Marketing strategy

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Marketing strategy is a long-term and forward-looking approach to planning with a fundamental goal of achieving a sustainable competitive advantage. Strategic planning involves analyzing the company's preliminary strategic situation prior to the formulation, evaluation and selection of market-oriented competition positions that contribute to corporate goals and marketing objectives.

Strategic marketing, as an obscure field of study emerged in the 1970s, and built on the strategic management that preceded it. Marketing strategy highlights the role of marketing as a link between the organization and its customers.

At the most fundamental level, strategic marketing discusses three simple questions that deceive: (1) Where are we now? (2) Where do we go? and (3) How will we get there? In an effort to answer these questions, strategic planners need sophisticated skills in both research and analysis.

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Definition of marketing strategy

Scholars continue to debate the precise meaning of marketing strategies. Consequently, the literature offers many different definitions. However, on closer inspection, this definition seems to center on the idea that strategy refers to a broad statement of what it wants to achieve.

Marketing Strategy is:

"The marketing strategy lays out the target market and the value proposition to be offered based on the best market opportunity analysis." (Philip Kotler & Kevin Keller, Marketing Management, Pearson, Issue 14)

"The over-riding redirect concept that defines the planned path." (David Aaker and Michael K. Mills, Strategic Market Management, 2001, pp. 11)

"The bottom line is the formula for how the business will compete, what its goals and what policies will be required to implement this goal." (Michael Porter, Competition Strategy: Techniques for Analyzing Industries and Competitors, NY, Free Press, 1980)

"The main objective patterns, objectives and targets and policies and plans necessary to achieve those objectives are stated in such a way as to determine what business is in the company or are in it. (S. Jain, i> Marketing Planning and Strategy, 1993)

"Explicit guidelines for future behavior." (Henry Mintzberg, "Development Strategy," Harvard Business Review, July-August, 1987 pp. 66-74)

Strategy "is provided for actions aimed directly at changing the strength of a company relative to its competitors... Perfect strategy is not necessary.The important thing is... performance relative to competitors." (Kenichi Ohmae, i> Mind from Strategist, 1982, p 37)

The strategy formulation builds on "the suitability of organizational resources and the skills and opportunities and environmental risks it faces and the goals to be achieved." (Dan Schendel and Charles W. Hofer, Strategy Formula: Analytic Concept, South-West, 1978, pp. 11)

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Marketing management versus marketing strategy

The difference between "strategic" and "managerial" marketing is used to distinguish "two phases that have different goals and are based on different conceptual tools.Regional marketing involves policy choices aimed at improving a company's competitive position, taking into account the challenges and opportunities posed by competitive environment.On the other hand, managerial marketing is focused on the application of specific targets. "The marketing strategy is about" a noble vision translated into a less noble and practical purpose [while marketing management] is where we start to make our hands dirty and make plans for things to happen. " Marketing strategies are sometimes called high planning because they set broad directions and provide guidance and structure for marketing programs.

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A brief history of strategic marketing

Marketing scholars have suggested that strategic marketing emerged in the late 1970s and its origins can be understood in terms of different evolutionary paths:

Budgeting Controls (also known as scientific management )

Date: From the end of the 19th century

Major Thinkers: Frederick Winslow Taylor, Frank and Lillian Gilbreth, Henry L. Gantt, Harrington Emerson

Main Ideas: Emphasis on quantification and scientific modeling, reducing work to the smallest possible units and assigning jobs to specialists, control exercises through rigid managerial hierarchies, standardizing inputs to reduce variation, defects and control costs, using quantitative forecasting methods to predict change.

Long Term Planning

Date: From the 1950s

Prime Thinker: Herbert A. Simon

Main Idea: The managerial focus is to anticipate growth and manage operations in an increasingly complex business world.

Strategic Planning (also known as corporate planning )

Date: From 1960s

Prime Thinker: Michael Porter

Main Idea: Organizations must find the right fit within an industrial structure; profit comes from industry concentration and market power; companies must strive to achieve false monopolies or monopolies; Successful companies must be able to build barriers to entry.

Strategic Marketing Management

Date: from the late 1970s

The main thinker: R. Buzzell and B. Gale

Main Idea: Every business is unique and there is no formula to achieve competitive advantage; companies should adopt flexible planning and review processes aimed at addressing strategic shocks and rapidly growing threats; the focus of management is how to provide superior customer value; highlights the primary role of marketing as a liaison between customers and organizations.

Resource Based View (RBV) (also known as profit-sources theory )

Date: From the mid-1990s

Major Thinkers: Jay B. Barney, George S. Day, Gary Hamel, Shelby D. Hunt, G. Hooley and C.K. Prahalad

Main Idea: Company resources are financial, legal, human, organizational, information and relational; heterogeneous and imperfect moving resources, the primary task of management is understanding and managing resources for sustainable competitive advantage.

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Strategic marketing planning: Overview

The marketing strategy involves mapping the company's direction for the upcoming planning period, whether it's three, five or ten years. This involves doing a 360 ° review of the company and its operating environment with a view to identifying new business opportunities that a company can take advantage of for competitive advantage. Strategic planning can also reveal the market threats that companies may need to consider for long-term sustainability. Strategic planning does not make assumptions about a company that continues to offer the same product to the same customers in the future. Instead, it is about identifying possible business opportunities and evaluating the company's capacity to take advantage of those opportunities. It seeks to identify a strategic loophole ; that's the difference between where the company is currently located ( strategic reality or intentional strategy ) and where it should be located for long-term sustainable growth (which is strategic or deliberate strategy ).

Strategic planning seeks to answer three deceptively simple questions, in particular:

* Where are we now? (Situation analysis)

* What business should we do? (Vision and mission)

* How should we get there? (Strategy, plan, goals, and objectives)

The fourth question can be added to the list, which is 'How do we know when we get there?' Due to the increasing need for accountability, many marketing organizations use various marketing metrics to track strategic performance, allowing corrective action to be taken as needed. On the surface, strategic planning seeks to answer three simple questions; however, the research and analysis involved in strategic planning is highly sophisticated and requires a great deal of skill and judgment.

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Strategic analysis: tools and techniques

Strategic analysis is designed to answer the first strategic question, "Where are we now?" Traditional market research is less useful for strategic marketing because analysts are not looking for insight into customer attitudes and preferences. Instead strategic analysts seek insight into the company's operating environment with a view to identify potential scenarios, opportunities, and threats in the future.

Strategic planning focuses on three 3Cs, namely: Customers, Corporations, and Competitors. Detailed analysis of each factor is the key to the success of strategy formulation. The 'competitors' element refers to the analysis of the strength of a business relative to a close competitor, and the consideration of a competitive threat that may affect a business's ability to move in a certain direction. The 'customer' element refers to an analysis of possible changes in customer preferences that potentially lead to new business opportunities. The 'company' element refers to a detailed analysis of the company's internal capabilities and its readiness to take advantage of market-based opportunities or their vulnerability to external threats.

Mintzberg points out that top planners spend most of their time engaged in analysis and concerned with industry or competitive analysis as well as internal studies, including the use of computer models to analyze trends within organizations. Strategic planners use a variety of research tools and analytical techniques, depending on the complexity of the environment and corporate objectives. Fleitcher and Bensoussan, for example, have identified about 200 qualitative and quantitative analysis techniques that are regularly used by strategic analysts while recent publications show that 72 techniques are critical. No optimally identifiable technique is useful in all situations or problems. Determining which technique is used in a particular situation depends on the skill of the analyst. Tool options depend on a variety of factors including: data availability; the nature of the marketing problem; goals or objectives, skill levels of analysts as well as other constraints such as time or motivation.

The most commonly used tools and techniques include:

Research methods

• Environmental scanning
• Marketing intelligence (also known as competitive intelligence)
• Futures research

Analytical techniques

• Brand Development Index (BDI)/Category Development Index (CDI)
• Branding/Category Brokers
• Benchmarking
• Blindspots Analysis
• Functional capabilities and resource analysis
• Impact analysis
• Counterfactual Analysis
• Request analysis
• Analysis of Emerging Problems
• Experience curve analysis
• Gap analysis
• Herfindahl Index
• impact analysis
• Industrial Analysis (also known as power analysis of five Porters)
• Profile creation
• Market segmentation analysis
• Market share analysis
• Market Segmentation Analysis
• Perceptive mapping
• PEST analysis and its variants including PESTLE, STEEPLED and STEER (PEST sometimes known as Six Segment Analysis)
• Portfolio analysis, such as the BCG growth-share matrix or GE business screen matrix
• Precursor Analysis or Evolution Analysis
• Product lifecycle analysis and S-curve analysis (also known as technology life cycle or sensation cycle analysis)
• Analysis of product evolutionary cycles
• Scenario analysis
• Segment Sharing Analysis
• Situation analysis
• Strategic Group Analysis
• SWOT Analysis
• Trending Analysis
• Value chain analysis

A brief description of the gap analysis

Gap analysis is a type of high-order analysis that seeks to identify the differences between the current organizational strategy and the desired strategy. This distinction is sometimes known as a strategic gap. Mintzberg identifies two types of strategies that are deliberate strategy and intentional strategy. A deliberate strategy represents the company's strategic intent or desired path while an unintentional strategy represents a path that the company might follow because it is tailored to changes in the environment, competition and markets. Other scholars use the strategy of realized strategy versus intended to refer to the same concept. This type of analysis indicates whether an organization has strayed from the desired path during the planning period. The presence of a large gap can indicate the organization has become stuck in the middle ; recipe for strategic mediocrity and potential failure.

A brief description of the Category/Brand Development Index

The category/brand development index is a method used to assess sales potential for a region or market and identify market segments that can be developed (ie high CDI and high BDI). In addition, it can be used to identify markets where categories or brands are below performance and may indicate underlying marketing issues such as poor distribution (ie high CDI and low BDI).

BDI and CDI are calculated as follows:

BDI = (Brand Sales (%) in Market A/Population (%) in Market A) X 100

CDI = (Sales Category (%) in Market/Population (%) in Market A) X 100

A brief description of the PEST analysis

Strategic planning usually begins with scanning the business environment, both internal and external, this includes understanding strategic constraints. Understanding of the external operating environment, including political, economic, social and technological aspects covering demographic and cultural aspects, is needed to identify business opportunities and threats. This analysis is called PEST; acronym for P olitik, E konomik, S ocial and T echnological. A number of PEST analysis variants can be identified in the literature, including: PESTLE analysis (Political, Economic, Social, Technological, Legal and Environmental); STEEPLE (add ethics); STEEPLED (add demographics) and STEER (add settings).

The purpose of the PEST analysis is to identify opportunities and threats in the wider operating environment. Companies try to take advantage of opportunities while trying to buffer themselves against potential threats. Basically, PEST analysis guides strategic decision making. The main elements of the PEST analysis are:

• P olitis: political intervention with the potential to disrupt or improve trade conditions, eg. government laws, policies, financing or subsidies, support for specific industries, trade agreements, tax rates, and fiscal policies.
• E economic factors with potential to affect profitability and billable prices, such as, economic trends, inflation, exchange rates, seasonal seasons and economic cycles, consumer confidence, consumer purchases power and discretionary income.
• S ocial: social factors that affect demand for products and services, consumer attitudes, tastes and preferences such as demographics, social influencers, role models, shopping habits.
• T echnological: Innovation, technological development or breakthroughs that create opportunities for new products, improve production processes, or new ways of transacting business, e.g. new materials, new materials, new machines, new packaging solutions, new software, and new intermediaries.

When performing PEST analysis, planners and analysts may consider operating environments at three levels, namely supranational ; national and sub national or local levels. As businesses become more global, they may need to pay more attention to the supranational level.

A brief description of the SWOT analysis

In addition to PEST analysis, the company analyzes Strengths, Weakness, Opportunities and Threats (SWOT). SWOT analysis identifies:

• Strengths: skills, competencies, skills, or distinctive assets that provide businesses or projects with advantages over potential competitors; profitable internal factors to achieve company goals
• Weaknesses: internal flaws that put business or project at a loss relative to rivals; or deficiencies that prevent entities from moving in new directions or acting on opportunities. unfavorable internal factors to achieve company goals
• Opportunities: elements in the environment that the business or project can exploit for its benefits
• Threats: elements in the environment that can erode the market position of the company; external factors that prevent or inhibit an entity from moving in the desired direction or reaching its destination.

Usually the company will try to take advantage of opportunities that can be matched with internal strengths; meaning that the company has the capability in any area that matches the external opportunity. It may be necessary to build capacity if you want to take advantage of opportunities in the field of weakness. Areas of weakness that are matched against external threats are vulnerable, and companies may need to develop contingency plans.

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Developing vision and mission

Vision and mission addresses the second central question, 'Where do we go?' At the end of the research and analysis phase, the company will typically review vision statements, mission statements and, if necessary, devise new vision and mission for the prospect period. At this stage, the company will also develop generic competitive strategies as a basis to maintain a sustainable competitive advantage for the upcoming planning period.

A vision statement is a realistic and long-term future scenario for an organization. (The vision statement should not be equated with a slogan or motto.) The vision statement is designed to present a realistic, long-term future scenario for the organization. This is "a clearly articulated statement of the business scope." Strong vision statements usually include the following:

• Competitive scope
• Market coverage
• Geographic scope
• Vertical scope

Some experts point out that market vision is a skill or competency that summarizes the capacity of planners "to connect advanced technologies with future market opportunities, and do so through mutual understanding of specific product markets.

The mission statement is a clear and concise statement of the organization's reasons for becoming and the scope of its operations, while the generic strategy describes how the company intends to achieve its vision and mission.

The mission statement should include detailed information and should be more than a simple mother statement. Mission statements usually include the following:

• Target customer specification
• Identify the main product or service offered
• Specification geographical scope of operation
• Identify core technology and/or core capabilities
• An outline of the company's commitment to long-term survival, growth and profitability
• Outline key elements in the company's core philosophy and values ​​
• Identify the public image that the company wants

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Develop a generic competition strategy

The generic competition strategy outlines the fundamental fundamentals for obtaining a sustainable competitive advantage in a category. Companies can usually track their competitive position to one of three factors:

• Superior skills (eg coordination of individual specialists, created through investment interaction in professional training and development, work and learning)
• Superior resources (eg patents, trademark protection, special physical assets, and relationships with suppliers and distribution infrastructure.)
• Superior position (product or service offered, market segment served, and the extent to which the product market can be isolated from direct competition.)

It is essential that internal analysis provides an honest and open evaluation of the company's superiority in terms of skills, resources or market position as this will be the basis for competing over the coming planning periods. For this reason, some companies engage external consultants to provide independent assessments of the company's capabilities and resources.

Porter and school positioning: approach to strategy formulation

In 1980, Michael Porter developed an approach to strategy formulation that proved very popular among academics and practitioners. This approach is known as a positioning school because of its emphasis on placing a sustainable competitive position in an industry or sector. In this approach, strategy formulation consists of three threads of thought: analysis of the five forces to determine the source of competitive advantage; selection of one of three possible positions that utilize the benefits and value chain to implement the strategy. In this approach, strategic choices involve decisions about whether to compete for part of the total market or for specific target groups (competitive scope) and whether competing on cost or product differences (competitive advantage). This type of thinking leads to three general strategies:

• Cost leadership - companies target mass market and strive to be the lowest cost producer in the market
• Differentiation - the company targets mass market and tries to maintain unique points of product difference that customers perceive to be desirable and for that they are ready to pay a premium price
• Focus - the company does not compete head to head, but chooses a narrow target market and focuses efforts to satisfy the needs of that segment

According to Porter, these strategies are mutually exclusive and companies must choose one approach to overriding all others. Companies that try to be everything to everyone can present a confusing market position that ultimately leads to below-average returns. Any ambiguity about a company's approach is a recipe for "strategic mediocrity" and any company that tries to pursue two approaches simultaneously is said to be "stuck in the middle" and destined for failure.

Porter's approach was the dominant paradigm of the 1980s. However, the approach has attracted much criticism. One important criticism is that it is possible to identify successful companies that pursue hybrid strategies - such as low cost positions and different positions simultaneously. Toyota is a classic example of this hybrid approach. Other scholars point to the simple nature of the analysis and the overly strategic nature of strategic choices that limit the strategy to only three options. Yet others point to studies showing that many practitioners feel the approach is too theoretical and does not apply to their business.

Resource-based views (RBV)

During the 1990s, the resource-based view (also known as resource-profit theory) from the company became the dominant paradigm. This is an interdisciplinary approach that represents a substantial shift in thinking. It focuses attention on the organization's internal resources as a means of organizing processes and gaining competitive advantage. A resource-based view indicates that organizations must develop specific, company-specific core competencies that will enable them to outperform competitors by doing things differently and in a superior way.

Barney states that for resources to hold the potential as a source of sustainable competitive advantage, they must be valuable, rare and imperfect. A key insight emerging from a resource-based view is that not all resources have a common interest or have the potential to be a source of sustainable competitive advantage. The sustainability of competitive advantage depends on the extent to which resources can be replicated or replaced. Barney and others point out that understanding a causal relationship between a source of profit and a successful strategy can be very difficult in practice. Thus, many managerial efforts should be invested in identifying, understanding, and classifying core competencies. In addition, management should invest in organizational learning to develop and maintain key resources and competencies.

Market-Based Resources include:

• Organizational culture eg market orientation, research orientation, culture of innovation, etc.
• Assets eg brand, Mktg IS, database, etc.
• Abilities (or competencies) eg. market sensing, marketing research, relationships, knowledge, tacit knowledge, etc.

In a resource-based view, strategists choose a strategy or competitive position that best leverages internal resources and capabilities relative to external opportunities. Given that strategic resources are a complex network of interconnected assets and capabilities, organizations can adopt as many competitive positions as possible. Although scholars debate the exact category of competitive position used, there is general agreement, in the literature, that resource-based views are much more flexible than Porter's perspective approach to strategy formulation.

Hooley et al., Suggests the classification of the following competitive positions:

• Pricing
• Positioning quality
• Placement innovation
• Positioning services
• Positioning benefits
• Adjusted position (one-to-one marketing)

Another approach

The choice of competing strategies often depends on a variety of factors including: the firm's market position relative to its rival firm, the product life cycle stage. An established company in a mature market is likely to have a different strategy than start-up.

Growth strategy

Business growth is critical to business success. Companies can grow by developing markets or by developing new products. Ansoff's product market growth matrices illustrate two broad dimensions to achieve growth. Ansoff's matrix identifies four specific growth strategies: market penetration, product development, market development and diversification.

Market penetration involves selling an existing product to an existing consumer. This is a conservative low risk approach because the product already exists in established markets.

Product development is the introduction of new products to existing customers. This can include modifications to an existing market that can create products that have a higher appeal.

Market development involves selling existing products to new customers to identify and build new customer bases. These could include new geographic markets, new distribution channels, and different pricing policies that bring product prices into the competencies of new market segments.

Diversification is the most risky area for businesses. This is where new products are sold to new markets. There are two types of diversification; horizontal and vertical. 'Horizontal Diversification focuses more on product (s) where the business is knowledgeable, while vertical diversification focuses more on introducing new products to new markets, where businesses can have little knowledge of new markets.

Horizontal integration

The horizontal integration strategy can be indicated in a rapidly changing work environment and provides a broad knowledge base for businesses and employees. The benefit of horizontal diversification is that it is an open platform for businesses to expand and build from existing markets.

The high level of horizontal integration leads to high levels of communication in business. Another benefit of using this strategy is that it leads to a larger market for the combined business, and it's easier to build a good reputation for the business when using this strategy. The disadvantage of using a diversification strategy is that the benefits can take time to start showing, which can make the business believe that the strategy is not effective. Losses or other risks, it has been shown that using the horizontal diversification method has become dangerous for stock value, but using vertical diversification has the best effect.

The disadvantage of using a horizontal integration strategy is that it limits and limits the area of ​​interest to the business. Horizontal integration can affect the reputation of a business, especially after a merger occurs between two or more businesses. There are three major benefits to business reputation after merging. Larger businesses help reputation and increase the severity of punishment. As well as merging information once the merge has taken place, it improves the knowledge of the business and marketing areas they focus on. The last benefit is more opportunities for irregularities to occur in a combined business than an independent business.

Vertical integration

Vertical integration is when a business is expanded through a vertical production line on a single business. An example of a vertically integrated business is Apple. Apple has all of their own software, hardware, design, and operating systems instead of relying on other businesses to supply this. By having a highly vertically integrated business, it creates a variety of economies to create a positive performance for the business. Vertical integration is seen as a business that controls input supply and product output and distribution of final products. Some of the benefits of using a Vertical integration strategy are that costs can be reduced as it reduces transaction costs that include searching, selling, monitoring, contracting, and negotiating with other companies. Also by reducing input from outside businesses, it will increase the use of efficient input into the business. Another benefit of vertical integration is increasing information exchange through the various stages of the production line. Some competitive advantages may include; avoid foreclosures, improve business marketing intelligence, and open up opportunities to create different products for the market. Some of the disadvantages of using a Vertical Integration Strategy include internal costs for businesses and overhead costs. Also if the business is not well organized and fully equipped and prepared the business will struggle to use this strategy. There are also competitive disadvantages, which include; creating barriers to business, and losing access to information from suppliers and distributors.

Market position and strategy

In terms of market position, firms can be classified as market leaders, market challengers, market participants or market nichers.

Market leader : Market leaders dominate the market with an objective measure of market share. Their overall attitude is defensive as they have more to lose. Their goal is to strengthen their prominent position through the use of PR to develop corporate image and to block competitor brands for brands, matching distribution through tactics such as use of "battle" brands, pre-emptive attacks, use of rules to block competitors. and even spread rumors about competitors. Market leaders can adopt unconventional or unpredictable approaches to building growth and their tactical responses may include: product proliferation; diversification; multi-branding; building barriers to entry; vertical and horizontal integration and corporate acquisitions.

Market challengers : Market challengers hold the second highest market share in the category, following behind dominant players. Their market posture is generally offensive because they have less loss and more profit by taking risks. They will compete directly with the market leader in an effort to grow market share. Their overall strategy is to gain market share through product innovation, packaging and service; new market development and redefinition to expand their coverage and position within it.

Market followers : Followers are usually content to play the second violin. They seldom invest in R & amp; D and tend to wait for market leaders to develop innovative products and then adopt the "me as well" approach. Their market posture is usually neutral. Their strategy is to maintain their market position by retaining existing customers and capturing a fair share of each new segment. They tend to retain profits by controlling costs.

Better Markets : Better markets occupy a small niche in the marketplace to avoid a head to head competition. Their goal is to build strong relationships with the customer base and develop a strong fidelity with existing customers. Their market posture is generally neutral. Their strategy is to develop and build segments and protect them from erosion. Tactically, nichers tend to increase product or service offerings, take advantage of cross selling opportunities, offer value for money, and build relationships through superior after-sales service, service quality, and other value-added activities.

As the pace of change in the marketing environment gets faster, the time horizon becomes shorter. However, most companies carry out strategic planning every 3-5 years and treat the process as a means to check whether the company is on track to achieve its vision and mission. Ideally, strategies are dynamic and interactive, some are planned and some are unplanned. A broad strategy within their scope to enable the company to react to unexpected developments while trying to stay focused on a particular path. A key aspect of marketing strategy is to keep marketing consistent with the company's overall mission statement.

Strategies often determine how to adapt the marketing mix; companies can use tools like Marketing Mix Modeling to help them decide how to allocate scarce resources, and how to allocate funds across brand portfolios. In addition, companies can perform performance analysis, customer analysis, competitor analysis, and target market analysis.

Login strategy

Marketing strategies may vary depending on the unique situation of each business. According to Lieberman and Montgomery, each participant enters the market - whether it is new or not - is classified under the Pioneer of the Market, Followers of Close or Final followers

Pioneers

Market pioneers are known to often open up new markets to consumers based on great innovations. They emphasize the development of this product, and in a large number of cases, research has shown that early migrants - or pioneers - into the market have a serious market share advantage over all later incoming people. Pioneers have a first-mover advantage, and in order to take advantage of this, businesses' must ensure that they have at least one or more of three major sources: Technology Leadership, Asset Deletion or Buyer Redirect Costs. Technology Leadership means gaining profit through Research and Development or the "learning curve". This allows businesses to use the research and development stage as a key selling point because of the main research of new or developed products. Preemption of Assets can help earn profits through the acquisition of scarce assets in certain markets, enabling the first driver to be able to control existing assets rather than those created through new technologies. So as to enable existing information to be used and lower risk when first entering a new market. By being the first participant, it is easy to avoid the higher switching costs compared to later arrivals. For example, those who enter must then invest more expenses to push customers away from the initial migrants. However, while Market Pioneers may have "the greatest likelihood of engaging in product development" and lower switching costs, in order to gain first mover advantage, it can be more expensive as product innovation becomes more expensive than product imitations. It has been found that while Pioneers both in consumer goods and industrial markets have gained "significant sales gains", they bear greater losses at a greater cost.

Close followers

Being a Market Pioneer can, more often than not, attract entrepreneurs and/or investors depending on market benefits. If there is a potential increase and the ability to have a stable market share, many businesses will begin to follow in the footsteps of these pioneers. This is more commonly known as Close Followers. These migrants to the market can also be seen as challengers for the Market Pioneers and Followers. This is because early followers are more likely to invest significant amounts in Product Research and Development than the next entrants. By doing this, it allows businesses to find weaknesses in previously generated products, thus leading to the improvement and expansion of the product. Therefore, it can also lead to customer preference, which is important in the success of the market. Due to the nature of the early followers and the time of the slower research of Market Pioneers, different development strategies are used compared to those entering the market at the beginning, and the same applies to those who are late in followers in the marketplace. By having different strategies, it allows followers to create their own unique selling point and may target different audiences as compared to Market Pioneers. Initial follow-up markets can often be driven by business 'products' that are "threatened or have certain industrial support assets".

End Participants

Those who follow after the Close Followers are known as End Participants. While being a Final Participant can seem very scary, there are some advantages to being a latecomer. For example, the End Participant has the ability to learn from those who are already on the market or have been in before. End Followers have the learning advantage of their initial competitors and increase the benefits or reduce the total cost. This allows them to create strategies that basically mean gaining market share and, most importantly, staying in the market. In addition, the market is growing, leading to consumers who want improvements and advances in the product. End Followers have the advantage of catching a shift in customer needs and wants towards the product. When considering customer preferences, customer value has a significant effect. Customer value means taking into account customer and brand or product investments. It was created through "perceived benefits" and "total cost of ownership". On the other hand, if the needs and wants of consumers are only slightly changed, End Followers can have a cost advantage over the early arrivals due to the use of product imitations. However, if a business switches to the market, it can take advantage of costs because of the cost of market changes for the business. Delays Entry into the market does not necessarily mean there is a downside when it comes to market share, it depends on how the marketing mix is ​​adopted and the business performance. If the marketing mix is ​​not used properly - regardless of the time of the participants - the business will earn little or no profit, potentially losing significant chances.

Different strategies

Customized target strategy

Individual customer market requirements are unique, and the purchase is enough to create a new marketing mix design for each customer.

If a company adopts this type of market strategy, a separate marketing mix must be designed for each customer.

A special marketing mix can be developed to attract most segments when market segmentation reveals some potential targets.

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Develop marketing goals and objectives

While the vision and mission provide a framework, "the goal of setting targets in a mission, which, when achieved, must move the organization toward that mission's performance." Goals are broad main results whereas, goals are measurable steps taken to achieve goals or strategies. In strategic planning, it is important for managers to translate the overall strategy into goals and objectives. Goals are designed to inspire action and focus on specific desired outcomes. Objectives, on the other hand, are used to measure organizational performance on a particular dimension, thus providing the organization with feedback on how well it achieves its goals and strategies.

Managers usually set goals using the balanced scorecard approach. This means that goals do not include exclusively desired financial results, but also determine performance measures for customers (eg satisfaction, loyalty, recurrent patronage), internal processes (eg, employee satisfaction, productivity) and innovation and improvement activities.

After setting goals, marketing strategies or marketing plans must be developed. The marketing strategy plan outlines the specific actions to take from time to time to reach the goal. The plan can be extended to cover many years, with sub-plans for each year. Plans usually involve monitoring, to assess progress, and prepare for possibility if problems arise. Simulations such as customer lifetime value models can be used to help marketers perform an "what-if" analysis to predict what potential scenarios arise from possible actions, and to gauge how certain actions can affect variables such as revenue per customer and turnover rate.

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Strategy typology

Developing a competitive strategy requires a significant assessment and is based on a thorough understanding of the company's current situation, its past history and its operating environment. No heuristics have been developed to help strategists choose the optimal strategic direction. Nevertheless some researchers and scholars have sought to classify a broad group of strategy approaches that may serve as a broad framework for thinking about appropriate options.

strategy category Raymond Miles

In 2003, Raymond Miles proposed a detailed scheme using categories:

• Calonor: actively looking for new market opportunities
• Analyzers: very innovative in their product-market choices
• Defender: relatively careful in their initiative
• Reactors: tend to wobble in their response to environmental change and generally the most unprofitable organizations

Warfare marketing

The marketing war strategy is a competitor-centered strategy drawn from analogy with the field of military science. The war strategy was very popular in the 1980s, but interest in this approach has dwindled in a new era of marketing relations. The increased awareness of the differences between business and military culture also raises the question of the extent to which this kind of analogy is useful. Regardless of its limitations, typology of marketing war strategy is useful for predicting and understanding competitors' responses.

In the 1980s, Kotler and Singh developed the typology of a marketing war strategy:

• A frontal attack: in which an aggressor faces each other for the same market segment on an offer with an offer, a price based on price; typically used by market challengers against more dominant players
• Flanking attack: attacking the organization in its weakest part; used by market challengers
• Bypass attack: bypassing the market leader by attacking smaller and more vulnerable target organizations to expand the aggressor resource base
• The siege attack: attacking the dominant player on all fronts
• Guerrilla warfare: sporadic attacks, unpredictably using conventional and unconventional means to attack rivals; usually done by smaller players against market leaders

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Relationship between marketing strategy and marketing mix

Generic and competitive strategies provide overall structure and guidance for day-to-day operational planning and decision-making. The 4P's (Price, Product, Place and Promotion), also known as the marketing mix or marketing program is a tool that can be used by marketers in daily operational planning. This marketing program allows marketers the means to turn a long-term vision into a daily practice. By tinkering with the elements of the marketing mix, marketers can adjust their bids to meet different requirements for the current situation.

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See also

• Asymmetric Competition
• Business model
• Business options
• Company anniversary
• Customer engagement
• First mover advantage
• Marketing
• Market segmentation
• Pricing strategy
• Marketing is on time
• Strategic planning

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References

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Further reading

• Laermer, Richard; Simmons, Mark, Punk Marketing, New York: Harper Collins, 2007 ISBNÃ, 978-0-06-115110-1 (Book review by Marilyn Scrizzi, at the Consumer Marketing Journal i> 24 (7), 2007)

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External links

• Media related to Marketing strategy in Wikimedia Commons

Source of the article : Wikipedia