Marketing strategy: types, elements, stages of creation

Team TeachWiki

What are we talking about? Marketing strategy is a necessary element of business development. With the help of this document, the company determines the ways to achieve success and the most priority areas of its activity.

What are there? There are quite a few types of marketing strategies, but the choice always comes from the conditions in which the company is located. Large companies can afford to enter the international market, and small businesses can successfully apply competitive tactics.

The article says:

Table of Contents

The concept of marketing strategy

A marketing strategy is a planning approach aimed at promoting goods or services, as well as increasing the profitability of an organization. It can be in any form: both on paper and in the form of a digital document. It is thanks to the marketing strategy that the company can understand what tasks need to be completed to achieve the goal.

If a firm is going to enter a market or launch a new product, then it needs a clear plan of action. The same applies to other business processes, including the development of new directions, the increase in production volumes, the improvement of positions in the industry, etc.

One of the most important goals of a marketing strategy is to increase competitiveness. To do this, it is necessary to identify and correctly use the competitive advantages of the company. We are talking about the introduction of new technologies, the creation and launch of products, improving the level of service, rebranding and many other tasks.

Objectives of the marketing strategy

It is important that the formed marketing strategy is consistent with the overall goals of the organization. A well-designed plan should be focused on solving the following tasks:

  • Increasing brand presence . The sales market is a fundamental link in the process of implementing marketing plans. Its width directly affects the probability of success of the chosen strategy.
  • Increasing sales . A competent plan allows you to multiply the volume of goods sold.
  • Increasing profits . The income of the organization is directly related to sales. The right marketing strategy has a direct impact on the liquidity of a business. For example, it does not make sense to sell products to increase sales if their cost is too low. This will not allow the company to make a profit, so it is worth changing the approach to setting prices.
  • Brand positioning . The market value of a product is formed, among other things, by its positioning. When the value of a product and brand connection is not obvious to potential buyers, sales volumes and profitability decrease. Marketing strategy allows you to create a relationship between the product and the consciousness of the audience.

All these functions are implemented through the analysis of the target audience (CA) and the proposed product. You will never achieve your goals if you do not know what and to whom you need to sell. Thus, a marketing specialist should have a detailed portrait of all segments of the target audience.

To implement a physical product, its distribution, cost, promotion should be described in all details. If we are talking about services, then three more objects of study are added: the physical environment, the process, and employees. It is necessary to determine the unique selling proposition of the product (USP) and understand which of its characteristics can be most useful to the user.

Who needs a marketing strategy

Marketing strategy acts as a necessary element for the systematization of production and marketing of products. The more systematized the operations are, the easier it is to control and predict marketing. This, in turn, is required for any project, whether it be a startup or an entire corporation. Differences exist only at the level of investments.

Moreover, if the organization employs no more than 10 people, then it makes no sense to build a strategy. A much more cost-effective option would be a marketing plan.

There are three factors that determine the need to develop an organization's marketing strategy:

  • market entry or rebranding;
  • problems with identifying and achieving marketing goals;
  • firm stagnation.

Having created a strategy, the company learns its capabilities and development prospects.

Types of Marketing Strategies

Each variety implies a separate vector of actions. Therefore, when developing a marketing strategy, it is necessary to take into account the direction of the company's development, as well as its advantages and initial characteristics.

Global

There are 5 types of such strategies:

  • Internationalization is the entry into new sales areas that are located outside the territory of the original distribution of the product.
  • Diversification is the creation of new units of production.
  • Segmentation is the formation of various products for different categories of consumers.
  • Globalization is the release of a product taking into account the general requirements of the world market.
  • Cooperation - cooperation with other firms on mutually beneficial terms.

Basic

    This separation method was proposed by the American economist Michael Porter. In his opinion, the choice of behavior is influenced by two main elements: costs and benefits. According to his concept, there are three types of strategies:

  • Leadership

    • In this case, the company should focus on its costs. They need to be reduced by controlling costs, investing and increasing the efficiency of the production process. If you are developing a new product, then you need to foresee all the nuances.

  • Differentiation

    • Most attention is paid to the expansion of the organization's activities. To do this, the product must have features that will distinguish it from the product of competitors. Adidas, which initially produced only sports shoes, is a prime example of such a marketing strategy. However, at the moment, under the logo of this brand, a whole range of sports and near-sports products is produced, including bags, t-shirts, suits and casual wear.

  • Specialization

    • In this case, the main task is to gain leadership in their industry. Thus, the company must focus all its efforts on one segment.

Growth strategy

There are three vectors of business development: stabilization, survival, growth. At the same time, growth is the most common direction. This is due to the possibility of increasing profitability and conquering unoccupied territory.

Such a strategy involves the implementation of tasks that allow you to increase profits using a number of methods:

  • use of available opportunities;
  • consolidation with other entities;
  • struggle for new markets.
At the same time, the goals and objectives set determine the specific details of the strategy.

Active development is achievable if all the activities of the company are focused on achieving the goals of the enterprise through the use of all available opportunities. This method is optimal if the organization has unused resources.

Within this tactic, several tools can be distinguished:

  • conquest of points of sale;
  • focus on improving positions;
  • product development.

The growth strategy implies a focus on gaining a leading position, searching for other sales markets, creating unique products and further implementation on the existing platform.

Diversified growth is used when a company cannot grow with a single product. In such a situation, it is necessary to develop new products and at the same time not forget about existing ones. Moreover, one of the effective methods is the production of similar products, but with the introduction of innovative technologies.

Competitive Strategies

Specific methods of influence depend on the position of the organization in the competitive environment in which the business resides. Based on this, 4 varieties are considered:

  • Leader . Used when the brand dominates the market. The strategy provides for activities aimed at finding a new target audience, advertising and increasing the scope of the product.
  • Follow the leader . This approach is based on the principle of following the activities of the leader. Simply put, the organization adopts his decisions and directions of development. The main task is to achieve the highest positions. At the same time, flaws and places in which it is little known are found in the leading company.
  • Challenger . In this case, the organization, figuratively speaking, challenges by changing the cost. It is worth noting that the more space the leader occupies in the market, the more effective this tactic is.
  • Nisher . This strategy will be useful for an organization that works for a specific segment of the target audience. The main goal is to find markets that the leader has not entered. For an optimal result, it is necessary to give an adequate assessment of the profitability from capturing the segment, growth opportunities, interest from competitors, and the potential to provide customers with products.

Functional Strategies

When developing this strategy, it is necessary to take into account the specifics of a particular enterprise.

There are several varieties:

  • Marketing . Acts as the main development plan. It allows you to collect useful information and form operational links with the external environment.
  • Financial . It implies the use of the entire volume of financial resources in order to implement the main strategy. The financial aspect allows you to identify the result of the work done and make the necessary adjustments.
  • Innovative . Actions are taken to maintain the image of the product. Non-standard directions are taken into account, which allow you to promote the organization. In addition, the company is trying to create conditions for the emergence of great potential.
  • Production . When choosing this tactic, the company needs to make adjustments in the product development process. Since production is the most important stage, its efficiency will determine the overall result of the business.

Necessary elements of a marketing strategy

A marketing strategy may contain various components. The choice of specific elements depends on the purpose of the business. However, there are 4 sections that are mandatory. Let's consider them in more detail:

Measurable and clear goal

Usually the goal corresponds to the selected business plan. Most often, it is associated with increasing sales volumes, capturing a niche and entering the market with a new product.

The SMART method can be used to identify the goal of a marketing strategy. Based on this concept, the goal must meet five basic criteria: be specific (Specific), measurable (Measurable), achievable (Attainable), comparable (Relevant) and limited in time (Time-bound). Thus, the goal of the strategy should, on the one hand, take into account the ambitions of the business, and on the other hand, align it with reality.

Business Positioning

It is necessary to determine what position and image in the mind of a potential buyer the organization wants to form.

There are 2 most common tactics: legends and prices. The first involves the sale of belonging to a class of products, and the second - prices in comparison with competitors.

Through positioning, the USP is developed, as well as the corporate identity of the organization and the cost.

Description of the range

The assortment matrix is a list of items that a brand offers. Almost any company has several offers designed for different audiences. However, this section is a weak point for small and medium businesses. This is especially true for retail. In the process of development of the organization, its assortment is in continuous rotation.

Marketing plan

Here are the fundamental elements for the development of the company and the product. These are the following components:

  • portrait of CA;
  • list of advertising channels;
  • strengths of the product;
  • description of the loyalty program.

Each point of the plan is associated with responsible persons and performance indicators (KPIs).

Stages of developing a marketing strategy

The process of creating a strategy can be divided into 3 stages.

Analytics

At this stage, the following areas are analyzed:

  • External environment . We are talking about the level of income in the region, inflation, business lending opportunities, changes in legislation, business support measures, global and local trends, the degree of technology development in the region.
  • Market . The degree of threat from substitute products is considered and the level of dependence on suppliers of raw materials, external logistics, and employees is determined. Problems with licensing, distribution, production are revealed. Analyze the size of the target audience and its features.
  • The state of the organization . For example, they use the SWOT analysis technique, where S are the strengths of the product and the advantages of the company, W are the disadvantages and weaknesses, O are the opportunities that can be realized, T are the likely external threats.
  • Competitors . The objects of research are: the features and capabilities of competitors, their products, the competitiveness of their product and the likely share of market capture.

As a result of the work done, a possible development plan is being developed.

Practice

This step involves doing the following:

  • Definition of "showcase" and pricing policy . It is necessary to consider the valuable qualities of the product that can interest potential buyers, as well as draw up an information policy plan (a way to convey information to the audience). In addition, you should determine the pricing policy, that is, the cost of the product in comparison with the offers of competitors.
  • Development of an action plan . It is about the methodology for achieving the set goals. For example, a company may focus on expanding its product range, increasing distribution channels, setting up an advertising policy, and so on. Plus, you should plan what to do in case of unforeseen situations. For example, if new competitors appear or the cost of raw materials changes dramatically.
  • Formation of a marketing plan . It is created on the basis of goals and an action plan. At the same time, the process of achieving goals is divided into several stages, each of which is assigned a separate indicator that allows you to evaluate the result.

Many people think that a plan and a strategy are one and the same in the context of marketing. However, this is an erroneous opinion. The strategy is intended to clarify the goals that the organization wants to achieve through marketing, and the plan defines the methodology for achieving these goals. Based on this, it becomes obvious that the marketing strategy of the company is primary in relation to the plan.

Control

You should always reveal the result of the work done. For example, did the advertising campaign that was carried out by the organization bear fruit, did the profit margins increase, did the presence of the product strengthen in specific sales areas.

The developed algorithm of action should be periodically checked for compliance with market fluctuations. If shortcomings are identified, the plan needs to be reconfigured.

Constant control over all areas of marketing makes it possible to strictly adhere to the vector developed as part of the marketing strategy.

Impact of business specifics on marketing strategy

The implementation of a marketing strategy in trade involves the implementation of a continuous systematic analysis of market needs. The results of the research should help in creating products that a certain segment of the target audience needs. Such products have specific characteristics that distinguish them from competitors' products. In addition, they create a competitive advantage.

Marketing strategies in construction provide a competent systematization of production, cost reduction, proper use of resources, improvement of labor productivity indicators, as well as the ability to adapt to the market with high competition. They define the scope of the company in the market, help to coordinate the marketing elements of each department of the organization and increase the efficiency of the use of available resources.

Marketing strategies in the field of finance allow you to find the most effective ways and directions for the implementation of relevant products. Moreover, they provide an opportunity to develop a methodology for diversifying the company's services, as well as to develop an anti-crisis policy.

Evaluation of the effectiveness of the marketing strategy

By monitoring the results, you can understand how appropriate the chosen marketing strategy was. Plus, it allows you to assess the level of implementation of the tasks that the organization has set for itself. To this end, the following areas need to be explored:

  • Sales of products . The sales channels and the demand of the target audience for goods and services are considered. Strong and weak markets are identified, as well as new places of sale of products and sales volumes. Experts analyze the factors that affect sales activity.
  • The ratio of the volume of orders to the income received . Such a study helps to find the maximum market effect from the sale of products. The average bill for the market and a specific category of goods is revealed.
  • Satisfaction of the main group of buyers . The level of demand and sales volumes of goods to the basic segment of consumers are analyzed. Based on the provisions of the 20/80 law, meeting the needs of the target group allows the organization to derive the greatest benefit.
  • Market shares . The metrics of the ratio of sales volumes to the distribution of goods by market segments are studied. Such an analysis makes it possible to identify the most important product groups, thanks to which the organization receives the main income in a niche.
  • Costs and profits . Ways to reduce costs are found and the most popular products on the market are identified in terms of income.

Mistakes in developing a marketing strategy

  • Over-focused on the actions of the industry leader

    • If an organization tries to imitate the market leader, then it begins to implement a similar advertising campaign, develops similar promotions, changes the characteristics of its product to the standards developed by the dominant enterprise. In some cases, companies are so focused on industry leaders that they copy everything, including branding details.

    However, this approach is often ineffective. It is better to focus on adapting your own marketing operations to the target audience, focusing on its preferences. A competitive marketing strategy should be developed.

  • Idealizing Superstrategies

    • Do not complicate the tactics of development. This is especially true for small organizations. Remember that successful companies are based on the simplest ideas. It is important for the buyer to understand why your product is better than others, where it can be purchased and what its characteristics are, but nothing more. Overly complex strategies often lead to negative consumer reactions. In addition, their implementation requires a large investment of money and time.

  • Inattention to the mistakes made

    • Analytics is the most important component of success. It is necessary to evaluate the results of the work done in the field of marketing. Identifying the mistakes made is the most rewarding experience that allows you to work out the right decisions in the future.

  • Lack of development

    • It is necessary to adapt to market changes and take into account emerging trends. Otherwise, the buyer will lose interest in the product, and the company will not be able to compete with progressive entities.

  • Disregard for tradition

    • Classical marketing has stood the test of time, so brochures, billboards, radio and print media advertisements can be used as a means of delivering information.

  • Ignoring the visual component

    • If the appearance of the company leaves much to be desired, then marketing activities may not bring the intended effect. Shabby banners and scratched storefronts have a negative impact on the image. For this reason, you should pay attention to all the details of the appearance, including the clothes of employees, the design of shops, etc.

  • importunity

    • Some organizations begin to annoy their audience due to too frequent calls, SMS mailings, spam, etc. Communication with the consumer should be expedient and beneficial for both parties. Otherwise, you risk losing customer loyalty.

  • Ignoring competitors

    • On the one hand, the company needs to focus on its activities, and on the other hand, it needs to watch its competitors. Remember that the buyer can at any time compare your prices with prices in other stores. At a minimum, you need to monitor the actions of your closest competitors.

  • Inattention to the opinion of the audience

    • If your customers do not like something and they openly talk about it to other people, then no marketing activities will be effective. Therefore, you should pay attention to customer reviews.

5 Examples of Effective Marketing Strategies

Bounty

Paper towel company Bounty has moved away from classic advertising techniques and focused on more consumer-friendly options. They installed oversized spilled coffee cups, a large melting ice cream and a modest city light with a picture of a roll of towels nearby.

Such guerrilla marketing is easy to remember. The company has achieved a closer interaction between the target audience and the brand than if it had used classical advertising methods.

Spotify

Based on the experience of this company, it becomes clear how you can keep users from switching to similar products. The now popular service decided to focus on the convenience and practicality of the application interface.

Beautiful design, lots of features and the availability of a free trial version are the key factors that provided such a huge influx of users (almost 300 million), half of which use the application on a paid basis.

Do you want to manage the promotion of your business? Our marketing course will teach you the art of attracting customers, how to launch advertising campaigns and analyze their effectiveness. Under the guidance of professionals, you will prepare for a successful career in the world of digital marketing.

Spotify's tactics are based on consumer comfort. To this end, the company uses artificial intelligence, which finds new tracks based on the tastes of the user.

gopro

The organization was aimed at creating an information space around the brand and attracting a loyal target audience to it. A company that produces video cameras for extreme activities uses customer materials in its posts on social networks. As a result, the brand has become very popular.

In addition, the company has developed a video editor that automatically applies a watermark with the corresponding logo to the video sequence. The secret of success is simple: the user publishes content and thereby advertises the brand.

Plus, GoPro periodically organizes contests, in every possible way encouraging customers for unusual videos.

Sephora

An analysis of the marketing strategy of this brand showed that the organization decided to retain customers through a profitable affiliate program. A leveling system has been introduced to divide users into groups. This formed the uniqueness of the brand. About 80% of purchases are made by existing members of the loyalty program, which determines the stability of the enterprise.

Since almost all customers use mobile devices to place orders, stores began to provide free Wi-Fi and a branded application with a beautiful and understandable interface.

Vogue

The essence of the strategy of this organization is to form in the client a sense of belonging to the luxurious life of the magazine. VIP users can contact the editors, fashion leaders, beauty experts. They are provided with insider thematic content.

The popularity of the publication and its online version is increasing due to invitations to private entertainment events where customers can become guests of honor, as well as discounts on the most interesting cultural programs.

Such a loyalty program was created with the help of a rigorous marketing analysis. Customer incentives have a positive impact on the number of subscriptions.

Product demonstrations can be organized in a classic way or be very unusual. Users will tell others about your products if they are interested in you.

If you want to develop a marketing strategy for an enterprise, then you should focus on the specifics of the target audience. Use the natural desires of users for your own purposes and analyze the results of your activities.

Comments