guide to allocate resources. evolves from an organizations overall corporate strategy and serves as a guide for specific marketing programs and policies. remember that marketing strategy is based from situation analysis
target markets the company wishes to pursue
marketing strategy and analysis (list)- three things to assess
opportunity analysis (market opportunities def)
a careful analysis of the marketplace should lead to alternative market opportunities a market is heterogeneous!
mkt op- areas where there are favorable demand trends, where customers needs and opportunities are not being satisfied
ranges from direct bran competition and indirect (substitutes) we are competing for discretionary income
competitors marketing programs have a major impact on a firms marketing strategy so they must be analyzed. The reaction of competitors to a companys strategy are VERY important (ex- cut price, increase promos, attack one another) aka pepsi and coke
also must think about foreign companies penetrating the US
something special a firm does or has that gives it an edge over competitors. ways o achieve a competitive advantage include having quality products that command a premium price, providing superior customer service, lowest production cost and lower prices, domination channels of distribution also- brand equity and differentiation
target market selection
must identify and becomes the focus of the firms marketing effort
the target marketing process
identifying markets with unfulfilled needs determining market segmentation selecting a market to target positioning through marketing strategies
identifying markets - step 1
isolates consumers with similar lifestyles, needs and the like and increases our knowledge of their specific requirements. the more we can establish this common gourd with consumers the more effective we will be in addressing these requirements in their communication programs and informing them
market segmentation step 2 plus def
is dividing up a market into distinct groups that 1- have common needs and 2 will respond similarly to a marketing action
The more the market becomes segment the more precise their understanding but the the fewer consumers there are in each segment- how far should we go? is this group accessible?
bases for segmentation list! 5!!!!
geographic segmentation (def)
approach where markets are divided into different geographic units. aka nations, states, counties or neighborhoods.
demographic segmentation def
dividing the market on the basis of demographic variables such as age, sex, family size, education, income, and social class ikea and women dove- women coca-cola- race BMW- income
dividing the market on the basis of personality and or lifestyles many consider lifestyle the most effective criterion for segmentation
lifestyle is based on an analysis of the activities, interests, and opinions of the consumer
values and lifestyle program- most popular option is programs. VALS divides america into 8 lifestyle segments that exhibit distinctive attitudes, behaviors, and decision makeing patterns it is an excellent predictor of consumer behaviors and a number of companies now employ use it
dividing consumers into groups according to their usage, loyalties, or buying responses to a product.
products or brand usage, degree of use, and brand loyalty are combined with demographic and or psychographic criteria to develop profiles of market segment
grouping of consumers on the basis of attributes sought in a product.
aka people buy products for different reason. so segmenting them on base of what need they are trying to satisfy.
ex- watch-water resistance, style, time accuracy
selecting a target market step 3 (2 parts)
determining how many segments to enter
determining which segments offer the most potential
determining how many segments to enter (selecting a target market part 1)) 3!!!
undifferentiated marketing- involves ignoring segment differences and offering just on product aka old black ford
differentiated marketing- marketing in a number of segments, developing separate marketing strategies for each aka Marriott
concentrated marketing- firm selects one segment and attempts to capture a large share of this market aka rolls royce
determining which segments offer potential (selecting a target market part 2)
determining the most attractive segment must examine the sales potential for the segment, the opportunities for growth, the competition, and its own ability to compete and must determine if we have the capabilitiesand resources to market to this segment
positioning through marketing strategies
positioning- has been defines as the are and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition.
positioning is he key factor in communicating the benefits it offers
positioning by product attributes and benefits
a common approach to positioning is setting the brand apart form competitors on a basis of the specific characteristics or benefits offered.
salient attributes-are the basis for making a purchase decision
positioning by price/quality
price/quality characteristics to position their brands. they do this with ads that reflect the image of a high-quality brand where cost, while not irrelevant is considered secondary to the quality benefits derived from using the brand
need both quality and good price
positioning by use of application
associating a product with a specific use or application aka arm and hammer
positioning by product class
example of Amtrak positioning itself as an alternative to airplanes.
positioning by product user
associating product with a particular user or group of users aka skateboard shoes
positioning by competitors
competitors may be as important to positioning strategy as a firms own product or service
use to be taboo to mention competitors but fuck it
positioning by cultural symbols
used to differentiate brands. associating the brand with a meaningful symbol
aka jolly green giant, pillsbury doughboy, tony the tiger
usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions
developing the marketing planning program (examine 3 things in relation to what)
and how each influences and interacts with the promotional program
product decisions and product symbolism and what is a product??
product decisions are all about branding and packaging!
product symbolism- refers to what a product or brand means to consumers and what they experience in purchasing and using it
product is not a physical object it is a bundle of benefits or values that satisfy the needs of consumers
branding- building and maintaining a favorable identity and image of a company and its products in the mind of the consumer.
goals of branding!
build brand awareness
develop attitudes towards the company, product or service
build and foster relationships between the consumer
brand identity and brand equity
brand identity- combo of name, logo, symbols, design, packaging, and image of associations held by consumers.
brand equity- an intangible asset of added value or goodwill that results from the favorable image, impression of differentiation and the strength of the consumer
is increasingly important. more buying decisions are made at the point of purchase ex) grocery store
important to IMC because it must be consistent with the perceptions of the product and communications strategy
marketing channels- set of interdependent organizations involved in the process of making a product or service available for use or consumption
direct channel- mary kay indirect- target
promotional strategies push or pull?
push- push the product through the channels of distribution by aggressively selling and promoting the item to the resellers, or trade.
pull- spending money on advertising and sales promotion efforts directed towrads the ultimate consumer. goal is to create demand among consumers
influence wholesalers and retailers and motivate them to purchase its product for resale
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