what is the marketing strategy?
A marketing strategy refers to a business’s overall game plan for reaching prospective consumers and turning them into customers of their products or services.
A marketing strategy contains the company’s value proposition, key brand messaging, data on track customer demographics, and other high-level elements. a radical marketing strategy covers “the four Ps” of marketing: product, price, place, and promotion.
The marketing strategy may be a long-term, forward-looking approach and an overall game plan of any organization or any business with the elemental goal of achieving a sustainable competitive advantage by understanding the requirements and needs of consumers.
Scholars like Philip Kotler still debate the precise meaning of selling strategy. Consequently, the literature offers many various definitions. On close examination, however, these definitions appear to center around the notion that strategy refers to a broad statement of what’s to be achieved.
Strategic planning involves an analysis of the company’s strategic initial situation before the formulation, evaluation, and selection of a market-oriented competitive position that contributes to the company’s goals and marketing objectives.
Strategic marketing, as a definite field of study, emerged within the 1970s and 80s and built on strategic management that preceded it. Marketing strategy highlights the role of selling as a link between the organization and its customers.
Understanding Marketing Strategies
A clear marketing strategy should revolve around the company’s value proposition, which communicates to consumers what the corporate stands for, how it operates, and why it deserves its business.
This provides marketing teams with a template that ought to inform their initiatives across all of the company’s products and services. for instance,
Walmart (WMT: NYSE) is widely referred to as a reduction retailer with “everyday low prices,” whose business operations and marketing efforts are rooted therein idea.
Marketing Strategies vs. Marketing Plans
The marketing strategy informs the marketing plan, which may be a document that details the precise sorts of marketing activities a corporation conducts and contains timetables for rolling out various marketing initiatives.
Marketing strategies should ideally have longer lifespans than individual marketing plans because they contain value propositions and other key elements of a company’s brand,
which generally hold consistency over the end of the day. In other words, marketing strategies cover big-picture messaging, while marketing plans delineate the logistical details of specific campaigns.
Academics still debate the precise meaning of selling strategy, then multiple definitions exist. the subsequent quotes from industry experts help crystallize the nuances of (modern) marketing strategy:
“The sole purpose of selling is to sell more to more people, more often and at higher prices.” (Sergio Zyman, marketing executive and former Coca-Cola and JC Penney marketer)
“Marketing is not any longer about the things that you simply make, but about the stories, you tell.” (Seth Godin, former corporate executive, and entrepreneur)
“The aim of selling is to understand and understand the customer so well the merchandise or service fits him and sells itself.” (Peter Drucker,
credited because the founding father of modern management)
“Marketing’s job isn’t done.
It’s about motion. We must still innovate a day .” (former vice chair and chief marketing officer, GE)
“Take two ideas and put them together to form one new idea. After all, what’s a Snuggie but the mutation of a blanket and a robe?” (Jim Kukral, speaker and author of Attention!)
The Creation of selling Strategy
The ultimate goal of a marketing strategy is to realize and communicate a sustainable competitive advantage over rival companies by understanding the requirements and needs of its consumers.
Whether it is a print ad design, mass customization, or a social media campaign, a marketing asset is often judged supported by how effectively it communicates a company’s core value proposition.
Market research can help chart the efficacy of a given campaign and may help identify untapped audiences to realize bottom-line goals and increase sales.
Marketing management versus marketing strategy
The distinction between “strategic” and “managerial” marketing is employed to differentiate “two phases having different goals and supported different conceptual tools.
Strategic marketing concerns the selection of policies aiming at improving the competitive position of the firm, taking account of challenges and opportunities proposed by the competitive environment.
On the opposite hand, managerial marketing is concentrated on the implementation of specific targets.”
Marketing strategy is about “lofty visions translated into less lofty and practical goals [while marketing management] is where we start to urge our hands dirty and make plans for things to happen.”
Marketing strategy is usually called higher-order planning because it sets out the broad direction and provides guidance and structure for the marketing program.
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A brief history of strategic marketing
Marketing scholars have suggested that strategic marketing arose within the late 1970s and its origins are often understood in terms of a definite evolutionary path:
Budgeting Control (also referred to as scientific management)
Further information: Scientific management
Date: From the late 19th century
Key Thinkers: Frederick Winslow Taylor, Frank, and Lillian Gilbreth, Henry L. Gantt, Harrington Emerson
Emphasis on quantification and scientific modeling, reduce work to smallest possible units and assign work to specialists, exercise control through rigid managerial hierarchies, standardize inputs to scale back variation, defects, and control costs, use quantitative forecasting methods to predict any changes.
Long Range Planning:
Further information: Long-range planning
Date: From the 1950s
Key Thinkers: Herbert A. Simon
Key Ideas: Managerial focus was to anticipate growth and manage operations in an increasingly complex business world.
Strategic Planning (also referred to as corporate planning)
Further information: Strategic management
Date: From the 1960s.
Organizations must find the proper fit within an industry structure; advantage derives from industry concentration and market power; firms should strive to realize a monopoly or quasi-monopoly; successful firms should be ready to erect barriers to entry. More read marketing strategy
Strategic Marketing Management refers to a business’s overall game plan for reaching prospective consumers and turning them into customers of the products or services the business provides. Date: from the late 1970s
Each business is exclusive which there is often no formula for achieving competitive advantage; firms should adopt a versatile planning and review process that
aims to deal with strategic surprises and rapidly developing threats; management’s focus is on the way to deliver superior customer value; highlights the key role of selling because of the link between customers and therefore the organization.
Resource-Based View (RBV) (also referred to as resource-advantage theory)
Further information: Resource-based view
Date: From the mid-1990s
Key Thinkers: Jay B. Barney, George S. Day, Gary Hamel, Shelby D. Hunt, G.
The firm’s resources are financial, legal, human, organizational, informational, and relational; resources are heterogeneous and imperfectly mobile, management’s key task is to know and organize resources for sustainable competitive advantage.
Marketing strategy involves mapping out the company’s direction for the forthcoming planning period, whether that be three, five, or ten years.
It involves undertaking a 360° review of the firm and its operating environment with a view to identifying new business opportunities that the firm could potentially leverage for competitive advantage.
Strategic planning can also reveal market threats that the firm may have to think about for long-term sustainability. Strategic planning makes no assumptions about the firm continuing to supply equivalent products to equivalent customers in the longer term.
Instead, it’s concerned with identifying the business opportunities that are likely to achieve success and evaluates the firm’s capacity to leverage such opportunities.
It seeks to spot the strategic gap; that’s the difference between where a firm is currently situated (the strategic reality or inadvertent strategy) and where it should be situated for sustainable, long-term growth (the strategic intent or deliberate strategy).
Strategic planning seeks to deal with three deceptively simple questions, specifically:
* Where are we now? (Situation analysis)
* What business should we be in? (Vision and mission)
* How should we get there? (Strategies, plans, goals, and objectives)
A fourth question could also be added to the list, namely ‘How can we know once we got there?’ thanks to the increasing need for accountability,
many marketing organizations use a spread of selling metrics to trace strategic performance, allowing corrective action to be taken as needed. On the surface,
strategic planning seeks to deal with three simple questions, however, the research and analysis involved in strategic planning is extremely sophisticated and requires an excellent deal of skill and judgment.
Strategic analysis: tools and techniques
Strategic analysis is meant to deal with the primary strategic question, “Where are we now?”
Traditional marketing research is a smaller amount useful for strategic marketing because the analyst isn’t seeking insights about customer attitudes and preferences.
Instead, strategic analysts are seeking insights about the firm’s operating environment with a view to identifying possible future scenarios, opportunities, and threats.
Strategic planning focuses on the 3C’s, namely: Customer, Corporation, and Competitors.
an in-depth analysis of every factor is vital to the success of strategy formulation. The ‘competitors’ element refers to an analysis of the strengths of the business relative to shut rivals and consideration of competitive threats that may hit the business’ ability to maneuver in certain directions.
The ‘customer’ element refers to an analysis of any possible changes in customer preferences that potentially produce new business opportunities.
The ‘corporation’ element refers to an in-depth analysis of the company’s internal capabilities and its readiness to leverage market-based opportunities or its vulnerability to external threats.
The BCG Matrix is simply one among the various analytical techniques employed by strategic analysts as a way of evaluating the performance of the firm’s current stable of brands
Perceptual mapping assists analysts in guage the competitive performance of brands
A product evolutionary cycle helps to see future directions for development
Porter’s five forces
Mintzberg suggests that the highest planners spend most of their time engaged in analysis and are concerned with industry or competitive analyses also as internal studies, including the utilization of computer models to research trends within the organization.
Strategic planners use a spread of research tools and analytical techniques, counting on the environment complexity and therefore the firm’s goals.
Fletcher and Bensoussan, as an example, have identified some 200 qualitative and quantitative analytical techniques regularly employed by strategic analysts. while a recent publication suggests that 72 techniques are essential.
No optimal techniques are often identified as useful across all situations or problems. Determining which technique to use in any given situation rests with the skill of the analyst. More info-marketing strategy
the selection of tool depends on a spread of things including data availability; the character of the marketing problem; the target or purpose, the analyst’s skill level also as other constraints like time or motivation.