Strategy at its heart focuses on the significance and/or the cause and effect to achieve such goals. For many companies this involves a kaleidoscope approach where research, planning, and activation are required.
Strategy requires multiple touch points with creative problem solving to address challenges within the business, brand, and marketing execution. Although closely interwoven, business strategy, brand strategy and marketing planning are verticals that each require varying processes.
Confused about the differences? We’re taking you back to the historical difference and why a new way of looking at strategy is required.
Historical Evolution of Strategy
In the late 50s and early 60s, Peter Drucker, nicknamed the “father of management thinking,” centralized his work in economists around the competition on price. In response, American academic Michael Porter, nicknamed the “founder of modern strategy,” issued his response to Drucker. Foundationally strategy narrowed down to two key pillars according to Porter:
- Do what everyone else is doing (but spend less money doing it), OR
- Do something no one else can do.
Following Porter’s publication, subsequent strategy ideals emerged to highlight the need to:
- Do something new.
- Build on something you already do.
- React opportunistically to emerging possibilities.
Companies to this day struggle with the notion of strategic planning. What business considerations should we consider? How do we develop a compelling brand that speaks to our value? How do we market tactically to reach a broader audience? Another consideration highlighted by Chris Zook and James Allen included the importance of a repeatability framework.
Once strategic drivers are isolated, how can repeatable components drive sustainable company growth? CEOs need to approach strategy with discipline and restraint to, “Never put the core business at risk.” If companies find a repeatable process (and strategy) to be successful in one expertise vertical, other growth may be achieved within emerging verticals. Strategy has evolved throughout the years, but the significance of its importance is being used by companies irrespective of size and industry agnostic – from emerging startups through Fortune 500.
Business Strategy
Business strategy is utilized as the overarching umbrella for company growth. Its combination of goal identification, decision-making, and action performance requires alignment and the right skillset to provide a strategic business framework. Business strategy provides five benefits for organizations:
- Strategic planning outlines the goals and objectives for growth whereas the business strategy provides the ways to meet and/or exceed these goals.
- The process for business strategy helps facilitate the strength + weakness conversation among stakeholders.
- Business strategy enables efficiency and effectiveness for growth. If the right resources are allocated to tactical implementation, companies have a higher chance of success.
- Companies are better equipped to develop their brand after the business strategy process. Competitive advantages provide greater context to differentiators within the brand and marketing strategy.
- Business strategy gives companies a clear path forward. Direct control over a company’s business trajectory provides value internally among stakeholder and externally when capturing new audiences or re-engaging with current targets.
Business strategy considers the objectives of running the company: what needs to be done, how it needs to get completed, and who is responsible for getting it completed.
This includes a SWOT analysis (strengths, weaknesses, opportunities, and threats), operational tactics on a departmental level, resource procurement and allocation, and measurement of business output and performance. A business strategy may encompass the creation of a new market, the merger and acquisition of a competitor, the development of a product differentiator, or a competing price model (a nod to Peter Drucker’s philosophy).
Brand Strategy
Brand strategy injects life into business strategy. It provides a vehicle for expression through visual identity, story evolution, and communications tone.
In comparison to a SWOT analysis through business strategy, brand strategy focuses on the uniqueness factor. What characteristics and attributes does our brand strategy include? How are we positioning our uniqueness through our visual identity and storytelling? What audience are we looking to attract and how does our mission and vision align with what’s important to that audience? Brand strategy is critical when a company:
- Launches for the first time
- Refreshes its brand
- Extends its brand with a new offering
- Combines its brand under a merger and acquisition
Brand strategy differs from what many consider are marketing tactics. According to Visme, brand strategy creates “a map for achieving long-term goals that do not always need a discreet endpoint. A strategy is more like a process or a path that involves moving iteratively towards your goals.” Unlike tactics which are concrete initiatives, brand strategy helps communicate a brand’s personality. This is a critical step before a company develops and implements marketing tactics.
Marketing Strategy
After the brand strategy process is complete, companies need a marketing strategy and plan to activate, promote, and engage. Brand strategy provides the contextual framework for a brand’s position.
This differs from the marketing strategy and tactical execution which involves specific initiatives. It essentially puts a product or service in front of the right audience, at the right time, at the right price, and at the right value.
Brand strategy answers the question, “WHY?” whereas marketing strategy answers the question, “HOW?” Why does your brand exist (brand strategy)? How do we reach our company’s purpose to a specific audience (marketing strategy)? Marketing strategy serves as an integral arm of brand strategy. With the brand’s long-term direction, marketing short-term initiatives include campaigns, PR, digital, or in-person events. Combining these provides the ideal roadmap for equitable growth.
Strategy is a prerequisite in today’s evolving world. With an increased need among companies to drive growth, strategy unifies business, branding, and marketing to create a cohesive and compelling plan. Finding significance in competitive industries and congested markets requires a keen understanding of who you are as a company, why you exist, and how you plan on reaching and engaging your target market.
The missing piece for many organizations is a solid understanding of what this layered approach to strategy is. The interwoven process will help companies propel without the need of just referring to Drucker’s pricing landscape. Strategy rises above the pricing model to evolve and transform brands to the forefront as respective leaders in their industry.
