MARKETING STRATEGY Marketing, and other functional-level, objectives spring directly, and naturally, from thecorporate level strategies

which, in turn, are aimed at meeting the corporate objectives.Naturally enough, therefore, we would anticipate marketing strategy to be aimed at meetingthe marketing objectives.However, we need to make a distinction between the concepts of "marketing strategy" and" a marketing strategy".

"Marketing strategy" describes the means of achieving an objective; or

"Amarketing strategy" describes an approach, stance or long-term plans. (It is fromthis use of the word that we get "strategic planning", meaning a higher level ofplanning.)Over the years marketing authors have tried to clarify this issue in different ways.Wilson, Gilligan and Pearson in Strategic Marketing Management , readily admit that there isno standard definition of "strategy", but highlight three "levels" of strategy:

Corporate strategy dealing with the allocation of resources throughout the entireorganisation, covering all of the various businesses or divisions.

Business strategy which exists at the individual business or division level and isconcerned with the question of competitive positioning.

Functional-level strategy which is limited to the actions of specific functions withinspecific businesses.The same authors produced the model shown in Figure 2.4, which demonstrates the strategic planning process

TYPES OF MARKETING Undifferentiated Marketing Here there is a standard, unchanged product and a standard, unchanged marketingeffort. The product will be aimed at a large sector of the market. This strategy canreduce costs for example, in marketing or production but will encounter wastage inpromotional activity and possibly in distribution. Not too many companies are in thefortunate position of producing a product which is suitable for everyone in the world(although there are quite a few, without mentioning Coca Cola).

Differentiated Marketing Here the company segments its markets and offers modified products to different segments. The marketing mix elements will also be modified to suit the requirements of the chosen segments. Using a differentiated strategy will mean higher costs, but ultimately the profit levels could be higher as the offering has been targeted to the segments. This should mean that there will be less wastage of effort.

Concentrated Marketing Here the total marketing effort is aimed at one market segment. This strategy is really aimed at the exploitation of a limited market area and tends to be used by those companies who have highly specialised products. It is also known as "niche marketing

PROFIT IMPACT ON MARKET STRATEGY (PIMS) Although PIMS is referred to as a "model" it is actually a "programme" which was originally are search project between the Marketing Science Institute and Harvard Business School, in the USA, to determine how profit impacted on marketing strategy and vice versa. The programme, which is still continuing, has four main areas of strategic planning under investigation which can be of use to businesses when they are selecting strategies:

Forecasting profits

Allocating resources

Measuring performance

Appraising new business propositionsThe main findings of the PIMS programme have been that profitability is influenced by(a) Competitive position (market share and product quality)(b) Production structure(c) The attractiveness of the target market.The commercial side of the programme is administered by US Strategic Planning Institute butis also available in other countries. There is a database of approximately 3,000 business"units" from several hundred firms, including successful and loss-making ventures. Companyand market backgrounds are recorded as well as the strategies which were adopted together with the results achieved.The main purpose of this model, or programme, is to enable companies to look at theoutcomes of strategies pursued by others when they are faced with similarsituations/conditions. Information is available, at a cost, in reports in one of four formats:

PAR average ROI and cash flow based on market technology, cost structure andcompetition

Look-alikes strategies (and outcomes) used by similar companies

Strategy analysis shows the likely effects of strategy changes on ROI/cash flow bothshort and long term.

Optimum strategy suggests strategies which will maximise result