Chapter 2 Textbook + Prof Slides

Marketing strategy identifies:

• a firms target markets

• a related marketing mix (4P’s)

• the bases upon which the firm plans to build a sustainable competitive advantage

sustainable competitive advantage

• strong brand

• innovative capabilities

• extensive distribution network

• loyal customers

Building stong market positions

• One advantage is not enough

• strong brands compine multiple strengths

• Stronger wall = harder to compete

Custimer value is strongest when…

customer, operational, product, and locational excelence overlap each strategy reinforcing eachother

customer excellence

• build loyalty through exceptional customer experiences

• loyal customers resist competitors offers

• focus on customer lifetime value not on single transacrions

• loyalty programs

• great service becomes a sustainible advantage

Opperational Excellence

• builds advantage through efficient operations and strong supplier relationships

• efficency creates values for customers and improves profitability

• cost advantages can support lower prices or better service and experiences

• firms invest in strong distribution and information systems

• long term supplier relationships can lead to exclusive accrss and better terms

Opperational Excellence Goal

• deliver the right products at the right time in the right quantities at lower cost

Product Excellence

• builds advantage through high perceived value

• strong branding creates clear, memorable positioning

• consistency between prodyct,image and promotion reinforces credibility

• inovation helps brands stay relavent

Locational excellence

• Location is critical for retailers and service providers

• convenience strongly influences customer choice

• strong locations create advantages that are hard to copy

• firms use detailed location analysis to maximize market reach

Multiple sources of advantage

• a single strength is rarely enough to sustain advantage

• firms buld stronger positions by combining multiple strategies

• consistent value and clear positioning drive customer loyalty

good serv

WHAT IS MARKETING PLAN - STEP 1

DEFINE THE BUSINESS MISSION AND OBJECTIVES

MARKETING PLAN - STEP 1

• A mission statemnt defines the firms purpouse

  • It answers what we do, what we aim to acheive and how we will do it

• mission decisons are made at the highest corporate level before marketing strategy

• objectives differ by organization

WHAT IS MARKETING PLAN - STEP 2

• CONDUCTING A SITUATION ANALYSIS USING SWOT

WHAT IS MARKETING PLAN - STEP 3

• IDENTIFY AND EVALUATE OPPORTUNITIES BY USING STP

  • Segmenting targeting posiotioning

STP

• Segmenting targeting posiotioning

WHAT IS MARKETING PLAN - STEP 4

• IMPLEMENT MARKETING MIX AND ALLOCATE RESOURCEES

Product and value creation

• Price is the only element of the marketing mix that generates revenue

• value-based pricing focuses on what customers percieve as orth buying

• price is only a part of value

prices set too high

reduce demand

prices set too low

reduce profitability

Place ensures

• products are availible when and where customers want them

companies create value by…

offering convenient access across multiple channels

integrating physical and digital channels…

improves the customer experience

strong distribution increases…

reach while lowering cost and effort for customers

promotion commuunicates a brands…

value proposition to customers

effective promotion builds…

awareness and drives trial

MARKETING PLAN - STEP 5

• Metrics measure performance and explain why results occured

• Organizations use metrics to compare results across time,regions and products

• insight from metrics allow managers to adjust strategy and execution

• mobile and digital envionebts require faster, simpler, high impact messagin

• managers should be evaluated only on outcomes they can control

• poor results may reflect bad strategy poor execution or external forces

• metrics help diagnose the real cause of performance gaps

• no single metric tells the whole story firms track financial competitive and social responsibility outcomes

WHAT IS MARKETING PLAN - STEP 5

• EVALUATE PERFORMANCE BY USING MARKETING METRICS