Etiket: Developing Your Marketing Strategy

Developing Your Marketing Strategy- Part 4/4

1 Yorum

Please Click For; Developing Your Marketing Strategy-  Part 3/4

TC YEDİTEPE UNIVERSITY INSTITUTE OF GRADUATE STUDIES IN SOCIAL SCIENCES PH.D. IN BUSINESS ADMINISTRATION PROGRAM

BUSS 611- Advanced Seminar in Strategic Management and Corporate Governance / Spring 2015

STRATEGIC MANAGEMENT TOOLS & TECHNIQUES:

Developing Your Marketing Strategy-  Part 4/4

Market Communication and Promotion

Communication and promotion is the fourth element in marketing strategy.

Marketing communication helps companies to develop brand awareness, which means that consumers translate product information into perceptions about the product’s attributes and its position within the larger market. An effective marketing communication strategy may design with many marketing communication components.

2

Branding is one of the most important key for marketing communication strategy.

Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customer’s mind. Generally, the brand positioning process involves:

  • Identifying the business’s direct competition
  • Understanding how each competitor is positioning their business today
  • Documenting the provider’s own positioning as it exists today
  • Comparing the company’s positioning to its competitors’ to identify viable areas for differentiation
  • Developing a distinctive, differentiating and value-based positioning concept
  • Creating a positioning statement with key messages and customer value propositions to be used for communications development across the organization

There are three basic types of promotional strategies – a push strategy, a pull strategy or a combination of the two. In general, a push strategy is sales oriented, a pull strategy is marketing-oriented and a push-pull strategy is a combination of the two.

Push Strategy

A push promotional strategy works to create customer demand for your product or service through promotion: for example, through discounts to retailers and trade promotions. Appealing package design and maintaining a reputation for reliability, value or style are also used in push strategies. Push promotional strategies also focus on selling directly to customers, for example, through point of sale displays and direct approaches to customers.

Pull Strategy

A pull promotional strategy uses advertising to build up customer demand for a product or service. For example, advertising children’s toys on children’s television shows is a pull strategy. The children ask their parents for the toys, the parents ask the retailers and the retailers the order the toys from the manufacturer. Other pull strategies include sales promotions, offering discounts or two-for-one offers and building demand through social media sites such as YouTube.

Combination Strategies

Some companies use a combination of both push and pull strategies. For example create customer demand through constantly developing new products and offering these products in stores; and pull customers towards these products through advertising and promotion deals is a Combined Strategy. The amount that company spent on each type of strategy will depend on factors such as budget, the type of product, the target audience and competition.

 

New Trends

  • Viral Marketing

A marketing strategy in which conventional media are eschewed in favor of various techniques designed to generate word-of-mouth publicity, in the hope of creating a fad or craze

  • Real- Time Marketing

Real Time Marketing is marketing strategy that is based on up to date events. Instead of creating a marketing plan in advance and executing it according to a fixed schedule, real time marketing is creating a strategy focused on current, relevant trends and immediate feedback from customers.

  • Inbound Marketing

Inbound marketing is a holistic, data- driven approach to marketing that attracts individuals to your brand and convers them into lasting customers. It’s opposite of cold call and direct marketing. Social Media usage, content management and SEO (Search Engine Optimisation) are very important concepts for this strategy.

Reklam

Developing Your Marketing Strategy- Part 3/4

2 Yorum

Please Click For; Developing Your Marketing Strategy-  Part 2/4

TC YEDİTEPE UNIVERSITY INSTITUTE OF GRADUATE STUDIES IN SOCIAL SCIENCES PH.D. IN BUSINESS ADMINISTRATION PROGRAM

BUSS 611- Advanced Seminar in Strategic Management and Corporate Governance / Spring 2015

STRATEGIC MANAGEMENT TOOLS & TECHNIQUES:

Developing Your Marketing Strategy-  Part 3/4

Channels of Distributions

Decision of Distribution Channels and system include the wholesale and retail channels through which company’s product and services move to the ultimate users. Place of the marketing mix includes;

  • Numbers and types of middleman and decision of channels
  • Locations and Availability
  • Inventory levels
  • Transportation

The primary components of any distribution system would include direct sales teams, sales agents, distributors and retail dealers. In some markets retail outlets are often franchised. Electronic commerce also is an emerging channel for market distribution.

1

Distribution Strategies

Depending on the type of product being distributed there are three common distribution strategies available:

1-Intensive distribution used commonly to distribute low priced or impulse purchases products. This strategy is common for snacks, soft drinks and juices, foods, basic supplies, magazines. Intensive distributors work with many manufacturers and generally sell high volumes of goods at lesser prices and earn lower margins.

Pros Cons
  • Increased sales
  • Wider customer recognition
  • Impulse buying
  • Characteristically low price
  • Low-margin products that require a fast turnover
  • Difficult to control large number of retailer

2-Exclusive Distribution involves limiting distribution to a single outlet. The product is usually highly priced, and requires the intermediary to place much detail in its sell. An example of would be the sale of vehicles through exclusive dealers. Exclusive distributors usually cover designer ware, major domestic appliances, and the most luxurious items & brands like Gucci, Prada.

Pros Cons
  • More control over the market
  • More aggressive middleman
  • High brand loyalty
  • Difficult to maintain a high level of brand image
  • Betting on one dealer in each market
  • Only suitable for high priced & low volume products

3-Selective Distribution; A small number of retail outlets are chosen to distribute the product. Selective distribution is common with products such as computers, televisions household appliances, where consumers are willing to shop around and where manufacturers want a large geographical spread. Product distribution here basically considers high-end items such as prestige or designer goods e.g. Puma, Fila, Nike, and Adidas.

Pros Cons
  • Save expenses
  • Improve marketing efficiency
  • ·Control the marketing
  • Difficult to attain a variety of business objectives in relaxed conditions of the marketing environment
  • Lack of adaptability to goods that are not selective
  • A certain risk as firm has to provide more services to selected middle men

 Please Click For; Developing Your Marketing Strategy-  Part 4/4

Developing Your Marketing Strategy- Part 2/4

2 Yorum

Please Click For; Developing Your Marketing Strategy-  Part 1/4

TC YEDİTEPE UNIVERSITY INSTITUTE OF GRADUATE STUDIES IN SOCIAL SCIENCES PH.D. IN BUSINESS ADMINISTRATION PROGRAM

BUSS 611- Advanced Seminar in Strategic Management and Corporate Governance / Spring 2015

STRATEGIC MANAGEMENT TOOLS & TECHNIQUES:

Developing Your Marketing Strategy-  Part 2/4

Pricing

A second important element is price. We should decide the “value” of the product through the eye of the target market.

Basically, the price of product and services is determined by the interplay of 5 factors;

  1. Supply/ Demand Conditions
  2. The firm’s production and overhead costs
  3. Competition
  4. Buyer bargaining Power
  5. Product and brand value to potential customer

 

Dean’s “Skimming And Penetration Strategies” (1950)

When the company sets the pricing strategy according to the production quality and Supply, we have 4 main strategies to follow.

5

  • Economy Pricing.

This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for FMCG products.

  • Penetration Pricing.

The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased.

  • Price Skimming.

Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply.

  • Premium Pricing.

Use a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charge for luxury products.

There are also some other strategies to price a product. Selection of the best strategy depends on various market situations.

  • Psychological Pricing.

This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis.

  • Product Line Pricing.

Where there is a range of product or services the pricing reflect the benefits of parts of the range. Up sales and bundles are product line strategies

  • Optional Product Pricing.

Companies will attempt to increase the amount customer spend once they start to buy. Optional ‘extras’ increase the overall price of the product or service. (Cross Sell)

  • Captive Product Pricing

Where products have complements, companies will charge a premium price where the consumer is captured.

  • Product Bundle Pricing.

Here sellers combine several products in the same package. This also serves to move old stock.

  • Promotional Pricing.

Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as Buy One Get One Free.

  • Geographical Pricing.

Geographical pricing is evident where there are variations in price in different parts of the world. For example rarity value, or where shipping costs increase price.

  • Value Pricing.

This approach is used where external factors such as recession or increased competition force companies to provide ‘value’ products and services to retain sales e.g.

Please Click For; Developing Your Marketing Strategy-  Part 3/4

Developing Your Marketing Strategy- Part 1/4

2 Yorum

TC YEDİTEPE UNIVERSITY INSTITUTE OF GRADUATE STUDIES IN SOCIAL SCIENCES PH.D. IN BUSINESS ADMINISTRATION PROGRAM

BUSS 611- Advanced Seminar in Strategic Management and Corporate Governance / Spring 2015

STRATEGIC MANAGEMENT TOOLS & TECHNIQUES:

Developing Your Marketing Strategy-  Part 1/4

What is Marketing?

Sergio Zyman defines best-summarized description of marketing in 2004 in his book “Renovate Before You Innovate.” ; – Marketing success is to “sell more stuff, to more people, more often, for more money, more efficiently.”

What is Marketing Strategy?

Marketing strategy describes how a business meets the requirements of its market.

Marketing strategy includes all basic and long-term activities that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented decisions and therefore reach to company’s major objectives and goals with the execution of marketing mix.

An effective marketing strategy will help to define the overall direction and goals for marketing. Marketing strategy should articulate how company is going to deliver products or services in ways that will satisfy customers’ expectations and needs.

 Early Marketing Strategy Concepts

Before marketing strategy developed as an offshoot of marketing management in the 1970s, even before marketing management emerged as a school of thought in the 1960s to replace the traditional approaches to marketing (Bartels, 1988; Sheth et al., 1988; Shaw and Jones, 2005), a few isolated concepts were developed in the 1950s literature that form the core of modern marketing strategy. These seminal concepts include: Borden’s (1957, 1964) expression of the “marketing mix,” Smith’s (1956) development of “product differentiation” and “market segmentation” as alternative marketing strategies, Dean’s (1951) conception of “skimming” and “penetration” as alternative pricing (that he extended to the whole marketing mix) strategies, and Forrester’s (1959) description of the “product life cycle (PLC).”

 Elements of Marketing Strategy

The focus of Marketing strategy should be making sure that products and services meet customer needs and developing long-term and profitable relationships with those customers. To achieve this, company need to create a flexible strategy that can respond to changes in customer perceptions and demand. It may also help to identify whole new markets that successfully targeted.

A marketing strategy is composed of several interrelated elements, which also constitute 4Ps of Marketing Mix. E. Jerome McCarthy (McCarthy, J. 1960), was the first person to suggest the four P’s of marketing – price, promotion, product and place (distribution) – which constitute the most common variables used in constructing a marketing mix.

The Components of Marketing Strategy 

1

  • Product/Market Selection

Selection of the market and Product is the most important element. The decision of target market and the selection of product lines should be done by some critical marketing researches for a successful strategy.

According to companies’ mission and goals business may take 4 different market actions in product market; (The most well-known Igor Ansoff’s Growth Strategies- 1957)

  • Develop new markets
  • Expand existing markets
  • Develop new products
  • Enter new businesses

2

Market Penetration is the attempt to increase sales of current products in present markets. Some strategies to penetrate markets include: more aggressive marketing, increasing service to improve renewal rates, or attracting competitor customers directly.

Market Development is the effort to increase sales by selling current products into new markets. Firms may advertise to reach new target customers within a geographic region, or look to international markets for expansion.

Product Development refers to offering new or improved products to present markets. By working closely with your customers, you may find new and innovative ways to better satisfy your target market.

Diversification means opening completely new lines of business, with new products in new markets. Many organizations diversify their product mix to mitigate risks related to economic variables such as recessions.

Each tactic require different marketing strategies and different strategically actions.

After the selection of the market, company should define customers or target market and marketing managers need to start developing and implementing tactics to reach them.

One of the key elements of a successful target market analysis is the acknowledgement that existing and potential customers will fall into particular groups or segments, characterized by their “needs”. Identifying these groups and their needs through market research, and then addressing them more successfully than competitors, should be the focus of the strategy.

3

Forrester’s “Product Life Cycle (PLC)”- 1959

The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.

 

Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector.

Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.

Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process, which might give them a competitive advantage.

Decline Stage – Eventually, the market for a product will start to shrink, and this is what’s known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.

 Segmentation

The concept of market segmentation was first identified by Wendell R. Smith back in the 1950s. He was one of the first to recognize the importance of market segmentation, as shown in the following quote:

“Market segmentation is based upon developments on the demand side of the market and represents a rational and more precise adjustment of product and marketing effort to consumer or user requirements.” (Smith, 1956)

Markets may be segmented along several dimensions;

4

* Please Click For; Developing Your Marketing Strategy-  Part 2/4