Mkt327 part 3

strategic framing decisions
1. segmentation
2. positioning
3. integrating marketing mix
tactical skeleton marketing plan
A generic plan outlining over general action with respect to product promotion (communication) place (distribution) and price.
product differentiation
makes a product appear unique relative to others, whether produced by the same company or the competition.
mass marketing
a undifferentiated strat with no segmentation analysis
treats all customers the same
serves each segment with marketing mix elements matched specifically to its desires and expectations.
some segments
single or unique


very small market that most companies ignore because they do not perceive adequate opportunity.
advertising efforts are focused on a small group of highly targeted consumers. requires to narrowly define a particular audience by a particular characteristic such as ZIP code or job title and tailor campaigns for that particular segment.
target marketing
selecting certain market segments that they think will be most profitable for their marketing efforts.
the creation of an image reputation or perception in the minds of consumers about the organization or its products relative to competition.
product map or perceptual map
refers to the characteristics that consumers associate with a brand.


Determine the criteria customers use
1. category membership
2.identify attributes
3.diagram the most important dimensions
4. locate brands relative to other brands.
Determine product position
5. identify ideal position of segments
6. determine desired product position.
determine desired image (position)
7.develop marketing mix to achieve position.

product position
The place product occupies in consumers minds
aspects of a product position-
unique differentiated value proposition

position in psychological framework

position in competitive framework

re positioning
rejuvenates a brand that might otherwise fade from lack of appeal.
primary demand versus selective demand
primary demand: choice options based on category.
selective demand: Choice options based on brand.
ideal point
positioning bases
time of use
product user
product class
direct comparison
country of origin
marketing objectives
Specific. Details exactly what needs to be done
Measurable:achievement or progress can be measured
segmentation strategy process
1. determine strategy
2. determine selection criteria
3. make selection
segment selection factors
market size and growth rate
competitive factors
cost and efficiency factors
segment leadership qualities
compatibility factors
segmentation strategy
which groups or segments to compete for in the market place and which
The process of placing product in consumers’ perceptual framework.
competitive advantage
is an advantage over competitors gained by offering consumers greater value, either through
access to resources
business model
or marketing execution
that can not be easily duplicated by competitors.
superior value + unduplicable= comp adv
customer value proposition
the compelling reason customer should select your product.
The key cluster of benefits the product or service promises to deliver to customers that out match competitors’ offerings on those criteria which matter most to customers.
segmentation strategy
1. Market Behvior
2. Compoany Resources
3. stage in life cycle
4. Level of competetion
a statement that articulates the core set of reasons why conumers should use a product typically expresses one of the combinations below

values,price graph

Market Demand
the number of people with the desire to satisfy a discovered need with particular want; and who also have the ability (physical accessibility and financial affordability) to address that want.
Demand Components
Primary Demand
Create new users/usage
2. ability
3. Purchase rate
Selective Demand
Focus:Retention: market leaders
Retain through:
5.buying process
more willing
greater engagement
more able
Acquire through
7. positioning/segmentation
8. competition

The nautre of demand
Relative share (leader or challenger)
Market Saturation (room?)
Value creation gap ( what areas of the marketing mix needs a fix)

General Marketing Strategy
Alternative compettive strategies
-Provides general guidelines for framing the marketing mix to:
increase # of buyers
increase desire
increase satisfaction

our ability to maintain and expand our distribution network and attract additional distributors, retailers and brokers will depend on a number of factors, some of which are outside our control. some of these factors include:

the level of demand for our brands;

our ability to price our products competitively;

our ability to deliver products in the quantity and at the time ordered by distributors.

3rd of the strategic framing decisions
focuses on which aspect of demand an organization will focus on.
defined as the set of actions that prioritizes and provides guidelines for either increasing the number of buyers in the market, increase buyers desire to buy increase product’s or service’s affordability or accessibility for buyers or increasing buyers level of satisfaction.
Purpose is to frame the marketing mix itself in terms of what actions should be taken to reach demand goals, and to achieve the desired positioning strategy.

-A guiding framework that identifies which aspect of demand the firm should focus on (build mix around); and which marketing mix variables should be emphasized given the:
1. MArket position
2. nature of demand
3. market growth/saturation.

firm with dominant market share
Attack diff and low cost are part of this shit
go head to head directly compete with leader
Low Cost
cost basis (cheaper then/than you ****ing retard you should know this..leader)
distinguish themselves, don’t go head to head with a leader.
A small unique specialized market segment
Dominant and be profitable within niche segments of the market.
Operational Excellence
provides superior value in any combination of price convenience, accessibility,
and customer service.
Customer intimacy
provides superior value by precise segmentation and product tailoring to satisfy unique intimate knowledge of and close relationship with customer.
Product Leadership
provides superior value by offering continuous stream of leading edge products and total commitment to TQM
competitive strategy
A competitive strat defines what other organizations the firm will measure its performance against;- perspective

and how a firm will allocate its resources versus these other organizations -strategic actions

to protect its weaknesses and/or exploit its strength – tactical approach

relative market share and corp objectives
market growth rate
competitors segmentation strat
status of open positions

tactical options in competitive strat
value disciplines-
operational excellence provides superior value in any combination of price convenience, accessibility,
and customer service.

-build relationships/reward loyalty
-better tailor product/ positioning
-move to customer departments
-invest in customer relationship mgt
-move towards mass customization

-superior process tech
-superior product design/cost
-consolidation of value chain
-acquire low cost suppliers
-re-locate to lower production/distribution
increase economies of scale or scope

develop new functional capabilities
improve performance
expand product desings/features

integrating the marketing mix
building the underlying infrastructure
the physical connections required for commerce
the third strategic framing decision.
customer value-
price place promo product
strong structural framework
any physical object service idea person event place or organization that can be offered to satisfy consumers’ needs and wants. Provides structure guidelines for skeleton plan

it is the mechanism through which the firm provides form utility the justification of value, and the package that delivers meaning.

the product or service is a critical framing element for building a successful marketing mix

it also provides structure for a marketing mix referred to as a skeleton plan.

consumer product
business product
consumer product classification
A. Convenience
B. Shopping
C. impulse
D. Emergency
E. Specialty
G. Unsought
A. Relatively inexpensive item that consumers purchase frequently and with minimum effort.
B. Purchased only after the consumer has compared the style features pricing packaging and quality of several alternatives.
C. Customer remembers they need product when they see in in checkout line
unlike stable product
D. when an unexpected event takes place and the consumer has an urgent need for a product.
E. have unique characteristics that provide unusual value to the purchaser. such as an association with the buyer’s self-image.
G. are not thought about frequently or perceived as very necessary.
Business product classification
A. Capital Item
B. Supply
C. Production
D. Raw Materials
E. Component Parts
F. Services
A. Item Depreciated
E. Item expensed in cost of good solf whole unit assemble into product.
D. item expensed in COGS unfinished item needing processing.
F. Item not part of product or service item expensed in expense section
Life Cycle Stages
A. Pre Commercialization
B. Introduction
C. Growth
D. Decline
E. Maturity
The conceptual framework of the stages products move through over their lives that marketers use to identify broad marketing mix strategies
B.Sales slowly take off and grow, single or few firms, low moderate sales growth, losses.
C. Pace of consumer acceptance and sales quickens. firms enter. Accelerating growth. Frims entering, accelerating growth, profits occure and increase.
D. Sales of new units diminish. Firms exit. accelerating growth, profits minimum. products mature sales level off and may remain flat for long periods. industry stable, sales peak, profits peak.
marketing mix
refers to those integrated and coordinated actions to create (product)
communicate (promotion) deliver (place and capture (price) value.
Its purpose to
Achieve selected position
create economic utilities
achieve organizational goals

It is guided
general marketing and
competitive strategies

Creates Value: sources

Framing Marketing mix
A skeleton marketing plan is a bare bones outline of the tactical portion of a detailed marketing plan. it provides a brief description of the aspect of demand to be focused on (strategic direction); and prioritizes the roles and objectives of each of the marketing mix variables (tactical direction) in order to achieve desired position.
Product dimensions
Core, basic functions benefits
Brand name
delivery repair/service
Additional Functions
Product Classification
Product Life cycle
innovation categories
product typologies
industrial goods classification
expensed- COGS
Expensed-Operating Expenses
Physical State (assembly)
Module 16
product line
outlines the focus given to core businesses (current products in current segments),market development (new segments for current products), product development (new products for current segments) or diversification (products totally new to the company for new segments)
diffusion process
a. innovators
b. early adopters
c. early majority
d, late majority
e. laggards
a.The first consumer to purchase a new product.
b.are the second group to purchase new products and are critical to marketers.
c. consumers tend to be more risk-averse than innovators and early adopters.
d. The more skeptical consumers tend to fall here.
e. little if anything and be done to convince laggards to purchase a new product.
introduces the product to the market.
types of innovation
a. continuous innovation
b. discontinuous innovation
c. dynamically continuous innovation
a.. is a minor change to a familiar product such as a new style or model that can be easily adopted without significant alterations in consumer behavior.
b. is an entirely new product with new functions.
c. endows a familiar product with additional features and benefits that require or permit consumers to alter some aspect of their behavior.
Product related success factors
a. relative advantage
b. triage
c. traction
d. complexity/compatibility
e. satisfaction
g. observability
new product development depends upon:
product related factors
management related factors

a. the amount of perceived superiority the new product has in comparison to existing ones.
b. clearly defined morphine market plan.
c. quickly reach threshold levels of market engagement and availability.
d. consistency or fit with consumer beliefs.
e. clear products exceeds all expectations
f. extent marketing mix is on code and achieves targeted position.
g.speed in which benefits experienced

product mix
adoption process
a. knowledge
b. persuasion
c. decision
d. implementation
e. confirmation
c. evaluation
d. trial
new product development process
idea screening
business analysis
concept testing
market testing
idea screening- process identifies those with the strongest potential for success.

business-assesses the attractiveness of a product from a sales cost profit and cash flow standpoint.

concept testing-helps identify the facilitators and inhibitors to a product’s success.

market testing-limited trial of the strategy for the product under real or simulated conditions.

product planning
Process of outlining the focus give to firm’s core businesses.
Required to be consistent with marketing strategy.
product planning options
a. core business focus
b. product development
c. market development
d. diversification
a. emphasizes the marketing of existing products to existing market segments.
b. occurs when companies make new products for existing market segments.
c. occurs when existing products are offered to new segments.
d. occurs when new products are introduced into new market segments.
Typologies for framing mix
product life style
product classification
product innovation
product plays three critical roles in marketing strategy process
1. embodiment of value
2.ultimate connection enabling relationships
3. focus plans based on core business activities.
ultimate innovation
is not merely to come up with new products and services but create entirely new markets- and better yet- to change the way we live and work
reasons for innovations importance
1. consumer dynamics-inherent need to search/explore
2. competitor dynamics-continuous quality improvement
3. impact on wealth-direct impact on stocks
Module 17
1st component in imc
is the process of sending and receiving messages.

Exchange of meanings to form a connection

1. provide info
2. create demand
3. communicate value
4. communicate uniqueness
5.close sale
6. build relationship

communication is the process of conveying a message to others and that requires six elements: a source, a message a channel of communication, a receiver, and the processes of encoding and decoding.

the process designed to influence consumers can be used to inform educate persuade remind and reinforce through communication.

Use communications to inform persuade educate remind and reinforce. – make a sale

elements of communication mix
a. advertising
b.sales promotion
c. personal selling
d. public relations
e. sponsorship
f. digital marketing marketing
a. is paid, impersonal communication from an identified sponsor using mass media to persuade or influence an audience.

b. is communication designed to stimulate immediate purchases using tools such as coupons contests and free samples.

c. requires person-to-person communication between buyer and seller.

d. the use of publicity and other unpaid forms of communication designed to present the firm and its products positively. the exchange of money in return for a public association with an event.

f. has evolved with the development of technology.

integrated marketing communication
the coordination of advertising sales promotion personal selling public relations sponsorship and digital marketing to reach consumers with a powerful unified effect.
push strategy
involves communicating to distribution channel members which in turn promote to the end user.
pull strategy
attempts to influence consumers directly.
elements of communication process
a. encoding
b. feedback
c. decoding
d. media
a. the process of translating a message into terms easily understood by the target audience.
b. is essential to a customer focused company and it helps the marketer adjust communications.
d. the means for transmitting messages from the sender to the receiver.
factors effecting the communication process
a. selling tasks
b. opinion leadership (multiple-step communication)
c. push vs pull strategies
a. defines the actions a communication mix element must take, or the specific communication objective it must achieve to help establish the desired product position and create the time place from and/or possession utility to create the necessary value for the customer to mover through the hierarchy of effects and close the sale.
b. uses influential members of the target audience.
c. markets directly to both the channel and end user speeding adoption and the overall flow through the channel .
push- focus on selling to trade trusting consumers buy what’s available

pull-focus on selling to consumers trusting trade carry what’s demanded.

push-producer-retailers and wholesalers-consumers

pull-consumers-retailers and wholesalers- producer.

Distinction between communication and promotion
-communication exchange of meanings and forming of relationships and building of emotional connections.
promotion uses communications to inform persuade educate remind and reinforce.
concept of integrated marketing communication
the integration and coordination of company’s communication channels to deliver a clear consistent and compelling message about the organization and its brands and across all touch points.
Role of IMC
1. To translate desired meanings/ understandings to be delivered to potential consumers.
2. to provide a context for the delivery of desired meanings/ understandings.
3. to define assign and coordinate specific selling tasks for each component of the communication mix

IMC objectives-Meaning/selling task
1. Providei nfo
2. create demand.
3. Communicate value
4. Communicate uniqueness
5. close sale
6. build loyalty realtionships
Communication process-context
IMC plan-coordinate selling task 3rd component in IMC strat

concept of selling task
defines the actions a communication mix element must take or the specific communication objective it must achieve to help establish the desired product position and create the time, place, form, and/or possession utility to create the necessary value for the customer to mover through the hierarchy of effects and close the sale.
steps in the IMC plan
Defined, the translation of brand’s purpose and meaning and organizations values proposition into some communication format; and then the coordination and integration by the company of its promotional channels to deliver that communication format clearly, consistently and compellingly across all touch points.
1. select target audience
2. determine com objs
3.Develop budget
4. select right mix
5.Pre-test execute
Communication mix-
personal selling
sales promotion
public relations
direct marketing
Customer touch point
any instance where a customer comes in to a direct or indirect audio, visual or experiential exposure to product or service.
hierarchy of effects
The hierarchy of effects is the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action. The stages include awareness interest evaluation trial and adoption.
Module 18
marketing channel management
marketing or distribution channel
is a set of interdependent organizations that help make a good or service available for purchase by consumers or businesses.

a set of interdependent organizations working collectively to making a product or service available for purchase.
excludes from supply chain all organizations only involved in transport or supply.

supply chain management
incorporates all of the activities concerned with planning implementation and control of sourcing manufacturing and delivery for products and services.
market discrepancies
b. place
c. assortment
d. allocation
a. market system eliminates discrepancies in the time we would like to enjoy a particular item (the time it is naturally available).
b. market system eliminates place (you can get lobster in Michigan).
c. expense, style favorable.
d. middle men
channel member functions (universal functions)
a. transactional
i buying
ii sellig
iii. risk taking
b. facilitating
i. finanacing
ii. market info and research
c. logistical
i. assorting
ii. storing
iii. sorting
iiii. grading
iiii. trsansporting
making a breaking bulk-recvies trainloads of materils and creates truck loads of appliances etc which make up the store.
value delivery network
alternative distribution channels
a. direct
b. duel or multi channel
c. electronic or virtual
d. indirect
e. reverse
alternative distribution organizations
a. vertical marketing systems
b. conventional
channel intensity
total logistics cost
distribution center
a. the various members of the channel are linked/integrated to a certain degree in some form or fashion.
1.all of the entities belong to the same corporate organization (wholesalers retailers transportation firms etc.)
2. firms that are part of the distribution channel are joined together through some contractional set of obligations. retailed or retail sponsored
3. franchise, franchiser link several stages in the distribution system into a collaborative group or organization.
4. administered-leadership is not the result of common worshiper or contractual size but relative size and market power.
b. all of the members which collaborate to deliver and create value to the customer are independent and operate from the perspective of their own self organizational interest.
alternative intensity levels
a. intensive
b. selective
c. exclusive
a. intense distribution system, convenience goods
b. shopping goods
c. specialty goods
channel management decision criteria
a. cost
b. coverage
c. conflict
d. control
e. connectivity
a. cost impact on channel structure and decisions
c. increase/decrease conflict in distribution network.
d. control over delivery and communication of value
e. Impact on value
marketing logistics
logistics consists of those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.
distribution center
are where the bulk of a company’s finsihed-goods inventory is maintained before being routed to individual sales outlets or customers.
efficient consumer response
integrated logistics management
the most fundamental way an organization physically comes into contact with a customer is through the product. A customer can’t physically get their hands on a product or service though without a distribution channel.
fundamental roles of channels
Make the connection
address market discrepancies
efficient performance of universal marketing functions.
universal marketing functions
-buying and selling
-risk taking
-standardization and assorting
-making breaking bulk
-transporting and storage
Integrating the marketing mix
Building the underlying infrastructure
The physical connections required for commerce.
channel decisions
channel organization
channel structure
channel intensity
channel member selection
channel management
channel organization
to specify the legal structure between members of a distribution channel and consequently the extent of administrative control and coordination.
Purpose:determine lines of authority impact control and coverage.
channel structure
To determine the number of distinct distribution channels used by organization; and the number of distinct units (producers, intermediaries, and customers) in distribution channel. Impacts coverage and conflict.
structure determines number of channels impacts coverage, costs and conflict.
channel intensity
To determine the number of locations through which a company sells its products in a GIVEN market area (relative to all possible locations for that product). Impacts coverage and cost.
Determines number of outlets impacts coverage and costs.
member selection
To address the type of intermediaries a particular type of distribution channel will use; based on which universal marketing functions need to be performed outside organization and what services costs, and images provided to consumers. Impacts cost and competencies.
determines partnerships.
channel management

strategy execution

to address the exact type and nature of relationships between the marketer’s organization and the members of the distribution channel and how that relationship is used to help execute the marketing tactical plan; impacts conflict and competencies.

Place decisions can be split into 2 categories
channels: where marketing’s competitive action is.
There are 5 management decisions.
channel member selection
channel management
they are based on: time and place utility or value, as well influencing possession and or symbolic utility or value.
supply chain
a supply chain consists of a sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users.
decision framework
. supply chain decisions
-total cost concept (efficiency)
-customer relationships (responsiveness)
congruence (alignment with strategy)


criteria- behavior /heterogeneous resources /high
3. stage in life cycle /growth or maturity
4. level of competition /moderate to high

market objectives
what the marketing functions need to do to fulil the corporate objective.
They are derived from the firms corporate objectives.
Like any other objectives they should be SMART
Specific question
In order to _business mission_ and maximize _corporate philosophy_ within the next_planning horizon_, _SBU name_ will _resource allocation (growth share matrix) strategy_ using strategy while always adhering to _core values_.
Degrees of segment focus
concentrated: 1 or a few
niche: 1 small
micromarketing: 1 person
criteria for segmentation selection
market size and growth
competitive factors
cost and efficiency factors
segment leadership qualities
compatibility factors
ultimate competitive goal
designing and delivering superior customer value propels organizations to market leaderships positions in highly competitive global markets.
achieving superior customer value
positions in perceptual framework
A product or perceptual or positioning map is a visual representation of how the average consumer in a target market perceives the brands versus competing products on important buying dimensions

A positioning map enables:
-assistance in target market selection
-development of positioning strategies

position in competitive framework
In a competitive framework firms are organized in terms of the similarity of their marketing strategies and the similarity of their target market focus based on the generic strategies first presented by michal porter in his 1985 book blah blah who actually gives
positioning strategy
The act of designing, pricing, locating and communicating a product/service offering to occupy some distinctive spot in customers’ psychological framework.
Positioning strategy:
decision framework
Demand focus:
Chance perception: of what it is
Change perception of when/where used
Attribute focus:
Improve rating on an attribute
change importance of an attribute
introduce a new attribute

1. Nature of demand
2. nature of sectors/segments
3. market structure
4. level of competition

role of objective statement
To give marketing plan: focus and direction, structure and boundaries, measures and success.
the process of distinguishing a product or service from others, through features or benefits for which it has competitive advantages, and that are compelling to customers in order to make it more attractive to a particular target market.
product vision statement
A product statement typically follows the form:
the (physical description) that (general performance description) for (basic needs/meaning).
position in perceptual framework
A product, or perceptual, or positioning map is a visual representation of how the average customer in a target market perceives the brands versus competing products on important buying dimensions
A positioning map enables:
-assistance in target market selection
-development of positioning strategies
-forecasting of market share
-development of competitive strategies
positioning strategy
the act of designing, pricing, locating and communicating a product/service offering to occupy some distinctive spot in customers’ psychological framework
positioning strategies
Demand focus-
change perception of what it is
change perception of when/where used

attribute focus
-improve rating on an attribute
-change importance of an attribute
-introduce a new attribute

Given a set of strategic group options, a group of firms in an industry following the same or similar strategy, or whose products are substitutes for one another
competitive perspective involves the selection of one or more of these groups to compete with.
products classification
helps form a skeleton strategy there are three tactical inferring classifications marketing strats changes across life cycle life cycle is an industry characteristic.
consumer goods classification
repurchase planning
comparison number
purchase frequency
purchase decision location
business classification guidelines
capital product
item depreciated
production product
item expensed in COGS whole unit assemble into product
production product-
item expensed in COGS unfinished item needing processing.
support product or service-
item not part of product or service item expended in expense section.
skeleton plan
a generic plan outlining very general actions with respect to product promotion communication place and price.
need for coordination
a customer touch point or contact point is any instance where a customer comes in to a direct or indirect audio visual or experiential exposure to product or service.
fundamental roles
make the connection
address market discrepancies
efficient performance of universal marketing functions.
logistics consists of those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.
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