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How Is Strategy Different From Marketing?
Posted By: mac504 on 8/26/2004 11:48 AM (CST) 25 Points
Why is STRATEGY (as taught by Michael Porter) taught as a different subject from marketing? Shouldn't strategy be considered a subset of marketing?

Posted by: Inbox_Interactive Accepted Answer
8/26/2004 12:25 PM (CST)
I see it differently. I think marketing is a subset of strategy. To me, "strategy" means your overall business strategy, which is really an umbrella for many smaller, different types of strategy. For example, Wal-Mart uses nearby warehouses to keep its stores' shelves stocked using just-in-time inventory management. This is certainly part of their strategy, but it has little to do with marketing.

Conversely, Wal-Mart has made the decision to sell its products at razor-thin margins in absolute defense of being known as the cheapest place to buy things (there is actually a CAP on gross margin for every product), and I view this as a strategic and marketing decision.

IMHO, strategy covers all facets of an operation and how it will compete, a part of which is marketing.
 
Posted by: mac504 Author Response
8/26/2004 12:49 PM (CST)
Well when I said strategy I meant competitive strategy.

But as far as marketing being a subset of business strategy as a whole I disagree.Business strategy should be formed based on marketing.Marketing comes first.Marketing deals with external concerns.Most other business functions(accounting,operations,management etc)are internal concerns.Your internal functions should be based on whats going on in the marketplace.

Walmarts inventory and operations strategy are based on its marketing strategy"every day low prices".
 
Posted by: Peter (henna gaijin) Accepted Answer
8/26/2004 7:06 PM (CST)
Marketing versus Business Strategy

I agree with Inbox_Interactive that marketing should be a subeset of business strategy. Most businesses are in business to make money, but not all (such as non-profits. Or Criagslist.org, which is a successful, but funny, little for-profit that doesn't have the goal of profit). If the business strategy is to maintain or grow the market, you use marketing. But those few that don't want to grow their market may not use marketing.

And marketing definitely should be something used early on at most companies. But not always the first or most important thing. Using pharmaceuticals as an example, they can't create drugs to meet needs. They instead create drugs and then see what needs it may meet. In this case, science is first, followed closely by marketing to see if the drug is worth continuing to develop into a viable product.

Marketing versus Competive Strategy

I still go with them being separate. Yes, marketing is often a key player in determing competitive strategy, but there are other tactics you can use to gain a competitive advantage which don't involve marketing. One that comes to mind is Mergers and Acquisition - marketing is not always involved in the decision to buy a competitor or to buy another company that allows you to expand into a similar business.

Yes, someone looked at the market and decided it was worth doing, but that doesn't necessarily mean it was someone in 'marketing' doing 'marketing'. Marketing doesn't own the customer, we are just the ones who are usually most attuned to the overall situation in the market.

 
Posted by: ASVP/ChrisB Accepted Answer
8/26/2004 9:25 PM (CST)
They're inextricably linked and everyone has their own take on the difference (refer above for evidence).

To me this question is like "What's the difference between English and Maths"? Chances are, if you're no good at one, you'll struggle with the other, and it's better to understand a bit of both rather than all about one at the expense of the other...

Ahem... Let me just step off this soap box so the next speaker can get on...
 
Posted by: SteveByrneBranding Member Response
8/27/2004 7:31 PM (CST)
Let me just step off this soap box so the next speaker can get on...

Thank you Chris, let me just say that strategy is a --ooops just took a header off the soapbox, next …..
 
Posted by: Wiglaf Accepted Answer
8/29/2004 7:46 PM (CST)
The challenge is one of terminology. When most people refer to marketing, they mean customer communication tactics like advertising, direct mail, etc. When they refer to strategy, they mean something broader.

If we define marketing's job as creating customers and capturing profitable revenues, then "strategy" is a subset of marketing. But creating buyin accross the world that that is the the definition of marketing will take effort. You have clearly bought in on this definittion though.

In personal experience, I have noticed that when I speak of "pricing" or "segmentation" people think of strategy. When I speak of "sales" or "promotion" they think of marketing.

 
Posted by: ajay Accepted Answer
8/30/2004 12:42 AM (CST)
Hi

Strategy is basically ways and means of getting a desired action in any function marketing, sales, HR, production etc. Thus strategy has a larger perspective compared to any function perspective. But in daily functions, no doubt many a times strategy is substituted with marketing and vice-a-versa

Cheers!
 
Posted by: deepa_joe* Member Response
9/7/2004 1:52 AM (CST)
Hi !!!

I agree with Ajay !!!
 
Posted by: Ruchi* Accepted Answer
9/10/2004 12:34 AM (CST)
hi,

agree with heena, as marketing is a subset of business starategy. we firstly decide the strategy we are going to take in our business and on that basis we do marketing for our company products.
 
Posted by: Sharon Moderator Response
9/12/2004 2:27 PM (CST)
Hello all. I am closing this question. This is standard procedure when the question author gets busy and falls out of the conversation for a while – or doesn’t understand the procedure for closing.

Thanks for participating!
 


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