41. A Framework and Process for Strategy Development

I have observed that marketers are often frustrated or perplexed by the lack of a process that describes how to develop strategy. On the following pages, you will learn a process that is both streamlined and explained with examples and case studies. Every business is unique, and therefore, many different variables must be considered when developing your own strategies—but the process will work for most businesses. A few adjustments will need to be made depending upon whether you are developing strategies for an existing business, or launching a new business. Here are a few guidelines:

New Businesses:

Begin by developing target market and positioning strategies that will drive all other strategies. A market plan is created to influence the buying behavior of a target audience, so if this strategy is not clear and focused, the rest of your marketing plan will be off target. Positioning is also an important strategic driver because it will determine how your brand is unique.

Existing Businesses:

Begin by creating strategies in the three areas of customers, target markets, and positioning. We have discussed the importance of customer loyalty and its direct correlation to profitability. If you focus on maximizing the value delivered to customers, this will increase retention, loyalty, referrals, profitability, and other positive outcomes.

As you read this section, keep an open mind to strategically explore ideas you may not have considered in the past. Market growth comes from offering increasing levels of differentiation and value to current customers, as well as expanding into new markets. Figure 41.1 illustrates the strategies we will cover in this section.

Figure 41.1 Marketing strategies