Steps To Be Followed In Formulating A Marketing Strategy

Steps To Be Followed In Formulating A Marketing Strategy


This paper is a preparation of a comprehensive case analysis of the steps to be followed in formulating a marketing strategy to ensure that a business gain competitiveness in the market. Mangers use different tools to analyze the environment their business is operating in so that they can formulate strategies in entering the market and competing their competitors healthy be become leaders in the market. In this analysis two matrices are used in this comprehensive analysis to justify the strategies that are recommended as the best for the firm to use for the next three years. SWOT matrix, and BCG matrix will be used as sole matrices for justifying the recommended strategies. The paper shall also explain the advantages of the recommended two alternative strategies, recommended specific strategies and objectives of the firm for a period of more than three years, a comparison of the recommended strategies with the actual strategies planned by the company. Further the paper will provide a guideline on how the recommendations will be implemented and the results expected. The guideline will include a recommended timetable for the action items suggested for marketing.

SWOT Matrix and BCG matrices to justify the recommended

The difference between success and failure in any business organization is marked by the extent of competition which is a core determinant issue of appropriateness of the activities of the organization. In the process of strategy development, managers must be keen in examining existing marketing opportunities in consideration of each business, the distinctive competencies of the organization, and the strengths of the organization in relation to its competitors as well as the product-market (Porter, Michael 1990). Some tools are at the disposal of managers for application in their systematic approach of conducting comprehensive analysis for appropriate business strategies of gaining a competitive edge.

SWOT Matrix

This is an important tool that facilitates systematic approach in identification of the organizations S.W.O.T, i.e. strengths, weaknesses, opportunities as well as threats which are vital components in the process of strategic planning (Porter, Michael 1990). A well crafted SWOT matrix is a good source of information applicable in generation of improved strategies in the organization. Comprehensive application of SWOT matrix facilitates for a formal analysis and highlights the four elements in organization strategy.

BCG Matrix

Another important tool or matrix in this respect is the BCG Matrix which is a 1970 innovation by “Boston Consulting Group”. The basis premise behind this tool is the products life cycle. BCG Matrix is a good foundation for developing business strategy especially in the case of large businesses. It is also a vital stepping stone towards market research and therefore, it is beneficial to organizations in monitoring and increasing their growth and market share(Porter, Michael 1990). BCG Matrix has four divisions in form of scenarios as indicated in the figure below

Advantages and disadvantages of two alternative strategies

SPACE Matrix

Organization analysis is achieved by a management tool referred to as the SPACE Matrix. A SPACE Matrix is a good guide towards the best strategy that should be undertaken by the organization. This matrix also scrutinizes the potential strategic factors in the context of 2 external dimensions namely the environmental stability along with industry strength.

SPACE Matrix offers a valuable avenue in the analysis of the organization competitive position with the use of financial strength as well as competitive advantage as two important internal dimensions in the organization. SPACE Matrix also makes use of industry strength as well as environmental stability as two important external dimensions. The organization posture in the entire industry is consequently determined by the use of this matrix (Porter, Michael 1990). The organization can therefore be categorized as being aggressive, being competitive, being conservative or even defensive. SPACE matrix informs the organization of the need to pursue a more aggressive strategy. A model space matrix appears as follows:

QSP Matrix

When the organization is in a dilemma of choice between the best of two or three strategies, then the matrix of choice becomes the QSP Matrix. A fundamental precept behind the QSP Matrix is the requirement for organizations for critical assessment of external as well as internal environments. The organization also conducts a careful analysis of the pros as well as the cons of existing alternatives, conduct research and also perform analysis which sheds light on the most appropriate action that the organization should embrace (Porter, Michael 1990)..

Recommend specific strategies and objectives for the firm to follow over the next three (3) years. Include an itemized estimate of costs for each year.

Strategy is a plan that incorporates the organizations, major goals, policies, and action sequences to business success. Organization need a good formulated strategy so that they can marshal and allocate its resources into viable position based on the company competences, shortcomings, and anticipated environment change (Porter, Michael 1990). In formulating the strategy the managers must consider the following three main players, the company/ firm, customers, and competitors. A good strategy is that one which utilizes company relative corporate strengths and weaknesses to satisfy the customer needs and differentiate itself from its competitors. In the choosing of strategies, some limits prevail since the strategies depend on the company capabilities and its position in the marketplace (Porter, Michael 1990). The limiting factors in strategy selection include company, internal and external factors. Internal factors include strengths and weaknesses. Strengths and weaknesses include factors like financial resources, technological posture, brand identification and assets and skills as compared with competitors (Ohmae, Kenichi.1982). And the external factors include competitive environment like threats and opportunities together with society expectations. After considering the above four factors i.e. company strengths, weaknesses, opportunities and treats, I recommend the following strategies for the firm in the next three years to attempt to change the situation the company is facing. The strategies include cost leadership, differentiation and focus. According to Michael porter, many firms use these strategies either singly or in combination to defensively position themselves in their industry (Porter, Michael 1990).

Cost leadership strategy:

This strategy is aimed at enabling the company in gaining profits which are above average despite stiff competition from competitors. Every firm’s activity is examined with respect to cost. Access to raw materials must be arranged, products which are easy to manufacture are designed, upgrading of manufacturing facilities and equipment should be continually upgrades and the company must take the advantage of the economies of scale. Low cost strategy will enable the company to control tight operations and avoid marginal customer accounts and reduce significantly advertisements services. This strategy can lead to strong market share and profit margins (Porter, Michael 1990).


the company should also utilize differentiation to create [product service that is unique within the industry. differentiation strategy will be used in designing products that are unique, unique brand image, use unique technology, improve customers service, and distribution uniqueness (Mintzberg, Henry 1992). differentiation will be intended to attract customers with unique products that meets the customer’s needs than competitor firms, create customer brand loyalty and subsequently lead to solid profit margins. the uniqueness that arise as result of differentiation will help the company survive the stiff completion from the rival firms in the same industry. due to unique features and products that meets immediate customer needs, the customers will be willing to pay premium prices hence the company makes high profits (Porter, Michael 1990).


This strategy is aimed to serve a particular market especially specific customer group and product segment. This strategy will help serve the customers of a particular market effectively as compared with rivals firms based on product differentiation, and /or low cost. Although focusing on specific clientele limits the firm’s market share, it will be able to make up for the lost volume of sales due to profitability (Mintzberg, Henry 1992).

Compare and contrast your recommendations to the actual strategies planned by the company

The strategies recommended are all meant to create firm competitiveness in the market. They are both focused and planned for future business operations and acquire of the market share. Further the strategies’ share common firm objectives which include; becoming leader in the market, gaining large market share and surviving the strong wind of competition. The only contrast that exists between the strategies is that the actual strategies were long-term (Ohmae, Kenichi.1982).

Specify how your recommendations can be implemented and the results you expect. Include a recommended timetable for the action items you are suggesting.

Implementation of cost leadership strategy: this strategy will be implemented by the firm using available resources, using the equipments and manufacturing facilities that are upgraded continually. Advertisement cost will be reduced significantly and the firm will utilize available raw materials to manufacture products that meet the customer needs. It is expected that the strategy will reduce marginal costs and other unnecessary expenses which will improve the profit margin of the company (Porter, Michael 1990).

differentiation is intended to be implemented by the firm utilizing a new technology in manufacturing the new products that are more appealing and meeting customer needs better than competitor companies. Also the company will improve customer services by giving after sale services. it is expected that new technology products will greatly outperform other products in the market making the company to gain competitive advantage hence making more profits. Also, differentiation will help the company strengthen its brand name and gain brand recognition which will make it impossible for rival companies to venture into the market(Mintzberg, Henry 1992)..

Focus strategy will be implemented in such a way that the company will produce specific products for specific clientele. It is intended that this strategy will help the firm specialize in a given line of product production so that to produce products effectively. Effective production of goods will ensure good quality hence higher profits to cater for the lost volume of sales due to specialization (Porter, Michael 1990).

Explain in detail how you will review and evaluate the success of the strategies you recommended.

The strategies will be reviewed and evaluated after a period of six months since their implementation. The costs of advertisements will be reduced, distribution and sales promotions for the products which have gained customer recognition, also the new technology will be implemented and then new products will be supplied to the market for the consumers to use them for six months and then feedback will be used to make improvements or any perfection (Mintzberg, Henry 1992).


Mintzberg, Henry, and James Brian Quinn. The Strategy Process: Concepts and Contexts. Prentice-Hall, 1992.

Ohmae, Kenichi. The Mind of the Strategist: Business Planning for Competitive Advantage. Penguin, 1982.

Porter, Michael E. Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press, 1980.

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