Marketing strategy[1][2] is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.[3] A marketing strategy should be centered around the key concept that customer satisfaction is the main goal.

Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.

Basic theory:

1. Target Audience 2. Proposition/Key Element 3. Implementation

Types of Marketing Strategy

One of the most important concepts of the marketing planning process is the need to develop a cohesive marketing strategy that guides tactical programs for the marketing decision areas. In marketing there are two levels to strategy formulation:

y General Marketing Strategies y Decision Area Strategies General Marketing Strategies

These set the direction for all marketing efforts by describing, in general terms, how marketing will achieve its objectives. There are many different General Marketing Strategies, though most can be viewed as falling into one of the following categories:

y Market Expansion y Market Share Growth y Niche Market y Status Quo y Market Exit General Strategies: Market Expansion

With this strategy marketers look to grow overall sales in one of two ways:

y Grow Sales with Existing Products ± With this approach the marketer seeks to actively increase the overall sales of products the company currently markets. This can be accomplished by:

1. getting existing customers to buy more 2. getting potential customers to buy (i.e., those who have yet to buy) 3. selling current products in new markets.

y Grow Sales with New Products ± With this approach the marketer seeks to achieve objectives through the introduction of new products. This can be accomplished by:

1. introducing updated versions or refinements to existing products 2. introducing products that are extensions of current products 3. introducing new products not previously marketed. General Strategies: Market Share Growth

This strategy looks to increase the marketer¶s overall percentage or share of market. In many cases this can only be accomplished by taking sales away from competitors. Consequently, this strategy often relies on aggressive marketing tactics. General Strategies: Niche Market

This strategy looks to obtain a commanding position within a certain segment of the overall market. Usually the niche market is much smaller in terms of total customers and sales volume than the overall market. Ideally this strategy looks to have the product viewed as being different from companies targeting the larger market General Strategies: Status Quo

This strategy looks to maintain the marketer's current position in the market, such as maintaining the same level of market share. General Strategies: Market Exit This strategy looks to remove the product from the organization¶s product mix. This can be accomplished by:

1. selling the product to another organization 2. eliminating the product the company's product offerings Decision Area Strategies

These are used to achieve the General Marketing Strategies by guiding the decisions within important marketing areas (product, pricing, distribution, promotion, target marketing). For example, a General Marketing Strategy that centers on entering a new market with new products may be supported by Decision Area Strategies that include:

y Target Market Strategy ± employ segmenting techniques y Product Strategy ± develop new product line y Pricing Strategy ± create price programs that offer lower pricing versus competitors y Distribution Strategy ± use methods to gain access to important distribution partners that service the target market y Promotion Strategy ± create a plan that can quickly build awareness of the product

Achieving the Decision Area Strategies is accomplished through the development of detailed Tactical Programs for each area. For instance, to meet the Pricing Strategy that lowers cost versus competitors¶ products, the marketer may employ such tactics as: quantity discounts, trade- in allowances or sales volume incentives to distributors.

Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:

y Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies: o Leader o Challenger o Follower o Nicher y Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm¶s sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow. o Product differentiation (broad) o Cost leadership (broad) o Market segmentation (narrow) y Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: o Pioneers o Close followers o Late followers y Growth strategies - In this scheme we ask the question, ³How should the firm grow?´. There are a number of different ways of answering that question, but the most common gives four answers: o Horizontal integration o Vertical integration o Diversification o Intensification

A more detailed scheme uses the categories[6]:

y Prospector y Analyzer y Defender y Reactor y Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies.