2 - 1A Strategic A Strategic Marketing Marketing FrameworkFramework2 - 2A Complete Marketing Strategy2 - 3Marketing StrategyMarketing StrategyObjectivesObjectivesMission statements describe the Mission statements describe the customer orientation or business customer orientation or business philosophyphilosophyCorporate objectives state the Corporate objectives state the overall goals to be achieved in overall goals to be achieved in financial termsfinancial terms2 - 4Marketing StrategyMarketing StrategyCharacteristics of well-written Characteristics of well-written objectives:objectives:Lists a quantified standard of Lists a quantified standard of performanceperformanceDesignates a clear time frameDesignates a clear time frametates goal in measurable termstates goal in measurable termshould be challenging but realistichould be challenging but realistic2 - 5Marketing StrategyMarketing StrategyCustomer and competitor targetsCustomer and competitor targets!hich customer !hich customer groups should groups should be targeted"be targeted"#egin by #egin by considering considering the strategic the strategic alternatives alternatives 2 - 6Strategic Alternatives2 - 7Marketing StrategyMarketing StrategyMarket Market PenetrationPenetrationMarket Market DevelopmentDevelopment$argeting the company%s$argeting the company%s own customers own customershould be a high priority hould be a high priority$argeting competitor%s$argeting competitor%s customers customers&is'ier and more&is'ier and more e(pensive strategy e(pensive strategyCommon in slow growthCommon in slow growth mar'ets mar'ets)rice promotions are 'ey )rice promotions are 'ey*ey trategies*ey trategies2 - 8Marketing StrategyMarketing StrategyMarket Market PenetrationPenetrationMarket Market DevelopmentDevelopment$argeting non-buying$argeting non-buying customers in currentlycustomers in currently targeted segments targeted segments+s it profitable" +s it profitable"$argeting new$argeting new customers in newcustomers in new segments segments!ill it require the!ill it require the introduction of new orintroduction of new or modified products" modified products"*ey trategies*ey trategies2 - 9Marketing StrategyMarketing StrategyMar'et Development trategies:Mar'et Development trategies:Entering Foreign MarketsEntering Foreign Markets &equires decisions related to:&equires decisions related to:$he choice of country or countries to enter $he choice of country or countries to enter$he timing of the entry $he timing of the entry,ow to operate in the chosen countries ,ow to operate in the chosen countries-ive factors should be considered when -ive factors should be considered when deciding how to enter a foreign mar'etdeciding how to enter a foreign mar'et2 - 10 Factors Afecting Mode of Entry2 - 11Marketing StrategyMarketing Strategy)roduct -eatures)roduct -eatures.fter formulating .fter formulating objectives and objectives and determining determining customer and customer and competitor targets/ competitor targets/ the ne(t 'ey the ne(t 'ey decision is to decision is to select the specific select the specific features to include features to include in the product0in the product02 - 12Marketing StrategyMarketing Strategy)roduct -eatures)roduct -eaturesDifferent features are often used to Different features are often used to attract different segments0attract different segments0-eatures may be product-specific or -eatures may be product-specific or pac'age-related0pac'age-related0Creating several versions of a Creating several versions of a manufactured good can be very manufactured good can be very e(pensive0e(pensive0ervices and information pac'ages are ervices and information pac'ages are more easily tailored0more easily tailored02 - 13Marketing StrategyMarketing StrategyThe Value The Value PropositionPropositionDifferentiation Differentiation Product Product PositioningPositioningCore trategyCore trategy2 - 14Marketing StrategyMarketing StrategyThe Value The Value PropositionPropositionDifferentiation Differentiation Product Product PositioningPositioningummari1es into a ummari1es into a single paragraph:single paragraph:$he customer $he customer$he competitive targets $he competitive targets$he customer%s reason$he customer%s reason for buying your brand for buying your brand-orms the basis for-orms the basis forthe mar'eting mi(the mar'eting mi(Core trategyCore trategy2 - 15Marketing StrategyMarketing StrategyThe Value The Value PropositionPropositionDifferentiationDifferentiation Product Product PositioningPositioningCompetitive advantagesCompetitive advantages 2C.3 should have three2C.3 should have three characteristics: characteristics:C. should generateC. should generate customer value customer value+ncreased value must be+ncreased value must be perceived by theperceived by the consumer consumerC. should be difficult toC. should be difficult to copy copyCore trategyCore trategy2 - 16Product & Service Product & Service DecisionsDecisions*ey Decisions*ey DecisionsMarketing StrategyMarketing StrategyGeneral Approaces to General Approaces to Creating Competitive Creating Competitive AdvantageAdvantage Cost- or price-based advantageCost- or price-based advantage 4uality-based or differentiation 4uality-based or differentiation advantageadvantage )erceived quality or brand-)erceived quality or brand- based advantagebased advantage5 - 672 - 17Marketing StrategyMarketing StrategyCost- or )rice-#ased .dvantageCost- or )rice-#ased .dvantageDifficult to achieveDifficult to achieve$wo primary methods of creating a cost- $wo primary methods of creating a cost- or price-based advantage:or price-based advantage:#eing the largest producer and benefiting#eing the largest producer and benefiting from economies of scale from economies of scale$a'ing advantage of the e(perience curve $a'ing advantage of the e(perience curvetrict cost control can also help smaller trict cost control can also help smaller firms or those with less e(perience to firms or those with less e(perience to develop a cost-based advantagedevelop a cost-based advantage2 - 18Marketing StrategyMarketing Strategy4uality-#ased Differentiation4uality-#ased DifferentiationDevelopment of an observable Development of an observable difference that is valued by difference that is valued by customerscustomers$ypically implies higher costs$ypically implies higher costs.llows for both higher prices and .llows for both higher prices and higher marginshigher marginsDifferentiation can occur at any Differentiation can occur at any point within the value chainpoint within the value chain2 - 19Product & Service Product & Service DecisionsDecisions*ey Decisions*ey DecisionsMarketing StrategyMarketing StrategyDiferentiation !pportunities Diferentiation !pportunities "itin te #alue Cain"itin te #alue Cain+nbound +nbound LogisticsLogisticsOperational Operational .dvantages.dvantages5 - 68Outbound Outbound LogisticsLogisticsMar'eting Mar'eting and alesand aleserviceervice2 - 20Marketing StrategyMarketing Strategy)erceived 4uality or #rand-#ased )erceived 4uality or #rand-#ased DifferentiationDifferentiation)erceptual product differences are often )erceptual product differences are often used for differentiation when actual used for differentiation when actual differences are small/ hard to achieve/ differences are small/ hard to achieve/ or difficult to sustainor difficult to sustain)rice/ distribution/ and mar'eting )rice/ distribution/ and mar'eting communications can all contribute to communications can all contribute to brand-based differentiationbrand-based differentiation$horough understanding of consumers% $horough understanding of consumers% perception of your brand compared to perception of your brand compared to competitors is requirecompetitors is require2 - 21Marketing StrategyMarketing StrategyThe Value The Value PropositionPropositionDifferentiation Differentiation Product Product PositioningPositioning)ositioning creates a clear)ositioning creates a clear image in the mind of theimage in the mind of the consumer of what theconsumer of what the product stands for and howproduct stands for and how it is different fromit is different from competitive offerings competitive offerings+nvolves both actual and+nvolves both actual and perceived differentialperceived differential advantages advantages&epositioning can be&epositioning can be difficult for high awarenessdifficult for high awareness brands brandsCore trategyCore trategy2 - 22Marketing StrategyMarketing StrategyMar'eting Mi(Mar'eting Mi(+mplementation of +mplementation of the mar'eting mi( the mar'eting mi( ma'es the ma'es the strategy strategy operationaloperationalConsistency Consistency between strategy between strategy and the actual and the actual implementation is implementation is criticalcritical2 - 23 Ensuring a Segment$Focused Strategy2 - 24%e Product &ife Cycle2 - 25Product &ife Cycle Product &ife Cycle Marketing StrategiesMarketing StrategiesConceptual tool best applied to product Conceptual tool best applied to product categories rather than specific brands categories rather than specific brands trategy options and the importance of trategy options and the importance of mar'eting mi( variables vary across each mar'eting mi( variables vary across each stage of the )LCstage of the )LC9ot all product categories follow the 9ot all product categories follow the standard )LC curvestandard )LC curve2 - 26Product &ife Cycle Product &ife Cycle Marketing StrategiesMarketing StrategiesIntroductionIntroductionGrowth Growth MaturityMaturityDeclineDeclineMar'et si1e and growth rateMar'et si1e and growth rate are low are lowelling : advertising: focuseselling : advertising: focuses on the generic product on the generic product)ricing:penetration or)ricing:penetration or s'imming s'immingDistribution: limited asDistribution: limited as product is unproven product is unproven-irst-mover advantage -irst-mover advantagetage of )LCtage of )LC2 - 27Product &ife Cycle Product &ife Cycle Marketing StrategiesMarketing StrategiesIntroductionIntroductionGrowthGrowth MaturityMaturityDeclineDeclineCharacteristics: Characteristics:;rowing competition ;rowing competition)rice pressure )rice pressureMar'et segmentation Mar'et segmentation*ey strategic issues: *ey strategic issues:Mar'et leader Mar'et leader-ight or flee-ight or flee Mar'et follower Mar'et follower