The Marketing Strategy of an Organisation & Its Effectiveness
An organization's marketing strategy is the key to its effectiveness in satisfying customer needs and outperforming the competition. The strategy sets goals -- in terms of revenue, profit, market share or other metrics -- and maps out a detailed plan for using the tools in the marketing mix: product, promotion, price and place.
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Customers
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Selecting a core group of customers, called a target market, is at the heart of a marketing strategy. These are buyers in the product category who are likely to choose the firm's brand over alternatives. Target markets are often identified based on personal characteristics like age or sex, or distinctive lifestyles like frequent travelers or fitness buffs. Marketers maximize the efficiency of their communication and distribution efforts by tailoring them to the preferences of the target.
Competition
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A marketing strategy identifies the organization's competitive advantages and its prospects in a changing marketplace. These insights arise from a situation analysis, also known as SWOT, which assesses internal strengths and weaknesses together with external opportunities and threats. For example, a SWOT analysis could show that the firm is better positioned than competitors to enter an emerging foreign market -- an external opportunity -- because of the strength of its global distribution network.
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Product and Promotion
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Effective implementation of a strategy depends on the marketer's skillful use of the tools in the marketing mix. Product involves decisions about how the market offering is designed and packaged. For example, a common dilemma for clothing marketers is whether to emphasize style or comfort. Promotion is focused on communicating the product's benefits to its target market. In most consumer goods categories, a promotion strategy combines advertising, personal selling, sales promotion or public relations.
Price and Place
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Consumers use the price of an offering as a measure of its value. Marketers must be careful to set prices low enough to be viewed as reasonable compared to competition, but high enough to reinforce their brand's distinctive benefits. Place, or distribution, is about making the product available to target buyers when and where they want it. Low-cost, frequently purchased items like toiletries are typically distributed through many retail outlets, while luxury goods may be for sale in only a few specialty stores.
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