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Framework for Marketing Strategy Formulation

This reading provides a basic framework for thinking through the key decisions in the marketing process.  While every business situation is unique, you will learn best-practice approaches that can be adapted across products, organizations, and markets. 

This reading can be divided into three segments:

• Marketing strategy formation (Sections 2.1 and 2.2);
• Aspiration decisions (Section 2.3); and
• Action decisions (Section 2.4). 

Following your review, prepare a response to the following discussion question:

• What are five best practices in marketing strategy formulation that you take away from this reading?

POST 1

1. Understanding customers first

It becomes essential to identify who the customers are and comprehend the customer needs for establishing a solid marketing strategy. As discussed using a successful example of Pebble Technology, whose CEO identified its customers by putting himself into the shoes of users. In this example, the primary customer needs such as a watch device that would augments its value and use by integrating with a smartphone were identified from a user’s perspective. Further, detecting additional customer needs such as compatibility with specific smartphone brand bolstered the product’s value. Thus, knowing the who the customers are and what their requirements look like forms the basis of establishing a good marketing strategy.

1. Competitive analysis

Second best practice involves understanding – acquiring customers through assimilating the current and likely future competitors. Going back to the example of Pebble Tech where the company founded youngsters who never wore watches to be their challenge. As a step-by-step process identifying the current and potential competitors forms the first step in this before assessing the offerings of the competing companies to devise a functional plan. Moreover, knowledge of how other companies are addressing the market needs comes into pictures for benchmarking purposes. Last of all in this, knowing the evolution of a products over a course of time aids in understanding the pace at which the industry progresses.

1. Aspiration decision

This involves segmenting and targeting customer needs. As an illustration, Zip car proved to be a splendid initiative in this process of segmentation and targeting. The business model focused on universities for an affordable mode of rental cars and worked out well.

1. Offer a robust, versatile, and a multifunctional product to customers

Considering Nest – thermostat manufacturer as an example, the constructive approach discussed in the article, right from customer service for install, programmable thermostat based on time of the day, smartphone control, energy savings, auto feedback loop such as change filter, monthly energy report, and good product reviews forms the core of customer attraction.

1. Good promotion methodologies

All that is needed is a viable means to promote a product. Here the case of Samsung can be considered for clarity in how it transformed from a low-cost manufacturer.

POST 2

Company Analysis: Activities like selling, trade publicity, and supplier management all come under the marketing function. They sound like a low-level task, however; they are the fundamentals of the marketer’s job. Sometimes, even the managerial level staffs have difficulty completing these tasks. These are the tasks that the company ignores most of the time, thinking that some low-level staff will take care of it. The higher level only pays attention to these when the crisis arises. Putting these fundamental functions into the company’s priority list is one of the best practices in marketing strategy formulation. Every company should get a provision for managing one or two marketing functions.

Collaborative Analysis: Marketing management is proven to be very problematic for some companies. On the other hand, other companies’ expertise often makes it a simple job. A strong sense of distinctiveness is often practiced by the best companies. Managers in such companies work with a clear vision. They have no disagreement and no confusion on what is their

Customer Analysis: Another best practice in forming a marketing strategy is to taking care of customers’ concerns, including the trade or suppliers. “Customer concern is an ingrained part of the culture and is always prominent in the theme of the best implementers” (Bonoma, 2014). Analyzing the distributors and customers should be the main objective of an organization.

Competitive analysis: It involves evaluating others’ contributions. It means being aware of which market the competitors are addressing, and how are they evolving. By analyzing the competition one can have a fundamental understanding of its strengths and weaknesses. There are several ways for a marketer to gain information regarding competitors, which include analyzing competitors’ statements about themselves. Also, customers could be another source of information about competitors by expressing their perceptions of competitors’ offerings. Marketers can also observe competitor’s marketing actions, including the product it has on the market.

Context Analysis: Since the Marketing context is always changing, A good marketing strategy should not take anything for granted. It has been clear that how much disruption the Internet has brought to existing business practices. “Similarly, politics, regulation, law, and social norms are not fixed features of the marketing landscape; rather, they are dynamic factors to consider and monitor for signs of disruption” (Dolan, 2014).