Marketing strategy.

Marketing

strategy defines the broad principles by which business unit expects to achieve its marketing objectives in a target market. It consists of basic decisions on total marketing expenditures, marketing mix & marketing allocation. Marketing strategy is a basic statement about the 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, package service, 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.

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.
1.

5.

6.

7.

Cash flow maximization. Selective retention or primary increase rate of purchase. Sustaining profitability. Selective retention in limited segment. Harvesting. Selective retention with minimum effort.

II. Implication for primary demand strategy & programs.

Market Market

measurement & forecasting. analysis & market segmentation.

III. Implication for selective demand strategy & programs.

a. b. c. d.

Company sales forecast & productivity estimates. Profitability analysis. Situation analysis will provide insight into What factors influence buyer search & choice. Buyer usage pattern & related use products & service. Who the primary competitors are? What alternative segmentation opportunities exist?

IV. Developing & using competitive analysis elements.

1. 2. 3. o o o o o o

Competitive market share. Competitive attribute analysis. Competitive distribution analysis. Number of retailers, whole sellers carrying products. Amount & visibility of shelf space given. Amount of distributors selling effort. Inventory carried by distributor. Costumer service level. Degree to which the type of outlets used is consistent with buyer patronage.

4. o o o o

Competitive resource analysis. Sales force size, call frequency, experience. Advertising & promotional budgets. Production capacity, technology & economies of scale. Relative contribution margin.