MARKETING STRATEGY

THE PURPOSE OF MARKETING

textbook definition: What is Marketing?

CREATECAPTURESUSTAIN VALUEin 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

IDENTIFICATIONMarket ResearchATTRACTIONAdvertisingOnline mediaPackagingClean storesPublic relations

GETTINGPersonal sellingDistributionPricingProductService from salespeople

POST SALES

KEEPING

DeliveryBillingBill CollectionCustomer ServiceWarrantyFeedback from customers

EVERYBODY IN THE COMPANYSHOULD BE THINKING ABOUT MARKETING

GreetersTruck loadersPhone answerersDesignersEngineers

PresidentsQuality controlInventoryAccountingCollections

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

FeatureThese boots have rubber outsole with traction ribbing. Sealed seams renders them waterproof.BenefitYour feet won’t get wet if you were these boots. You won’t trip easily

• FeatureThis 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 MARKETSpecifying 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 large mass markets to 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 goalsResourcesCollaboratorsFinancial Returns

POSITIONING

The positioning statement specifies the position the firm wants to occupy in the target customers’ eyes.

http://www.youtube.com/watch?v=nXa02tB8DLohttp://adland.tv/commercials/coke-coca-cola-happiness-machine-2010-200-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 caloriesCola vs. non-cola tastePrice sensitivity—brandHeavy vs. light consumers

CAMPBELL’S SOUP

What demographic variables would they need to consider?Region – Western U.S. consumer prefer spicier soupsAge --Little girls

GUN SALES

Flat sales? (no growth)

What can they do? Create a new segment! What did they do?

Lady Remington