A strategy refers to the execution of a plan. A good strategy is when the plan is executed very well. Now in every company, if you see, strategies would be created at the management level and the company level. Every organization would plan on making an objective first. Then they would create strategies to work for the set goals or objectives. Every firm would want to advertise their products and maximize profits. Ever company creates strategies against competitors as well. Marketing refers to the promotion and advertisement of the company’s sales to increase sales.
Narrow and broad coverage strategies.
If a company offers many products targeted over very few customers, then they follow broad coverage strategies. Example, Nestle product has a wide variety of products such as chocolates, drinks, noodles, healthy mix, etc. They face competition as they are not a monopoly firm. They come up with broad coverage strategies to deal with completion and market their products within the narrow range of customers. Now, consider a company such as Gillett. They offer only two products, razors for men and women. So, they have to advertise their few customized product to a wider group of people. Since there is a monopoly here, they do not face stiff competition. They adopt narrow coverage strategy to market their product. Here, the advertising costs would be much lower compared to broad coverage strategies.
Budget is a set of financial statements consisting of proposed income and expenditure. A well-planned budget is a start to a good strategy. Always ensure that the proposed expenditure does not exceed the income. Plan all your expenses well in advance before you execute the strategy. Set aside a small amount for unforeseen situations such as risk. This cost should also be included in your budget.
Investments are a major source of income for the firm. The returns on investments would be based on how well the firm earns and makes profits. Good marketing strategies attract investors to the firm.
The most effective investment strategy for your firm is to go by the decision tree approach. Here, investment refers to your firm investing in resources. Here, it is first important to set an objective or goal on why your firm wants to invest. Secondly, plan options and back up plans for the very decision you make. Evaluate the outcome of the various option decisions. Consider the risk factor also while you make decisions.
SWOT analysis is yet another effective marketing strategy that helps you make decisions. SWOT analysis is done before any major decision making. It refers to strengths, weakness, opportunities and threats. All the four aspects are weighed and valued one by one. If the SWOT analysis gives a green signal, then that means it is safe to proceed with the particular plan.