Marketing strategy has the fundamental goal of increasing sales and achieving a

sustainable competitive advantage.[1] Marketing strategy includes all basic, short-term, and long-term
activities in the field of marketing that deal with the analysis of the strategic initial situation of a
company and the formulation, evaluation and selection of market-oriented strategies that contribute
to the goals of the company and its marketing objectives.[2] Marketing strategies cover everything
from Pay per click, search engine marketing, public relations (PR), Engineering with Marketing & the
much more.

Contents
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1Marketing management versus marketing strategy

2Developing a marketing strategy
3Diversity of strategies
o 3.1Strategies based on market dominance
o 3.2Entrant strategies
3.2.1Pioneers
3.2.2Close followers
3.2.3Late followers
o 3.3Raymond Miles' strategy categories
4Growth strategies
o 4.1Horizontal integration
o 4.2Vertical integration
o 4.3Diversification
5Strategic models
o 5.1The 3Cs
o 5.2The Ansoff Matrix
o 5.3Marketing Mix Model (4Ps)
6Real-life marketing
7See also
8References
9Further reading

Marketing management versus marketing strategy[edit]

The distinction between strategic and managerial marketing is used to distinguish "two phases
having different goals and based on different conceptual tools. Strategic marketing concerns the
choice of policies aiming at improving the competitive position of the firm, taking account of
challenges and opportunities proposed by the competitive environment. On the other hand,
managerial marketing is focused on the implementation of specific targets." [3] Marketing strategy is
about "lofty visions translated into less lofty and practical goals [while marketing management] is
where we start to get our hands dirty and make plans for things to happen." [4]

Developing a marketing strategy[edit]

Strategic planning begins with a scan of the business environment, both internal and external, this
includes understanding strategic constraints.[5] An understanding of the external operating
environment, including political, economic, social and technological which includes demographic and
cultural aspects, is necessary for the identification of business opportunities and threats.[6] This
analysis is called PEST, it stand for Political, Economic, Social and Technological. A number of
variants of the PEST analysis can be identified in literature, including: PESTLE analysis (Political,
Economic, Social, Legal and Environmental); STEEPLE (adds ethics); STEEPLED (adds
demographics) and STEER (adds regulatory).[7]

PEST analysis: variables that may be considered in the environmental scan

The aim of the PEST

analysis is to identify opportunities and threats in the wider operating environment. Firms try
to leverage opportunities while trying to buffer themselves against potential threats.
Basically, the PEST analysis guides strategic decision-making.[8] The main elements of the
PEST analysis are:[9]

Political: political interventions with the potential to disrupt or enhance trading conditions
e.g. government statutes, policies, funding or subsidies, support for specific industries,
trade agreements, tax rates and fiscal policy.
Economic: economic factors with the potential to affect profitability and the prices that
can be charged, such as, economic trends, inflation, exchange rates, seasonality and
economic cycles, consumer confidence, consumer purchasing power and discretionary
incomes.
Social: social factors that affect demand for products and services, consumer attitudes,
tastes and preferences like demographics, social influencers, role models, shopping
habits.
Technological: Innovation, technological developments or breakthroughs that create
opportunities for new products, improved production processes or new ways of
transacting business e.g. new materials, new ingredients, new machinery, new
packaging solutions, new software and new intermediaries.
When carrying out a PEST analysis, planners and analysts may consider the operating
environment at three levels, namely the supranational; the national and subnational or local
level. As businesses become more globalized, they may need to pay greater attention to the
supranational level.[10]
 A SWOT analysis, with its four elements in a 22 matrix.

In addition to the PEST analysis, firms carry out a Strengths, Weakness, Opportunities and
Threats (SWOT) analysis. A SWOT analysis identifies:[11]

Strengths: distinctive capabilities, competencies, skills or assets that provide a business

or project with an advantage over potential rivals; internal factors that are favourable to
achieving company objectives
Weaknesses: internal deficiencies that place the business or project at a disadvantage
relative to rivals; or deficiencies that prevent an entity from moving in a new direction or
acting on opportunities. internal factors that are unfavourable to achieving company
objectives
Opportunities: elements in the environment that the business or project could exploit to
its advantage
Threats: elements in the environment that could erode the firm's market position;
external factos that prevent or hinder an entity from moving in a desired direction or
achieveing its goals
After setting the goals marketing strategy or marketing plan should be developed. This
is an explanation of what specific actions will be taken over time to achieve the
objectives. Plans can be extended to cover many years, with sub-plans for each year.
Although, as the speed of change in the merchandising environment quickens, time
horizons are becoming shorter.[6] Ideally, strategies are both dynamic and interactive,
partially planned and partially unplanned. To enable a firm to react to unforeseen
developments while trying to keep focused on a specific pathway, a longer time frame is
preferred. There are simulations such as customer lifetime value models which can help
marketers conduct "what-if" analyses to forecast what might happen based on possible
actions, and gauge how specific actions might affect such variables as the revenue-per-
customer and the churn rate. Strategies often specify how to adjust the marketing mix;
firms can use tools such as Marketing Mix Modeling to help them decide how to allocate
scarce resources for different media, as well as how to allocate funds across a portfolio
of brands. In addition, firms can conduct analyses of performance, customer
analysis, competitor analysis, and target market analysis. A key aspect of marketing
strategy is often to keep marketing consistent with a company's overarching mission
statement.[12]
Marketing strategy should not be confused with a marketing objective or mission. For
example, a goal may be to become the market leader, perhaps in a specific niche; a
 mission may be something along the lines of "to serve customers with honor and
dignity"; in contrast, a marketing strategy describes how a firm will achieve the stated
goal in a way which is consistent with the mission, perhaps by detailed plans for how it
might build a referral network. Strategy varies by type of market. A well-established firm
in a mature market will likely have a different strategy than a start-up. Plans usually
involve monitoring, to assess progress, and prepare for contingencies if problems arise.
Further information: Strategy dynamics
The customised target strategy
The requirements of individual customer markets are unique, and their purchases
sufficient to make viable the design of a new marketing mix for each customer.
If a company adopts this type of market strategy, a separate marketing mix is to be
designed for each customer.[13]
Further information: Marketing Mix Modeling
The differentiated strategy
Specific marketing mixes can be developed to appeal to most of the seg

The 3Cs[edit]
The 3Cs stand for: Customer, Corporation and Competitor, is a strategic model that uses these
three key factors which lead to a sustainable competitive market. This strategy was developed by a
Japanese strategy guru called Kenichi Ohmae.[34] Each factor is key to the success of this strategy;
The corporation factor mainly focuses on maximizing the strengths of the business from which the
business can influence the relevant areas of the competition to achieve success within the
industry.[34] Customers are the basis to any business. The most important factors of customers and
the wants, needs and requirements that the business needs to fulfill in order to attract buyers. The
competition can be looked at in various different ways such as; purchasing, design, image and
maintenance. The more unique steps a business takes the less competition a business will face in
that field.[34]

The Ansoff Matrix[edit]

The Ansoff Matrix model invented by H. Igor Ansoff; is a model that focuses on four main
areas; Market penetration, Product development, Market development and Market Diversification.
These are further split into two areas known as the New and Present. From this strategy,
businesses are able to determine the product and market growth. This is done by focusing on
whether the market is a new market or an already existing one, and whether the products are new or
not.[35] Market penetration covers products that are familiar to the consumers, this creates a low risk
as the product is already on the established market.[35] Product development is the introduction of a
new product into an existing market. This can include modifications to an already existing market
which can create a product that has more appeal.[35] Market development, also known as market
extension, is when an already existing product is introduced to a new market in order to identify and
build a new clientele base. This can include new geographical markets, new distribution channels,
and different pricing policies. Diversification, is the riskiest area for a business. This is where a new
product is sold to a new market. There are two type of Diversification "Related" which means the
business remains in the same industry that they are familiar with. The other is "Unrelated" which is
when there are no previous relations or market experiences for the business.[35]

Marketing Mix Model (4Ps)[edit]

The 4Ps also known as Price, Product, Place and Promotion is a strategy that originated from the
single P meaning Price. This strategy was designed as an easy way to turn marketing planning into
practice. This strategy is used to find and meet the consumer needs and can be used for long term
or short term purposes. The proportions of the marketing mix can be altered to meet different
requirements for each product produced.[36]