How Strategy Influences Business Marketing Decisions Essay

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Essay: Effective Marketing Strategies for Business Growth

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Discussing Strategy Should Strongly Influence the Approach Taken to Marketing in a Business Context

In the context of business, there are various strategies are implement by the companies in marketing. All strategies have significant influence on all approaches that are taken by the business in the marketing. In addition, Asoff, porter’s five forces, SWOT/ TOWS, BCG, branding, PESTEL are considered as various approaches that are consider by the business while marketing the products. Apart from this, the essay will be based on the evaluation of the various approaches that are considered by the business while taking the decisions regarding marketing. Ansoff matrix is considered as one of the significant approach that is recognized by all the businesses to marketing the overall operation (Clarissia, 2020.) This approach is two-by-two framework that is utilized by the analyst community and team management in order to plan and assess the growth initiatives. This tool has significant influence because it assists stakeholders to intellectualize the risk level that are connected with the different growth strategies.

Adaption of this approach is beneficial for the business in the marketing aspect because it assist the marketers to determine the opportunities to grow revenue through tapping into new marketplaces and developing the new goods and services (Syuzeva, and Zheltenkov, 2021). This approach is consisting of four strategies such as market penetration, diversification market and product development. In the market penetration the organization is selling its existing products to existing customers within existing markets. For example, for marketing and growth Tesco is focusing on market penetration strategy in existing markets through promotions. In the product development to grow and develop the business the organizations are developing the existing products which help in attract more customers and increase the profitability. In the context of market development, for the growth and success the companies have to enter into new market to sell the products. In the diversification strategy, the organizations are entering into the new markets with new goods and services to expand the business operations and build the position (B?BEANU, 2022).

Along with this, companies are also use the porter’s five forces model in order to take the effective take decisions regarding marketing. This model is one of the significant frameworks that are used by the business to evaluate the competition level in the industry by assessing the key forces such as bargaining power of suppliers, threat of new entrants, bargaining power of buyers, intensity of competition and threat of substitute goods and services (Goyal, 2020). Execution of this approach is beneficial for the organizations while taking the effective decisions regarding marketing. This approach helps the organizations to assist in measuring competition level of industry, highlighting the strengths and weaknesses and determine the opportunities for business expansion (Anastasiu, Gavri? and Maier, 2020).

In the context of threat of new entrance, to market the products in new market the companies can require to consider various factors such as brand loyalty, cost of entry, specialist knowledge and government policies. If the competition level of industry is high then the companies have to put major emphasis on marketing of the products from which they feel influence and encourage in making purchase from them in compare to competitors. If in the market the products have various alternatives in the markets then the companies need to focus on effective marketing to attract the customers to purchase the products rather than substitutes (Isabelle et al. 2020). For example, Unilever is also using this approach to take the decisions regarding marketing. From this model, Unilever has determined that it has wide range of competitors such have Johnson & Johnson, GSK etc., so due to this it focuses on social media platforms to attract the customers towards it rather than competitors.

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Aside from this, SWOT analysis is considered as another approach that has massive influence on the decisions regarding marketing. Adaption of this model is useful for the business because it helps in assess what organization does best now and formulate a successful strategy for the future. With the help of this model, the organization is determined the strengths, weaknesses, opportunities and threats to grow and develop the operation. For example, if the business doesn’t have online presence in the world then it put major emphasis on marketing of the products to increase its presence and attract more customers. This model helps the business to identify the weak areas from which they can take corrective measure to enhance (Benzaghta et al. 2021). This model also provides the insights about the opportunities to organizations for growing and developing the business operations.

Moreover, this model is considered as powerful tool that can be used by the business to create the effective and smart marketing strategy. This model helps the business to provide the complete information about the internal environment from which they take decisions regarding the marketing. Adaption of this approach is beneficial for the companies because it influence the organizations to take a contemplative look at their management practices and operations. This approach also assists the business to determine the potential risks and threats within the sector (Puyt, Lie and Wilderom, 2023). In addition, this model serves as a solid foundation for decision-making and strategic planning process. SWOT analysis allows the companies to allocate the resources appropriately, set realistic objectives and find out most right corrective measure for long-term success (Jain, Ajmera and Davim, 2022). For example, Marks and Spencer (M&S) is also using this model to take the significant decisions regarding the marketing. With the help of this model, M&S is determined that it has limited international presence so they are requiring advertising or marketing its product at global level to attract the customers and for potential growth and development. Through this model, M&S also analysed that it operate its business operation in highly competitive sector so it is beneficial for them to market the products effectively to attract more customers over the competitors.

To make the decisions regarding the marketing it is crucial for every business to consider the macro environment factors. To analyse the macro environment, most of companies are adapt PESTEL model which is consist of political, economic, social, technological, environmental and legal factor. Adaption of this model is useful for the business because it helps in taking decisions regarding marketing. With the help of this model, the organization can determine the impact of political stability, inflation rate, interest rate, population, technological, legal and sustainability factors of country. This model is useful for the business because it helps in providing the complete insights about the customer’s preferences and needs in order to increase their satisfaction and enhance experience (Buye, 2021). The economic factor also has massive impact on the overall process of marketing in the business. Economic factor includes consumer spending, inflation rates, interest rates, exchange rates, taxation etc. For example, the economic recession reduce the spending of customers so the companies are prefer to spend less amount on marketing to promote the goods and services.

With the help of technologies, organizations can determine the trends of the products in the market to increase the satisfaction of the customers and increase their profitability. To market the products and services as well as increase the conversion rates the organizations are also used social media platforms and influencer partnership (Çitilci and Akbal?k, 2020). For example, Sainsbury’s is using various technologies such as big data, artificial intelligence, internet of things etc., to market its products and automate the entire process which ultimately positively impacts on the overall productivity and profitability. Apart from this, in current times the customers are likely to purchase the sustainable or eco-friendly products to protect the environment and safeguarding of the health. It is crucial for the organization to also consider the environmental factors while taking the decisions regarding marketing. Additionally, it is vital for the organizations to comply all the legal rules and regulations while advertising of products and services within the competitive market.

Furthermore, BCG matrix is another significant approach that is used by the business while taking the decisions regarding the marketing. It is considered as one of the significant planning tool that utilize graphical depictions of the organization’s products and services to take the decisions relevant what it should keep, sell or invest more in (Hossain and Kader, 2020). This approach is consisting of fours quadrants such as question marks, stars, dogs and cash cows. In this model, the companies are taking decisions on the basis of market growth and share of the products. If the products have high market growth and share then the companies are investing huge investments in the marketing or advertising. Adaption of this model is useful for the business because it helps in review the products in comparison to its competitors to gain the competitive advantage (Awware, 2022). From the essay it has been concluded that, the organizations can consider the various approaches such as Ansoff Matrix SWOT, PESTEL, and BCG matrix to take the decisions regarding marketing. With the help of SWOT, organization can improve the areas in which it has weaknesses and threats. Through PESTLE, companies can also identify the consumer spending, patterns and trends of the products within the competitive market.

References

Books and Journals

• Anastasiu, L., Gavri?, O. and Maier, D., 2020. Is human capital ready for change? A strategic approach adapting Porter’s five forces to human resources.Sustainability,12(6), p.2300.
• B?BEANU, S.A., 2022. The Revenue for the New Market using Innovative Business Model.Fostering Recovery through Metaverse Business Modelling, p.469.
• Benzaghta, M.A., Elwalda, A., Mousa, M.M., Erkan, I. and Rahman, M., 2021. SWOT analysis applications: An integrative literature review.Journal of Global Business Insights,6(1), pp.55-73.
• Buye, R., 2021. Critical examination of the PESTEL Analysis Model.Project: Action Research for Development.
• Çitilci, T. and Akbal?k, M., 2020. The importance of PESTEL analysis for environmental scanning process. InHandbook of Research on Decision-Making Techniques in Financial Marketing(pp. 336-357). IGI Global.
• Clarissia, S.M.S., 2020. A study on Ansoff Matrix Technique: As a growth strategy and an adaptive learning technique adopted in the leading brand of products.BIMS Journal of Management,18.
• Goyal, A., 2020. A critical analysis of Porter’s 5 forces model of competitive advantage.Goyal, A.(2021). A Critical Analysis of Porter’s,5.
• Hossain, H. and Kader, M.A., 2020. An analysis on BCG growth sharing matrix.International Journal of Contemporary Research and Review,11(10), pp.21899-21905.
• Isabelle, D., Horak, K., McKinnon, S. and Palumbo, C., 2020. Is Porter's Five Forces Framework Still Relevant? A study of the capital/labour intensity continuum via mining and IT industries.Technology Innovation Management Review,10(6).
• Jain, V., Ajmera, P. and Davim, J.P., 2022. SWOT analysis of Industry 4.0 variables using AHP methodology and structural equation modelling.Benchmarking: An International Journal,29(7), pp.2147-2176.
• Puyt, R.W., Lie, F.B. and Wilderom, C.P., 2023. The origins of SWOT analysis.Long Range Planning,56(3), p.102304.
• Syuzeva, O. and Zheltenkov, A., 2021. Problems of choosing strategies for diversifying companies. InE3S Web of Conferences(Vol. 284, p. 07014). EDP Sciences.

Online

• Awware, 2022. BCG growth-share matrix with examples.. [Online]. Available through: < https://awware.co/blog/bcg-matrix/ >.