GLOBAL MARKETING Marketing Strategy. Benefits of Strategy Coordinates activities among functional...
Transcript of GLOBAL MARKETING Marketing Strategy. Benefits of Strategy Coordinates activities among functional...
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GLOBAL MARKETING
Marketing Strategy
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Benefits of Strategy
• Coordinates activities among functional areas of organization
• Defines resource allocation
• Leads to a superior market position
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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
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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.
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• 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.
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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.
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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.
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• Should specify the time frame for their completion.
• Usually related to sales revenues, market share, profitability, or cash flow
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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.
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Strategic Alternatives: Growth
• Market development strategies– Attract non-users– Enter new markets
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Attracting non-users
• Increase willingness to buy– Demonstrate benefits of product form– Develop new product forms with desired benefits
• Increasing ability to buy– Offer lower prices or credit– Provide greater availability
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Enter new markets
• Broaden distribution– Move into new geographic markets– Add channels of distribution
• Product-line extension– Vertical product line extension– Horizontal product line extension
• Expansion through acquisition or diversification
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• Market penetration strategies– Increase purchase rate of existing customers– Attract competitors’ customers
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Increasing purchase rate
• Broaden usage– Provide examples of additional uses of product
• Increase consumption levels– Lower prices, special-volume packaging– Improve buyers’ perceptions of product benefits
• Increase rate of replacement– Improve benefits, e.g., convenience, lower operating
costs, that encourage early replacement
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Attracting competitors’ customers
• Head-to-head competition– Superior marketing effort
• Quality, selection, availability, brand name recognition
– Price-cost leadership• Offer comparable quality at lower price
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• Differentiation– adding a set of meaningful and valued
differences to distinguish the firm’s offering from competitors’ offerings
– Criteria:• important • preemptive• distinctive • affordable• superior • profitable
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• Differentiation Variables
Product Services Personnel Channel Image
Form Ordering ease Competence Coverage Symbols
Features Delivery Courtesy Expertise Media
Performance Installation Credibility Performance Atmosphere
Conformance Customer training Reliability Events
Durability Customer consulting
Responsiveness
Reliability Maintenance & repair
Communication
Repairability Miscellaneous
Style
Design
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Strategic Alternatives: Profitability
• Maintain satisfaction– Consistent, high quality– Effective customer complaint system
• Build strong customer relationships– Encourage repeat business through formal
relationships– Target best customers
• Develop complementary products– Increase dependence on firm
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• Decrease costs/increase efficiencies
• Increase price
• Decrease product offerings/emphasize selling of most profitable products
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Strategic Alternatives: Cash Flow
• Harvest market position– Systematically raise prices and reduce
marketing expenses to capitalize on ST performance opportunities
• Divest market position– Sell firm– Close down operation and sell assets
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Implications of Product Life Cycle on Marketing Strategy
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Introduction Stage
• Objective: Create awareness and product trialProduct—offer a basic product
Price—charge cost-plus
Distribution—selective
Communications—target advertising to early adopters and dealers to increase awareness; heavy sales promotion to stimulate trial
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Growth Stage
• Objective: Maximize market share
Product—product extensions, warranties
Price—decrease prices to penetrate
Distribution—intensive
Communications—target advertising to mass market to increase awareness; reduce sales promotions
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Maturity Stage
• Objective: Maximize profit while defending market shareProduct—diversify products and brands
Price—match or best competitors’ prices
Distribution—more intensive
Communications—use advertising to stress brand differences and benefits; increase sales promotions to encourage brand switching
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Decline Stage
• Objective: Reduce expenditure and milk the brandProduct—phase out weak models
Price—cut price
Distribution—selective; phase out unprofitable outlets
Communications—reduce and target hard-core loyals; reduce sales promotions to minimal levels