This document outlines the key components of developing an effective marketing strategy. It discusses that a marketing strategy should be based on a clear understanding of the market and a company's strengths and weaknesses. The strategy development process involves conducting a marketing audit and SWOT analysis to analyze the internal and external environment. Objectives are then defined to achieve the overall vision. Components of the strategy include targeting, positioning, and the marketing mix. The strategy also involves deciding on a direction of growth and generic strategy approach. Tactics are then implemented in the short-term to achieve the overall strategic plan.

1. As Unit 2
Topic 1
Market Objectives and Strategy

2. Marketing Strategy
• The broad approach the company intends
to adopt in the longer term to achieve its
objectives
• A medium to long term plan for achieving
a firms marketing objectives
• The means or plan by which marketing
objectives will be achieved
• Concerns markets, positioning, direction
of development and competitive
advantage
• A plan for future marketing activity

3. A marketing strategy should…
• Be part of an overall strategy
• Be based on a clear understanding of the
market
• Be based on analysis of the market
• Be based on a firms strengths
• Match opportunities to strengths
• Address a companies weaknesses
• React to threats
• Be integrated and well thought out

4. Influences on strategy
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Business objectives
The firms resources
The firms strengths
Market conditions
Opportunities in the market
Competition and market structure

5. MOST: components of a strategy
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Mission
Objectives
Strategy – overall plan
Tactics – short term responses to
threats

6. Stages in the development of a
marketing strategy
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Clarify objectives
Carry out a marketing audit
Conduct a SWOT analysis
Define marketing objectives
Develop marketing strategies
Implement marketing plans
Review and evaluate outcomes
Prepare the next plan

7. Consistent cycles

8. The marketing audit
• A systematic analysis of business
actives, operations and the external
environment which may affect how
the business markets its products.
• The audit is carried out to analyse
the position of the business now and
explain how it arrived at that position
• The purpose is to identify strategic
issues in terms of SWOT

9. External variables
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We sometimes know this
Political
as PEST
Economic
Social / cultural
Technological
Market Characteristics
Industry structure
Competition

10. Internal Variables
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The business itself
Its marketing mix
Marketing objectives
Products
Marketing department
Financial performance
Human resources
Research and development
capabilities

11. Analytical tools
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Marketing audit
PEST
SWOT analysis
Product Life Cycle
Ansoff Growth Matrix
Boston Matrix
Market Mapping
Porter’s Generic Strategies

12. SWOT
Internal
External
Positive
Negative

13. Marketing objectives
• What the marketing functions need
to do to fulfil the corporate
objectives
• They are derived from the firms
corporate objectives
• Like any other objectives they
should be SMART
• Example to raise market share to
10% in 2 years or to increase brand
awareness by 5% in Sheffield by the
end of the year

14. Components of a marketing strategy
• Target marketing
• Positioning
• Marketing Mix (Right product, right
promotion, the right price and the
right place / distribution to satisfy
customers)
• Competitive advantage – that which
gives a firm an edge over its rivals
(USP)

15. Three key decisions
• Direction of growth – market
penetration, market development,
product development or
diversification (Ansoff)
• Choice of mass or niche marketing
• Choice of generic strategy – cost
leadership, differentiation or focus
(Porter)

16. Direction of growth
• Ansoff Matrix
• Market development – develop new
markets
• Market penetration – larger share of
the existing market
• Product development – new product
development
• Diversification – new products for
new markets

17. Ansoff Matrix

18. Mass vs niche
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• Mass
Economies of
scale
Less vunarable to
changes in
demand by a small
number of
customers
High volume of
sales
Requires high level
of investment or
capital
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• Niche
Avoid clash with
large rivals
Requires less
resources
Targets limited
market
Will fit in with the
firms USP
Low volume of
sales

19. Generic strategy
• Choice of generic strategy to achieve
competitive advantage
• Cost leadership – lowest cost
producer
• Differentiation – different and better
• Focused strategy – focusing on a
niche in the market
– Cost focused
– Differentiation focused

20. Porters Generic Strategies

21. Marketing tactics
• What needs to be done to ensure that the
strategy is successful
• Measures used to implement strategy
• Activities that deal with short term
opportunities or threats
• Short term actions taken to achieve the
marketing strategy
• Tactics are small scale, short term
individual ways in which objectives might
be achieved

22. A successful marketing strategy….
• Is part of the overall business
strategy
• Matches the right products to the
right market
• Builds on the firms strengths
• Defends against weakness
• Protects against threats
• Achieves the marketing objectives