The Differences between Marketing Strategy and Marketing Mix And their Examples Stephen M Okacha California Miramar University
March, 2013 THE DIFFERENCES BETWEEN MARKETING STRATEGY AND MARKETING MIX Abstract
This paper explores the differences between marketing strategy and marketing mix in the world of doing business. It also outlines some of the examples of both marketing strategy and marketing mix. The marketing strategy looks at the big picture of providing a profitable product or service to a customer while taking into account that same customer is being courted by the competition. McGrath, Michael E. (1989) illustrates marketing strategy strengths. According to McGrath, Michael E. (1989) to survive against strong competition, a company will need to pay attention to its competition's price and quality; then make decisions on how to win customers. For instance, is a company equipped to sell a superior product at a higher price point; or would a firm do better by offering a comparable product at a lower price, (Wikipedia, 2012). Jerome, McCarthy (1960), shows that marketing mix is composed of four main components, known as the 4 Ps: product, price, place and promotion. The components of the marketing a company considers will show how much it will charge for the product or service its selling; as well as when and where the product will be sold. For instance, a cleaning service would be wise to sell its service during the spring when consumers are planning major projects; similarly, promotions at around key holidays will also drive in more business. Keywords: product, price, place and promotion
THE DIFFERENCES BETWEEN MARKETING STRATEGY AND MARKETING MIX The Differences between Marketing Strategy and Marketing Mix And their Examples McGrath, Michael E. (1989) defined Marketing Strategy as a process that will allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contributes to the goals of the company and its marketing objectives. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. McGrath, Michael E. (1989) illustrates that competitors have certain strengths and abilities. To succeed, a firm must leverage its own unique abilities a firm should prepare defensive strategies before potential threats arrive. If the competition surprises a firm with the introduction of a vastly superior product, the firm should resist the temptation to proceed with its mediocre product. A firm never should introduce a product that is obsolete when it hits the market.
THE DIFFERENCES BETWEEN MARKETING STRATEGY AND MARKETING MIX Examples of Marketing Strategy are:
1. Pricing Strategies – In the marketing and business world there are a lot of pricing strategies that companies use in order to keep their place in the competition. Some of the most commonly used pricing strategies include high-low pricing, market-oriented pricing, cost-plus pricing, and competition-based pricing. Each pricing strategy will focus on a main factor or specific factors that determine...