This document provides an overview of marketing strategy at multiple organizational levels and its key elements. It discusses that marketing strategy determines how products and services are delivered to markets through decisions around product/market selection, pricing, distribution channels, and communications. The marketing mix of these elements may vary depending on the product, stage of growth, and competitors. Product/market selection involves identifying target market segments and evaluating criteria like product value, growth potential, and company fit. Pricing considerations include costs, competition, customer bargaining power, and product value. Distribution decisions center on using direct or indirect, owned or third-party channels selectively or intensely. Communications objectives aim to create awareness, superiority, purchase information, and additional sales.

1. Marketing Strategy – An Overview
Raymond Corey, HBS Note 9-500-005, 1999
TakeAway Points

2. Marketing Strategy – An Overview, Raymond Corey, HBS Note 9-500-005, 1999
Strategy At Multiple Levels
• Corporate
• Divisional
• Business Unit
• (Function)
• Department

3. Marketing Strategy – An Overview, Raymond Corey, HBS Note 9-500-005, 1999
Marketing Strategy:
How to deliver products & services to markets
• Product / market selection
Which markets with what products?
• Price
Level, structure
• Distribution systems
Wholesale & retail channels
• Communications
Advertising plus
Pre- & Post-sales Service, Branding, Location

4. Marketing Strategy – An Overview, Raymond Corey, HBS Note 9-500-005, 1999
Marketing Mix
Varies …
– From on product to another
– Over stages of growth
– Among competitors

5. Marketing Strategy – An Overview, Raymond Corey, HBS Note 9-500-005, 1999
Product / Market Selection
• Market: a ‘pocket’ of latent demand
“A vein of ore in the ground”
• Product: total package of attributes (tangible and
intangible, direct & indirect, positive & negative) that a
customer obtains when making a purchase
• Perceived value = potential value + education
• Segment: potential customers alike in the way they
perceive value, their buying behavior, and the way they
use the product
Common bases: Demographic, psychographic, geographic, use & application

6. Marketing Strategy – An Overview, Raymond Corey, HBS Note 9-500-005, 1999
Product / Market Selection
Selection Criteria
• Product value: segments that value the product the most
• Long-run growth potential: Core plus follow-on profitability
• Resource commitment: R&D, marketing, production
• Competitive positioning: entry sequence, core competencies
• Company fit: competencies, cannibalization

7. Marketing Strategy – An Overview, Raymond Corey, HBS Note 9-500-005, 1999
Price Elements
• Base level
• Structure
• Discounts
• Terms & conditions
• Promotions

8. Marketing Strategy – An Overview, Raymond Corey, HBS Note 9-500-005, 1999
Price Factors
• Supply & demand
Generally macro, except monopoly conditions
• Production & overhead costs (set the floor)
Current-future, fixed-variable, scale
“Efficient manufacturing & distribution and the realization of scale economies are
often the foundation of market success”
• Competition (sets the ceiling)
Interbrand, Intrabrand (among channel members)
Differentiation = quasi-monopoly status, local monopoly
• Buyer bargaining power
Relative importance, options, switching costs
• Product value to potential customers
Variable across segments, differentiable
Success factors: low cost, differentiation, price leadership

9. Marketing Strategy – An Overview, Raymond Corey, HBS Note 9-500-005, 1999
Price Strategies
• Penetration- skimming
Penetration higher risk: ‘free of defects’, fast adoption,
adequate capacity
• High/low or everyday low (EDLP)
EDLP = no promotions
• One price or customized

10. Marketing Strategy – An Overview, Raymond Corey, HBS Note 9-500-005, 1999
Factors Affecting Price Levels
Price Depressors
• Relatively high supply
• Intense competition
• Intrabrand competition
• High buyer power
• Flexible costing
• Black markets
Price Boosters
• Controlled supply
• High product value
• Product differentiation
• Buyer dependency
• High switching costs
• Price leadership

11. Marketing Strategy – An Overview, Raymond Corey, HBS Note 9-500-005, 1999
Distribution
• Direct-indirect
• Owned-franchised-open
• Selective-intense

12. Marketing Strategy – An Overview, Raymond Corey, HBS Note 9-500-005, 1999
Distribution: Supplier Strength
• Selective vs. intense (intrabrand competition)
• Superior line breadth & depth (single source)
• High interdependency (% business done)
• Presence at retail (sales support)
• End market development (pull)

13. Marketing Strategy – An Overview, Raymond Corey, HBS Note 9-500-005, 1999
Market Communications Objectives
• Create awareness
• Establish product superiority
• Indicate where to buy
• Reinforce purchase decision
• Suggest follow-ons