marketing_strategy

Marketing Strategy : 

Marketing Strategy Segmentation, Targeting and Positioning

The Tools of Marketing : 

the “Offering” The Tools of Marketing Mission SBUs STP

Business Strategy : 

Business Strategy A Business has customer groups (i.e. markets), customer needs, core offering Three generic business strategies (Porter): 1. Overall cost leadership 2. Differentiation 3. Focus

Business Growth Strategies : 

Business Growth Strategies

Marketing Strategy (STP) : 

Marketing Strategy (STP) Segmentation of customer groups (markets) Selection of specific Target Markets Positioning of core offering to each target market

The Environments : 

The Environments FACTORS SHAPING PRIMARY DEMAND Cultural, Social and Demographic Environment Major effect is on people’s and organization’s willingness to buy certain kinds of products and services Economic and Technological Environments Impacts on people’s and organization’s ability to buy Political and Legal Environments Impacts on the nature of practices used to drive primary and selective demand May also shape primary demand for goods and services needed to comply with regulations

The Environments : 

The Environments FACTORS SHAPING SELECTIVE DEMAND Competitive Environment Impacts on whether we can meet buyer needs better than anyone else Includes substitutes Major effect is on people’s and organization’s choice of brands other than yours Customer Environment Major effect is on people’s and organization’s choice of brands Current Marketing Situation (i.e. the internal environment) Major effect is on people’s and organization’s choice of your brand over others

Competitive Assessment : 

Competitive Assessment Marketing Strategy Target Market(s) Business Strategy Generic Strategy Market Share Key Success Factors Share of Mind Competitive Advantage (Positioning) Marketing Mix Elements Core Offering(s) Product/Service Quality Pricing Communication Media Personal Selling Methods Distribution Methods Location Post-sales service For Each Competitor, Assess the following:

Segmentation Scheme : 

Segmentation Scheme Level 1 - Base Level 2 - Base Typical Bases: Demographic Geographic Behavioral Psychographic

A Sample : 

A Sample

The Segmentation GridConsumer Profiling : 

The Segmentation GridConsumer Profiling Contents: Who buys… What Where When Why How

Assessment of Current Marketing Situation : 

Assessment of Current Marketing Situation Current marketing strategy assessment Segmentation strategy Target Markets Positioning & Branding Marketing Mix Elements Sources of competitive advantage Constraints Budget Technology Human factors Channels Suppliers Management, etc.

SMART Objectives : 

SMART Objectives Specific Measurable Achievable Realistic Timeline The Marketing Plan A Hierarchy of Objectives

Integrating Analysis with Planning : 

ASSESS MARKET-COMPANY FIT Define Quality and Identify Segments You Can Serve(Targeting) ASSESS PRODUCT-COMPANY FIT Evaluate Relative Quality and Identify Competitors You Can Beat (Targeting & Positioning) Integrating Analysis with Planning

Alternatives Segmentation Strategy : 

Alternatives Segmentation Strategy

Targeting Decision Matrix : 

Targeting Decision Matrix

Positioning : 

Positioning The “definition”, “place”, or “identity” of a product in the minds of consumers, relative to competitive offerings. Assumes Differentiation A positioning statement To defined target segment X is the brand of defined category That unique selling proposition

Positioning Competitively:Alternative Positioning Strategies : 

Positioning Competitively:Alternative Positioning Strategies Product attributes Benefits offered Usage occasions Classes of users Directly on competitor Around competitor Against product class

Positioning: The Unifying Theme for Marketing Efforts : 

Positioning: The Unifying Theme for Marketing Efforts Positioning Reflects Key Elements of Strategy How we think the customer views the product How we want the customer to think about us Who the customer sees as a substitute for us What we feel we can do better than the competition Positioning Shapes Customer Expectations A “promise” to potential customers The reason they give us trial; the standard we mustmeet All Marketing Elements Must Reinforce the Positioning Positioning embodies the principle of market FOCUS Focus requires a concentration on a specific type of customer Inconsistencies between marketing tools leads to a loss of efficiency and effectiveness

Creating a Value Proposition (Positioning) : 

Creating a Value Proposition (Positioning) Part 1: What We Do For the target market Who want the “consumption problem” (what “need” do you serve?) Our product is our portion of the “solution” (when do they think about your class of product in connection with that need?) That features key benefit provided (what’s the one or two things you want them to remember about you?) As measured by how the customer infers quality Part 2: Why We Will Win Unlike our main competitors Our product provides key point(s) of difference As supported by what makes our difference possible (why they should believe us…TODAY) And protected by why the competition cannot easily overcome it (why they should believe us…TOMORROW)

The role of the marketing mix : 

The role of the marketing mix Product Price Place Promotion Physical Evidence Process People Partnering Target Customers Positioning Marketing Strategy Decisions Tactical Implementation Customer Effects

Some Decision Areas Organized by the Four Ps : 

Some Decision Areas Organized by the Four Ps

Some Decision Areas Organized by the other Ps : 

Some Decision Areas Organized by the other Ps

Marketing Mix : 

Marketing Mix

Implementation : 

Implementation

Budget : 

Budget Projections of sales Include and note implementation costs Sensitivity analysis

Controls : 

Controls Overall Plan Objectives Individual Segment Objectives The Marketing Plan A Hierarchy of Objectives Metrics Method of Evaluation Timing and frequency of Evaluation Reaction Plans Contingencies

The Report : 

The Report Introduction (Background) Case Problem(s), Issue(s) Objectives/Decision Criteria Analysis Current marketing situation Identification and analysis of alternatives Marketing Strategy/ Recommendations Implementation Plan (Marketing Mix)

Sources : 

Sources Dr. S. Armstrong, Wharton Dr. M. Cunningham, Queen’s Mr. K. Wong, Queen’s Dr. S. Taylor, Queen’s Kotler and Keller (2007), A Framework for Marketing Management – 3rd Edition, Pearson/Prentice Hall Zeithaml, Bitner, and Gremler (2005), Services Marketing – 4th Edition, McGraw-Hill The 2201 Team – S. Myrden, D. Stapleton, T. Jones