UNIT 2 MARKETING STRATEGY
Define the meaning of strategy
Explain different approaches to develop marketing strategy
Identify the schematic approach that helps management formulate marketing strategy
Describe the core components of a marketing strategy
1. Strategy Defined
According to Cravens, Merrilees and Walker, “the key features of marketing strategy include clearly defined target markets, unique positioning in the market, a sustainable competitive advantage, a strong value proposition to customers, the exact configuration of the marketing mix, a well-planned implementation and assurance of sufficient flexibility to meet major contingencies.” Or a good strategy should address the following questions:
• the target markets,
• the positioning,
• the source of sustainable competitive advantage, and
• the value proposition
2. Approaches to Develop Marketing Strategy
Marketing strategy is a general statement, which provides the theme or direction when selecting target markets and designing and implementing the firm’s marketing mix. A well-designed marketing strategy is thought to have certain characteristics. These include a) a long-term focus, b) proper co-ordination with other functional areas in an organization, and c) the ability to integrate marketing decision areas in a consistent manner. Marketing strategies can be developed based on a wide variety of approaches:
• Marketing mix approach: Marketing strategy is an indication of how each element of the marketing mix will be used to achieve the marketing objectives.
• Product Life Cycle approach: Marketing strategy needs to be modified at different stages of the PLC.
• Market share approach: Marketing strategy is designed to build, maintain or reduce market share.
• Positioning approach: A three-phase approach, which includes a) segmentation, b) market selection and c) positioning.