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Overall marketing strategy

Overall marketing strategy. Based on their mission statements, firms set strategic objectives Strategic objectives should be quantified and measurable and create a challenge for the organization Insight: you cannot run an organization on a large number of objectives. Overall marketing strategy.

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Overall marketing strategy

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  1. Marketing Management

  2. Overall marketing strategy • Based on their mission statements, firms set strategic objectives • Strategic objectives should be quantified and measurable and create a challenge for the organization • Insight: you cannot run an organization on a large number of objectives Marketing Management

  3. Overall marketing strategy • What is our source of revenue? • Where does our business come from? • There are many options to increase sales, including converting non-users; taking-away share from competitors; increasing overall market by higher intensity, or unwanted outcomes such as cannibalisation Marketing Management

  4. STARTING SITUATION OVERALL CUSTOMER BASE NON-USERS C OUR OTHER BRAND A CURRENT CUSTOMERS B COMPETING BRAND Marketing Management

  5. OPTION: TAKE AWAY CUSTOMERS FROM B OVERALL CUSTOMER BASE NON-USERS C OTHER BRAND CURRENT CUSTOMERS A B COMPETING BRAND Marketing Management

  6. UNWANTED OPTION:CANNIBALIZE OVERALL CUSTOMER BASE NON-USERS A C OUR OTHER BRAND CURRENT CUSTOMERS B COMPETING BRAND Marketing Management

  7. OPTION:INCREASE A BY CONVERTING NON-USERS OVERALL CUSTOMER BASE NON-USERS A C OUR OTHER BRAND CURRENT CUSTOMERS B COMPETING BRAND Marketing Management

  8. Overall marketing strategy • You should do something different in every situation • Converting non-users, be careful not to become generic • Generic examples: Marketing Management

  9. Overall marketing strategy • Take share away from competitors: usually a good move; look at the cost • Cannibalization: avoid Marketing Management

  10. Product features • The most basic strategic decision: which markets to serve by which products • Depending on the product and the customers: develop segment specific product features • Insights from information goods: versioning Marketing Management

  11. Competitive advantage • There are many ways to create competitive advantage: • Cost-based: IKEA, Southwest • Quality-based:Fedex, Danone • Perceived quality or brand: • Or a combination of all these Marketing Management

  12. Product Positioning • What are the dimensions ? • How important are dimensions ? • How do you compare on dimensions ? • How do customers decide ? Marketing Management

  13. PREFERENCE MAP OF A NEW PRODUCT CATEGORY A THE IDEAL POINT x B Marketing Management

  14. PREFERENCE MAP AFTER THE FIRST ENTRY A THE NEW IDEAL POINT x Y x THE FIRST BRAND THE IDEAL POINT B Marketing Management

  15. WHERE TO POSITIONS SECOND BRAND ON THE PREFERENCE MAP ? A ? THE NEW IDEAL POINT x Y THE FIRST BRAND ? ? B Marketing Management

  16. The value proposition For (target customer) who (statement of the need) the (product or brand name) is a (product category) that (statement of the key benefit/reason to buy). Unlike (primary competitive alternative), (product/brand name) (statement of the primary differentiation) Marketing Management

  17. The value proposition=often called positioning statement • The Coca-Cola Bible: Point of Difference Point of Reference Support Marketing Management

  18. Marketing Management

  19. The Marketing Mix • Price • Communication • Promotion • Channels • Or together: The 4P  Marketing Management

  20. Market segmentation • Everything we have until now discussed is based on the concept of market segmentation • There is an appealing reason to segment markets: to offer exactly what the customers want and create profit this way Marketing Management

  21. Market segmentation definitions • Segmenting is breaking down the market into homogeneous groups of customers • Reasons: Customers differ in wants Have different price sensitivity Competitors might be active Marketing Management

  22. An overview of segmentation criteria in consumer markets 1. Socio-demographics 2. Psychographics 3. Lifestyle 4. Benefits sought 5. Behavioural variables: user status/loyalty, buyer readiness, usage level, purchase habit 6. Usually multiple variables Marketing Management

  23. Relevant Descriptor Variable: Climate 1 Cold zone 2 Continental zone 3 Hot zone Customer distribution Segment 1 Segment 2 Segment 3 0 100% Likelihood of solar panel purchse

  24. Irrelevant descriptor Variable: Education 1Low 2 Medium 3 High Customer distribution Segment 1 Segment 2 Segment 3 0 100% Likelihood of solar panel purchse

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