Strategic Management: Formulation and Implementation

Functional Strategies In The Marketing Area

The marketing strategy is depended on whether the organizations is attempting to reach new or existing customers and whether its products or services are new or already exist. Figure A illustrates a classification system for marketing strategies based on the type of customers and type of products or services.

With a marketing penetration strategy, a firm seeks to increase market share for present markets through greater marketing efforts to gain grater control in which it already has a product or service. A market development strategy consists of introducing the organizations's existing products or services to customer other than ones it currently serves. With a diversification marketing strategy, a firm offers new products or services to new customers.

After the basic marketing strategic is determined, more specific strategies are required. Effective marketing strategies guide marketing managers in determining who will sell what, where, to whom, in what quantity, and how. These activities are often called the marketing mix.

Marketing strategies must therefore entail four marketing-mix variables: product, place, promotion, and price.