Procedure for creating marketing strategy
Marketing strategy is a set of medium-and long-term policies, which create market-based operational activities. The formulation of this strategy is decision making process that involves setting the problem areas, and then selecting of optimal solutions and implementation actions.
There are two levels of marketing strategy:
- Level of the corporation
- Level of strategic business unit
Strategy at the level of corporation
The most important issue at this level is the evolution of the market activity specified in the dimensions of products and markets. Managers formulate 4 strategic options:
- Market penetration,
- Development of the market,
- Product development,
- Diversification of activities.
Business unit strategy
Strategic issue at this level is formulating the impact on buyers. Main techniques of impact is a combination of two instruments: quality and price.
Bermuda triangles means areas of the business, in which it is not possible to determine optimal marketing strategy
- Strategy of preference - customers, so called brand customers pay little attention to the price, but the essential thing is for them is quality and brand of product,
- Strategy price-quantity is targeted to buyers who pay attention to the price, the company's activity is based on the principle: large volume-small unit profit
Another ways to impact the market are:
- Mass-marketing strategy - aimed for the average buyer,
- Differentiated marketing strategy - based on the distinction of market segments
The best way to make accurate decisions is to create a strategic profile. Then, managers can adapt strategic decisions to changes taking place in the enterprise and its environment.
See also:
| Procedure for creating marketing strategy — recommended articles |
| Green Marketing — Marketing planning rules — Cost reduction — Definition of strategic management — Differentiation strategy — Consumer orientation — General and target market strategy — Development strategy — Strategic marketing |
References
- Sheth, J. N., & Sisodia, R. S. (2015). Does marketing need reform?: Fresh perspectives on the future. Routledge.
