Marketing Strategy

Objectives

Positioning

Benefits of Strategy

Components of Strategy

Statement of objectives

Selection of strategic alternative(s)Selection of customer targets

Choice of competitor targets

Statement of core strategyDescription of supporting marketing mix

Description of supporting functional programs

Establish generaldirection of strategy

Positioning

Implementstrategy

Marketing Goals

• Desired general accomplishments stated in vague terms.

• Indicate the direction the firm is attempting to move and the set of priorities it will use in evaluating alternatives and making decisions.

• Should be attainable and realistic.

• Should be internally consistent.

• Should be comprehensive and help to clarify the roles of all parties in the organization.

• Should involve some degree of uncertainty.

Examples of Goals

• To have the largest, best-trained sales force in the industry.

• Having the best recognized and most effective advertising campaign in the industry.

Marketing Objectives

• Provide specific and quantitative benchmarks that can be used to gauge progress toward the achievement of the marketing goals for which they are developed.

• Should be attainable with a reasonable degree of effort.

• May be either continuous or discontinuous, depending on the degree to which they depart from present objectives.– Continuous: current objectives are similar

to those in previous planning period.– Discontinuous: establish new objective or

significantly elevate the level of performance on a given outcome factor

• Should specify the time frame for their completion.

• Usually related to sales revenues, market share, profitability, or cash flow

Examples of Objectives

• The marketing department will be responsible for having 40% of customers listing this financial institution as their primary financial institution within one year.

• The sales department will increase sales 18% during the next 2 years.

Strategic Alternatives: Growth

• Market development strategies– Attract non-users– Enter new markets

Attracting non-users

Enter new markets

• Market penetration strategies– Increase purchase rate of existing

customers– Attract competitors’ customers

Increasing purchase rate

Attracting competitors’ customers

Strategic Alternatives: Profitability

Strategic Alternatives: Cash Flow

Positioning

Differentiation

Core value proposition

Genericproduct

Expectedproduct

Augmentedproduct

Potentialproduct

Primaryneeds

Articulatedneeds

Excitingneeds