unit 3: strategy & strategic marketing

what is strategy?

plan to create value - looking forward, seeing & planning future

define value

difference between willingness to pay (most customers will pay for a product) & willingness to sell (least amount of compensation employee willing to accept for product/service)

customer delight

difference between willingness to pay & price

employee satisfaction

middle of compensation & willingness to sell

what is the difference between strategy & plan?

strategy: use our resources effectively, & efficiently get to end point/goal

plan: doesn’t consider competition, doesn’t have a clear, defined objects

competitive marketing stategy

creating a plan by considering what competitors offer and how to make your product or service stand out

competitive marketing strategy: specialization

choosing which specific product or service your business will focus on

competitive marketing strategy: differentiation

making your product/service different from competitors in a way that make customers want to choose yours

what is the main goal of Sun Tzu strategy?

win the war, not battle

deception, restraint, minimalism best ways to defeat an enemy (competitor)

what should you know before setting up competitive strategy?

customers, competitors & limited resources → create goals → set up best plan

competitive strategy

develop knowledge advantage; indirect actions to cause competitors to follow you

strategic planning

creating a strategic fit that matches your business goals and abilities with market opportunities so your business can grow and succeed long-term

strategic marketing: marketing management

choosing target markets & building profitable relationships with them

strategic marketing: customer-driven marketing strategy

deciding what customers to serve and how to serve them

what does matching firm resources with changing marketing environments mean?

business needs to make sure its internal resources match what is happening in the external market

situation analysis

evaluating a company's current situation to understand its strengths, weaknesses, opportunities, and threats in the market

knowledge management

collecting and using information to make better business decisions

uses the 3 Cs

what are the 3 Cs

customers: understanding who buys your products & what they want or need

competitors: understanding other businesses that offer similar products or sevices

company: understanding your own business’s resources, strengths & weaknesses

SWOT analysis

internal: strengths, weaknesses

external: opportunities, threats

what customers will we serve? how can i find the “right'“ customers?

market segmentation

market segment

market segmentation

dividing a large market into smaller groups of customers with similar needs/interests

market segment

group of customers who respond similarly to marketing

what does it mean “right” customers?

market targeting

market targeting

choosing which customer groups, a business wants to focus on

• How can we best serve the chosen customers? What is the “best offer” for customer satisfaction in the chosen segment? 

market positioning

market positioning

making a product stand out from competitors in the minds of target customers?

product positioning

how a company makes its product stand out from competitors in the minds of customers

value proposition

benefits/values a company promises to deliver to satisfy their needs

integrated marketing program

marketing mix: four tools a company uses together to attract customers & get them to buy its products

4 Ps: product, price, promotion, place