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A marketing strategyUK govt businesslink marketing strategy guide . Marketing strategy Australian administration small business guide . is a process that can allow an organization to concentrate its (always limited) resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.


AS A KEY PART OF THE GENERAL CORPORATE STRATEGY


A marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will engage customers, prospects and competitors in the market arena for success. It is partially derived from broader Corporate Strategies , corporate missions, and corporate goals. They should flow from the firm's mission statement. They are also influenced by a range of Microenvironmental Factors .


SECTORIAL TACTICS AND ACTIONS


A marketing strategy also serves as the foundation of a Marketing Plan . A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service.

A strategy consists of well thought out series of tactics. While it is possible to write a tactical marketing plan without a sound, well-considered strategy, it is not recommended. Without a sound marketing strategy, a marketing plan has no foundation. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach Marketing objectives Marketing basics Marketing strategy based on market needs, targets and goals .. It is important that these objectives have measurable results.

A good marketing strategy should integrate an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole (aka an Integrated Marketing Strategy ). Similarly, the various strands of the strategy (eg. Internet Marketing ) and / or Channel (marketing) s (eg. Press , TV , Internet ), Media and, Public_relations should be orchestrated. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable.

Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See Strategy Dynamics .


TYPES OF STRATEGIES


Every marketing strategy is unique, but if we abstract from the individualizing details, each can be reduced into a generic marketing strategy. There are a number of ways of categorizing these 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 three types of market dominance strategies:

  • --- Leader

  • --- Challenger

  • --- Follower

  • psycological

  • 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.

  • --- Cost leadership

  • --- Product differentiation

  • --- Market segmentation

  • 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 schemes uses the categories:

  • Prospector

  • Analyzer

  • Defender

  • Reactor