In this article, we will study the marketing strategy. Strategy is required for all activities, from sales to marketing or macro operations of the government. It does like to answer why the marketing plan and how?
This section includes the following elements:
Development of a mission statement
Statement of objectives
Strategy and tactics to accomplish the objectives
Your mission statement is a formal commitment and focus for the business. It should explain to customers concisely what the nature of your business is and where you are going, and also provide a motivational tool for employees. It should be aspirational, something to strive for, yet obtainable and relevant. Once this has been defined it should form the focus for your business strategy.
A vision statement is a more long term, ideal-world statement which outlines where you would like to take the business in the long run.
Combined with the mission statement, your objectives should be the key statements that drive your business. The most successful goals follow the SMART acronym. Specific, measurable, achievable, realistic and time bound.
What do you want to achieve by the end of this year?
Where do you want to be in one, five, ten years?
This question is seem to ask you Who you are and how you want to be? Objectives must be in answered in S.M.A.R.T. For example, 'sell 600 units in the next year' or 'increase customer retention by 20%'.
SELECTING A SUITABLE STRATEGY
DEVELOPING A STRATEGY FOR GROWTH - THE ANSOFF MATRIX
Most businesses need to grow, and the Ansoff Matrix (below) is a method of determining the best course of action if growth is your priority.
The Ansoff matrix
Increasing market share in a current market with a current product.
Aggressive pricing policy (see 'cost leadership' in Porter's model)
Increasing marketing spend
Taking existing products into new markets
Finding a new use for an existing product
Expanding the distribution network
Strategic partnerships in international markets
Developing a new product for a market that you have already entered
Creating a range of similar products, for example, shaving foam if you are already manufacturing razors
Developing a new product for a completely new market
Product research and development
DEVELOPING A PRICING STRATEGY
Once you have determined the product and market you want to be in, the next problem will be setting a price. Porter's model discusses three strategies for competitive advantage based on price.
Three generic strategies for competitive advantage - Porter's model
Cost leadership: A good quality product at a lower price than the competitors
Differential strategy: A product or service which is perceived as unique within a particular market
Focus strategy: Delivering focused attention to a particular segment to deliver service which competitors cannot compete
DETERMINING WHICH PRODUCTS TO INVEST IN
If you have a range of products, it is likely that some will do better than others. The Boston Consultancy Group matrix is a method of determining which to invest in, and which to drop, shown below.
Stars: High growth products with a strong market presence. Probably need high investment to maintain position.
Cash cows: Low growth products with a high market share. Probably don't need much investment, but require management to maintain profitability.
Question marks: Products which have potential, but may require investment to yield decent profits.
Dogs: There are rarely worth investing in. Dogs should at least break even to be retained.
TACTICS - THE MARKETING MIX
The marketing mix is a selection of customer focused business elements which work together as a toolkit to market your product or service. The tactical section of a marketing plan summarises how you intend to use each element of the marketing mix, which can be summarised in seven 'Ps' as shown in the illustration below.
Actually, from Philip Kotler on Wiki the Father of Modern Marketing, Marketing Mix is just for 4 Ps, over the time, it has been developed and divided into some more Ps are depend on which Ps are as important as the other in an Entrepreneur
To be continued