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    Basic Marketing Strategy

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    Diep Do
    This document outlines basic marketing strategies and strategic planning models. It discusses defining a company's mission and present business. It also covers portfolio approaches like the BCG Matrix and GE Model to classify strategic business units. The document then explores growth strategies like market penetration, market development, product development and diversification. It concludes by discussing ways for a business unit to gain competitive advantage, such as increasing willingness or ability to buy, and retaining existing customers.

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    Basic Marketing Strategy

    Uploaded by

    Diep Do
    38 views23 pages
    This document outlines basic marketing strategies and strategic planning models. It discusses defining a company's mission and present business. It also covers portfolio approaches like the BCG Matrix and GE Model to classify strategic business units. The document then explores growth strategies like market penetration, market development, product development and diversification. It concludes by discussing ways for a business unit to gain competitive advantage, such as increasing willingness or ability to buy, and retaining existing customers.

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    Basic Marketing Strategy

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    This document outlines basic marketing strategies and strategic planning models. It discusses defining a company's mission and present business. It also covers portfolio approaches like the BCG Matrix and GE Model to classify strategic business units. The document then explores growth strategies like market penetration, market development, product development and diversification. It concludes by discussing ways for a business unit to gain competitive advantage, such as increasing willingness or ability to buy, and retaining existing customers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    38 views23 pages

    Basic Marketing Strategy

    Uploaded by

    Diep Do
    This document outlines basic marketing strategies and strategic planning models. It discusses defining a company's mission and present business. It also covers portfolio approaches like the BCG Matrix and GE Model to classify strategic business units. The document then explores growth strategies like market penetration, market development, product development and diversification. It concludes by discussing ways for a business unit to gain competitive advantage, such as increasing willingness or ability to buy, and retaining existing customers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 23

    Basic Marketing Strategies

    A basic model of strategic planning


    SBU SBU

    Corporate Strategy

    SBU

    SBU

    Marketing
    2

    Marketing Implications of Corporate Strategic Planning


    Define the Corporate Mission Evaluate Environment (last lecture) Set Organizational Goals and Objectives Establish the Business Portfolio Grow the Business

    MISSION STATEMENT

    Broad Statement of Purpose: What is your organizations mission statement?


    Reason for existence Scope of services Current and potential customers Areas of specialization/differentiation
    4

    Defining a Companys Present Business

    Narrow
    soft drinks videos toys life insurance computers

    Broad

    Establishing the Structure of the Business


    A PORTFOLIO APPROACH
    GOALS: 1. Classify strategic business units (SBU) 2. Maintain a balanced portfolio 3. Allocation of resources 4. Directions for growth
    6

    PORTFOLIO APPROACHES
    BCG MATRIX:
    Classify SBU on 2 variables: 1. market attractiveness

    2. company strength
    7

    BCG MATRIX
    RELATIVE MARKET SHARE Question Marks Stars

    Market Growth Rate

    ?
    Cash Cows Dogs

    CRITIQUE OF BCG
    LITTLE

    USE IN IDENTIFYING AREAS OF FUTURE INVESTMENT CONSIDERS CASH FLOW RELATIONSHIPS BETWEEN BUSINESSES
    TOO SIMPLISTIC
    9

    ONLY

    GE MODEL
    INDUSTRY ATTRACTIVENESS High Medium Low High

    Medium

    Low

    BUSINESS STRENGTH

    Critique of GE

    Advantages

    More factors considered More guidance on allocations of resources More useful for evaluating new product-markets

    Disadvantages

    Subjective and ambiguous

    11

    GROWTH STRATEGIES
    Current Markets
    Current Products MARKET MARKET PENETRATION PENETRATION

    New Markets
    MARKET MARKET DEVELOPMENT DEVELOPMENT

    New Products

    PRODUCT PRODUCT DEVELOPMENT DEVELOPMENT

    DIVERSIFICATION
    DIVERSIFICATION

    12

    GROWTH STRATEGIES:
    Market Penetration: Sell more existing product/ service to existing customers 1. Increase Usage 2. Introduce Intermediaries 3. Mandatory Consumption
    Market Development: Tap new segments for existing/service products
    13

    GROWTH STRATEGIES:
    Product Development: -New products/services developed for existing customers -utilizing strengths
    Diversification: New products/services to new target markets Horizontal Vertical Concentric

    14

    What are you doing if not growing?

    Sustain current level

    Retrench

    15

    Marketing Implications of Business Level Strategies

    How will the SBU compete to gain a sustainable competitive advantage within its industry:

    What is the competitive domain/scope Which market segments can it target What needs can it satisfy How can it distinguish itself from competition

    16

    Gaining Competitive Advantage


    1)Increase the willingness to buy

    Better demonstrate benefits that consumers already value Develop new products with more important benefits Focus on neglected benefits Make sure necessary complementary products/ services exist Produce/service perceived to solve consumer problems Ensure compatibility with values Reduce perceived risk
    17

    2) Increase the ability to buy

    Initial and maintenance costs

    Innovative financing, smaller minimum sizes

    Distribution at time and place that meets needs

    fewer stockouts, different outlets, easier procedures for delivery/discarding

    Improve package/product size to improve storage issues

    18

    3) Increase demand for your brand


    by:

    Increase number of situations in which the product/service is used

    Increase amount used at one time


    Package size, volume discounts Emphasize neglected benefits

    Encourage replacement

    By providing improved products


    19

    4) More basic strategies

    Differentiation strategy

    Unique benefit or attribute highly desired by market Niching

    Focus Strategy: narrow focus in the marketplace

    Niche

    Cost leadership strategy


    Head-to-headsame benefitslower cost Wisdom???


    20

    More Basic Strategies contd

    Prospector

    First mover in new product and market areas Responds quickly to new opportunities
    Maintain a secure position in relatively stable product/service areas Protects domain by offering lower prices, higher quality,better service Tends to ignore industry changes Somewhere between prospector and defender Seldom a first mover but often a second or third No consistent product or mkt development Not as aggressive as established products Responds primarily when forced to
    21

    Defender

    Analyzer

    Reactor

    5) Retaining existing customers

    Good for large market-share holders or niche holders

    Satisfaction programs Meeting competitions strategies Relationship marketing Much more on this in a few days
    22

    Exercise:

    Bring in two products from the same product category that would be used by different types of people Describe the person who buys this product Describe the Marketing Mix for this Product Email me a brief write-up of your example We will discuss this next class

    23

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