Marketing Strategy by E9h3GK

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									GLOBAL MARKETING

     Marketing Strategy
        Benefits of Strategy
• Coordinates activities among functional
  areas of organization

• Defines resource allocation

• Leads to a superior market position
    Components of Strategy
Statement of objectives
                                        Establish general
Selection of strategic alternative(s)   direction of strategy

Selection of customer targets
Choice of competitor targets              Positioning
Statement of core strategy

Description of supporting marketing mix            Implement
Description of supporting functional programs      strategy
             Marketing Goals
• Desired general accomplishments stated in
  vague terms.

• Indicate the direction the firm is attempting to
  move and the set of priorities it will use in
  evaluating alternatives and making decisions.
• Should be attainable and realistic.

• Should be internally consistent.

• Should be comprehensive and help to clarify the
  roles of all parties in the organization.

• Should involve some degree of uncertainty.
          Examples of Goals

• To have the largest, best-trained sales force in
  the industry.

• Having the best recognized and most effective
  advertising campaign in the industry.
        Marketing Objectives
• Provide specific and quantitative benchmarks
  that can be used to gauge progress toward the
  achievement of the marketing goals for which
  they are developed.

• Should be attainable with a reasonable degree
  of effort.
• Should specify the time frame for their
  completion.

• Usually related to sales revenues, market
  share, profitability, or cash flow
       Examples of Objectives
• The marketing department will be responsible
  for having 40% of customers listing this financial
  institution as their primary financial institution
  within one year.

• The sales department will increase sales 18%
  during the next 2 years.
 Strategic Alternatives: Growth
• Market development strategies
  – Attract non-users
  – Enter new markets
           Attracting non-users
• Increase willingness to buy
   – Demonstrate benefits of product form
   – Develop new product forms with desired benefits


• Increasing ability to buy
   – Offer lower prices or credit
   – Provide greater availability
           Enter new markets
• Broaden distribution
  – Move into new geographic markets
  – Add channels of distribution


• Product-line extension
  – Vertical product line extension
  – Horizontal product line extension


• Expansion through acquisition or diversification
• Market penetration strategies
  – Increase purchase rate of existing customers
  – Attract competitors’ customers
     Increasing purchase rate
• Broaden usage
  – Provide examples of additional uses of product


• Increase consumption levels
  – Lower prices, special-volume packaging
  – Improve buyers’ perceptions of product benefits


• Increase rate of replacement
  – Improve benefits, e.g., convenience, lower operating
    costs, that encourage early replacement
       Attracting competitors’
             customers
• Head-to-head competition
  – Superior marketing effort
    • Quality, selection, availability, brand name
      recognition
  – Price-cost leadership
    • Offer comparable quality at lower price
• Differentiation
  – adding a set of meaningful and valued
    differences to distinguish the firm’s offering
    from competitors’ offerings
  – Criteria:
     • important              • preemptive
     • distinctive            • affordable
     • superior               • profitable
• Differentiation Variables
     Product          Services          Personnel       Channel        Image
   Form            Ordering ease       Competence       Coverage      Symbols

   Features        Delivery            Courtesy         Expertise     Media

   Performance     Installation        Credibility      Performance   Atmosphere

   Conformance     Customer training   Reliability                    Events

   Durability      Customer            Responsiveness
                   consulting
   Reliability     Maintenance &       Communication
                   repair
   Repairability   Miscellaneous

   Style

   Design
        Strategic Alternatives:
              Profitability
• Maintain satisfaction
  – Consistent, high quality
  – Effective customer complaint system
• Build strong customer relationships
  – Encourage repeat business through formal
    relationships
  – Target best customers
• Develop complementary products
  – Increase dependence on firm
• Decrease costs/increase efficiencies

• Increase price

• Decrease product offerings/emphasize
  selling of most profitable products
   Strategic Alternatives: Cash
               Flow
• Harvest market position
  – Systematically raise prices and reduce
    marketing expenses to capitalize on ST
    performance opportunities
• Divest market position
  – Sell firm
  – Close down operation and sell assets
Implications of Product Life Cycle
      on Marketing Strategy
           Introduction Stage
• Objective: Create awareness and product
  trial
 Product—offer a basic product
 Price—charge cost-plus
 Distribution—selective
 Communications—target advertising to early
                   adopters and dealers to increase
                   awareness; heavy sales
                   promotion to stimulate trial
              Growth Stage
• Objective: Maximize market share

 Product—product extensions, warranties
 Price—decrease prices to penetrate
 Distribution—intensive
 Communications—target advertising to mass market
                    to increase awareness; reduce
                    sales promotions
              Maturity Stage
• Objective: Maximize profit while defending
  market share
 Product—diversify products and brands
 Price—match or best competitors’ prices
 Distribution—more intensive
 Communications—use advertising to stress brand
                   differences and benefits; increase
                   sales promotions to encourage
                   brand switching
               Decline Stage
• Objective: Reduce expenditure and milk
  the brand
 Product—phase out weak models
 Price—cut price
 Distribution—selective; phase out unprofitable outlets
 Communications—reduce and target hard-core
                   loyals; reduce sales promotions to
                   minimal levels

								
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