Marketing Strategy

Jeremy Kees, Ph.D.

Marketing Strategy

• Marketing strategy: a firm’s overall program for selecting and satisfying a target market

• A marketing strategy is aimed at satisfying consumers in the selected target market through a careful balance of the elements of the marketing mix – each of which represents a subset of the overall marketing strategy

• 2 Key elements in marketing strategy– Target Market– Marketing Mix Variables

Successful Strategies: Tools and Techniques

• All planning strategies have the goal of creating a sustainable competitive advantage for a firm

• This is achieved through focusing on a firm’s core competency

Successful Strategies: Tools and Techniques• A core competency is…

1. The source of the competitive advantage that is the source of value to the consumer

2. Is difficult for competitors to imitate

3. Has applications in a wide variety of markets

• The core competency (competitive advantage) should drive strategic planning at the organizational and divisional levels

Target Market

– Group of people toward whom the firm decides to direct its marketing efforts

• Toyota

• Anheuser Busch

Marketing Mix Variables

• Product Strategy

• Place (Logistics and Distribution) Strategy

• Promotional Strategy

• Pricing Strategy

Product Strategy

• More than just the product or service offered

• Deciding what goods or services to offer consumers

• Decisions concerning customer service, • package design, • brand names, • trademarks and patents, • warranties, • product positioning, and • new product development.

• One key decisions is:– First versus Second Mover Strategy

Distribution Strategy

• Ensures that consumers find their products in the proper quantities at the right times and places.

• Transportation modes.

• Warehousing.

• Inventory control.

• Order processing.

Promotional Strategy

• Blending together the various elements of promotion to communicate most effectively with the target market

• Informing, persuading, and influencing a consumer’s purchase decision.

• IMC

Pricing Strategy

• Deals with the methods of setting profitable and justifiable prices