Marketing Strategy Framework Primer
Download as PPTX, PDF8 likes4,203 views
The document outlines a comprehensive marketing strategy framework, emphasizing the importance of customer value creation and market orientation. It details processes like market segmentation, competitive analysis, and positioning, while highlighting the roles of customer loyalty and brand management. Various marketing components such as the 4 P’s (product, price, place, promotion) and different analytical tools are discussed to enhance marketing effectiveness.
Marketing Strategy Framework Primer
- 1. Marketing Strategy Framework What is Marketing? Create value for customers, company & competition The Loyalty Effect: Customer loyalty leads to employee &investor loyalty 1 Market Orientation B2B - 5 Goals & Objectives Firms must define themselves Buying Center – similar to decision making unit in B2C, Financial and non: perceptions, positioning, awareness from customers’ viewpoint identify who, their role, what they care about and define Market orientation - Long Understand the roles of the buying center/buying team. 6 Market Segmentation, Targeting and Positioning (STP) term profit and solution Isolate individual customer benefits. 1. Identify groups who share same desired benefits, and focuses Value Stack - match between benefits and buyer center descriptive characteristics & needs Customer orientation: Create market strategy (sales calls, macomm, incentives, (demographics, psychographics (VALs) & behavior) or quality, loyalty, & etc.) by applying customer benefits to specific “players”. behavioral considerations & characteristics but are satisfaction 3 Competitive Analysis: Demand & sufficiently different. Then rate on homogeneity of Competitor orientation supply side competition, identify, needs/wants/desires, size, profitability, measurable, subs Competitors Interfunctional understand (competitor profiles), and tantial, accessible, and differentiable. Indirect/ coordination predict. Direct Potential 2. Cluster groups & develop prototypical customer profiles Consumer (Demand) Side - What other brand 3. Analyze company and competitors Meta analysis shows MO focused firms are more will you buy if brand X was not in stock? 4. Select Targets: Customer, competitive & company successful; increase MO by one unit, increase innovation analyses. Supply Side - What product do, will or have by .46 used to satisfy need/want/desire X? 1.Collect data on each Customer Analysis – B2C & B2B 1. Market evolution is the function of: Firm-controlled events competitor in five areas: (own strategy);Firm-influenced events (competitors’ actions; ability to: conceive & economy); and Uncontrolled events (demographics; econ.). design, produce, market, 2. Integration of strategies: coordinating and leveraging finance, and investment, production/manu. and marketing strategies manage/execute 2 Costumer Market Analysis • Experience Curve + High Capital Intensity=> Low 2.Place in competitor Size, potential, growth, shares, macro part of ‘external’ cost, making low price feasible capability matrices: one analysis, PEST : Political, Economic, Social, and • R&D (Mfg. Qlty.) + Advtg. (Perceived Qlty./Image) + Wide per segment Technological aspects Dist. => High Unit sales 3.Need to consider B2C - Framework to Understanding Customers (3 3. Globalization of markets: Extension of manu cost advantage competitive reactions Dimensions) across markets, experience curve &cross-subsidization Involvement – Involvement in the purchasing process and 5. Develop Positioning for the brand/product. 4. Role of experimental and adaptability in strategy extent to which the customer feel product is important. If • Positioning Criteria: formulation. “Top-down” versus “learning by doing.” spend a lot of time searching for alternatives, then high • Product/Market Fit: Revenue/Profit/Market Share • Competitive frame of reference likelihood of involvement. considerations 4 Company Analysis – Can we do it? • Product/Company Fit: Fit with company’s resources Can be influenced, depends on situation, consumer, & Resources & Capabilities, Integrative SWOT product/service and skills Internal: Strengths & Weaknesses (SW) Benefits: functional (utilitarian) or ego-expression – mix of • Mental /perceptual map: associations consumer has with External: Opportunities & Threats (OT) both usually brand. Strategic Marketing Framework 3 stages of consumer behavior lead to marketing • Perceptions formed by: the market, consumers’ own Situation Analysis mindsets and stage in life, competition, and the implications: Internal Analysis External Analysis Choice (decision making process) Nature of Search/Info Goals, Resources Consumers, Customers, company’s actions. Gathering, Decision Sequence, Evaluation of & Capabilities Competitors: look at 4 P’s, PEST • Requires three things: Alternatives, Decision Rules, Role of Price, and the 1.Competitive Frame of Reference – brands competing Decision Model in situations Segmentation/Targeting/Positioning Implement with(actual and potential/aspirational) Usage/consumption experience: basis of sat. and Analyze Identify Select Develop Monitor, 2.Identifying optimal Points-of-Difference(POD) & Buyer Market Target Positioning & Adapt, loyalty, nature of relationships, and consequence of Behavior Segments Segments VP Strategy & Renew Points-of-Parity relationship – consumer missionaries • PODs – attributes/benefits consumers associate with Post-purchase/consumption: satisfaction with the • 3 Criteria: Desirable to consumer, Deliverable by the Marketing Program(s) company, and Differentiation from competitors product and issues relating to how the product is Product Place Price Promotion disposed off/reused, extent of service required to New Products Channel Choice Pricing Strategy Promotion 3.Creating a brand mantra that summarizes the enhance consumer satisfaction and loyalty. Product Policy & Management & Tactics Communication positioning
- 2. 7 Marketing Research Place/Distribution 9 Brand 1. Define the ‘Problem’. 1.Who has power in the channel? Why? 1. Brand affects customer perception of objective attributes 2. Generate Hypotheses. • Brand vs. Store 2. Strong brands can command premium prices 3. Identify information gaps and information availability. • Pull (customer demand) vs. Push 3. Strong brands facilitate entry into new markets – 4. Determine research need, design research program, & 2. How can we increase our power in the channel? extensions, co-branding and licensing/merchandising decide research sequence/data collection methods. • Coercion 4. Strong brands reduce cost of launching new products 5. Plan Sampling and collect data. • Reward 5. Brand simplify decision making 6. Analyze and Interpret. • Partnership 6. Command higher loyalty 7. Report. 3. Long term strategy vs. Short term tactics 7. Attract better employees 8. Recommend Marketing Actions. • Hardest marketing mix element to change. 8. Provide leverage with distribution channels Can be a source of competitive advantage, particular in Customer based brand equity tool 8 4 P’s - Product Strategy: Product, Promotion, Place & Price Brand Familiarity maturity and decline phase of the PLC. Product Channels must mesh with: Recall Product Life Cycle • Market conditions Recognition • Introduction: one pioneer, high resource costs, few • Consumer/segment buying preferences Brand Associations designs • Competitive issues Perceived Quality • Growth: differentiation, access, selective demand • Company’s resources/skills/capabilities, Other Associations Product Design Issues • The other 3 Ps, and Brand Loyalty • Multi-attribute model • Economic considerations. Purchase loyalty • Product vs. services Promotion – 7 M’s Emotional/Attitudinal Loyalty • Brand and line extensions 1. Markets: Market, competition To build strong band, consider all of the touch points • Image 2. Motives: Consumers, segments, needs Pre- purchase, purchase and post-purchase ex • Associations – attributes or benefits (ego, utilitarian) 3. Mission: What is the goal of advertising? • Positive or neg? 4. Message: What to say? And how to say it? Customer Service 5. Money: How much? Web Site 6. Media: Through what media? And when? Billing 7. Measures: To what effect? Pre- Post-purchase purchase Advertising Pricing – Three keys: Loyalty Programs Experience • Internal company costs Experien ce • Competition Product Quality Collateral • Customer Value Purchase Economic Based Approach Experience • Cost-based – average of 35% add – focus is on costs Product/Service Sales Force • Positioning based – what will strengthen the price – too low Assortment shifts position Point-of-Purchase • Demand based - Price sensitivity Displays Product Positioning • Elasticity = % change in quantity demanded/ 10 Implementation • Good positioning statements include who the customer % change in price • Need positive senior mgmt leadership behaviors is, the needs fulfilled by the products, and why the • Low when high demand or want specific • Requires some common membership across planning & product is the best option to satisfy those needs • High when switching costs implementation teams • Helps define the marketing mix • Value-based – based on what customers are willing to pay • Cross-functional supportiveness within the strategic Product differentiation vs. what it costs to make business units (SBU) • Horizontal – different tastes – identify needs to served Psychological Based Approach • Formalization and sophistication of marketing planning by a competitor • Perception of price difference: Weber-Fechner Law: Buyers process • Vertical – different willingness to pay for quality perceive price differences in percentage terms not in • Avoidance of behavioral planning problems • Tools of differentiation – absolute terms ($400 savings - more if 25% vs. 2.5% • Positive signals from the organizational environment product, price, packaging, service • Reference Price: std of comparison, becomes benchmark • Regular & thorough follow-up using mutually agreed upon • Brands – denote and connote • Skimming: high prices then lower to maximize profits measures - What gets measured gets done • Penetration: low initial price to win market share