Before making marketing strategy the company discovers different needs and groups in market place, target those needs and groups that it can satisfy in a best and superior way and then positions its offering so that the target market recognized the company’s distinctive offerings and image. The following are the points, which need to be consider before making a good marketing strategy.1. Target customers2. Price range3. Value proposition4.
SWOT analysis5. PEST analysis6. Product lifecycle7. Market segment8. Marketing mix9. Brand loyaltyTarget customersBefore making a good marketing strategy the company should identify the target customers the company should reach. For this purpose the market research can be conducted by a way of using primary or secondary data. Under primary data the interviews, group discussions and questionnaires can be made.
Price rangeBefore making a good marketing strategy we should know about the price range, which a customer is ready to pay for a particular product or service. Here for this product we can collect the data about the marginal propensity to consume (MPC) for target customers. So we can set a pricing strategy which can give the consumer full satisfaction and utility as this is the economic principle that the consumer always will be ready to pay the price which is equal to the marginal utility he get out of a particular product.
Value propositionUnder value proposition it is analyzed what value of the product is proposed and perceived by a consumer. While deciding the market strategy of the product the company should collect the data regarding customer focused value proposition. So that the product can be successfully launched in market.
SWOT analysisBefore making the market strategy the company should do the SWOT analyze which is a tool of auditing the organization and its environment. SWOT analyze stands for:* S = Strength* W = Weakness* O = Opportunities* T = ThreatsThe strength and weaknesses are always from the internal forces. Opportunities and threats are always from external forces. For e.g. SWOT analyze for Nokia.SWOT analysis for NokiaStrengths* They have good reputation – global brand* They manufacture quality phonesWeakness* Too many Nokia models with same features* ExpensiveOpportunities* 3-G development* New technologyThreats* Other competitors like Sony Ecrission, Samsung and Phillips* Government intervention in pricingStrengthsNokia is a global brand. It is the world leader in mobile communications.
Backed by its experience and secure solutions, the company is the leading supplier of mobile phones.Nokia is the manufacturer of some top range phones like:* Nokia 8210* Nokia 8250* Nokia 8310* Nokia 7650WeaknessTheir weakness is that they have too many Nokia models with same features. Nokia models like 3310,3330,3315 and 3510. Even thoughthese models came in the market at different times but they had the same features with little difference in the shape.
Some Nokia phones are expensive. Models like 8850,8910,7650 costs about ï¿½250-ï¿½300 per phone in retail price.Opportunities3-G development means web will be many times quicker, richer in voice, video and multi-media. The fixed infrastructure we have today will be taken over by wireless and satellite links.ThreatsThere are competitors who are developing same kind of technology in mobile phones. Phones like Sony T68i can be compared to Nokia 7650 because they both have mobile camera.
Samsung T100 model have colour screen, which is same as Nokia 7650. These competitors can bring big competition in the mobile phone market.Government intervention in pricing decreases Nokia’s mobile phone profit. Nokia can’t increase the prices of the mobile phone even if it is in great demand.PEST analysisPEST analysis is one of the useful ways to analyze the environment before making a marketing strategy. PEST stands for:* P = Political* E = Economic* S = Social* T = TechnologyPolitical factorUnder political factor the marketing strategy is influenced by changes in tax structure, privatization, trade union, duties and tariffs. Regulatory constaints such as quality and safety standards.Economic factorUnder economic factor one has to analyze the condition if economy such as economic growth, influation, unemployment, energy prices, income distribution and price volatility.
Social factorUnder social factors the company have to collect the data about consumer life cycle, environmental issues, demographic issues (age and sex distribution, birth rate, death rate, education, religion).Technological factorUnder technological factors the organizations have to look at the nature of their product, their cost effectiveness for this purpose the organization have to collect the data about new technology, better equipments, new product developments, energy saving techniques, new material substitutes available.Product lifecycleFor making a successful marketing strategy Product lifecycle is very important factor to be considered. The life of the product is a period over which a product remains appealing and attractive to customers. There are four stages in the product lifecycle.1. Introduction2.
Growth3. Maturity4. DeclineIntroductionIn the introduction stage the growth of the product is slow and volume is low because of limited awareness.GrowthIn this stage we add some new features in the product to promote its sale.
MaturityIn this stage there is a need of product differentiation in form of new flavours, colours and sizes.DeclineLast stage is decline where the product becomes absolute and unprofitable.While deciding the marketing strategy we have to study at which stage the product is at present, because different stages needs different strategies.Market segmentWhile making a good marketing strategy we have to collect the data about the various segments of the customers which are decided on the basis of age, sex, income group, geography etc.Marketing MixFor making a good marketing strategy the business needs to combine the marketing strategies that fit together in a way that meets customer’s needs. The marketing mix provides us with a useful way of looking at the marketing of the product. The organization needs to create the successful and optimum mix of the right product sold in right place at the right price using the most suitable form of promotion. So the company has to collect the data about these four Ps.
Apart from these 4 Ps the people, the provision of customer services and the process management ate the latest Ps, which should be considered while developing a marketing strategy to meet customer’s needs.1. Price2. Place3. Promotion4.
ProductBrand loyaltyWhile deciding about a good marketing strategy the company has to collect the data about how much a customer is loyal towards a particular brand. So the company have to collect the data regarding this.