Marketing Strategy Process

The marketing strategy analysis, planning, implementation, and management process that we follow is described in Exhibit 2.5.

Strategic Situation Analysis

Marketing management uses the information provided by the situation analysis to guide the design of a new strategy or change an existing strategy.

Market Vision, Structure, and Analysis. Markets need to be defined so that buyers and competition can be analyzed. For a market to exist, there must be (1) people with particular needs and wants and one or more products that can satisfy buyers’ needs, and, (2) buyers willing and able to purchase a product that satisfies their needs and wants.

Segmenting Markets. Market segmentation looks at the nature and extent of diversity of buyers’ needs and wants in a market. It offers an opportunity for an organization to focus its business capabilities on the requirements of one or more groups of buyers.

Continuous Learning about Markets. One of the major realities of achieving business success today is the necessity of understating markets and competitions.

Designing Market-Driven Strategies

The strategic situation analysis phase of the marketing strategy process identifies market opportunities, defines market segments, evaluates competition, and assesses the organization’s strengths and weaknesses.

Market Targeting and Strategic Positioning. Marketing advantage is influenced by several situational factors including industry characteristics, type of firm (e.g., size), extent of differentiation in buyers needs, and the specific competitive advantage(s) of the company designing the marketing strategy.

The purpose of the market targeting strategy is to select the people (or organizations) that management wishes to serve in the product-market. When buyers’ needs and wants vary, the market target is usually one of more segments of the product market.

Marketing Relationship Strategies. Marketing relationship partners may include end user customers, marketing channel members, suppliers, competitor alliance, and internal teams.

Planning for New Products. New products are needed to replace old products because of declining sales and profits.

Market-Driven Program Development

Market targeting and positioning strategies for new and existing products guide the choice of strategies for the marketing program components.

Strategic Brand Management Product (goods and services) often are the focal point of positioning strategy, particularly when companies or business units adopt organizational approaches emphasizing product or brand management. Product strategy includes: (1) developing plans for new products, (2) managing programs for successful products, and (3) deciding what to do about problem products (e.g., reduce costs or improve the product).

Value-Chain, Price, and Promotion Strategies. One of the major issues in managing the marketing program is deciding how to integrate the components of the mix.