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DEVELOPING MARKETING STRATEGIES II S.W.O.T VALUE CHAIN SEGMENTATION, TARGETING, POSITIONING (S.T.P) MARKETING MIX 4Ps STRATEGY
SWOT Analysis
SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is an important tool for auditing the overall strategic position of a business and its environment.
SWOT is commonly used as part of strategic planning and looks at: Internal strengths Internal weaknesses Opportunities in the external environment Threats in the external environment
SWOT DISCOVERY
What the business does better than the competition What competitors do better than the business Whether the business is making the most of the opportunities available How a business should respond to changes in its external environment
(S.T.P)
"Process of defining and sub-dividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics". A successful market strategy strives to understand different segments and its different needs; works on the exhibited common wants; and responds immediately.
Targeting Strategy
Once a firm has successfully identified the segments within a market, the next step is to target these segments with products that closely match the needs of the customers within that segment. Two important factors to consider: attractiveness (size, growth, competition) and the fit (suitability) between the segment and the firms objectives, resources and capabilities.
Targeting Strategies
Single segment strategy (Concentrated/Niche) - a strategy of choice for smaller companies with limited resources. Selective specialization (Differentiated) different marketing mixes are offered to different segments. The products itself may or may not vary but the promotional message or distribution channels vary. Product specialization specialized in a particular product and tailors it to different market segments. Market specialization specializes in serving a particular market segment and offers that segment an array of different products Full (Mass) market coverage (Undifferentiated) the attempts to serve the entire market by means of either a mass market strategy in which a single undifferentiated marketing mix is offered to the entire market, or by a differentiated strategy in which a separate marketing mix is offered to each segment.
Positioning Strategy Positioning is the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.
Positioning Approaches?
Specific product features Benefits, problem solution, or needs Specific usage occasions User category Against another product Product class dissociation
Competitive Positioning
Competitive positioning is about defining how youll differentiate your offering and create value for your market. Its about carving out a spot in the competitive landscape and focusing your company to deliver on that strategy. A good strategy includes: Market profile: size, competitors, stage of growth Customer segments: groups of prospects with similar wants & needs Competitive analysis: strengths, weaknesses, opportunities and threats in the landscape Positioning strategy: how youll position your offering to focus on opportunities in the market Value proposition: the type of value youll deliver to the market
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External Market Environment Technological, Political and Legal Cultural and Social Economic
Product Strategy Product Positioning Strategy Product Repositioning Strategy Product Scope strategy Product Design strategy New Product Strategy
Promotion Strategy Promotion Mix Strategy Media Selection Strategy Advertising Copy Strategy
Pricing Strategy Pricing Strategies for New Products Pricing Strategies for Established Products Price Flexibility Price Leadership Strategy
2. Pricing for Established Products Maintaining the Price Reducing the Price Increasing the Price
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
Requirements: (a) relatively low price elasticity but relatively high elasticity with respect to some other factor such as quality or distribution, (c) reinforcement from other ingredients of the marketing mix