Serving the entire spectrum of the market by selling differentiated products to different segments in the market.
Requirements: (a) Employ different combinations of price, product, promotion, and distribution strategies in different segments (b) Top management commitment to embrace entire market (c) Strong financial position.
Entering the market toward tail end of growth phase or during maturity phase. Two modes of entry are feasible: (a) Imitator - Entering market with me-too product (b) Initiator - Entering market with unconventional marketing strategies.
Requirements: Imitator - (a) Market research ability (b) Production capability. Initiator - (a) Market research ability, (b) Ability to generate creative marketing strategies.
Placing a brand in that part of the market where it will have a favorable reception compared with competing brands.
Requirements: (a) Successful management of a single brand requires positioning the brand in the market so that it can stand competition from the toughest rival and maintaining its unique position by creating the aura of a distinctive product.
Requirements: (a) Single product : company must stay up-to-date on the product and even become the technology leader to avoid obsolescence (b) Multiple products : products must complement one another in a portfolio of products
Objectives: (a) Standard product : to increase economies of scale of the company (b) Customized product : to compete against mass producers of standardized products through product-design flexibility (c) Standard product with modifications : to combine the benefits of the two previous strategies.
Choosing the channels (newspapers, magazines, television, radio, outdoor advertising, transit advertising, and direct mail) through which messages concerning a product/service are transmitted to the targets.
Requirements: (a) Relate media-selection objectives to product/market objectives (b) Media chosen should have a unique way of promoting the business (c) Media should be measure-minded not only in frequency, in timing, and in reaching the target audience but also in evaluating the quality of the audience
(d) Base media selection on factual not artificial grounds, (e) Media plan should be optimistic in that it takes advantage of the lessons learned from experience (f) Seek information on customer profiles and audience characteristics.
Establishing the scope of distribution, that is, the target customers.
Choices are exclusive distribution (one retailer is granted sole rights in serving a given area), intensive distribution (a product is made available at all possible retail outlets), and selective distribution (many but not all retail outlets in a given area distribute a product).
Employing two or more different channels for distribution of goods and services.
Multiple-channel distribution is of two basic types: complementary (each channel handles a different non-competing product or market segment) and competitive (two different and competing channels sell the same product).
Use of complementary channels prompted by (i) geographic considerations, (ii) volume of business, (iii) need to distribute non-competing items, and (iv) saturation of traditional distribution channels.
Use of competitive channels can be a response to environmental changes.
Requirements: (a) Heavy promotional expenditure to introduce product, educate consumers, and induce early buying (b) Relatively inelastic demand at the upper end of the demand curve (c) Lack of direct competition and substitutes.
Requirements: (a) Firm's served market is not significantly affected by changes in the environment (b) Uncertainty exists concerning the need for or result of a price change (c) Firm's public image could be enhanced by responding to government requests or public opinion to maintain price.
Objectives: (a) To act defensively and cut price to meet the competition (b) To act offensively and attempt to beat the competition (c) To respond to a customer need created by a change in the environment.
Requirements: (a) Relatively low price elasticity but relatively high elasticity with respect to some other factor such as quality or distribution, (b) Reinforcement from other ingredients of the marketing mix
Charging different prices to different customers for the same product and quantity.
Objective: To maximize short-term profits and build traffic by allowing upward and downward adjustments in price depending on competitive conditions and how much the customer is willing to pay for the product.