U2.11 — Features and Purposes of a Marketing Strategy

Overview

Dotpoint 11: features and purposes of a marketing strategy.

A marketing strategy is the overall approach a business uses to reach its target market and achieve its marketing goals. It helps guide how the business will market its product or service.

In this dotpoint, the focus is on:

1. the purpose of a marketing strategy

2. the main features of a marketing strategy

7 Ps marketing strategy diagram
🎯 Purpose of a marketing strategy

Why businesses use a marketing strategy

A marketing strategy gives the business a clear overall approach for achieving its marketing goals. Instead of making random marketing decisions, the business can plan how it will attract its target market and compete more effectively.

Gives direction

It helps guide marketing decisions so the business has a clearer overall approach.

Focuses on the target market

It helps the business shape its marketing around the customers it wants to attract.

Helps achieve goals

It supports marketing goals such as higher sales, increased market share or stronger brand awareness.

Creates consistency

It helps make sure marketing decisions work together rather than sending mixed messages.

Improves competitiveness

It helps the business compete more effectively by choosing a clearer approach to the market.

Benefits of a marketing strategy diagram

How to write this in an exam

A marketing strategy gives a business an overall approach for reaching its target market and achieving its marketing goals. For example, a business wanting to increase market share can use a marketing strategy to guide decisions about its product, price, distribution and promotion. This gives the business greater direction and consistency because its marketing decisions are working toward the same goal rather than being made separately. As a result, the business may be better able to attract its target market and compete effectively.

🧩 Features of a marketing strategy

Features of a marketing strategy

The main features of a marketing strategy can be described through the marketing mix, which was covered earlier in Dotpoints U1.16 and U1.17. It shows the key areas a business considers when planning how to market a product or service. Refer back to those dotpoints for a more detailed explanation of each of the 7 Ps.

1. Product

This is what the business is offering to customers.

  • Positioning
  • Features
  • Branding
  • Packaging

2. Price

This is the amount the customer pays and the pricing approach used by the business.

  • Skim
  • Penetration
  • Psychological
  • Premium / prestige

3. Place

This is how and where the product gets to the customer.

  • Direct distribution
  • Indirect distribution
  • Location

4. Promotion

This is how the business communicates with customers and encourages sales.

  • Advertising
  • Publicity
  • Sales promotion
  • Personal selling
  • Viral marketing

5. People (employees)

Employees are part of the strategy because they affect the customer experience.

  • Training
  • Customer service as part of customer relationship management (CRM)

6. Processes

This refers to the procedures used to deliver a service or product.

  • Procedures to deliver a service or product

7. Physical presence of the business

This is the visible evidence of the business that customers can see.

  • Signage
  • Webpage
  • Staff uniform

How to write this in an exam

The main features of a marketing strategy can be organised through the 7 Ps of the marketing mix: product, price, place, promotion, people, processes and physical presence. For example, a business may position a product to appeal to a particular target market, choose a suitable pricing approach, decide where the product will be distributed and select promotional methods to communicate with customers. It can also use trained employees, efficient service processes and visible physical evidence such as its website, signage or uniforms. Together, these features create a coordinated approach to marketing the product or service.

🎧 Prefer listening?

If you prefer listening to the content in Podcast format:

🎥 Prefer watching?

If you prefer watching the content in video format:

🃏 Flashcards

Card 1 of 8

What is a marketing strategy?
🖨️ Print & Cut Flashcards Download the matching 8-card set.
Open PDF
Assigned Blooket Task Complete the U2.11 quiz.
🎮 Revision Game
Marketing Strategy Game Show

💰 BME Millionaire

Climb the ladder by mastering the purpose and features of a marketing strategy.

TOP GOAL: $1,000,000
BME Millionaire Top goal $1,000,000

Biz Fact: Coca-Cola’s “Share a Coke” strategy put first names on bottles, turning packaging into a marketing tool and boosting engagement worldwide.