Marketing Strategy

1
Marketing Strategy

• Segmentation, Targeting and Positioning

2
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 peoples and organizations
  willingness to buy certain kinds of products and
  services
• Economic and Technological Environments
• Impacts on peoples and organizations 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 SHAPING SELECTIVE DEMAND
• Competitive Environment
• Impacts on whether we can meet buyer needs better
  than anyone else
• Includes substitutes
• Major effect is on peoples and organizations
  choice of brands other than yours
• Customer Environment
• Major effect is on peoples and organizations
  choice of brands
• Current Marketing Situation (i.e. the internal
  environment)
• Major effect is on peoples and organizations
  choice of your brand over others

8
Competitive Assessment
For Each Competitor, Assess the following

• Marketing Strategy
• Target Market(s)
• Business Strategy
• Generic Strategy
• Market Share
• Key Success Factors
• Share of Mind
• Competitive Advantage (Positioning)

• Marketing Mix Elements
• Core Offering(s)
• Product/Service Quality
• Pricing
• Communication Media
• Personal Selling Methods
• Distribution Methods
• Location
• Post-sales service

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Segmentation Scheme
Level 1 - Base
Level 2 - Base

• Typical Bases
• Demographic
• Geographic
• Behavioral
• Psychographic

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A Sample
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The Segmentation GridConsumer Profiling

• Contents
• Who buys
• What
• Where
• When
• Why
• How

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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.

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SMART Objectives
The Marketing Plan A Hierarchy of Objectives

• Specific
• Measurable
• Achievable
• Realistic
• Timeline

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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)
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Alternatives Segmentation Strategy
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Targeting Decision Matrix
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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

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Positioning CompetitivelyAlternative
Positioning Strategies

• Product attributes
• Benefits offered
• Usage occasions
• Classes of users
• Directly on competitor
• Around competitor
• Against product class

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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

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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
• (whats 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 usTODAY)
• And protected by why the competition cannot
  easily overcome it
• (why they
  should believe usTOMORROW)

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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
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Some Decision Areas Organized by the Four Ps
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Some Decision Areas Organized by the other Ps
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Marketing Mix
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Implementation
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Budget

• Projections of sales
• Include and note implementation costs
• Sensitivity analysis

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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
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The Report

• Introduction (Background)
• Case Problem(s), Issue(s)
• Objectives/Decision Criteria
• Analysis
• Current marketing situation
• Identification and analysis of alternatives
• Marketing Strategy
• Implementation Plan (Marketing Mix)
• Budget and Controls
• Conclusions

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Sources

• Dr. S. Armstrong, Wharton
• Dr. M. Cunningham, Queens
• Mr. K. Wong, Queens
• Dr. S. Taylor, Queens
• 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