Marketing Strategy .

177
• Marketing Strategy https://store.theartofservice.com/the-marketing-strategy- toolkit.html

Transcript of Marketing Strategy .

Page 1: Marketing Strategy .

• Marketing Strategy

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 2: Marketing Strategy .

Marketing Marketing strategy

1 The field of marketing strategy considers the total marketing

environment and its impacts on a company or product or service. The

emphasis is on "an in depth understanding of the market environment, particularly the competitors and customers."

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Page 3: Marketing Strategy .

Marketing Marketing strategy

1 Listed below are some prominent marketing

strategy models.

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Marketing Marketing strategy

1 A marketing strategy differs from a marketing tactic in that a strategy looks at

the longer term view of the products, goods, or services being marketed. A tactic

refers to a shorter term view. Therefore, the mailing of a postcard or sales letter

would be a tactic, but changing marketing channels of distribution, changing the pricing, or promotional elements used

would be considered a strategic change.

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Marketing ethics - Marketing strategy

1 The main theoretical issue here is the debate between free markets and regulated markets. In a truly free market, any participant can make or change the rules. However when new rules are invented which shift power too suddenly or too

far, other participants may respond with accusations of unethical behaviour, rather than

modifying their own behaviour to suit (which they might not be able to anyway). Most

markets are not fully free: the real debate is as to the appropriate extent of regulation.

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Marketing ethics - Marketing strategy

1 Case: California electricity crisis, which demonstrates how constant

innovation of new marketing strategies by companies such as Enron outwitted the regulatory

bodies and caused substantial harm to consumers and competitors.

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Marketing ethics - Marketing strategy

1 A list of known unethical or controversial

marketing strategies:

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Marketing management - Marketing strategy

1 To achieve the desired objectives, marketers typically identify one or more target customer segments

which they intend to pursue

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Marketing management - Marketing strategy

1 The implication of selecting target segments is that the business will

subsequently allocate more resources to acquire and retain

customers in the target segment(s) than it will for other, non-targeted

customers

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Marketing management - Marketing strategy

1 In conjunction with targeting decisions, marketing managers will identify the desired positioning they

want the company, product, or brand to occupy in the target customer's

mind

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Marketing management - Marketing strategy

1 Ideally, a firm's positioning can be maintained over a long period of

time because the company possesses, or can develop, some form of sustainable competitive

advantage

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Marketing strategy

1 Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a

company and the formulation, evaluation and selection of market-oriented strategies and therefore

contribute to the goals of the company and its marketing

objectives.https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 13: Marketing Strategy .

Marketing strategy - Developing a marketing strategy

1 Marketing strategy needs to take a long term view, and tools such as

customer lifetime value models can be very powerful in helping to

simulate the effects of strategy on acquisition, revenue per customer

and churn rate.

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Marketing strategy - Developing a marketing strategy

1 A key component of marketing strategy is often to keep marketing in

line with a company's overarching mission statement.

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Marketing strategy - Developing a marketing strategy

1 Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business

alternatives, establish challenging goals, determine the optimal marketing mix to

attain these goals, and detail implementation. A final step in developing a

marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of

the plan.https://store.theartofservice.com/the-marketing-strategy-toolkit.html

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Marketing strategy - Developing a marketing strategy

1 Marketing Mix Modeling is often used to help determine the optimal marketing budget and how to

allocate across the marketing mix to achieve these strategic goals.

Moreover, such models can help allocate spend across a portfolio of

brands and manage brands to create value.

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Marketing strategy - Types of strategies

1 Marketing strategies may differ depending on the unique situation of

the individual business. However there are a number of ways of

categorizing some generic strategies. A brief description of the most

common categorizing schemes is presented below:

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Page 18: Marketing Strategy .

Marketing strategy - Types of strategies

1 Strategies based on market dominance - In this scheme, firms are

classified based on their market share or dominance of an industry.

Typically there are four types of market dominance strategies:

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Marketing strategy - Types of strategies

1 According to Shaw, Eric (2012). Marketing Strategy: From the Origin of the Concept to the Development of a Conceptual Framework. Journal of Historical Research in Marketing., there is a framework for marketing

strategies.

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Marketing strategy - Types of strategies

1 Market introduction strategies

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Marketing strategy - Types of strategies

1 "At introduction, the marketing strategist has two principle strategies to choose from: penetration or niche" (47).

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Marketing strategy - Types of strategies

1 "In maturity, sales growth slows, stabilizes and starts to decline. In

early maturity, it is common to employ a maintenance strategy

(BCG), where the firm maintains or holds a stable marketing mix" (48).

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Marketing strategy - Types of strategies

1 At some point the decline in sales approaches and then begins to

exceed costs. And not just accounting costs, there are hidden

costs as well; as Kotler (1965, p. 109) observed: 'No financial accounting

can adequately convey all the hidden costs.' At some point, with declining sales and rising costs, a harvesting

strategy becomes unprofitable and a divesting strategy necessary" (49).

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Marketing strategy - Types of strategies

1 "In his classic Harvard Business Review (HBR) article of the marketing

mix, Borden (1964) credits James Culliton in 1948 with describing the marketing executive as a 'decider'

and a 'mixer of ingredients.' This led Borden, in the early 1950s, to the

insight that what this mixer of ingredients was deciding upon was a

'marketing mix'" (34).https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 25: Marketing Strategy .

Marketing strategy - Types of strategies

1 "In product differentiation,

according to Smith (1956, p

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Marketing strategy - Types of strategies

1 "With skimming, a firm introduces a product with a high price and after

milking the least price sensitive segment, gradually reduces price, in a stepwise fashion, tapping effective

demand at each price level. With penetration pricing a firm continues its initial low price from introduction to rapidly capture sales and market share, but with lower profit margins

than skimming" (37).https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 27: Marketing Strategy .

Marketing strategy - Types of strategies

1 "The PLC does not offer marketing strategies, per se; rather it provides

an overarching framework from which to choose among various

strategic alternatives" (38).

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Marketing strategy - Types of strategies

1 "Although widely used in marketing strategy, SWOT (also known as TOWS) Analysis originated in corporate strategy. The SWOT

concept, if not the acronym, is the work of Kenneth R. Andrews who is

credited with writing the text portion of the classic: Business Policy: Text and Cases (Learned et al., 1965)"

(41).https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 29: Marketing Strategy .

Marketing strategy - Types of strategies

1 "The most well-known, and least often attributed, aspect of Igor

Ansoff’s Growth Strategies in the marketing literature is the term

'product-market.' The product-market concept results from Ansoff

juxtaposing new and existing products with new and existing

markets in a two by two matrix" (41-42).

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Marketing strategy - Types of strategies

1 Porter generic strategies - strategy on the dimensions of strategic scope and strategic

strength

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Marketing strategy - Types of strategies

1 These ways of growth are termed as organic growth

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Marketing strategy - Types of strategies

1 BCG’s “growth-share portfolio matrix” "Based on his work with

experience curves (that also provides the rationale for Porter’s low cost leadership strategy), the growth-

share matrix was originally created by Bruce D

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Page 33: Marketing Strategy .

Marketing strategy - Strategic models

1 Marketing participants often employ strategic models and tools to analyze marketing

decisions

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Marketing strategy - Strategic models

1 There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their

business centered around Consumer, Shopper & Retailer needs

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Marketing strategy - Real-life marketing

1 Real-life marketing primarily revolves around the application of a great

deal of common-sense; dealing with a limited number of factors, in an

environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in

these circumstances, is inevitably partial and uneven.

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Marketing strategy - Real-life marketing

1 Thus, for example, many new products will emerge from irrational

processes and the rational development process may be used (if

at all) to screen out the worst non-runners. The design of the

advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction',

to ensure that it is reasonable.https://store.theartofservice.com/the-marketing-strategy-toolkit.html

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Marketing strategy - Real-life marketing

1 The marketing strategy is the foundation of a marketing plan.

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Page 38: Marketing Strategy .

Retail - Types by marketing strategy

1 Department stores — very large stores offering a huge assortment of "soft" and "hard goods; often bear a

resemblance to a collection of specialty stores. A retailer of such store carries variety of categories

and has broad assortment at average price. They offer considerable

customer service.

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Page 39: Marketing Strategy .

Retail - Types by marketing strategy

1 Discount stores — tend to offer a wide array of products and services, but they compete mainly on price

offers extensive assortment of merchandise at affordable and cut-rate prices. Normally, retailers sell

less fashion-oriented brands.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 40: Marketing Strategy .

Retail - Types by marketing strategy

1 Warehouse stores — warehouses that offer low-cost, often high-quantity

goods piled on pallets or steel shelves; warehouse clubs charge a

membership fee;

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Retail - Types by marketing strategy

1 Demographic — retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy

individuals).

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Retail - Types by marketing strategy

1 Mom-And-Pop — a small retail outlet owned and operated by an individual

or family. Focuses on a relatively limited and selective set of products.

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Retail - Types by marketing strategy

1 Specialty stores — a typical speciality store gives attention to a particular category and provides high level of

service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty

store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and

Gap products in the respective stores.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 44: Marketing Strategy .

Retail - Types by marketing strategy

1 Boutiques or Concept stores — similar to specialty stores. Concept

stores are very small in size, and only ever stock one brand. They are run by the brand that controls them. An example of brand that distributes largely through their own widely

distributed concept stores is L'OCCITANE en Provence. The limited

size and offering of L'OCCITANE's stores are too small to be considered

a specialty store proper.

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Retail - Types by marketing strategy

1 General store — a rural store that supplies the main needs for the local community;

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Retail - Types by marketing strategy

1 Convenience stores — essentially found in residential areas. They

provide limited amount of merchandise at more than average prices with a speedy checkout. This

store is ideal for emergency and immediate purchases as it often

works with extended hours, stocking everyday;

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

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Retail - Types by marketing strategy

1 Hypermarkets — provides variety and huge volumes of exclusive

merchandise at low margins. The operating cost is comparatively less

than other retail formats.

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Page 48: Marketing Strategy .

Retail - Types by marketing strategy

1 Supermarkets — a self-service store consisting mainly of grocery and

limited products on non food items. They may adopt a Hi-Lo or an EDLP

strategy for pricing. The supermarkets can be anywhere

between 20,000 and 40,000 square feet (3,700 m2). Example: SPAR

supermarket.

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Page 49: Marketing Strategy .

Retail - Types by marketing strategy

1 Malls — has a range of retail shops at a single outlet. They endow with

products, food and entertainment under a roof.

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Page 50: Marketing Strategy .

Retail - Types by marketing strategy

1 Category killers or Category Specialist — by supplying wide

assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be

available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is

present in the vicinity.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 51: Marketing Strategy .

Retail - Types by marketing strategy

1 E-tailers — the customer can shop and order through internet and the

merchandise are dropped at the customer's doorstep

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 52: Marketing Strategy .

Retail - Types by marketing strategy

1 Vending Machines — this is an automated piece of equipment

wherein customers can drop the money in the machine and acquire

the products.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 53: Marketing Strategy .

Retailer - Types by marketing strategy

1 * Department stores — very large stores offering a huge assortment of

soft and hard goods; often bear a resemblance to a collection of

specialty stores. A retailer of such store carries variety of categories

and has broad assortment at average price. They offer considerable

customer service.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 54: Marketing Strategy .

Retailer - Types by marketing strategy

1 * Discount stores — tend to offer a wide array of products and services, but they compete mainly on price

offers extensive assortment of merchandise at affordable and cut-rate prices. Normally, retailers sell

less fashion-oriented brands.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 55: Marketing Strategy .

Retailer - Types by marketing strategy

1 * Warehouse stores — warehouses that offer low-cost, often high-

quantity goods piled on pallets or steel shelves; warehouse clubs

charge a membership fee;

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 56: Marketing Strategy .

Retailer - Types by marketing strategy

1 * Demographic — retailers that aim at one particular segment (e.g., high-

end retailers focusing on wealthy individuals).

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 57: Marketing Strategy .

Retailer - Types by marketing strategy

1 * Mom-And-Pop — a small retail outlet owned and operated by an individual or family. Focuses on a

relatively limited and selective set of products.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 58: Marketing Strategy .

Retailer - Types by marketing strategy

1 * Specialty stores — a typical speciality store gives attention to a

particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a

specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap (retail store)|Gap

store then they find just Reebok and Gap products in the respective

stores.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 59: Marketing Strategy .

Retailer - Types by marketing strategy

1 * Boutiques or Concept stores — similar to specialty stores. Concept

stores are very small in size, and only ever stock one brand. They are run by the brand that controls them. An example of brand that distributes largely through their own widely

distributed concept stores is L'Occitane en Provence|L'OCCITANE en Provence. The limited size and offering of L'OCCITANE's stores are

too small to be considered a specialty store proper.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 60: Marketing Strategy .

Retailer - Types by marketing strategy

1 * General store — a rural store that supplies the main needs for the local community;

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 61: Marketing Strategy .

Retailer - Types by marketing strategy

1 *Convenience stores — essentially found in residential areas. They

provide limited amount of merchandise at more than average prices with a speedy checkout. This

store is ideal for emergency and immediate purchases as it often

works with extended hours, stocking everyday;

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 62: Marketing Strategy .

Retailer - Types by marketing strategy

1 *Hypermarkets — provides variety and huge volumes of exclusive

merchandise at low margins. The operating cost is comparatively less

than other retail formats.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 63: Marketing Strategy .

Retailer - Types by marketing strategy

1 *Supermarkets — a self-service store consisting mainly of grocery and

limited products on non food items. They may adopt a Hi-Lo or an

Everyday low price|EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and .

Example: SPAR supermarket.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 64: Marketing Strategy .

Retailer - Types by marketing strategy

1 *Shopping Mall|Malls — has a range of retail shops at a single outlet.

They endow with products, food and entertainment under a roof.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 65: Marketing Strategy .

Retailer - Types by marketing strategy

1 *Category killers or Category Specialist — by supplying wide

assortment in a single category for lower prices a retailer can kill that

category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be

available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is

present in the vicinity.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 66: Marketing Strategy .

Retailer - Types by marketing strategy

1 *E-tailers — the customer can shop and order through internet and the

merchandise are dropped at the customer's doorstep

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 67: Marketing Strategy .

Retailer - Types by marketing strategy

1 *Vending Machines — this is an automated piece of equipment

wherein customers can drop the money in the machine and acquire

the products.

https://store.theartofservice.com/the-marketing-strategy-toolkit.html

Page 68: Marketing Strategy .

Tata Global Beverages - Marketing strategy

1 In spite of a global presence, the brands are distributed differently depending on

the location. As Tata tea is far better known in India and a powerful brand there, it is

pushed on this market and countries with a large Indian population. Therefore, Tetley is the company's global face and the largest markets focus on the Tetley brand. Where both brands co-exist in one market, Tetley

is positioned as the premium brand.

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Marketing campaign - Marketing strategy

1 The field of marketing strategy considers the total marketing

environment and its impacts on a company or product or service. The

emphasis is on an in depth understanding of the market environment, particularly the

competitors and customers.Developing Business

Strategies, David A. Acker, John Wiley and Sons, 1988

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SEO - As a marketing strategy

1 SEO is not an appropriate strategy for every website, and other Internet

marketing strategies can be more effective like paid advertising

through PPC campaigns, depending on the site operator's goals. A successful Internet marketing

campaign may also depend upon building high quality web pages to engage and persuade, setting up

web analytics|analytics programs to enable site owners to measure results, and improving a site's

conversion rate.

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Page 71: Marketing Strategy .

SEO - As a marketing strategy

1 SEO may generate an adequate return on investment

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Page 72: Marketing Strategy .

Diversification (marketing strategy)

1 'Diversification' is a corporate strategy to increase sales volume

from new products and new markets. Diversification can be expanding into

a new segment of an industry that the business is already in, or

investing in a promising business outside of the scope of the existing

business.

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Diversification (marketing strategy)

1 Diversification is part of the four main growth strategies defined by

Igor Ansoff's Product/Market matrix:Ansoff, I.: Strategies for

Diversification, Harvard Business Review, Vol. 35 Issue 5,Sep-Oct

1957, pp. 113-124

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Diversification (marketing strategy)

1 Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The

first three strategies are usually pursued with the same technical,

financial, and merchandising resources used for the original

product line, whereas diversification usually requires a company to

acquire new skills, new techniques and new facilities.

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Diversification (marketing strategy)

1 'Note:' The notion of diversification depends on the subjective

interpretation of “new” market and “new” product, which should reflect the perceptions of customers rather

than managers. Indeed, products tend to create or stimulate new markets; new markets promote

product innovation.

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Diversification (marketing strategy)

1 Product diversification involves addition of new products to existing products either being manufactured

or being marketed

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Diversification (marketing strategy) - The different types of diversification strategies

1 The strategies of diversification can include internal development of new products or markets, acquisition of a firm, Business alliance|alliance with a

complementary company, license|licensing of new technologies, and distributing or importing a Product

lining|products line manufactured by another firm

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Page 78: Marketing Strategy .

Diversification (marketing strategy) - Concentric diversification

1 This means that there is a technological similarity between the industries, which means that the firm

is able to leverage its technical know-how to gain some advantage.

For example, a company that manufactures industrial adhesives

might decide to diversify into adhesives to be sold via retailers.

The technology would be the same but the marketing effort would need

to change.

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Diversification (marketing strategy) - Concentric diversification

1 It also seems to increase its market share to launch a new product that

helps the particular company to earn profit. For instance, the addition of tomato ketchup and sauce to the existing Maggi brand processed

items of Food Specialities Ltd. is an example of technological-related

concentric diversification.

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Diversification (marketing strategy) - Concentric diversification

1 The company could seek new products that have technological or marketing synergies with

 

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Diversification (marketing strategy) - Concentric diversification

1 existing product lines appealing to a new group of customers.This also

helps the company to tap that part of the market which remains untapped, and which presents an opportunity to

earn profit..

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Page 82: Marketing Strategy .

Diversification (marketing strategy) - Horizontal diversification

1 The company adds new products or services that are often

technologically or commercially unrelated to current products but

that may appeal to current customers. This strategy

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Page 83: Marketing Strategy .

Diversification (marketing strategy) - Horizontal diversification

1 tends to increase the firm's dependence on certain market

segments. For example, a company that was making notebooks earlier may also enter the pen market with

its new product.

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Page 84: Marketing Strategy .

Diversification (marketing strategy) - When is Horizontal diversification desirable?

1 Horizontal diversification is desirable if the present customers are loyal to the current products and if the new

products have a good quality and are well promoted and priced. Moreover,

the new products are marketed to the same economic environment as

the existing products, which may lead to rigidity and instability.

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Diversification (marketing strategy) - Another interpretation

1 Horizontal integration occurs when a firm enters a new business (either related or unrelated) at the same stage of production as its current

operations

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Diversification (marketing strategy) - Conglomerate diversification (or lateral diversification)

1 The company markets new products or services that have no

technological or commercial synergies with current products but that may appeal to new groups of

customers

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Diversification (marketing strategy) - Goal of diversification

1 According to Calori and Harvatopoulos (1988), there are two

dimensions of rationale for diversification. The first one relates

to the nature of the strategic objective: Diversification may be

defensive or offensive.

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Diversification (marketing strategy) - Goal of diversification

1 Defensive reasons may be spreading the risk of market contraction, or

being forced to diversify when current product or current market orientation seems to provide no further opportunities for growth.

Offensive reasons may be conquering new positions, taking

opportunities that promise greater profitability than expansion

opportunities, or using retained cash that exceeds total expansion needs.

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Diversification (marketing strategy) - Goal of diversification

1 The second dimension involves the expected outcomes of diversification:

Management may expect great economic value (growth, profitability) or first and foremost great coherence and complementary to their current activities (exploitation of know-how,

more efficient use of available resources and capacities).

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Diversification (marketing strategy) - Goal of diversification

1 In addition, companies may also explore diversification just to get a valuable comparison between this

strategy and expansion.

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Diversification (marketing strategy) - Risks

1 Of the four strategies presented in the Ansoff matrix, Diversification has the highest level of risk and requires

the most careful investigation

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Diversification (marketing strategy) - Risks

1 In order to measure the chances of

success, different tests can be done:

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Diversification (marketing strategy) - Risks

1 *The attractiveness test: the industry that has been chosen has to be

either attractive or capable of being made attractive.

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Diversification (marketing strategy) - Risks

1 *The cost-of-entry test: the cost of entry must not capitalize all future profits.

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Diversification (marketing strategy) - Risks

1 *The better-off test: the new unit must either gain competitive

advantage from its link with the corporation or vice versa.

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Diversification (marketing strategy) - Risks

1 Because of the high risks explained above, many companies attempting

to diversify have led to failure. However, there are a few good

examples of successful diversification:

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Diversification (marketing strategy) - Risks

1 *Virgin Group moved from music production to

travel and mobile phones

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Diversification (marketing strategy) - Risks

1 *The Walt Disney Company|Walt Disney moved from producing

animated movies to theme parks and vacation properties

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Diversification (marketing strategy) - Risks

1 *Canon (company)|Canon diversified from a camera-making company into producing an entirely new range of

office equipment.

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Retailing - Types by marketing strategy

1 Department stores are very large stores offering a huge assortment of

soft and hard goods; often bear a resemblance to a collection of

specialty stores. A retailer of such store carries variety of categories

and has broad assortment at average price. They offer considerable

customer service.

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Retailing - Types by marketing strategy

1 Discount stores tend to offer a wide array of products and services, but

they compete mainly on price offers extensive assortment of merchandise

at affordable and cut-rate prices. Normally, retailers sell less fashion-

oriented brands.

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Retailing - Types by marketing strategy

1 A specialty (British English|BE: speciality) store has a narrow

marketing focus - either specializing on specific merchandise, such as toys, shoes, or clothing, or on a

target audience, such as children, tourists, or oversize women

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Retailing - Types by marketing strategy

1 Boutique or concept stores — similar to specialty stores. Concept stores

are very small in size, and only ever stock one brand. They are run by the

brand that controls them. An example of brand that distributes largely through their own widely

distributed concept stores is L'Occitane en Provence|L'OCCITANE en Provence. The limited size and offering of L'OCCITANE's stores are

too small to be considered a specialty store proper.

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Retailing - Types by marketing strategy

1 A general store is a rural store that supplies the main needs for the local community;

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Retailing - Types by marketing strategy

1 A convenience store is typically found in residential areas. They

provide limited amount of merchandise at more than average prices with a speedy checkout. This

store is ideal for emergency and immediate purchases as it often

works with extended hours, stocking everyday;

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Retailing - Types by marketing strategy

1 A supermarket is a self-service store consisting mainly of grocery and

limited products on non food items. They may adopt a Hi-Lo or an

Everyday low price|EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and .

Example: SPAR supermarket.

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Retailing - Types by marketing strategy

1 A shopping mall has a range of retail shops at a single outlet. They endow

with products, food and entertainment under a roof.

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Retailing - Types by marketing strategy

1 By supplying wide assortment in a single category for lower prices a category killer retailer can kill that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be

available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is

present in the vicinity.

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Retailing - Types by marketing strategy

1 The customer can shop and order through the internet and the

merchandise is dropped at the customer's doorstep or an e-tailer

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Retailing - Types by marketing strategy

1 A vending machine is an automated piece of equipment wherein

customers can drop the money in the machine and acquire the products.

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Specialty store - Types by marketing strategy

1 Boutique or concept stores are similar to specialty stores. Concept

stores are very small in size, and only ever stock one brand. They are run by the brand that controls them. An example of brand that distributes largely through their own widely

distributed concept stores is L'Occitane en Provence|L'OCCITANE en Provence. The limited size and offering of L'OCCITANE's stores are

too small to be considered a specialty store proper.

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Specialty store - Types by marketing strategy

1 A convenience store provides limited amount of merchandise at more than

average prices with a speedy checkout. This store is ideal for

emergency and immediate purchases as it often works with

extended hours, stocking everyday;

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Specialty store - Types by marketing strategy

1 A shopping mall has a range of retail shops at a single outlet. They can

include products, food and entertainment under one roof. Malls provide 7% of retail revenue in India, 10% in Vietnam, 25% in China, 28% in Indonesia, 39% in the Philippines,

and 45% in Thailand.

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Page 114: Marketing Strategy .

Search engine optimisation - As a marketing strategy

1 SEO is not an appropriate strategy for every website, and other Internet marketing

strategies can be more effective like paid advertising through pay per click

Pay_per_click|(PPC) campaigns, depending on the site operator's goals. A successful Internet

marketing campaign may also depend upon building high quality web pages to engage and persuade, setting up web analytics|analytics programs to enable site owners to measure

results, and improving a site's conversion rate.

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Page 115: Marketing Strategy .

Secret brand - Marketing Strategy

1 The idea of a secret brand works off of one or more of three economic

principles. The first is scarcity value. The secret brand creates products

with highly specific, unique qualities, usually very subtle and invisible to the casual observer. These qualities

do not necessarily improve the performance of the product and can

be inefficiencies (i.e. using heavy weight denim for casual clothes). The customer purchases the product for its rarity; to have something that is

very difficult to acquire.

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Secret brand - Marketing Strategy

1 The second principle is Brand

management|branding

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Secret brand - Marketing Strategy

1 The third principle is experimentation. Openly announcing new products often affects stock values in publicly traded

companies. If a company is unsure of the real world appeal of a product, it may

employ a secret brand to experiment with market reaction on a small scale. This

technique may be used after inconclusive focus group results (i.e. the majority

somewhat dislike the product, while the minority is highly enthusiastic about it).

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Marketing objectives - Marketing strategy

1 A marketing strategy considers the resources a firm has, or is required to

allocate in effort to achieve an objective. Marketing Strategies include the process

and planning in which a firm may be expected to achieve their company goals, in which usually involves an effort to increase

revenues or assets, through a series of milestones or Benchmarking|benchmarks of

business and promotional activities.

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Target markets - Differentiated marketing strategy

1 One where the company decides to provide separate offerings to each different market

segment that it targets. It is also called multisegment marketing and as is clearly

seen that it tries to appeal to multiple segments in the market. Each segment is

targeted uniquely as the company provides unique benefits to different segments. It

increases the total sales but at the expense of increase in the cost of investing in the

business.

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Multicultural marketing - Creating a multicultural marketing strategy

1 Multicultural marketing focuses on customizing messaging and

marketing channels for each target group, as opposed to simply

translating a general message into different languages, or including token representation of different

ethnic groups in imagery.

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Multicultural marketing - Creating a multicultural marketing strategy

1 Multicultural marketing is also complicated by the degree of

mainstream cultural assimilation within ethnic groups themselves. Some segments, such as recent

immigrants, may highly prefer use of their mother tongue, have limited

proficiency in the local language, and be highly geographically

concentrated. Other groups, such as second-generation individuals born in the new homeland, may be bicultural

but have less proficiency in their parent's mother tongue and be more

geographically dispersed.

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Multicultural marketing - Creating a multicultural marketing strategy

1 An ethnic marketing strategy is developed around the values and attitudes distinctive to a particular

ethnic group, and generally includes the following aspects:

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Multicultural marketing - Creating a multicultural marketing strategy

1 * Identification and collaboration with community

leaders

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Multicultural marketing - Creating a multicultural marketing strategy

1 * The promotion of culture, symbols and celebrations important to a precise target

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Multicultural marketing - Creating a multicultural marketing strategy

1 * Enhancing and focusing on the cultural uniqueness of

ethnic group

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Multicultural marketing - Creating a multicultural marketing strategy

1 1) Understand cultural differences in communication patterns, values, and

behavior in the target ethnicities.

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Multicultural marketing - Creating a multicultural marketing strategy

1 2) Assess cultural affinity among ethnic audiences.

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Multicultural marketing - Creating a multicultural marketing strategy

1 3) Segment the ethnic audiences based on the level of cultural affinity,

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Multicultural marketing - Creating a multicultural marketing strategy

1 4) Evaluate the need for

adjustments in strategy and tactics.

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Multicultural marketing - Creating a multicultural marketing strategy

1 5) Explore culturally acceptable/unacceptable,

sensitive/insensitive advertising messages among the identified

segments,

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Multicultural marketing - Creating a multicultural marketing strategy

1 7) Evaluate the effectiveness of advertising campaigns among different target segments.

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Budweiser - 2011 can design marketing strategy

1 Traditional Budweiser cans embodied a strong

sense of American patriotism

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Budweiser - 2011 can design marketing strategy

1 This change in can design was very shocking for a brand that had

remained relatively static since its beginning

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Budweiser - 2011 can design marketing strategy

1 Although the more modern design is intended for young male Americans, the new design, according to the vice

president of Anheuser-Busch Frank Abernante, is one of many steps in our quest to reinforce Budweiser's role as a truly global beer brand.

This statement means that the new design was intended for foreign

markets as well. In fact, Budweiser began selling its beer in Russia in

2010, and is currently expanding its operations in China.

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Budweiser - 2011 can design marketing strategy

1 Statistics show that China is the world's leading consumer of beer in

terms of volume, which suggests that Budweiser is trying to capitalize on this market's potential in order to

recover from these losses

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Budweiser - 2011 can design marketing strategy

1 The company hoped that the new design would appeal to a younger

crowd in the American market, while simultaneously gaining the interest

of Chinese consumers

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Profit impact of marketing strategy

1 Data from the study is used to craft strategies in strategic management and marketing strategies|marketing

strategy

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Profit impact of marketing strategy

1 According to Lancaster, Massingham and Ashford (Essentials of Marketing, 4th edition, McGraw Hill), PIMS seeks

to address three basic questions:

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Profit impact of marketing strategy

1 * What is the typical profit rate for each type of business?

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Profit impact of marketing strategy

1 * Given current strategies in a company, what are the future operating results likely to be?

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Profit impact of marketing strategy

1 * What strategies are likely to help improve future operating

results?

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Profit impact of marketing strategy

1 Dibb, Simkin, Pride and Ferrell (Marketing Concepts and Strategies,

4th European edition, Houghton Mifflin) cite six principal areas of

information that PIMS holds on each business:

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Profit impact of marketing strategy

1 * characteristics of the business environment

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Profit impact of marketing strategy

1 * how the budget is allocated

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Profit impact of marketing strategy

1 * operating results.

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Profit impact of marketing strategy - Brief history of PIMS

1 The PIMS project was started by Sidney Schoeffler working at General

Electric in the 1960s, managed by the Marketing Science Institute in the

early 1970s, and has been administered by the American

Strategic Planning Institute since 1975.

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Profit impact of marketing strategy - Brief history of PIMS

1 It was initiated by senior managers at GE who wanted to know why some

of their business units were more profitable than the others. With the

help of Sidney Schoeffler they set up a research project in which each of

their strategic business units reported their performance on

dozens of variables. This was then expanded to outside companies in

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Profit impact of marketing strategy - Brief history of PIMS

1 The initial survey, between 1970 and 1983, involved 2,600 strategic business units (SBU), from 200

companies. Today 12,500 observations exist for 4162 SBU's;

PIMS is managed by PIMS Associates in London. Each SBU give information

on the market within which they operated, the products they had

brought to market and the efficacy of the strategies they had

implemented.

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Profit impact of marketing strategy - Brief history of PIMS

1 The PIMS project analysed the data they had gathered to identify the options, problems, resources and opportunities faced by each SBU. Based on the spread of each business

across different industries, it was hoped that the data could be drawn upon to provide other business, in the same industry, with

empirical evidence of which strategies lead to increased profitability. The database

continues to be updated and drawn upon by academics and companies today.

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Profit impact of marketing strategy - Conclusions drawn by PIMS

1 The original PIMS data survey led the PIMS project to identify 37 variables

which account for the majority of business success. Two leading

marketing texts differ slightly on which variables are the most

important, with Dibb, Simkin, Pride and Ferrell (p676) identifying:

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Profit impact of marketing strategy - Conclusions drawn by PIMS

1 * lower requirement for capital investment

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Profit impact of marketing strategy - Conclusions drawn by PIMS

1 While many of these seem obvious, PIMS has the advantage of providing

empirical data that define quantitative relationships and back

what some may consider to be common-sense.

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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits

1 PIMS evaluated businesses' market position and suggest possible strategies, based on the data gathered from participating

companies. Businesses wishing to use the service provide detailed

information, including details of their:

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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits

1 * assumptions about future sales.

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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits

1 In return, PIMS provides four reports, described by Lancaster, Massingham and

Ashford as:

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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits

1 1. A 'Par' report - showing the ROI and cash flows that are 'normal' for

this type of business, given its market, competition, technology, and

cost structure.

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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits

1 2. A 'Strategy Analysis' report, which computes the predicted

consequences of each of several alternative strategic actions, judged by information in similar businesses making similar moves, from a similar

starting-point and in a similar business environment.

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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits

1 3. A 'Report on Look-Alikes' (ROLA), which aimed at predicting the best combination of strategies for that particular company, by analysing

strategically similar business more closely.

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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits

1 4. An 'Optimus Strategy' report, which is aimed at predicting the best

combination of strategies for that particular company, again based on the experiences of other businesses

in 'similar' circumstances.

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Profit impact of marketing strategy - A critique of PIMS

1 Clearly, it could be argued that a database operating on information

gathered in the period 1970 - 1983 is outdated. However data continues to

be collected from participating companies and PIMS argues that it provides a unique source of time-series data, the conclusions from

which have proven to be very stable over time.

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Profit impact of marketing strategy - A critique of PIMS

1 It has also been suggested that PIMS is too heavily biased towards

traditional, metal-bashing industries, such as car manufacturing; perhaps not surprising, considering the era in

which the majority of the surveys were carried out. In reality, as of

2006, the 3,800+ businesses contained within the database

includes data from the consumer, industrial and service sectors.

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Profit impact of marketing strategy - A critique of PIMS

1 It is also heavily weighted towards large companies, at the expense of small

entrepreneurial firms

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Profit impact of marketing strategy - A critique of PIMS

1 A serious theoretical criticism has also been mentioned. An empirical correlation does not necessarily imply cause. There is no way of knowing whether high market

share caused the high Profit (accounting)|profitability, or whether high profitability caused the high market share. Or even more likely, a spurious factor such as

product quality could have caused both high profitability and high market share.

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Profit impact of marketing strategy - A critique of PIMS

1 Tellis and Golder (1996) claim that PIMS defines markets too narrowly.

Respondents described their market very narrowly to give the appearance

of high market share. They believe that this self reporting bias makes the conclusions suspect. They are

also concerned that no defunct companies were included, leading to

survivor bias.https://store.theartofservice.com/the-marketing-strategy-toolkit.html

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Marketing strategies - Developing a marketing strategy

1 Marketing strategy needs to take a long term view, and tools such as

customer lifetime value models can be very powerful in helping to

simulate the effects of strategy on acquisition, revenue per customer

and churn rate.

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Marketing strategies - Developing a marketing strategy

1 A key component of marketing strategy is often to keep marketing in

line with a company's overarching mission statement.Baker, Michael The Strategic Marketing Plan Audit

2008 ISBN 1-902433-99-8

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Marketing strategies - Developing a marketing strategy

1 Once a thorough environmental scan is complete, a strategic planning|strategic plan

can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to

attain these goals, and detail implementation. A final step in developing a

marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of

the plan.

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JetBlue - Marketing strategy

1 JetBlue’s first major advertising campaign incorporated phrases like

“Unbelievable” and “We like you, too”

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JetBlue - Marketing strategy

1 As JetBlue gained market share, they found a unique positioning where

they competed with other low-cost carriers (i.e

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JetBlue - Marketing strategy

1 During the company’s growth stage, advertising messages moved from

the engaging and customer oriented to less personal slogans and

campaigns. Frequent changes in its values statements resulted in mixed

and frequently wasted marketing dollars spent. Slogans varied from

“More” to “Happy Jetting” and many other failed

attempts.[http://www.jetblue.com/about/pressroom/index.html

JetBluePress Releases]. Jetblue.com. Retrieved December 22, 2010.

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JetBlue - Marketing strategy

1 A new marketing strategy has been partnerships with professional sports teams

and venues

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JetBlue - Marketing strategy

1 JetBlue also utilizes various forms of

advertising media

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JetBlue - Marketing strategy

1 According to Martin St. George, senior vice president of marketing

and commercial strategy at JetBlue, the new “You Above All” campaign was created to get JetBlue back to

their “DNA” and speak to the “core of who we are as a brand.” This motto is meant to support their efforts to always put the customer first and

“bring humanity back to air travel”.https://store.theartofservice.com/the-marketing-strategy-toolkit.html

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Market strategy - Developing a marketing strategy

1 A key component of marketing strategy is often to keep marketing in

line with a company's overarching mission statement.Baker, Michael The Strategic Marketing Plan Audit

2008 ISBN 1-902433-99-8

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Nike, Inc - Marketing strategy

1 Nike promotes its products by Sponsor (commercial)|sponsorship agreements with celebrity athletes,

professional teams and college athletic teams.

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Page 176: Marketing Strategy .

We Bring Good Things to Life - Marketing strategy

1 When GE advertising was consolidated in 1979 with BBDO, the “Good Things” slogan was not only

incorporated into media ads but also induced on all packaging, spec

sheets and brochures, and service trucks

https://store.theartofservice.com/the-marketing-strategy-toolkit.html