Transcript Marketing Strategy

MARKETING STRATEGY
Agenda
Review of Hierarchy of Objectives
Common Elements of Objectives
The Process of Marketing Strategy Development
BIO-BREAK
The Evaluation of Opportunities
Target Market Selection
The Structure of Marketing Mix Strategies
BIO-BREAK
Generic Marketing Strategies
Product Strategies
Market Position Strategies
Marketing Strategy
Hierarchy of goals and objectives
Organizational Goals and Objectives
Marketing Goals and Objectives
Marketing Mix Goals and Objectives
Marketing Mix Element Goals and Objectives
Marketing Strategy
What business are you in?
Mission statement
Statement of marketing strategy
Indicates product, market scope
Shows growth factor
Shows differential advantage
Shows management orientation
Marketing Strategy
Elements of Objectives
An effect
Benchmark + effect = Desired Outcome
Effect has to be measureable
Should be realistic
Timeframe for evaluation
Evaluation and effect should be related
Marketing Strategy
Marketing Strategy Development
Recognize and evaluate an opportunity
Market size and potential
Key competitors
Choose target market
Develop Objectives for each opportunity
Develop Marketing Mix Strategy for each opportunity
Choose Marketing mix elements
Marketing Strategy
Opportunity Evaluation
Review of the Rule of 3
Review of Requirements for Market Size
Review of Relevant Competitive Set
Marketing Strategy
Target Market Selection
Introduction to Market Segmentation
Review of the Strategic Options
Equivalent Behaviors as the Critical Variable
Marketing Strategy
Structure of Marketing Mix Strategies
Are all Mix elements equally important?
Product as the key
Example using Product Life Cycle
Marketing Strategy
Generic Marketing Strategies
Cost Leadership
Lower costs of production and distribution
Product Differentiation
Unique product or brand
Focus
Focus on customer needs in a few segments
Marketing Strategy
Product Strategies
Product Mix Strategies
Market penetration versus market skimming
Premium
Goods
Penetration
Medium
OverPricing
Average
Quality
Bargain
Low
Hit and
Run
Shoddy
Goods
Cheap
Goods
High
Medium
High
Super
Bargain
Quality
Price
Low
Marketing Strategy
Product Strategies
Product Market Growth Strategies
Old
Market Penetration Product Development
(increase usage)
(new uses)
Market Development
Diversification
(new users)
(new users, new uses)
Old
New
Markets
New
Products
Marketing Strategy
Product Strategies
Boston Consulting Group Strategy:
Relative Market Share
Market Growth Rate
Problems with BCG Approach
Difficult to estimate relative market share in rapidly growing markets
Marketing Strategy
BCG Matrix:
22%
Market Growth
Rate
Stars
?
Some cash use
Future cash cow
High cash use
? Is to build or not
Cash Cows
Dogs
Generate cash for
?, Stars
Low or no cash use
When to divest
10%
0%
10x
1.5x
Relative Market Share
.1x
(log scale)
Marketing Strategy
Market Position Strategies
Market Follower Strategies
Conscious Parallelism
Similar products, prices
Avoid unprofitable segments
Market Niche
Specialize in a very small group of customers
Concentrated segmentation strategy……
Marketing Strategy
Market Position Strategies
Market Leader Strategies
Increase Size of Total Market
Product-Market Growth Strategies
Protect Market Share
Fortification
Assortment of brands, sizes
Innovation
Best defense is a good offense
Counteroffensive
Increase Market Share
BCG
Antitrust constraints
Marketing Strategy
Market Position Strategies
Market Challenger Strategies
Frontal Attack
Out-innovate leader
Tough to do, easier to defend
Flanking/Bypass Attack
Attack where leader is not looking
Find a new market segment
Price Discount Strategy
Buyers are sensitive to price
Works if leader does not cut price
Cheaper Goods Strategy
Lower quality but much lower price
Vulnerable to still cheaper goods
Prestige Goods Strategy
Increase both quality and price
Marketing Strategy
Market Challenger Strategies (cont.)
Cheaper Goods Strategy
Lower quality but much lower price
Vulnerable to still cheaper goods
Prestige Goods Strategy
Increase both quality and price
Marketing Strategy
Encirclement
Flanking Defense
Preemptive
Defense
Attacker
Defender
Frontal
Contraction
Defense
(bigger)
(smaller)
Attack
Counteroffensive
Position
Defense
Guerilla Attack
Mobile Defense
Flank Attack
Bypass
Marketing Strategy
Next time
MARKETING STRATEGY CASE
For Barco Projection, please prepare, by team, the case discussion for
class on 2/12. The deadline for receipt of the PowerPoint presentation is
noon 2/12.
Market Segmentation
Please read chapter 6