Marketing Strategy 1 Business and Marketing Strategies
Marketing orientation • Market Oriented Organization: understands buyers’ needs and wants and effectively combines and directs the skills and resources of the entire organization to provide high levels of satisfaction to its customers. • Marketing includes all the actions of the organization that are aimed at providing customers with superior value.
Marketing Orientation – Gaining Competitive Advantage • Gaining Competitive advantage – knowing consumer needs and competition. Lower prices than competitors for the same benefits or/and unique benefits that can offset a higher price.
Marketing Orientation • Customer Focus: the philosophy of identifying and satisfying customers. • Competitor Intelligence: importance of understanding competition. • Interfunctional coordination: all business functions working together to provide customer value.
Strategic Marketing Process • Marketing Situation Analysis • Designing Marketing Strategy • Marketing Program Development • Implementing and Managing Marketing Strategy.
The Strategic Marketing Process - Marketing Situation Analysis • Identifies Opportunities • Analyzing Markets: People with specific needs to a product/service • Analyzing competition: evaluation of competitors’ strategies, strengths, limitations and plans • Segmenting Marketing: The organization can focus its business capabilities on the requirements of one or more groups of buyers (Homogeneous segments)
The Strategic Marketing Process - Designing Marketing Strategy • Market Targeting and Positioning Strategy: people or organization to serve Setting of objectives (sales, market share, profits, increasing satisfaction, advertising awareness) Positioning Strategy: combination of products, channels of distribution, price and promotion strategies used to position itself in the target market (marketing mix)
The Strategic Marketing Process - Designing Marketing Strategy (cont/d) • Marketing Relationship: ensure customer satisfaction through collaboration with the parties involved. • New Product Strategies: developing new products to replace old because of declining sales and profits.
The Strategic Marketing Process - Marketing program Development • Objective is to achieve favorable positioning while allocating financial, human and production resources to markets and products as effectively and efficiently as possible. • Managing the Marketing Mix is deciding how to blend together the components of the marketing mix. Product/Service Strategy Distribution, Price, and Promotion Strategies.
The Strategic Marketing Process - Implementing and Managing Marketing Strategy • Design of the Marketing organization and implementation and control of the strategy. Marketing Organization: Deciding on people and allocating work responsibility. Organization Design needs to be evaluated on a regular basis. • Preparing the Marketing Plan (targeting, positioning marketing mix) • Implementation Strategy: who does what, dates and location of implementation • Evaluation and Control: On-going process, making decisions, implementing and evaluating their effectiveness.