What is Strategic Marketing?

Summary

In this video, Professor Wolters delves into the concept of marketing strategy, emphasizing its importance as a plan of attack to win in the market. He discusses the marketing mix, including product, price, place, and promotion, and the need to adapt to market demands and competition. The video highlights the significance of understanding customer value, choosing the right distribution channels, and timing product releases. It also touches on the importance of communication in conveying product value and differentiating from competitors, ultimately aiming for a sustainable competitive advantage.

Takeaways

• 📘 Marketing Strategy Defined: It's a plan of attack to win in the market by reaching out to customers and communicating effectively.
• 🚀 Importance of Planning: A marketing strategy is essential for figuring out how to succeed with a product or in a specific industry niche.
• 🛍️ Product Consideration: The strategy involves deciding what products or services to offer that customers will find valuable and be willing to purchase.
• 💰 Pricing Strategy: Determining the value of products in the target market and communicating the reasons behind different price points is part of the strategy.
• 📍 Place Strategy: Choosing the right distribution channels and locations for products can affect perceptions and sales.
• 📅 Timing is Key: Deciding the optimal release date for products or services can significantly impact their success in the market.
• 🤝 Communication Strategy: A crucial part of marketing strategy is how to effectively communicate about the new product, its pricing, and its value proposition.
• 🔍 Analyzing the Market: A successful strategy takes into account customers, competition, and the industry to develop a competitive advantage.
• 📱 Mobile Phone Example: The script uses mobile phones to illustrate how different market segments have unique needs and how strategies must be tailored accordingly.
• 🔄 Adaptability: Marketing strategies are not set in stone; they must be flexible to adapt to changes in the market or competition.
• 🛠️ Strategic Planning Tools: The script suggests using various strategic planning models, such as SWOT analysis and the five forces, to inform marketing strategies.

Q & A

What is the main focus of the video script provided?

The main focus of the video script is to explain the concept of marketing strategy, how it is a plan of attack to win in the market, and how it involves various aspects of the marketing mix such as product, price, place, and promotion.

What is the definition of marketing strategy according to the script?

According to the script, a marketing strategy is a plan to reach out to customers, figure out where to sell products or services, and how to communicate with those customers effectively to succeed in the market.

How does the script relate the concept of marketing strategy to the marketing mix?

The script relates marketing strategy to the marketing mix by stating that it involves taking the marketing mix components—product, price, place, and promotion—and creating a plan to succeed with them in the market.

What is the importance of understanding the target market's perception of value in pricing strategy?

Understanding the target market's perception of value is crucial in pricing strategy as it helps determine the right price point that the market is willing to pay for the product or service, which is part of the overall marketing strategy.

Why is it important to consider the location or place when developing a marketing strategy for a new computer?

The location or place is important because it can influence consumer perception. For example, selling a computer at Best Buy might make it seem more advanced than selling it at Walmart, which is part of the strategic decision-making process.

How does the script use the example of movie release dates to illustrate the importance of timing in marketing strategy?

The script uses the example of movie release dates to show that timing is a strategic decision that can affect the success of a product. Releasing a movie at different times of the year can cater to different audience behaviors and preferences.

What factors should be considered when developing a marketing strategy according to the script?

Factors to consider when developing a marketing strategy include understanding the customers, analyzing the competition, considering the industry trends, and planning the communication strategy to effectively promote the product or service.

How does the script suggest that a marketing strategy should be flexible?

The script suggests that a marketing strategy should be flexible by comparing it to a GPS, which gives a route but allows for detours or changes in plans when faced with unexpected challenges or opportunities.

What is the role of a marketing strategy in achieving a competitive advantage?

A marketing strategy plays a crucial role in achieving a competitive advantage by helping a company focus its efforts, understand its target market, and differentiate itself from competitors in a way that is sustainable over time.

How does the script use the example of mobile phones to explain the concept of niche marketing?

The script uses the example of mobile phones to explain niche marketing by discussing how companies like BlackBerry targeted the business market with specialized features, and how the strategy had to evolve with changing market conditions and the rise of smartphones.

What is the significance of identifying the target market for a mobile phone company according to the script?

Identifying the target market is significant because it helps the company tailor its products and services to meet the specific needs and preferences of that market segment, whether it's for personal use, business, or specialized industries.

Outlines

00:00

📈 Strategic Marketing: The Plan to Win

Professor Wolters introduces the concept of strategic marketing, emphasizing the importance of a well-thought-out plan to succeed in the market. He explains that marketing strategy encompasses a company's approach to reaching out to customers, determining where to sell products, and how to communicate with the target audience. The professor discusses the marketing mix, including product, price, place, and promotion, and how these elements are integral to formulating a winning strategy. He also touches on the need to consider the value proposition, the difference in pricing strategies based on context, and the importance of choosing the right distribution channels and release timing for products and services.

05:02

🛠 Adapting Marketing Strategies: Flexibility and Competition

In the second paragraph, Professor Wolters discusses the dynamic nature of marketing strategies, highlighting the need for adaptability in response to unforeseen circumstances such as competitor actions or supply chain issues. He stresses the importance of considering various factors like customer needs, competitive landscape, and industry trends when developing a marketing strategy. The summary also includes the professor's advice on using marketing strategy to identify areas of focus for developing a competitive advantage. Examples provided include targeting specific markets like business phones, and adapting strategies based on market shifts, as illustrated by the transition of BlackBerry from a business-focused to a broader smartphone market, and Apple's initial focus on the consumer market before being adopted by businesses.

Keywords

💡Strategic Marketing

Strategic marketing refers to the planning and execution of marketing initiatives that are designed to achieve specific business goals. It is central to the video's theme as it outlines how to formulate a plan to reach out to customers and succeed in the market. The script discusses how strategic marketing involves creating a plan of attack to win over customers and compete in the industry.

💡Marketing Strategy

Marketing strategy is a comprehensive plan that outlines how a company will reach its marketing goals. It is the core of the video's content, with the professor emphasizing its importance in determining how to offer products or services, set prices, and communicate with customers effectively. The script uses the term to describe the overall approach to succeed in different market areas.

💡Marketing Mix

The marketing mix is a set of controllable variables that a company uses to meet the needs of its target market, typically referred to as the '4Ps': Product, Price, Place, and Promotion. In the script, the professor explains how the marketing mix is used to devise a plan to succeed, highlighting its role in formulating a company's marketing strategy.

💡Product

In the context of the video, a product refers to the goods or services offered by a company to its customers. The script discusses how a company's marketing strategy should consider what products or services to offer that customers will find valuable, using the example of McDonald's and a bar to illustrate the difference in value perception.

💡Price

Price in the video script represents the monetary value that customers must exchange to obtain a product or service. The professor discusses how a marketing strategy should include determining the value that the target market places on the products or services, and how to communicate that value to the customers, as exemplified by the difference in pricing between a McDonald's burger and a bar burger.

💡Place

Place in the marketing context refers to the channels through which a company distributes its products to reach the target market. The script uses the example of a new computer being sold at Walmart versus Best Buy to illustrate how the choice of place can affect product perception and strategy.

💡Promotion

Promotion is the element of the marketing mix that encompasses various methods used to communicate the merits of a product or service to potential customers. The video script discusses how a marketing strategy should include a plan for promotion, including how to let people know about the new product and its value proposition.

💡Competitive Advantage

A competitive advantage is a characteristic or attribute that enables a company to perform better than its competitors. The script mentions the importance of developing a marketing strategy to create a competitive advantage, with the aim of staying ahead in the market, using the example of how mobile phone companies differentiate themselves.

💡Sustainable Competitive Advantage

A sustainable competitive advantage is a long-term advantage that a company has over its competitors, which is difficult for others to replicate. The professor in the script emphasizes the goal of creating such an advantage through marketing strategy, to ensure ongoing success in a competitive market.

💡Niche

A niche refers to a targeted market segment that a company serves, often with specialized needs or interests. The script discusses how companies should identify their niche as part of their marketing strategy, using the examples of BlackBerry focusing on the business phone market and OtterBox targeting industries where phone durability is crucial.

💡Adaptability

Adaptability in the context of the video refers to a company's ability to change its marketing strategy in response to market conditions or competitive actions. The script uses the example of BlackBerry needing to change its strategy when faced with the rise of smartphones to illustrate the importance of being able to adapt.

Highlights

Marketing strategy is defined as a plan of attack to win in the market.

The marketing mix is essential for formulating a successful marketing strategy.

Identifying the right products or services that customers find valuable is crucial.

Pricing strategy is about understanding the target market's perception of value.

Communication strategy involves explaining the value proposition of the product.

The importance of place in marketing strategy, such as choosing the right retail channels.

Release strategy for products, like timing a movie release for maximum impact.

Considering various factors like customers, competition, and industry trends in marketing strategy.

The role of communication in letting people know about new products and pricing.

Developing a competitive advantage through marketing strategy to stay ahead in the market.

The adaptability of marketing strategy, like how BlackBerry adapted to the smartphone market.

Identifying the target market for a product, such as personal, business, or kid phones.

Strategic offers to attract a market segment, like AT&T offering discounts for businesses.

The niche market strategy of OtterBox, focusing on durability for specific industries.

The evolution of BlackBerry's strategy from business phones to adapting to the smartphone era.

Apple's iPhone strategy as an mp3 and camera replacement, eventually attracting the business market.

The dynamic nature of marketing strategy, requiring flexibility and readiness for changes.

The comprehensive approach to marketing strategy, including product, price, place, promotion, and people.

Transcripts

Hey, fellow marketers, Professor Wolters here. And today I want

to talk about is strategic marketing or, or marketing

strategy. And a lot of people ask, what is marketing strategy?

What is any strategy, it's your plan. It's your plan of attack,

it's your plan to win. It's your plan to reach out to customers.

That's your plan to figure out where we're going to sell your

stuff. It's your plan, how you're going to communicate with

those customers. It's us taking that marketing mix, and figuring

out our plan to succeed. So if we're trying to figure out how

we're going to succeed with a product. We're going to try to

succeed how to work in a certain niche of an industry. That's our

marketing strategy. We're gonna figure out how we're going to

win in these different areas. And so if we look at it, in

terms of our product, what's our marketing strategy for our

product? We're going to think about what products or services

should we offer to our clients that are going to find value.

And they're going to find value in it, they're going to buy it

right. But we got to think of those things right. Then, if we

look at in terms of price, we can determine the value that

that target market has about those products, about those

services. We have to figure that out. That's going to be part of

our strategy. But also, we might want to have a strategy in order

to get the value across to them. Because they might not realize

why our product is going to be perfect for them. Why is it that

a burger McDonald's is $1? But a burger at a bar is like 10

bucks. What's the difference? Where's that in there? Like,

it's part of your strategy is going to be explained why the

price is different? What more Are you getting out of it? And

then if you look at the place side of things, right, your best

locations? If I'm coming out with a new computer, do I want

to have it at Walmart? Because it can be in more stores? Or do

you want to have it at Best Buy? Because then it's going to be

perceived to be a fancier, more advanced computer? Because is

that Best Buy versus Walmart? I mean, these are things you're

going to be thinking about, what's your strategy? Where do

we release it for movies? Okay, our part of our strategy is our

release date, right? Are we going to release it at the

beginning of the summer? So they have all summer to watch it? Or

do we do it right before the winter holiday. So people can

watch it while they're home for the winter holidays? Or they put

it on a random October because it's a horror movie. These are

things you're going to think about. These are things that

you're going to- your marketing team is going to strategize

around. And thing is, you're going to take a lot of things

into consideration: your customers, your competition, the

industry in general. We have to think about that, right? And of

course, you're going to look at your communication strategy. How

are we going to let people know about our new product? How are

we going to let them know about our pricing? Why-what's our

value? Why we're so great? Why we're so better than everybody else? Or

at least better than them? Or why they should buy us instead,

all these things go into your marketing strategy. Because what

we want to do is we want to use our marketing strategy to help

us figure out a way where we should focus, right? Where

should we focus so we can develop a competitive advantage,

and hopefully a sustainable competitive advantage. So we can

constantly stay in forever competition. And so what you're

looking for. If you look about this in like mobile phones,

right? If you think about marketing strategy here. First

off, the company has to identify: well, what market are

we going for? Are you going for the Oh, the personal phone? Are

you going for the business phone? Are you going for the

like little kid phone? Are you going for the home phone

substitute? Each one of these markets you go for it might have

something different they're looking for? Because you think

about if I'm going for the business market. If I'm AT&T,

what can I do? How can I get business to sign up with us

like. Well, I tell you what, if you let us be your official

phone company, we'll give all of your workers 15% off their AT&T

bill. Well, heck, we can get this deal and our employees

gonna benefit. That might be something we look at, right? So

you look at that, or maybe you're looking at professional

phones, phones that are tailored for a certain market. You know,

you'll see people have their OtterBox you know, in case their

phone falls and crashes. Well, there's some businesses and

industries that that's really common with they fall and crash and,

get smashed. Maybe we have the super tough phone industry,

right? And so we want to be out to help them. I mean, that's

what OtterBox does. That's their whole industry. And when we

start to do is with our strategy, we start to figure

out. What's our niche gonna be? You know, back in the day,

blackberries were all about. You know, we are the business phone.

We've got the actual physical type, keyboard kind of thing. We

have our own servers we have on encryption, we're doing all

these things to make it so business can be run safe, and

that was their niche. That's what they went for. Everything

was about that. But then everybody had, or everybody has

smartphones then and, and that specialty has kind of faded

away. And so what happens is you have to change your strategy.

Look, I mean, Apple with their iPhone came out as Hey, look,

we're the mp3 phone camera replacement. They didn't go for

the business market right away, but businesses eventually went

over to them because they said look, we can use apple, it's

fine. The iPhone works just as well. We'll just do that. And

blackberry needed a straight change their strategy like look,

how do we keep that business core niche right? Because your

business strategy isn't set. It's not like you're making

in cement. It gives you a rough idea. It's kind of like

your GPS, it gives you an idea of how to get there. But along

the way, you might have an accident or there might be a

detour that you had to take, and you got to be ready for that. So

developing your marketing strategies, you really have to

think is what happens if my competitors do this? What if our

suppliers can't deliver on that? We have to think about those

things and put it all together. And that gives us our strategy.

Okay, so just think of it. It's your plan of attack to win,

whether you're looking at your marketing mix, or product,

price, place, promotion, but also the people that are involved,

all this kind of stuff, the markets involved. You're taking

that all together, and we have a ton of videos on different

marketing strategy models from big, hairy audacious goals to

SWOT analysis to the five forces to something more simple, like,

do you want to grow or do you want to shrink, right? So check

those videos out to learn more, and I'll say bye.