Marketing Strategy

Elements Of A Marketing Strategy

In a strategic role, marketing aims to transform corporate objectives and business strategy into a competitive market position. Essentially, the concern is to differentiate our actives/products by meeting customer needs more effectively than competitors. Marketing strategy can by characterised by:

• analysing the business environment and defining specific customer needs,
• matching actives/products to customers segments, and
• implementing programmes that achieve a competitive position, superior to competitors.

Therefore, marketing strategy addresses three elements – customers, competitors and internal corporate issues.

Firstly, we consider customers. How is the market defined, what segments exist and who should we target? Secondly, how can we best establish a competitive position? A precursor to this is a detailed understanding of our competitors within targeted market segments. Finally, we need to match internal corporate capabilities with customer need. The successful achievement of these factors should enable the organisation to develop, and maintain, a strong market position.

Essentially, a marketing strategy aims to deliver the following:

It goes without saying that the three key constituents of marketing strategy – customers, competitors and internal corporate factors – are dynamic and constantly changing.

Therefore, organisations must develop and deploy processes, procedures and techniques that ensure market strategy is:

• relative to the current/future business environment,
• sustainable,
• generating optimal benefits to both the organisation and customers, and
• correctly implemented.

This is the process of strategic marketing management.

Phases Of Market Strategy Design

As a process, strategic marketing has three distinct phases.

Strategic analysis: To move forward, we must first answer the question; where are we? This stage entails a detailed examination of the business environment, customers and an internal review of the organisation itself. Tools such as portfolio analysis and industry structure models help management to objectively assess the organisation’s current position. It is equally important to develop some views regarding future trends. This is achieved through forecasting and defining assumptions about the future market trends.

Formulating strategy: Having analysed our situation, we then determine a way forward. Formulation involves defining strategic intent – what are our overall goals and objectives? Managers need to formulate a marketing strategy that generates competitive advantage and positions the organisation’s products effectively. To be successful, this must be based on core competencies. During this stage, product development and innovation are strategic activities, offering the potential to enhance competitive position and further develop products and brands.

Additionally, formulation emphasises the need to form relationships with customers and other businesses. Increasingly, we see organisations recognising that they cannot do everything themselves and look to form joint ventures and partnerships. The formulation stage culminates with the development of a strategic marketing plan.

Implementation: Consideration needs to be given to implementing the strategy. Marketing managers will undertake programmes and action that deliver strategic objectives. Such actions will often focus on individual elements of the marketing mix. Additionally, a process of monitoring and control needs to be put in place. This ensures compliance and aids decision-making.

Click here to view a video that explains Coca Cola marketing strategy.