MARKETING STRATEGY

is a process that can allow an

organization to concentrate its limited
resources on the greatest opportunities
to increase sales and achieve a
sustainable competitive advantage.

this should be centered around the key
concept that customer satisfaction is the
main goal.
is a method of focusing an organization's
energies and resources on a course of
action which can lead to increased sales
and dominance of a targeted market
niche
combines product development,
promotion, distribution, pricing,
relationship management and other
elements; identifies the firm's marketing
goals, and explains how they will be
achieved, ideally within a stated
timeframe.
Basic theory:
Target Audience
Proposition/Key Element
Implementation
Tactics and actions
A marketing strategy can serve as the
foundation of a marketing plan. A marketing
plan contains a set of specific actions required
to successfully implement a marketing
strategy
A strategy consists of a well thought out series
of tactics to make a marketing plan more
effective. Marketing strategies serve as the
fundamental underpinning by marketing plans
designed to fill market needs and reach
marketing objectives. Plans and objectives are
generally tested for measurable results.
A marketing strategy often integrates an
organization's marketing goals, policies, and
action sequences (tactics) into a cohesive
whole.

Similarly, the various strands of the strategy ,
which might include advertising, channel
marketing,internet marketing, promotion and
public relation can be orchestrated.
Marketing strategies are dynamic and
interactive. They are partially planned
and partially unplanned.
Types of strategies
1. Strategies based on market dominance
- In this scheme, firms are classified based on
their market share or dominance of an industry.
Typically there are four types of market
dominance strategies:
Leader
Challenger
Follower
Nicher
2. Porter Generic strategies
- strategy on the dimensions of strategic
scope and strategic strength. Strategic scope
refers to the market penetration while strategic
strength refers to the firms sustainable
competitive advantage. The generic strategy
framework (porter 1984) comprises two
alternatives each with two alternative scopes.
These are Differentiation and low-cost
leadership each with a dimension of Focus-
broad or narrow.

Product Differenciation (broad)
Cost Leadership (broad)
Market segmentation (narrow)
3. Innovation strategies
- This deals with the firm's rate of the new
product development and business model
innovation. It asks whether the company is on
the cutting edge of technology and business
innovation. There are three types:

Pioneers
Close followers
Late followers
4. Growth strategies
- In this scheme we ask the question, How
should the firm grow?.
- The four main growth strategies defined by
the Product/Market Ansoff matrix:
5. Marketing Warfare Strategy
- This scheme draws parallels between
marketing strategies and military strategies.

Diversification
is a form of corporate strategy for a company.
It seeks to increase profitability through
greater sales volume obtained from new
products and new
markets.
This can occur either at:
- the business unit level, it is most likely to
expand into a new segment of an industry that
the business is already in.
- the corporate level, it is generally very
interesting entering a promising business
outside of the scope of the existing business
unit.
Different types of diversification strategies
Concentric diversification -
This means that there is a technological
similarity between the industries, which means
that the firm is able to leverage its technical
know-how to gain some advantage.
- It also seems to increase its market share to
launch a new product that helps the particular
company to earn profit.
Different types of diversification strategies
Horizontal diversification -
The company adds new products or services
that are often technologically or commercially
unrelated to current products but that may
appeal to current customers.
- In a competitive environment, this form of
diversification is desirable if the present
customers are loyal to the current products and
if the new products have a good quality and are
well promoted and priced.
- This strategy tends to increase the firm's
dependence on certain market segments
Different types of diversification strategies
Conglomerate diversification (or lateral
diversification)
- The company markets new products or
services that have no technological or
commercial synergies with current products
but that may appeal to new groups of
customers. -The main reasons of adopting
such a strategy are first to improve the
profitability and the flexibility of the company,
and second to get a better reception in capital
markets as the company gets bigger. Even if
this strategy is very risky, it could also, if
successful, provide increased growth and
profitability.
Risks
Diversification is the riskiest of the four
strategies presented in the Ansoff matrix and
requires the most careful investigation.
Going into an unknown market with an
unfamiliar product offering means a lack of
experience in the new skills and techniques
required.
Therefore, a firm should choose this option
only when the current product or current
market orientation does not offer further
opportunities for growth.
The four main growth strategies defined by the
Product/Market Ansoff matrix:
In order to measure the chances of
success, different tests can be done:
The attractiveness test: the industry that
has been chosen has to be either
attractive or capable of being made
attractive.
The cost-of-entry test: the cost of entry
must not capitalize all future profits.
The better-off test: the new unit must
either gain competitive advantage from its
link with the corporation or vice versa.
5. Marketing Warfare Strategies
- are a type of strategies, used in business and
marketing, that try to draw parallels between
business and warfare, and then apply the
principles of military strategy to business
situations, with competing firms considered as
analogous to sides in a military conflict, and
market share considered as analogous to the
territory which is being fought over.
5. Marketing Warfare Strategies
One persons gain is possible only at another
persons expense. Success depends on battling
competitors for market share.

are a type of marketing strategy that uses
military metaphor to craft a businesses
strategy

"Generally, he who occupies the field of battle
first and awaits an enemy is at ease, he who
comes later to the scene and rushes into the
fight is weary." by: Sun Tzu
Marketing Warfare Strategies:
Offensive marketing warfare strategies are used
to secure competitive advantages; market
leaders, runner-ups or struggling competitors
are usually attacked.

* Frontal attack - A direct head-on
confrontation
* Encirclement strategy -Envelop the
opponents position
* Leapfrog strategy - Avoid confrontation by
bypassing enemy or competitive forces.
Marketing Warfare Strategies:
Defensive marketing warfare strategies are
used to defend competitive advantages; lessen
risk of being attacked, decrease effects of
attacks, strengthen
position.
* Pre-emptive strike - Attack before you are
attacked
* Position Defense - The erection of
fortifications
* Mobile defense - Constantly changing
positions.
* Counter-offensive - When you are under
attack, launch a counter-offensive at the
attackers weak point
Marketing Warfare Strategies:
Defensive marketing warfare strategies

* Strategic withdrawal - Retreat and regroup so
you can live to fight another day
* Flank positioning - Strengthen your
flank

Flanking marketing warfare strategies Operate
in areas of little importance to the
competitor.

Marketing Warfare Strategies:
Guerilla marketing warfare strategies Attack,
retreat, hide, then do it again, and again, until
the competitor moves on to other markets.

Deterrence Strategies Deterrence is a battle
won in the minds of the enemy. You convince
the competitor that it would be prudent to keep
out of your
markets.
Sequential Strategies A strategy that consists
of a series of sub-strategies that must all be
successfully carried out in the right order.
Marketing Warfare Strategies:
Alliance Strategies The use of alliances and
partnerships to build strength and stabilize
situations.


Cumulative strategies A collection of seemingly
random operations that, when complete, obtain
your objective.
Companies typically use many strategies
concurrently, some defensive, some offensive,
and always some deterrents.
According to the business literature of the
period, offensive strategies were more
important that defensive one
Defensive strategies were used when needed,
but an offensive strategy was requisite
Only by offensive strategies, were market
gains made. Defensive strategies could at best
keep you from falling too far behind.
The marketing warfare literature also
examined leadership and motivation,
intelligence gathering, types of marketing
weapons, logistics, and communications.