Corporate strategies and marketing strategies have often shown the tendency to overlap and coincide because as opposed to the popular belief, a major focus of marketing actually included the several aspects of strategic planning- development, pricing and distributing the products in all the strata of society. The two again diverge its route when the corporate strategies have got less to do with the product or even the development of service and sales and more to do with the initiatives of the profit margin.
Going by the conventional logic and concept, strategies refer to planning, and even setting the goals so that the long-term objectives can be reached, and the big picture dreams can be achieved. But tactics, on the other hand, is significantly the methods that have been applied to execute the strategies. What Steven Rindner believes, has been very nicely demonstrated in a simple example. A business might create a brand strategy that actually focuses on the affluent customers in order to segment the market, and hence come up with a low volume, high margin path to profitability. All the tactics to create this brand image would include efforts such as setting the price higher and sell them only in the upscale retail locations.
The corporate strategies mainly focus on the profitability factor of the company. It mainly includes the formation of the organizational structure, reduction of debt in the market to improve the balance sheet at the end of a financial year, diversify the product or specific service to enunciate the margin of profit and merge with other business heads so that the economies of scale can be created.
As opposed to this, marketing strategies would specifically refer to the plans that will have to be made in making and selling the product in the market. They basically revolve around the marketing mix, which is also popular as the four P’s of the product, price, place and finally promotion. It even includes the creation of a product with a unique selling benefit, targeting one particular consumer demographic, setting up the prices based on the margin of profit and brand management needs, and finally sell the products using maximum channels, and make recognition of the brand.
According to Steven Rindner, the functional role that the executive management needs to play is remaining in close contact with the marketing department to determine if they would like for any corporate strategies that would fall in line with the marketing strategies that have been opted for or have been already implemented. For instance, if the upscale women’s shoe company is taken over a branded women’s footwear company, the marketing department will most likely suggest the management not to merge them both but operate as separate brands using one centralized administrative body.
This is exactly a decision that will make the difference between optimum success and a regular meeting of demands. The efficient a management body will be, the better will be the execution of such strategies. One single step in the path will make the difference in the success of an enterprise.