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Marketing Strategy

Though part of the strategic plan of the organization, marketing strategies warrant separate men­tion. Marketing strategies are integral as they constitute the largest embodiment of the organiza­tional overall competitive strategy. Marketing strategy determines the four Ps of the product. These include:

1. Place. Distribution channels, market segmentation (where the target market is divided into segments of customers with similar needs, where the marketing mix is adjusted for each segment)

2. Price. Cost strategy and structure, sales costs and commission, and pricing strategy

3. Process. Delivery mechanism, sales force or agents, and communication channels

4. Promotion. Advertising, sales promotion, and communication strategy

They also include an A: After-sales service, customer service strategy and plan, repair and main­tenance, handling complaints, and technical support.

Marketing strategies are related to branding strategies, globalization strategies, product devel­opment, and innovation strategies. In particular they cover five areas:4

1. Competitive positioning and market segmentation, which affects the innovation portfolio

2. Product positioning for each segment, which includes pricing and distribution strategies

3. Selection of the marketing mix, which affects the promotion strategy

4. Market entry which determines reentry or exit from a market depending on product life cycle and desirability of business (i.e., competitive strategy)

5. Timing of strategy and implementation

An organization may assume any structure depending on its strategy, size, and spread of its oper­ations. The following is an illustrative list of structures:

• Functional and process-oriented structures as illustrated in Exhibit A.2- The functional structures are usually adopted by single business organizations where activities are organized according to the function. In some organizations, the various functions repre­sent the core processes that the organization performs. The board of executives is usually composed of the heads of the various functions.

• Strategic business unit (SBU) structure. Originally developed by General Electric with McKinsey, business units are grouped into SBUs whenever they are strategically con­nected (e.g., serve the same group of customers). Each SBU contains all trie functions to te independently.

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