How to develop a marketing strategy

Updated: Feb 22

A marketing strategy combines all elements of the marketing mix to formulate a plan to design, produce, price, distribute and promote the product.


To first develop a marketing strategy, marketing objectives must be determined. These objectives could be;

  1. To increase the sales of existing products.

  2. To develop and market a new product

  3. To grow overall market share of products or specific product offered by the firm

  4. Access a new market or develop a niche market

  5. Maintain awareness on brand

  6. Exit a market

But before marketing objectives can be determined, the firm must first identify their strength, weakness, opportunities and threats (SWOT) using market research. What are they?


Strength


Strength refers to the advantage the firm has over their competitors, such as being able to access exclusive materials or a good reputation. These advantages can be leveraged to build consumer's confidence especially on new product launch. Apple Inc. has built a large following from their reputation for good customer service and quality product. This enables Apple to price their product at premium with high pre-order sales.


Weakness


Every firm has their weakness. These weaknesses make the company vulnerable to competition. As such, it would be good for the firm to identify and take action to overcome these weaknesses or conceal it from competitors. Example, if the product has a PED that is elastic, the firm must prepare for a significant loss of revenue due to reduced demand should there be price changes by competitors and market changes.


Opportunities


Some products can be developed to offer different services using their existing product. For example, Uber started off as a ride-hailing service, that has now included food delivery (UberEats). This strategy was similarly adopted by their competitor Grab, who subsequently introduced GrabFood and even expanded to offer Motorcycle hailing services (Grab Rider) in traffic congested cities like Jakarta. All these services are available in a single "Super App". By leveraging on opportunities, firms are able to diversity and widen their product portfolio, further reducing business risk failure.


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