Factors that affect a firm’s marketing strategy

Content

I. Introduction ………………………………………………………………….....3

II. Factors that influence a firm’s marketing strategy: …………………………..5

1) Target customers………………………………………………………………...5

2) Role of 4 Ps of the Marketing Mix in Marketing Strategy:……………………..6

a) Product…………………………………………………………………………..6

b) Price……………………………………………………………………………...7

c) Place……………………………………………………………………………...8

d) Promotion………………………………………………………………………...8

3) Marketing Systems: …………………………………………………………….9

a) Marketing Information System…………………………………………………...9

b) Marketing Planning System……………………………………………………....9

c) Marketing Organization and Implementation System…………………………...10

d) Marketing Organization System…………………………………………………10

4) Microenvironmental factors: …………………………………………………….11

a) Marketing intermediaries………………………………………………………...11

b) Publics……………………………………………………………………………12

c) Competitors………………………………………………………………………12

d) Suppliers………………………………………………………………………….13

5) Macroenvironmental factors: ……………………………………………………14

a) Demographic/Economic Environment…………………………………………...14

b) Technological/Physical Environment…………………………………………….14

c) Social/Cultural Environment……………………………………………………..15

d) Political/ Legal Environment……………………………………………………..15

III. Conclusion………………………………………………………………………..16

IV. References………………………………………………………………………..17

Introduction

Marketing strategy of the company is an action plan, which shows how to use firm’s limited resources to achieve organizational goals and increase firm’s profits. Currently more and more companies try to create alternative solutions in order not to overspend firm’s marketing budget. Hence, they try to spend less money on big and expensive promotional campaigns and allocate money in cost - effective way. For example, some television companies in Kazakhstan, such as Channel 7, do not hire external advertising agencies for their promotional campaigns, on the contrary, they use their internal creatives who can allocate money more efficiently due to deep knowledge of all firm’s products and offerings rather than external agenciesz. Moreover, you should be able to adjust your firm’s marketing strategy to the changing environment: react on competitors’ policies, be up to date with current consumer trends, be able to meet legal reqirements, etc. The other thing is that some firms focus on short-term plans rather than long term. For instance, many companies set the goal to increase sales for the short period of time in order to recover the costs of production. However, this strategy can be successful for the first few years. After some time the company can meet difficulties in its long-term plan: sales may drop and firm can lose the customers. In order to avoid all these possible problems, during the creation of the marketing strategy company should carefully review all the factors that can influence it.

There are a lot of factors that influence firm’s marketing strategy and each one of them is very important. Without right functioning of one factor, the whole marketing strategy can fail. If you ask some companies what factors they consider as the most powerful within marketing strategy, you will get different answers because different firms work in different industries, and for some one factor will be more influential than the other. I want to discuss different factors that influence firm’s marketing strategy by using the following chart:

As you can see from the scheme, the central part of the marketing strategy is target customers. Marketing mix, which is also known as famous 4 Ps surround the customers, meaning that all 4 Ps should be adjusted to the target customers. In order to sucessfully implement all marketing mix elements there shoud me special marketing systems such as marketing informations system, marketing planning system, marketing organization and implementation and marketing organizaton system. The next thing is internal factors: suppliers, marketing intermediaries, publics, and competitors. Finally, there are large forces – external factors of the marketing strategy: demographic/economic environment, technological/physical environment, social/cultural environment, political/ legal environment. Each one of them I will try to discuss using the examples from my home country Kazakhstan. As you see, different factors demand individual consideration and understanding, so at the end the combination of all of the factors will give clear picture of how to make your marketing strategy strong and successful.

Дата добавления: 2015-10-28