definition of marketing strategy
TRANSCRIPT
Definition of Marketing
Series
What is Marketing Strategy
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What is Marketing Strategy
Marketing strategy is a long-term course of action designed to optimize allocation of the scarce resources at the disposal of a firm in delivering superior customer experiences and promote the interests of other stakeholders.
Scarce resources include monetary capital, human capital, technology, time,
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What is Marketing Strategy?
Marketing strategy is intimately tied with strategic planning – the process of creating a firm’s strategy.
Marketing strategy should be linked with the firms’ mission, and values (although these elements are not strictly part of marketing strategy)
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Mission
Mission
A firm’s mission should be a definition of who the company is, what it does, and for whom.
Mission statements must provide direction without being so restrictive they curb opportunity
Mission statements should revolve around the needs a the target market or markets.
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Values
Organizational values not only guide members in acceptable behaviors, but inspire them
Organizational values should be:
Clearly articulated and communicated
Timeless
Rewarded when behavior matches values and punished when it doesn’t
Followed by everyone at all levels in the organizationHausman & Associates
Why is Strategy Important?
Strategy is like a roadmap. It tells you:
How to get where you’re going
What you’ll need to get you there
Estimates how long it will take to get there
Where dangers lie in wait
What happens when you don’t have a clear strategy?
You make lots of mistakes
Waste time and other resources
Likely never reach where you intended to Hausman & Associates
Elements of Marketing Strategy
Situation analysis or environmental scan
Internal analysis of:
Resources
Current tactics related to product, price, promotion, and distribution
Current metrics
Current markets
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Elements (continued)
Environmental scan (continued)
External analysis of:
Culture and society surrounding target market
Competitive conditions, including direct and indirect competitors
Economic conditions, such as GDP, consumer confidence
Technological conditions, including social media, new operational techniques, new products
Legal conditions, including regulations and lawsHausman & Associates
Elements (continued)
Environmental scan includes current conditions plus trends likely impacting future conditions
SWOT analysis – strengths, weaknesses, opportunities, and threats based on environmental scan
Objectives and goalsHausman & Associates
Strategy Formation
Builds on environmental scan
Uses tools such as:
Perceptual maps
Portfolio analysis
Product-market grids
Competitive advantage
Diversification analysisHausman & Associates
From Strategy to Implementation
Transform strategies into individual tactics
Monitor performance using Key Performance Indicators (KPIs)
Tweak strategies and tactics based on performance
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Where does strategy come from?
Top down –
use executives, board of directors, and other advisors to develop strategy
Overall strategy is transmitted to organizational units for details
Bottom up –
Organizational units develop strategies
Executives coalesce individual strategies into cohesive plan
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Resources for more information
Marketing Plan instructions here
Strategic Market Management by David Aaker, from Amazon
Strategic Marketing Management by Alexander Chernev, from Amazon
Connect with us
@MarketingLetter