Tuesday, May 26, 2009

Marketing strategy

A 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.

Contents
1 Key part of the general corporate strategy
2 Tactics and actions
3 Types of strategies
4 Strategic models
5 See also
6 References
7 Further reading



[edit] Key part of the general corporate strategy
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Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (June 2008)

A marketing strategy is most effective when it is an integral component of 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[4].

Basic theory:

Target Audience
Proposition/Key Element
Implementation
The Five D's

[edit] Tactics and actions
A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service."

A strategy consists of a well thought out series of tactics to make a marketing plan more effective. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives[5]. Plans and objectives are generally tested for measurable results.

A marketing strategy often integrates an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy , which might include advertising, channel marketing, internet marketing, promotion and public relations can be orchestrated. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each one group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable.

Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics.


[edit] Types of strategies
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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:

Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are three types of market dominance strategies:
Leader
Challenger
Follower
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.
Product differentiation
Market segmentation
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:
Pioneers
Close followers
Late followers
Growth strategies - In this scheme we ask the question, “How should the firm grow?”. There are a number of different ways of answering that question, but the most common gives four answers:
Horizontal integration
Vertical integration
Diversification
Intensification
A more detailed scheme uses the categories [6]:

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

[edit] Strategic models
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Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (June 2008)

Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy.

Marketing in Practice

The Consumer-Centric Business

There are a many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges.The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps.

Real-life marketing primarily revolves around the application of a great deal of common-sense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven.

Aldred Riachi Ph.D Developed a new strategic approach called the Five D's of competitive Advantage. The model emphasized on adopting the following: Develope, Distinguish, Diagnose, Decisiveness and Doctrine.
Thus, for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable.

For most of their time, marketing managers use intuition and experience to analyze and handle the complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the knowledge of the customer which has been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This, almost instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by the theorists.


[edit] See also
Business model
Customer engagement
Market Segmentation

[edit] References
^ UK govt businesslink marketing strategy guide.
^ Marketbut strategy Australian administration small business guide.
^ Baker, Michael (2008), The Strategic Marketing Plan Audit, Cambridge Strategy Publications, p. 3, ISBN 978-1-902433-99-8
^ Baker, Michael (2008), The Strategic Marketing Plan Audit, Cambridge Strategy Publications, p. 27, ISBN 978-1-902433-99-8
^ Marketing basics Marketing strategy based on market needs, targets and goals.
^ 12Manage (2009). [http://www.12manage.com/methods_miles_snow_four_strategic_types.html Four Strategic Types (Raymond Miles and Charles Snow)]

Read Old Books to Think Great Thoughts

Today there is more to read than ever. Traditional and social news sites are filled with the latest buzz stories repeated ad nauseam. One is pressed to keep up. Amid the endless competition to make headlines and build traffic there is no enduring value.

When I read exclusively new material for an extended period I lose confidence. Each story seems to blend together into meaningless jargon. I feel empty and depressed. Nothing matters because whatever I learn today will be old news tomorrow. If you are someone searching for meaning in life, I am sure you have felt this way as well.

Whenever this happens, I have learned to turn back to the classics, the old enduring books that have stood the test of time and retain their luster. The common perception of old books is that they are antiquated and useless. Nothing could be farther from the truth. We believe, with our technology, that we have reinvented life. But this is not the case. The gadgets that surround us are minor details, the essence of life remains unchanged. It feels the same to be alive today as it did a thousand years ago. Look into yourself and you will know this is true. We are still lone souls confined to our thoughts, facing the same challenges.

Everything has its particular place. Old books cannot give you the weather forecast or teach you to write a javascript. But what they will teach you is how to live. They will teach you what it means to be human. They will give you a firm place to stand against the assault of constant change. The wisdom of the greatest human minds passed down through centuries is our most reliable asset.

I am not alone in this opinion. I leave you with this passage from the immortal Albert Einstein.

Somebody who reads only newspapers and at best the books of contemporary authors looks to me like an extremely nearsighted person who scorns eyeglasses. He is completely dependent on the prejudices and fashions of his times, since he never gets to see or hear anything else. And what a person thinks on his own without being stimulated by the thoughts and experiences of other people is even in the best case rather paltry and monotonous.

There are only a few enlightened people with a lucid mind and style and with good taste with a century. What has been preserved of their work belongs among the most precious possessions of mankind.

Nothing is more needed than to overcome the modernist’s snobbishness.

Improve Your Personal Effectiveness by Finding Balance

To go past the mark is as wrong as to fall short.

-Confucius

Could you believe that the ideal person is never the best at anything? Our heads are so full of delusions about wealth and power that we run ourselves ragged trying to out do each other. We spin our wheels until we burn ourselves out and are left hopeless and exhausted.

There is great pressure to attain the highest level of achievement. We want to be the richest, most beautiful, and most well-liked because these virtues are glorified. But by indulging our vanity we do ourselves more harm than good. The only way to achieve sustainable happiness is to practice the Golden Mean.

The idea of the Golden Mean has existed for thousands of years. It is at the core of both Eastern and Western philosophy and is central to the teachings of Aristotle and Confucius. The idea is simple. Every quality has extremes at both ends. The Golden Mean is the natural balance between these extremes. At this harmonious point goodness and beauty are achieved.

Socrates used the example of extreme devotion to athletics versus extreme devotion to music to illustrate this idea. The athlete becomes overly aggressive and ferocious, while the musician becomes overly soft and effeminate. The ideal is someone who practices both athletics and music in moderation and acquires a harmonious mixture of both qualities.

Consider an example from modern times that I’m sure everyone has observed. The first person is extremely career driven. Each day he focuses on advancing himself. He spends long hours at the office, competes mercilessly with his coworkers, and flatters his superiors. As a result he has almost no personal life. The second person’s only pursuit is leisure. He likes to waste time with his friends watching television and playing video games.

Which of these persons is superior? Many people would argue for the hard worker. But at second glance his life is rather cold. His obsession with success has alienated his coworkers and left him without a family. He may become rich, but how will he enjoy it? The second man is no better. He has wasted his life in laziness. He has refused to develop himself and exists as a parasitic leech. Both men are worthy of pity.

I think we’d all agree the ideal would be somewhere in between these two people. So how do we find the elusive Golden Mean? The bad news: it takes years of trial and error get it perfect, but fortunately, we can all improve if we try.

It all starts with setting the right goals. Whenever you make a goal you need to do it with the right intention. Don’t set goals with the intent to dominate other people. This type of goal setting is ego driven and pulls you away from the mean. Instead, try to start with a goal that is in between total selfishness and total selflessness. If you are helping yourself and other people at the same time you can draw motivation from your ego driven side and from the part of you that wants to work for the common good. This type of goal setting is effective because whenever you start to lose motivation in one area you can draw from the other.

The next step to reaching the Golden Mean is knowing your limits. You need to know when that next drink is going to put you over the edge or when one more project is going to stress you out. The idea is to maintain balance at all times. You need to police yourself to avoid extremity. If you know when you are inclined to stray you have a head start on achieving balance.

Another step to achieving the Golden Mean is being aware of your personal needs. Sure we need money and success, but having good relationships with friends and family are just as important. Whenever you find yourself unhappy, take a moment to reflect on the reason. You will likely find that you have drifted over to one extreme and are feeling the consequences.

I know the Golden Mean is hard to live by, but it is the key to finding your inner confidence. Ben Franklin said, “The wise learn from the mistakes of others, fools, scarcely from their own.” Next time you find yourself willing to do anything to be the best of the best, take a moment to reconsider. You may find it is better to be the best “you” you can be.

Overcoming a Loss of Motivation

How many times have you started a new activity (such as a personal project or exercise routine) with a burst of enthusiasm, only to see that initial momentum evaporate? This often leads to depression and causes us to give up prematurely. I’ve experienced this letdown dozens of times myself. But fortunately, with a bit of thought and reflection you can turn this negative emotion around.


The key to harnessing your emotions is understanding them. The natural pattern of human emotion is peaks and valleys. When we start a new project we’re filled with tremendous optimism. All we can think about is the expected benefits, and since we haven’t started yet, we aren’t aware of the difficulties involved. This natural high causes a surge of mental and physical activity. The peak is a great thing because the energy boost gets projects off the ground. If you’re a creative type like me, you know that this period is euphoric. You feel like nothing can stop you.

The downside of this surge of energy is that it inevitably ends. Exerting large amounts of energy wears you down, and after the initial optimism wears off we feel extremely tired. However high you started off, you fall down just as low. This causes a loss of confidence. The combination of fatigue, scant results, and an awareness of impending adversity makes us want to give up. From personal experience I’ve learned a few ways to hold strong against negativity.

Be Prepared for a Letdown
Emotions, by nature, lose their power when we understand them. Prove this to yourself. Next time you get angry, take a moment to reflect on the reason behind the emotion. When I step back and reflect, it’s easy to see that my anger is caused by insecurity/selfishness/jealousy etc. After I understand the cause my anger fades away.

The same technique applies to a loss of motivation. Instead of giving into negativity, step back and analyze. Look at the causes. Are you tired, burned out, disappointed by the results? Are these feelings justified, or are they a by product of a low point in the emotional spectrum?

To illustrate these ideas, I’ll use my most recent project as an example, the creation of this site. When I launched Pick the Brain it took an enormous amount of effort. I was completely new to blogging, web design, and traffic building so there was a steep learning curve. Writing new posts, setting up the site, and trying to build traffic took up nearly all my free time. After about three weeks I was completely burned out. I got depressed and started to question if the site was worth the effort. I wasn’t seeing any returns and I started to find enormous faults in my writing and the purpose of the site. There were moments when I was resigned to failure.

One reason I was able to overcome this loss of motivation is that I prepared myself for a letdown. Beforehand, I researched blogging and learned that it generally takes 9-12 months before a site begins to see significant traffic. Knowing that my lack of success was perfectly normal helped me get over it. The same is true for other endeavors. If you know losing 20 pounds in a month is unrealistic, you’ll be able to accept losing only 5 more easily.

I also knew my own emotions and was prepared for the initial emotional peak to pass. When I was first inspired to launch a website, my expectations were through the roof. Dreams of AdSense revenue danced in my head and I pictured throngs of loyal readers as if they already existed. But because I understand my emotional pattern, I realized this optimism would give way to depression. In the back of my mind, I foresaw the impending motivational battle, and when it came I was ready.

Reevaluate Your Strategy and Motivation
The passing of the emotional peak is a blessing in disguise because it allows us to reevaluate our plans from a fresh perspective. At first we are blinded by our own optimism. When we lose our motivation we can see gaping holes our in plan. We can either get down on ourselves and give up, or we can use this negative emotion to discover our faults and correct them. After I pulled myself out of the motivational cellar, I went back to all the negatives thoughts I’d had and applied them to improving the site. Having a pessimistic attitude opened my eyes. It made me realistic about my abilities and expectations. Emotional valleys bring us back to reality. Without them we’d be raving lunatics with unlimited self-confidence.

Use a loss of motivation as an opportunity to reconsider what your motivation really is. One reason I lost motivation is that I became too concerned with the financial aspect of blogging and lost sight of the real reason I started: sharing my passion for self improvement and the pursuit of happiness. When I realigned my motivation with my passion, the lack of results didn’t matter. My motivation returned because I realized connecting with people through my writing is an end in itself. Even if this site never makes I dime, sharing my ideas and experiences to help other people is worth the effort.

In truth, sometimes giving up is the right decision. If you started doing something for the wrong reasons you’ll likely lose your motivation. This is a good thing. It allows us to see what really motivates us. In these cases, the best choice is to move on to a new endeavor. Don’t fight self doubt, use it for your benefit.

Conclusion
Dealing with emotional highs and lows is an experience common to all people. We generally accept our emotions as beyond our control. They are powerful and mysterious and appear quite irrational. But if we contemplate our emotions, if we explore the inner workings of our minds, we find that like all things, emotions obey the law of cause and effect. Armed with this knowledge, we can continue to allow our emotions to dominate our lives, or we can use them to our benefit.

Don’t be surprised by a loss of motivation and don’t be disappointed by it. Understand it as natural effect of the human mind, and utilize this knowledge of self to make your emotions work for you.

How to Achieve Your Goals with Healthy Habits

Note: This is a guest post by Leo Babauta who blogs at Zen Habits about setting goals, creating habits, productivity, GTD, motivation, exercise and more.

We’ve all faced the disappointment and guilt that comes from setting a goal and giving up on it after a couple of weeks. Sustaining motivation for a long-term goal is hard to achieve, and yet the best goals can usually only be accomplished in a few months or even years.

Here’s the solution: Focus instead on creating a new habit that will lead to achieving your goal.

Want to run a marathon? First create the habit of running every day. Want to get out of debt and start saving? Create the habit of brown bagging it to work, or watching DVDs instead of going to the movies, or whatever change will lead to saving money for you.

By focusing not on what you have to achieve over the course of the next year, but instead on what you are doing each day, you are focusing on something achievable. That little daily change will add up to a huge change, over time … and you’ll be surprised at how far you’ve come in no time. Little grains of sand can add up to a mountain over time.

I used this philosophy of habit changes to run a marathon, to change my diet and lose weight, to write a novel, to quit smoking, to become organized and productive, to double my income, reduce my debt and start saving, and to begin training for an Olympic triathlon this year. It works, if you focus on changing habits.

Now, changing your habits isn’t easy — I won’t lie to you — but it’s achievable, especially if you start small. Don’t try to change the world with your first habit change … take baby steps at first. I started by just trying to run a mile — and by the end of the year, I could run more than 20 miles.

How do you change your habits? Focus on one habit at a time, and follow these steps:

Positive changes. If you’re trying to change a negative habit (quit smoking), replace it with a positive habit (running for stress relief, for example).
Take on a 30-day challenge. Tell yourself that you’re going to do this habit every day, at the same time every day, for 30 straight days without fail. Once you’re past that 30-day mark, the habit will become much easier. If you fail, do not beat yourself up. Start again on a new 30-day challenge. Practice until you succeed.
Commit yourself completely. Don’t just tell yourself that you might or should do this. Tell the world that DEFINITELY will do this. Put yourself into this 100 percent. Tell everyone you know. Email them. Put it on your blog. Post it up at your home and work place. This positive public pressure will help motivate you.
Set up rewards. It’s best to reward yourself often the first week, and then reward yourself every week for that first month. Make sure these are good rewards, that will help motivate you to stay on track.
Plan to beat your urges. It’s best to start out by monitoring your urges, so you become more aware of them. Track them for a couple days, putting a tally mark in a small notebook every time you get an urge. Write out a plan, before you get the urges, with strategies to beat them. We all have urges to quit — how will you overcome it? What helps me most are deep breathing and drinking water. You can get through an urge — it will pass.
Track and report your progress. Keep a log or journal or chart so that you can see your progress over time. I used a running log for my marathon training, and a quit meter when I quit smoking. It’s very motivating to see how far you’ve come. Also, if you can join an online group and report your progress each day, or email family and friends on your progress, that will help motivate you.
Most important of all: Always stay positive. I learned the habit of monitoring my thoughts, and if I saw any negative thoughts (”I want to stop!”) I would squash it like a little bug, and replace it with a positive thought (”I can do this!”). It works amazingly. This is the best tip ever. If you think negative thoughts, you will definitely fail. But if you always think positive, you will definitely succeed.

14 Ways To Procrastinate Productively

For too long I’ve sat idly by while the good name of procrastination is dragged through the muck. For the sake of getting things done we’re advised to banish, kill, and avoid procrastination without any acknowledgment of the good it’s done.

We owe procrastination. Big time. It’s responsible for our best ideas and busiest hours. Used effectively, procrastination is a powerful motivator and source of inspiration.

Structured Procrastination

Productive procrastination falls into two categories, structured and unstructured. With structured procrastination (via pmarca, via via 43F) you use the desire to avoid an important task as motivation to crank out dozens others. Anything to postpone what you really need to do, right?

Whenever I need to avoid something important, I turn to a few tasks that rarely get the attention they deserve.

Get Organized - There’s no better way to feel productive while avoiding the inevitable than organizing your home or work space. Without procrastination my desk would be perpetually cluttered and the dishes would never get done.
Network - Have a bunch of contacts you should really touch base with but don’t have the time? Procrastination is a great opportunity to politely reply to nonessential email. Taking the time to stay in touch with people pays dividends in the long-run.
Plan Ahead - The only thing better than actually doing something is thinking/talking about doing something. Take the time to identify, record, and schedule all your tasks, obviously leaving the most important for last.
Odds and Ends - Procrastination is the best time to find closure for everything that’s on your mind. Use it as an excuse to investigate and resolve issues that have been nagging you.
Meetings - If you’re not going to be productive, you might as well take other people down with you.
Errands - Need to schedule a dentist appointment? How about that oil change? Procrastination is capable of making the most tedious and trivial errands appealing.
Get Up To Date - Have a bunch of dull reports and memos you should probably read? They’re starting to look a lot more interesting.
Assist Others - If you’re not going to do your own work, you can at least deliver on the help you promised your colleague last week.
Unstructured Procrastination
Structured procrastination is a great way to keep busy, but sometimes that doesn’t cut it. When you’d rather not do anything work related, unstructured procrastination is the way to go. It might seem like laziness, but what’s wrong with that?

Unstructured procrastination is essential for recharging creative energy and allowing the unconscious mind to work on difficult problems. These are 6 productive ways to avoid work completely.

Go to Lunch - You need to eat, might as well do it now so you can’t use it as an excuse later.
Exercise - Same as lunch, with the added benefit of increased alertness.
Take a Walk - A casual walk is a great way to unburden your mind and allow great ideas to come to you.
Relax - If you feel a strong desire to procrastinate, there’s probably a reason behind it. Relax ation is important for a healthy productive lifestyle, why not do it now when you can’t get anything else done?
Come Up With a Great Idea - This one can’t exactly be completed on demand, but studies have shown that entrepreneurs and other creative people tend to get their best ideas during down time.
Read a Good Book - If you’d rather not think for yourself, you might as well absorb the great ideas someone else took the trouble to record.