Marketing Strategy - PowerPoint

Document Sample
Marketing Strategy - PowerPoint Powered By Docstoc
					Marketing Strategy

Marketing Strategy
   Generic business strategy frameworks
   Segmentation
   Targeting
   Positioning
   Generic marketing strategies
Generic Business Strategy
   Growth strategies
   Portfolio strategies—BCG Growth-Share
     Growth Strategies
           Product/ Market Expansion Grid

                Existing             New
                Products           Products
Existing   1. Market          3. Product
Markets       Penetration        Development

 New       2. Market
                             4. Diversification
Markets       Development
Product/ Market Expansion Grid
   Market Penetration

   Market Development
Product/ Market Expansion Grid
   Product Development

   Diversification
                         Boston Consulting Group Growth-
                         Share Matrix Framework
                                  Relative Market Share
                                  High                          Low
                               Stars                 Question Marks
Market Growth Rate

                       • High growth & share       • High growth, low share
                       • Profit potential          • Build into Stars or phase out
                       • May need heavy            • Require cash to hold
                          investment to grow          market share

                        Cash Cows                          Dogs
                       • Low growth, high share    • Low growth & share

                       • Established, successful   • Low profit potential
                       •Produce cash
BCG Framework Implications
   Dynamic nature of SBUs—importance of a
   Attractiveness of growing markets.
   Value of increasing market share.
   Cash Cows support Question Marks.
   Maintain Stars.
   Build Question Marks.
   Divest/harvest Dogs.
Market Segmentation
Market Segmentation
     Steps in Market Segmentation,
     Targeting, and Positioning
 Market Segmentation
1. Identify bases for
   segmenting the market
2. Develop segment profiles

                Market Targeting
                3. Develop measure of
                   segment attractiveness
                4. Select target segments

                                      Market positioning
                                    5. Develop positioning for
                                       target segments
                                    6. Develop a marketing
                                      mix for each segment
Target Segment Size

  mass   niche   micro   customized
Step 1. Market Segmentation
Demographic Segmentation
               Dividing the market into groups
                based on variables such as:
                  Age

                  Gender

                  Family size or life cycle

                  Income

                  Occupation

                  Education

                  Religion

                  Race

                  Generation

                  Nationality
Step 1. Market Segmentation
Psychographic Segmentation
Divides Buyers Into Different Groups Based on:
       Step 1. Market Segmentation
       Behavioral Segmentation
   Dividing the market into
    groups based on variables
    such as:
      Occasions

      Benefits

      User status

      Usage rate

      Loyalty status

      Readiness stage

      Attitude toward product
      Benefit segmentation of the
      beverage market
        Which product would you choose for which benefit?

                            coffee   tea   milk   beer   cola   un-cola

Relieve throat irritation            +++
Settle upset stomach                       +++                   ++
Provide energy and pep       ++                          +++
Help relax, unwind                   +            +++
Provide nutrition                          +++
Good taste                                         +     +++
Quench thirst                                            +++      +
            Model of Segmentation
  values                               User differences:
               needs                   •Life cycle
                                       Situation differences:
Brand attitudes                        •Psychological
Choice rules
Price sensitivity
                       Brand loyalty
                       Use level
                       Use situation
Step 1. Market Segmentation
Requirements for Effective Segmentation
   Measurable        • Size, purchasing power, profiles
                      of segments can be measured.

   Accessible        • Segments can be effectively
                      reached and served.

  Substantial        • Segments are large or
                     profitable enough to serve.
                     • Segments must respond
  Differential       differently to different marketing
                     mix elements & programs.

                      • Effective programs can be
   Actionable         designed to attract and serve
                      the segments.
   Advantages and disadvantages
   of segmentation
      guides marketing              increases marketing
       research                       costs
      improves                      proliferation of
       satisfaction                   products
      improves forecasting          consumer backlash
      identifies                    limits general
       competition and                popularity

Segmentation is a trade-off of efficiency for effectiveness.
Step 2. Market Targeting
   Segment Size and Growth

   Segment Structural Attractiveness

   Company Objectives and Resources
Step 2. Market Targeting
Market Coverage Strategies
  Marketing                                    Market

              A. Undifferentiated Marketing
Marketing Mix 1                               Segment 1
                                              Segment 2
Marketing Mix 2
                                              Segment 3
Marketing Mix 3
              B. Differentiated Marketing

                                              Segment 1
  Marketing                                   Segment 2
                                              Segment 3
              C. Concentrated Marketing
Step 2. Market Targeting
Choosing a Market-Coverage Strategy

           Company Resources

           Product Variability

    Product’s Stage in the Life Cycle

           Market Variability

   Competitor’s Marketing Strategies
      Socially Responsible Target
   Smart targeting helps companies and
    consumers alike.

   Target marketing sometimes generates
    controversy and concern.
Step 3. Positioning Strategy
   Product’s Position - the way the product
    is defined by consumers on important
    attributes - the place the product
    occupies in consumers’ minds relative to
    competing products.

   Marketers must:
   Step 3. Choosing a Positioning
 Step 1. Identifying
Possible Competitive
                   Step 2. Selecting the
                    Right Competitive
                                    Step 3. Communicating
                                      and Delivering the
                                       Chosen Position
      Identifying Possible
      Competitive Advantages
   Key to winning and keeping customers is to
    understand their needs and buying processes
    better than competitors do and deliver more

   Competitive advantage is an advantage over
    competitors gained by offering consumers greater
    value, either through lower prices or by providing
    more benefits, that justify competitive advantage,
Generic Marketing Strategy
   Michael Porter’s basic strategic options:
       Cost leadership
       Differentiation
       Focus

Focus implies segmentation and
Basic Competitive Strategies

 Overall Cost

                  Middle of
                  the Road
Identifying Possible
Competitive Advantages
       Product                     Services
   Differentiation             Differentiation
    i.e. Features,       i.e. Delivery, Installation,
Performance, Style &    Repair Services, Customer
Design, or Attributes         Training Services

        Image                    Personnel
    Differentiation           Differentiation
    i.e. Symbols,          i.e. Hiring, Training
 Atmospheres, Events       Better People Than
                             Competitors Do
     Competitive Strategies: Value
Companies Gain
Leadership Positions by              Operational
Delivering Superior Value            Excellence
to their Customers
Through These
Strategies:                   Customer

       Analyzing Competitors
Identifying the

                  Assessing competitor’s
                  objectives, strategies,
                  strengths and weaknesses,
                  and reaction patterns

                                      Selecting which
                                      competitors to
                                      attack or avoid
  Strategies Relative to
Firms Competing in a Given Target Market Differ in their
Objectives and Resources so May Choose the Following
                                                       Motorola, a market

       Competitive Marketing
                                                       leader, is looking to
                                                       expand total market, so it
                                                       emphasizes the overall
                                                       need for pagers, while
                                                       making it clear that
                                                       its product can fulfill that


Firm With the Largest Market     Runner-Up Firms that Fight
            Share                 to Increase Market Share

Expand the        Protecting     Attack the      Avoid the
Total Market     Market Share   Market Leader   Market Leader

          Expanding             Attack Other    Acquire Smaller
         Market Share               Firms           Firms
                                                               Here, Oldsmobile is making cars that resemble its
                                                               foreign competitors, then appealing to customers to
                                                               buy these domestic cars.

      Competitive Marketing

Runner-Up Firms that Want       Firms that Serve Small Segments
to Hold Their Share Without        Not Pursued by Other Firms
     Rocking the Boat

                                     End-User           Customer-Size
                                     Specialist           Specialist
  Follow         Follow at a
  Closely         Distance
                               Geographic          Quality-
                                 Market             Price
                                Specialist        Specialist

Description: Marketing Strategy document sample