The Marketing Strategy Process

The marketing strategy analysis,planning,implementation and management process that we follow is described,The strategy stages shown are examined and applied through the later parts of this book.Markets,segments and customer value consider market and competitor analysis,market segmentation,strategic customer relationship management,continuous learning about markets.Designing market driven strategy examines customer targeting and positioning strategies,relationship strategies and innovation and new product strategy.Market driven program development consists of brand,value chain,pricing and promotion and selling strategies designed and implemented to meet the value requirement of targeted buyers.Implementing and managing market driven strategies considers organizational design and marketing strategy implementation and control.

A)Evaluating market,segments and customer value-  

Marketing management evaluates markets and customers to guide the design of a new strategy or to change an existing strategy.Analysis is conducted on a regular basis.Activities include:

1.Markets and Competitive Space: 

Markets needs to be defined so that buyers and competition can be analyzed.A product-market consists of a specific product that can satisfy a set of needs and wants for the people willing and able to purchase it.The objective is to identify and describe the buyers,understand their preferences for products,estimate the size and rate of growth of the market,and find out what companies and products are competing in the market.

2.Strategic Market Segmentation:

Market segmentation offers an opportunity for an organization to focus its business capabilities on the requirements of one or more groups of buyers.The objective of segmentation is to examine differences in needs and wants and to identify the segments within the product-market of interest.

3.Strategic Customer Relationship Management:

A strategic perspective on Customer Relationship Management emphasizes delivering superior customer value by personalizing the interaction between the customer and the company and achieving the coordination of complex organizational capabilities around the customer.Since CRM is an enterprise spanning initiative,it needs to be carefully integrated with marketing strategy.

4.Capabilities for Continuous Learning About Markets:

Understanding markets and competition has become a necessity in modern business.Several market sensing methods are available to guide the collection and analysis of information.

B)Designing Market-Driven Strategies-

Evaluating markets,segments and customer value drivers at the outset of the marketing strategy process identifies market opportunities,defines market segments,evaluates competition and assesses the organization's strengths and weaknesses.

1.Market Targeting and Strategic Positioning:

A core issue is deciding how,when,and where to compete,given a firm's market and competitive environment.The purpose of market targeting strategy is to select the people that management wishes to serve in the product market.

Positioning strategy is the combination of the product,value chain,price and promotion strategies a firm uses to position itself against its key competitors in meeting the needs and wants of the market target.

2.Strategic Relationship:

Marketing relationship partners may include end user customers,marketing channel members,suppliers,competitor alliances and internal teams.The driving force underlying these relationships is that a company may enhance its ability to satisfy customers and cope with a rapidly changing business environment through collaboration of the parties involved.Strong relation shins with outsourcing partners are vital to the success of these powerful brands.

3.Innovation and New Product Strategy:

New products are needed to replace old products when sales and profit growth decline.Closely coordinated new product planning is essential to satisfy customer requirements and produce products with high quality at competitive prices.

C)Market Driven Program Development-

Market targeting and positioning strategies for new and existing products guide the choice of strategies for the marketing program components.Product,distribution,price and promotion strategies are combined to form the positioning strategy selected for each market target.

1.Strategic Brand Management:

Products often are the focal point of positioning strategy,particularly when companies or business units adopt organizational approaches emphasizing product or brand management.

2.Value Chain Strategy:

Market target buyers may be contacted on a direct basis using the firm's sales-force or by direct marketing contact or instead,through a value added chain of marketing intermediaries.

3.Pricing Strategy:

Price also plays an important role in positioning a product or service. Customer reaction to alternative  prices,the cost of the product,the prices of the competition and various legal and ethical factors establish the extent of flexibility management has in setting prices.

4.Promotion Strategy:

Advertising,sales promotion,the sales-force,direct marketing and public relations help the organization to communicate with its customers,value chain partners,the public and other target audiences.

D)Implementing and Managing Market Driven Strategy-

Selecting the customers to target and the positioning strategy for each target moves marketing strategy development to the action stage.

1.Designing Market Driven Organizations:

An effective organization design matches people and work responsibilities in a way that is best for accomplishing the firm's marketing strategy.Organizational structures and processes must be matched to the business and marketing strategies that are developed and implemented.

2.Marketing Strategy Implementation and Control:

Marketing strategy implementation and control consists of -preparing the marketing plan and budget,implementing the plan,using the plan in managing and controlling the strategy on an ongoing basis.

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