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MKT - CH2 - Developing Marketing Strategies and a Marketing Plan,…
MKT - CH2 - Developing Marketing Strategies and a Marketing Plan
the specific actions a firm intends to implement to appeal to potential customers
Marketing Strategy
identifies the following:
Firm's target Market
related marketing mix (4p's)
bases upon which the firm plans to build a sustainable competitive advantage
something that can persistently do better than its competitors that is not easily copied and this can be maintained over a long period of time
this "wall" makes it hard for competitors to contact customers inside.
There are 4 overarching strategies to focus on aspects of the marketing mix to create and deliver value and develop a competitive advantage
the 4 strategies
Customer Excellence,
Focuses on retaining loyal customers and excellent customer service
when a firm develops value based strategies for retaining loyal customers
focused on Customer Lifetime value over a specific purchase
create an emotional bond through loyalty programs
firms can create special retention programs to keep clients
Customer Service
this alone can provide a sustainable competitive advantage
It takes time and effort to build a reputation for customer service, but once there, it can sustain this advantage for a long time
Operational Excellence,
achieved through efficient operations and excellent supply chain and human resource management
efficient operations provide the customer with lower-priced merchandize
gain exclusive rights to sell merch in a particular region
to give customers
the merch they want
when they want it
in the required quantities
at a lowered delivered cost than that of their competitors
Product Excellence
, having products with high perceived value and effective branding and positioning
high perceived value
effective branding and positioning
its hard to develop competitive advantages when selling commodities
positioning the product / service by using a clear, distinctive brand image, and constantly reinforcing that image through merch, service and promotion
Locational Excellence
, having a goof physical location and Internet Presence
location, location, location
it is normally sustainable, because its hard to be duplicated
The Marketing Plan
Marketing Plan
Strategic planning is not sequential
The first time the marketing plan is executed, you can follow a sequence, but after implementation, then it doesn't need to follow a sequence
planning processes can move back and forth, depending on many changes
e.g. situation analysis may uncover logical alternatives,
or reveal that insufficient resources have been allocated to a particular product
Portfolio analysis
management evaluates the firm's various products and business, and allocates resources according to which products are expected to be the most profitable for the firm in the future
this type of analysis is done at the Strategic Business Unit or product line level
SBU
a division of the company that can be manager somewhat independently from other divisions since it markets a specific set of products to a clearly defined group of customers
Product Line
is a group of products that consumers may use together or perceive as similar in some way
Growth Strategies
Downsizing, Exiting markets or reducing product portfolios
Implementation Phase
STP
Segmentation
Market Segment
, consumers who respond similarly to a firm's marketing efforts
Market Segmentation,
Its the process of dividing the market into distinct groups of customers where each individual group has similar needs, wants, or characteristics, therefore, they appreciate products or services geared specially for them in similar ways
Targeting
once market is segmented, the segment's attractiveness is evaluated, it chooses a specific target
Targeting is the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market
Positioning
Once segments are decided, it needs to define how it wants to be positioned within those segments.
market positioning
involves defining the marketing mix variables so that target customers have a clear, distinct, desirable understanding of what the product does or represents in comparison with competing products
Implement Marketing Mix and allocate resources
Product and Value Creation
Firms develop products and services that customers perceive as valuable enough to buy
Price and Value for Money
value based marketing requires that firms charge a price that customers perceive as giving good value for the products and services they receive
a firm must have a clear focus in terms of what products to sell, where to buy them, and what methods to use in selling them
Price must be based on the value that the customer perceived, too high? not enough sales, too low? not enough margins
Place and Value Delivery
The firm must be able to make the product or service readily accessible when and where the customer wants it
Promotion and Value Communication
marketers communicate the value of their offering, or the value proposition, to their customers through a variety of media, including TV, radio, magazines, buses, trains, blimps, sales promotion, publicity, the sales force, and the internet
consider the most efficient and effective methods to communicate with your customers
research has shown that tailored and engaging material in websites is more effective than mail or TV
marketing managers must sett a budget, then develop schedules and timelines for each personnel responsible for the respective activity to avoid bottlenecks and ensure smooth and timely implementation of the marketing mix activities
The marketing team is usually responsible for the day-to-day operational decisions involved in executing the plan
Planning Phase
Define the business mission and objectives
Mission Statement
What does it needs to do to accomplish its goals and objectives
broad description of a firm's objectives and the scope of activities it plans to undertakeñ attemts to answer two main questions
what type of business is it?
How does the company is building a sustainable competitive advantage
Situational Analysis
Swot Analysis
weaknesses
opportunities
threats
strenghts
Understand where the company has a sustainable advantage
Examination of Market Trends
Customer Analysis
Competitive Analysis
opportunities and uncertainties of the marketplace due to changes in Cultural, Demographic, Social, Technological, Economic, and Political Forces (CDSTEP)
Control Phase
Evaluate performance using marketing metrics
who is accountable for performance?
at each level, business unit and it's manager should be held accountable only for the revenues, expenses and profits they control.
performance evaluations are used to pinpoint' problem areas
reasons for performance, above or below expected levels should be examined
performance objective and metrics
metrics differ at different stages of the company and the plan,
one approach is to compare a firm's performance over time or to competing firms
sales and profits are a good case
another method is viewing the firm's products or services as a portfolio, depending on the firms relative performance, the profits from some products or services are used to fuel growth for others
Financial Performance Metrics
Revenue, sales or profits
Managers must understand how their actions affect multiple performance metrics
compare vs last year
compare against a competitor
corporate social responsibility metrics are often used also
impact on the environment
diversification of the workforce
energy conservation initiatives
Multiple sources of Advantage
in most cases, a single strategy will not suffice, multiple approaches can win the jackpot
This will depend on the target market and its expectations and how the mix creates a very valuable, and distinct mix that will not be easily copied
Diversification, introduces a new product or service to a market segment that is currently not served
Related
, when target market or marketing mix shares something in common with the new opportunity
Unrelated
, when new business lacks any common elements with the present business, do not capitalize on either core strenghts associated with markets or products
identify and evaluate opportunities for increasing sales and profits
Market Penetration
, employs existing marketing mix and focuses the firm's efforts on existing customers, growth might be achieved by encouraging currents customers to patronize the firm more often or buy more merch on each visit
Product Development
, offering a new product or service to a firm's current target market
Market Development
, employ existing marketing offer to reach new market segments,
products and services
markets
Current
New
New