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AGENDA
Review of Hierarchy of Objectives
Common Elements of Objectives
The Process of Marketing Strategy Development
BIO-BREAK
The Evaluation of Opportunities
Target Market Selection
The Structure of Marketing Mix Strategies
BIO-BREAK
Generic Marketing Strategies
Product Strategies
Market Position Strategies
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HIERARCHY OF GOALS AND OBJECTIVES
Organizational Goals and Objectives
Marketing Goals and Objectives
Marketing Mix Goals and Objectives
Marketing Mix Element Goals and Objectives
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WHAT BUSINESS ARE YOU IN?
Mission statement
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Statement of marketing strategy
•
Indicates product, market scope
•
Shows growth factor
•
Shows differential advantage
•
Shows management orientation
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ELEMENTS OF OBJECTIVES
AN
EFFECT
• Benchmark + effect = Desired Outcome
• Effect has to be measureable
• Should be realistic
Timeframe for evaluation
Evaluation and effect should be related
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MARKETING STRATEGY DEVELOPMENT
Recognize and evaluate an opportunity
• Market size and potential
• Key competitors
Choose target market
Develop Objectives for each opportunity
Develop Marketing Mix Strategy for each
opportunity
Choose Marketing mix elements
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OPPORTUNITY EVALUATION
1
2
3
REVIEW OF THE
RULE OF 3
REVIEW OF REQUIREMENTS
FOR MARKET SIZE
REVIEW OF RELEVANT
COMPETITIVE SET
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TARGET MARKET SELECTION
INTRODUCTION TO
MARKET
SEGMENTATION
EQUIVALENT
BEHAVIORS AS THE
CRITICAL VARIABLE
REVIEW OF THE
STRATEGIC
OPTIONS
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STRUCTURE OF MARKETING MIX STRATEGIES
Are all Mix elements equally important?
Product as the key
Example using Product Life Cycle
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GENERIC MARKETING STRATEGIES
COST
LEADERSHIP
Lower costs of production and distribution
PRODUCT
DIFFERENTIATION Unique product or brand
Focus
Focus on customer needs in a few segments
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PRODUCT STRATEGIES
Product Mix Strategies
Market penetration versus market skimming
High
QUALITY
Premium
Goods
Penetration
Super Bargain
Medium
Over-Pricing
Average
Quality
Bargain
Low
Hit and Run
Shoddy Goods
Cheap Goods
High
Medium
Low
Price
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PRODUCT STRATEGIES
Product Market Growth Strategies
Market
Penetration
Product
Development
(increase usage)
Old
(new uses)
Market
Development
Diversification
Markets
New
(new users)
(new users, new
uses)
New
Old
Products
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PRODUCT STRATEGIES
Boston Consulting Group Strategy
•
•
Relative Market Share
Market Growth Rate
Problems with BCG Approach
Difficult to estimate relative market share
in rapidly growing markets
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BCG MATRIX
22%
?
Some cash use
Future cash cow
Market Growth
Rate
High cash use
? Is to build or not
10%
0%
Generate cash for
?, Stars
10x
Low or no cash use
When to divest
1.5x
.1x
(log scale)
Relative Market Share
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MARKET POSITION STRATEGIES
CONSCIOUS PARALLELISM
•
•
Similar products, prices
Avoid unprofitable segments
MARKET NICHE
•
•
Specialize in a very small group of customers
Concentrated segmentation strategy……
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MARKET CHALLENGER STRATEGIES (CONT.)
Cheaper Goods Strategy
• Lower quality but much lower price
• Vulnerable to still cheaper goods
Prestige Goods Strategy
• Increase both quality and price
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