Transcript Developing a Market Strategy

DEVELOPING A MARKET STRATEGY

Costly and Important
50% or more of the selling price
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Carefully planned
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Meet customer needs
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Make a profit
Market Planning
A COMPANIES PLAN THAT
IDENTIFIES HOW IT WILL USE
MARKETING TO ACHIEVE ITS
GOAL IS CALLED MARKET
STRATEGY.
Developing a Market Strategy
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Step 1: Identify the
target market
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Step 2: Develop a
Marketing Mix
Target Market
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Aim to Broad
 Too
many unhappy people
 Customers don’t like product
 Waste money
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Specific aim
 Much
easier to please customers
Activity
snowmobile
Flashlight - cranks
Tool Set
Honda Odyssey
Laptop Computer
New Jordan Shoes
Panda Car (4 feet tall)
Marketing Mix
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Blending of 4 elements
Product
Place
Price
Promotion
Product
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Brand Name
Functionality
Styling
Quality
Safety
Packaging
Repairs and Support
Warranty
Accessories and Services
Place
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Distribution Channels
Market Coverage
Specific Channel members
Inventory Management
Warehousing
Distribution Centers
Order Processing
Transportation
Reverse Logic
Price
Pricing Strategy
 Suggested Retail Price
 Volume discounts and wholesale pricing
 Cash and early payment discounts
 Seasonal pricing
 Bundling
 Price flexibility
 Price discrimination
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Promotion
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Promotional strategy
Advertising
Personal selling & sales force
Sales promotions
Public relations and publicity
Marketing communications budget
Where do Companies go wrong?
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Assume they know what the customer
wants.
Making a product – then trying to sell it
to customers.
Fail to think of possible drawbacks.
Web TV
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WebTV (now MSN TV) offered consumers Internet
connection via their television sets in the mid-1990s. A
Cable World article by Andrea Figler describes it this
way: The service grew quickly at first, attracting
mainstream users that typically shied away from
technology. But to WebTV's dismay, they became the
dreaded consumer: a customer who failed to produce
new revenue streams but insisted on creating
expensive customer service problems. So Microsoft
which bought WebTV in 1997, scrapped the brand. It
never passed the one-million-subscriber mark.
Kellogg's Breakfast Mates
The idea behind Kellogg's Breakfast Mates was fairly
simple -- pack a box of cereal with milk and a
spoon, and you have a tasty meal on the go! Hey, it
worked for Lunchables, right? Unfortunately,
Kellogg's failed to take two things into account. First
of all, though the milk included in the Cereal Mate
did not require refrigeration, no one likes the idea of
warm milk. And second, the ads showed parents
sleeping while children helped themselves to Cereal
Mates -- but the packaging was not child-friendly.
The confusion associated with Breakfast Mates led to
its ultimate failure.
Colgate Kitchen Entrees
The Brand Failures blog explains: In what must be one of
the most bizarre brand extensions ever Colgate
decided to use its name on a range of food products
called Colgate's Kitchen Entrees. Needless to say, the
products did not take off and never left U.S. soil. The
idea must have been that consumers would eat their
Colgate meal, then brush their teeth with Colgate
toothpaste. The trouble was that for most people the
name Colgate does not exactly get their taste buds
tingling.
Touch of Yogurt Shampoo
The Brand Failures blog says: The shampoo failed to
attract consumers (in 1979) largely because nobody
liked the idea of washing their hair with yogurt. Of
those who did buy it, there were even some cases of
people mistakenly eating it, and getting very ill as a
result. The "Touch of Yogurt" concept is made even more
remarkable because three years earlier Clairol
introduced a similar shampoo called the "Look of
Buttermilk." This product instantly bombed in test
markets where consumers were left asking: what
exactly is the "look of buttermilk" and why should I
want it?
A successful marketing strategy…
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Consider needs of consumers.
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Don’t assume – research!
Conclusion:
Step 1
• Study similarities and
differences
Step 2
• Identify target Market
Step 3
• With this information
develop a marketing mix
Activity
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Retired
Travelers
First time
Cruisers
Option 4
Families
With
small
children
Option 3
A Cruise Vacation Option 2
Option 1
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Couples
with no
children
Create a marketing mix (the 4 P’s) for one of the
above Cruise vacations.