Transcript MARKETING STRATEGY

Marketing Strategy.
An Overview.
Product.
Services.
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Central Role Of Marketing
• Marketing is the process through which a firm
creates value for its customers.
• After creating the value the firm is entitled to
capture a portion of it for itself through pricing.
• To create value on a sustained basis there has
to be a marketing strategy.
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The Major Activities.
• Marketing strategy involves the following
key activities.
– Selecting a target market.
– Positioning the product in the target
consumers mind.
– Planning the market activities to achieve the
desired positioning.
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SCHEMATIC OF MARKETING
PROCESS.
MARKETING ANALYSIS (THE 5C’S)
CUSTOMERS COMPANY COMPETITORS COLLABORTORS
CONTEXT
MARKET SEGMENTS TARGET MARKET SELECTION
PRODUCT & SERVICE POSITIONING
CREATING
VALUE
MARKETING MIX (THE 4 P’S)
PRODUCT PLACE PROMOTION
CAPTURING
VALUE
SUSTAINING
VALUE
PRICING
CUSTOMER
ACQUISITION
CUSTOMER
RETENTION
MARKETING
STRATEGY-AN
PROFITS
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5 C’s ANALYSIS
• Customer-----what needs to satisfy?
• Company-------what skills, competency.
To meet these needs?
• Competition– who competes to meet.
These needs?
• Collaborates- who do we enlist to.
Help? How ? what are their.
Cost structures. More &.
More seen as partners.
• Context----------- restrictions/limitations.
Cultural, technological,
Legal. (Pest).
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Customer Needs.
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EVERYTHING BEGINS WITH THE
CUSTOMER
• MARKETING STRATEGY BEGINS WITH THE
CUSTOMER.
• WHICH POTENTIAL CUSTOMER SHOULD THE FIRM
ATTEMPT TO COVER. SEGMENT THE MARKET
THROUGH DEMOGRAPHICS, GEOGRAPHIC,
PSYCHOGRAPHICS (LIFESTYLE).
• WITHIN SEGMENT WHICH TARGET CUSTOMER
GROUP, MASS MARKET, NICHES OR ONE-ON-ONE
OR USER STATUS LIGHT OR HEAVY,
PERFORMANCE V/S PRICE ORIENTED OR LOYAL
V/S UNSATISFIED.
• THE PROCESS OF SELECTING THE SEGMENT AND
THE TARGET MARKET IS CRITICAL.
• MARKET RESEARCH USED.
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Target Markets Other Issues.
• Firms comparative strength and WEAKNESS
VS. competition.
• The STRATEGY (potter model).
• The RESOURCES necessary.
• The availability of APPROPRIATE collaborators.
• Financial cost and returns.
• Gap in the market, does not mean market in the
gap.
• The USP. An explicit statement of the positioning
idea is critical.
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THE MARKETING MIX.
• “THE ADVANTAGE OF SOLVING THE
POSITIONING PROBLEM IS THAT IT
ENABLES THE COMPANY TO SOLVE THE
MARKETING MIX PROBLEM. THE
MARKETING MIX-PRODUCT, PRICE, PLACE
AND PROMOTION-IS ESSENTIALLY THE
WORKING THE TACTICAL DETAILS OF THE
POSITIONING STRATEGY”
P.KOTLER .Marketing management: analysis planning implementation and control.
• PRODUCT, PLACE (Channels of distribution),
PROMOTION (Communication strategy) and
PRICE.
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PRICE
• THE COMBINATION OF THE 3 PRECEEDING
P’s, DETERMINE THE TARGET CONSUMERS
PRECEPTION OF THE VALUE OF THE FIRMS
PRODUCT IN A GIVEN COMPETITIVE
CONTEXT.
• CONCEPTUALLY THIS IS THE MAX. PRICE
HE IS WILLING TO PAY AND SERVES AS THE
PRIMARY GUIDE TO PRICING THE
PRODUCT.
• ONCE THE FIRM HAS CREATED VALUE IT IS
ENTITLEDTO CAPTURE SOME FOR ITSELF.
THIS IS THE ROLE OF EFFECTIVE PRICING.
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What Is Service Marketing.
• Services are deeds, processes &
performances. (A stage drama).
• Intangible (product-tangible).
• Non STANDARD (STANDARDIZED).
• SIMULTANOUS production & consumption
(production separate from consumption).
• Perishable. (INVENTORIZED).
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FOUR ELEMENTS OF SERVICES
MARKETING.
• THE OFFERING.
• TO MEET THE NEEDS OF A GROUP OF CUSTOMERS.
• But impossiable to do everything well.
• Strategy in services excellence is defined as what a business
choses not to do.
• To create a sucessful service offering managers need to
decide which attributes to target for excellence and which for
inferior performance.
• THE PRICE.
• Charge the customer in a palatable way. Extra service e.g
banking on sundays.
• Create a win-win between operational savings and value
added services.(Progressive insurance sends a car to the
accident site).
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FOUR ELEMENTS OF SERVICES
MARKETING.
• THE EMPLOYEE.
• What makes our employee reasonably able to
achieve excellence?
• What makes our employees motivated to achieve
excellence.
• THE CUSTOMER.
• WOULD YOU ALLOW CUSTOMERS ON YOUR
FACTORY SHOP FLOOR?
• In services the customer gets involved in the
operational processes and this input influences
their experiences and often other customers.
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Expanded Marketing Mix For
Services Marketing.
• Traditional.
•
•
•
•
Product.
Price.
Place.
Promotion.
• Services marketing (+add.).
– People. Employees and customers.
– Physical evidence.
• Facility, equipment, dress, others.
– Processes.
• Flow of service simple, complex.
• Customer involvement.
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