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A marketing strategy is critical for any organisation’s success, whether it sells products or services, or even if it has a monopoly position in the market. A marketing strategy consists, at the simplest level, of the structured identification of options to apply products (services) to markets, committing it to a plan with targets and setting financial performance indicators. A marketing strategy is typically a subset of the organisation’s larger corporate strategic plan.
There should be two levels to the marketing strategy:
- The strategic level
- The tactical level
The strategic marketing plan is a long-range document typically set to a horizon of one to three years, and sets out the broad characteristics of the market, and the products and services that will be sold into that market. It outlines the company’s position in the marketplace, relative to competitors. Goals are set along with the resources and budget required to achieve those targets.
The tactical marketing plan is the detailed costing and scheduling of the actions required to achieve the targets set out in the strategic marketing plan.
A good marketing plan should contain at least the following:
A mission statement: This sets out the reason for the existence of the organisation. Rather than a phrase or two on the wall in the reception area, it should describe the business, its competences in the market as well as its future positioning.
Market overview: This is an overview of the market, its structure, market trends, key market segments, and a product/service gap analysis.
SWOT analysis: An analysis of the strengths and weaknesses in the company and an opportunities and threats assessment of the external environment.
Marketing objectives: These objectives are quantitatively statements about the profit, volume, value, and market share goals to be achieved.
Marketing strategies: This is a description of how the goals will be achieved and cover the operational aspects of price, product, place and promotion of the goods and services of the organisation.
Key success factors: The key success factors are the “must-haves”. They describe what must be in place for the strategy to be successful. Conversely, if they are not in place, the strategy will certainly be doomed.
Assumptions: A list of the assumptions underlying the strategy: interest rates, exchange rates, regulatory regime, economic growth, competitor intensity, and other relevant factors.
A financial statement: This document summarises the financial implications of the full planning period – both revenue and costs as well as capital investment. A tax treatment may also be required. The available working capital will be a critical part of this information.
Resource requirements: The plant, equipment, skills, and resources required to deliver against the strategy.
The marketing strategy should flow from the overall business strategy and will have to integrate with human resources, operations, and other functional strategies. The process of crafting a marketing strategy is highly structured and formalised in successful large organisations.
In smaller companies, the process is more informal. However, to achieve success, each of the components must be addressed and regularly reviewed. The marketing strategy should be shared with all employees, with due respect given to sensitive information which may be coveted by competitors.
A successful marketing strategy implementation is achieved by the cohesive efforts of all employees across the organisation, and not just the folks in the marketing department. Successful marketing is essential for business success. Without it, an entity cannot sell its goods and services and without revenue, the company will go out of business.
The context of modern business is complex and ever-changing. A coherent marketing strategy is a way in which organisations make their operational situations manageable. With a thorough and detailed analysis of the company, its products, its markets and competitors, an organisation can build a sophisticated and reliable approach to consistently being successful.
