Transcript Chap3-Dr.Chi - California State University, Long Beach

By
Dr. Robert Chi
Department of Information Systems
College of Business Administration
California State University, Long Beach
Marketing Strategy
Traditional Marketing Strategy
1. Segmentation
- Meaningful
- Actionable
- Financially attractive
2. Target Market Selection
3. Positioning
Old Navy
1. Fashion forward
2. Loss conscious
Challenges
1. Online segment = Offline segment
2. Old navy.com target the same customers as
Old navy stores
3. How should Old navy position it’s site?
Link between marketing strategy and business strategy
-Goal alignment
set up a goal
- Resource alignment
more resources to the same direction
-Activity alignment
do the same activities
-Implementation alignment
Marketing mix
-Price
- Product
-Promotion
-Distribution
Segmentation Prioritization (when you have a choice)
1. Buyer – Readiness strategy (affordable)
2. Attitude – receptive to the product (want to)
3. Trend/Market leaders
4. Willingness to pay
Pure vs. Mixed Business models in marketing strategy
Pure Online E – Commerce
Segmentation
Base – Demographic
- Geographic
- Psycho graphic
- Cognitive & Behavioral
Effective segmentation
- Meaningful
- Actionable
- Financially Attractive
Target Market Selection
- Segment size and growth – Financially
- Structural attractiveness – Porter’s model
-Company resources - Feasible
Positioning
Disney – Happiness or Fun
Starbucks Coffee – Relax & Enjoy
Mercedes – Symbol of Status
Positioning Plan
1.
Identify current postion
2.
Identify ideal position
3.
Develop alternatives to achieve ideal
4.
Select and implement promising
5.
Compare new actual with ideal postion
Brick and Mortar model
Segmentation
-No change
-Market expansion
-Reclassification – Expansion/Reduction
-Reclassification only
Targeting