In the most basic form, marketing strategy is a plan to sell services or products in a way that renders long-term profitable growth. It is like a road map for any brand guiding the brand where to go and what’s the best route to get there. Successful companies use strategy to deliver their offerings to the customers that will have meaningful impact.
“Marketing Strategy is defined as an organization's strategy that combines all of its marketing goals into one comprehensive plan".
It offers a blueprint for achieving these marketing objectives. Marketing strategy is the basic building block of a marketing plan. A good marketing strategy requires in-depth market research and focus on the right product mix to attain the maximum profit potential and uphold the business.
A marketing strategy helps a brand to focus on its insufficient resources on the best possible opportunities so as to amplify the sales.
A marketing strategy is planned by:
1. Selecting the right target market: Choosing the target market here means the potential buyers of specific products or services of an organization. Not all the market segments are beneficial to an organization. While certain market segments can guarantee rapid profits, certain others may have great potential with high barriers to entry. Hence, a careful pick has to be made by the organization. For this, the organization needs to carry out in-depth marketing research to identify the traits and particular needs of the buyers and the particular in the target market.
2. Collecting the marketing mix: Gathering the marketing mix means how the organization intends to sell its products or services. For this, the organization should gather the four P’s of marketing (discussed below) in appropriate combination. This is an important section of marketing job. Various decisions have to be made like -
- The most appropriate mix of the four P’s in a particular situation.
- Availability of various distribution channels and which one should be used.
- Appropriate developmental strategy to be used in the target market.
- Designing the right price structure.
The Marketing Mix, also known as “The Four P’s,” that lays the building blocks of a Marketing Strategy.
- Product - Products and their packaging must sustain the position of a brand. Design and functionality need to be considered carefully and developed to communicate product profits.
- Price- Organizations selling a premium product can control above average prices. Brands who want to be recognized as price leaders should offer lower prices to reap a competitive edge.
- Place - The choice of distribution channel must be consistent according to the brand’s positioning. This means that a high-end product must be linked with a high-end distribution channel to strengthen product value.
- Promotion - Promotion strategy includes the brand’s USP into all of its messaging. Organization should include all of the brand’s marketing objectives and develop particular tactics that will render against them. This includes recall of key communication point, brand awareness, shifts in preference, and more.
Significance of Marketing Strategy
- It offers an organization a competitive edge.
- Marketing Strategy aids in developing products and services with best profit making potential.
- These help in discovering the areas affected by brand’s growth thereby helping in creating an organizational plan to satisfy customer needs.
- It helps in fixing the right price for organization’s products and services based on information gathered by market research.
- It helps a brand to make the best utilization of its resources to offer a sales message to its target market.
- It helps to set the advertising budget in advance, and develop a method determining the scope of the marketing plan.