2. What Is A Marketing Strategy?
1. a firm's target
market
2. a related marketing
mix (its four P's)
3. the bases on which
the firm plans to build
a sustainable
competitive advantage.
3. Customer Value
Customer excellence:
Focuses on retaining loyal
customers and excellent customer
service
Operational excellence:
Achieved through efficient
operations and excellent supply
chain and human resource
management
Product excellence:
Having products with high
perceived value and effective
branding and positioning
Locational excellence:
Having a good physical location
and Internet presence
4. The Marketing
Plan
◦ A written document composed of an analysis of the
current marketing situation, opportunities and threats for
the firm, marketing objectives and strategy specified in
terms of the four Ps, action programs and projected or
proforma income (and other financial) statements
◦ Three major phases
◦ Planning
◦ Implementation
◦ Control
5. Planning Phase:
Step 1 & 2
Conduct
Conduct a situation analysis
• SWOT
• Strengths, Weaknesses, Opportunities, Threats
• CDSTEP
• Cultural, Demographic, Social, Technological,
Economic, Political forces
Define
define business mission & objectives
• Mission statement: a broad description of a firms,
objectives and the scope of activities it plans to
undertake, attempts to answer two main questions:
• What type of business are we?
• What do we need to do to accomplish our goals and
objectives?
6. Implementation Phase: Step 3 & 4
Implement
marketing mix
Product
• Creation of value
Price
• Should be based on the value that the customer perceives
Place
• Accessible when and where the customer wants it
Promotion
• Advertising, personal selling, sales promotion, public relations, direct marketing and online marketing
Identify and
evaluate
opportunities
Segmentation
• The process of dividing the market into groups of customers with different needs, wants, or characteristics
Targeting
• Evaluates each segments attractiveness and decides which to pursue
Positioning
• Process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents
in comparison with competing products
7. Control Phase:
Step 5
◦ Evaluate performance using marketing metrics
◦ Metric: a measuring system that quantified a trend, dynamic, or
characteristic
◦ Who is accountable for performance?
◦ The business and its manager should be held accountable only for
the revenues, expenses, and profits that they can control
◦ Performance objectives, marketing analytics, metrics
◦ Compare a firm's performance over time or to competing firms,
using common financial metrics such as sales and profits
◦ To view the firm's products or services as a portfolio
◦ Financial performance metrics
◦ Metrics used to evaluate a firm vary depending on
◦ The level of the organization at which the decision is made
◦ The resources the manager controls
8. Step 5 cont.
Portfolio
analysis
Management evaluates
the firm's various
products and businesses
and allocates resources
according to which
products are expected to
be the most profitable
for the firm in the future
Strategic business unit (SBU) or
product line
Boston
Consulting
Group
Matrix
Relative market share Provides managers with a
product's relative strength
compared with that of the largest
firm in the industry
Market growth rate The annual rate of growth of the
specific market in which the
product competes
Stars, Cash
Cows, Question
Marks, Dogs
9. Growth Strategies
◦ Market penetration:
◦ Employs the existing marketing mix and
focuses the firm's efforts on existing
customers
◦ Market development:
◦ Employs the existing marketing offering to
reach new market segments, whether
domestic or international
◦ Product development:
◦ Offers a new product or service to a firm's
current target market
◦ Diversification:
◦ Introduces a new product or service to a
market segment that currently is not served
