05. marketing strategy

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Marketing strategy.

Marketing strategy defines the broad principlesby which business unit expects to achieve it’smarketing objectives in a target market.

It consists of basic decisions on total marketing

expenditures, marketing mix & marketingallocation.

Marketing strategy is a basic statement aboutthe desired impact to be achieved on demand in

a given target market.Marketing is merely a civilized form of warfare in

which most battles are won with words, ideas &disciplined thinking.



Marketing strategy –

1. Stimulating primary demand by –

a. Increasing no. of users.

b. Increasing the rate of purchase.

2. Stimulating selective demand by –

a. Retaining existing customer.

b. Acquiring new customer.



1. Marketing strategy for stimulating primary demand.

a. Increasing no. of users by –

i) Increasing willingness to buy –

- Advertise benefit of product form or class.

- Develop product line extension.

ii) Increasing ability to buy –

- Reduce price.

- Provide financing.

- Provide broader distribution.



b. Increase rate of purchase –

i) Broadening product usage.

ii) Increasing product consumption level.

iii) Encourage replace due to product redesign -

- Promote alternative uses.

- Design new benefits for existing customer.

- Reduce price.

- Repackage in different sizes.

- Promote uses of related products.



2. Marketing strategy for stimulating selective

demand.

a. Retention of customer by –

i. Retention of satisfaction for product

performance –

Advertise quality.

Advertise familiarity.

Redesign products.

Provide special services.



ii. Simplifying the buying process – Provide superior delivery.

Offer bundles of products.

Use sole source selling.

Provide price protection.

Use system selling.ii. Reducing attractiveness of or

opportunities of switching –

Develop brand extension.

Offer multiple brands.

Facilitate system expendability.

Reduce price.



b. Acquisition of customers by –

i. Head to head positioning – Develop superior features on determinant

attributes.

Reduce price. Advertise more.

Use broader distribution.

i. Differentiated positioning – Design & promote unique benefits.

Use unique distribution channels, packageservice, pricing.



Selecting a marketing strategy.

The marketing strategy must be consistent with

product objectives.

Problems & opportunities regarding buyer needs, market measurements & profitability must

be determined from situation analysis.

The problems & opportunities associated with

implementing a strategy must be considered.Competitive analysis for selective demand

strategies.



The marketing strategy selection process.

Product objective

Situation analysis Competitive analysis

Marketing strategy



I. Product objective – Marketing strategy.

1. To achieve viable level of sales.

Primary – increase no. of users.

2. To achieve viable market share. ( New brand )

Selective – acquisition of customers.

3. Market share growth.

Selective – acquisition of customers.

4. Market share maintenance.

Selective – acquisition & retention of customer.



5. Cash flow maximization.

Selective – retention or primary – increase rate

of purchase.

6. Sustaining profitability.

Selective – retention in limited segment.

7. Harvesting.

Selective – retention with minimum effort.



II. Implication for primary demand strategy &

programs.

Market measurement & forecasting.

Market analysis & market segmentation.



III. Implication for selective demand strategy &

programs.

Company sales forecast & productivity

estimates.

Profitability analysis.

Situation analysis will provide insight into –

a. What factors influence buyer search & choice.

b. Buyer usage pattern & related use products &

service.c. Who the primary competitors are?

d. What alternative segmentation opportunities

exist?



IV. Developing & using competitive analysis elements.

1. Competitive market share.2. Competitive attribute analysis.

3. Competitive distribution analysis.

o Number of retailers, whole sellers carryingproducts.

o Amount & visibility of shelf space given.

o Amount of distributors selling effort.

o Inventory carried by distributor.o Costumer service level.

o Degree to which the type of outlets used isconsistent with buyer patronage.



4. Competitive resource analysis.o Sales force size, call frequency, experience.

o Advertising & promotional budgets.

o Production capacity, technology & economiesof scale.

o Relative contribution margin.

05. marketing strategy

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