Strategic Marketing

Strategic Marketing The big picture Driving forces Political Economic C S Firm F’ s Technical Society Simple marketing system Products BUYER SELLER Money 1

The mix – c’s & p’s Price Customer cost Place Convenience Promotion Communication Product Customer solution Company market focus Production focus Cheap, easily purchased and available everywhere Product focus The key features are quality, performance, or innovation Selling focus Products will only be sold if the company aggressively promotes/sells Marketing focus The needs/ wants of target markets & delivering value better than competitors Pushing or pulling? Making existing products Selling & promoting Building profit through volume SELLING The Market Customer Needs Marketing Customers Satisfied –building your profits MARKETING 2

Market research Where are the wallets? Where do we start? EXPLORE Something new? A solution? DESCRIBE How big? CAUSE & EFFECT Experiment and test the market place Questions, questions first hand information Observe Focus group Survey Behavioural Experimental 3

Second hand Internal Sources Government Publications Periodicals and Books Commercial Data On-Line Associations – Business Information – Market research Should be: Scientific Creative Uses multiple methods Planned Ethical Estimating today’s demand Total Market Potential Area Market Potential Industry Sales Market Share 4

Tomorrow’s demand Ask the customers what they might do What do the experts think? Look at the past – are there any trends? Zoom in Zoom out! Segmenting the market Segment the market What are the important variables? Expand upon each variable to create a profile Minimum effort for maximum result! 5

Target the market Evaluate attractiveness of each segment Select the target segment(s) Position in the market Identify possible positioning concepts for each target segment Select, develop, and communicate the chosen positioning concept Market-Segmentation Procedure Survey - motivations, attitudes, behavior Analysis – factors, clusters Profiling – “assembling” the variables 6

Segmenting consumer markets •Demographics Age, gender, race, occupation, finances •Psychographics Personality and lifestyle •Geographic Location, size, country, city, weather •Behavioural Attitudes, beliefs, benefits Segmenting business markets Demographic Operating Variables Purchasing Approaches Situational Factors Personal Characteristics Effective segmentation •The size of the segment, the number of segments. •Is the segment big enough to make it worthwhile? •Can you access the segment? •Have you got the mix “right” for each segment? 7

Effective segmentation How will you communicate with the segment? Will the segments be interested in you? Ethical issues? Any connections between segments? Marketing channels Distribution channel functions Information Transfer Communication Negotiation Risk Payments Distribution Financing Ordering Complexity – what could go wrong? 8

Consumer marketing channels Customer Manufacturer No channel Manufacturer Customer Retail 1 channel Manufacturer Wholesale Retail Customer 2 channel Industrial marketing channels Manufacturing Representatives Manufacturers Sales Branch Customers Manufacturing Distributors Retailers Value chain Where do we start? Where are we? Economy - Industry - Firm? Raw Manuf Distrib Whsale Retail $ $ $ $ Relationships between supplier, firm, channel and buyer chains 9

Channel conflict Incompatibility Difference in Perception Dependence Trust Do what you say!! Channel rules Exclusive Dealing Exclusive Territories Tying Agreements Dealers’ Rights Buyer behaviour 10

Ring those bells! Response Stimulus You Cultural Culture Subculture Social Class Buyer Influences on our behaviour Age, lifestyle, personality, Finances, job, career, Roles, status and family 11

Consumer psychology Motivation Perception Learning Beliefs Attitudes The way we buy Involved Not involved Major differences Complex Variety Seeking between brands Minor differences Remove the choice Habitual between brands How consumers buy We recognise that there is a problem We search for information We evaluate alternatives We decide to buy We do something with “it” Are YOU missing anything? 12

Business to business Business markets Fewer larger purchasers Closer relationships Geographically concentrated Professional purchasing Several buying influences Multiple sales calls Direct purchasing Leasing Business purchasing A cast of thousands! Approvers Deciders Influencers Buyers Users Initiators Gatekeepers 13

The competition There is nothing more exhilarating than to be shot at without result. Winston Churchill Barriers & profitability Exit barriers Low High Entry Barriers Low, stable Low, risky Low returns returns High, stable High, risky High returns returns Competitors What will they do? What are their strategies? Objectives? Strengths? Weaknesses? Don’t know? – Don’t play! 14

What they might do Price-discount Cheaper goods Prestige goods Product proliferation Watch out! What they might do Product innovation Improved services Distribution innovation Manufacturing cost reduction Intensive advertising promotion Watch out! Creating barriers End-user specialist Vertical-level specialist Customer-size specialist Specific-customer specialist Geographic specialist Product or product-line specialist Will you survive? 15

Creating barriers Product-feature specialist Job-shop specialist Quality-price specialist Service specialist Channel specialist Will you survive? So what have you got? What is “it”? People, price, difference, location, features, service, technology, contracts, intellectual property? Do the wallets know about “it”? Do you know where the wallets live? 16

Strategic Marketing

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