Each organization needs to develop its own marketing plan based on a number of factors. Although there is no such thing as a one-size-fits-all marketing strategy, there are a number of factors that should impact the development of a unique strategy for an organization or product line and the development of a concomitant strategic marketing plan see Figure 1. Once goals and objectives have been set, most businesses develop a competitive strategy to help them meet these goals and to increase competitive advantage.
The three basic approaches for developing a competitive strategy are to focus on:. Although there are generic approaches to developing marketing strategies, in order to be successful, a business's strategy needs to revolve around the nature of competition in the marketplace, stage of the market or industry life cycle, impact of market drivers, assets and skills that the organization possesses or can readily acquire, opening and closing of strategic windows, as well as other factors regarding the nature of the product or service being marketed.
For example, if two companies are competing in the marketplace to sell virtually identical items, they will more than likely need different competitive strategies.
One of the companies may have a longer track record for the excellence of its products or customer service while the other company may offer the product at a substantially lower price. Each marketing strategy, therefore, would be Factors to Consider when Developing a Marketing Strategy Each organization needs to develop its own marketing plan based on a number of factors.
First, one needs to consider the assets and skills that the organization already possesses or that it can readily acquire. For example, if an organization has a significant engineering department, it would be feasible for it to work on new projects that require engineering skills. However, if these personnel are already involved in other work and are not free to work on a new engineering project and the organization cannot afford to hire additional engineers, starting a new hardware line would be inadvisable at best.
In addition, one needs to consider the market drivers when developing a marketing strategy. These are the various political, economic, sociocultural, and technological forces that may influence the wants and needs of the consumer base. For example, a technological force that has influenced the way that many people do business in recent years is information technology.
Advances in this area have led to the need for businesses to be able to handle increasing volumes of information and data and the widespread use of information technology in many industries.
Burberry customers which are usually high profile will hesitate to go back to the store and the Primark customer which are usually price-sensitive assumes that the price has gone up which they cannot afford. Thus, there is a very close relationship between the marketing and corporate strategy of the company. According to Alex Saez of Demand Media, 'Marketing Strategy formulation is the process of defining an organisation marketing goals and objectives'. The formulators will create a guide through this.
In this process they examines the market and use the information received in determining the approaches that should be taken in reaching the clients and encourage them to use the product or service.
In the process of formulation of marketing strategy, the first step that should be considered is the determination of what a company or person want to achieve in terms of marketing. Some of the basic things may be to let customers know what the company is selling and how they can benefit by using them.
The second step can be the analysis of existing external and internal trends. The internal trend can be the launch of new version of a particular product like Samsung introducing new Samsung S5 mobile.
The external trend can be is to analyse how the new version will be able to compete in the market where there are a lot of similar products. It is like to analyse how Samsung new version of mobile will be able to compete with new brand of iPhone and Sony Ericsson mobiles. The third step in the process is to assign a value to the outcome of the strategy which is to calculate how much revenue or profit the marketing strategy will be able to generate over a period of time.
If the value is not cost effective, the product may not be suitable for the company to produce. Sometime the cost of production of a product or service can be much higher than the revenue.
At that time, other alternatives must be chosen. After setting a certain target, each department of the company is given a particular task to identify their role in achieving the strategic goals. This will help company to know what will be the position of the company after the implementation of the strategy in terms of size and revenue. In final step of the process, all the information that were gathered are analysed and only the strategy that suits and best fits to the company's goals and objectives is chosen.
In the strategic pyramid of a company, corporate strategy level always comes at the apex of the pyramid. At this level, most of the major decisions of the company are taken.
Ansoff matrix will help the management level in determining the marketing strategy that the company should adopt. It can be better understood by the following figure. If the company wants to increase the share in the current market of its existing product, it can take a strategy to reduce the price of the product so that more people buy it.
Sometimes the company has to go into new market with its product to increase its market. Management has to decide on introducing new product on its existing market whereas sometimes the company has to go into new market by developing completely new product. All the major decisions are taken at corporate level. Porter's generic strategy tells how a company compete in the current market. Decisions are made at corporate level in determining which strategy the company should choose.
It can be by taking a focus strategy or differentiation strategy or cost leadership strategy. In focus strategy, the management focus particularly on niche market. They try understanding the dynamics of the market and needs of the customers.
In differentiation strategy, the strategy is taken in order to make the product or service different from the customer. They try to introduce attractive product to the customers. Similarly, in cost leadership strategy, strategies are made in order to reduce the cost of the product and selling at lower price than that of competitors. These type of strategies and decisions are made at corporate level.
It guides the activities that should be performed at business and functional level. After the decisions are made at corporate level, it comes to the business level where unlike the corporate level, they focus on particular business.
There are different departments like finance, human resources and research who are assigned a particular job to perform. Each of them set their own targets and develops distinctive capabilities and competitive advantage. They try to identify the product or market opportunities. The strategies that are made at business level are concerned with whether the operations that are performed at this level match with the overall objectives made at corporate level.
Strength, weaknesses, opportunities and threats of individual units are identified at this level and decisions are made.
They guide the functional level in performing their duty. Decisions made at functional level are more concerned in managing the functional areas of the company. In fact, functional level is assigned the duty to convert the decision made at corporate level and business level into deeds. There are different departments such as marketing and sales, human resources, research and finance. Each function contributes towards achieving the targets.
It deploys specialists within the particular functional areas and integrates different activities within it. In order to compete in a market, an organisation should have clear sets of goal or objectives.
Only clear sets of goals give a proper direction to the company. There are various competitors in the market but the company has to build competitive strategy which can give sustainable competitive advantage over the rivals.
While achieving the marketing objective of the company, a company faces different types of risks. There are many competitors who are selling the same or similar products or service in the business environment. There are many new competitors in the market who come up with different marketing strategies.
Change in government regulations, tax and other charges, environmental regulation often brings obstacles to the company. The risk should be tried to be minimized or avoided.
Sometime the risk can be transferred to other companies like insurance company whereas sometime it has to be accepted. A company can introduce itself in the market by being a market leader. In that case, it has to minimize the price of the product.
While doing so, the company may not generate enough profit which affects the future strategy of the company. In order to reduce the cost of the product, the production cost should be minimized. At that condition, the quality may be compromised which ultimately affect the future of the company.
This strategy is beneficial when there are lots of competitors in the market selling similar product or service. Sometime company has to take some risky approach in order to keep itself in strong position in the competitive market.
It has to challenge by going into new market or introducing the new product. Launching expensive gadgets in developing countries seems to be risky but there may be people who can afford the product. In those conditions, company can benefit by challenging the market. There are conditions when company has to simply follow competitors. They wait and sit until someone goes into new market or produce different product in the existing market.
Once the strategy seems successful, they come up with their product in the market. They don't want to take risk. Many hospitality business runs on this basis.
Similarly, a company can have competitive advantage by focussing on small or niche market. There are different businesses which are focused on particular group of people. Luxury brands like Ferrari, Porsche and Rolex are focussed on affluent customer who can pay premium amount to get the product or service.
Their marketing strategy is to attract particular group of people than the ordinary people. To sum of the principles of strategic marketing, strategically developed marketing strategies are the building block of overall corporate strategy.
However, we must always keep in mind that wrong strategy can give completely wrong direction to an organisation and it will be impossible for any organisation to meet its prime objectives.
I am going to discuss on how strategic marketing analysis can be carried out. I have prepared slides which I am going to discuss in this presentation. At the beginning, on the first slide, I am going to make an evaluation on internal environment of the company which is considered as a vital for making any strategy for a company. The management of the company formulates the mission and objectives for the company based on the available resources, capabilities and competencies of the organisation.
While doing the internal analysis, the management can identify how its strength can assist in achieving its goals and how its weaknesses may hampers the plans. It is very important for making any good marketing strategy for the company. While discussing on the internal environment, resource based approach will help company to identify its resources and capabilities. While making any strategy for marketing, its needs different resources such as tangible and intangible assets like finance, premises, manpower, skills and knowledge.
These resources will assist the company to react in the dynamic condition. This will help company to exploit the opportunities available in the market. If the company doesn't have enough funds to invest in new project or doesn't have skilled manpower to identify the opportunities available in the market, then the company faces problems of growth and expansion. Furthermore ,marketing identifies unfulfilled needs and desires.
It defines, measures and quantifies the size of the identified market and the profit potential. In addition, it pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services. To analyse your questions set up an appropriate research methodology. The suggested method to adopt for this study is Qualitative, comprehending the situation and studying the industry in whole. The suggested research model embraces 5 phases i.
A proper end to your research will suggest other research on how to conduct further research and how you derived your conclusion from the analysis.
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One of the ways that an organization can improve its return on investment for marketing is to base its marketing activities on a well-considered, empirically-based strategy .
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Philip Kotler defines strategic marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Strategic Marketing Plan research papers discuss the part of business that deals with the overall business strategy, and lists actions based on corporate mission.
Free strategic marketing papers, essays, and research papers. Free Essay: Strategic Marketing Process The purpose of this paper is to briefly explore the strategic marketing process, specifically the key phases of.