2 - 1 Chapter Chapter 2 2 A Strategic A Strategic Marketing Marketing Framework Framework 2 - 2 Key Learning Points Key Learning Points   Elements of a complete marketing Elements of a complete marketing strategy strategy   Developing a value proposition Developing a value proposition   Developing competitive advantage Developing competitive advantage   Positioning products and services Positioning products and services   The product life cycle and how it The product life cycle and how it affects marketing strategies affects marketing strategies 2 - 3 Figure 2-1: A Complete Marketing Strategy 2 - 4 Marketing Strategy Marketing Strategy   Objectives Objectives – – Mission statements describe the Mission statements describe the customer orientation or business customer orientation or business philosophy philosophy – – Corporate objectives state the Corporate objectives state the overall goals to be achieved in overall goals to be achieved in financial terms financial terms 2 - 5 Marketing Strategy Marketing Strategy   Characteristics of well Characteristics of well - - written written objectives: objectives: – – Lists a quantified standard of Lists a quantified standard of performance performance – – Designates a clear time frame Designates a clear time frame – – States goal in measurable terms States goal in measurable terms – – Should be challenging but realistic Should be challenging but realistic 2 - 6 Marketing Strategy Marketing Strategy   Customer and competitor targets Customer and competitor targets – – Which customer Which customer groups should groups should be targeted? be targeted? • • Begin by Begin by considering considering the strategic the strategic alternatives outlined in Figure 2.2 alternatives outlined in Figure 2.2 2 - 7 Figure 2-2: Strategic Alternatives 2 - 8 Marketing Strategy Marketing Strategy   Market Market Penetration Penetration   Market Market Development Development   Targeting the Targeting the company company ’ ’ s own s own customers customers – – Should be a high priority Should be a high priority   Targeting competitor Targeting competitor ’ ’ s s customers customers – – Riskier and more Riskier and more expensive strategy expensive strategy – – Common in slow growth Common in slow growth markets markets – – Price promotions are key Price promotions are key Key Strategies Key Strategies 2 - 9 Marketing Strategy Marketing Strategy   Market Market Penetration Penetration   Market Market Development Development   Targeting Targeting nonbuying nonbuying customers in currently customers in currently targeted segments targeted segments – – Is it profitable? Is it profitable?   Targeting new Targeting new customers in new customers in new segments segments – – Will it require the Will it require the introduction of new or introduction of new or modified products? modified products? Key Strategies Key Strategies 2 - 10 Marketing Strategy Marketing Strategy   Market Development Strategies: Market Development Strategies: Entering Foreign Markets Entering Foreign Markets – – Requires decisions related to: Requires decisions related to: • • The choice of country or countries to enter The choice of country or countries to enter • • The timing of the entry The timing of the entry • • How to operate in the chosen countries How to operate in the chosen countries – – Five factors should be considered when Five factors should be considered when deciding how to enter a foreign market deciding how to enter a foreign market [...]... in some fashion? Explain 2 - 14 Marketing Strategy Core Strategy The Value Proposition Differentiation Product Positioning 2 - 15 Marketing Strategy Core Strategy The Value Proposition Differentiation Product Positioning Summarizes into a single paragraph: – The customer – The competitive targets – The customer’s reason for buying your brand Forms the basis for the marketing mix 2 - 16 Product & Service... Value Chain Inbound Outbound Logistics Logistics Operational Marketing Advantages and Sales Service 2 - 23 Marketing Strategy Perceived Quality or Brand-Based Differentiation – Perceptual product differences are often used for differentiation when actual differences are small, hard to achieve, or difficult to sustain – Price, distribution, and marketing communications can all contribute to brandbased... Winer 2 - 26 Marketing Strategy Core Strategy The Value Proposition Differentiation Product Positioning Positioning creates a clear image in the mind of the consumer of what the product stands for and how it is different from competitive offerings Involves both actual and perceived differential advantages Repositioning can be difficult for high awareness brands 2 - 27 Marketing Strategy Marketing Mix... Product Life Cycle Marketing Strategies Conceptual tool best applied to product categories rather than specific brands Strategy options and the importance of marketing mix variables vary across each stage of the PLC Not all product categories follow the standard PLC curve – See Figure 2.9 2 - 32 Figure 2-9: The Product Life Cycle: Videocassette Recorders 2 - 33 Product Life Cycle Marketing Strategies...2 - 11 Marketing Strategy Product Features – After formulating objectives and determining customer and competitor targets, the next key decision is to select the specific features to include in the product 2 - 12 Marketing Strategy Product Features – Different features are often used to attract different segments... targets), (statement of primary differentiation) 2 - 17 Marketing Strategy Core Strategy The Value Proposition Differentiation Product Positioning Competitive advantages (CA) should have three characteristics: – CA should generate customer value – Increased value must be perceived by the consumer – CA should be difficult to copy 2 - 18 Product & Service Marketing Strategy Decisions General Key Decisions... 2-4: Learning Curves for Software and Hardware 2 - 21 Marketing Strategy Quality-Based Differentiation – Development of an observable difference that is valued by customers • Typically implies higher costs • Allows for both higher prices and higher margins – Differentiation can occur at any point within the value chain 2 - 22 Product & Service Marketing Strategy Decisions Differentiation Opportunities... 2 - 34 Product Life Cycle Marketing Strategies Stage of PLC Introduction Growth Maturity Decline Characteristics: – – – Growing competition Price pressure Market segmentation Key strategic issues: – Market leader • Fight or flee – Market follower • • • • Exit market and reinvest Imitate leader’s product Fortify current position Leapfrog competition 2 - 35 Product Life Cycle Marketing Strategies Stage... Decisions General Key Decisions Approaches to Creating Competitive Advantage Cost- or price-based advantage Quality-based or differentiation advantage Perceived quality or brandbased advantage 2 - 19 Marketing Strategy Cost- or Price-Based Advantage – Difficult to achieve – Two primary methods of creating a cost- or price-based advantage: • Being the largest producer and benefiting from economies of... competitive offerings Involves both actual and perceived differential advantages Repositioning can be difficult for high awareness brands 2 - 27 Marketing Strategy Marketing Mix – Implementation of the marketing mix makes the strategy operational – Consistency between strategy and the actual implementation is critical 2 - 28 Product & Service Decisions headline, The “Travel to Asia and Awaken Your Senses,” . how it affects marketing strategies affects marketing strategies 2 - 3 Figure 2-1: A Complete Marketing Strategy 2 - 4 Marketing Strategy Marketing Strategy   Objectives Objectives – – Mission. 2 - 1 Chapter Chapter 2 2 A Strategic A Strategic Marketing Marketing Framework Framework 2 - 2 Key Learning