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Marketing Strategy

Marketing Strategy Segmentation, Targeting and Positioning Business Strategy Marketing Strategy Who to Serve How to Serve Marketing Tactics and Programs Pricing Policy Product Policy Promotional Policy Place/Distribution Policy List prices Discounts and promotions Credit terms

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Marketing Strategy

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  1. Marketing Strategy Segmentation, Targeting and Positioning

  2. Business Strategy • Marketing Strategy • Who to Serve • How to Serve Marketing Tactics and Programs PricingPolicy ProductPolicy Promotional Policy Place/DistributionPolicy • List prices • Discounts and promotions • Credit terms • Etc. • Length and depth of line • Quality • Associated services • Packaging/labeling • Design • Etc. • Intensity • Terms • Service • Etc. Communication Mix Elements The Tools of Marketing Mission SBUs STP the “Offering”

  3. Business Strategy A Business has customer groups (i.e. markets), customer needs, core offering Three generic business strategies (Porter):1. Overall cost leadership 2. Differentiation 3. Focus

  4. Business Growth Strategies

  5. Marketing Strategy (STP) • Segmentation of customer groups (markets) • Selection of specific Target Markets • Positioning of core offering to each target market

  6. The Environments FACTORS SHAPING PRIMARY DEMAND • Cultural, Social and Demographic Environment • Major effect is on people’s and organization’s willingness to buycertain kinds of products and services • Economic and Technological Environments • Impacts on people’s and organization’s ability to buy • Political and Legal Environments • Impacts on the nature of practices used to drive primary and selective demand • May also shape primary demand for goods and services needed to comply with regulations

  7. The Environments FACTORS SHAPINGSELECTIVEDEMAND • Competitive Environment • Impacts on whether we can meet buyer needs better than anyone else • Includes substitutes • Major effect is on people’s and organization’s choiceof brands other than yours • Customer Environment • Major effect is on people’s and organization’s choice of brands • Current Marketing Situation (i.e. the internal environment) • Major effect is on people’s and organization’s choiceof your brand over others

  8. Competitive Assessment Marketing Strategy • Target Market(s) • Business Strategy • Generic Strategy • Market Share • Key Success Factors • Share of Mind • Competitive Advantage (Positioning) For Each Competitor, Assess the following: Marketing Mix Elements • Core Offering(s) • Product/Service Quality • Pricing • Communication Media • Personal Selling Methods • Distribution Methods • Location • Post-sales service

  9. Segmentation Scheme Level 1 - Base Level 2 - Base • Typical Bases: • Demographic • Geographic • Behavioral • Psychographic

  10. A Sample

  11. The Segmentation GridConsumer Profiling Contents: • Who buys… • What • Where • When • Why • How

  12. Assessment of Current Marketing Situation • Current marketing strategy assessment • Segmentation strategy • Target Markets • Positioning & Branding • Marketing Mix Elements • Sources of competitive advantage • Constraints • Budget • Technology • Human factors • Channels • Suppliers • Management, etc.

  13. Overall Plan Objectives Individual Segment Objectives Positioning Objectives • Tactical Objectives: • Product Objectives • Pricing Objectives • Place Objectives • Promotion Objectives SMART Objectives • Specific • Measurable • Achievable • Realistic • Timeline The Marketing Plan A Hierarchy of Objectives

  14. CUSTOMER ANALYSIS Who BUYS What, Where, When, How and Why COMPETITOR ANALYSIS Who OFFERS What, Where, When, How and Why Determine Basis of Segmentation Determine Basis ofDifferentiation COMPANY ANALYSISGiven your objectives and resources … what can you do, for whom, where and when? Integrating Analysis with Planning ASSESS MARKET-COMPANY FIT Define Quality and Identify Segments You Can Serve(Targeting) ASSESS PRODUCT-COMPANY FIT Evaluate Relative Quality and Identify Competitors You Can Beat (Targeting & Positioning)

  15. Segment A Segment A Niche A1 Niche A1 Niche A2 Niche A2 Niche A3 Niche A3 Segment B Segment B Segment B Segment B Segment C Segment C Segment C Segment C Mass Market Multi- Segment Strategy Single Segment Strategy Segment Niche Strategy Mass Customization Strategy Alternatives Segmentation Strategy

  16. Targeting Decision Matrix

  17. Positioning • The “definition”, “place”, or “identity” of a product in the minds of consumers, relative to competitive offerings. • Assumes • Differentiation • A positioning statement • To defined target segment • X is the brand of defined category • That unique selling proposition

  18. Positioning Competitively:Alternative Positioning Strategies • Product attributes • Benefits offered • Usage occasions • Classes of users • Directly on competitor • Around competitor • Against product class

  19. What the Customer Gets Pre-sales services Level of quality Delivery Brand identity What theCustomerWants Features Image Credit Back-office services Packaging Associated services Warranty Installation Positioning: The Unifying Theme for Marketing Efforts • Positioning Reflects Key Elements of Strategy • How we think the customer views the product • How we want the customer to think about us • Who the customer sees as a substitute for us • What we feel we can do better than the competition • Positioning Shapes Customer Expectations • A “promise” to potential customers • The reason they give us trial; the standard we mustmeet • All Marketing Elements Must Reinforce the Positioning • Positioning embodies the principle of market FOCUS • Focus requires a concentration on a specific type • of customer • Inconsistencies between marketing tools leads to a • loss of efficiency and effectiveness

  20. Creating a Value Proposition (Positioning) • Part 1: What We Do • For the target market • Who want the “consumption problem” (what “need” do you serve?) • Our product is our portion of the “solution” (when do they think about your class of product in connection with that need?) • That features key benefit provided (what’s the one or two things you want them to remember about you?) • As measured by how the customer infers quality • Part 2: Why We Will Win • Unlike our main competitors • Our product provides key point(s) of difference • As supported by what makes our difference possible (why they should believe us…TODAY) • And protected by why the competition cannot easily overcome it (why they should believe us…TOMORROW)

  21. The role of the marketing mix Product Price Place Promotion Physical Evidence Process People Partnering Positioning Target Customers Marketing Strategy Decisions Tactical Implementation Customer Effects

  22. Product Place Promotion Price • Objectives • Physical Goods • Service • Features • Quality Level • Accessories • Installation • Instructions • Warranty • Product Lines • Packaging • Branding • Objectives • Channel Type • Market Exposure • Kinds of Middleman • Kinds and Locations of Stores • How to Handle Transporting and Storing • Service Levels • Recruiting Middlemen • Managing Channels • Objectives • Blend • Salespeople • - Kind • - Number • - Selection • - Training • - Motivation • Advertising • - Targets • - Kinds of Ads • - Media Type • - Copy Thrust • - Who Prepares? • Sales Promotion • Publicity • Objectives • Flexibility • Level over Product Life Cycle • Geographic Terms • Discounts • Allowances Some Decision Areas Organized by the Four Ps

  23. Phys. Evidence Process People Partnering • Objectives • Facility Design • Equipment • Signage • Employee Dress • Other tangibles • - Reports • - Bus. Cards • - Statements • - Guarantees • Objectives • Flow of activities • Customer involvement • Number of steps • Queuing • Payment methods • Objectives • HR activities • Customer training • Customer education • Objectives • Loyalty programs • Incentive programs • Alliances • Networking Some Decision Areas Organized by the other Ps

  24. Marketing Mix

  25. Implementation

  26. Budget • Projections of sales • Include and note implementation costs • Sensitivity analysis

  27. Controls The Marketing Plan A Hierarchy of Objectives Overall Plan Objectives Metrics Method of Evaluation Individual Segment Objectives Timing and frequency of Evaluation Reaction Plans Contingencies

  28. The Report • Introduction (Background) • Case Problem(s), Issue(s) • Objectives/Decision Criteria • Analysis • Current marketing situation • Identification and analysis of alternatives • Marketing Strategy/ Recommendations • Implementation Plan (Marketing Mix)

  29. Sources Dr. S. Armstrong, Wharton Dr. M. Cunningham, Queen’s Mr. K. Wong, Queen’s Dr. S. Taylor, Queen’s Kotler and Keller (2007), A Framework for Marketing Management – 3rd Edition, Pearson/Prentice Hall Zeithaml, Bitner, and Gremler (2005), Services Marketing – 4th Edition, McGraw-Hill The 2201 Team – S. Myrden, D. Stapleton, T. Jones

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