Please enable JavaScript.
Coggle requires JavaScript to display documents.
TOPIC 1: Marketing Strategy (Marketing is Exchange: Creating value for…
TOPIC 1: Marketing Strategy
Marketing managers make decisions about customers
Marketing is Exchange:
Creating value for the firm's chosen customers
Customers
Product
Price
Promotion
Ex: General Mills (Cheerios)
Place (Distribution)
Ex: Amazon Fresh
Strategic Triangle
Overall, it is better to focus on creating and delivering exceptional value to customers, rather than benchmarking and copying successful competitors
Customer
Company
Competition
What do we gain, and what to we give up?
Three Levels of Strategy
Corporate Strategy:
What business should we be in?
Ex: Pepsico (beverages, salty snacks, packaged foods, fast foods (spun off to YUM/ pizza hut, KFC, Taco Bell))
Specialists perform better than generalists
Strategic Business Unit (SBU) Strategy
: How do we compete effectively in a given business?
The Boston Consulting Group’s portfolio model
Market Growth Rate
Market Share
: the portion of a market controlled by a particular company or product.
Total Revenue for the firm / Total Revenue for the Industry = Firm's Market Share
Product-Market Expansion Matrix
Total units for the firm / Total Units in the Industry = Firm's Market Share
Marketing Strategy:
addresses a specific target market with a cohesive marketing mix of product, place, price, and promotion.
How do we compete in a given business?
Often, the most powerful marketing strategies begin by seeing the product through the eyes of BRAND CHAMPIONS (Customers/The Love Group: faithful members of the church).
Explore and understand the building blocks of marketing strategy and how it
relates of the value of the customers
Attracting and keeping...
Starts with the customer
Marketing Philosophies
Production Orientation:
" If you build it they will come"
Ex: IKEA ( already built chairs)
Sales Orientation: "Sell, Sell. Sell"
Aggressive sales techniques will result in higher sales
May fail to understand customers needs.
EX: Door to Door
Market Orientation:
Understand customer's needs and wants
Ex: LL Bean
Societal Orientation:
Preserve and enhance society
EX: The Body Shop
Concern about the enviroment
Provide environmentally friendly products
Determinants of Customer Perceived Value
Marketing Creates Value
successful products are more than function. They make emotional connection between product and customer.
What are the
problems are people trying to solve
?
How do we get from A to B
"Many products... what problems are customers trying to solve?
Decrease pain or Increase pleasure, that is why we buy stuff.
The Marketing Strategy Process
Profitability Drivers
Customer Acquisition
Acquire customers with less upfront sales and marketing investment
Acquire higher-value customers
Eliminate unprofitable customer acquisition activities where the cost of acquiring a customer extends the value of that customer
Increase share of customers
Find new ways to
acquire customers profitably
Sales per Customer
Add on Sales: ex. American Dolls
Partner with other firms
Kraft and Hershey (
Increase the share of customers for customers who buy from you and your competition.
Margin
Look for the Money
Change customer behaviors
Gas, soft drinks, moible banking
Customer Retention
Eliminate the root causes
Recover customers (builds it stronger)
loyalty initiatives to keep the top customers (ie. Loyalty cards: airlines, car wash, fast food)
Acquire more customers that are likely to be more intrinsically loyal.
Satifaction, Complaint Behavior, Retention
Interesting is most don't complain, but if they don't they leave. Complain, they are retained. --> Provide a way for your customers to communicate with you. You have a higher chance of winning them back.
Customer Profitability and Lifetime Value
Attempts to determine the economic value of a customer brings over the "lifetime" with the business.
Reward customers, fire customers, identify cross-selling and upselling opportunities.
