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Marketing strategy

 
Gale Nutrition Encyclopedia:

Marketing Strategies

The American Marketing Association defines marketing as "the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives." Marketers use an assortment of strategies to guide how, when, and where product information is presented to consumers. Their goal is to persuade consumers to buy a particular brand or product.

Successful marketing strategies create a desire for a product. A marketer, therefore, needs to understand consumer likes and dislikes. In addition, marketers must know what information will convince consumers to buy their product, and whom consumers perceive as a credible source of information. Some marketing strategies use fictional characters, celebrities, or experts (such as doctors) to sell products, while other strategies use specific statements or "health claims" that state the benefits of using a particular product or eating a particular food.

Impact and Influence
Marketing strategies directly impact food purchasing and eating habits. For example, in the late 1970s scientists announced a possible link between eating a high-fiber diet and a reduced risk of cancer. However, consumers did not immediately increase their consumption of high-fiber cereals. But in 1984 advertisements claiming a relationship between high-fiber diets and protection against cancer appeared, and by 1987 approximately 2 million households had begun eating high-fiber cereal. Since then, other health claims, supported by scientific studies, have influenced consumers to decrease consumption of foods high in saturated fat and to increase consumption of fruits, vegetables, skim milk, poultry, and fish.

Of course, not all marketing campaigns are based on scientific studies, and not all health claims are truthful. In July 2000 a panel of experts from the U.S. Department of Agriculture supported complaints made by the Physicians Committee for Responsible Medicine that the "Got Milk" advertisements contained untruthful health claims that suggested that milk consumption improved sports performance, since these claims lacked scientific support. In addition, the panel agreed with the physicians' claim that whole milk consumption may actually increase the risk of heart disease and prostate cancer, and recommended that this information be included in advertisements.

The tremendous spending power and influence of children on parental purchases has attracted marketers, and, as a result, marketing strategies aimed at children and adolescents have increased. Currently, about one-fourth of all television commercials are related to food, and approximately one-half of these are selling snacks and other foods low in nutritional value. Many of the commercials aimed at children and adolescents use catchy music, jingles, humor, and well-known characters to promote products. The impact of these strategies is illustrated by studies showing that when a majority of television commercials that children view are for high-sugar foods, they are more likely to choose unhealthful foods over nutritious alternatives, and vice versa.

Inappropriate Advertisements
Attempts to sell large quantities of products sometimes cause advertisers to make claims that are not entirely factual. For instance, an advertisement for a particular brand of bread claimed the bread had fewer calories per slice than its competitors. What the advertisement did not say was that the bread was sliced much thinner than other brands.

Deceptive advertising has also been employed to persuade women to change their infant feeding practices. Advertisers commonly urge mothers to use infant formula to supplement breast milk. Marketing strategies include giving women trial packs or coupons for several months of free formula. Often, women are not aware that supplementing breast milk with formula will reduce or stop their milk supply. When the samples and coupons are no longer available, women may try to "stretch" the formula by mixing it with water, unaware that diluting the formula places their infant at risk for malnutrition. Many groups have objected to the use of marketing strategies that include free formula and coupons, and infant-formula manufacturing companies have been forced to modify their marketing practices.

Other marketing strategies involve labeling foods as "light," meaning that one serving contains about 50 percent less fat than the original version (or one-third fewer calories). For example, a serving of light ice cream contains 50 percent less fat than a serving of regular ice cream. As a result, consumers mistakenly believe that eating light food means eating healthful food. However, they fail to realize that a serving of the light version of a food such as ice cream can still contain more fat and sugar than is desirable.

Food labels with conflicting information often confront consumers. For example, labels claiming "no fat" do not necessarily mean zero grams of fat. Food labeling standards define low-fat foods as those containing less than 0.5 gram of fat per serving. Therefore, consuming several servings may mean consuming one or two grams of fat, and people are often unaware of what amount of a food constitutes a "serving." In addition, foods low in fat may be high in sugar, adding additional calories to one's daily caloric intake. Too often, consumers mistakenly translate a claim of "no fat" into one of "no calories."

Other examples of conflicting claims include labels advertising foods as "high in fiber," without specifically indicating the presence of high levels of salt, sugar, or other nutrients. Also, labels advertising dairy products as high in calcium, and thus offering protection from osteoporosis, are often missing information relating to the high fat content and its possible contribution to the risk of heart disease.

Consumers are also misled by food comparisons. For example, one fruit drink may be advertised as containing more vitamin C than another, when in reality neither of the drinks are a good source of the vitamin. In addition, labels on some fruit drinks claim that the product "contains real fruit juice" when, in reality, the fine print reveals that one serving contains "less than 10% fruit juice."

Recommendations for Responsible Food Marketing
Consumers rely on product advertisements and food labels for nutritional education. The American Association of Advertising Agencies states that responsible food marketing strategies should: (1) avoid vague, false, misleading, or exaggerated statements; (2) avoid incomplete or distorted interpretations of claims made by professional or scientific authorities; and (3) avoid unfair product comparisons. Advertisers must also consider the long-term consequences or potential for harm stemming from their claims. While these recommendations are important in developed countries, they become even more critical in international marketing campaigns.

It is also important for consumers to recognize their role in evaluating health claims and product comparisons. While advertisers are aware of the need for truth in advertising, sometimes their desire to sell products over-shadows an accurate disclosure of product attributes. Advertisers should bear in mind that inaccurate or vague health claims have the potential to cause economic hardship, illness, and even death. Lastly, marketing strategies used in developing nations should be subjected to the highest standards of truth in advertising.

See also Eating habits; Health claims.

Bibliography
Belch, George E., and Belch, Michael A. (1995). Introduction to Advertising and Promotion: An Integrated Marketing Communications Perspective. Boston: Irwin.
Boyle, Marie A., and Morris, Diane H. (1994). Community Nutrition in Action. St. Paul, MN: West Publishing.
Chetley, Andrew (1986). The Politics of Baby Foods: Successful Challenges to an International Marketing Strategy. New York: St. Martin's.
Connor, John M., et al. (1985). The Food Manufacturing Industries: Structure, Strategies, Performance, and Policies. Lexington, KY: D.C. Heath.
Elder, John P. (2001). Behavior Change and Public Health in the Developing World. Thousand Oaks, CA: Sage.
EPM Communications (1998). "TV Is the Most-Often-Used Source of Health Information." Research Alert 16:7.
Goldberg, Jeanne P., and Hellwig, Jennifer P. (1997). "Nutrition Scientists in the Media: The Challenge Facing Scientists." Journal of the American College of Nutrition 16:544–550.
Jeffrey, D. B.; McLellarn, R. W.; and Fox, D. T. (1982). "The Development of Children's Eating Habits: The Role of Television Commercials." Health Education Quarterly 9:174–189.
Mathios, Alan D., and Ippolito, Pauline M. (1998). "Food Companies Spread Nutrition Information through Advertising and Labels." Food Review 21(2):38–44.
Nestle, Marion. (2000). "Soft Drink 'Pouring Rights': Marketing Empty Calories to Children." Public Health Reports 115:308–319.
Sutton, Sharon M.; Balch, George I.; and Lefebvre, Craig (1995). "Strategic Questions for Consumer-Based Health Communications." Public Health Reports 110:725–733.
Taras, H. L., et al. (1998). "Television's Influence on Children's Diet and Physical Activity." Journal of Developmental and Behavioral Pediatrics 10:176–180.
Taylor, Anna (1998). "Violations of the International Code of Marketing Breast Milk Substitutes: Prevalence in Four Countries." British Medical Journal 316:1117–1122.


Internet Resources
Baker, Linda (2000). "Breast-Feeding vs. Formula Feeding: Message in a Bottle." Available from http://www.zipmall.com/bab-bott.html
Center for a New American Dream. "Just the Facts About Advertising and Marketing to Children." Available from http://www.newdream.org/campaign/kids/facts.html
Infant Feeding Action Coalition (INFACT) Canada (2002). "Infant Foods and Health Claims." Available from http://www.infactcanada.ca/claimsfall1998.htm
Medical College of Wisconsin. "Health Claims on Food Labels: What Do They Really Mean?" Available from http://healthlink.mcw.edu/article/974663611.html
Optimal Wellness Center (2002). "USDA Confirms Milk Ads Make False Health Claims." Available from http://www.mercola.com/2001/oct/3/milk_ads.htm
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Wikipedia on Answers.com:

Marketing strategy

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Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.[1]

Contents

Developing a marketing strategy

Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives.[2] Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases.[3] Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics.

Marketing strategy involves careful scanning of the internal and external environments.[4] Internal environmental factors include the marketing mix, plus performance analysis and strategic constraints.[5] External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success.[3][6] A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.[7]

Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation.[3] A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan.

Types of strategies

Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:

  • Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:
    • Leader
    • Challenger
    • Follower
    • Nicher
  • Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.
  • Innovation strategies — This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:
    • Pioneers
    • Close followers
    • Late followers
  • Growth strategies — In this scheme we ask the question, “How should the firm grow?”. There are a number of different ways of answering that question, but the most common gives four answers:

A more detailed scheme uses the categories[8]:

  • Prospector
  • Analyzer
  • Defender
  • Reactor
  • Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies.

Strategic models

Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy.

There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges.The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps.

Real-life marketing

Real-life marketing primarily revolves around the application of a great deal of common-sense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven.

Thus, for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable.

For most of their time, marketing managers use intuition and experience to analyze and handle the complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the knowledge of the customer which has been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This, almost instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by the theorists.

See also

References

  1. ^ Baker, Michael The Strategic Marketing Plan Audit 2008. ISBN 1902433998. p.3
  2. ^ Marketing basics Marketing strategy based on market needs, targets and goals.
  3. ^ a b c Aaker, David Strategic Market Management 2008. ISBN 9780470056233
  4. ^ Hausman Marketing Letter Definition of Marketing Series
  5. ^ Aaker, David Strategic Market Management 2008. ISBN 9780470056233.
  6. ^ http://www.marketingthatworks.tv/marketing-explained-in-short-easy-words/definition-of-marketing-series-marketing-strategy.html MarketingThatWorks.TV Marketing Strategy.
  7. ^ Baker, Michael The Strategic Marketing Plan Audit 2008 ISBN 1902433998. p. 27
  8. ^ Miles, Raymond (2003). Organizational Strategy, Structure, and Process. Stanford: Stanford University Press. ISBN 0804748403. 

Further reading

  • Laermer, Richard; Simmons, Mark, Punk Marketing, New York : Harper Collins, 2007 ISBN 978-0-06-115110-1 (Review of the book by Marilyn Scrizzi, in Journal of Consumer Marketing 24(7), 2007)

 
 

 

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Gale Nutrition Encyclopedia. Nutrition and Well-Being A-Z © 2004 The Gale Group, Inc. All rights reserved.  Read more
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