Transcript Developing a Market Strategy

MARKETING
STRATEGIES
Developing a Market Strategy

Costly and Important
50%
or more of the selling price

Carefully planned

Meet customer needs

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
• Step 1: Identify the
target market
• Step 2: Develop a
Marketing Mix
Target Market
• Aim to Broad
▫ Too many unhappy people
▫ Customers don’t like product
▫ Waste money
• Specific aim
▫ Much easier to please customers
Activity
snowmobile
Flashlight - cranks
Tool Set
Honda Odyssey
Laptop Computer
New Jordan Shoes
Panda Car (for kids)
Marketing Mix
• Blending of 4 elements
– Product
– Place
– Price
– Promotion
Product
•
•
•
•
•
•
•
•
•
Brand Name
Functionality
Styling
Quality
Safety
Packaging
Repairs and Support
Warranty
Accessories and Services
Place
•
•
•
•
•
•
•
•
•
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
• Promotional
strategy
• Advertising
• Personal selling &
sales force
• Sales promotions
• Public relations and
publicity
• Marketing
communications
budget
Promotion
Where do Companies go wrong
• 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
• 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-millionsubscriber 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?
How to develop a
successful marketing strategy
Consider needs of consumers.
Don’t assume – research!
Step 1
• Study similarities and
differences
Step 2
• Identify target Market
Step 3
• With this information
develop a marketing mix