Definition of marketing strategy
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This document discusses marketing strategy and its importance. It defines marketing strategy as a long-term plan to optimize resources to deliver superior customer experiences. Key points made include: - Marketing strategy is tied to a firm's strategic planning and should align with its mission and values. - Developing a strategy helps a company establish goals and a roadmap to achieve them efficiently while avoiding mistakes. - Elements of an effective marketing strategy include analyzing internal resources, external competitors and conditions, and identifying strengths, weaknesses, opportunities and threats. - Strategies are formed using tools like SWOT analysis and then implemented through individual tactics which are monitored with KPIs.
Definition of marketing strategy
- 2. What is Marketing Strategy Marketing strategy is a long-term course of action designed to optimize allocation of the scarce resources at the disposal of a firm in delivering superior customer experiences and promote the interests of other stakeholders. Scarce resources include monetary capital, human capital, technology, time, Hausman & Associates
- 3. What is Marketing Strategy? Marketing strategy is intimately tied with strategic planning – the process of creating a firm’s strategy. Marketing strategy should be linked with the firms’ mission, and values (although these elements are not strictly part of marketing strategy) Hausman & Associates
- 4. Mission Mission A firm’s mission should be a definition of who the company is, what it does, and for whom. Mission statements must provide direction without being so restrictive they curb opportunity Mission statements should revolve around the needs a the target market or markets. Hausman & Associates
- 5. Values Organizational values not only guide members in acceptable behaviors, but inspire them Organizational values should be: Clearly articulated and communicated Timeless Rewarded when behavior matches values and punished when it doesn’t Followed by everyone at all levels in the organization Hausman & Associates
- 6. Why is Strategy Important? Strategy is like a roadmap. It tells you: How to get where you’re going What you’ll need to get you there Estimates how long it will take to get there Where dangers lie in wait What happens when you don’t have a clear strategy? You make lots of mistakes Waste time and other resources Likely never reach where you intended to Hausman & Associates
- 7. Elements of Marketing Strategy Situation analysis or environmental scan Internal analysis of: Resources Current tactics related to product, price, promotion, and distribution Current metrics Current markets Hausman & Associates
- 8. Elements (continued) Environmental scan (continued) External analysis of: Culture and society surrounding target market Competitive conditions, including direct and indirect competitors Economic conditions, such as GDP, consumer confidence Technological conditions, including social media, new operational techniques, new products Legal conditions, including regulations and laws Hausman & Associates
- 9. Elements (continued) Environmental scan includes current conditions plus trends likely impacting future conditions SWOT analysis – strengths, weaknesses, opportunities, and threats based on environmental scan Objectives and goals Hausman & Associates
- 10. Strategy Formation Builds on environmental scan Uses tools such as: Perceptual maps Portfolio analysis Product-market grids Competitive advantage Diversification analysis Hausman & Associates
- 11. From Strategy to Implementation Transform strategies into individual tactics Monitor performance using Key Performance Indicators (KPIs) Tweak strategies and tactics based on performance Hausman & Associates
- 12. Where does strategy come from? Top down – use executives, board of directors, and other advisors to develop strategy Overall strategy is transmitted to organizational units for details Bottom up – Organizational units develop strategies Executives coalesce individual strategies into cohesive plan Hausman & Associates
- 13. Resources for more information Marketing Plan instructions here Strategic Market Management by David Aaker, from Amazon Strategic Marketing Management by Alexander Chernev, from Amazon