A Marketing strategy is a way of achieving a marketing objective.
Marketing tactics are short-term actions to achieve the marketing strategy.
Marketing Objective – increase sales by 20%
Marketing Strategy – selling the product in overseas markets. Marketing Tactic – Advertise the product in France and Spain first and then open up to other European countries if the campaign is successful.
Examples of Marketing Strategy
Two important strategies are whether to sell in a Niche market or a Mass market.
Niche Marketing – ‘A niche market is a small segment of a larger market’.
Niche marketing is the process by which firms attempt to, first, find out and then exploit new or under-served market sectors. (Ian Marcouse)
It involves aiming at a relatively small target market with a specialised product designed to meet the specific needs of that niche.
Examples of Niche Marketing:
Saga – sells holidays and insurance to customers 50+ years old. Diesel – casual wear/dance wear
Radio stations that only play specific types of music such as Classic FM or locally, Ocean FM (music from the 1970’s to today) Selling products aimed at the wealthy – Cartier or Rolex
Specialist sports equipment – Berghaus, North Face
Advantages of Niche Marketing
1. A niche market is a ‘safe haven’ for small firms. Small firms find it difficult to compete with large, national or multi-national firms. Large firms can use their market share to force small firms out of business.
2. Survival. A large firm may have no interest in a niche market because the profits available are too low.
3. Niche markets may allow a large firm to gain more sales for its mass-market products. Eg A car manufacturer may launch a high performance car which will have limited sales. The success and publicity for the sports car may increase sales for its standard range of cars.
(Jaguar launched the high performance...