Marketing strategy From Wikipedia, the free encyclopedia This article may need to be rewritten entirely to comply with Wikipedia's quality standards. You can help. help. The discussion page may contain suggestions. (May 2009)
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]
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1 Developing a Marketing Strategy
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2 Types of strategies
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3 Strategic models
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4 Real-life marketing
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5 See also
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6 References
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7 Further reading
[edit]Developing
a Marketing Strategy
This article needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (June 2008)
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 This article needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (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 of Focus-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 This article needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (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-marketingstrategy.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) Categories: Marketing Log in / create account
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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. Related Articles • Marketing Power of Buzz • Product Development Manager - Marketing Career Profile • M-N-O-P • Top 10 Ways to Choose a Great Network Marketing Opportunity • Where to Find Clients - Writing Copy
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
