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THE MARKETING
STRATEGY
9.1
9.2
9.3
9.4
9.5
Developing a Market Strategy
Assessing Marketing Mix Alternatives
Analyzing Product Purchase Classifications
Planning for Marketing
Developing a Marketing Plan
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DEVELOPING A
MARKET STRATEGY
GOALS for Lesson 9.1
Describe how market segments are
defined.
Understand the four criteria that an
effective target market must meet.
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Differentiating
Market Segments
Marketing strategy
Significant differences
Common characteristics
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Differentiating Market
Segments
Marketing Strategy – the way
marketing activities are planned and
coordinated to achieve an organizations
goal.
 marketing concept develops marketing
strategies to satisfy customer needs
 identify target market – develop a
marketing mix
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Differentiating Market
Segments
Significant Differences
 difference between consumers in a market
 example – products for graduating seniors
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Differentiating Market
Segments
Common Characteristics
 segments – components of a market in
which people have one or more similar
characteristics
 most important are wants and needs
 demographic characteristics
 buying behaviors
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Selecting
Target Markets
A target market is a clearly identified
segment of the market to which the
company wants to appeal.
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Selecting Target Markets
 The people in the target market must have
common important needs and respond in a
similar way to marketing activities designed
to satisfy those needs.
 The people outside of the target market
should have enough differences from those
in the market that they will not find the
marketing activities satisfying.
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Selecting Target Markets
 There should be adequate information
about the people in the target market so
they can be identified and located.
 There should be enough information about
the consumers’ needs and how they make
purchasing decisions that an effective
marketing mix can be developed.
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In Groups
Successful companies have many or at
least several marketing segments.
Name four local companies and identify
three marketing segments for each
business.
 Example – Encinitas Malt Shop
 Senior Citizens
 Youth athletic teams
 Families
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ASSESSING MARKETING
MIX ALTERNATIVES
GOALS for Lesson 9.2
Describe aspects of a basic product that
can be altered to improve its market
appeal.
Discuss the considerations that marketers
take into account when planning
distribution, pricing, and promotions.
Define four stages of a product life cycle.
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Fine-Tuning the Product
 Basic product –
movies, child care
 Product features –
car, telephone
 Options – phone
services
 Associated services
– service contract
 Brand name/image
– memorable quality
 Guarantee/warranty
 Packaging
 Uses – other uses
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Distribution, Price,
and Promotion
 Distribution is the marketing mix element that
facilitates the physical exchange of products and
services between businesses and their customers
 Price as a marketing mix element is defined as the
amount a buyer pays as well as the methods of
increasing the value of the product to the customers.
 Promotion includes the methods and information
communicated to customers to encourage purchases
and increase their satisfaction.
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Distribution
Where will the customer be best able to
obtain the product?
Where will the customer use the product?
Are there special requirements to
transport, store or display the product?
When should distribution occur?
Who should be responsible for each
type of distribution activity?
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Price
 Does the business want to increase sales,
increase profits, or enhance image of the product?
 Should price be based on cost, what customers
are willing to pay, or what competitors are
charging?
 Will there be one price for all customers,
negotiation, discounts?
 Will the price be clearly communicated?
 Are there things that clearly satisfy the customer
and make the product better and more valuable
than alternatives?
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Promotion
 Will the audience for the promotion be a general
market or specific segment?
 Is the specific goal of promotion to increase
knowledge, to change attitudes, or influence
behavior?
 What specific information does the audience
need?
 What means of promotion will be most effective?
 How much money is needed for effective
marketing?
 What information does the business need from
consumers?
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Using Life
Cycle Analysis
Three factors to consider when planning a
marketing mix:
the type of competition
the purchase behavior of consumers
the strengths and weaknesses of the
business
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Stages of a
Product Life Cycle
Introduction
Growth
Maturity
Decline
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Introduction
 competing against older, established products
 businesses need to identify those that are
dissatisfied with the current problems
 product should be basic and not too
complicated
 guarantee and warranties
 not widely distributed
 price usually high
 promotion needs to inform the customer
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Growth
if product successful, competitors will
enter the market
features and options must be added
wider distribution
adjustment in pricing
promotion must attract customers,
advantages of the product
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Maturity
 sales peak, profit begin to decline, customers
have the product and there are many companies
in the market, competition becomes very intense
 all products features, option,
guarantees/warranties are similar (so customer
service options could be added)
 pricing become very competitive
 increase availability of the product becomes
wider
 promotion – why their product is better
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Decline
product is no longer satisfying or they
discover new and better products, sales
drop, little or no profit
try to identify other uses
distribution is reduce
price is usually reduced
more selective and less promotions
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Stages in a Life Cycle
SALES
PROFITS
Introduction
Growth
Maturity
Decline
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Homework – due tomorrow
Choose 3 product that you use
frequently and analyze it against
each marketing mix element
represented in Figure 9-3 on page
225.
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ANALYZING PRODUCT
PURCHASE CLASSIFICATIONS
GOALS for Lesson 9.3
Describe the four product/service
purchase classifications.
Explain how product/service purchase
classifications affect marketing
planning.
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Purchase
Classification System
Product/service purchase classification system
(a description of the way consumers shop for
products based on their needs and perception of
products) is based on two factors:
Importance of the purchase to the
consumer
Willingness of the consumer to shop
and compare products before making
the purchase
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Classifying Products for
the Consumer Market
 Convenience Goods
 Staple goods – bread,
milk, snacks
 Impulse goods –
unplanned purchases
 Emergency goods –
repairs, medical services
 Shopping Goods
 Attribute-based goods
 Price-based goods
 Specialty Goods – brand
loyalty, well known, delay
purchase
 Unsought Goods – life
insurance, preparing a will
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Applying Purchase Classifications
to Marketing Planning
 Convenience goods - the product mix element
should focus on brand, packaging, and image
 Shopping goods - promotion is highly important,
emphasizes the quality of the product or service
 Specialty goods - planning should insure that
the quality and uniqueness is maintained,
location and price are also important
 Unsought goods - new product should focus on
promotion and distribution; promotion must stress
the importance or need of the product or service
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PLANNING FOR
MARKETING
GOALS for Lesson 9.4
Understand the benefits of marketing
planning.
Describe the steps of developing a
marketing plan.
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The Benefits of Planning
What is a marketing plan? A clear
written description of the marketing
strategies of a business and the way the
business will operate to accomplish
each strategy.
From strategy to plan – target markets
/ marketing mix helps with the
development of the marketing plan
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The Advantage of Planning
Being able to align the following
elements (areas of focus):
 Customer service
 Advertising
 Sales
 Distribution
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Preparing For
Marketing Planning
Planning to plan – time and people
Plans are built with information
 Performance of the company
 Performance of competing companies
 Changes outside the company – economy,
laws, taxes
 Information about current and prospective
customers
Gathering needed information - MkIS
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In Groups
Referring to the four areas of focus
while planning (customer service,
advertising, sales and distribution),
decide how those four areas should be
addressed and why the are important to
a marketing plan. You should pick one
specific product to focus on.
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DEVELOPING A
MARKETING PLAN
GOALS for Lesson 9.5
Identify the five types of market analysis
used in developing a marketing plan.
Describe the elements of an effective
marketing plan.
Explain the need for activity schedules
and evaluation procedures.
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Analyzing the Market
Purpose and mission – identifies the
nature of the business or the reasons
the business exists
 What is the reason this business exists?
 Who is the business most interested in
serving?
 What is the business trying to accomplish?
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Analyzing the Market
• Current markets and strategies – a
review of the current marketing efforts
of the company
• Who are the current customers?
• What are the needs and wants of the
customers?
• How would customers describe the
characteristics of the product, distribution,
price, promotion?
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Analyzing the Market
Primary competitors – an analysis of the
competitors in the same product
categories with similar customers
 What other businesses do customers
consider?
 What things do other businesses do that
entice customers?
 What are the customers dislikes of the
other businesses?
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Analyzing the Market
 External environment analysis – identifying
factors outside of the company
 How is the economy doing, predictions?
 Are there any laws that could affect business
operations?
 Are there any possible cost increases?
 Where is the product in the life cycle?
 Are there any technology changes in the
future?
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Analyzing the Market
Internal analysis – current strengths and
weaknesses of the company
 What makes the businesses operations,
and its marketing mix different and better?
 What things are competitors doing better?
 What plans are underway that might result
in changes?
© South-Western Publishing
Deciding on Strategy
Determining goals and outcomes – a
specific statement of the goals the
company plans to achieve or the
expected outcomes
 What are the important results?
 What will be used to determine if the
marketing activities are successful?
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Deciding on Strategy
Defining target markets – the markets
most be defined completely
 Will the market be the same or different
from the last plan?
 What are the characteristic, is the market
unique?
 Who is the market purchasing from?
 What are the needs and attitudes towards
the product?
 How do they purchase the product?
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Deciding on Strategy
Specifying the market mix – a description
of each marketing mix element
 What are the alternatives for each element?
 What are the specific and important elements
of each that the market will prefer?
 What meets the markets needs and can it be
implemented effectively?
 Who needs to be involved within the company
and outside the company?
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Deciding on Strategy
Developing a positioning statement – a
specific description of the unique qualities
of the marketing mix that make it different
from the competition and satisfying to the
target market
 What is unique about the market?
 What are the unique qualities of the marketing
mix?
 How can they be communicated to the market?
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Planning for Action
Activity schedule – a schedule of
activities that need to be completed,
along with a description of how and
when the activities will be completed
Evaluation procedures – was the plan
effective, where the activities completed
on time and the right way, were the
objectives accomplished
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