strands of the strategy "

which might include advertising" channel marketing" internet marketing"promotionandpublic

relationscan be orchestrated. any companies cascade a strategy throughout an organization"

http://en.wikipedia.org/wiki/Marketing_strategy#cite_note-0%23cite_note-0http://en.wikipedia.org/wiki/Marketing_strategy#cite_note-1%23cite_note-1http://en.wikipedia.org/wiki/Marketing_strategy#cite_note-1%23cite_note-1http://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-2%23cite_note-2http://en.wikipedia.org/wiki/Marketing_strategy#cite_note-2%23cite_note-2http://en.wikipedia.org/wiki/Customer_satisfactionhttp://en.wikipedia.org/wiki/Customer_satisfactionhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Strategic_managementhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-3%23cite_note-3http://en.wikipedia.org/wiki/Marketing_strategy#cite_note-3%23cite_note-3http://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-4%23cite_note-4http://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Channel_(marketing)http://en.wikipedia.org/wiki/Internet_marketinghttp://en.wikipedia.org/wiki/Internet_marketinghttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-0%23cite_note-0http://en.wikipedia.org/wiki/Marketing_strategy#cite_note-1%23cite_note-1http://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-2%23cite_note-2http://en.wikipedia.org/wiki/Customer_satisfactionhttp://en.wikipedia.org/wiki/Customer_satisfactionhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Strategic_managementhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-3%23cite_note-3http://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-4%23cite_note-4http://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Channel_(marketing)http://en.wikipedia.org/wiki/Internet_marketinghttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relations

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by creating strategy tactics that then become strategy goals for the ne$t level or group. ach

one group is e$pected to take that strategy goal and develop a set of tactics to achieve that

goal. *his is why it is important to make each strategy goal measurable.

arketing strategies are dynamic and interactive. *hey are partially planned and partially

unplanned. 9ee strategy dynamics.

Types of strategies

arketing strategies may differ depending on the uni/ue situation of the individual business.

:owever there are a number of ways of categorizing some generic strategies. A brief

description of the most common categorizing schemes is presented below)

9trategies based on market dominance4 %n this scheme" firms are classified based on

their market share or dominance of an industry. *ypically there are four types of

market dominance strategies)o ;eader

o &hallenger

o 0ollower

o ?'8 comprises two alternatives each with two alternative scopes. *hese are

Differentiationand low-cost leadershipeach with a dimension ofFocus4broad or

narrow.

o +roduct differentiationo arket segmentation

%nnovation strategies 4 *his deals with the firm!s rate of the new product development

andbusiness model innovation. %t asks whether the company is on the cutting edge of

technology and business innovation. *here are three types)

o +ioneers

o &lose followers

o ;ate followers

@rowth strategies 4 %n this scheme we ask the /uestion" :ow should the firm growBC.

*here are a number of different ways of answering that /uestion" but the most

common gives four answers)

o :orizontal integration

o Dertical integration

o Eiversification

o %ntensification

A more detailed scheme uses the categories [F])

+rospector

Analyzer

Eefender

Geactor

2

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arketing warfare strategies 4 *his scheme draws parallels between marketing

strategies and military strategies.

Strategic models

arketing participants often employ strategic models and tools to analyze marketing

decisions. Hhen beginning a strategic analysis" the3&scan be employed to get a broad

understanding of the strategic environment. An Ansoff atri$is also often used to convey an

organization!s strategic positioning of theirmarketing mi$. *he'+scan then be utilized to

form a marketing plan to pursue a defined strategy.

arketing in +ractice 4 *he -id

*he &onsumer4&entric (usiness

*here are a many companies especially those in the &onsumer +ackage @oods 7&+@8 marketthat adopt the theory of running their business centered around &onsumer" 9hopper I Getailer

needs. *heir arketing departments spend /uality time looking for @rowth pportunities in

their categories by identifying relevant insights 7both mindsets and behaviors8 on their target

&onsumers" 9hoppers and retail partners. *hese @rowth pportunities emerge from changes

in market trends" segment dynamics changing and also internal brand or operational business

challenges.*he arketing team can then prioritize these @rowth pportunities and begin to

develop strategies to e$ploit the opportunities that could include new or adapted products"

services as well as changes to the J+s.

Geal4life marketing primarily revolves around the application of a great deal of common4

sense# dealing with a limited number of factors" in an environment of imperfect informationand limited resources complicated by uncertainty and tight timescales. se of classical

marketing techni/ues" in these circumstances" is inevitably partial and uneven.

*hus" for e$ample" many new products will emerge from irrational processes and the rational

development process may be used 7if at all8 to screen out the worst non4runners. *he design of

the advertising" and the packaging" will be the output of the creative minds employed# which

management will then screen" often by !gut4reaction!" to ensure that it is reasonable.

0or most of their time" marketing managers use intuition and e$perience to analyze and

handle the comple$" and uni/ue" situations being faced# without easy reference to theory. *his

will often be !flying by the seat of the pants!" or !gut4reaction!# where the overall strategy"coupled with the knowledge of the customer which has been absorbed almost by a process of

osmosis" will determine the /uality of the marketing employed. *his" almost instinctive

management" is what is sometimes called !coarse marketing!# to distinguish it from the refined"

aesthetically pleasing" form favored by the theorists.

References

1. ^ - govt businesslink marketing strategy guide.

2. ^ arketbut strategyAustralian administration small business guide.

3. ^ (aker" ichael The Strategic Marketing Plan Audit2KK?. %9(< 1>K2'33>>?.p.3'. ^ (aker" ichael The Strategic Marketing Plan Audit2KK?. %9(< 1>K2'33>>?.p. 2J

3

http://en.wikipedia.org/wiki/Marketing_warfare_strategieshttp://en.wikipedia.org/wiki/3C'shttp://en.wikipedia.org/wiki/3C'shttp://en.wikipedia.org/wiki/3C'shttp://en.wikipedia.org/wiki/Ansoff_Matrixhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/4P'shttp://en.wikipedia.org/wiki/4P'shttp://en.wikipedia.org/wiki/Marketing_strategy#cite_ref-0%23cite_ref-0http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073900352http://en.wikipedia.org/wiki/Marketing_strategy#cite_ref-1%23cite_ref-1http://www.smallbiz.nsw.gov.au/smallbusiness/Managing+a+Business/Marketing+and+Sales/http://www.smallbiz.nsw.gov.au/smallbusiness/Managing+a+Business/Marketing+and+Sales/http://www.smallbiz.nsw.gov.au/smallbusiness/Managing+a+Business/Marketing+and+Sales/http://en.wikipedia.org/wiki/Marketing_strategy#cite_ref-2%23cite_ref-2http://en.wikipedia.org/wiki/Special:BookSources/1902433998http://en.wikipedia.org/wiki/Special:BookSources/1902433998http://en.wikipedia.org/wiki/Marketing_strategy#cite_ref-3%23cite_ref-3http://en.wikipedia.org/wiki/Special:BookSources/1902433998http://en.wikipedia.org/wiki/Special:BookSources/1902433998http://en.wikipedia.org/wiki/Marketing_warfare_strategieshttp://en.wikipedia.org/wiki/3C'shttp://en.wikipedia.org/wiki/Ansoff_Matrixhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/4P'shttp://en.wikipedia.org/wiki/Marketing_strategy#cite_ref-0%23cite_ref-0http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073900352http://en.wikipedia.org/wiki/Marketing_strategy#cite_ref-1%23cite_ref-1http://www.smallbiz.nsw.gov.au/smallbusiness/Managing+a+Business/Marketing+and+Sales/http://en.wikipedia.org/wiki/Marketing_strategy#cite_ref-2%23cite_ref-2http://en.wikipedia.org/wiki/Special:BookSources/1902433998http://en.wikipedia.org/wiki/Marketing_strategy#cite_ref-3%23cite_ref-3http://en.wikipedia.org/wiki/Special:BookSources/1902433998

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6. ^ arketing basicsarketing strategy based on market needs" targets and goals.

F. ^ 12anage 72KK>8.

[http),,www.12manage.com,methodsLmilesLsnowLfourLstrategicLtypes.html0our 9trategic

*ypes 7Gaymond iles and &harles 9now8]

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http://en.wikipedia.org/wiki/Marketing_strategy#cite_ref-4%23cite_ref-4http://perso.orange.fr/pgreenfinch/mkting/mkting3.htmhttp://perso.orange.fr/pgreenfinch/mkting/mkting3.htmhttp://en.wikipedia.org/wiki/Marketing_strategy#cite_ref-5%23cite_ref-5http://www.12manage.com/methods_miles_snow_four_strategic_types.htmlhttp://en.wikipedia.org/wiki/Marketing_strategy#cite_ref-4%23cite_ref-4http://perso.orange.fr/pgreenfinch/mkting/mkting3.htmhttp://en.wikipedia.org/wiki/Marketing_strategy#cite_ref-5%23cite_ref-5http://www.12manage.com/methods_miles_snow_four_strategic_types.html