8.3: Marketing Strategy
A marketing strategy consists of two major elements: the organization must determine its target market and then develop a marketing mix to meet the needs of that market. The target market is the specific group of consumers with similar needs and wants toward which a firm directs its marketing efforts. A target market is the group of people who are most likely to buy your product or service. The marketing mix is the combination of four factors, known as the “4Ps” of marketing. The 4Ps are designed to serve the target market and include product, price, promotion, and place. A marketing strategy must not only define the target market, but it must also define goals and outcomes, timelines, resources, and opportunities. For example, the 2021 census conducted by Statistics Canada stated that 6.2 million people (more than one in six Canadians) live in the Greater Toronto Area (GTA ). A business would want to segment several specific customer groups to more effectively sell to its potential target markets living in the Toronto area.
There are five steps in the marketing planning process:[1]
- Mission (understand the company’s mission and corporate objectives)
- Situation Analysis (identify opportunities, SWOT analysis, PEST analysis, 5C analysis)
- Marketing Strategy (define the target audience, set measurable goals, and develop a budget)
- Marketing Mix (product development, pricing, place and distribution, promotion)
- Implementation and Control (put plan into action, monitor results)
Strategic marketing planning involves setting goals and objectives, analyzing internal and external business factors, product planning, implementation, and tracking your progress. Consider Apple, which has been the winner of the CMO Survey Award for Marketing Excellence for the past sixteen years.
Here’s an example of the five steps of the marketing planning process aligned to Apple Inc., one of the most successful companies in the world:
- Mission: Apple is dedicated to making innovative, high-quality products.
- Situation Analysis: Apple’s competitive advantage is driven by its commitment to understanding customer needs, focusing on the products that are core to its mission, and fostering a collaborative work culture.
- Marketing Strategy: Apple is usually first to the marketplace with new products, and the company relies on brand loyalty from existing customers as a strategy when launching new products and services.
- Marketing Mix: While Apple offers a range of products, it values premium pricing and relies on strict guidelines for distribution.
- Implementation and Control: Each Apple product complements the others and works within the same ecosystem, so customers tend to stay with the brand, creating loyal consumers.
The strategic marketing process puts all the pieces together so that everything you do contributes to the success of the business. Rather than executing haphazard activities and ideas, developing a solid plan that weaves goals and tactics into a seamless experience is essential.
Media Attributions
“Apple inc, Mac, Apple store image” by matcuz, used under the Pixabay license.
- Weller, J. (2017, June 23). The definitive guide to strategic marketing planning. Smartsheet. ↵
A plan used by organizations to determine a target market and then develop a marketing mix to meet the needs of that market.
A group of consumers, with similar needs and wants, likeliest to buy a company's product or service, toward which a firm directs its marketing efforts.
The combination of four factors, known as the "4 Ps" of marketing. The 4 Ps are designed to serve the target market and include product, price, promotion, and place.
The practice of setting goals and objectives, analyzing internal and external business factors, product planning, implementation, and tracking progress.
