Marketing strategies





Strategy is the crafting of plans to reach goals. Marketing strategies are
those plans designed to reach marketing goals. A good marketing strategy
should integrate an organizationÕs marketing goals, policies, and action
sequences (tactics) into a cohesive whole. The objective of a marketing
strategy is to put the organization into a position to carry out its mission
effectively and efficiently.

Marketing strategies are partially derived from broader corporate
strategies, corporate missions, and corporate goals. They are also
influenced by a range of microenvironmental factors.

Marketing strategies are dynamic and interactive. They are partially planned
and partially unplanned. See strategy dynamics.

Types of Marketing Strategies

Every marketing strategy is unique, but if we abstract from the
individualizing details, each can be reduced into a generic marketing
strategy. There are a number of way of categorizing these generic
strategies. A brief description of the most common categorizing schemes is
presented below. For a more detailed explanation, follow the links.

   * Strategies based on market dominance - In this scheme, firms are
     classified based on their market share or dominance of an industry.
     Typically there are four types of market dominance strategies:
        o leader
        o challenger
        o follower
        o nicher

   * Porter generic strategies - Michael Porter assessed strategy on the
     dimensions of strategic scope and strategic strength. Strategic scope
     refers to the breadth of market penetration while strategic strength
     refers to the firmÕs sustainable competitive advantage. He felt three
     types were important:
        o cost leadership
        o product differentiation
        o market segmentation

   * Innovation strategies - This deals with the firmÕs rate of new product
     development and business model innovation. It asks whether the company
     is on the cutting edge of technology and business innovation. There are
     three types:
        o pioneers
        o close followers
        o late followers

   * Growth strategies - In this scheme we ask the question, ÒHow should the
     firm grow?Ó. There are a number of different ways of answering that
     question, but the most common gives four answers:
        o horizontal integration
        o vertical integration
        o diversification (or conglomeration)
        o intensification

   * Aggressiveness strategies - This asks whether a firm should grow or
     not, and if so, how fast. One scheme divides strategies into:
        o building
        o holding
        o harvesting

     A more detailed schemes uses the categories:
        o prospector
        o analyzer
        o defender
        o reactor

   * Warfare based strategies - This scheme draws parallels between
     marketing strategies and military strategies. There are many types of
     marketing warfare strategies, but they can be grouped into:
        o offensive marketing warfare strategies
        o defensive marketing warfare strategies
        o flanking marketing warfare strategies
        o guerrilla marketing warfare strategies