Chapter 6: Marketing Strategy - nog niet af

5 steps in strategy development

1) Develop a goal

2) Set the objectives

3) Select major Market / Segment

4) Set policy: courses of action

5) Assemble & implement

Strategic context

Facets of Marketing Strategy

• Product

• Place

• Price

• Promotion

Strategy development: Marketing goals (1)

= Statements of purpose / Mission statement

• General guideline for employees

• Usually rather general and abstract statement

Eg. “Become a leading brand worldwide”

Strategy development: Operational objectives (2)

• Near-term / Long-term

• Usually more specific and concrete than goals

Eg. “Realise 5% growth next year in Europe”

The growth-gain matrix

Strategy development: Selecting major markets (3) - where growth can be realised

• Consumer home food market = consumption at home

• Food service market = catering, restaurant

• Institutional food market = organisations, e.g. schools

• Government food market = e.g. for food aid purpose

• Industrial food market = business-to-business

Each of these markets can be

• National

• International

Strategy development: Courses of action (4) = ANSOFF growth matrix

Alternative product / market strategies for realising growth

Market penetration strategies

• Current market + current products

• Increase market share

• Increase product share

  • Increase frequency of use

  • Increase quantity used

  • Stimulate adoption of new applications

Product development strategies

• Current market + New products

• Product improvement

• Product line extensions

• New products for same market

• Innovations

Market development strategies

• New markets + current products

• Expand markets for existing products

  • Geographic expansion

  • New target segments

Diversification strategies

• New markets + new products

• Vertical integration

  • Forward integration (eg. dairy company merges with ice cream company)

  • Backward integration (eg. ice cream company merges with dairy company)

• Horizontal integration

  • Diversification into related businesses = concentric diversification (eg. dairy company merges with meat company)

  • Diversification into unrelated businesses = conglomerate diversification (eg. dairy company merges with insurance company)

Strategy development: Assemble and implement the strategy (5) - STP analysis

STP-analysis

• Segmentation

• Targetting

• Positioning

Strategy development: Assemble and implement the strategy (5) - STP analysis: Segmentation

Types of segmentation

1) Homogenous

2) Diffused

3) Concentrated

Good segments should be …

• Homogenous preferences within segments

• Heterogenous preferences between segments

• Demand differences between segments

• Accessible: can be reached

• Stable: exist now and later

• Substantial: size or purcchasing power

Segmention criteria

• Identifiable

• Measurable

• Relevant

• Segmentation Variables

  • Socio-economic

  • …

Macro segmentation variables	Micro segmentation variables
Geographic Demographic (gender, age)	Buying Behaviour Psychographic (personality, lifestyle)

Market Segmentation Process

Strategy development: Assemble and implement the strategy (5) - STP analysis: Targeting

• Evaluate segments: in terms of …

  • Attractiveness

    • size: now and in the future

    • spending power

    • stability over time

    • accessibility

  • Fit with objectives and means of the company

  • Growth potential

• And select the most promising one(s) as target(s)

Targeting outcomes

Single-segment concentration concentrate on 1 section with 1 product & design that product targetted to that 1 section disadvantage: if the segment starts shrinking → you are losing market	Selective specialisation Develop 3 products, each specialised for a segment Disadvantage: you have to put much effort to develop 3 products	Market specialisation People from 1 segment can choose between 3 products (eg. 3 lactose free products) Advantage: you offer choice to people from a certain segment and they will know your product good
Product specialisation specialize in 1 product and make it available for different segments	Full coverage

Strategy development: Assemble and implement the strategy (5) - STP analysis: Positioning

• Placing or positioning the product in the market

• choosing a position in the market through giving the product specific characteristics