What do you mean by marketing strategy or marketing strategy? Briefly describe the factors to be considered while formulating the overall marketing strategy.

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Meaning and Definition of Marketing Strategy

From time to time some new competitors enter the market or some competitors leave the market. Some competitors keep on changing their marketing strategy. In such a situation, there are two options before the organization – first, the institution should adopt a policy of neutrality in relation to market changes or the second option is that it should adjust its policy according to these changes. Efficient marketing managers consider the second option more best, that is, they keep making necessary changes in the marketing policy of their organization according to the market related changes. The strategy that the organization makes to cope with the changes in the marketing environment is known as marketing strategy or marketing strategy.

According to Philip Kotler, “Marketing strategy or marketing strategy refers to the set of objectives, policies and rules, which represent the marketing efforts in a firm. It is clear from the above discussion that marketing strategy refers to the policy that the organization adopts in response to market changes. Marketing practices are prepared for a short period of time and are subjected to changes according to the changes in the market environment.


Ensto (Elements to be Considered in Formulating Marketing Strategy)

The following points should be kept in mind while designing a marketing strategy:

(1) Possible reactions of competitors (Expected Countermoves of Com petitors) – Marketing executives, while designing a marketing strategy, must first visualize the likely reactions of their competitors and also see what the possible effects will be. For example, the organization wants to fix the price of the commodity below the current price level, then it should be seen whether the competitors will also reduce the price of their product or they will introduce any additional service, such as home delivery, credit facilities, after sales service etc. Any other policies we will adopt and how these will affect the sales volume of our organization. Marketing executives should take decisions in marketing strategy only after studying all these things.

(2) Synergistic Potential – Some marketing inputs have associative potential. In other words, some marketing inputs have a tendency to be mutually supportive, such that working on one input creates the possibility of spending on another. For example, product policy and distribution channel policy are two such marketing inputs that if expenditure is to be made on the production of one additional product, then the expenditure on the opposite medium will also have to be incurred. Therefore, while designing the marketing strategy, the relationship of marketing inputs should also be kept in mind.

(3) Substitutability – The possibility of substituting mutually is found in some marketing elements. While preparing the marketing strategy, such elements should be studied and it should be seen that which element will be used in such elements and to what extent one element can be replaced by another element. For example, to increase sales volume, more expenditure should be made on advertising or on sales promotion activities, it is a memorable fact in this regard that only then marketing facts have their own importance. One of these elements should be replaced by another element within a limit.

(4) Diversity in Productivity Levels of Various Marketing Inputs – There are variations in the productivity levels of different marketing inputs, such as advertising through radio and advertising through sign boards. Once or twice, by getting advertisements through the radio, the consumers may not hear it or its

There should be no special effect on the consumers. Therefore, to make the advertisement more effective by radio, its frequency should be increased. One-time advertising through sign boards is more sustainable. Therefore, the level of productivity of different inputs should also be taken into account while formulating the marketing strategy.

(5) Elasticity of Marketing Inputs Elasticity is found in various marketing inputs and they have an effect on the demand for the product. This fact should be kept in mind by the marketing manager. For example, a marketer of the same product may have to fix different prices for the same commodity depending on the demand of different consumers. Often the manufacturers of goods fix different prices for the wholesalers, retailers and final consumers of the goods.

The marketing manager should study the above facts thoroughly while formulating a marketing strategy.

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