BUILDING THE OPTIMAL MARKETING STRATEGY






In order to develop any marketing strategy, a strategist must consider how value will be created for the company, the customer and the collaborators. Pictured in the graphic below, the highest strategic value is created when the value for each of the participants (customers, collaborators and the company)  coincide or overlap. 

The larger the area of common value, the greater the chance for strategic success. As the overlapping areas decrease in size the more difficult the strategy will be to execute successfully.  

As discussed in earlier blogs value is created by using the 4 Ps of marketing: Price, Place, Product and Promotion.  In the grid below a strategist can address the value for each of the four Ps as it relates to the customers, collaborators and the company. Each of the four Ps must be in alignment with each other and create the intended value for each of the participants.


When the area of the participants'  common value is identified for each of the 4 Ps an overall strategy can be developed. The Optimal Marketing Strategy will be when the optimal area of overlap for each of the 4 Ps are combined as is shown below.




 A company that seems to have accomplished the development of an optimal marketing strategy is Coca Cola.

The Coke price seems to be within the range customers are willing to pay and provide distributors and the company the the revenue required for a successful operation.

Coke is available to customers when and where they want to consume the product. The territories are large enough for the bottlers (collaborators) to provide the distribution to the customers and the distribution supports the market share objectives of the company.

The Coca Cola products are numerous and varied enough to meet the customers needs, provide bottlers with a means of expanding the revenue base and provides the company with the capability to maintain and grow market share.

Finally, the promotion programs underscore the company's mission by aligning Coke with happiness and refreshment for the customer and supports the bottlers' and the company's efforts to maintain and grow marketshare.



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