In this blog we explore the relationship between business strategy and marketing strategy. We look at what each is and break down why it is critical to understand the difference between the two and how they are interconnected for any business that wants to grow.
What is a Business Strategy?
The Purpose of a Business Strategy
A business strategy is a comprehensive and long-term plan of action that a business follows to reach its goals and objectives. It is the organisational roadmap, that directs the business to success. At its core, business strategy includes the business’s overarching vision, its defined goals, and the detailed plans and tactics that will be used to achieve these objectives. The ultimate aim of a business strategy is so the business can meet its objectives and create sustainable growth, whilst setting it apart from its competitors.
What is a Marketing Strategy?
The Role of a Marketing Strategy
The marketing strategy is a vital part of the wider business strategy. It focuses solely on the marketing activities a business will undertake to promote its products or services. A marketing strategy defines the target audience, the value proposition, and the tactics the business will use to reach its audience. It covers the whole marketing scope, such as product, price, promotion, and place, as well as the messaging and communication channels that will be used.
What are the differences?
Scope
One of the primary differences between these two strategies is their scope. Business strategy looks at the business in its entirety, including operations, finance, sales, human resources, and marketing. In contrast, marketing strategy is narrower and focuses solely on the marketing activities that a business will undertake.
Timeframe and How They’re Measured
Business strategy is a long-term plan that spans several years, while marketing strategy is a short-term plan that is reviewed and updated more frequently, typically annually or even more regularly.
The measurement of these strategies also differs. Business strategy is measured in terms of overall business performance metrics, such as revenue, profit, and market share. Marketing strategy, on the other hand, is measured in terms of marketing-specific metrics, such as customer acquisition, customer retention, and customer lifetime value.
Focus and How They Work Together
The focus of these strategies varies as well. Business strategy centres on the overarching goals and objectives of the business. It considers how the business can achieve sustainable growth while keeping a watchful eye on its competitors. Marketing strategy, on the other hand, focuses on the marketing activities that will help the business achieve those broader goals and objectives.
Business strategy is intrinsically linked in all aspects of the business, from operations to finance, while marketing strategy is integrated into the overall business strategy but has a narrower focus on marketing-specific activities.
In Summary
Business strategy and marketing strategy are two separate things and are not interchangeable. They each have their own unique roles within a business.
Business strategy is the overarching, long-term plan that looks at all aspects of the business, while marketing strategy is focused solely on the marketing activities that will help achieve the broader business goals.
It’s not about choosing one over the other, but about recognising how they work alongside each other. Understanding these differences and integrating both strategies is essential for achieving goals, sustainable growth and staying ahead.
Free Guide – How to Create a 90-Day Plan For Your Business
If you’re looking for a roadmap to walk you through the exact steps to create an actionable plan that aligns with your business goals, then our ‘How To Create a 90-Day Plan For Your Business’ free guide is perfect for you! Download your copy here.
Related
The Importance of Developing a Strong Business Strategy
The Business Plan – A Blueprint for Success
Build Your Business
Why not transform your business one system at a time? Sign up for the Simply Systems Newsletter to receive weekly tips, tools and strategies to streamline your business straight to your inbox.
© The Systems Lab® 2023. All rights reserved.
Comments +