Marketing Strategy Framework Primer

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Summarization of core marketing concepts and the marketing strategy framework. This includes elements that should be applied when devising and developing a marketing strategy for a company.

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Marketing Strategy Framework Primer

  1. 1. Marketing Strategy Framework What is Marketing? Create value for customers, company & competition The Loyalty Effect: Customer loyalty leads to employee &investor loyalty 1 Market Orientation B2B - 5 Goals & Objectives  Firms must define themselves  Buying Center – similar to decision making unit in B2C, Financial and non: perceptions, positioning, awareness from customers’ viewpoint identify who, their role, what they care about and define  Market orientation - Long  Understand the roles of the buying center/buying team. 6 Market Segmentation, Targeting and Positioning (STP) term profit and solution  Isolate individual customer benefits. 1. Identify groups who share same desired benefits, and focuses  Value Stack - match between benefits and buyer center descriptive characteristics & needs  Customer orientation:  Create market strategy (sales calls, macomm, incentives, (demographics, psychographics (VALs) & behavior) or quality, loyalty, & etc.) by applying customer benefits to specific “players”. behavioral considerations & characteristics but are satisfaction 3 Competitive Analysis: Demand & sufficiently different. Then rate on homogeneity of  Competitor orientation supply side competition, identify, needs/wants/desires, size, profitability, measurable, subs Competitors  Interfunctional understand (competitor profiles), and tantial, accessible, and differentiable. Indirect/ coordination predict. Direct Potential 2. Cluster groups & develop prototypical customer profiles Consumer (Demand) Side - What other brand 3. Analyze company and competitors Meta analysis shows MO focused firms are more will you buy if brand X was not in stock? 4. Select Targets: Customer, competitive & company successful; increase MO by one unit, increase innovation analyses. Supply Side - What product do, will or have by .46 used to satisfy need/want/desire X? 1.Collect data on each Customer Analysis – B2C & B2B 1. Market evolution is the function of: Firm-controlled events competitor in five areas: (own strategy);Firm-influenced events (competitors’ actions; ability to: conceive & economy); and Uncontrolled events (demographics; econ.). design, produce, market, 2. Integration of strategies: coordinating and leveraging finance, and investment, production/manu. and marketing strategies manage/execute 2 Costumer Market Analysis • Experience Curve + High Capital Intensity=> Low 2.Place in competitor Size, potential, growth, shares, macro part of ‘external’ cost, making low price feasible capability matrices: one analysis, PEST : Political, Economic, Social, and • R&D (Mfg. Qlty.) + Advtg. (Perceived Qlty./Image) + Wide per segment Technological aspects Dist. => High Unit sales 3.Need to consider B2C - Framework to Understanding Customers (3 3. Globalization of markets: Extension of manu cost advantage competitive reactions Dimensions) across markets, experience curve &cross-subsidization  Involvement – Involvement in the purchasing process and 5. Develop Positioning for the brand/product. 4. Role of experimental and adaptability in strategy extent to which the customer feel product is important. If • Positioning Criteria: formulation. “Top-down” versus “learning by doing.” spend a lot of time searching for alternatives, then high • Product/Market Fit: Revenue/Profit/Market Share • Competitive frame of reference likelihood of involvement. considerations 4 Company Analysis – Can we do it? • Product/Company Fit: Fit with company’s resources  Can be influenced, depends on situation, consumer, &  Resources & Capabilities, Integrative SWOT product/service and skills  Internal: Strengths & Weaknesses (SW)  Benefits: functional (utilitarian) or ego-expression – mix of • Mental /perceptual map: associations consumer has with  External: Opportunities & Threats (OT) both usually brand. Strategic Marketing Framework  3 stages of consumer behavior lead to marketing • Perceptions formed by: the market, consumers’ own Situation Analysis mindsets and stage in life, competition, and the implications: Internal Analysis External Analysis  Choice (decision making process) Nature of Search/Info Goals, Resources Consumers, Customers, company’s actions. Gathering, Decision Sequence, Evaluation of & Capabilities Competitors: look at 4 P’s, PEST • Requires three things: Alternatives, Decision Rules, Role of Price, and the 1.Competitive Frame of Reference – brands competing Decision Model in situations Segmentation/Targeting/Positioning Implement with(actual and potential/aspirational)  Usage/consumption experience: basis of sat. and Analyze Identify Select Develop Monitor, 2.Identifying optimal Points-of-Difference(POD) & Buyer Market Target Positioning & Adapt, loyalty, nature of relationships, and consequence of Behavior Segments Segments VP Strategy & Renew Points-of-Parity relationship – consumer missionaries • PODs – attributes/benefits consumers associate with  Post-purchase/consumption: satisfaction with the • 3 Criteria: Desirable to consumer, Deliverable by the Marketing Program(s) company, and Differentiation from competitors product and issues relating to how the product is Product Place Price Promotion disposed off/reused, extent of service required to New Products Channel Choice Pricing Strategy Promotion 3.Creating a brand mantra that summarizes the enhance consumer satisfaction and loyalty. Product Policy & Management & Tactics Communication positioning
  2. 2. 7 Marketing Research Place/Distribution 9 Brand 1. Define the ‘Problem’. 1.Who has power in the channel? Why? 1. Brand affects customer perception of objective attributes 2. Generate Hypotheses. • Brand vs. Store 2. Strong brands can command premium prices 3. Identify information gaps and information availability. • Pull (customer demand) vs. Push 3. Strong brands facilitate entry into new markets – 4. Determine research need, design research program, & 2. How can we increase our power in the channel? extensions, co-branding and licensing/merchandising decide research sequence/data collection methods. • Coercion 4. Strong brands reduce cost of launching new products 5. Plan Sampling and collect data. • Reward 5. Brand simplify decision making 6. Analyze and Interpret. • Partnership 6. Command higher loyalty 7. Report. 3. Long term strategy vs. Short term tactics 7. Attract better employees 8. Recommend Marketing Actions. • Hardest marketing mix element to change. 8. Provide leverage with distribution channels Can be a source of competitive advantage, particular in Customer based brand equity tool8 4 P’s - Product Strategy: Product, Promotion, Place & Price  Brand Familiarity maturity and decline phase of the PLC. Product Channels must mesh with:  Recall Product Life Cycle • Market conditions  Recognition • Introduction: one pioneer, high resource costs, few • Consumer/segment buying preferences  Brand Associations designs • Competitive issues  Perceived Quality • Growth: differentiation, access, selective demand • Company’s resources/skills/capabilities,  Other Associations Product Design Issues • The other 3 Ps, and  Brand Loyalty • Multi-attribute model • Economic considerations.  Purchase loyalty • Product vs. services Promotion – 7 M’s  Emotional/Attitudinal Loyalty • Brand and line extensions 1. Markets: Market, competition To build strong band, consider all of the touch points • Image 2. Motives: Consumers, segments, needs Pre- purchase, purchase and post-purchase ex • Associations – attributes or benefits (ego, utilitarian) 3. Mission: What is the goal of advertising? • Positive or neg? 4. Message: What to say? And how to say it? Customer Service 5. Money: How much? Web Site 6. Media: Through what media? And when? Billing 7. Measures: To what effect? Pre- Post-purchase purchase Advertising Pricing – Three keys: Loyalty Programs Experience • Internal company costs Experien ce • Competition Product Quality Collateral • Customer Value Purchase Economic Based Approach Experience • Cost-based – average of 35% add – focus is on costs Product/Service Sales Force • Positioning based – what will strengthen the price – too low Assortment shifts position Point-of-Purchase • Demand based - Price sensitivity Displays Product Positioning • Elasticity = % change in quantity demanded/ 10 Implementation • Good positioning statements include who the customer % change in price • Need positive senior mgmt leadership behaviors is, the needs fulfilled by the products, and why the • Low when high demand or want specific • Requires some common membership across planning & product is the best option to satisfy those needs • High when switching costs implementation teams • Helps define the marketing mix • Value-based – based on what customers are willing to pay • Cross-functional supportiveness within the strategic Product differentiation vs. what it costs to make business units (SBU) • Horizontal – different tastes – identify needs to served Psychological Based Approach • Formalization and sophistication of marketing planning by a competitor • Perception of price difference: Weber-Fechner Law: Buyers process • Vertical – different willingness to pay for quality perceive price differences in percentage terms not in • Avoidance of behavioral planning problems • Tools of differentiation – absolute terms ($400 savings - more if 25% vs. 2.5% • Positive signals from the organizational environment product, price, packaging, service • Reference Price: std of comparison, becomes benchmark • Regular & thorough follow-up using mutually agreed upon • Brands – denote and connote • Skimming: high prices then lower to maximize profits measures - What gets measured gets done • Penetration: low initial price to win market share

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