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Developing a Marketing Strategy & the Benefits

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Presentation on theme: "Developing a Marketing Strategy & the Benefits"— Presentation transcript:


2 Developing a Marketing Strategy & the Benefits
Identify a competitive advantage Tailored and effective marketing activities Market Segmentation Target Marketing Increased customer base Effective use of resources Positioning Develop marketing mix Positioning & differentiation Increased sales/profits Stimulates innovation

3 Develop Marketing Mix(es)
Overview of a Marketing Strategy Market Segmentation Market Targeting Market Positioning Develop Marketing Mix(es)

4 Defining Market Segmentation
…the process of dividing a market into similar groups Hair Salon Landscape Gardener Females 10yrs - 60yrs+

5 Essential Criteria of a Market Segment
Substantial: Large and profitable enough to serve Accessible: Can be effectively reached and served Differential: Segments must respond differently to different marketing mix elements Actionable: Effective marketing activities can be designed to attract and serve the segments Measurable: Size of segments can be measured

6 Geographical Demographic/ Firmographic Behavioural Psychographic
Segmentation Variables Consumer market Commercial Market Geographical County, region, town, postcode, mile radius Demographic/ Firmographic Age, gender, income, occupation, dependants, household composition Turnover, size, employees, business activity, industry Behavioural Usage rate, loyalty, impulse buying, benefit expectations, price sensitivity Usage rate, end product use, benefits sought, purchase procedure, buying status Psychographic Lifestyle, interests, attitudes, personality traits, opinions Socially responsible, entrepreneurial, employee focused, financially prudent

7 Market Segment Profile
Demographic/firmographic characteristics Location Needs/wants Benefits sought How much customers purchase How much customers spend Frequency of purchase Payment method Purchase decision factors Attitudes towards product or service Brand loyalty Mediums used to source product or service

8 Target Marketing Strategies
mix Market UNDIFFERENTIATED MARKETING Segment 1 Marketing mix Segment 2 Segment 3 CONCENTRATED MARKETING Marketing mix 1 Segment 1 Marketing mix 2 Segment 2 Marketing mix 3 Segment 3 DIFFERENTIATED MARKETING

9 Marketing Strategies & Factors to Consider
Resources Capabilities Product variability Market variability Competitors' marketing strategies Market environment

10 Evaluating Market Segments
Expected growth rates Demand Profitability Competition intensity Competitive advantage Speed of payment Price sensitivity Cost of marketing activities Compatible with business aims and objectives

11 Quantitative Measures of Market Segment Attractiveness
Key Success Factors Market Segment 1 2 3 4 Sales potential 8 6 Competition intensity Sensitivity to price 7 5 Market growth rate Market size Ability to meet needs Total 17 41 30 44

12 Positioning Strategies
Product attributes Usage occasions Users Against a competitor Away from competitors Product classes A combination of the above approaches

13 . . Positioning Map High Prestige Inexpensive Expensive Low Prestige
Product b . Product a Inexpensive Expensive Product d Product c Low Prestige

14 A Model of Competitive Advantage
Cost advantage Or Differentiation Advantage Value Creation Customers Your Business

15 + Developing an Image/Brand Company Image = Logo Company Identity
Branding Competitive advantage Company Image Name + = Colours Logo Commitment to quality Consistency of use

16 Marketing Mix/4Ps Market Marketing Mix Or Segment 1 Segment 2
Customer solution Product Price Place Promotion Cost Convenience Communication

17 Augmented Product level
Product Levels Guarantee Core product level Actual product level Features Market Or Segment 1 Segment 2 Segment 3 Delivery Packaging Core Benefit or function Support service Size Attributes After sales Augmented Product level

18 Relationship benefits
Three Dimensions of Customer Benefits Market Or Segment 1 Segment 2 Segment 3 Functional benefits Process benefits Product Or Service Relationship benefits

19 Pricing Approaches Market Or Cost Based Pricing Cost plus pricing
Breakeven Buyer Based Pricing Perceived value pricing Market Or Segment 1 Segment 2 Segment 3 Competition Based Pricing Going rate pricing

20 Place/Distribution Market Product Service Direct to customer Or
Segment 1 Segment 2 Segment 3 Product Service Intermediary Agents Retailers Distributors Internet

21 Aim of Promotion Positioning/branding/image
Move customers through the decision making process (DMP) Decision making process (DMP) Unawareness Awareness Attitude Action Interest Desire

22 Promotional Mix & Effectiveness in the DMP process
Personal selling Public Relations Sales promotions Level of effectiveness Advertising Awareness Attitude Action (Interest, desire)

23 Communicating the Message
Noise Your Business Customer Message Encoding Decoding

24 Promotional Plan Checklist
Mission Who you are targeting Aims & objectives Money Budget Costs Image/branding/positioning Costs Logistics/timeframes Integration with the marketing mix Accessibility within market segments Method Image/branding/positioning Information – product/business Features & benefits Message Evaluation Effective/feedback Cost effective Monitoring

25 Ansoff’s Product/Market Matrix
Existing Markets New Markets Market penetration Market development Existing Products Increase sales in existing market Introduce current product into new markets Product development Diversification Products New Develop existing or new products for existing markets New products or related products for new markets

26 Evaluation and Control Process
5 Evaluation and Control Process Take corrective action NO 2 3 1 4 Determine what to measure Establish standards for comparison Measure performance Is performance >/ = standards? Continue with marketing activity Yes

27 Marketing Measurement Methods
Customer satisfaction Satisfaction surveys Customer feed back forms Formal/informal meetings with customers Sales variances Sales/cash flow analysis Profit margin analysis Marketing cost effectiveness Marketing costs ratios e.g. Marketing costs Sales

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