Ch.2: Marketing Strategy
– Customer service, loyal customers
– Efficient operations, supply chain & human resource management
– High perceived value, effective branding
– Physical/Internet presence
1. Business mission/objectives
2. SWOT Analysis; Evaluate how players will affect org success.
3. Identify opportunities with STP (segmentation, targeting, positioning).
4. Implement Marketing Mix (4 P’s)
5. Evaluate performance using marketing metrics
1. Firm divides marketplace into segments
2. Determines which segments to target
3. Determines how to position product/service to best meet needs of the target
– 2×2 matrix that firms classify products/services.
– Compares relative market share & market growth rate.
– Used to compare product’s strength to market growth rate!
– “Dogs,” “Stars,” “Cash Cows,” “Problem Children”
– Low GM, Low MS. (Growth Market, Market Share)
– Phased out unless needed to boost sales of another product OR for competitive purposes
– High GM, High MS
– Heavy resource user, rapid growth
– Become cash cows = heavy resource generator
3. Cash Cows
– Low GM, High MS
– Were once “Stars”
– Excess resources may go to “Problem Children”
4. Problem Children
– High GM, Low MS
– Require most resources to maintain MS
– Can either become a “Star” with help of Cash Cow or phase out
2. Market Development
3. Product Development
– New consumers to current target market or existing customers might buy more things/shop more often.
– Requires more advertising, sales, & promotions.
Ex.: MTV always developing new shows.
– Can be related or unrelated!
– Current market/marketing mix has something in common with new opportunity.
– Does not have common elements w/ present business.
– Very risky b/c you don’t capitalize on core strengths associated with markets/products.