Marketing Strategies to Achieve Objectives

• Marketing strategies need to be coordinated carefully to ensure that they

are consistent and focused on achieving the marketing objectives

Features of an Effective Marketing Strategy

Consistent Coordinated Focused

Marketing strategies reflect Marketing budgets, Strategies must

and the marketing mix and be focused on achieving the
reinforce business and brand the promotional mix must business's specific
values be tied together marketing objectives

They are appropriate for the The cooperation of They should be adapted
product to which they are relevant functional when objectives change
applied managers is vital and regularly reviewed to
ensure they retain this focus

They are suitable for the Mixed messages need to be

intended target market such avoided to ensure customers Unfocused strategies
as mass or niche markets fully buy in to the product should be discarded
 Customer Relationship Marketing (CRM)
• Customer relationship marketing (CRM) involves a business focusing their
marketing efforts around building a deep understanding of customers,
consistently meeting customer needs and developing long-term customer
loyalty

• Marketing strategies and tactics are focused on four key areas

Customer acquisition

• Attracting interested consumers and converting them into customers to achieve

growth, make money and improve chances of business survival

• Businesses can acquire customers in many different ways, including

o Building a strong brand identity

o Delivering excellent customer experiences

o Providing clear information

o Offering special rewards, such as price promotions

Customer retention

• Customer retention involves encouraging customers to remain loyal to a

business and its brands over time
• Encouraging loyalty is important for several reasons
o Attracting new customers often costs more than retaining current customers
o Loyal customers tend to be valuable repeat customers
o Retained customers can refer new customers to a business
▪ Word-of-mouth marketing is a form of free marketing for a brand
▪ Happy customers talking about a business or brand in positive ways can
help persuade people they know to become loyal customers as well

• Businesses can retain customers in many different ways, including

o Customer loyalty schemes
o Regular communication about new products or promotional offers
o Targeted price promotions or other perks for existing customers

Customer expansion

• Customer expansion is the process of encouraging existing customers to increase the

value and frequency of their spending on products and services over time

• Businesses can achieve customer expansion in several different ways, including

o Upselling by encouraging customers to upgrade to premium products
o Cross-selling by offering customers a related product or service
o Providing add-ons such as insurance policies, extra features or extended
warranties

Customer reactivation

• Customer reactivation involves reaching out to customers who have previously

expressed interest in or purchased a product but have since become disengaged

• Businesses can adopt a range of techniques to reactivate customers, including

 o Social media engagement
o Targeted price promotions for returning customers
o Direct mailings via post or email

An Evaluation of CRM Strategies & Tactics

Benefits of CRM Drawbacks of CRM

CRM involves a business developing It requires investment in training and

a detailed understanding of customer development of staff to ensure that high
needs and preferences that allows them to customer service expectations are
precisely target promotional activity consistently met

Focusing on keeping loyal customers is Without a relentless and expensive focus

usually less costly than persuading new on researching and understanding
customers to choose a businesses products customer needs, CRM is unlikely to be
over those of rivals successful
 Information Technology in Marketing
• Information Technology (IT) tools and applications are extensively used in
marketing for a variety of purposes

Uses of IT Tools & Applications in Marketing

Application
Purpose Example

Social media Businesses can establish and US-based fashion

maintain a presence on platforms brand Forever 21 has a
such significant presence on
as Instagram, TikTok and Youtube Instagram, using its profile
to share images and
short videos that
Regular posts that link products to showcase new products
trends can be shared, creating the and special events
modern equivalent of word-of-
mouth promotion

Social media channels allow

for rapid communication with
followers that can
include interactive content such as
videos and sound

Customers can
leave comments and reviews that
can be used for market
research purposes
Websites Most businesses have a web Zalando is an online
presence in the form of a corporate shopping mall located in
website, a sales website, and/or a Germany, providing
page on a sales platform, such a sales platform for
as Etsy or Ebay leading European fashion
and footwear brands as
well as its own brands,
Websites allow businesses to sell including Kickz
their products online and share sportswear
company information, such as
press releases, swiftly and efficiently
 Tools such as blogs and vlogs can
be used to drive customers to
sales websites
Email Businesses build databases of Austrian stationery
those customers who have chosen brand Paper
to opt-in to email communications Republic sends regular
email updates to loyal
customers, with targeted
Information about new products reminders to purchase
ranges, as well as special offers time-critical products such
and events, can be shared as diaries
swiftly and at minimal cost with
interested consumers
Mobile Most businesses have Logistics
developed optimised company Evri sends
applications that allow customers customers text messages
to browse and purchase their containing links
products on a mobile device to review recent delivery
experiences

Text messaging can be used to

communicate special offers, links to
websites and product surveys to
customers
In-store IT technology is increasingly used in Customers in IKEA's
physical stores to attract, warehouse-style stores
inform and engage customers can check inventory
levels and the location of
Digital signage can draw products online and in-
customers' attention to special store
offers, highlight product ranges using terminals located
and create a throughout the building
particular ambience in stores

Bespoke information systems can

provide staff and customers with up-
to-date information
on inventory levels
 Artificial Intelligence in Marketing
• It is argued that marketing is the business function where artificial intelligence
(AI) has the greatest potential to make a positive financial impact

• Current uses of AI include

o Analysis and interpretation of large volumes of data on customer
behaviour gathered from social media, devices such as smart speakers,
online sales and other interactions such as reviews
▪ AI can swiftly roll out targeted promotional activity based on the
nature of actual customer activity
▪ Personalised digital communications based on behavioural
patterns, interests and interactions can be designed and distributed
•
o Organisation and interrogation of complex customer profile
databases that combine behavioural data from a range of electronic
devices and applications
▪ Product designers and creative marketers can use detailed
information to develop and promote products that meet customer
needs precisely
▪ Real-time product suggestions based on past and current
behaviour can be used to influence which product is purchased

o Communication with consumers through AI-generated chatbots

▪ E.g. AI-generated influencer Lil Miquela is a chatbot with millions of
followers who are happy to go along with her recommendations,
meaning she earns large fees from brands including Calvin Klein
and Prada

• There is some concern about the use of AI in marketing

 AI in Marketing: Key Concerns

Capital investment Careful human

Consumer resistance
requirements supervision is required

• Many consumers • AI systems require a • AI systems require

are unhappy about significant investment close supervision
the large-scale in hardware, processing to ensure
collection of data power, software, highly that programming
skilled employees such errors are
• The use of AI in as programmers identified and
marketing can and training corrected swiftly
increase the
possibility • These high costs • AI systems lack
of discrimination and increase barriers to the creativity and
the misuse of entry for small firms and imagination of
information increase the competitive humans so output
advantage of already- may be perfected
powerful firms by human touch
E.g. A customer's credit
rating is reduced because AI
determines that others who This may have the effect Ensuring that AI-
shopped where he shopped of reducing generated promotional
had a poor repayment history competition and choice for activity is focused on
customers marketing objectives is
a judgement best made
by a human