How To Plan Your Marketing Strategies
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Transcript of How To Plan Your Marketing Strategies
How To Plan Your Marketing Strategies
By MRJ
Competitive advantage
Something set you apart from your rivals & makes your product more appealing to customers
Strategic marketing planning
Involves: Examining current market situation Assessing opportunities & setting objectives Developing marketing strategy to reach
objectives Purpose:
Help to identify & create competitive advantage
Results: “Marketing Plan”
Strategic marketing planning process
Examine Current Marketing Situation
Review past/current Performance
Evaluate competition
Examine internal strengths & weaknesses
Analyze external environment
Develop Marketing Strategy
Segment Market
Choose Target Market
Position Product
Develop Marketing Mix (4P’s)
Assess Opportunities & Set Objectives
Assess product & market opportunities
Set specific & measurable objectives
Step1: Examining Your Current Marketing Situation Reviewing Performance (how well each
product is doing in each market where it sold)
Evaluating Competition Examining internal strengths & weaknesses Analyzing external environment & tomorrow
changes
Reviewing Performance
Use history of marketing performance to explore: Slowed sales Prices cut & profit rate Improved sales Cash investment in new marketing activities
Review where you are Review how you got there Repeat successes & learn from mistakes
Evaluating Competition
Keep an eye on competition Pay attention to another ways customers
satisfied with Watch horizon for not-existed competitors
Examining internal strengths & weaknesses
Look at: management, financial resources, production capabilities, distribution networks, managerial expertise, promotional capabilities, ability to adjust your operation to different (cultures, customs, legal requirement & product specifications), technological expertise, & business commitment
Identify sources of competitive advantage (strengths) Identify areas need improvement (limitations) Analyze & decide whether:
Limit your business to opportunities which possess the required strengths
Challenge your business to reach higher goals by acquiring & developing new strengths
Analyzing external environment & tomorrow changes
Factors specifics impactEconomic conditions interest rates, inflation,
unemployment, personal income, saving rates
put off buying expensive items, pent-up demand
Natural environment interruptions in the supply of raw materials, floods, droughts, &
cold weather
Affect product availability, affect behavior of target
customers
Social & cultural trends
Trends against product, change in tastes
Needs more advertising to build awareness about
product benefit, products modifications to respond
Laws & regulations On product design, pricing, advertising, activities
Control the marketing
Technology Change in technology Change in marketing approaches
Step2:
New marketing opportunities: market penetration (Selling more of your
existing products in current markets) Product development (creating new products
for your current markets) Geographic expansion (selling your existing
products in new markets) Diversification (creating new products for
new markets) Set SMART objectives (eg.certain level of
market share,…etc) understood & known by employees
Market Share
A firm’s portion of the total sales in a market
Step3: Developing Your marketing Strategy Divide your market into segments & niches Choosing your target customers Position to be established in these markets Developing a marketing mix to help you get
there
Definitions
Marketing Strategy: overall plan for marketing a product
Market: people or businesses who need or want a product & have the money to buy it
Market segmentation: division of total market into smaller relatively homogeneous groups
Dividing Markets Into Segments
Objective: to group customers with similar characteristics, behavior, & needs then target them by offering products Priced, distributed & promoted differently.
Factors to Identify Market SegmentsFactors specifics Effects
Demographics Study of statistical characteristics of a population (age, gender, income, race, occupation, ethnic group)
Poor indicator of behavior
Geographics Categorization of customers according to geographical location (such as regions, cities, counties or
neighborhoods) to customize & sell products meet needs of specific markets (assuming buying behavior influenced by
people location)
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Psychographics Classification of customers on the bases of their psychological makeup, by focusing on:
* psychological makeup (including activities, attitudes, interests, opinions, & lifestyles)
** why people behave the way they do (by examining brand preferences, media preferences, reading habits, values,
self-concept)
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Geodemographics Method of combining geographical data with demographics data to develop profiles of neighborhood segments
Ease the customiztion
Behavior Categorization of customers according to their relationship with products (knowledge, attitude) or response to product
characteristics
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Choosing Your Target Markets
Deciding which segment to target & when Target markets: specific customer groups or segments to whom
a company wants to sell a particular product Criteria to narrow the focus into suitable market segments:
Size of segment Competition in the segment Sales & profit potential Compatibility with company resources Strengths Costs Growth potential Risks
Strategies To Reach Target Markets
Undifferentiated marketing (mass marketing)
Differentiated marketing Concentrated marketing
Undifferentiated marketing
Ignore differences among buyers & offer only one product or product line to satisfy the entire market
Concludes: All buyers have similar needs All buyers can be served with same
standardized product
Differentiated marketing
Sell a variety of products to several target customer groups
Requires Substantial resources, why?
Marketing have to tailor products, prices, promotional efforts & distribution arrangements for each group
Which marketing is mostly used in pakistan differentiated or undifferentiated explain why
Concentrated marketing
Acknowledge that different market segments exist & choose to target just one
Useful when company resources are limited Allows to focus time & resources on single
type of customer Risky strategy (stake company fortune on
one segment)
Positioning Your Product
Using promotion, product, distribution & price to differentiate a good or service from those of competitors in the mind of prospective buyer
Factors: Features Performance Quality Durability Reliability Style Design Customer service (ordering ease, delivery, installation
methods, & customer support)
Developing The Marketing Mix The four key elements of marketing strategy: product,
price, distribution (place), & promotion Product covers Product itself + brand name, design,
packaging, services, quality, & warranty. Price: amount of money paid for product (include
discounts) Distribution: organized network of firms move goods &
services from producer to consumer Promotion: includes communication & promoting
activities of product to target markets (e.g. advertising, personal selling, public relations, sales promotion)
TargetMarket
Ethics
Social responsibility
Society
Tec
hnol
ogy
Politics
Regulation
Nat
ure
Econom
ics
Competition
Distribution
Price
Promotion
product
Positioning & the Marketing Environment