Marketing strategy is the most vital business strategy which is often undertaken to promote overall performance of the business. It allows businesses to concentrate their resources which are limited on the most important opportunities for the purpose of increasing sales as well as attaining a resources competitive advantage which is sustainable (Althouse et al 320). Thus, any marketing strategy key concept is to achieve customer satisfaction as the main ultimate goal.
However, according to book reviewed marketing strategy focuses resources of an organization on an action course which is likely to result to increased sales volume as well as domination of a market niche which is targeted. This chapter of the book continues to elaborate on the marketing strategy combination which mainly consists of promotion, pricing, product development, relationship management, and distribution (Althouse et al 314). Marketing strategy is also responsible for determining the target market choice segments, marketing mix, positioning, as well as resources allocation.
Moreover, considering the article of reference AISystems has created an Apps for its jetEngine™, which is a business platform revolutionary software system which is meant to be used by the airline industry. This one is a new marketing strategy involving developing “Apps” to be used by the Business Planning Suite jetEngine™ platform. This strategy was motivated by the success recorded by Apple after creating such kind of Apps for its iPad and iPhone platforms. The AISystems has been forced to undertake the same approach of developing Apps in order to create specific solutions to the airline and cut the cost used for consultation. This is mainly because most airlines most often utilize the services of management consultants, whereby they end up paying a lot of money for a short time consultation over a specific problem. Thus the creation of the jetApp™ which is a specific App for running the jetEngine™ BPS will end up solving same problem which would have otherwise taken several months to be solved by management consultation. The jetApp™ can thus be used to provide solution within minutes rather than months and also the App can be used as many times as the airline wishes.
Understanding the business external environment
Since performance is always the main objective of almost all the organizations, it is most of the times accepted that the decision making and structure in a company is affected by environmental volatility and complexity (Althouse et al 314). Furthermore, most organizations’ strategies are aligned with the environment requirements in order to out perform their competitor organizations. Environmental scanning is always the initial step when aligning business strategy with environment. This is mainly due to the fact that environmental scanning helps organizations to get more information about the opportunities for which to take market competitive advantage as well as challenges to its survival. For instance, the article identifies how improved service delivery and shortened problem solving time by use of the jetApp™ can improve the airline competitive advantage (Althouse et al 314).
However, business environment scanning can be used by managers to facilitate discovering of important trends and events outside their organizations; hence the acquired information about relationships and events in an outside environment of the company leads to knowledge that can assist the management in charting the future action course of the company.
Defining the target market
A target market comprises of a customers’ group which the business has agreed to target in its marketing efforts. A target market which is well-defined is usually the initial component to a marketing strategy. Thus the target market as well as the variable of marketing mix such as product, promotion, place and price are always the main elements involved in the marketing mix strategy responsible for determining a product or service success in the marketplace (Althouse et al 322).
Once these customers who are distinct have been clearly defined, then a marketing mix can be developed by the business for the purpose of satisfying its target market. This involves use of different strategies in order to reach the target markets such as mass marketing or undifferentiated marketing, concentrated marketing, differentiated marketing, and micromarketing.
Market competitiveness advantage
When a business is capable of sustaining profits exceeding the industry average, the business is thus said to have a competitive advantage in the market over its rivals. The main aim most of the business strategies is to attain a competitive advantage which is sustainable. However, competitive advantage is experienced in situations where the company is capable of delivering same benefits as those being offered by competitors but at a cost which is lower leading to cost advantage over its rivals, or delivering more benefits compared to those of products that compete against them referred to as differentiation advantage (Althouse et al 320). Thus, the market competitiveness advantage enhances the business to create better value for the customers as well as more profits for itself.
Competitive advantage in the referred airline has been created by use of capabilities and resources to achieve lower cost and differentiated services. This is evident in our case whereby the use of jetApp has improved the overall performance of the businesses by differentiating the products and lowering the operational costs mainly by timely ordering of fuel when prices are low (Althouse et al 321). Thus the airline business has positioned itself well in the industry by the choice of differentiation and low cost. This intervention comprise of a central component of the competitive strategy of the business.
The book been reviewed demonstrates competitive advantage as the advantage which the business has over its rivals, which then allows it to make more sales and retain a large number of customers. There are several types of market competitive advantages such as the cost structure of the business, customer support, and distribution network and product offerings (Althouse et al 324). Competitive advantages always end up giving a business an edge over its competitors as well as the capacity to generate more value for the business as well as its shareholders. Thus the more the competitive advantage can be sustained the harder it will be for the rivals to neutralize that competitive advantage.
Differential advantage leads to competitive advantage because of its unique characteristics or benefits of a business that usually makes it different from its rivals in the viewpoint of customers. Differential advantage is however obtainable from any element composed in the strategy of marketing mix as well as combining both. Better service, effective distribution, superior product, more attractive design, and better advertising comprise of the benefits of competitive advantage (Althouse et al 320).
A niche market comprises of a potential customers group who are in possession of similar characteristics that determines their receptiveness to certain services or products. The niche competitiveness is a marketing strategy looking at these characteristics that might not be more complicated because they only involve concentrating on a simple need (Althouse et al 323). Therefore the main aim of a niche competitiveness marketing strategy is mainly to turn an appropriate portion of the competitive market into a niche and dominate it.
In conclusion marketing strategy is a very vital tool to any business for it to remain competitive over its competitors (Althouse et al 324). The market competitive advantage involves reduced prices of the products or services compared to competitors as well as the differential advantage which increases value of products or services to customers at the same prices. These aspects have been clearly illustrated and elaborated in chapter 12 of the review book and also these strategies have been applied in the AISystems jetApp which has led to a strategic marketing resulting to improving the business competitive advantage.
Althouse, Norm R. et al. The Future of Business: Second Canadian Edition. 2nd ed. Scarborough: Nelson Education Ltd, 2008.