A business has two main objectives to excel, the first being INNOVATION and the second one is MARKETING.
MARKETING is a process where the business creates awareness about its company, its products and states reasons and arguments quoting the superiority of their products. Marketing is a vital part of the business organisation for through marketing, they create awareness and demand for their product on a wider scale and compel the public to be a customer.
There are wide variety of Marketing Techniques, hence the organization has to carefully opt for the technique that would benefit the company the most in terms of increase in sales and that would give them a competitive edge.
Marketing Strategy and Plans ?
For well organised and effective marketing, the organisation needs to have a well defined, thought over and pre-tested strategy.
The main rule for setting the strategy is to know where the company is present and what do they want to win and achieve in the short term as well as in the long term.
A strategy is really crucial for it sets the parameters and guidelines in which the organisation would be working, so an efficient managerial and operational team is hired and put to hardcore work.
Marketing Strategy VS Marketing Plan
Marketing Strategy means to define the goals the business organisation has to achieve
- It means what has to be done.
Marketing Plans means how the goals have to be achieved.
- It means how it is to be done.
Marketing Strategy Process
- Understand Customer : The first step is to understand the needs of the customers, to study them, their preferences, their buying capacity, their brand loyalty to an existing brand, their desire to switch brands and to try a new brand. All these factors play the most important role.
- Analyse Market : The market analysis is really important to know the future of the organisation and to know the current and future growth aspects.
David A. Aaker outlined the following dimensions of a market analysis:
- Market size (current and future)
- Market trends.
- Market growth rate.
- Market profitability.
- Industry cost structure.
- Distribution channels.
- Key success factors.
- Key success details.
- Analyse Competition: To know the existing competitors and their influence in the market is crucial, as this would warn the company of the number of players and the future threats. This is helpful to make the products distinctive and better than the competitive at reasonable prices.
- Defining Marketing Mix:
Marketing Mix can be easily defined as putting the right product in the right place, at the right price, at the right time.
- Determine Market Position: It is really necessary to know the market position. For that, the company would have to know where is it’s brands actual ranking in the market and customer’s mind and how to bridge the gap strategically and reach where it actually desires to reach in the market.
- Marketing Budget : The bifurcation of how much money is to be spent for marketing and in what manner is called the marketing budget. The following chart is an example of such budget.
- Execution Plan:
Every strategy would be beneficial and would help to achieve the business goals only and only if it is executed i.e if at all the words or plans are brought into action and are followed as decided, to achieve the organisational aim.
There are around 2000 stores of ZARA around the world and 15 of those are in Australia.
Zara has a wide and luxurious variety for men, women and kids.
Marketing Strategies of Zara
Business-world magazine describes it as follows: “Zara is fashion imitator which focuses its attention on understanding the fashion items that its customers wanted and then delivering them, rather than on promoting predicted season’s trends via fashion shows and similar channels of influence, which the fashion industry traditionally used”.
ZARA spends negligible amount on advertising and rather sticks to spending that amount in betterment of its stores. ZARA produces in the country where it sells.
ZARA pre-determines the needs of its customers and satisfies its customers thoroughly.
ZARA gives credit for its success to its workers and employees who accurately forecast the demand well in advance and push mass production under control ,saving the inventories from stocking up, increase the profit margin commendably and also increase the shareholder’s wealth.
NAME : ASHMIN RAMESAN
STUDENT ID : 216080073