STRATEGIC VS.

TACTI
CAL
MARKETING
MARKETING
STRATEGIC MARKETING DEFINITION

•Marketing strategy is used by different companies to collaborat

e with their consumers. It is also employed to aware the custom
ers about the features, specifications and benefits of company’s
products. It is basically focused on encouraging target populatio
n to buy those specific products and services. The marketing str
ategies might be totally innovative or they can be previously tri
ed or tested strategies.

•The strategic marketing process seeks to establish a clear and c

oncerted direction for all marketing activities of an organization
.
• 5 STEPS IN MARKETING STRATEGY
The company mission statement is articulated.

• -A mission statement defines what an organi

zation is, why it exists, its reason for being, it
s primary customers, the products and servic
es and its geographical area of operations.
This step asses and evaluates the market, cust
omers, competitors, and the company’s intern
al and external environment.

• The objective is to identify the company’s str

ength and weaknesses, as well as the availabl
e opportunities and possible threats.
•Objectives are marketing targets that are Specific,
Measurable, Attainable, Realistic and Time-Bound.

•These targets include sales revenues, market shar

e or profit.

•These are used as basis of strategy selection and

development.
• The development of marketing strategy involv
es market segmentation, identification of target
market, positioning, selection of broad marketin
g strategies and translation of strategies into ac
tion plans.
Classification of Marketing Strate
gies
• Cost Leadership
-this strategy primarily for achieving low cost leadership among
industry competitors.

-this can be achieve through low cost supply contracts, overhea

d expense control, economic scale, and comprehensive cost-cutting
efforts.

• Differentiation
-differentiation seeks to achieve superior product attributes that a
re different from industry competitors.
 -this result in pronounced consumer preference for the company’s pro
ducts.

 Focused
-efforts are concentrated on a relatively small but profitable mark
et.

-the development of products and services primarily ensures tha

t the needs and wants of these market are addressed and that satisfac
tion is provided.
Marketing Strategies Subcategori
es
 Forward Integration
-this involves gaining ownership or increased control over distri
butors or retailers.

 Backward Integration
-this involves gaining ownership or increased control over supp
lies.

 Horizontal Integration
-this involves purchase of or increased control over competitor
s.

 Vertical integration
-is a strategy where a company expands its business operation
s into different steps on the same production path, such as wh
en a manufacturer owns its supplier and/or distributor.
Market Penetration
-the objective of this strategy is to increase market
share of current products or services in current ma
rkets through greater and more intensive marketin
g efforts.

Market Development
-this strategy involves the introduction of existing p
roducts or services into a new geographical area of
market.

Product Development
-this strategy involves the improvement of current
products with the purpose of increasing sales.
Related Diversification
-the objective of this strategy is to increase market
share of current products or services in current ma
rkets through greater and more intensive marketin
g efforts.

Unrelated Diversification
-this involves introducing new but unrelated produ
cts or services.

Retrenchment
-this involves halting or reversing declining sales an
d profits through cost or asset reduction.
• after the strategy is developed, periodic mon
itoring and evaluation is needed.
• This is necessary to identify deviations and n
ecessary adjustments and corrections.
TYPES OF STRATEGIC MARKETING
1. Word of mouth
-It totally relies on what impression you leave on p
eople. It is traditionally the most important type of
marketing strategy. Being heard is important in bus
iness world. When you give quality services to cust
omers, it is likely that they’d promote you.
2. Paid advertising
-This includes multiple approaches for marketing. I
t includes traditional approaches like TVCs and prin
t media advertising. Also, one of the most well-kno
wn marketing approach is internet marketing. It in
cludes various methods like PPC (Pay per click) and
paid advertising.
3. Social Media Marketing Strategy
-Social media platforms now offer businesses of
all sizes unprecedented opportunities to reach n
ew consumers. There are currently a number of
social media outlets including Facebook, Twitter,
LinkedIn, Google+, and Instagram among others.
Depending on the demographics of your custom
ers, different platforms are more suitable than o
thers.
What separates successful social media campaig
ns from unsuccessful ones is persistence and co
nsistency. It is essential that you regularly post t
o these websites to increase your exposure to n
ew clients.
4. Seasonal Marketing
-Seasonal events offer a great way to meet ne
w consumers. Sometimes these events can be
actual changes of weather or national holidays
. For a retailer like
Hallmark Valentine’s Day represents a large po
rtion of their business. By tuning into the vario
us seasons that are important to your custome
rs you can become more relevant in their lives.
5. Direct Marketing
-Communicate directly with customers and prospects thr
ough mail, email, texts, fliers and other promotional mat
erial.
6. Free Sample Marketing
-Unlike Freebie Marketing, this is not dependent on com
plementary marketing, but rather consists of giving away
a free sample of the product to influence the consumer t
o make the purchase.
7. Tradeshow Marketing
-Many products have to be experienced to be bought. Th
ere are very few customers that will buy a new automobi
le without doing a great deal of research and test-driving
the car first. Tradeshows are industry gatherings where c
ustomers are invited to come sample all that the industry
POINTS TO FONDER FOR MARKETING
There are different types of marketing strategies available
. You have to pick one as per your business requirement.
Before choosing the right marketing strategy for your busi
ness, consider following points.
1. Define the target population
-Defining target population is main and necessary step in
choosing your marketing strategy. It gives the proper dem
ographics which help in selecting the most appropriate m
arketing plan for your business.
2. Test your audience
-Create a hypothetical process of buying to test your audi
ence. Once you know the buying behavior of your target a
udience, you can select more appropriate marketing strat
3. Consider marketing strategies
-Once you know the demographics; their kn
owledge, attitudes and behaviors. You can s
elect more appropriate marketing strategy.
4. Evaluate those strategies
-Once you have considered the marketing str
ategies and found the applicable ones. Asses
them, apply them and evaluate them. This p
rocess must be for testing purposes and the
most suitable and productive strategy must
be applied.
EXAMPLE:
•DEFINITION OF TACTICAL MARKETING
Tactical marketing tools are the activities you use
to execute your marketing plan to meet your obje
ctives. When you develop or create a product or s
ervice, you design it with specific people in mind
who are likely to need it and use it, and then deve
lop ways to let them know about it and deliver it t
o them. That is marketing. You develop tactics ba
sed on your strategies, or methods youll use. Use
tactics for each of your marketing Ps: product, pri
ce, place and promotion. Research your customer
s to determine the most effective tactics to use.
1. Product Tactics
Your product is the service or product you develop and design. Tactical m
arketing tools for products include adding product features, such as an a
utomatic shut-off feature on an electric heater if it tips over. Offering pro
duct bundles is another tactic. An example is bundling or including free s
oftware or batteries with your product, or a virus check included with yo
ur web design services. A warranty is another tactic. How you package y
our product to appeal to your customers is also a tactic. For example, if y
ou are targeting high-end customers you want your packaging to reflect l
uxury or exclusivity.
2. Price Tactics
Pricing tactics are important, as this marketing component is the only on
e that generates revenue for you -- all other components are expenses. It
s also the most difficult. Examples of price tactics include psychological p
ricing, such as pricing your product at $99.99 instead of $100. Other tacti
cs include meeting a competitors price or including the cost of shipping.
You might also use tactics based on geographical regions, setting prices h
igher in one area versus another. Setting attractive payment terms, havin
g an introductory price for a new product or service are other examples.
3. Place Tactics
Where and how you distribute your product or offer your service is
your "place" in your marketing plan. If you have a retail store, that i
s your place of distribution, but you can include tactics such as onlin
e sales or taking custom orders. Other examples are setting up mall
kiosks or stall booths at festivals and markets. Using mobile vendors
and in-home parties or events are also tactics. Depending on your b
usiness, it may make sense to use resellers to market your product u
nder a different name as a tactic for distribution, especially if they al
ready have a large customer base.
4. Promotion Tactics
Promotional tactics are tools you use in your advertising, public rela
tions and sales strategies to communicate about your products and
services and get people to buy them. Examples of advertising tactics
include print, online, television and radio ads. Holding an open hous
e, issuing a press release introducing a new or upgraded product an
d having a media demonstration are examples of public relations tac
Where do your clients look for your service or product?

What kind of stores do potential clients go to? Do they shop in

a mall, in a regular brick and mortar store, in the supermarket,
or online?

How do you access the different distribution channels?

How is your distribution strategy different from your competito

rs?

Do you need a strong sales force?

Do you need to attend trade fairs?

Do you need to sell in an online store?

How can you send marketing messages to your potential

buyers?

When is the best time to promote your product?

Will you reach your potential audience and buyers

through television ads?

Is it best to use the social media in promoting the

product?

What is the promotion strategy of your competitors?

Tactical Marketing Vs. Strategic Marketing