Marketing Strategy Factors
A marketing strategy maps out a route for a company to use to pursue its objectives, such as profits, revenues or market share. One fundamental factor is the identification of a target market, one or more groups of consumers who are especially likely to choose the firm's brand. Marketing strategy specifies the tactics to be used in reaching those consumers.
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Target Market
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Target market selection is the factor most pivotal to the development of a marketing strategy. That is because each tactic is then chosen to appeal to these prospective buyers. Often, target consumers are selected based on their demographic characterisitics, such as age, sex, income or marital status. It can also be effective to identify a target's distinctive lifestyle or personality profile. For example, a resort hotel could aim its offering at affluent couples who enjoy sports and are frequent vacationers.
Product Tactics
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Product tactics involve the features, functions, benefits and other dimensions of a market offering. These tactics, described in detail in the marketing strategy, are customized to satisfy the needs and wants of target consumers. For example, a toothpaste aimed at children could be packaged in a brightly-colored tube and feature a sweet taste along with cavity protection. A brand of jeans targeted to mature buyers might offer stretchable denim and more conservative styles than teenagers' brands.
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Promotion Tactics
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Another implementation factor specified in the marketing strategy is how the firm's product will be promoted to target consumers. Among the tools and techniques most commonly used are advertising, sales promotion, personal selling, public relations and direct marketing. Depending on strategic goals, one promotion tactic may be more suitable than another. For example, advertising is better than personal selling at boosting widespread awareness or improving a brand image, while sales promotion is especially effective at creating a short-term incentive to buy.
Price and Distribution Tactics
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Price is a key factor in marketing strategy because it enables consumers to judge the product's benefits in comparison to what it costs them. It may also be used to further a specific strategic goal. For example, a high price communicates prestige, while a low price can discourage competition. Distribution tactics specify how the product will be made available to buyers. Marketers may choose to stock their brand in as many outlets as possible, or to limit distribution to a few specialty stores or to their own website.
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References
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