MARK 415

Strategic Marketing Process Step 2

Translate strategy into a marketing plan (supporting program)

Supporting Program Components

Marketing objectives and action plan

Objective Characteristics

Action-oriented and focused on a few critical priorities

Financial Objectives

Goals for overall brand or firm performance (e.g., revenue, profit)

Marketing Objectives

Customer-focused goals that define desired behavior change

Marketing Funnel Stages

Awareness, Interest, Desire, Action, Advocacy

Customer Acquisition Stages

Awareness, Interest, Desire

Customer Retention Stages

Action, Advocacy

Action Plan Framework

Built around 4Ps: Product, Price, Promotion, Placement

Product Portfolio Focus

Align products with corporate strategy and target customer needs

Product Strategy Elements

Branding, packaging, lifecycle management, innovation

Brand Strategy Types

Brand, Family brand, Brand equity

Packaging Considerations

Depend on product category and B2B vs B2C context

Product Categories Breakdown

52% line extension, 27% new to firm, 11% cost reduction, 10% new to world

Product Development Process

Opportunity ID → Concept → Evaluation → Development → Launch

Product Lifecycle Definition

Sales and profit progression over time

Product Lifecycle Management

Ensuring product profitability by adjusting marketing mix

Promotion Strategy Factors

Customer size, info needs, purchase importance, complexity, service needs

Advertising Strength

Effective for large audiences, low info needs, pull strategies

Personal Selling Strength

Effective for complex, high-value, high-service, push strategies

Promotion Resource Allocation

Advertising (many resources), Personal selling (fewer resources)

Sales Training Materials

Competitive comparison, price list, FAQs, objection handling, manuals, user info

Placement Strategy

Delivering product and providing after-sales service

Supply Chain Structure

Upstream (suppliers, outsourcing) and downstream (channels, delivery, warehousing)

Pioneer Strategy

First to market with advantages in awareness and loyalty

Pioneer Advantages

First mover advantage, initial customer loyalty

Follower Strategy

Enters later and benefits from learning from pioneer mistakes

Pioneer Objectives

Increase trial and adoption

Pioneer Strategies

Mass market, niche, skimming

Mass Market Strategy

Maximize market share broadly

Niche Strategy

Target a specific segment with distinct needs

Skimming Strategy

Maximize profit per unit

Market Leader Objectives

Maintain loyalty and stimulate demand

Market Leader Strategies

Fortress defense (protect base), Flanker (secondary brand)

Fortress Defense

Strengthen position and encourage repeat purchasing

Flanker Strategy

Introduce secondary brand to defend against competitors

Follower Objectives

Capture repeat demand and attract new customers

Follower Strategies

Frontal attack, flank attack, leapfrog, encirclement

Mature Market Characteristics

Maintain share and retain customers

Mature Market Strategies

Fortress defense and customer retention focus

Growth in Mature Markets

Increase penetration and extend usage

Penetration Strategy

Increase customers through referrals

Extended Use Strategy

Encourage repeat purchasing via rewards

Declining Market Strategies

Divest, maximize cash flow, maintain share

Customer Satisfaction Framework

Understand touchpoints, measure satisfaction, improve retention

Net Promoter Score (NPS)

% Promoters (9–10) − % Detractors (0–6)

NPS Interpretation

50 is strong performance

NPS Value

Identifies customer sentiment and improvement opportunities

Marketing Metrics Principle

Measure the right thing, correctly, frequently, and act on it

Types of Marketing Metrics

Milestones, Inputs, Outputs, Ratios

Metric Formats

Financial, ratings, index metrics

Sales Data Types

Geography, product, customer, channel, order size

Pricing Benchmarking

Compare price to customer expectations and competitors

Placement Metrics

Return on investment (ROI) relative to distribution spend

Customer Lifetime Value (CLV)

Total profit from a customer over their lifetime

CLV Formula

(Price − Cost) × Purchase frequency × Retention duration

Retail Price

Price charged to end consumer

Manufacturer Price

Price charged to intermediaries

Trade Margin

(Retail − Manufacturer) ÷ Retail

Gross Profit

Sales − Cost of Goods Sold (COGS)

Gross Margin %

Gross Profit ÷ Sales

Contribution Margin

Price − Variable cost per unit

Contribution Margin Ratio

Contribution margin ÷ sales

Value of Market Share Point

Gross profit ÷ market share units × 100

Marketing Definition

Creating value and managing profitable customer relationships

Strategic Planning Levels

Company strategy → Business strategy → Marketing strategy

Company Strategy

Mission, growth priorities, resource allocation

Business Strategy

How units compete within an industry

Marketing Strategy

Defines target market and value delivery approach

Marketing Strategy Questions

Who to serve? How to deliver value?

Marketing Planning Process

Opportunity analysis → Objectives → Supporting program

Opportunity Analysis

Understand market, customer, and insights

Critical Success Factors

Leadership support, cross-functional teamwork, customer understanding

BCG Matrix

Stars, Cash Cows, Question Marks, Dogs

Stars

High growth, high share

Cash Cows

Low growth, high share

Question Marks

High growth, low share

Dogs

Low growth, low share

Macro Environment Factors

Demographic, economic, natural, technological, political, sociocultural

Micro Environment Analysis

Customers, company capabilities, competitive advantage

Red Ocean Strategy

Compete in existing market space

Blue Ocean Strategy

Create uncontested market space

Environmental Assessment Tools

SWOT, opportunity/threat matrix, macro/micro analysis

Buyer Experience Cycle

Purchase, delivery, use, supplements, maintenance, disposal

Purchase Involvement

High involvement (complex decision), low involvement (post-evaluation)

Organizational Buying Roles

Users, gatekeepers, influencers, buyers, deciders

Forecasting Approaches

Top-down, bottom-up, combined

Forecasting Tools

Statistical, qualitative, analogy, judgment, adoption rates

Forecasting Best Practices

Use multiple methods and clearly state assumptions

Marketing Research Process

Problem → Question → Design → Collect → Analyze → Report

Positioning Tools

Perceptual map, value map, buyer experience map, conjoint analysis

Positioning Statement

Target + brand + category + point of difference

Supply Chain Value Flow

Upstream suppliers → company → downstream channels

Channel Motivation Strategies

Trade promotions and consumer promotions

Trade Promotions

Incentivize resellers to increase sales

Consumer Promotions

Coupons, rebates, contests to stimulate purchases

Market Leader Strategy Set

Fortress, flanker, confrontation, market expansion, contraction

Follower Strategy Set

Frontal attack, leapfrog, flank attack, encirclement

Maintain Market Share Strategies

Fortress defense, flanker brands, niche focus

Extend Market Growth Strategies

Penetration, extended use, market expansion