LO.1 Understand the principles of strategic marketing
AC 1.1 Analyse the relationship between corporate strategy and marketing strategy
AC 1.2 Analyse the development of marketing strategies
AC 1.3 Explain how different marketing strategies can contribute to competitive advantage
1D1 Evaluate the relationship between strategic intent, strategic assessment, strategic choice and their impact on the formulation of marketing strategy
The corporate strategy is useful for the business in order to provide a sensitive direction for the total structure of the business. As suggested by Mishra and Modi (2016), his is important for the business in order to redirect it within scheduled planning. The corporate strategy usefully increases the operational efficiency of the business. Thus, the organisation becomes proactive using such corporate strategies. This is also useful for total Marketing Solutions Ltd, in order to redirect the business with improved modification. However, the marketing strategies usefully support the corporate strategy and strengthen the corporate strategy. The effective corporate strategy is useful for the business in order to make it a success. As mentioned by Wilden and Gudergan (2015), here are a number of companies that become successful using such marketing strategies, such as Red Bull, an Australian company. The marketing strategy is also important in order to provide the business with improved employee co-operation. The employee co-operation is useful to make the organisation more challenging within the tough competitors. On the other hand, such corporate strategies are also useful in order to capture the target market for the business. The focus on the target market is important to drive the business to achieve the target profit from the business.
Corporate strategy helps to create value of organization across different business while marketing strategy deals with combining all then plans which are used in achieving marketing goals of the company. Corporate strategy evaluate plans to aid an organization in carrying out visions and missions of company while achieving its organizational goals and Marketing strategy helps to attract the customers which are targeted in their visions and missions. Corporate strategies identifies competitor analysis through using SWOT and Five force model across the market and Marketing strategies find effective ways and tools which help to face the market competition and gain competitive advantage (Ashley and Tuten, 2015). Corporate strategy has main focus on profitability of business and Marketing strategy develop plans how to achieve the profits from the market. Corporate strategies identifies the market and people who have to be targeted and Marketing strategies develop plans on how to attract the targeted market for consuming the services (Gonzalez-Brambila, Jenkins and Lloret, 2016). Both Corporate strategy and Marketing strategies are important for Total Marketing Solutions. For example, corporate strategy and marketing strategy of McDonald both have positive relationship as they are operating in different countries which are a part of their marketing strategy and this will also give direction to their entire organization. Other than this, it will also help the organization to get their goals achieved within a limited period of time. Their marketing strategy will give support to their overall corporate strategy by increasing the profit of company.
The effective development over marketing strategies is useful to provide the business with the changed requirements in the market. This also usefully describes the actual marketing tactics that can be used by the concerned firm. As per Ashley and Tuten ( 2015), in this regard, the dynamic nature of the market including the pricing structure is useful for the business to provide it with attractive pricing criteria for the products. A number of organisations became beneficial using these strategies such as Microsoft (zdnet.com, 2019). The attractive feature of Microsoft with reasonable pricing criteria is useful for the organisation in order to gain new customers each year. On the other hand, the development of such strategies required a brief description of the business. Then the role and position of the product are also important during developing a marketing strategy. Thus, during the development of such strategies is useful for Total Marketing Solutions Ltd, to make a clear review of these factors.
Success of marketing strategies are always depends on reaction of customer. Marketing strategies should be built according to attitude, culture and environment under which the services and products are introduced.
For developing marketing strategy, it is essential to conduct environmental analysis of the market. It will help the firm to find major opportunities within market so that it will be easy for them to get the positive results.
The major objectives of TMS are to expand the network of customers so that they will be able to cover more market area. This will help to increase their profits. Another objective of company is to increase the level of customer satisfaction so that it will be easier for them to make profits.
Some unique prepositions should be identified which helps in convincing targeted customer (Hollensen, 2015). This preposition helps Total Marketing Solutions to make company different from all other. Different features, uses and benefits of the product should be clearly stated to customer that helps them understand benefits of the product for them.
After finding unique prepositions, Total Marketing Solutions should focus on deciding the customer which should be targeted for the product. Ways of attracting customer are depends upon targeted market.
Benefits of product should be described on the targeted market through which product can be introduced (Grönroos, 2016). Customers are attracted towards the services after identifying its benefits for them. This will help Total Marketing Solutions to convince people more effectively.
Pricing of the product should be according to type of targeted customer. Appropriate prices should be identified which the target market can afford. A proper market research should be conducted in market which helps Total Marketing Solution to evaluate buying capacity of people (Costanzo and Di Domenico, 2015). For example, TESCO uses to provide discount on their the product which will help them to attract the customers (Tesco launches fresh price-cutting drive to combat Lidl and Aldi as its market share tumbles and accounting scandal takes toll, 2014).
After identifying all the above factors, Total Marketing Solutions should work on deciding positioning strategy for the chosen product and services. For this, company should choose a place where the product can be easily reachable by the customer (West, Ford and Ibrahim, 2015.).
Total Marketing Solutions should work on identifying promotional techniques through which an organization can better introduce their product to targeted customers. It includes advertising, sales techniques and public relation campaigns through which a product can be promoted in the market. For example, TESCO is using club cards for making promotions of the products. This will help them to attract more people so that they can achieve their goals (Tesco Clubcard Rewards for Petrol, Diesel, Car Washes | Esso, 2016).
Market segmentation is an initial stage of putting in place a successful marketing strategy. The two fundamental marketing strategies an organisation can use to market products and services are focused on target segments, market segmentation or mass marketing when the organisation tries to sell to everyone. Largely mass marketing strategies are expensive and ineffective.
Carrying out a segmentation market study is a vital component in the organisations strategic planning. A well-planned market segmentation study will identify groups of people with the greatest potential to buy the organisations service or product. Having this valuable information will allow the organisation to focus on its development of products, advertising, and selling resources which can increase its sales and profitability. (Wise, 2014)
The organisation should evaluate the separate segments within the market. The organisation can then choose a segment or segments to enter. This ensures that the organisations evaluation means it does not enter the market segment blinkered.
This targeting looks at evaluating each market segments appeal for the organisation and selecting a market segment or market segments to enter. This market segment evaluation looks at how the organisation can best serve each of the selected market segments. This means that the organisation should enter the market segment which creates the greatest income from the customer over a period of time.
The organisations available resources will determine how many segments it can enter. Organisations with limited resources should target few segments called market niches. The organisation should be aware of segment competitors, making a decision to overlook or ignore them. The organisation may decide to enter several segments. The decision can be due to strong relationships between segments in terms of similarities, or due to the organisation’s resources. (Claessens, 2015)
The organisation has chosen which segment within the market it wants to serve. The organisation must employ how it differentiates itself products and services within each of the targeted segments and what position is it looking to achieve in each segment?
Positioning and differentiation are deeply related and interdependent of one another. Positioning is the process for an organisation to select a product to occupy a specific market segment relative to competitive products as seen by its target customers, this is differentiation dependent.Differentiation, which is the process of differentiating the product to initiate greater value for the customer.
The organisation should plan the required position it needs to achieve with its service or product in terms of the target customers. The branding or the product or service name is critical for the position and the initial thought of the customer. The position is key to the differentiation of the product or service from its competition, this should be used to the maximum effect to gain the greatest market share.
It’s imperative for the organisation to realise what the customer value differentiation is that provides its products and services with a strong competitive advantage. How the customer perceives the service or product should be determined prior to implementing the marketing strategy. (Claessens, 2015)
The marketing mix, alternatively known as the 4P’s is undoubtedly the best-known concept in marketing strategy. This is a marketing tool which organisations utilise to implement marketing goals in its chosen market segment.
The marketing mix has several elements which are referred to as the tactical facets of marketing, this is because they appear in the organisations immediate planning. The marketing mix elements consist of, Product, Price, Place and Promotion. The four parts, when proportionately used, present an impressive marketing tool.
There is an extended marketing mix also referred to as the 7P’s increases the number of variables. It includes two additional factors including physical evidence, people and process. It is used in the services sectors as well as markets such as consulting. (Wide, 2019)
Branding is situated in the first marketing mix P for product. Positive branding add strength to the organisations name, products and services. This is achieved through marketing messaging and emotional attachment. The organisation will influence the identity of the brand and how it differentiates itself from its competitors, this can be achieved through greater benefits including greater quality and reliability.
Organisations grow strong brands with iconic names, logos and other memorable phrases. Inspirational slogans can become instantly recognisable to the organisation’s brand. Customers can easily relate to the organisation or brand from hearing the slogan. (Mode, 2020)
Pricing is the second P in the marketing mix. The ultimate aim of the marketing strategy is achieving a greater market share and achieving repeatable and long-term competitive advantage over the organisation’s rivals. The organisations competitive advantage can be realised by offering its customers improved value over its competition. This can be complete by offering consumer greater value products or services by reducing its costs or improving the quality or reliability of its products or services.
Michael Porter proposed four "generic" business strategies that should be implemented by the organisation to gain competitive advantage. The strategies relate to the extent to which the scope of a organisations activities is narrow versus broad and the extent to which an organisation seeks to differentiate its products and services. (Riley, 2020)
The third P is place and includes distribution. A bespoke channel for distribution can immediately differentiate the organisation and increase its competitive advantage, often in sectors where the service or product is indifferent or bland for example the finance industry.
An organisation which can implement an efficient or cheaper distribution channel for its service or product to enter a market can create a greater competitive advantage and increase its market share. This is greatly accentuated if the competitor can’t access the distribution channel for example because of a conflict of interest. (Group, 2015)
The use of the internet for e-marketing strategies can significantly increase competitive advantage compared to typical or offline marketing, it is of greater value to promote the organisation and revenue generating ventures online. This is very true regarding online advertising.
Many revenue generating ideas that can be promoted and advertised online by the organisations are free to use. Social media platforms like LinkedIn, Twitter and YouTube can offer free publicity or advertising. Traditional media for example TV, magazines and newspapers can be very expensive to promote the organisation or brand.
Web marketing is very cost effective and is very efficient as it saves time to implement and takes less time to attract customers and accomplish financial transactions. The return on investment is far superior than traditional marketing techniques. Online marketing will provide the organisation with a greater and more rapid return on the financial investment providing a successful marketing strategy. (Group, 2015)
The organisations strategic intent, strategic assessment and strategic choice are an integral part of the strategic planning and strategic management process. The strategic planning and strategic management processes are different in execution but have a common goal in realising the organisational strategic objectives.
Organisations use the strategic planning process to determine the direction of the business. Where the strategic management process defines how the objectives will be met to achieve the goals of the strategic planning process.
The strategic management process should start with defining the organisations strategic intent. The strategic intent of the organisation should focus on the following criteria:
• Establishing the organisations vision
• Designing the organisations mission
• Setting the organisations strategic objectives
During the process, organisational goals and objectives will be detailed, realistic and in line with values of the organisational vision. The final stage is to write a mission statement that succinctly communicates the organisational objectives to employees and stakeholders. (Clayton, 2019)
The data analysis is a key step to moulding the next step. In this stage the business gleans data and information relevant to realising the organisational vision. The main focus area for the data analysis is related to understanding the needs of the organisation and its strategic direction.
This will include looking at areas of growth for the organisation. Examination of any internal or external influences that can affect the organisations goals and objectives. The organisation should look at its strengths and weaknesses as well as any threats and opportunities as it progresses through the information gathering stage.
During this stage the organisation will assess the relevant subordinate strategies including the functional level marketing strategy. A marketing strategy will be formulated that will be in line with the successful completion of the top level organisational strategy (Clayton, 2019)
The next stage is about putting the marketing strategy into practice. The initial step in forming a marketing strategy is to analyse the data gained from finalising the data analysis. Evaluation of the marketing resources enables the organisation to see what it has at hand to assist the organisation reach its objectives and goals. External resources must be identified by the organisation in areas which are inadequate and could cause a failure of the marketing objectives. The organisation should prioritise its actions to ensure the success of the marketing strategy. When the actions are prioritised the marketing strategy should be formalised.
The organisation and economic climate are constantly changing, it’s important that the organisation plans for contingencies to ensure the success of each stage of the marketing strategy. (Clayton, 2019)
The future of the organisation is dependent on the successful implementation of the marketing strategy. This is the point where strategic marketing process is put into place. At this stage of the marketing strategy an evaluation of the businesses current structure is taken, and a new structure adopted if necessary. There needs to be alignment between the business strategy and the marketing strategy.
All employees working in the organisation will be prescribed their specific roles and responsibilities and how their individual goals and objectives will help meet the organisations strategic plans. At this stage funding and resources must be secured for the strategy ready for employees to execute the plan. (Clayton, 2019)
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