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MARKETING STRATEGY
THE PURPOSE OF MARKETING
textbook definition: What is
Marketing?
CREATE
CAPTURE
SUSTAIN
VALUE
in order to make $$$
(profits)
AMERICAN MARKETING ASSOCIATION
DEFINITION of MARKETING
Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering,
and exchanging offerings that have VALUE for
customers, clients, partners, and society at large.
“Marketing is no longer a function—it is an
educational process.” (Pres. of AMA)
http://www.marketingpower.com/Pages/default.aspx
DEFINITION OF MARKETING
from “How to Become a Marketing Superstar”
• Identify---pre-sale
• Attract---pre sale
• Get---pre-sale
• Keep---post sale
CUSTOMERS!!!!
PRE-SALE
IDENTIFICATION
Market Research
ATTRACTION
Advertising
Online media
Packaging
Clean stores
Public relations
GETTING
Personal selling
Distribution
Pricing
Product
Service from salespeople
POST SALES
KEEPING
Delivery
Billing
Bill Collection
Customer Service
Warranty
Feedback from customers
EVERYBODY IN THE
COMPANYSHOULD BE THINKING
ABOUT MARKETING
Greeters
Truck loaders
Phone answerers
Designers
Engineers
Presidents
Quality control
Inventory
Accounting
Collections
HOW DOES A COMPANY DEFINE
ITSELF?
• NOT BY THE PRODUCT(S) or SERVICES it
SELLS, but by the
CUSTOMER BENEFITS PROVIDED
WHAT NEEDS ARE SATISFIED?
Product/Features
Market/Benefits
satisfies hunger, thirst, convenience needs
Feature
These boots have rubber
outsole with traction ribbing.
Sealed seams renders them
waterproof.
Benefit
Your feet won’t get wet if you
were these boots. You won’t
trip easily
• Feature
This accounting software has an online reporting
feature.
• Benefit
Managers have instant, real-time, mission-critical
information at a click of a button.
• Feature
This car has 6 side-impact bags.
• Benefit
You and your family will be protected from side
impact accidents.
http://biznik.com/articles/sales-101-features-vs-benefits
SALES VS. MARKETING
• MARKETING MAKES THE PHONE RING
• SALES ANSWERS IT
DIFFERENCES BETWEEN SALES &
MARKETING PEOPLE
• Marketing “Culture”
analytical
data-oriented
critical
inside the company
• Sales “Culture”
customer-oriented
relationship builders
make the sale today
SEGMENTATION
TARGETING
MARKETING
MARKETING STRATEGY
TWO MAJOR ACTIVITIES:
Selecting a TARGET MARKET
Specifying the plan to achieve POSITIONING
DEFINITION OF POSITIONING:
UNIQUE SELLING PROPOSITION
5 C’S OF MARKETING: ANALYSIS
• CUSTOMER
• COMPANY
• COMPETITION
• COLLABORATORS
• CONTEXT
TARGET MARKET
Move from
to
large mass markets
specification of smaller segments
“Market of one” → MASS CUSTOMIZATION
• EXAMPLES:
• BURGER KING
• RAYBAN
• Burger King Have it Your Way
• Ray-Ban Website
• Starbucks
SEGMENTATION
• HOW TO DIFFERENTIATE
• (DESCRIBE POTENTIAL CUSTOMERS—over 25, college
education, west coast)
• DEMOGRAPHIC -- age, income gender, occupation
• GEOGRAPHIC -- nation, region of country, urban vs. rural
• LIFESTYLE – value-oriented, hedonistic
ISSUES FOR SELECTING TARGET
MARKET
The target market sets the “rules of the game”
Strengths and weaknesses compared to
competition
Corporate goals
Resources
Collaborators
Financial Returns
POSITIONING
The positioning statement specifies the position the
firm wants to occupy in the target customers’ eyes.
http://www.youtube.com/watch?v=nX
a02tB8DLo
http://adland.tv/commercials/cokecoca-cola-happiness-machine-2010200-usa
STP
SEGMENTATION – identifying meaningfully different
groups of customers
TARGET – selecting which segments to serve
POSITIONING - implementing chosen image and
appeal to chosen segment
DISCUSS: What does it mean that “You can’t be all
things to all people.” How might that relate to profit?
EXAMPLES OF HOW TO SEGMENT
Most relevant variables to separate consumers to
help decide whom to target and how to target
them.
Example : Coca Cola must distinguish preferences
of soft drink consumers
Taste vs. low calories
Cola vs. non-cola taste
Price sensitivity—brand
Heavy vs. light consumers
CAMPBELL’S SOUP
What demographic variables would they need to
consider?
Region – Western U.S. consumer prefer spicier soups
Age --Little girls
GUN SALES
Flat sales? (no growth)
What can they do? Create a new segment! What
did they do?
Lady Remington