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Contents:
Section 1 : Market Scope Strategy
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Requirements: (a) Serve the market wholeheartedly despite initial difficulties (b) Avoid competition with established firms.
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1. First In Strategy
Entering the market before all others. Requirements: (a) Willingness and ability to take risks (b) Technological competence (c) Strive to stay ahead (d) Heavy promotion (e) Create primary demand (f) Carefully evaluate strengths.
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Product Strategy
1. Product Positioning Strategy 2. Product Repositioning Strategy 3. Product Scope Strategy 4. Product Design Strategy 5. New Product Strategy
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Reviewing the current positioning of the product and its marketing mix and seeking a new position for it that seems more appropriate.
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Requirements: (a) If this strategy is directed toward existing customers, repositioning is sought through promotion of more varied uses of the product
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(b) If the business unit wants to reach new users, this strategy requires that the product be presented with a different twist to the people who have not been favorably inclined toward it. In doing so, care should be taken to see that, in the process of enticing new customers, current ones are not alienated
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(c) If this strategy aims at presenting new uses of the product, it requires searching for latent uses of the product, if any. Although all products may not have latent uses, there are products that may be used for purposes not originally intended.
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The product-design strategy deals with the degree of standardization of a product. The company has a choice among the following strategic options: standard product, customized product, and standard product with modifications.
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Objectives: (a) Standard product : to increase economies of scale of the company (b) Customized product : to compete against mass producers of standardized products through product-design flexibility (c) Standard product with modifications : to combine the benefits of the two previous strategies.
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A set of operations that introduces (a) within the business, a product new to its previous line of products (b) on the market, a product that provides a new type of satisfaction.
Three alternatives emerge from the above: product improvement/modification, product imitation, and product innovation.
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Requirements: A new-product strategy is difficult to implement if a new product development system does not exist within a company.
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Five components of this system should be assessed: corporate aspirations toward new products organizational openness to creativity environmental favor toward creativity screening method for new ideas, and evaluation process.
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Promotion Strategy
1. Promotion Mix Strategy
2. Media Selection Strategy 3. Advertising Copy Strategy
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(a) Product factors: (i) nature of product (ii) durable versus nondurable (iii) perceived risk (iv) typical purchase amount
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Designing the content of an advertisement. Objective: To transmit a particular product/service message to a particular target.
Requirements:
source credibility
balance of argument message repetition
Distribution Strategy
1. Distribution Scope Strategy
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Establishing the scope of distribution, that is, the target customers. Choices are exclusive distribution (one retailer is granted sole rights in serving a given area), intensive distribution (a product is made available at all possible retail outlets), and selective distribution (many but not all retail outlets in a given area distribute a product).
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Requirements: Assessment of : customer buying habits gross margin/ turnover rate capability of dealer to provide service capability of dealer to carry full product line product styling
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Pricing Strategy
1. Pricing Strategies for New Products
2. Pricing Strategies for Established Products 3. Price Flexibility Strategy 4. Price Leadership Strategy
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Objectives: (a) To act defensively and cut price to meet the competition (b) To act offensively and attempt to beat the competition (c) To respond to a customer need created by a change in the environment.
Requirements: (a) Firm must be financially and competitively strong to fight in a price war if that becomes necessary (b) Must have a good understanding of the demand function of its product.
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Charging the same price to all customers under similar conditions and for the same quantities.
Objectives: (a) To simplify pricing decisions (b) To maintain goodwill among customers.
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Requirements: Detailed analysis of the firm's position and cost structure as compared with the rest of the industry
Information concerning the cost variability of offering the same price to everyone
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Knowledge of the economies of scale available to the firm Information on competitive prices; information on the price that customers are ready to pay.
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Usually this strategy is implemented in one of four ways: (a) by market (b) by product (c) by timing (d) by technology.
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Source of Reference: Subhas Jain, Marketing Planning and Strategy, Prentice Hall International. You can obtain this excellent book at this link:
http://www.amazon.com/Marketing-Planning-Strategy-SubhashJain/dp/075933871X/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1219803933&sr=1-1
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