An Analysis of How Marketing Informs a Firm's Strategy

This report delves into the crucial role of marketing in shaping and informing a firm's overall strategy. It defines strategy and marketing, emphasizing their interconnectedness in achieving business objectives. The main body examines the role of marketing in strategic planning, highlighting its function in identifying customer needs, supporting competitive advantage, and adapting to market changes. The report explores strategic marketing principles such as concentration, value proposition, and differential advantage, alongside an analysis of strategic gaps and their causes. It emphasizes the importance of effective stakeholder cooperation and coordination. The report also provides insights into how marketing teams gather market information to guide strategic actions, select target markets, and address competitive challenges, including the impact of marketing on strategic decision-making and the development of marketing plans. The report also looks at the role of marketing in determining product pricing, identifying external factors, and communicating business value. The report is based on the analysis of how marketing influences firm strategy and the strategic marketing principles.

How can Marketing inform a Firm's
Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Role of marketing in Firm strategy..............................................................................................3
Strategic marketing principles.....................................................................................................6
Nature of strategic gap ...............................................................................................................7
Blue ocean Strategy model..........................................................................................................7
Ansoff growth vector matrix........................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategy can be defined as the tactics which is applied by management in an organization
for accomplishment of desired objectives. It can be also be referred to as long term plan of action
developed by manager in an enterprise for driving business towards success (Strategy, 2015).
The main objective of strategy is to set the future direction for an enterprise. Marketing can be
defined as procedure through which product is introduced as well as promoted among customers
in the market. It is considered to be as one of the most crucial activity which assist firm in
accomplishing desired Objective such as to capture consumer interest and also in building
awareness (Christodoulou and Langley, 2019.). The manager in an organization is required to
consider the needs as well as demands of customers while developing the promotional plan.
Strategic marketing management is very much essential in order to gain competitive advantage
in the market because it helps to take business at further level of success and raise the brand
image in market. Marketing plays very important role in supporting an organization in
identification of the customers needs as well as demands in the market. The report have focus on
identifying the role of marketing in Firm.
MAIN BODY
Role of marketing in Firm strategy
Strategy can be defined as the guidelines which is created by management in an
enterprise for securing companies position in the market. It can also refer to as a road map which
specifies the different activities which will be executed by an enterprise for accomplishing
desired objectives (Strategy, 2015). The main objective of the strategy is to define the way an
organization can perform better in the market as well as can deliver high value proposition to
customers. Kotler critically evaluated that, Strategic planning can be defined as the procedure of
developing as well as maintaining the strategic fit between business objectives as well as
capabilities (Chereau and Meschi, 2018). The author has also stated that the strategic planning
mainly emphasizes on changing market opportunities. However, it has been argued by other
author that strategic planning includes combining of customer experience with overall direction
of an organization wants which is very much essential for driving business towards success.
It is the marketing which assist an enterprise in identification of the activities which are
required ton be executed for increasing the profitability as well as for maintaining the business
sustainability in the market. The main role of marketing in strategic planning procedure of an

enterprise is to execute the plan through suitable marketing channel. It is the marketing which
supports an enterprises in identifying the value proposition that an enterprise can provide to the
customers that could be helpful in gaining the competitive advantage in the market. The other
important role of the marketing in context of strategic planning procedure is to keep the life cycle
going (Dawes, 2018.). If in case there is decline in the service life cycle then in such situation
role of marketing is to revamp the product or services by utilising the strength of an
organisation.
Marketing is one of the activity which will be perform in order to drive an organization
towards success. It is the marketing which plays very important role in supporting business entity
in identification of the requirements by consumer on the basis of which different strategies as
well as promotional plans are created by management. The strategic marketing is the procedure
which includes determination as well as recommendations about the market which an enterprise
should target. The marketing plays very much crucial in supporting management in development
of effective business strategy (Gurcaylilar-Yenidogan and Aksoy, 2018. ). Marketing unit in an
enterprise gather the information about the customers needs as well as demands by performing
the market research and provide the same to the management which further provide them an
ease in developing promotional offers. According to the opinion of author Theodore Levitt, It is
the information provided by the marketing team in an organization which assist management in
identifying where to compete and it also manager in addressing those areas where the changes
are required. For instance, few companies such as Tesco, Disney etc. has bought the changes in
their business strategy on the basis of the information about the customers demands provided by
their marketing team. In addition to this, the information provided by the marketing team in an
enterprise guides the strategic actions which can be taken by organization for maintaining its
leading position in the market.
In addition to this, marketing plays very much crucial role in supporting organization in
identifying the suitable market segment. In other word, the information gathered by marketing
team provides management an ease in addressing those people who will buy the products or
services offered by organization (Strategy,2015. ). It also provides manager an ease in making
suitable decisions related to the selection of market for positioning goods or services.
In addition to this, an information provided by marketing team provides management
with an idea about the level of competition in market and also about the way they can compete. It

also helps management in generation of new ideas about the technique which a firm can applied
in order to target customers as well as position their products or services successfully in the
market. For instance, in context of Gillette company, the information provided by the marketing
team about the customers needs has helped the management in making the decision related to the
new product development. According to the opinion of Gong and Li, 2018, information provided
by the marketing team has great as well as significant effect on the strategic decisions taken by
manager in an organization. However, it has been argued by other authors that the data gathered
by marketing team has influence on the decision taken by sales as well as marketing team in an
enterprise.
According to Chang, Wang and Arnett, 2018., the main role of marketing in an
organization , is to help management in development of strategic marketing plan.
Marketing is mainly responsible for supporting an organisation in strategic planning
procedure. It is the marketing department in an enterprise which assist in gathering as well as
analysing the information which is needed for examining the marketing environment and for
accessing the latest trends win the industry which might have significant influence on business
performance of company. It is critically evaluated that Marketing also plays very much important
role in orienting everyone as well as business strategies towards market as well as customers. It
also plays very much essential role in strategic decision-making. Marketing push strategic
planning responsibility down to the firm and assist in increasing marketing clout in a firm
strategic planning procedure. It is the information gathered by the marketing team in an
enterprise which helps management in an organization in determining the need for facilitating
the innovation. The information about the market provided by marketing department also helps
manager in determining the right time for launch of new product as well as implementation of
other business strategy. It also assists an organisation in exploring as well as capturing the
business or growth opportunities.
The role of marketing at the business unit level to design a strategy for the success of
each product. The information gathered through market research assists manager in identifying
the suitable path for reaching to the target customer group and influencing them to buy specific
goods or services. Other important role of marketing is to help management in determining the
prices of goods or services for their products based on the information collected through the
market research. It is the marketing which aids management in addressing those external factors

in business environment that could adversely affect the success and growth of company.
Information gathered through market research also assist management in determination of the
financial resources which will be required for promoting the brand, goods or services. It assists
manager in determining the effectiveness as well as benefit of the strategy selected for
implementation. In addition to this, it is the marketing which supports managements in
addressing the suitable techniques which can be utilised for communicating the business value to
customers in order to develop the positive impression on their mind. In addition to this,
marketing act as guiding document as the activities which an enterprise can performed for
accomplishing desired goals or objectives. In formation collected through marketing research can
assist management in determination of business goals or objectives. It also supports managers in
determining the way they can apply the different elements of marketing mix that is product,
price, place , promotion in accomplishment of desired marketing objectives.
Strategic marketing principles
In context of strategic marketing management, there are certain principles which are
required to be considered by the marketing manager while formulation of business strategic.
According to the first principle of strategic marketing management, the two important factors are
concentration as well as selectivity. While developing the promotional or other business strategy
it is very much important for manager to be very much conscious as well as careful while
selecting the market or target customer group for selling their goods or services. While
developing the promotional plan, manager must ensure the availability of resources which are
required for influencing the people to buy products or services. For instance, In context of
Samsung, considering the increase in number of customers as well as size of market, manager
has implemented the strategy for changing distribution channel. Whereas, Winter halter
organization concentrates on selection as well as availability of media which is required for
reaching to the target customers group and informing them about goods or services.
The second principles of the strategic marketing management states that an enterprise
must focus on providing the high value proposition to customers. It is considered to be as one of
the best tactic for positively influencing people to remain loyal to brand and make frequent
purchase of goods or services.
The third principle of strategic marketing management is differential advantage.
According to this principle company can attract people by developing the differentiated products

or adopting the unique Pricing policy. As per the Hardball, an organization can positively
influence the customers for making the purchase of goods or services just by lowering the prices,
however , it has been critics by other author those who perceives that firms can easily gain the
customer loyalty and achieve other business objectives by implementing the green marketing
strategy. Business entity in order to gain the loyalty of customers and develop the positive
impression on clients need to take high initiatives for lowering the negative effect of its
operations on environment, culture as well as society (Kasemsap, 2018.). For instance, Toyota is
the company which is operating business in automotive sector has been criticised for making the
false environmental credentials which has adverse effect of the reputation of company and
adverse influence on business performance.
The fourth principles of strategic marketing management is that an effective cooperation
as well as coordination between stakeholders is very much essential in order to formulate as well
as implement promotional strategies in successful manner.
Nature of strategic gap
In context of the nature of strategic gap, there has been great argument among authors
related to the reason for such gaps.
According to the opinion of Yang, 2018, The main reason for the strategic gap is the poor
integration between different functions or division. However, it has been argued by other authors
Heupel, 2019. that the main cause of the strategic gap is marketing events are not properly linked
with strategic intend. Other reason for the strategic gap is insufficient consideration made by
manager before execution of strategy (Morgan, Feng and Whitler, 2018).
Blue ocean Strategy model
It is the marketing strategy that assert some strategic moves which create a leap in the
value for the company, its customers and employees. Further, it is about creating and capturing
the market space and also to make the market competition more focused. Most of the company
uses blue ocean strategy in the sequence of buyer, utility and price because it allows a firm to
build a viable business model and also make sure that the firm generate profit (Li. and Heupel,
2019). For example, NetJets is the best example which uses blue ocean model in order to built
the distinctive strength. As a result, there is a new market space of fractional jet ownership.
Further, the customers are also convince of the private jet at the price of a commercial airline
travels. Even the firm also keep the cost low and by offering the best commercial travel and

private jets, it sustain the brand image in market. Thus, blue ocean strategy is consider one of the
successful marketing strategy because it attract large number of customers when there is a high
competition. On the other hand, red ocean strategy offers the less opportunity for growth. That is
why, it is not used by the company.
As per the view of Cham Kim and Renee Mauborgne, (2018) this blue ocean strategy
allow the brand to develop and thrive in unsaturated market and also makes the competition
irrelevant. Through this, the brands are motivated in order to create new frontiers (Mi, 2015).
Therefore, to seize new profit and growth opportunity there is a need to use ocean strategy. The
biggest advantages of using this model is such that it pursues the differentiation ad low the cost,
in which the company has to innovate products that helps to attract wide range of customers.
Further, it also maximizes the opportunity and helps to minimize the risk as well, then it also
builds the execution into strategy. This theory is easy to understand and also communicate to
others, that is why it is used by most of the customers. Moreover, blue ocean strategy also used
to create a win win outcome in which it allow the firm to use best variety if tools for marketing.
In addition to this, this is the five step process such as choosing the right place to start
and forming the blue ocean team, further, be clear for the present state of play and then uncover
the hidden point that may affect the plan and discovering customers as well (Strategy, 2015).
Then, company also systematically construct the market boundaries and also develop the
substitute for generating blue ocean market opportunity and lastly the company select the best
strategy for blue ocean moves.
Ansoff growth vector matrix
It is the best marketing tool that provides a framework that helps the manager to derive
the strategies that helps for future growth of a company. Moreover, Ansoff also presented the
matrix which also focused on the firm's present and potential products as well as market. It is
also divided into four parts, such as:
Market Penetration: It is one of the least risky strategy that helps a firm to expand the
market share and also develop the opportunity. Further, this strategy is mostly used by
telecommunication firm such a telecom who mainly exist in market and in this type of market,
the competition is intense (Dawes, 2018). This strategy is actually used in order to grow the
business and also raise the existing market share. Apart from this, this strategy is used by

different company an this can be accomplish by decrease in existing pricing, raise the promotion
and distribution support, acquisition of rival in the same market.
Product development: It refers to introduce new products in the existing market. This is
mainly used when the firm has good customer base and through new product, firm will easily
maximize the financial performance (Chereau and Meschi, 2018). This strategy is consider risky
as compared to market penetration and mostly used to achieve the growth and it also involves
extending the product ranges which is available in the existing market. Moreover, it is also
obtain through investment in the research and development for new products and also helps in
buying the product as one's own brand. For example, Zara may use this strategy in which it offer
footwear so that it help to increase the brand image in market.
Market development: It states that a firm tries to expand into new market using existing
products and it can be attain by using different customer segments, target new area where the
chances of earning is more. Though it is quite risky but more likely to be successful only when
the firm has a unique product technology which can be purchase in new market. It also help a
firm to increase the output and increase customer base too (Gurcaylilar-Yenidogan and Aksoy,
2018). For example, most of the retail store uses this strategy in order to attract wide range of
customers, that assist the business to attract different and new customers segments which help
the firm to raise the financial performance.
Diversification: It is one of the most risky strategy in which the firm opt new market
with new products, where it has a little or no experience. For example, Samsung, as the firm deal
in electronic gadget but later it expanding its business into insurance, securities and retail as
well. Initially, the busines only introduce white and black television product but now it
expanding its business in diversified manner such that now it introduce telephones, fax
machines, camera and watches. Therefore, it shows that this strategy includes the potential to
gain the foothold and also reduce the business portfolio risk (Yin, 2016).
Therefore, it has been realized that using this as a strategic management strategy,
company's manager will easily select the best growth strategy that helps a firm to leads the
further level of success. Hence, Ansoff growth vector matrix is the part of a larger strategic
planning which show the direction of growth.

CONCLUSION
It has been concluded from the above report that the marketing plays a crucial role in
business success. The other fact which has been discovered from the above assignment is that it
is the marketing which assist an enterprise in accomplishment of strategic business objectives
such that if the firm wants to introduce new product in market, it has to used effective marketing
strategies that helps to let people know about the new product. It has also been concluded from
the assignment that formulation of an effective marketing plan is very much essential in order to
accomplish desired objectives. For instance, company have to develop effective marketing plan
that helps to attain the aim that is to capture consumer interest and in building awareness. The
other fact which has been found is that an organisation by applying the principles can develop
an effective promotional plan. It has been found that it is the information gathered from the
market on the basis of which promotional offers are designed by company.

REFERENCES
Books and Journals
Chang, Y., Wang, X. and Arnett, D. B., 2018. Enhancing firm performance: The role of brand
orientation in business-to-business marketing. Industrial Marketing Management, 72,
pp.17-25.
Chereau, P. and Meschi, P. X., 2018. Choosing a Growth Strategy. In Strategic Consulting (pp.
81-110). Palgrave Macmillan, Cham.
Christodoulou, I. and Langley, P. A., 2019. A gaming simulation approach to understanding blue
ocean strategy development as a transition from traditional competitive strategy. Journal
of Strategic Marketing, pp.1-26.
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems. But
with Two Logical Problems (February 27, 2018).
Gong, Y. and Li, L., 2018. Analysis on the Effect of Enterprise Logistics Strategic
Planning. DEStech Transactions on Engineering and Technology Research, (icace).
Gurcaylilar-Yenidogan, T. and Aksoy, S., 2018. Applying Ansoff’S Growth Strategy Matrix To
Innovation Classification. International Journal of Innovation Management, 22(04),
p.1850039.
Kasemsap, K., 2018. The roles of corporate marketing strategies and brand management in the
global retail industry. In Digital Marketing and Consumer Engagement: Concepts,
Methodologies, Tools, and Applications (pp. 294-325). IGI Global.
Li, W. and Heupel, T., 2019. Blue Ocean Strategy® in China—Successful Examples in E-
Commerce. In Die Blue-Ocean-Strategie in Theorie und Praxis (pp. 275-297). Springer
Gabler, Wiesbaden.
Mi, J., 2015. Blue ocean strategy. Wiley Encyclopedia of Management, pp.1-1.
Morgan, N.A., Feng, H. and Whitler, K.A., 2018. Marketing capabilities in international
marketing. Journal of International Marketing, 26(1), pp.61-95.
Strategy, B. O., 2015. Blue Ocean Strategy. Marketing, 1009, p.4C.
Yang, M., 2018. International entrepreneurial marketing strategies of MNCs: Bricolage as
practiced by marketing managers. International Business Review, 27(5), pp.1045-1056.

Yin, N., 2016. Application of AHP-Ansoff matrix analysis in business diversification: The case
of Evergrande Group. In MATEC Web of Conferences (Vol. 44, p. 01006). EDP
Sciences.