Free Essay: Marketing strategy is important for a company to stay competitive in the industry. A marketing strategy for a company may range from highly specialized to very simple depending on the company that uses it, and it is vital that business owners come up with effective strategies that will help their companies stay on top.

Marketing is one of the most important segments of any business. Marketing strategy is a ‘master plan’ based on research and is devised to produce profit in a successful way in a competitive business environment. The marketing strategy determines how a company will distinguish itself in a changing business world. The marketing strategy helps in establishing links with the internal and external stakeholders of the company. It acts as a distraction from any competitive pressures which can thwart growth.

What Is Marketing Strategy ?

A marketing strategy is a comprehensive plan that is formulated in order to help the organization achieve its marketing objectives in a practical and effective manner. In addition to providing a blueprint for achieving these marketing objectives, it provides a road map to follow. As a part of a marketing plan, it is considered to be one of the building blocks. Based on extensive marketing research, it is designed based on the results of that research. Having a marketing strategy helps an organization to focus its scarce resources on the best possible opportunities so that sales can increase in order to maximize the return on investment.

In order to design a marketing strategy, the following steps must be taken:

  1. Selecting the target market: Choosing the target market is the first step to understanding to whom your organization wants to sell its products. An organization may not be able to profit from all of the market segments available to it. Obviously there are some market segments which guarantee quick profits, and there are also certain market segments which may have great potential, but there may be a lot of barriers to entry in those segments. There is a need for the organization to make a careful choice when it comes to this. As part of the marketing research process, it is important to conduct a detailed analysis of the characteristics of the buyers and the specific needs of those buyers within the target market.
  2. Gathering the marketing mix is the process of defining how the organization proposes to market its products and services. It is important for the organization to combine the four P’s of marketing in a manner that is appropriate to their situation. Gathering the marketing mix is one of the most important aspects of the marketing process. It is necessary to make a number of decisions, such as –
  • In what situation would it be most appropriate to use a mix of the four P’s according to the four P’s
  • Which distribution channels are available to you, and which one is the best to use?
  • How should the target market be developed in order to achieve the best results?
  • What is the best way to design the price structure?

Importance of Marketing Strategy

What Is the Significance of Marketing Strategy Essay?
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Establishes Effective Distribution

Once you know what product features you’ll offer, who your target customer is and what your price points will be, you can select where you want to sell to maximize your marketing effectiveness. Younger customers will be more likely to shop using a smartphone or on a website, paying with PayPal or a credit card. Older customers might prefer to shop at retail outlets. If your market research shows you need to be in retail stores but you don’t have a sales force, you can use a wholesaler or distributor.

Plan the nature of products and services

Market research and study is a significant part of marketing strategy and this aspect helps management of the company to plan the features, and unique selling propositions of the products and services that are in pipeline or are in the launch planning phase.

There are thorough research and study on the current market scenarios, what do the competitors offer, government policies, the factor of profitability, and other such changing dynamics that can affect the sales and operations of the products and services. Hence, it is crucial for the company and its promoters to pay due attention to the Importance of Marketing Strategy.

 Plan the marketing budgets

Every department of the company right from the marketing, sales, HR, and others are given annual budgets by the management that needs to be spent in the benefit of the company.

Having a planned and aligned marketing strategy makes sure that the allocated budgets don’t go haywire by spending on the promotional activities that have low return on the investments plus there is an optimal use and allocation of the marketing budgets on the marketing tools and promotional tactics that helps attaining not only marketing goals but the overall business goals and objectives too.

Creative Edge

Next in the line of the Importance of Marketing Strategy is that the brand and all overall marketing and promotional activities get an edge of creativity as the brand cynosures and the marketing departments liaise with the design agencies, media planners, PR agencies, and other such vendors that dedicatedly understand the nature of the brand and its offerings and come up with the unique, out-of-the-box, and exclusive ideas that give the brand a creative edge and helps curating a distinguished personality in the market.

Assists with Marketing Communications

Your market research will help you create your brand, or image you want to establish about your business. Without marketplace research and a strategic marketing plan, you might respond to solicitations from advertising salespeople on an individual, reactionary basis, sending messages that don’t fit in with the brand identity you’ve created based on your product development efforts. A marketing strategy lets you determine if a particular magazine, radio station or website fits into your selling plans.

Organizational Impact and Communication

When you have a marketing strategy, your departments can better work with each other, because they are all working from the same plan. For example, your advertising people will talk with your product development people to determine what message you should send about your benefit. Your sales people will talk with the people responsible for managing your image to determine if they can offer discounts, coupons or rebates without damaging your brand.

Effective distribution plan

Once the management understands and grasps the essence and Importance of Marketing Strategy, it can have an effective distribution plan in place. With the introduction of online selling and the growing impact of social media the company needs to have a wide network of distribution as the young generation prefers to buy the products and services online directly from the company website or through its online promotional partners.

This is different to the middle-aged or older generation who still believes in indulging and finalizing the purchase by visiting the physical store our outlet of the brand. The company needs to march ahead with the latest advancements and the evolving tastes and preferences of the customers of all age-groups.

Optimal pricing

With the competitive research and in-depth study of the market dynamics along with the spending capacity of the target market, the marketing strategy helps the company to arrive at an optimal pricing plan for its products and services that is as per the market yardstick, competitive in nature, and helps the company to generate higher sales and profits. This point holds a lot of significance in understanding the Importance of Marketing Strategy.

The overall growth of the firm

Marketing strategy facilitates enhanced brand value, increased market share, competitive advantage, higher sales, and elevated profits that result in the overall growth of the firm drawing a larger picture. It helps the company to carve a niche in the market with a distinguished brand identity and the offerings of the products and services that are planned with unique attributes and features.

What Are the 4 Types of Marketing Strategies?

What Is the Significance of Marketing Strategy Essay?
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Product, price, place, and promotion are the four Ps of the marketing mix. These are all examples of what is known as a “marketing mix,” which refers to the combination of tools and methodologies marketers use to achieve their marketing objectives. 

A formal definition of the 4 Ps was first formulated in 1960 by E. J. McCarthy who outlined the concept in his highly influential text, Basic Marketing, A Managerial Approach, published in 1960. It has been noted by McCarthy that while the text of the book has a similar structure to that of the traditional texts, it is different in terms of its approach. 

There is little doubt that McCarthy’s novel approach was influenced by the still-recent “marketing mix” concept, which Harvard Business School professor Neil has been promoting lately. H. Borden popularized in the 1950s. Interestingly enough, Borden himself was influenced by a 1948 study published by James Culliton in which the author equated business executives with “artists” or “mixers of ingredients”, which Borden was said to have been influenced by. As opposed to using the same approach for every situation, Culliton and Borden recognized that successful executives actually mix different approaches based on the variable market conditions in order to achieve success. 

According to McCarthy, the four P’s of marketing consist of product, place, price, and promotion, in order to assist marketers in designing plans that are relevant to the dynamic social and political realities of their time and the target market they are targeting. As McCarthy first wrote when he published his book, the purpose of the four Ps is still the same today: “developing the right product, making it available at the right place, at the right price, and at the right promotion in order to meet the needs of target consumers while still meeting the objectives of the company”. 

There is a dynamic relationship between the four Ps. Each of the elements in a strategic marketing plan should be considered equally important, rather than one taking precedence over the other. 

Promotion

You advertise your product or service through promotion. Your product will be promoted with an effective marketing campaign that resonates with your target audience. 

Your product can be promoted in a variety of ways. Traditional marketing methods include word-of-mouth, print advertisements, and television commercials. As a result of the digital age, you have even more marketing channels at your disposal, such as content marketing, email marketing, and social media marketing.  

 When promoting your product, consider the following questions: 

  • Is there a best time to reach out to your target audience? 
  • Are there any marketing channels that are most effective for your target audience? 
  • How can you make your advertising more persuasive to your target audience?

Price 

A product or service’s price is the cost of the product or service. 

When it comes to marketing a product or service, it is crucial to pick a price that will simultaneously be able to appeal to the target market and achieve the business’s goals at the same time. There is no doubt that the pricing of a product can have a significant impact on how successful it is in the long run. It is important to remember that, for example, if you price your product too high for your targeted audience, then very few of them will likely purchase your product. Similarly, if your product is priced too low, some might pass it up out of concern that it might be of inferior quality and reduce your profit margins. 

Your target audience and their willingness to pay for your product will help you determine a successful price. When considering your product’s price, you might ask yourself:

  • How much do your competitors’ products cost? 
  • Who is your target audience and what is their price range? 
  • How much is too much for your audience? Is there a price that is too low? 
  • What is the best price for your target market? 

Product

It is the product that is being marketed to the target audience which is the good or service that is being sold. 

In general, successful products either fill a need that is not currently being met by the marketplace or provide a novel customer experience that creates demand for the product. There is no doubt that the original iPhone filled a market need for a simplified device that paired a phone with an iPod, and the chia pet provided a humorous experience that consumers found to be completely unique to the market.    

When you are working on a product, it is essential to think about your target audience and their particular needs as you are developing the product. The following are some questions that should be considered when working on a product: 

  • What is your product? 
  • What is the function of your product? Would you say that the product provides a unique experience or meets an unmet need? 
  • Can you tell me who the target audience is for your product? 
  • In what ways does your product differ from those offered by your competitors? 

Place

In terms of place, it refers to where you sell your product and how you distribute it to your customers. 

A key factor in reaching your target audience is finding the right place to market and sell your product, a factor that is similar to determining the price of your product. It is likely that you will not meet your sales target if you have your product displayed in a place where your target customer does not visit-whether online or offline-during the period of time you have set. When you are in the right spot, you will be able to connect with your target audience and set yourself up for success. 

Imagine, for example, that you are selling a pair of athletic shoes that you have designed. You want to market your product to athletes in their early twenties to late thirties, so you decide to advertise it in sports magazines and sell it in specialty athletics stores that cater to athletes in their early twenties to late thirties. You are able to target your marketing efforts in a specific place that will be most effective for your marketing mix if you choose to focus on sports stores rather than shoe stores in general.  

You should consider the physical or digital places that your target audience shops and consumes information in order to determine where the best place to market and sell your product is. The following are some questions to consider when making your decision: 

  • Is there a place where you will sell your product?
  • Do you know where your target audience shops? 
  • Are there any distribution channels that you can use to reach your target market most effectively? 

What Are the 5 Marketing Strategies?

What Is the Significance of Marketing Strategy Essay?
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PEOPLE

In terms of the people element, it refers to your customers, yourself, and your staff members. Whenever you are thinking about growing your business, you need to take into account both your staff and your customers. As part of it, you must understand what your customers’ needs and wants are, set targets, and measure your level of customer service to make sure that you can attract and keep them as loyal customers as possible.

You will also need to consider staff training so that they are capable of providing the best experience for your customers and meeting their expectations.

PROMOTION

A marketing campaign refers to all the activities and methods you use in order to reach out to your target market in order to promote your products/services to them. As part of this process, sales, public relations, direct marketing, advertising, sponsorship, and social media are all involved.

Due to the fact that promotion costs can be significant, it is sensible to conduct a return on investment (ROI) analysis when deciding whether to conduct a promotion. As a first step, you need to figure out who your target market is, what media they consume, what the cost of that media will be, how many more sales you need to cover your investment, and how you will gather the information that shows how well the promotion has worked.

PLACE

Place, then, refers to how you ensure that your product or service is delivered to your customers at the right time, at the right place, and in the right quantity at the right place. It includes distribution channels (e.g. via a shopfront, an online store, or a distributor), location, logistics, service levels, and the extent of market coverage included in the distribution network.

For instance, if you are thinking about expanding your business online, then you will have to consider how your customers use the internet, if they will feel comfortable buying your goods online, and if they will be willing to pay shipping costs in order to get them.

If you have been looking for ways to grow your business, you might want to consider changing or expanding the way in which you sell your products and services. In the case of a homewares distributor, for instance, you might want to consider setting up a new store in a different location or offering franchise opportunities to your existing customers.

PRODUCT/SERVICE

This refers to the whole range of products or services you are offering to your customers as a whole. There are many factors to consider when selecting a product, including functionality, branding, packaging, service, quality, appearance, warranty terms, etc.

When thinking about your product, you should consider its key features, benefits, as well as the needs and wants of your potential customers. In the case of a food manufacturer, you might decide to add some new flavours to your range in order to expand the number of products you offer.

PRICE

There is also a price element, which refers to the way in which you set the price for your products or services. In order for it to be accurate, it should include all the components that make up your total cost, such as the advertised price, any discounts, sales, credit terms or other arrangements for payment.

You should also consider the position of your business in the market when setting your pricing. For example, if you advertise your business as a budget rental car service, then your pricing should reflect the choice you make. Likewise, if you are a premium food product, then the price should be higher than other lesser quality products in order to reflect the better packaging and the quality of ingredients you are putting into your product.

Conclusion

For any organization to grow and sustain it needs strategies. Marketing strategies help businesses to grow and sustain in the market. Marketing strategies help the organizations to gain competitiveness as well as viability in the market, as it has been observed that product, pricing and promotion are key determinants of marketing strategy.

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