What Major Elements Comprise a Good Marketing Strategy?
A marketing strategy is made up of distinct but interrelated parts. One of these involves the selection and evaluation of target markets, one or more groups of consumers who are especially likely to buy the company's products. Other elements of the strategy give direction for how the firm will develop and use its marketing mix, including product, promotion, pricing and place (distribution). Also known as the "four Ps," these are the basic tools available to marketers to stimulate sales and build brand loyalty.
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Significance of Target Markets
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Selection of target markets is a fundamental component of an overall marketing strategy. It begins by identifying consumers with high potential to respond to the firm's marketing mix. Next, marketers estimate the size of these buyer groups and assess their key personal and behavioral characteristics.
Considerations in Product Strategy
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Product strategy involves choices related to the features, functions, benefits and image of a market offering. This can be a tangible good, like a refrigerator, or a service, like health care. Even a seemingly uncomplicated product like a bar of soap has multiple strategic dimensions. For example, marketers must select the cleaning agents, scent, color and packaging most likely to stand out from the competition and appeal to the soap's target customers.
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Considerations in Promotion Strategy
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A product may be promoted using any one or some combination of marketing communication devices, including advertising, sales promotion, public relations and personal selling. Social media are also being used with increasing frequency. Specific promotion choices will depend on the firm's broader marketing goals. For example, sales promotion is an effective way to boost short-term sales. Advertising is usually a longer-term investment in brand visibility.
Considerations in Pricing Strategy
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Price is more than the amount of money a buyer is asked to exchange for a product. For example, a high price may be used to convey status; a low price can help discourage competition. Price-setting is a particularly important strategic choice when introducing a new product or entering a new market.
Considerations in Place Strategy
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Place--the marketing term for distribution--is about making goods available to target consumers when and where they want those products. Marketers strive to maximize convenience and accessibility for shoppers within a cost-efficient network of wholesalers and retailers. Increasingly, place strategies are being designed to seamlessly integrate online distribution with the operations of traditional stores.
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References
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