Marketing Strategies

What is a strategy?The method selected to

carry out a carefully devised plan of action

TO ACHIEVE A SPECIFIC GOAL

Marketing PlanConsists of the company’s

marketing goals and the marketing mix formula for achieving them

Examples of goalsTo introduce a new product or

service

To gain interest in a cause

To promote an idea

Specific ways that they will meet these goals are called TACTICS

Marketing StrategyOutlines how the company will

carry out the marketing plan

2 main kinds:1.Brand Strategy

2.Distribution Strategy

Brand StrategiesPrimary goal is to communicate

the value of a product or service (P/S) to the consumer

VALUE: the difference between the perceived cost of the product and the perceived satisfaction gained from the product

Value EquationTOTAL BENEFITS – TOTAL

COSTS

If the cost outweighs the benefits, the consumer won’t buy it.

Brand strategies develop and communicate the benefits of the brand, minimize the costs, and encourage the consumer to set up a positive value equation

EXAMPLE: TRIP TO BARBADOS

Brand Strategy cont..Marketers strive to either:

1. add benefits to the product (new flavours, green-friendly) or

2.reduce the costs (lower prices, more convenient distribution)

Activity – G/SBMW X5

Toys ‘R Us

Cell Phone

Costco

MacLean’s Magazine

Theatre ticket

GQ Magazine

iPod

Distribution StrategyFocuses on the best way to

deliver a P/S to the target market.

3 ways:PushPullCombination

PushConsumers buy P/S every

day that haven’t been on their minds.Generic products, non-

branded products or unknown brands

Bought because a bargain, a gift or on impulse

PushPush Strategy: sells the

product to retailers, importers or wholesales, and not to end use consumers

Push ReasoningIf the product is out there

where consumers can see it, they will buy it

Companies rely on the retailer to display the product and sell it to the customers who come into the store.

Push strategy requires the marketer to focus all of the promotional activities on the distributorNeed buying incentives:

promotional discounts, prizes, display fixtures, product-knowledge seminars

ExampleHow many of you have candles

in your home?

What brand?

Candle-lite Candles

Glade Candles Concord Candles

Scentsations Candles

Yankee Candles

Canadian Candles

Waxman Candles

Upper Canada Candles

Colonial Candles

Doozy Candles

Party-lite Candles

Pull StrategyWhat people usually think of

when they think of marketing

Attempts to increase consumer demand directly, rather than rely on retailers to sell the product

PullManufacturers try to

convince consumers that they need their product, and that they should look for it by name when they go shopping.

PullRequires major advertising

and promotional effort.

Many believe this strategy is the most important or most useful marketing strategy.

CombinationThe pull strategy is difficult to

use aloneRequires distribution partners

(usually retailers) to fulfill the demand created by the manufacturer.

The push strategy needs no partnership with the consumer

CombinationThe pull strategy needs to

combine with the push strategy to optimize effectiveness

HomeworkPrepare an inventory of several

different items in one room of your home. Which of these items was purchased because of a marketer’s pull strategy? Which items are in the room because of a push strategy?