Reading: Creating the Marketing Strategy
Inputs That Inform Marketing Strategy
Developing a marketing strategy often follows a process similar to creating corporate strategy. However, the key difference is that marketing strategy is shaped not only by the company’s overall direction but also by other internal functions. Therefore, marketers must continually monitor and adapt to shifts in corporate goals and strategic priorities.
For a marketing strategy to be effective, it needs to leverage both internal resources and external market conditions. A useful tool for evaluating these factors is a situation analysis, commonly known as a SWOT analysis. This framework helps identify:
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Internal strengths and weaknesses (within the company)
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External opportunities and threats (in the marketplace)
We’ll explore the SWOT analysis—and other strategic planning tools—in more detail later in this module.
Centering on the Target Customer
Centering on the Target Customer
A strong marketing strategy outlines how the marketing mix—product, price, place, and promotion—will be used to support the broader corporate goals. At the heart of this strategy is the target customer. While corporate strategy may include operational goals or market positioning tactics, every component of the marketing strategy should be designed with the target customer in mind.
To define and understand your target customer, follow these key steps:
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Identify the business need your product or service addresses, as aligned with corporate objectives.
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Segment the total market by breaking it into meaningful subgroups based on shared characteristics.
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Select and profile your target customer, focusing on demographics, behaviors, preferences, and needs.
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Research and validate the market opportunity to ensure there is real demand and a clear path to value creation.
Focusing on the customer may seem obvious, but many organizations lose sight of this in pursuit of internal priorities, innovation goals, or product features. When companies fail to prioritize the customer, they risk losing relevance—and ultimately, customers may turn to competitors who better understand and meet their needs.
Aligning Corporate and Marketing Strategies
As discussed earlier, well-defined objectives help create alignment between corporate and marketing strategies. When corporate objectives are clearly communicated, they serve as a valuable reference point throughout the marketing planning process.
How do strong corporate-level objectives inform marketing decisions? Consider the following examples:
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After conducting market segmentation, you identify a promising target segment. Choosing to pursue that segment will depend on whether it’s large and profitable enough to meet the company’s growth objectives.
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Determining how many new products to launch in a given year should be guided by corporate goals for growth, innovation, and profitability.
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If marketing proposes a customer relationship management (CRM) campaign to increase loyalty, the decision to proceed should weigh the campaign’s cost and expected return against the company’s financial and strategic priorities.
These examples illustrate how corporate objectives provide essential direction for marketing decisions. In turn, marketing objectives clarify the specific goals of the marketing strategy, ensuring they are actionable, measurable, and aligned with broader organizational outcomes.
Creation notes: Chat GPT was used to format, update and shorten text to include current examples.
