Markstrat Pointers 3:

Formulating, implementing and sustaining marketing strategy

Know your environment

• Company: products, projects, finances
• Competition: products, projects, finances, benchmark
• Market/Economy: market size and growth rate, inflation
• Customer: Understand customer needs and identify attractive segments
o Ideal points (plus evolution).
o Size (plus evolution).
o Behavior (shopping, awareness, purchase intention.)
o Competition

Formulate strategy to create value

• Identify and match products with segments
o Identify which product characteristics matter to chosen segments
• Evaluate the attractiveness
• check brand perceptions
• check influence of characteristics
o Establish link between brand perceptions and product characteristics
• Formulate strategy to sell products based on those characteristics
o Evaluate the potential competitive advantage (Short term/long-term)

Create balance between dependence on advertising and innovation strategies

• Establish short-term and long-term dependence on each
• for advertising strategy
o Evaluate need for awareness or reference advertising
o Identify strengths that matter, and can be defended
• for innovation strategy-new brands
o Compare characteristics of existing projects with ideal points of target segments
o Compare effectiveness of starting new projects versus using existing projects to
introduce more brands.
• for innovation strategy - new projects
o Identify characteristics for new project (segments ideal point and desired product
characteristics)
o Check need for starting new project/basing it on existing project
o Evaluate financial impact and expected rate of return
o Evaluate expected competitive advantage

Evaluate strategy
• Check conformance with firm goals – sales/market share/profit/stock price/contribution
• Consider competitor response

Implement strategy to capture value

• Forecast demand (total market/segment level).
• Plan production and inventory level based on forecast demand
• Formulate sales force and distribution strategy based on shopping habits.
 Markstrat Pointers 3:

Formulating, implementing and sustaining marketing strategy

Monitor, evaluate, modify, and adapt strategy based on specialized theories, tools, frameworks
discussed in class to sustain value
• Segmenting, Targeting, and Positioning
• Advertising, Pricing and Sales Promotion
• Product Distribution and Sales Planning
• Brand Portfolio Management - Product Proliferation and Assortment Management
• Production Planning - Forecasting Consumer Adoption and Product Diffusion
• Managing Market Research and Competitor Analysis
• New Product Development and Innovation Strategies in Evolving Markets
• Maximizing Returns – sales, market share, contribution and share price

INTERNAL: EXTERNAL:
Strengths/Weaknesses Opportunities/Threats

Marketing Analysis (5 Cs)

Understanding your Business
Company Competition Customer Collaborators Context

Segment Target Position

Creating
Value
4 Ps
Product Place Promotion
Capturing
Price Value

Customer Acquisition Customer Retention Sustaining

Value
PROFITS