* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download (PPT, 386KB)
Market penetration wikipedia , lookup
Bayesian inference in marketing wikipedia , lookup
Pricing strategies wikipedia , lookup
Neuromarketing wikipedia , lookup
Product planning wikipedia , lookup
Food marketing wikipedia , lookup
Affiliate marketing wikipedia , lookup
Marketing communications wikipedia , lookup
Marketing research wikipedia , lookup
Target audience wikipedia , lookup
Ambush marketing wikipedia , lookup
Visual merchandising wikipedia , lookup
Youth marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Digital marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Sports marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Target market wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Direct marketing wikipedia , lookup
Supermarket wikipedia , lookup
Advertising campaign wikipedia , lookup
Marketing plan wikipedia , lookup
Green marketing wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Sensory branding wikipedia , lookup
Global marketing wikipedia , lookup
Street marketing wikipedia , lookup
• Marketing Strategy https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing Marketing strategy The field of marketing strategy considers the total marketing environment and its impacts on a company or product or service. The emphasis is on "an in depth understanding of the market environment, particularly the competitors and customers." 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing Marketing strategy 1 Listed below are some prominent marketing strategy models. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing Marketing strategy 1 A marketing strategy differs from a marketing tactic in that a strategy looks at the longer term view of the products, goods, or services being marketed. A tactic refers to a shorter term view. Therefore, the mailing of a postcard or sales letter would be a tactic, but changing marketing channels of distribution, changing the pricing, or promotional elements used would be considered a strategic change. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing ethics - Marketing strategy 1 The main theoretical issue here is the debate between free markets and regulated markets. In a truly free market, any participant can make or change the rules. However when new rules are invented which shift power too suddenly or too far, other participants may respond with accusations of unethical behaviour, rather than modifying their own behaviour to suit (which they might not be able to anyway). Most markets are not fully free: the real debate is as to the appropriate extent of regulation. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing ethics - Marketing strategy 1 Case: California electricity crisis, which demonstrates how constant innovation of new marketing strategies by companies such as Enron outwitted the regulatory bodies and caused substantial harm to consumers and competitors. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing ethics - Marketing strategy 1 A list of known unethical or controversial marketing strategies: https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing management - Marketing strategy To achieve the desired objectives, marketers typically identify one or more target customer segments which they intend to pursue 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing management - Marketing strategy The implication of selecting target segments is that the business will subsequently allocate more resources to acquire and retain customers in the target segment(s) than it will for other, nontargeted customers 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing management - Marketing strategy 1 In conjunction with targeting decisions, marketing managers will identify the desired positioning they want the company, product, or brand to occupy in the target customer's mind https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing management - Marketing strategy Ideally, a firm's positioning can be maintained over a long period of time because the company possesses, or can develop, some form of sustainable competitive advantage 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy 1 Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of marketoriented strategies and therefore contribute to the goals of the company and its marketing objectives. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Developing a marketing strategy 1 Marketing strategy needs to take a long term view, and tools such as customer lifetime value models can be very powerful in helping to simulate the effects of strategy on acquisition, revenue per customer and churn rate. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Developing a marketing strategy A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Developing a marketing strategy Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation. A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Developing a marketing strategy 1 Marketing Mix Modeling is often used to help determine the optimal marketing budget and how to allocate across the marketing mix to achieve these strategic goals. Moreover, such models can help allocate spend across a portfolio of brands and manage brands to create value. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below: 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies 1 Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies: https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies According to Shaw, Eric (2012). Marketing Strategy: From the Origin of the Concept to the Development of a Conceptual Framework. Journal of Historical Research in Marketing., there is a framework for marketing strategies. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies 1 Market introduction strategies https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies "At introduction, the marketing strategist has two principle strategies to choose from: penetration or niche" (47). 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies 1 "In maturity, sales growth slows, stabilizes and starts to decline. In early maturity, it is common to employ a maintenance strategy (BCG), where the firm maintains or holds a stable marketing mix" (48). https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies At some point the decline in sales approaches and then begins to exceed costs. And not just accounting costs, there are hidden costs as well; as Kotler (1965, p. 109) observed: 'No financial accounting can adequately convey all the hidden costs.' At some point, with declining sales and rising costs, a harvesting strategy becomes unprofitable and a divesting strategy necessary" (49). 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies "In his classic Harvard Business Review (HBR) article of the marketing mix, Borden (1964) credits James Culliton in 1948 with describing the marketing executive as a 'decider' and a 'mixer of ingredients.' This led Borden, in the early 1950s, to the insight that what this mixer of ingredients was deciding upon was a 'marketing mix'" (34). 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies "In product differentiation, according to Smith (1956, p 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies "With skimming, a firm introduces a product with a high price and after milking the least price sensitive segment, gradually reduces price, in a stepwise fashion, tapping effective demand at each price level. With penetration pricing a firm continues its initial low price from introduction to rapidly capture sales and market share, but with lower profit margins than skimming" (37). 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies "The PLC does not offer marketing strategies, per se; rather it provides an overarching framework from which to choose among various strategic alternatives" (38). 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies 1 "Although widely used in marketing strategy, SWOT (also known as TOWS) Analysis originated in corporate strategy. The SWOT concept, if not the acronym, is the work of Kenneth R. Andrews who is credited with writing the text portion of the classic: Business Policy: Text and Cases (Learned et al., 1965)" (41). https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies "The most well-known, and least often attributed, aspect of Igor Ansoff’s Growth Strategies in the marketing literature is the term 'product-market.' The product-market concept results from Ansoff juxtaposing new and existing products with new and existing markets in a two by two matrix" (41-42). 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies 1 Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies 1 These ways of growth are termed as organic growth https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Types of strategies BCG’s “growth-share portfolio matrix” "Based on his work with experience curves (that also provides the rationale for Porter’s low cost leadership strategy), the growth-share matrix was originally created by Bruce D 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Strategic models 1 Marketing participants often employ strategic models and tools to analyze marketing decisions https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Strategic models 1 There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer, Shopper & Retailer needs https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Real-life marketing Real-life marketing primarily revolves around the application of a great deal of common-sense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Real-life marketing 1 Thus, for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst nonrunners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategy - Real-life marketing 1 The marketing strategy is the foundation of a marketing plan. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy Department stores — very large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy Discount stores — tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally, retailers sell less fashion-oriented brands. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy 1 Warehouse stores — warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee; https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy 1 Demographic — retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals). https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy 1 Mom-And-Pop — a small retail outlet owned and operated by an individual or family. Focuses on a relatively limited and selective set of products. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy Specialty stores — a typical speciality store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy 1 Boutiques or Concept stores — similar to specialty stores. Concept stores are very small in size, and only ever stock one brand. They are run by the brand that controls them. An example of brand that distributes largely through their own widely distributed concept stores is L'OCCITANE en Provence. The limited size and offering of L'OCCITANE's stores are too small to be considered a specialty store proper. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy 1 General store — a rural store that supplies the main needs for the local community; https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy 1 Convenience stores — essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases as it often works with extended hours, stocking everyday; https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy Hypermarkets — provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy Supermarkets — a self-service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and 40,000 square feet (3,700 m2). Example: SPAR supermarket. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy 1 Malls — has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy 1 Category killers or Category Specialist — by supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy 1 E-tailers — the customer can shop and order through internet and the merchandise are dropped at the customer's doorstep https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retail - Types by marketing strategy 1 Vending Machines — this is an automated piece of equipment wherein customers can drop the money in the machine and acquire the products. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy 1 * Department stores — very large stores offering a huge assortment of soft and hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy 1 * Discount stores — tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally, retailers sell less fashion-oriented brands. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy 1 * Warehouse stores — warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee; https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy 1 * Demographic — retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals). https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy * Mom-And-Pop — a small retail outlet owned and operated by an individual or family. Focuses on a relatively limited and selective set of products. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy 1 * Specialty stores — a typical speciality store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap (retail store)|Gap store then they find just https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy * Boutiques or Concept stores — similar to specialty stores. Concept stores are very small in size, and only ever stock one brand. They are run by the brand that controls them. An example of brand that distributes largely through their own widely distributed concept stores is L'Occitane en Provence|L'OCCITANE en Provence. The limited size and 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy 1 * General store — a rural store that supplies the main needs for the local community; https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy 1 *Convenience stores — essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases as it often works with extended hours, stocking everyday; https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy *Hypermarkets — provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy 1 *Supermarkets — a self-service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an Everyday low price|EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and . Example: SPAR supermarket. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy 1 *Shopping Mall|Malls — has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy 1 *Category killers or Category Specialist — by supplying wide assortment in a single category for lower prices a retailer can kill that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy 1 *E-tailers — the customer can shop and order through internet and the merchandise are dropped at the customer's doorstep https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailer - Types by marketing strategy *Vending Machines — this is an automated piece of equipment wherein customers can drop the money in the machine and acquire the products. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Tata Global Beverages - Marketing strategy In spite of a global presence, the brands are distributed differently depending on the location. As Tata tea is far better known in India and a powerful brand there, it is pushed on this market and countries with a large Indian population. Therefore, Tetley is the company's global face and the largest markets focus on the Tetley brand. Where both brands co-exist in one market, Tetley is positioned as the premium brand. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing campaign - Marketing strategy 1 The field of marketing strategy considers the total marketing environment and its impacts on a company or product or service. The emphasis is on an in depth understanding of the market environment, particularly the competitors and customers.Developing Business Strategies, David A. Acker, John Wiley and Sons, 1988 https://store.theartofservice.com/the-marketing-strategy-toolkit.html SEO - As a marketing strategy SEO is not an appropriate strategy for every website, and other Internet marketing strategies can be more effective like paid advertising through PPC campaigns, depending on the site operator's goals. A successful Internet marketing campaign may also depend upon building high quality web pages to engage and persuade, setting up web analytics|analytics programs to enable site 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html SEO - As a marketing strategy 1 SEO may generate an adequate return on investment https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) 1 'Diversification' is a corporate strategy to increase sales volume from new products and new markets. Diversification can be expanding into a new segment of an industry that the business is already in, or investing in a promising business outside of the scope of the existing business. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) Diversification is part of the four main growth strategies defined by Igor Ansoff's Product/Market matrix:Ansoff, I.: Strategies for Diversification, Harvard Business Review, Vol. 35 Issue 5,Sep-Oct 1957, pp. 113-124 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, whereas diversification usually requires a company to acquire new skills, new techniques and new facilities. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) 'Note:' The notion of diversification depends on the subjective interpretation of “new” market and “new” product, which should reflect the perceptions of customers rather than managers. Indeed, products tend to create or stimulate new markets; new markets promote product innovation. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) Product diversification involves addition of new products to existing products either being manufactured or being marketed 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - The different types of diversification strategies The strategies of diversification can include internal development of new products or markets, acquisition of a firm, Business alliance|alliance with a complementary company, license|licensing of new technologies, and distributing or importing a Product lining|products line manufactured by another firm 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Concentric diversification This means that there is a technological similarity between the industries, which means that the firm is able to leverage its technical knowhow to gain some advantage. For example, a company that manufactures industrial adhesives might decide to diversify into adhesives to be sold via retailers. The technology would be the same but the 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Concentric diversification It also seems to increase its market share to launch a new product that helps the particular company to earn profit. For instance, the addition of tomato ketchup and sauce to the existing Maggi brand processed items of Food Specialities Ltd. is an example of technological-related concentric diversification. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Concentric diversification 1 The company could seek new products that hav e technological or marketing synergies with https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Concentric diversification 1 existing product lines appealing to a new group of customers.This also helps the company to tap that part of the market which remains untapped, and which presents an opportunity to earn profit.. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Horizontal diversification The company adds new products or services that are often technologically or commercially unrelated to current products but that may appeal to current customers. This strategy 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Horizontal diversification tends to increase the firm's dependence on certain market segments. For example, a company that was making notebooks earlier may also enter the pen market with its new product. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - When is Horizontal diversification desirable? 1 Horizontal diversification is desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced. Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity and instability. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Another interpretation 1 Horizontal integration occurs when a firm enters a new business (either related or unrelated) at the same stage of production as its current operations https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Conglomerate diversification (or lateral diversification) 1 The company markets new products or services that have no technological or commercial synergies with current products but that may appeal to new groups of customers https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Goal of diversification According to Calori and Harvatopoulos (1988), there are two dimensions of rationale for diversification. The first one relates to the nature of the strategic objective: Diversification may be defensive or offensive. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Goal of diversification 1 Defensive reasons may be spreading the risk of market contraction, or being forced to diversify when current product or current market orientation seems to provide no further opportunities for growth. Offensive reasons may be conquering new positions, taking opportunities that promise greater profitability than expansion opportunities, or using https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Goal of diversification The second dimension involves the expected outcomes of diversification: Management may expect great economic value (growth, profitability) or first and foremost great coherence and complementary to their current activities (exploitation of know-how, more efficient use of available resources and capacities). 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Goal of diversification 1 In addition, companies may also explore diversification just to get a valuable comparison between this strategy and expansion. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Risks Of the four strategies presented in the Ansoff matrix, Diversification has the highest level of risk and requires the most careful investigation 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Risks 1 In order to measure the chances of success, different tests can be done: https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Risks 1 *The attractiveness test: the industry that has been chosen has to be either attractive or capable of being made attractive. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Risks 1 *The cost-of-entry test: the cost of entry must not capitalize all future profits. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Risks 1 *The better-off test: the new unit must either gain competitive advantage from its link with the corporation or vice versa. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Risks 1 Because of the high risks explained above, many companies attempting to diversify have led to failure. However, there are a few good examples of successful diversification: https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Risks 1 *Virgin Group moved from music production to travel and mobile phones https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Risks *The Walt Disney Company|Walt Disney moved from producing animated movies to theme parks and vacation properties 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Diversification (marketing strategy) - Risks 1 *Canon (company)|Canon diversified from a camera-making company into producing an entirely new range of office equipment. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailing - Types by marketing strategy 1 Department stores are very large stores offering a huge assortment of soft and hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailing - Types by marketing strategy 1 Discount stores tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally, retailers sell less fashionoriented brands. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailing - Types by marketing strategy A specialty (British English|BE: speciality) store has a narrow marketing focus - either specializing on specific merchandise, such as toys, shoes, or clothing, or on a target audience, such as children, tourists, or oversize women 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailing - Types by marketing strategy Boutique or concept stores — similar to specialty stores. Concept stores are very small in size, and only ever stock one brand. They are run by the brand that controls them. An example of brand that distributes largely through their own widely distributed concept stores is L'Occitane en Provence|L'OCCITANE en Provence. The limited size and offering of L'OCCITANE's stores are too small to be considered a 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailing - Types by marketing strategy 1 A general store is a rural store that supplies the main needs for the local community; https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailing - Types by marketing strategy 1 A convenience store is typically found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases as it often works with extended hours, stocking everyday; https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailing - Types by marketing strategy 1 A supermarket is a self-service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an Everyday low price|EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and . Example: SPAR supermarket. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailing - Types by marketing strategy A shopping mall has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailing - Types by marketing strategy 1 By supplying wide assortment in a single category for lower prices a category killer retailer can kill that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailing - Types by marketing strategy 1 The customer can shop and order through the internet and the merchandise is dropped at the customer's doorstep or an e-tailer https://store.theartofservice.com/the-marketing-strategy-toolkit.html Retailing - Types by marketing strategy 1 A vending machine is an automated piece of equipment wherein customers can drop the money in the machine and acquire the products. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Specialty store - Types by marketing strategy 1 Boutique or concept stores are similar to specialty stores. Concept stores are very small in size, and only ever stock one brand. They are run by the brand that controls them. An example of brand that distributes largely through their own widely distributed concept stores is L'Occitane en Provence|L'OCCITANE en Provence. The limited size and offering of https://store.theartofservice.com/the-marketing-strategy-toolkit.html Specialty store - Types by marketing strategy A convenience store provides limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases as it often works with extended hours, stocking everyday; 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Specialty store - Types by marketing strategy A shopping mall has a range of retail shops at a single outlet. They can include products, food and entertainment under one roof. Malls provide 7% of retail revenue in India, 10% in Vietnam, 25% in China, 28% in Indonesia, 39% in the Philippines, and 45% in Thailand. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Search engine optimisation - As a marketing strategy 1 SEO is not an appropriate strategy for every website, and other Internet marketing strategies can be more effective like paid advertising through pay per click Pay_per_click|(PPC) campaigns, depending on the site operator's goals. A successful Internet marketing campaign may also depend upon building high quality web pages to engage and persuade, setting up web analytics|analytics programs to enable site owners to measure results, and improving a site's conversion rate. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Secret brand - Marketing Strategy 1 The idea of a secret brand works off of one or more of three economic principles. The first is scarcity value. The secret brand creates products with highly specific, unique qualities, usually very subtle and invisible to the casual observer. These qualities do not necessarily improve the performance of the product and can be inefficiencies (i.e. using heavy weight denim for https://store.theartofservice.com/the-marketing-strategy-toolkit.html Secret brand - Marketing Strategy 1 The second principle is Brand management|brandi ng https://store.theartofservice.com/the-marketing-strategy-toolkit.html Secret brand - Marketing Strategy The third principle is experimentation. Openly announcing new products often affects stock values in publicly traded companies. If a company is unsure of the real world appeal of a product, it may employ a secret brand to experiment with market reaction on a small scale. This technique may be used after inconclusive focus group results (i.e. the majority somewhat dislike the product, while the minority is highly 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing objectives - Marketing strategy A marketing strategy considers the resources a firm has, or is required to allocate in effort to achieve an objective. Marketing Strategies include the process and planning in which a firm may be expected to achieve their company goals, in which usually involves an effort to increase revenues or assets, through a series of milestones or Benchmarking|benchmarks of business and promotional activities. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Target markets - Differentiated marketing strategy One where the company decides to provide separate offerings to each different market segment that it targets. It is also called multisegment marketing and as is clearly seen that it tries to appeal to multiple segments in the market. Each segment is targeted uniquely as the company provides unique benefits to different segments. It increases the total sales but at the expense of increase in the cost of investing in the business. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Multicultural marketing - Creating a multicultural marketing strategy Multicultural marketing focuses on customizing messaging and marketing channels for each target group, as opposed to simply translating a general message into different languages, or including token representation of different ethnic groups in imagery. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Multicultural marketing - Creating a multicultural marketing strategy 1 Multicultural marketing is also complicated by the degree of mainstream cultural assimilation within ethnic groups themselves. Some segments, such as recent immigrants, may highly prefer use of their mother tongue, have limited proficiency in the local language, and be highly geographically concentrated. Other groups, such as second-generation individuals born in the new homeland, may https://store.theartofservice.com/the-marketing-strategy-toolkit.html Multicultural marketing - Creating a multicultural marketing strategy 1 An ethnic marketing strategy is developed around the values and attitudes distinctive to a particular ethnic group, and generally includes the following aspects: https://store.theartofservice.com/the-marketing-strategy-toolkit.html Multicultural marketing - Creating a multicultural marketing strategy 1 * Identification and collaboration with community leaders https://store.theartofservice.com/the-marketing-strategy-toolkit.html Multicultural marketing - Creating a multicultural marketing strategy 1 * The promotion of culture, symbols and celebrations important to a precise target https://store.theartofservice.com/the-marketing-strategy-toolkit.html Multicultural marketing - Creating a multicultural marketing strategy 1 * Enhancing and focusing on the cultural uniqueness of ethnic group https://store.theartofservice.com/the-marketing-strategy-toolkit.html Multicultural marketing - Creating a multicultural marketing strategy 1 1) Understand cultural differences in communication patterns, values, and behavior in the target ethnicities. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Multicultural marketing - Creating a multicultural marketing strategy 1 2) Assess cultural affinity among ethnic audiences. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Multicultural marketing - Creating a multicultural marketing strategy 3) Segment the ethnic audiences based on the level of cultural affinity, 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Multicultural marketing - Creating a multicultural marketing strategy 1 4) Evaluate the need for adjustments in strategy and tactics. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Multicultural marketing - Creating a multicultural marketing strategy 5) Explore culturally acceptable/unacceptable, sensitive/insensitive advertising messages among the identified segments, 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Multicultural marketing - Creating a multicultural marketing strategy 1 7) Evaluate the effectiveness of advertising campaigns among different target segments. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Budweiser - 2011 can design marketing strategy 1 Traditional Budweiser cans embodied a strong sense of American patriotism https://store.theartofservice.com/the-marketing-strategy-toolkit.html Budweiser - 2011 can design marketing strategy This change in can design was very shocking for a brand that had remained relatively static since its beginning 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Budweiser - 2011 can design marketing strategy Although the more modern design is intended for young male Americans, the new design, according to the vice president of Anheuser-Busch Frank Abernante, is one of many steps in our quest to reinforce Budweiser's role as a truly global beer brand. This statement means that the new design was intended for foreign markets as well. In fact, Budweiser began selling its beer in Russia 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Budweiser - 2011 can design marketing strategy Statistics show that China is the world's leading consumer of beer in terms of volume, which suggests that Budweiser is trying to capitalize on this market's potential in order to recover from these losses 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Budweiser - 2011 can design marketing strategy The company hoped that the new design would appeal to a younger crowd in the American market, while simultaneously gaining the interest of Chinese consumers 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy 1 Data from the study is used to craft strategies in strategic management and marketing strategies|marketing strategy https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy 1 According to Lancaster, Massingham and Ashford (Essentials of Marketing, 4th edition, McGraw Hill), PIMS seeks to address three basic questions: https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy 1 * What is the typical profit rate for each type of business? https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy 1 * Given current strategies in a company, what are the future operating results likely to be? https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy 1 * What strategies are likely to help improve future operating results? https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy Dibb, Simkin, Pride and Ferrell (Marketing Concepts and Strategies, 4th European edition, Houghton Mifflin) cite six principal areas of information that PIMS holds on each business: 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy 1 * characteristics of the business environment https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy 1 * how the budget is allocated https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy 1 * operating results. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Brief history of PIMS 1 The PIMS project was started by Sidney Schoeffler working at General Electric in the 1960s, managed by the Marketing Science Institute in the early 1970s, and has been administered by the American Strategic Planning Institute since 1975. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Brief history of PIMS 1 It was initiated by senior managers at GE who wanted to know why some of their business units were more profitable than the others. With the help of Sidney Schoeffler they set up a research project in which each of their strategic business units reported their performance on dozens of variables. This was then expanded to outside companies in the early 1970s. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Brief history of PIMS 1 The initial survey, between 1970 and 1983, involved 2,600 strategic business units (SBU), from 200 companies. Today 12,500 observations exist for 4162 SBU's; PIMS is managed by PIMS Associates in London. Each SBU give information on the market within which they operated, the products they had brought to market and the efficacy of the strategies they https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Brief history of PIMS 1 The PIMS project analysed the data they had gathered to identify the options, problems, resources and opportunities faced by each SBU. Based on the spread of each business across different industries, it was hoped that the data could be drawn upon to provide other business, in the same industry, with empirical evidence of which strategies lead to increased profitability. The database continues to be updated and drawn upon by academics and companies today. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Conclusions drawn by PIMS 1 The original PIMS data survey led the PIMS project to identify 37 variables which account for the majority of business success. Two leading marketing texts differ slightly on which variables are the most important, with Dibb, Simkin, Pride and Ferrell (p676) identifying: https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Conclusions drawn by PIMS 1 * lower requirement for capital investment https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Conclusions drawn by PIMS While many of these seem obvious, PIMS has the advantage of providing empirical data that define quantitative relationships and back what some may consider to be common-sense. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits PIMS evaluated businesses' market position and suggest possible strategies, based on the data gathered from participating companies. Businesses wishing to use the service provide detailed information, including details of their: 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits 1 * assumptions about future sales. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits 1 In return, PIMS provides four reports, described by Lancaster, Massingham and Ashford as: https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits 1. A 'Par' report - showing the ROI and cash flows that are 'normal' for this type of business, given its market, competition, technology, and cost structure. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits 2. A 'Strategy Analysis' report, which computes the predicted consequences of each of several alternative strategic actions, judged by information in similar businesses making similar moves, from a similar starting-point and in a similar business environment. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits 1 3. A 'Report on Look-Alikes' (ROLA), which aimed at predicting the best combination of strategies for that particular company, by analysing strategically similar business more closely. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits 1 4. An 'Optimus Strategy' report, which is aimed at predicting the best combination of strategies for that particular company, again based on the experiences of other businesses in 'similar' circumstances. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - A critique of PIMS 1 Clearly, it could be argued that a database operating on information gathered in the period 1970 - 1983 is outdated. However data continues to be collected from participating companies and PIMS argues that it provides a unique source of timeseries data, the conclusions from which have proven to be very stable over time. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - A critique of PIMS 1 It has also been suggested that PIMS is too heavily biased towards traditional, metal-bashing industries, such as car manufacturing; perhaps not surprising, considering the era in which the majority of the surveys were carried out. In reality, as of 2006, the 3,800+ businesses contained within the database includes data from the consumer, industrial and service sectors. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - A critique of PIMS 1 It is also heavily weighted towards large companies, at the expense of small entrepreneurial firms https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - A critique of PIMS A serious theoretical criticism has also been mentioned. An empirical correlation does not necessarily imply cause. There is no way of knowing whether high market share caused the high Profit (accounting)|profitability, or whether high profitability caused the high market share. Or even more likely, a spurious factor such as product quality could have caused both high profitability and high market share. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Profit impact of marketing strategy - A critique of PIMS Tellis and Golder (1996) claim that PIMS defines markets too narrowly. Respondents described their market very narrowly to give the appearance of high market share. They believe that this self reporting bias makes the conclusions suspect. They are also concerned that no defunct companies were included, leading to survivor bias. 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategies - Developing a marketing strategy 1 Marketing strategy needs to take a long term view, and tools such as customer lifetime value models can be very powerful in helping to simulate the effects of strategy on acquisition, revenue per customer and churn rate. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategies - Developing a marketing strategy 1 A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.Baker, Michael The Strategic Marketing Plan Audit 2008 ISBN 1902433-99-8 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Marketing strategies - Developing a marketing strategy 1 Once a thorough environmental scan is complete, a strategic planning|strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation. A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan. https://store.theartofservice.com/the-marketing-strategy-toolkit.html JetBlue - Marketing strategy 1 JetBlue’s first major advertising campaign incorporated phrases like “Unbelievable” and “We like you, too” https://store.theartofservice.com/the-marketing-strategy-toolkit.html JetBlue - Marketing strategy 1 As JetBlue gained market share, they found a unique positioning where they competed with other low-cost carriers (i.e https://store.theartofservice.com/the-marketing-strategy-toolkit.html JetBlue - Marketing strategy During the company’s growth stage, advertising messages moved from the engaging and customer oriented to less personal slogans and campaigns. Frequent changes in its values statements resulted in mixed and frequently wasted marketing dollars spent. Slogans varied from “More” to “Happy Jetting” and many other failed attempts.[http://www.jetblue.com/about/ 1 https://store.theartofservice.com/the-marketing-strategy-toolkit.html JetBlue - Marketing strategy 1 A new marketing strategy has been partnerships with professional sports teams and venues https://store.theartofservice.com/the-marketing-strategy-toolkit.html JetBlue - Marketing strategy 1 JetBlue also utilizes various forms of advertising media https://store.theartofservice.com/the-marketing-strategy-toolkit.html JetBlue - Marketing strategy 1 According to Martin St. George, senior vice president of marketing and commercial strategy at JetBlue, the new “You Above All” campaign was created to get JetBlue back to their “DNA” and speak to the “core of who we are as a brand.” This motto is meant to support their efforts to always put the customer first and “bring humanity back to air travel”. https://store.theartofservice.com/the-marketing-strategy-toolkit.html Market strategy - Developing a marketing strategy 1 A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.Baker, Michael The Strategic Marketing Plan Audit 2008 ISBN 1902433-99-8 https://store.theartofservice.com/the-marketing-strategy-toolkit.html Nike, Inc - Marketing strategy 1 Nike promotes its products by Sponsor (commercial)|sponsorship agreements with celebrity athletes, professional teams and college athletic teams. https://store.theartofservice.com/the-marketing-strategy-toolkit.html We Bring Good Things to Life - Marketing strategy 1 When GE advertising was consolidated in 1979 with BBDO, the “Good Things” slogan was not only incorporated into media ads but also induced on all packaging, spec sheets and brochures, and service trucks https://store.theartofservice.com/the-marketing-strategy-toolkit.html For More Information, Visit: • https://store.theartofservice.co m/the-marketing-strategytoolkit.html The Art of Service https://store.theartofservice.com