1.1 Introduction to Marketing Strategy

Marketing strategyMarketing strategy: A cohesive marketing mix of product, place, price, and promotion, designed for a specific target market. Marketing strategy answers the question, “How do we orchestrate the marketing mix to deliver value to a particular market segment?” provides an overview of the many marketing elements that must come together to make a successful business. It determines how to go about selecting products, customers, competitors, appropriate distribution, pricingpricing: The amount of money exchanged for a product or service., and promotion plans.

Define marketing.
Discuss the various marketing philosophies that drive marketing approaches.
Explain how a marketing exchange creates and delivers value to customers.
Outline the components of a marketing strategy, i.e., target market plus marketing mix, and discuss how they are used.
Describe the process of developing a marketing strategy to address a specific target with a cohesive marketing mix of product, place, price, and promotion.
Discuss the importance of marketing products and services through the eyes of brand champions.
Discuss pricing strategies and their influence on demand, profitability and perceptions of quality.
Describe how intensive, selective, and exclusive distribution strategies influence a strong competitive angle.
Discuss the difference between an idea and a product by outlining a workable revenue model.

What Is Marketing?

What is marketing? Initially people think marketing is advertising or selling. Yes, advertising and selling are part of marketing, but marketing is much more. The American Marketing Association defines marketingmarketing: The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (AMA) as the “activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have valuevalue: A consumer’s perception of the benefits of a particular product offering minus the costs. for customerscustomers: The actual or prospective purchaser of products or services , clients, partners, and society at large.”

Important Components of Marketing

This definition suggests two important components of marketing:

Marketing is the exchange that takes place between sellers and buyers.
Marketing creates, communicates, and delivers value to facilitate exchanges.

We add a third component to the definition, often referred to as the marketing concept:

By delivering value, marketing satisfies customer needs and wants, at a profitprofit: Total revenue minus total cost..

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