Marketing Strategies

Marketing strategies consist of selecting a target market and developing a marketing mix to satisfy that market’s needs. A target market is a defined group of consumers or organizations with whom a firm wants to create marketing exchanges. A marketing mix is the overall marketing offer to appeal to the target market. It consists of decisions in four basic areas: product (development of a product, service, or idea to exchange), pricing (what to charge for the exchange), integrated marketing communications (how to communicate with the target about the possible exchange), and distribution (how to get the product, service, or idea to the target market to consummate the exchange). Many marketing decisions must be made within the product, pricing, communications, and distribution areas.

The cosmetics industry is a good place to look for examples of different marketing strategies. For example, note that Maybelline, Mary Kay, and Clinique all market a variety of cosmetic products to define target markets. Brands differ, as do the prices charged, the methods of distribution, and the types of marketing communications. Each company effectively blends product, price, distribution, and integrated marketing communications decisions into a different marketing mix designed to serve its target market.

Comprehension questions:

1. What does marketing strategy consist of?

2. What is target market?

3. What is marketing mix?

Marketing Activities

Regardless of an organization’s specific marketing strategy, a number of different marketing activities must be performed to move products from producers to end users.

Buying and selling activities are required to finalize an exchange. The product assortments desired by buyers must be transported to appropriate locations and stored in inventory. The inventories must be financed and the risk associated with holding the inventory assortment assumed. Quality and quantity of product assortments must be standardized and graded. Finally, marketing information about buyers and competitors is needed to make marketing decisions.

Say you want to buy a DVD player. A number of DVD players’ producers (Toshiba, Sharp, Panasonic, Sony etc.) would like to sell you their brand. But it would be inefficient if you had to visit each producer to examine its product and then purchase directly from the factory. To facilitate the exchange process, the producers market their DVD players through various types of retailers, such as Circuit City.

So now you can go to Circuit City, try out different DVD-player brands, and easily purchase the one best suited to your needs. Circuit City has performed many of the marketing activities that are required to complete an exchange between you and the producer of DVD players. Circuit City buys an assortment of DVD-player brands, transports them to its retail outlets, and stores them there in inventory. It assumes the expense and risk of holding this inventory. It standardizes and grades the product quality and quantity. Because it wants to move the DVD players from inventory to end users, it advertises and promotes the brands it carries and the price at which it is willing to exchange each brand. Buyers come to the stores, talk with salespeople, and purchase desired brands.

This would be the typical approach for getting DVD players from producers to consumers. However, with the tremendous growth of the Internet, other options are available. You might go to the Web site of the DVD producers and obtain information about DVD players, locate dealers for its brand, and possibly make a purchase. Or, you can go to a shopping site, such as Amazon.com, and compare various DVD brands and purchase the one that best meets your needs.

One way or another, certain marketing activities must be performed for exchanges to occur between producers and end users. In some cases, marketing institutions, such as retailers like Circuit City, perform many of the marketing activities for producers. In others, most activities are performed by individuals within the producing firm. Sometimes consumers perform some of the required marketing activities.

Comprehension questions:

1. Why must marketing activities be performed?

2. What other options are available with the tremendous growth of the Internet?

3. Who perform marketing activities?

Referring to Unit 9