Comparing and Contrasting: Business Strategy vs Marketing Strategy

Businesses often blend the term “strategy” regarding their business as a whole, not realizing that they are combining the two major classifications of business strategy and marketing strategy. While they are related, they are not the same thing.

Business Strategy and Marketing Strategy are distinct ways of achieving a company’s goals. Both strategies are important and crucial to a company’s success and are used to provide a plan of action for growth.

Business Strategy can be understood as the overarching strategy for a company that looks at achieving the key revenue and growth targets. It involves the allocation of resources and the development of capabilities, processes, and systems. Business Strategy sets the foundation during which the Marketing Strategy is built upon. Business Strategy is developed by the company’s top management and it paints the larger picture that encompasses all the internal and external factors of the company like finance, human resources, operations, etc. It is an organizational-level strategy that focuses on long-term objectives and goals.

Marketing Strategy, however, is a tactical approach to accomplishing the larger business strategy. It is the way businesses choose the target audience, create value for them, and engage with them — with the primary objective of increasing sales and profits.

Marketing Strategy defines a company’s value propositions, product positioning, packaging, pricing, targeting, and messaging parameters. It creates a roadmap for getting potential customers to know, like, trust, and purchase products and services. Marketing Strategy drives practical steps to stay ahead of competitors, gain market share, and maintain a strong brand presence.

Business Strategy may be likened to a target that an organization wants to reach, while Marketing Strategy would determine the steps that would be taken to hit the target. Marketing Strategy has to ultimately be in alignment and support the larger vision of the Business Strategy.

While Business Strategy determines where the company wants to go, Marketing Strategy then lays out how the company will get there.

An example of this is Mcdonald’s, a fast-food chain. In the year 2017, McDonald’s business strategy focused on penetrating markets with a large local population especially in Asia. This already predetermined business objective then led to their marketing strategy- adapting their menus and brand messaging to local tastes and preferences.

Another example would be Apple. Apple’s Business Strategy for growth is to further develop their product lines, invest in research and development, and move into new territories. Their marketing strategy during product release phases is to engage customers through innovative, sleek advertising and center all attention on the features that draw the most appeal of the customers who will be willing to pay extra for such innovation, indicating high demand.

In conclusion, while both Business Strategy and Marketing Strategy are important and should be developed together and feed off one another, they are separate in purpose and concept. Business Strategy is focused on planning at the big-picture level, determining the company’s course and what it will take to achieve success. Marketing Strategy is focused on implementing those plans and reaching sales targets by targeting specific audiences, engaging them with innovative and thoughtful product placements, and maximizing value propositions.