Marketing strategy

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Marketing

Key concepts

Product • Pricing

Distribution • Service • Retail

Brand management

Account-based marketing

Marketing ethics

Marketing effectiveness

Market research

Market segmentation

Marketing strategy

Marketing management

Market dominance

Promotional content

Advertising • Branding • Underwriting

Direct marketing • Personal Sales

Product placement • Publicity

Sales promotion • Sex in advertising

Loyalty marketing • Premiums • Prizes

Promotional media

Printing • Publication

Broadcasting • Out-of-home

Internet marketing • Point of sale

Promotional merchandise

Digital marketing • In-game

In-store demonstration
 Word-of-mouth marketing

Brand Ambassador • Drip Marketing

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Marketing strategy is a process that can allow an organization to concentrate its limited resources on the
greatest opportunities to increase sales and achieve a sustainable competitive advantage.[1]

Contents
[hide]

• 1 Developing a Marketing

Strategy

• 2 Types of strategies

• 3 Strategic models

• 4 Real-life marketing

• 5 See also

• 6 References

• 7 Further reading

[edit]Developing a Marketing Strategy

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Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs
and reach marketing objectives.[2] Plans and objectives are generally tested for measurable results. Commonly,
marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be
accomplished in the current year. Time horizons covered by themarketing plan vary by company, by industry,
and by nation, however, time horizons are becoming shorter as the speed of change in the environment
increases.[3] Marketing strategies are dynamic and interactive. They are partially planned and partially
unplanned. See strategy dynamics.

Marketing strategy involves careful scanning of the internal and external environments which are summarized
in a SWOT analysis.[4] Internal environmental factors include the marketing mix, plus performance analysis and
strategic constraints.[5] External environmental factors include customer analysis, competitor analysis, target
market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal
environment likely to impact success.[3][6] A key component of marketing strategy is often to keep marketing in
line with a company's overarchingmission statement.[7]
Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business
alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail
implementation.[3] A final step in developing a marketing strategy is to create a plan to monitor progress and a
set of contingencies if problems arise in the implementation of the plan.

[edit]Types of strategies
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(June 2008)

Marketing strategies may differ depending on the unique situation of the individual business. However there are
a number of ways of categorizing some generic strategies. A brief description of the most common categorizing
schemes is presented below:

 Strategies based on market dominance - In this scheme, firms are classified

based on their market share or dominance of an industry. Typically there are
four types of market dominance strategies:

 Leader

 Challenger

 Follower

 Nicher

 Porter generic strategies - strategy on the dimensions of strategic scope and

strategic strength. Strategic scope refers to the market penetration while
strategic strength refers to the firm’s sustainable competitive advantage. The
generic strategy framework (porter 1984) comprises two alternatives each with
two alternative scopes. These are Differentiation and low-cost leadership each
with a dimension ofFocus-broad or narrow.

 Product differentiation (broad)

 Cost leadership (broad)

 Market segmentation (narrow)

 Innovation strategies - This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is
on the cutting edge of technology and business innovation. There are three
types:

 Pioneers

 Close followers

 Late followers
  Growth strategies - In this scheme we ask the question, “How should the firm
grow?”. There are a number of different ways of answering that question, but
the most common gives four answers:

 Horizontal integration

 Vertical integration

 Diversification

 Intensification

A more detailed scheme uses the categories[8]:

 Prospector
 Analyzer
 Defender
 Reactor
 Marketing warfare strategies - This scheme draws parallels between
marketing strategies and military strategies.

[edit]Strategic models
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(June 2008)

Marketing participants often employ strategic models and tools to analyze marketing decisions. When
beginning a strategic analysis, the3Cs can be employed to get a broad understanding of the strategic
environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of
their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy.

There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the
theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing
departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant
insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth
Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or
operational business challenges.The Marketing team can then prioritize these Growth Opportunities and begin
to develop strategies to exploit the opportunities that could include new or adapted products, services as well
as changes to the 7Ps.

[edit]Real-life marketing
Real-life marketing primarily revolves around the application of a great deal of common-sense; dealing with a
limited number of factors, in an environment of imperfect information and limited resources complicated by
uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably
partial and uneven.

Thus, for example, many new products will emerge from irrational processes and the rational development
process may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the
packaging, will be the output of the creative minds employed; which management will then screen, often by
'gut-reaction', to ensure that it is reasonable.

For most of their time, marketing managers use intuition and experience to analyze and handle the complex,
and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the
pants', or 'gut-reaction'; where the overall strategy, coupled with the knowledge of the customer which has
been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This,
almost instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it from the
refined, aesthetically pleasing, form favored by the theorists.

[edit]See also

 Business model
 Customer engagement
 Market segmentation
 Pricing strategies

[edit]References

1. ^ Baker, Michael The Strategic Marketing Plan Audit 2008. ISBN

1902433998. p.3

2. ^ Marketing basics Marketing strategy based on market needs, targets

and goals.

3. ^ a b c Aaker, David Strategic Market Management 2008. ISBN

9780470056233

4. ^ Hausman Marketing Letter Definition of Marketing Series

5. ^ Aaker, David Strategic Market Management 2008. ISBN

9780470056233.
 6. ^ http://www.marketingthatworks.tv/marketing-explained-in-short-easy-

words/definition-of-marketing-series-marketing-

strategy.htmlMarketingThatWorks.TV Marketing Strategy.

7. ^ Baker, Michael The Strategic Marketing Plan Audit 2008. ISBN

1902433998. p. 27

8. ^ Miles, Raymond (2003). Organizational Strategy, Structure, and

Process. Stanford: Stanford University Press. ISBN 0804748403.

[edit]Further reading

 Laermer, Richard; Simmons, Mark, Punk Marketing, New York : Harper

Collins, 2007 ISBN 978-0-06-115110-1 (Review of the book by Marilyn Scrizzi,
in Journal of Consumer Marketing 24(7), 2007)

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•
When it comes to marketing a service it can at times be more challenging than marketing a product.
You are not selling something that is tangible; you are in fact selling the invisible.

When selling a service the customer experience is extremely important to closing the deal and
marketing effectively. The experience has an impact on the perceived value of the service.

Services also tend to have the reputation built on one person. The people involved in selling and
performing the service have the ability to make or break a company's reputation. It's harder to do
damage control for service companies, which means you must always be on your game and your
reputation must remained untarnished and pristine.

Consumers often find it more difficult to compare service vendors. They can not touch or feel the
product, rather they have to trust that the service will be performed as promised. How can you help
your consumers compare you to other vendors?

A service can not be returned. If a service is purchased, but does not live up to the consumers
expectation they can not return it for a new product. This costs the consumer time and as individuals
our we often few our time as more valuable than money.

How do you market a service company?

Keep in mind that in traditional marketing we have the 4 Ps. When it comes to service marketing we
add three more.

Traditional marketing components include:

• Product
• Price
• Place
• Promotion

When it comes to marketing services you add three more components to consider. They include:

• People
All people involved either directly or indirectly of the consumption of a service is important. People
can add a significant value to a service offering. People sell the service and either make or break
the marketing of the services you offer. It's time to take a look at the "face" of your service and
evaluate.
• Physical Evidence
The way that service is delivered needs to be communicated and followed through. You are creating
an intangible experience so communication and documentation is the only physical evidence you
have to share with your consumer. Make sure you are doing enough of it.
 • Process
Procedure and flow of activities of how services are consumed is an essential element to your
strategy in marketing a services. Everything must run smoothly to keep the trust of your consumer.

By developing your 4 Ps of marketing and enhancing them with the three mentioned above you can
successfully market your service even though you are selling the invisible.

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ynopsis
What are the trends affecting the marketing of services? How is the current tendency towards customer
orientation, globalization, deregulation and technological change determining the ways in which leading
service firms conduct their marketing activities? Why is cross-sector fertilization particularly useful for
services, and what type of strategic response is most likely to shape business success of service firms in
the future? These are some of the questions addressed in this collective volume by academics and
practitioners working with and within the service sector. Drawing on their own business experience as well
as upon theoretical developments and concepts on marketing, strategic analysis, economics and
organization theory, the authors present a fresh approach to questions of marketing strategies for
services in global markets. They argue that in their marketing strategies, outstanding service firms
increasingly emphasize results and performance, service technology, network structure and culture,
lobbying, and global thinking in approaching markets and co-operation arrangements. Given the strength
of the adjustment shock affecting service producers and its certain continuation, this book - full of insights
and unconventional thinking - is an important contribution to the literature of services management. It will
be useful reading for all who wish to understand why old patterns in the marketing of services are
breaking down, as well as what lies around the corner.

Contents