Strategic Marketing framework – Flashcards
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Strategic planning
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is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
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Purpose of strategic planning
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to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment
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Complete Marketing Strategy
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Objectives consumer targets competitor targets core strategy implementation: marketing mix
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implementation: Marketing Mix
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Price, communications and promotions, product policy, channels of distribution ,customer relationship management
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mission statement
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is the organization's purpose, what it wants to accomplish in the larger environment
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Market-oriented mission statement
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defines the business in terms of satisfying basic customer needs
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Market-Oriented Business Definitions
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Company: amazon.com Product -oriented defintion: we sell books, videos, cds, toys, consumer electronics, hardware, housewares, and other products Market oriented definition: We make the internet buying experience fast, easy, and enjoyable- we're the place where you can find and discover anything you want to buy online
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Product Marketing Expansion Grid: Existing markets and existing products
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Market Penetration
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Product Marketing Expansion Grid: Existing markets and New Products
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Product Development
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Product Marketing Expansion Grid: New Markets and Existing Products
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Market Development
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Product Marketing Expansion Grid:New Markets and New Products
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Diversification
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Marketing Strategy: Core Strategy
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-Value Proposition -Differentiation - Product Positioning
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Core Strategy: Value Proposition
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Summarizes into a single paragraph: -The customer -The competitive targets -The customer's reason for buying your brand. Forms the basis for the marketing mix.
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Core Strategy:Differentiation
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Competitive advantages (CA) should have three characteristics: 1. CA should generate customer value. 2. Increased value must be perceived by the consumer. 3.CA should be difficult to copy.
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General Approaches to Creating Competitive Advantage
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-Cost-based or price-based advantage -Quality-based or differentiation advantage -Perceived quality or brand-based advantage
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Core Strategy: Product Positioning
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-Positioning creates a clear image in the mind of the consumer of what the product stands for and how it is different from competitive offerings. -Repositioning can be difficult when the brand has high awareness.
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The Product Life Cycle
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-Introduction -Growth -Maturity -Decline
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The Product Life Cycle:Introduction:
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Category Size: Small Category Growth: Low- High
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The Product Life Cycle:Introduction Characteristics:
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-Product: one brand that pioneered the category. -Selling & advertising: focuses on generic product. -Pricing: penetration or skimming. -Distribution: limited as product is unproven. Often offers a first-mover advantage.
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The Product Life Cycle:Growth
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Category Size: Moderate Category Growth: High
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The Product Life Cycle:Growth Characteristics:
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>Growing competition >Price pressure >Distribution pressure >Communications stress differentiation >Market segmentation. -Strategic options vary according to whether firm is a market leader or a market follower.
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Growth Stage Strategic Options: Market Leader
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-Fight (maintain) -Fight (enhance) -Flee (give up market leadership)
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Growth Stage Strategic Options: Market Follower
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-Exit the market -Imitate the leader -Fortify position -Leapfrog the competition
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The Product Life Cycle:Maturity
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Category Size: Large Category Growth: Low
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The Product Life Cycle:Maturity Characteristics
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>Few new buyers >Sophisticated consumers >Differential advantage obtained through: >>Intangibles >>Perceived qualities >>Packaging, service, or distribution innovation. >Well-defined segments.
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Maturity Stage Strategic Options:Market Leader
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-Invest enough to maintain current position -Harvest cash for short-term
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Maturity Stage Strategic Options:Market Follower
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-Depends on leader's strategy, but may: >Pursue #1 position >Stay in #2 slot >Exit category
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The Product Life Cycle:Decline
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Category Size: Moderate Category Growth: Negative -Many strategies for reviving mature product categories can be applied to those in decline. -Sometimes product categories revive due to serendipity. -Being the "last iceman" in a truly dying market can be profitable.
