Essentially, a marketing strategy aims to deliver the following:1 Segmentation
This process breaks the market down into groups displaying common
characteristics, behaviours and attitudes. Fundamentally, this process
aims to understand need and forecast reaction and/or demand.
2 Targeting
This involves evaluating and selecting market segments. We aim to
look for opportunities which are sustainable, where we can build long-
term relationships with customers.
3 Positioning
As previously stated, we establish a distinctive superior position, rela-
tive to competitors. The competitive position adopted, should be
based on matching product attributes to customer need.
It goes without saying that the three key constituents of marketing strategy –
customers, competitors and internal corporate factors – are dynamic and
constantly changing (summarised in section Change – shaping strategy).
Therefore, organisations must develop and deploy processes, procedures
and techniques that ensure market strategy is: (a) relative to the current/
future business environment, (b) sustainable, (c) generating optimal bene-
fits to both the organisation and customers and (d) correctly implemented.
This is the process of strategic marketing management.
As a process, strategic marketing (and the subsequent structure of this
book) has three distinct phases.
1 Strategic analysis
To move forward, we must first answer the question; where are we?
This stage entails a detailed examination of the business environment,
customers and an internal review of the organisation itself. Tools such
as portfolio analysis and industry structure models help management
to objectively assess the organisation’s current position. Equally, it is
important to develop some view regarding future trends. This is
achieved through forecasting and defining assumptions about the
future market trends.
The strategic perspective 13Illustrative Example 1.2
Fairtrade – An independent consumer label
Marketers are critically aware of the importance of branding. A brand can be defined as:
A distinctive product offering created by the use of a name, symbol, design, packaging or some com-
bination of these intended to differentiate it from its competitors(Jobber, 2004).
From a marketing perspective Fairtrade provides the consumer with a brand identity that
independently guarantees labelled products will offer disadvantaged producers in the develop-
ing world a better deal. Products are licensed by the Fairtrade Foundation and require suppliers
to meet Fairtrade standards in relation to factors such as sustainable production costs and social
or economic developed.
(Continued)