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CHAPTER 2 : Company and Marketing Strategy: Partnering to Build Customer…
CHAPTER 2 :
Company and Marketing Strategy:
Partnering to Build Customer Relationships
4 P's Marketing Mix
Product :
What the company sells ( it could be goods or services)
understanding what company needs to offer in order to stand apart from competitors and win over customers.
Focus on create products that satisfy consumes's needs and wants
Price
It refers to how much the company charges for their products (or services).
Picking the right price for the products to attract more buyers
Pricing strategy
Discount
Credit Policy
Place
Where the product will be provided to the customer.
Give customer convenience and ease to get the products
Promotion:
The marketing communication strategies and techniques to attract consumers to buy the products.
These may include advertising, sales promotions, special offers and public relations
Boston Consulting Group Matrix
A portfolio management framework that helps companies decide how to prioritize their different businesses
It is split into 4 quadrant:
Cash Cow
- Low Growth, High Share
Star
- High Growth, High Share
Question Marks
- High Growth, Low Share
Dog
- Low Share, Low Growth
The matrix reveals two factors that companies should consider when deciding where to invest (company competitiveness, and market attractiveness) with relative market share and growth rate as the underlying drivers of these factors.
Problems with BCG matrix
Time consuming
Expensive
It focuses on current business, not future planning
Difficult in defining SBUs and measuring market share and growth
Marketing Role : Strategic Planning
It is a process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
Setting Objectives
:check:Realistic
:check: Achievable
:check: Have time frame
Business Portfolio
Business Portfolio Planning
Shaping the future portfolio by developing strategies for growth and downsizing
Analysing its current business portfolio and deciding which businesses should receive more, less, or no investment.
Known as the collection of businesses and products that make up the company
Portfolio analysis is important for the business as the management will evaluate the products and businesses that make up the company
Ansoff Matrix
A tool used by firms to analyze and plan their strategies for growth.
4 Strategies :
Market Penetration
: This focuses on increasing sales of existing products to an existing
Market Development:
This strategy focuses on entering a new market using existing products market
Product Development
: Focuses on introducing new products to an existing market
Diversification
: Focuses on entering a new market with the introduction of new products
Marketing Strategy
Marketing strategy
is the logic by which the company hopes to achieve profitable relationships
Market segmentation
is the division of a market into distinct groups of buyers who have different needs, characteristics, or behavior and who might require separate products or marketing mixes
Market segment
is a group of consumers who respond in a similar
way to a given set of marketing efforts
Market targeting
is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
Market positioning
is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer
