In this article we will discuss about the meaning and components of marketing strategy of a business.
Meaning of Marketing Strategy:
A modern business enterprise is faced with the problem of preserving its traditional role in a world affected by recession and inflation and trials by the consumers, government and special interest groups. The primary challenge to business is how to manage it effectively in a dynamic environment. It is in this context that the strategic marketing management assumes importance.
Basically, marketing strategy is the formula for achieving marketing success in business.
In the commercial world, “it is the plan for getting the best return from resources, the selection of the kind of business to engage in and the scheme for obtaining a favourable position in the business field. It is the arrangement for dealing with the ever-changing outer world. It is the understanding of the peculiar quality of an industry area and the programme for matching with it.”
An intelligent marketing strategy requires a thorough understanding of the perspective of the market, an appreciation of the optimism of the industry and its special characteristics, and an analysis of the prospects of the environmental background into which the business structure and its marketing efforts fit.
In most business situations a firm’s marketing success is largely affected by the competitive position it is able to attain. It is of paramount importance to devise a marketing strategy for pinpointing the optimum market position and then getting it.
It is essential that the marketing strategies are in accordance with the overall business theme. However, at times, a particular factor or advantage can form the heart of a marketing strategy. Tata Chemicals’ market strategy to sell Hamam soap rather than cosmetic products made the company successful. In the most commodity field, a means for price/cost reduction may prove to be the winning strategy.
Determinants or Components or Elements of Marketing Strategy:
The formulation of marketing policy and strategy involves consideration of four areas of marketing, mix, namely, product, price, place (distribution) and proration. These four areas are interrelated and strategic decisions regarding one affect the success of the others.
The determinants or components or elements of marketing strategy can be listed in the following summary chart:
