The marketing strategy of building an organization around the profitable satisfaction of clients needs has helped firms to achieve success in high-growth, moderately competitive markets. However, to be successful in markets in which economic growth has leveled and in which there exist many competitors who follow the marketing concept, a well-developed marketing strategy is required.
Such a strategy considers a portfolio of products and takes into account the anticipated moves of competitors in the market. There are two major components to your marketing strategy: how your enterprise will address the competitive marketplace ;how you will implement and support your day to day operations. You begin the creation of your strategy by deciding what the overall objective of your enterprise should be. In general this falls into one of four categories: if the market is very attractive and your enterprise is one of the strongest in the industry you will want to invest your best resources in support of your offering. If the market is very attractive but your enterprise is one of the weaker ones in the industry you must concentrate on strengthening the enterprise, using your offering as a stepping stone toward this objective. In the process of creating a marketing strategy you must consider many factors. It is of little value to have a strategy if you lack either the resources or the expertise to implement a cost leadership strategy is based on the concept that you can produce and market a good quality product or service at a lower cost than your competitors. These low costs should translate to profit margins that are higher than the industry average. A differentiation s marketing strategy is one of creating a product or service that is perceived as being unique “throughout the industry”. A focus strategy may be the most sophisticated of the generic strategies, in that it is a more ‘intense’ form of either the cost leadership or differentiation strategy. It is designed to address a “focused” segment of the marketplace, product form or cost management process and is usually employed when it isn’t appropriate to attempt an ‘across the board’ application of cost leadership or differentiation. It is based on the concept of serving a particular target in such an exceptional manner, that others cannot compete.
The pull strategy requires direct interface with the end user of the offering. Use of channels of distribution is minimized during the first stages of promotion and a major commitment to advertising is required.