Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”Jun.-Prof. Dr. Paul Marx | Universität Siegen
WIR...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 2
4.Strategic Marketing
contents
- Marketing as ...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 3
What is Strategy?
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
TIME HORIZON OF CORPORATE PLANNING
4
outlines ma...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
STRATEGY
5
A Latent Construct
!
!
!
“A marketing...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 6
time
performance
initial situation
aim
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
self-understanding 

of managers and
employees 
...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
THE PLANNING PROCESS
8
Analyse
Plan Implement Mo...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
COMPONENTS OF A STRATEGIC PLAN
9
!
mission state...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 10
Corporate Objectives
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
HIERARCHY OF CORPORATE OBJECTIVES
11
Mission
Sou...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
Requirements
realistic yet visionary
company-spe...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 13
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
MARKET-ORIENTED MISSION STATEMENTS
14
Company Pr...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
HIERARCHY OF CORPORATE OBJECTIVES
15
Unit Object...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
DEFINING STRATEGIC CORPORATE OBJECTIVES
16
!
tra...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
SPECULATIVE
CASE
17
Corporate Objectives:
build ...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
CORPORATE OBJECTIVES: BASIC CATEGORIES
18
Market...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
SUMMARY
19
A Latent Construct
!
!
An organizatio...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 20
Managerial Toolbox:
Situation Analysis
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
STRATEGIC SITUATION ANALYSIS
21
!
… is the start...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
GENERAL FRAMEWORK OF THE STRATEGIC SITUATION ANA...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
FIELDS OF THE SITUATION ANALYSIS
23
Source: base...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
SWOT
24
!
… is a structured planing method to ev...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 25
e.g.
economic environment
demographic changes...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
KEY FACTORS OF SWOT ANALYSIS
26
Source:Benkenste...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
RESOURCE PROFILING
A TECHNIQUE FOR ANALYSIS OF S...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 28
Managerial Toolbox:
Situation Analysis: SWOT
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
external
factors
internal
factors
29
!
Strengths...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
GENERATION OF STRATEGIES
30
Matching and
Convert...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 31
ST strategies
use strengths to avoid
threats
...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 32
!
follow-up projects
focus on core competenci...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
EXAMPLE: SWOT ANALYSIS FOR VOLKSWAGEN
33
Source:...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
WARNING
34
“[...] people who use SWOT might conc...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 35
Managerial Toolbox:
Product Life Cycle Analys...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 36
PRODUCT LIFE CYCLE
evolutionary model of grow...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 37
Zeit
Absatz
marginal
revenue
Gewinn
Kosten
Wa...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 38
Zeit
Absatz
Gewinn
Kosten
Reifenphase Rückgan...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 39
Zeit
Gewinn
Rückgangs-
phase
PRODUCT LIFE CYC...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 40
PRODUCT LIFE CYCLE
evolutionary model of grow...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
PRODUCT LIFE CYCLE : “TEMPORAL PITFALL”
41
1
2
3...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 42
20
40
60
80
100
0
Mio €
Jahr
95
Quelle: Simon...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 43
Managerial Toolbox:
Portfolio Analysis
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
PRODUKTPORTFOLIOANALYSE
(A.K.A. BOSTON CONSULTIN...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
MCKINSEY / GE MATRIX
(A.K.A. BUSINESS ASSESSMENT...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
VALUE OF PORTFOLIO ANALYSIS FOR STRATEGIC MARKET...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
SITUATION ANALYSIS: PROS-AND-CONS
47
Advantages ...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 48
Strategies of Market Development
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
STAIRWAY OF STRATEGIC DECISIONS ON MARKET DEVELO...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
STAIRWAY OF STRATEGIC DECISIONS ON MARKET DEVELO...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
STAIRWAY OF STRATEGIC DECISIONS ON MARKET DEVELO...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
product
Welche Art von Leistungen werden im Mark...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
GENERIC GROWTH STRATEGIES
(“ANSOFF’S PRODUCT-MAR...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
STAIRWAY OF STRATEGIC DECISIONS ON MARKET DEVELO...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
ALTERNATIVE MARKET SEGMENTATION STRATEGIES
55
ma...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
THE CONCEPT OF MARKET SEGMENTATION
56
is classif...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
MARKET SEGMENTATION VS. DEFINITION OF THE RELEVA...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
SEGMENTATION CRITERIA
58
“… segments need not to...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
Identifiability
It must be possible to measure
Su...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
General Product-specific
Observable
Cultural, geo...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
EVALUATION OF SEGMENTATION BASES
61
Identifi-
abi...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
BENEFIT SEGMENTATION
62
„…The Benefits people se...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”Jun.-Prof. Dr. Paul Marx | University of Siegen “...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
DILEMMA OF MARKET SEGMENTATION
64
a single segme...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
EXAMPLE: PURPOSE-OF-TRIP / BENEFIT SEGMENTATION ...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
EXAMPLE: SEGMENTATION OF A HOTEL CHAIN
66
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
EXAMPLE: SINUS-MILIEUS
67
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
STAIRWAY OF STRATEGIC DECISIONS ON MARKET DEVELO...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
TARGETING
69
clearly defined

segments
vaguely d...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 70
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
STAIRWAY OF STRATEGIC DECISIONS ON MARKET DEVELO...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
ALTERNATIVE MARKET DEVELOPMENT STRATEGIES
72
Que...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
ALTERNATIVE MARKET DEVELOPMENT STRATEGIES
73
Que...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 74
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 75
Quelle : www.aldi-nord.de
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
ALTERNATIVE MARKET DEVELOPMENT STRATEGIES
76
Que...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 77
Quelle : www.modshair.de
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 78
Quelle : www.rewe-feine-welt.de
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
POSITIONING
79
… refers to the problem of differ...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
CASE: DIET PEPSI VS. DIET COKE
80
blind test
“op...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
ELEMENTS OF POSITIONING MODEL
81
shows the locat...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
EXAMPLE: PERCEPTUAL POSITIONING MAP FOR DIFFEREN...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
POSITIONING: USP (UNIQUE SELLING PROPOSITION)
83...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
USP EXAMPLES
84
Company USP
Domino's Pizza
You g...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
IDEAL POINT MODEL OF POSITIONING
85
“The company...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
PERCEPTUAL POSITIONING MAPS
86
Intensity of Comp...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
PERCEPTUAL POSITIONING MAPS
87
Perception of bra...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
PERCEPTUAL POSITIONING MAPS
88
Relationship betw...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
PERCEPTUAL POSITIONING MAPS
89
Length of an attr...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
PERCEPTUAL POSITIONING MAPS
90
Axes differentiat...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
PERCEPTUAL POSITIONING MAPS
91
Curious but typic...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
PERCEPTUAL POSITIONING MAP AND SEGMENTATION
92
S...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
POSITIONING: EFFECTIVENESS AND DANGERS
93
under ...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
under positioning
consumers have only vague idea...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
POSITIONIERUNG: EFFEKTIVITÄT UND GEFAHREN
95
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
over positioning
consumers have too narrow conce...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
POSITIONIERUNG: EFFEKTIVITÄT UND GEFAHREN
97
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
POSITIONIERUNG: EFFEKTIVITÄT UND GEFAHREN
98
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 99
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 100
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
confused positioning
!
frequently changing and c...
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
EXAMPLE: CAMEL
102
Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”
doubtful positioning
consumer view the statement...
Upcoming SlideShare
Loading in …5
×

2. Principles of Marketing - SS2014 - University of Siegen - Paul Marx: Chapter 2. Strategic Marketing

5,522 views

Published on

Principles of Marketing - Course Slides - University of Siegen - summer term 2014

Topic: Strategic marketing

Contents:
strategy
strategy audit
SWOT analysis
portfolio analysis
defining the relevant market
market segmentation
market targeting
market positioning
perceptual positioning maps
USP = unique selling proposition

2 Comments
36 Likes
Statistics
Notes
No Downloads
Views
Total views
5,522
On SlideShare
0
From Embeds
0
Number of Embeds
99
Actions
Shares
0
Downloads
0
Comments
2
Likes
36
Embeds 0
No embeds

No notes for slide

2. Principles of Marketing - SS2014 - University of Siegen - Paul Marx: Chapter 2. Strategic Marketing

  1. 1. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”Jun.-Prof. Dr. Paul Marx | Universität Siegen WIRTSCHAFTSWISSENSCHAFTEN WIRTSCHAFTSINFORMATIK | WIRTSCHAFTSRECHT Juniorprofessur für Betriebswirtschaftslehre, insb. Marketing Jun.-Prof. Dr. Paul Marx | Universität Siegen MARKETING PRINCIPLES OF 1 LECTURE. THEME 2: STRATEGIC MARKETING SUMMER SEMESTER 2014 JUN.-PROF. DR. PAUL MARX
  2. 2. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 2 4.Strategic Marketing contents - Marketing as a strategic concept - Interrelation of a firm’s goals, strategies and marketing instruments - Methods of situation analysis as a basis for strategic planning - Important strategic areas and strategic alternatives
  3. 3. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 3 What is Strategy?
  4. 4. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” TIME HORIZON OF CORPORATE PLANNING 4 outlines major factors and forces that will affect the organization in the coming years; includes long-term goals, essential marketing strategies, and resources needed long-term planning defines a plan for the company’s sustainable development in 
 a constantly changing environment by capturing opportunities; states the company's overall purpose and mission strategic planning short-term planning; describes the current situation; formulates corporate objectives, strategy for the current year, planned actions, budgets, and control instruments annual planning company’scurrentbusiness
  5. 5. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” STRATEGY 5 A Latent Construct ! ! ! “A marketing strategy can be characterized as a conditional, long-term, global plan of action to achieve the business and marketing goals.” Heribert Meffert, 1986 ! ! ! ! ! Marketing Strategy
  6. 6. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 6 time performance initial situation aim
  7. 7. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” self-understanding 
 of managers and employees 
 vs. 
 meaning and orientation crises NEED FOR STRATEGIC PLANNING 7 Strategic Planning promotes systematic thinking forces the management 
 to clarify and specify their objectives and strategies improves internal coordination, i.e., setting, communicating, and monitoring performance targets helps to predict changes 
 and quickly react to them complexity of the business environment 
 vs. 
 controllability issues environmental 
 dynamics 
 vs. flexibility issues
  8. 8. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” THE PLANNING PROCESS 8 Analyse Plan Implement Monitor develop 
 a strategic plan ! ! develop 
 a marketing plan execute the plan measure outcomes ! compare 
 results with plan ! make corrections feedback 3 42 1
  9. 9. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” COMPONENTS OF A STRATEGIC PLAN 9 ! mission statement strategic goals strategic situation analysis (strategy audit) SWOT-analysis 
 (Strengths, Weaknesses, Opportunities, Threats ) product life cycle analysis portfolio analysis goals and strategies strategies of market development segmentation and targeting positioning Strategic Plan
  10. 10. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 10 Corporate Objectives
  11. 11. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” HIERARCHY OF CORPORATE OBJECTIVES 11 Mission Source: based on Becker, J.: Marketing-Konzeption, 6. Aufl., München 1998, S. 28
  12. 12. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” Requirements realistic yet visionary company-specific based on the company’s unique capabilities and/or field of expertise motivating and inspiring MISSION = A COMPANY’S PURPOSE 12 ! … is a statement of the organization’s purpose What is our business? Who is the customer? What do consumers value? What should our business be? ! ! ! ! ! Mission Statement Source: Kotler, P., G. Armstrong, (2014),p. 63
  13. 13. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 13
  14. 14. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” MARKET-ORIENTED MISSION STATEMENTS 14 Company Product-Oriented Definition Market-Oriented Definition Facebook We are an online social network We connect people around the world and help them share important moments Google We are the world’s best search engine Google’s mission is to organize the world’s information 
 and make it universally accessible and useful NASA We explore outer space We reach for new heights and reveal the unknown so that what we do and learn will benefit all humankind Revlon We make cosmetics We sell lifestyle and self-expression; success and status; memories, hopes, and dreams Ritz-Carlton
 Hotels & Resorts We rent rooms We create the Ritz-Carlton experience - a memorable stay that far exceeds guest’s already high expectations Walmart We run discount stores We deliver low price every day and give ordinary folks 
 the chance to buy the same things as rich people. “Save Money. Live better.” more sound examples at: www.missionstatements.com/fortune_500_mission_statements.html Source: Kotler, P., G. Armstrong, (2014),p.64
  15. 15. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” HIERARCHY OF CORPORATE OBJECTIVES 15 Unit Objectives (e.g. Advertising, a Store) Functional Objectives (e.g. Marketing, Sales) Corporate Objectives Mission means-endrelationship morespecificobjectives Source: based on Becker, J.: Marketing-Konzeption, 6. Aufl., München 1998, S. 28
  16. 16. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” DEFINING STRATEGIC CORPORATE OBJECTIVES 16 ! translation of the mission statement into measurable strategic objectives, e.g. monetary desired sales or profit level rates of growth value of the business or dividends paid … non-monetary leading the industry (e.g., w.r.t. innovation) quality of customer service diversity of products or services offered … provide the focus for setting more detailed objectives for the main functional activities of the business. ! ! creating a hierarchy of objectives based on the mission statement subsequently narrowing the level of detail (from broadly defined corporate objectives to more definite functional goals to very specific unit targets) Corporate Objectives Source: Kotler, P., G. Armstrong, V. Wong und J. Saunders (2011), p. 160 Example:
 producer of fertilizers Mission: 
 increase productivity in agriculture Corporate Objectives: 
 development of fertilizers that enable higher yields;
 increase profits Marketing Objectives: 
 increase market share to 15% during the next 2 years
  17. 17. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” SPECULATIVE CASE 17 Corporate Objectives: build profitable customer relationships by developing foods “superior in quality, taste, nutrition, 
 and convenience” more investments in research improve profits Marketing Objectives: increase sales improve the company’s share of domestic and international markets by XX% broaden product lines increase product availability and promotion 
 in the existing markets ! Functional Objectives: increase advertising reach by YY% increase PR activity ! Unit Objectives: organize XX public events produce YY publications Source: Kotler, P., G. Armstrong, (2014),p.65
  18. 18. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” CORPORATE OBJECTIVES: BASIC CATEGORIES 18 Market Position e.g. turnover market share market leadership development of new markets … Finances e.g. credit rating & reliability liquidity level of self-financing structure of capital … Profitability e.g. profit return on sales (ROS) return on equity (ROE) return on investments (ROI) return on assets (ROA) … Non-economic and Goodwill-related Goals e.g. independence customer loyalty image political and social influence … Environmental Protection e.g. reduction of environmental impact reduction of resource use creation of conditions for environmental restoration … Social and 
 Employee-related Goals e.g. job satisfaction income and social security social integration personal development … Source: based on Becker (2001): „Marketing Konzeption“, S. 16f. economic goals psychologic goals
  19. 19. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” SUMMARY 19 A Latent Construct ! ! An organization’s strategy that combines all of its marketing goals into one comprehensive plan. ! A good strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business. ! The marketing strategy is the foundation for a marketing plan. ! ! ! ! Marketing Strategy
  20. 20. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 20 Managerial Toolbox: Situation Analysis
  21. 21. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” STRATEGIC SITUATION ANALYSIS 21 ! … is the starting point of strategy development … is the survey of the current business environment (“inventory-taking”) the more accurate the “inventory-taking” the, the more specific and precise strategic objectives can be developed and formulated ! consists of: External Analysis: survey of the company’s macro-economic environment Internal Analysis: examination of the company itself; refers to the entire value chain Strategy Audit
  22. 22. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” GENERAL FRAMEWORK OF THE STRATEGIC SITUATION ANALYSIS 22 1. potential analysis 2. competitive analysis 4. market and customer analysis 5. environmental analysis 6. Opportunities and Threats analysis 3. Strengths and Weaknesses analysis 7. feedback SWOT internalanalysisexternalanalysis
  23. 23. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” FIELDS OF THE SITUATION ANALYSIS 23 Source: based on Hansen/Hennig-Thurau/Schrader (2001): Produktpolitik, 3. ed., Stuttgart. macro-environment micro-environment political and legal factors Situation in the Company i.a. history and culture competencies resources service structure market relation economic factors ecological factors socio-cultural factors technological factors consumers employee retail
  24. 24. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” SWOT 24 ! … is a structured planing method to evaluate the Strengths, Weaknesses, Opportunities, and Threats of an enterprise ! derives the key strengths and weaknesses of a company from the information generated within the strategy audit reduces the vast amounts of information to 
 a few critical success factors ! ! ! ! SWOT analysis
  25. 25. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 25 e.g. economic environment demographic changes market trends new technologies Opportunities e.g. competitor activities power of retail demographic changes political and legal issues Threats ExternalKeyFactors macroenvironment Strengths and Weaknesses Internal Key Factors resources and capabilities refer to the company’s entire value chain always in relation to to the competition, and to the opportunities and threats
  26. 26. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” KEY FACTORS OF SWOT ANALYSIS 26 Source:Benkenstein(2002):„StrategischesMarketing,S.36,(supplemented) Factor Points of Reference Important Objects of Measurement Market money market (product class) development, growth, elasticity industry (product group) state of development, saturation, allocation of market shares, complementary products submarket (product) structure of needs and preferences, degree of substitution, easiness to copy/ counterfeit, product strength Market Participants producers market position, product and program orientation, product spectrum competitors competitive strength, degree of differentiation, program strength middlemen performance, assortment structure, market coverage sales assistants performance consumer needs (utilitarian), purchasing power, attitudes Instruments product mix product and program strength, supply-side/product flexibility communication mix brand recognition, media fit, advertising strategy pricing policy price level, price control instruments, discount structure distribution market coverage, distribution density, stock availability, benefits Environment nature climate, infrastructure economy economic variables, market conditions (crises vs. boom), growth society social norms, lifestyles technology science, technical progress politics and law legal norms, political institutions
  27. 27. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” RESOURCE PROFILING A TECHNIQUE FOR ANALYSIS OF STRENGTHS AND WEAKNESSES 27 Quelle:Benkenstein(2002):„StrategischesMarketing,S.40, Untersuchte strategische Geschäftseinheit Stärkste Konkurrenzunternehmung Critical Resources (performance potentials) Evaluation Comments poor average good product line X marketing concept financial situation R&D state production resources and energy supply location cost situation quality of management management system productivity potentials market share SBU in question strongest competitor
  28. 28. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 28 Managerial Toolbox: Situation Analysis: SWOT
  29. 29. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” external factors internal factors 29 ! Strengths customer orientation in project work attractive price-performance ratio internal structures internal trainings for professional development use of the rationalization potential ! Weaknesses # of projects is too low customer contact management marketing & communication policy too narrow internal focus weak knowledge base system lack of transparency in knowledge management ! Opportunities follow-up projects focus on core competencies presence in professional networks connection to institutions former employees = potential customers financial incentives for project acquisition ! Threats lack of market proximity lack of senior layer lack of knowledge extraction from completed projects internal over-regulation current economic situation EXAMPLE: SWOT ANALYSIS FOR A CONSULTING FIRM positive negative T WS O example by Dr. Andreas Rusnjak
  30. 30. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” GENERATION OF STRATEGIES 30 Matching and Converting Matching:
 search for competitive advantages through “matching” strengths to opportunities Converting:
 search for strategies to “convert” weaknesses into strengths and threats into opportunities 
 (e.g. find new markets) Generation of Strategies How can we exploit and capitalize on our strengths? How can we overcome our weaknesses? How can we benefit from the opportunities? How can we mitigate the threats?
  31. 31. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 31 ST strategies use strengths to avoid threats O T S W WT strategies minimize weaknesses and avoid threats GENERATION OF STRATEGIES WO strategies overcome weaknesses by taking advantage of opportunities SO strategies use strengths to take advantage of opportunities
  32. 32. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 32 ! follow-up projects focus on core competencies presence in professional networks former employees = potential customers ! ! lack of market proximity internal over-regulation current economic situation ! customer orientation in project work attractive price-performance ratio internal trainings for professional development purposely sell the advantages of project work communicate our qualification in professional networks use price-performance ratio to sell projects to alumni more consultant activities at contractors’ sites targeted acquisition through communication of our high qualifications ! ! # of projects is too low customer contact management marketing & communication policy communicate the broadness of our competences and services foster relationships to alumni care of existing customers foster the knowledge transfer in professional networks deplete the internal bureaucracy empower employees to make decisions EXAMPLE: SWOT ANALYSIS FOR A CONSULTING FIRM T W S O S-0 W-0 S-T W-T example by Dr. Andreas Rusnjak
  33. 33. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” EXAMPLE: SWOT ANALYSIS FOR VOLKSWAGEN 33 Source: based on Widmann (2007) Opprotunities Threats superior perception of our brand provides an opportunity for expanding our product program (width and depth) and so to seize new segments high integration of dealer network offers potentials to further increase efficiency good market position in Brasilia, Argentina, China, und South Afrika facilitates the development of neighbor markets (esp. Asia) superior brand image of VW threatened by other bands of the corporation (e.g. Skoda) competitors catch up on safety and technical expertise the strong mass brand positioning threatens to evolve into the “stuck in the middle“ position currently mediocre consumer loyalty can be improved by increasing customer satisfaction improvement of price-performance ratio and revenue can be achieved esp. through using corporate scale effects strengthening the currently unsatisfactory market position in North America increase market shares in major markets and improve the world market coverage possibility to improve the currently underdeveloped niche markets though new products (e.g. New Beetle) too strong focus on Germany and Europe under the conditions of growing competitive pressure and falling prices in these markets too high dependence on A segment (Golf) while facing intensified attacks from european competition WeaknessesStrengths
  34. 34. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” WARNING 34 “[...] people who use SWOT might conclude that they have done an adequate job of planning and ignore such sensible things as defining the firm’s objectives or calculating ROI for alternate strategies” J.S. Armstrong (2004)
  35. 35. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 35 Managerial Toolbox: Product Life Cycle Analysis
  36. 36. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 36 PRODUCT LIFE CYCLE evolutionary model of growth and decay of products time revenue marginal revenue profit costs introduction growth maturity / saturation decline
  37. 37. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 37 Zeit Absatz marginal revenue Gewinn Kosten Wachs- tums- phase Reifenphase Rückgangs- phase costs revenue loss PRODUCT LIFE CYCLE evolutionary model of growth and decay of products introduction
  38. 38. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 38 Zeit Absatz Gewinn Kosten Reifenphase Rückgangs- phase costs revenue profit PRODUCT LIFE CYCLE evolutionary model of growth and decay of products introduction growth marginal revenue
  39. 39. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 39 Zeit Gewinn Rückgangs- phase PRODUCT LIFE CYCLE evolutionary model of growth and decay of products introduction growth maturity / saturation revenue marginal revenue profit costs
  40. 40. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 40 PRODUCT LIFE CYCLE evolutionary model of growth and decay of products time revenue marginal revenue profit costs introduction growth maturity / saturation decline
  41. 41. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” PRODUCT LIFE CYCLE : “TEMPORAL PITFALL” 41 1 2 3 4 5 6 7 1978 0 1980 1982 1984 1986 1988 1990 1992 1994 #ofyears average life time 
 of products (PL) average time of product development (PD) PD> PL success factor “TIME” “Temporal pitfall” = shorter product life cycles and longer development times products often become obsolete before they can amortize the investments into their development Build up market entry barriers! = increase market entry costs for competitors and/or decrease their sales potentials Quelle: Bullinger (1989), S. 16
  42. 42. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 42 20 40 60 80 100 0 Mio € Jahr 95 Quelle: Simon (1989), S. 78 opportunity costs of a market entry delay for a market with a sales potential of $ 60 million per year revenue loss 
 during 
 10 years Build up market entry barriers! increase market entry costs for competitors and/or decrease their sales potentials PRODUCT LIFE CYCLE : “TEMPORAL PITFALL”
  43. 43. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 43 Managerial Toolbox: Portfolio Analysis
  44. 44. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” PRODUKTPORTFOLIOANALYSE (A.K.A. BOSTON CONSULTING GROUP MATRIX, BCDG MATRIX, GROWTH-SHARE MATRIX; FOCUS: CASH-FLOW) 44 low high lowhigh relative market share marketgrowth,% 1 growth maturitysaturation introduction cash flow need cash flow release Criticism lack of consideration of product substitutes for new products, market growth and relative market share are difficult to predict usually there is only one supplier with a market share greater than 1 ->
 monopolization of markets if “poor dogs” are to be eliminated not suitable for niche products, since market growth = business unit growth only two factors are responsible for success of strategic business units (SBU): risk and can flow investordivest? hold/investhold/”milk” divest/eliminate Source: based on Homburg/Krohmer 2009; Zentes/Swoboda 2001; Kreikebaum 1997.
  45. 45. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” MCKINSEY / GE MATRIX (A.K.A. BUSINESS ASSESSMENT ARRAY, MULTI FACTORIAL ANALYSIS; FOCUS: RETURN ON INVESTMENT) 45 0 low medium high33 67 100 lowmediumhigh 33 67 100 relative competitive strengths marketattractiveness creation of value consumptionofresources Market Attractiveness 
 = external dimension, cannot be influenced market growth rate market size market quality/stability competitive intensity / rivalry supply with energy and raw materials environmental situation ! Relative Competitive Strengths
 = internal and external factors that can be influenced relative market share/position profitability risks image rel. production potentials rel. R&D potentials ! A B C D E F G Source: based on Hinterhuber (1996), p.149, p.172, Benkenstein (2002), pp. 78-84 invest & grow harvest / divest se le c tiv e stra te g ie s offensive strategy defensive strategy transitional strategy release of funds freezing of funds ! ! Advantages consideration of qualitative success factors Disadvantages non-transparency due to scoring 
 (aggregation of point values), hence tendency to the middle field
  46. 46. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” VALUE OF PORTFOLIO ANALYSIS FOR STRATEGIC MARKETING PLANING 46 provides no detailed instructions but rather recommendations in form of global strategic directions; focused on the use of the released funds and organization of the business unit structure high communication value, high clarity, manageability, → widespread adoption in the practice
  47. 47. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” SITUATION ANALYSIS: PROS-AND-CONS 47 Advantages Disadvantages uncovers key strategic directions ! structures strategically relevant market factors helps to identify „strategic windows“ key requirements of the market strategic discontinuity easy to comprehend and communicate subjective judgements lack of quantitative backup lack of comparability over time
  48. 48. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 48 Strategies of Market Development
  49. 49. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” STAIRWAY OF STRATEGIC DECISIONS ON MARKET DEVELOPMENT 49 market definition market segmentation market targeting market positioning 1. define 
 the relevant market 2. identify bases for 
 segmenting the market 3. develop profiles of
 resulting segments 4. develop criteria of
 segment attractiveness 5. select the target 
 segment(s) 6. develop positioning for
 each target segment 7. develop marketing mix
 for each target segment
  50. 50. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” STAIRWAY OF STRATEGIC DECISIONS ON MARKET DEVELOPMENT 50 market definition market segmentation market targeting market positioning 1. define 
 the relevant market 2. identify bases for 
 segmenting the market 3. develop profiles of
 resulting segments 4. develop criteria of
 segment attractiveness 5. select the target 
 segment(s) 6. develop positioning for
 each target segment 7. develop marketing mix
 for each target segment decide on methods of market development decide on 
 the degree of differentiation and market coverage decide on markets and products
  51. 51. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” STAIRWAY OF STRATEGIC DECISIONS ON MARKET DEVELOPMENT 51 market definition market segmentation market targeting market positioning 1. define 
 the relevant market 2. identify bases for 
 segmenting the market 3. develop profiles of
 resulting segments 4. develop criteria of
 segment attractiveness 5. select the target 
 segment(s) 6. develop positioning for
 each target segment 7. develop marketing mix
 for each target segment decide on methods of market development decide on 
 the degree of differentiation and market coverage decide on markets and products
  52. 52. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” product Welche Art von Leistungen werden im Markt angeboten? geography Ist der Markt lokal, regional, national oder international begrenzt? time Ist der Markt zeitlich begrenzt? RELEVANT MARKET 52 Market structuring Defining the relevant market from a provider’s perspective ! Defining the Relevant Market Defining groups of substitute product and/or potential competitors Reducing heterogeneity of possible relevant exchange processes between customers and providers The definition of the the relevant market should account for these dimensions:
  53. 53. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” GENERIC GROWTH STRATEGIES (“ANSOFF’S PRODUCT-MARKET GROWTH MATRIX”) 53 existing newexistingnew markets products market penetration product development market development diversification increasing risk increasingrisk
  54. 54. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” STAIRWAY OF STRATEGIC DECISIONS ON MARKET DEVELOPMENT 54 market definition market segmentation market targeting market positioning 1. define 
 the relevant market 2. identify bases for 
 segmenting the market 3. develop profiles of
 resulting segments 4. develop criteria of
 segment attractiveness 5. select the target 
 segment(s) 6. develop positioning for
 each target segment 7. develop marketing mix
 for each target segment decide on methods of market development decide on 
 the degree of differentiation and market coverage decide on markets and products
  55. 55. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” ALTERNATIVE MARKET SEGMENTATION STRATEGIES 55 market approach is... uniform segment-specific customized mass marketing market segmentation niche marketing
  56. 56. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” THE CONCEPT OF MARKET SEGMENTATION 56 is classification of customers into homogenous groups that allow development of efficient product differentiation strategies to exploit these segments ! Market segmentation is the basis of differentiated marketing market segmentation refers to splitting the relevant market into internally homogeneous and externally heterogeneous 
 groups of customers Market Segmentation externally heterogeneous internally homogeneous
  57. 57. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” MARKET SEGMENTATION VS. DEFINITION OF THE RELEVANT MARKET 57 Definition of the Relevant Market defines groups of substitute goods and (potential) competitors reduces the heterogeneity of possible exchange processes between the company and its customers ! Market Segmentation discovers groups of similar consumers to address them with segment-specific marketing mix reduces the remaining heterogeneity ! heterogeneous customer requirements different characteristics of products and/or services are important to different customers focusing on a specific segment facilitates development and exhausting of competitive advantages inter heterogeneity intra homogeneity
  58. 58. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” SEGMENTATION CRITERIA 58 “… segments need not to be physical entities that naturally occur in the marketplace, but are defined by researchers and managers to improve their ability to best serve their customers. ! […] Market segmentation is a theoretical marketing concept involving artificial groupings of consumers constructed to help managers design and target their strategies. ! Therefore, the identification of market segments and their elements is highly dependent on the bases (variables or criteria) and methods used to define them.“ ! Wedel & Kamakura (2000)
  59. 59. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” Identifiability It must be possible to measure Substantiality It must be large enough to earn profit SEGMENTATIONCRITERIA 59 Accessibility It is possible to reach potential customers 
 via the organization's promotion and distribution channel Stability It must be stable enough that it does not vanish after some time Responsiveness It responds consistently to a given market stimulus Actionability It is useful in deciding on the marketing mix sixsegmentationcriteriadeterminingtheeffectivenessandprofitabilityofmarketingstrategies
  60. 60. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” General Product-specific Observable Cultural, geographic, demographic, and socio- economic variables User status, usage, frequency, store loyalty and patronage, situations Unobservable Psychographic, values, personality and life-style Psychographics, benefits, perceptions, elasticities, attributes, preferences, intention CLASSIFICATION OF SEGMENTATION BASES 60 Source : Wedel/Kamakura 2000
  61. 61. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” EVALUATION OF SEGMENTATION BASES 61 Identifi- ability Substan- tiality Acces- sibility Stability Action- ability Respon- siveness 1. General, observable ++ ++ ++ ++ – – 2. Specific, observable Purchase + ++ – + – + Usage + ++ + + – + 3. General, unobservable Personality ± – ± ± – – Life style ± – ± ± – – Psychographics ± – ± ± – – 4. Specific, unobservable Psychographics ± + – – ++ ± Perceptions ± + – – + – Benefits + + – + ++ ++ Intentions + + – ± – ++ Source : Wedel/Kamakura 2000
  62. 62. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” BENEFIT SEGMENTATION 62 „…The Benefits people seek in products are the basic reasons for the heterogeneity in their choice behavior, and benefits are thus the most relevant basis for segmentation.” Haley 1968 ! ! „… Benefits are preferred segmentation basis for general understanding of a market and for making decisions about positioning, new product concepts, advertising, and distribution because of their actionability.“ Wind 1978
  63. 63. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing”Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” BENEFIT SEGMENTATION PARADOX 63 When segmenting on the basis of the benefits consumers want from a particular product/service category, an analyst should make a clear distinction between basis variables that are important in separating the total sample into homogenous segments and those that are important because they are the benefits or features that the respondents in each segment want most. It is too easy to assume that these are the same. Sometimes they are, but often they are not. The “drivers” may not vary among different segments, i.e., may have no discriminant power at all, e.g., price, quality, etc.
  64. 64. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” DILEMMA OF MARKET SEGMENTATION 64 a single segmentation base can never meet all the segmentation criteria! ! incremental segmentation required: start with actionable bases 
 (usually benefits and/or psychographics) proceed with identifiable (measurable) bases (usually demographics) ! ! The Segmentation Dilemma
  65. 65. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” EXAMPLE: PURPOSE-OF-TRIP / BENEFIT SEGMENTATION OF DEUTSCHE BAHN 65 1. homogeneity in terms of purchase-relevant attributes 
 (expected utility: What is the most important criterion for the selection of transport options?) 2. homogeneity in terms of socio-economic characteristics 
 (insights regarding accessibility of target groups for media and sales) private travelers business travelers price sensitive time savers comfort oriented
  66. 66. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” EXAMPLE: SEGMENTATION OF A HOTEL CHAIN 66
  67. 67. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” EXAMPLE: SINUS-MILIEUS 67
  68. 68. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” STAIRWAY OF STRATEGIC DECISIONS ON MARKET DEVELOPMENT 68 market definition market segmentation market targeting market positioning 1. define 
 the relevant market 2. identify bases for 
 segmenting the market 3. develop profiles of
 resulting segments 4. develop criteria of
 segment attractiveness 5. select the target 
 segment(s) 6. develop positioning for
 each target segment 7. develop marketing mix
 for each target segment decide on methods of market development decide on 
 the degree of differentiation and market coverage decide on markets and products
  69. 69. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” TARGETING 69 clearly defined
 segments vaguely defined
 segments selektive targeting extensive targeting target 
 niches target 
 multiple
 segments product specialization product differentiation
  70. 70. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 70
  71. 71. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” STAIRWAY OF STRATEGIC DECISIONS ON MARKET DEVELOPMENT 71 market definition market segmentation market targeting market positioning 1. define 
 the relevant market 2. identify bases for 
 segmenting the market 3. develop profiles of
 resulting segments 4. develop criteria of
 segment attractiveness 5. select the target 
 segment(s) 6. develop positioning for
 each target segment 7. develop marketing mix
 for each target segment decide on methods of market development decide on 
 the degree of differentiation and market coverage decide on markets and products
  72. 72. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” ALTERNATIVE MARKET DEVELOPMENT STRATEGIES 72 Quelle : Becker, J. : Marketing-Konzeption, 6.Aufl., München 1998, S. 179ff. Price-Volume
 Strategy Brand Preference Strategy refers to a clear positioning of the product in the market: 
 hight quality / high price strategic lever: consistent performance/benefit advantage through high-quality product/ service requires specific labeling of the product (branding) one-sided focus on (aggressive) price competition usually requires cost leadership in the market aims to one-dimensional customer preferences
  73. 73. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” ALTERNATIVE MARKET DEVELOPMENT STRATEGIES 73 Quelle : Becker, J. : Marketing-Konzeption, 6.Aufl., München 1998, S. 179ff. Price-Volume
 Strategy one-sided focus on (aggressive) price competition usually requires cost leadership in the market aims to one-dimensional customer preferences
  74. 74. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 74
  75. 75. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 75 Quelle : www.aldi-nord.de
  76. 76. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” ALTERNATIVE MARKET DEVELOPMENT STRATEGIES 76 Quelle : Becker, J. : Marketing-Konzeption, 6.Aufl., München 1998, S. 179ff. Price-Volume Strategy Brand Preference Strategy refers to a clear positioning of the product in the market: 
 hight quality / high price strategic lever: consistent performance/benefit advantage through high-quality product/ service requires specific labeling of the product (branding) one-sided focus on (aggressive) price competition usually requires cost leadership in the market aims to o customer preferences
  77. 77. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 77 Quelle : www.modshair.de
  78. 78. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 78 Quelle : www.rewe-feine-welt.de
  79. 79. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” POSITIONING 79 … refers to the problem of differentiating one’s own product/ service/brand from other competing entries in the marketplace … is the process by which a company tries to create a distinct image or identity in the minds of their prospective market for its product, service, brand, or organization. It does so by aligning all the company’s marketing efforts on the preference structures of potential customers (and under consideration of competition). ! ! ! The aim of positioning is to design the company’s offering so that the perceived product attributes correspond to the attributes wanted/expected by a customer Positioning
  80. 80. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” CASE: DIET PEPSI VS. DIET COKE 80 blind test “open” test vs
  81. 81. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” ELEMENTS OF POSITIONING MODEL 81 shows the location (position) of competing products/ brands/companies in some kind of “virtual space” that purports to represent the way consumers perceive or evaluate an entire product/service category. attribute space perceived by consumers 
 (= “relevant market“) ! the consumers’ perception of the company’s and competitors’ products ! ideal points (preferences) of consumers Perceptual Positioning Map ideal position
  82. 82. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” EXAMPLE: PERCEPTUAL POSITIONING MAP FOR DIFFERENT BEER BRANDS IN THE US MARKET 82
  83. 83. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” POSITIONING: USP (UNIQUE SELLING PROPOSITION) 83 ! USP refers to emphasizing a product’s benefit that differentiates the product from competing offerings ! in perceptual positioning maps products with USP stand out as isolated points Unique Selling Proposition
  84. 84. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” USP EXAMPLES 84 Company USP Domino's Pizza You get fresh, hot pizza delivered to your door in 30 minutes or less - or it's free FedEx When your package absolutely, positively has to get there overnight Head & Shoulders You get rid of dandruff M&M's Melts in your mouth, not in your hand Metropolitan Life Get Met. It Pays Southwest Airlines We are the low-fare airline
  85. 85. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” IDEAL POINT MODEL OF POSITIONING 85 “The company‘s marketing offer and image should be both distinct and valued in the minds of the customers in the target market.“ Kotler 1994 PS-Zahl Komfort A B I dAB dIA dIB near to the ideal point aloof from competition
  86. 86. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” PERCEPTUAL POSITIONING MAPS 86 Intensity of Competitive Rivalry The nearer the brands, the more similar are they in the perception of consumers, i.e., the more intense and more direct is the competition Relatively strong rivalry Equal distance => equal intensity of competitive rivalry Relatively weak rivalry
  87. 87. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” PERCEPTUAL POSITIONING MAPS 87 Perception of brands along different product attributes The further the brand from the origin and the nearer it is to a certain vector, the more pronounced is the corresponding attribute in this brand The most popular beer with men The least popular beer with men
  88. 88. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” PERCEPTUAL POSITIONING MAPS 88 Relationship between attributes The smaller the angle, the higher is the pairwise correlation Beers popular among men tend to be heavy Equal popularity among men; Strong difference among women Equal popularity among women; Strong difference among men Right angle => popularity among men says absolutely nothing about popularity among women
  89. 89. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” PERCEPTUAL POSITIONING MAPS 89 Length of an attribute vector depicts its differentiation degree The longer the vector, the stronger differentiates it between the beers Consumers can differentiate between the beers along the dimension “popular with men” better than along the dimension “good value” Popularwithmen Goodvalue
  90. 90. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” PERCEPTUAL POSITIONING MAPS 90 Axes differentiate the strongest Axes are virtual vectors that differentiate the strongest. Their labeling derives from the adjacent attribute vectors. Point in one direction; correlate both numeric and w.r.t. content }}
  91. 91. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” PERCEPTUAL POSITIONING MAPS 91 Curious but typical case 40 foodstuffs: subjectively perceived vs. objectively present qualities
  92. 92. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” PERCEPTUAL POSITIONING MAP AND SEGMENTATION 92 Segment B Segment A Segment C Segment C’s preferences are not satisfied -> open market opportunity Combination of Positioning with Segmentation
  93. 93. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” POSITIONING: EFFECTIVENESS AND DANGERS 93 under positioning consumers have only vague ideas about the company and/or its products;
 failure to present a strong central benefit or reason to buy the product confused positioning ! frequently changing and contradicting messages that confuse consumers doubtful positioning consumer view the statements regarding products/brand/company as not credible; claiming a benefit that customers doubt that the product can actually deliver over positioning consumers have too narrow conceptions of the company/product/brand; product concept is too special
  94. 94. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” under positioning consumers have only vague ideas about the company and/or its products;
 failure to present a strong central benefit or reason to buy the product POSITIONING: EFFECTIVENESS AND DANGERS 94
  95. 95. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” POSITIONIERUNG: EFFEKTIVITÄT UND GEFAHREN 95
  96. 96. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” over positioning consumers have too narrow conceptions of the company/product/brand; product concept is too special POSITIONING: EFFECTIVENESS AND DANGERS 96
  97. 97. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” POSITIONIERUNG: EFFEKTIVITÄT UND GEFAHREN 97
  98. 98. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” POSITIONIERUNG: EFFEKTIVITÄT UND GEFAHREN 98
  99. 99. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 99
  100. 100. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” 100
  101. 101. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” confused positioning ! frequently changing and contradicting messages that confuse consumers POSITIONING: EFFECTIVENESS AND DANGERS 101
  102. 102. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” EXAMPLE: CAMEL 102
  103. 103. Jun.-Prof. Dr. Paul Marx | University of Siegen “Principles of Marketing” doubtful positioning consumer view the statements regarding products/brand/company as not credible; claiming a benefit that customers doubt that the product can actually deliver POSITIONING: EFFECTIVENESS AND DANGERS 103

×