Marketing Strategy and Marketing Plan

Developing Marketing Strategies and a Marketing Plan

Looking For Opportunities

  • PepsiCo’s Strategy:

    • Focus on health-conscious consumers seeking healthy options.

    • Utilize novel packaging, such as smaller packages, to help consumers manage calorie and sodium intake.

    • The company's versatility and diversity in offerings are core strengths of its broad corporate brand.

    • Commitment to sustainable sourcing.

What is a Marketing Strategy?

  • Definition of Marketing Strategy:

    • A marketing strategy identifies the following:

    • The firm’s target market(s).

    • A related marketing mix, known as the four Ps (Product, Price, Place, Promotion).

    • The basis for building a sustainable competitive advantage.

  • Sustainable Competitive Advantage:

    • Defined as something a firm can consistently outperform its competitors in and is not easily replicated.

    • Key elements leading to sustainable competitive advantage include:

    • Strong brand recognition.

    • Innovative capabilities.

    • Extensive and effective distribution network.

Developing Customer Value

  • Customer Value Strategies:

    • Comprised of four interconnected strategies:

    1. Customer Excellence:

      • Focus on retaining loyal customers by delivering outstanding customer service.

    2. Operational Excellence:

      • Refers to efficient operations in cost management and supply chain management.

    3. Product Excellence:

      • Achieved through high perceived value, effective branding, and positioning of products in the market.

    4. Locational Excellence:

      • Emphasizes the significance of location in retailing, encapsulated in the phrase: "Location, location, location."

  • Multiple Sources of Advantage:

    • Various approaches for achieving customer value comprise:

    • Excellent customer service.

    • Strong customer relations.

    • Competitive pricing strategies that provide good value relative to service quality.

Developing a Marketing Plan

  • Step 1: Defining the Mission

    • Example - Tim Hortons Mission Statement:

    • Aims to deliver superior quality products and services for customers and communities through leadership, innovation, and partnerships.

    • Vision: To be the quality leader in every endeavor.

  • Step 2: Conduct a Situation Analysis (SWOT)

    • Involves evaluating the internal strengths and weaknesses against external opportunities and threats to identify strategic options.

  • Step 3: Identify and Evaluate Opportunities using STP

    • STP stands for:

    • Segmentation: Identifying distinct groups within the market.

    • Targeting: Selecting the market segments to focus on.

    • Positioning: Crafting an image and value proposition for the product relative to competitors.

  • Step 4: Implement Marketing Mix and Allocate Resources

    • Key Areas:

    • Product and Service Strategy

    • Promotion Strategy

    • Target Marketing and Positioning

    • Price Strategy

    • Place Strategy

  • Price And Value For Money:

    • Exchange: Product equates to monetary value.

    • Customer perception of value includes more than just price; it reflects the entire offering.

  • Place and Value Delivery:

    • Products must be readily accessible to consumers where and when they want them.

  • Promotion and Value Communication:

    • Marketers must effectively communicate the value proposition of their offerings through various channels, which include:

    • Television.

    • Radio.

    • Magazines.

    • Sales force engagement.

    • Internet marketing strategies.

Step 5: Evaluate Performance Using Marketing Metrics

  • Performance Evaluation:

    • It is essential to evaluate marketing performance through various metrics.

    • Metrics provide insights into the effectiveness of strategies and predict future performance.

  • Key Questions for Evaluation:

    • Who is accountable for performance?

    • Are there metrics that accurately capture performance?

  • Challenges in Evaluation:

    • Finding a single metric to evaluate performance can be challenging.

  • Performance Objectives and Metrics:

    • Diverse categories include:

    • Financial performance metrics.

    • Social responsibility performance metrics.

Portfolio Analysis: Boston Consulting Group Matrix (BCG)

  • BCG Matrix:

    • A tool for analyzing the market position and growth potential of products.

    • Quadrants:

      • Stars: High market growth and high relative market share.

      • Cash Cows: Low market growth and high relative market share.

      • Question Marks: High market growth but low relative market share.

      • Dogs: Low market growth and low relative market share.

Growth Strategies:

  • Market Penetration:

    • Objective: Increase existing customer base using the current marketing mix.

  • Market Development:

    • Strategy focused on attracting new customer segments, both domestic and international.

  • Product Development:

    • Introduction of new products or services targeting current customers.

  • Diversification:

    • Launching new products or services in new market segments not currently being served.

SWOT Analysis:

A SWOT analysis involves evaluating the internal strengths and weaknesses of a company against external opportunities and threats. This strategic planning tool helps to identify strategic options by assessing both internal and external factors.