Marketing Strategy Process

Identifying product and market: First, the company determines the product or service areas and particular markets in which it plans to compete. This requires a detailed understanding of the market, the opportunities, and the competition.

Analyze marketplace conditions: Sometimes there are favorable trends (opportunities) for different products. For instance, in the technology space, smart phones and mobile communication present favorable market opportunities. However, a company must analyze and consider the competitive conditions in the marketplace. 

Evaluate market opportunities: You might recall that HP has recently pulled out of the tablet market due to intense competition. The company's marketers evaluated the market and saw the opportunities were limited. What is really important is to focus on and search for an advantage (competitive advantage) over the competition. The competitive advantage may be achieved in different ways such as through a differentiated product, superior customer service, and low-cost production or efficient distribution systems. Competitive advantage might be also achieved through excellent advertising and promotion programs.

Select target market: After evaluating the opportunities for products/services, target market(s) are selected. The selection of the target market is not only a very important part of a firm’s marketing strategy, but also has important implications for advertising and promotional strategy and tactics.