The Role of Marketing Strategies in Modern Business and Society

The Role of Marketing Strategies in Modern Business and Society

DOI: 10.4018/978-1-5225-1913-3.ch027
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This chapter introduces the role of marketing strategies in modern business and society, thus explaining the theoretical and practical concepts of competitive strategy, market segmentation strategy, differentiation strategy, cost leadership strategy, focus strategy, market orientation, and organizational performance; the significance of marketing strategies in modern business and society; and the impact of marketing strategies on organizational performance. Marketing strategies serve as the valuable foundation of marketing plans designed to fill marketing needs and reach marketing objectives. Marketing strategies include all basic and long-term activities in the field of marketing, thus dealing with the analysis of the strategic situation of an organization and the formulation, evaluation and selection of market-oriented strategies and effectively contribute to the goals of the organization and its marketing objectives. The chapter argues that applying marketing strategies has the potential to increase organizational performance and gain sustainable competitive advantage in the social media age.
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Marketing strategy is a concept built on robust platform of segmentation, targeting, and positioning (Ferrell, Hartline, & Lucas, 2002; Kotler, 2005; Perreault & McCarthy, 2002). Marketing strategy requires decisions about the specific customers that the organization aims to target in a superior way (Kotler, 2005). The study of the effectiveness of the marketing tools is essential for an appropriate marketing strategy (Sengupta & Chattopadhyay, 2006). The appropriateness of the marketing strategy is judged by assessing the difference between the customers’ perception of the marketplace and the organization’s market offering (Perreault & McCarthy, 2002).

Porter (1980) proposed three marketing approaches to gaining competitive strategies (i.e., differentiation strategy, cost leadership strategy, and focus strategy). Cost leadership and differentiation are the basic strategies that offer an equally successful path to outperforming the competition (Porter, 1980). Cost leadership and differentiation can be combined to gain competitive advantage (Dess, Gupta, Hennart, & Hill, 1995). Marketing strategy needs to be carefully considered so that it is appropriate for a set of business conditions (Ward & Lewandowska, 2008). Chari et al. (2014) stated that dimensions of market uncertainty (i.e., dynamism and complexity) and strategic feedback systems effectively influence the formation of emergent marketing strategy.

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