Marketing Strategy

Slide 1: Marketing Strategy 1 visit: www.studyMarketing.org

Slide 2: You can download this presentation at: www.studyMarketing.org Visit www.studyMarketing.org for more presentations on Marketing, Strategy, Innovation, and Branding 2 visit: www.studyMarketing.org

Slide 3: Contents: Section 1 : Market Scope Strategy Section 2 : Market Entry Strategy Section 3 : Product Strategy Section 4 : Promotion Strategy Section 5 : Distribution Strategy Section 6 : Pricing Strategy 3 visit: www.studyMarketing.org

Slide 4: Market Scope Strategy 1. Single Market Strategy 2. Multi Market Strategy 3. Total Market Strategy 4 visit: www.studyMarketing.org

Slide 5: 1. Single Market Strategy • Concentration of efforts in a single segment. • Requirements: (a) Serve the market wholeheartedly despite initial difficulties (b) Avoid competition with established firms. 5 visit: www.studyMarketing.org

Slide 6: 2. Multi Market Strategy • Serving several distinct markets. • Requirements: (a) Careful selection of segments to serve (b) Avoid confrontation with companies serving entire market. 6 visit: www.studyMarketing.org

Slide 7: 3. Total Market Strategy • 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. 7 visit: www.studyMarketing.org

Slide 8: Market Entry Strategy 1. First In Strategy 2. Early Entry Strategy 3. Laggard Entry Strategy 8 visit: www.studyMarketing.org

Slide 9: 1. First In Strategy • Entering the market before all others. • Requirements: (a) Willingness and ability to take risks (b) Technological competence (c) Strive to stay ahead (d) Heavy promotion (e) Create primary demand (f) Carefully evaluate strengths. 9 visit: www.studyMarketing.org

Slide 10: 2. Early Entry Strategy • Entering the market in quick succession after the leader. • Requirements: (a) Superior marketing strategy (b) Ample resources (c) Strong commitment to challenge market leader. 10 visit: www.studyMarketing.org

Slide 11: 3. Laggard Entry Strategy • 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. 11 visit: www.studyMarketing.org

Slide 12: Product Strategy 1. Product Positioning Strategy 2. Product Repositioning Strategy 3. Product Scope Strategy 4. Product Design Strategy 5. New Product Strategy 12 visit: www.studyMarketing.org

Slide 13: 1. Product Positioning Strategy • 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. 13 visit: www.studyMarketing.org

Slide 14: 1. Product Positioning Strategy • (b) Successful management of multiple brands requires careful positioning in the market so that multiple brands do not compete with nor cannibalize each other. 14 visit: www.studyMarketing.org

Slide 15: • Reviewing the current 2. Product positioning of the product and Repositioning its marketing mix and seeking Strategy a new position for it that seems more appropriate. 15 visit: www.studyMarketing.org

Slide 16: • Requirements: (a) If this strategy 2. Product is directed toward existing Repositioning customers, repositioning is customers Strategy sought through promotion of more varied uses of the product 16 visit: www.studyMarketing.org

Slide 17: • (b) If the business unit wants to 2. Product reach new users, this strategy users Repositioning requires that the product be Strategy presented with a different twist to the people who have not been favorably inclined toward it. • In doing so, care should be taken to see that, in the process of enticing new customers, current ones are not alienated 17 visit: www.studyMarketing.org

Slide 18: • (c) If this strategy aims at 2. Product presenting new uses of the Repositioning product, it requires searching for product Strategy latent uses of the product, if any. • Although all products may not have latent uses, there are products that may be used for purposes not originally intended. 18 visit: www.studyMarketing.org

Slide 19: 3. Product Scope Strategy • The product-scope strategy deals with the perspectives of the product mix of a company. • The company may adopt a single- product strategy, a multiple- product strategy, or a system-of- products strategy. 19 visit: www.studyMarketing.org

Slide 20: 3. Product Scope Strategy • Requirements: (a) Single product: product company must stay up-to-date on the product and even become the technology leader to avoid obsolescence (b) Multiple products: products products must complement one another in a portfolio of products 20 visit: www.studyMarketing.org

Slide 21: 3. Product Scope Strategy • (c) System of products: company products must have a close understanding of customer needs and uses of the products. 21 visit: www.studyMarketing.org

Slide 22: • The product-design strategy deals 4. Product with the degree of standardization Design of a product. Strategy • The company has a choice among the following strategic options: standard product, customized product, and standard product with modifications. 22 visit: www.studyMarketing.org

Slide 23: 4. Product • Objectives: (a) Standard product : to increase economies of scale of Design the company (b) Customized Strategy 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. 23 visit: www.studyMarketing.org

Slide 24: • A set of operations that 5. New introduces (a) within the Product business, a product new to its business Strategy previous line of products (b) on the market, a product that market provides a new type of satisfaction. • Three alternatives emerge from the above: product improvement/modification, improvement/modification product imitation, and product imitation innovation. 24 visit: www.studyMarketing.org

Slide 25: • Requirements: A new-product 5. New strategy is difficult to implement Product if a new product development Strategy system does not exist within a company. 25 visit: www.studyMarketing.org

Slide 26: • Five components of this system 5. New should be assessed: Product • corporate aspirations toward Strategy new products • organizational openness to creativity • environmental favor toward creativity • screening method for new ideas, and • evaluation process. 26 visit: www.studyMarketing.org

Slide 27: Promotion Strategy 1. Promotion Mix Strategy 2. Media Selection Strategy 3. Advertising Copy Strategy 27 visit: www.studyMarketing.org

Slide 28: 1. Promotion Mix Strategy • Determination of a judicious mix of different types of promotion. • Requirements : • (a) Product factors: (i) nature of factors product (ii) durable versus nondurable (iii) perceived risk (iv) typical purchase amount 28 visit: www.studyMarketing.org

Slide 29: 1. Promotion Mix Strategy • (b) Market factors: (i) position in the life cycle, (ii); market share, (iii) industry concentra-tion, (iv) intensity of competition, and (v) demand perspectives • (c) Customers factors: (i) household versus business customers, (ii) number of customers, and (iii) concentration of customers 29 visit: www.studyMarketing.org

Slide 30: 1. Promotion Mix Strategy • (d) Budget factors: (i) financial resources of the organization and (ii) traditional promotional perspectives • (e) Marketing mix factors: (i) relative price/relative quality, (ii) distribution strategy, (iii) brand life cycle, and (iv) geographic scope of the market 30 visit: www.studyMarketing.org

Slide 31: 2. Media Selection Strategy • 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. 31 visit: www.studyMarketing.org

Slide 32: 2. Media Selection Strategy • 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 32 visit: www.studyMarketing.org

Slide 33: 2. Media Selection Strategy • (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. 33 visit: www.studyMarketing.org

Slide 34: • Designing the content of an advertisement. • Objective: To transmit a particular product/service message to a particular target. 3. Advertising Copy Strategy 34 visit: www.studyMarketing.org

Slide 35: Requirements: (a) Eliminate \"noise\" for a clear transmission of message (b) Consider importance of : • source credibility • balance of argument • message repetition • rational versus emotional appeals • humor appeals 3. Advertising • presentation of model's eyes in pictorial ads Copy Strategy • comparison advertising. 35 visit: www.studyMarketing.org

Slide 36: Distribution Strategy 1. Distribution Scope Strategy 2. Multiple Channel Strategy 36 visit: www.studyMarketing.org

Slide 37: • Establishing the scope of 1. Distribution distribution, that is, the target Scope customers. Strategy • 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). 37 visit: www.studyMarketing.org

Slide 38: • Requirements: Assessment 1. Distribution of : Scope • customer buying habits • gross margin/ turnover Strategy rate • capability of dealer to provide service • capability of dealer to carry full product line • product styling 38 visit: www.studyMarketing.org

Slide 39: 2. Multiple Channel Strategy • 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). 39 visit: www.studyMarketing.org

Slide 40: 2. Multiple Channel Strategy • Requirements: (a) Market segmentation, (b) Cost/benefit analysis. • 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. 40 visit: www.studyMarketing.org

Slide 41: Pricing Strategy 1. Pricing Strategies for New Products 2. Pricing Strategies for Established Products 3. Price Flexibility Strategy 4. Price Leadership Strategy 41 visit: www.studyMarketing.org

Slide 42: 1. Pricing for New Products • Skimming Pricing Strategy • Penetration Pricing Strategy 42 visit: www.studyMarketing.org

Slide 43: Skimming Pricing Strategy • Setting a relatively high price during the initial stage of a product's life. • Objectives: (a) To serve customers who are not price conscious while the market is at the upper end of the demand curve and competition has not yet entered the market 43 visit: www.studyMarketing.org

Slide 44: Skimming Pricing Strategy • (b) To recover a significant portion of promotional and research and development costs through a high margin. 44 visit: www.studyMarketing.org

Slide 45: Skimming Pricing Strategy • 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. 45 visit: www.studyMarketing.org

Slide 46: Penetration Pricing Strategy • Setting a relatively low price during the initial stages of a product's life. • Objective: To discourage competition from entering the market by quickly taking a large market share and by gaining a cost advantage through realizing economies of scale. 46 visit: www.studyMarketing.org

Slide 47: Penetration Pricing Strategy • Requirements: (a) Product must appeal to a market large enough to support the cost advantage (b) Demand must be highly elastic in order for the firm to guard its cost advantage. 47 visit: www.studyMarketing.org

Slide 48: 2. Pricing for Established Products • Maintaining the Price • Reducing the Price • Increasing the Price 48 visit: www.studyMarketing.org

Slide 49: Maintaining the Price • Objectives: (a) To maintain position in the marketplace (i.e., market share, profitability, etc.) (b) To enhance public image. 49 visit: www.studyMarketing.org

Slide 50: Maintaining the Price • 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. 50 visit: www.studyMarketing.org

Slide 51: • 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. Reducing the Price 51 visit: www.studyMarketing.org

Slide 52: • Requirements: (a) Firm must be financially and competitively strong to fight in a price war if that becomes necessary (b) Must have a good understanding of the demand function of its product. Reducing the Price 52 visit: www.studyMarketing.org

Slide 53: Increasing the Price • Objectives: (a) To maintain profitability during an inflationary period (b) To take advantage of product differences, real or perceived (c) To segment the current served market. 53 visit: www.studyMarketing.org

Slide 54: Increasing the Price • 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 54 visit: www.studyMarketing.org

Slide 55: • One Price Strategy 3. Pricing • Flexible Pricing Strategy Flexibility Strategy 55 visit: www.studyMarketing.org

Slide 56: • Charging the same price to all customers under similar conditions and for the same quantities. • Objectives: (a) To simplify pricing One Price decisions (b) To maintain goodwill Strategy among customers. 56 visit: www.studyMarketing.org

Slide 57: • Requirements: • Detailed analysis of the firm's position and cost structure as compared with the rest of the industry • Information concerning the cost One Price variability of offering the same Strategy price to everyone 57 visit: www.studyMarketing.org

Slide 58: • Knowledge of the economies of scale available to the firm • Information on competitive One Price prices; information on the price that customers are ready to pay. Strategy 58 visit: www.studyMarketing.org

Slide 59: Flexible Pricing Strategy • 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. 59 visit: www.studyMarketing.org

Slide 60: Flexible Pricing Strategy • Requirements: Have the information needed to implement the strategy. • Usually this strategy is implemented in one of four ways: (a) by market (b) by product (c) by timing (d) by technology. 60 visit: www.studyMarketing.org

Slide 61: Flexible Pricing Strategy • Other requirements include : • a customer-value analysis of the product, • an emphasis on profit margin rather than just volume, and • a record of competitive reactions to price moves in the past. 61 visit: www.studyMarketing.org

Slide 62: 4. Price Leadership Strategy • This strategy is used by the leading firm in an industry in making major pricing moves, which are followed by other firms in the industry. 62 visit: www.studyMarketing.org

Slide 63: 4. Price Leadership Strategy • Objective: To gain control of pricing decisions within an industry in order to support the leading firm's own marketing strategy (i.e., create barriers to entry, increase profit margin, etc.). 63 visit: www.studyMarketing.org

Slide 64: 4. Price Leadership Strategy • Requirements: • An oligopolistic situation • An industry in which all firms are affected by the same price variables (i.e., cost, competition, demand), • An industry in which all firms have common pricing objectives 64 visit: www.studyMarketing.org

Slide 65: Source of Reference: Subhas Jain, Marketing Planning and Strategy, Prentice Strategy Hall International. 65 visit: www.studyMarketing.org