Importance of marketing strategy

Importance of marketing strategy
See also
Types of strategies Transformational outsourcing Competitive advantage Vertical integration Life cycle of organization Cost reduction Horizontal integration Functional strategy Spin-off

The marketing strategy is part of the overall business strategy. It can involve a variety of functional area strategies including positioning, pricing, distribution, and global strategies. It has a functional character. It is defined as a selection of objectives, types of policies or rules that give marketing direction to the company's activities, determine the combination and allocation of funds depending on the changing market situation (conditions of the environment and competition) .

Importance of marketing strategy is very high in contemporary company. Good marketing strategy:

• helps to grow market share and achieve higher sales volume
• acts as a framework for all employees (in sales, marketing, production, finance areas) which regulate their actions and goals
• provide information for better targeting of new product on existing or new markets
• allows optimal segmentation and diversification of company line of products or services
• gives direction for innovation and R&D activities
• optimizes distribution efforts and reduce costs and time of introduction of new products to the market
• etc.

Structure of marketing strategies

1. Functional strategies - they form the basis of strategic planning and focus on certain approaches of a particular company to its main functional activities. Its scope includes the definition of the target market, the width and depth of the assortment, product brand policy and product recall. The main decision areas are pricing policy, promotion and shaping of inventories. Functional strategies allow for the management of such areas as: finance, research and development, or marketing
2. Global strategy - concerns actions undertaken by the company as a whole. In creating such strategies, you can distinguish those that:

• they are based on the concept of the "life cycle of the organization", that is, the development planned by the company. Often it may be a desire to grow, but sometimes only to maintain the position achieved or to avoid a crisis
• using portfolio methods - the key problem is to improve the efficiency and effectiveness of the entire enterprise involved in more than one type of business

1. Strategic enterprise - operates mainly as an independent enterprise. Such units may, but do not have to work closely with the companies from which they were separated or refer to its formal structure. They are also used to define the strategy of a diversified company. The basic reason is the desire to combine in many organizational structures many different forms of activity in order to achieve the necessary competitive advantage.

Selected types of marketing strategies

The types of marketing strategies play a very important role in the company. The most important of them include:

• Relations between the market and the product - they generate an increase in sales of products to existing customers, acquire new buyers, increase market share through price cuts, increase the frequency of purchases through promotions and protect the market from competition
• Competitiveness - maintaining the position of the company in a given sector, obtaining a higher rate of profit than the competition and effectively dealing with five competitive forces
• Participation of the company in the market - it shows the amount or value of the company's sales in a given market, obtains significant market activities and gives the opportunity to launch new brands on the market
• Impact on buyers - allows you to incur lower expenditures on promotion, gives the opportunity to apply the strategy of expanding the brand into new products and determines the degree of diversification of marketing activities

References

• Alireza A., Mahdi D., Minoo A., Zahra A. (2012) Effectiveness of Marketing Strategies and Corporate Image on Brand Equity as a Sustainable Competitive Advantage. „ Institute of Interdisciplinary Business Research” s. 194 – 197.
• Green Jr. K., Inman R.A., Whitten D. (2012) Aligning marketing strategies throughout the supply chain to enhance performance „Industrial Marketing Management” s. 1010 - 1014.
• Leonidou L., Theodosiou M. (2003) [ https://parsproje.com/tarjome/modiriyat/397.pdf Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research]’’ „International Business Review” s. 156 – 166.
• Zou, S., & Cavusgil, S. T. (2002). The GMS: A broad conceptualization of global marketing strategy and its effect on firm performance. Journal of marketing, 66(4), 40-56.

Footnotes

Author: Agata Janusz