A Strategic Marketing

Framework

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 A Complete
Marketing Strategy

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 Marketing Strategy
 Objectives
– Mission statements describe the
customer orientation or business
philosophy
– Corporate objectives state the
overall goals to be achieved in
financial terms

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 Marketing Strategy
 Characteristics of well-written
objectives:
– Lists a quantified standard of
performance
– Designates a clear time frame
– States goal in measurable terms
– Should be challenging but realistic

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 Marketing Strategy
 Customer and competitor targets
– Which customer
groups should
be targeted?
• Begin by
considering
the strategic
alternatives

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Strategic Alternatives

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 Marketing Strategy

Key Strategies
 Targeting the company’s
own customers
– Should be a high priority
 Market  Targeting competitor’s
Penetration customers
– Riskier and more
 Market expensive strategy
Development – Common in slow growth
markets
– Price promotions are key
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 Marketing Strategy

Key Strategies
 Targeting non-buying
customers in currently
targeted segments
 Market – Is it profitable?
Penetration  Targeting new
 Market customers in new
segments
Development – Will it require the
introduction of new or
modified products?
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 Marketing Strategy
 Market Development Strategies:
Entering Foreign Markets
– Requires decisions related to:
• The choice of country or countries to enter
• The timing of the entry
• How to operate in the chosen countries
– Five factors should be considered when
deciding how to enter a foreign market

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Factors Affecting
Mode of Entry

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 Marketing Strategy
 Product Features
– After formulating
objectives and
determining
customer and
competitor targets,
the next key
decision is to
select the specific
features to include
in the product.
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 Marketing Strategy
 Product Features
– Different features are often used to
attract different segments.
– Features may be product-specific or
package-related.
– Creating several versions of a
manufactured good can be very
expensive.
– Services and information packages are
more easily tailored.
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 Marketing Strategy

Core Strategy

 The Value
Proposition
 Differentiation
 Product
Positioning
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 Marketing Strategy

Core Strategy
 Summarizes into a
single paragraph:
 The Value – The customer
– The competitive targets
Proposition
– The customer’s reason
 Differentiation for buying your brand

 Product  Forms the basis for

the marketing mix
Positioning
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 Marketing Strategy

Core Strategy
 Competitive advantages
(CA) should have three
characteristics:
 The Value – CA should generate
customer value
Proposition – Increased value must be
 Differentiation perceived by the
consumer
 Product – CA should be difficult to
copy
Positioning
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 Product & Service
Marketing Strategy
Decisions
General Approaches to
Key Decisions
Creating Competitive Advantage
 Cost- or price-based advantage
 Quality-based or differentiation
advantage
 Perceived quality or brand-
based advantage

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 Marketing Strategy
 Cost- or Price-Based Advantage
– Difficult to achieve
– Two primary methods of creating a
cost- or price-based advantage:
• Being the largest producer and benefiting
from economies of scale
• Taking advantage of the experience curve
– Strict cost control can also help smaller
firms or those with less experience to
develop a cost-based advantage
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 Marketing Strategy
 Quality-Based Differentiation
– Development of an observable
difference that is valued by
customers
• Typically implies higher costs
• Allows for both higher prices and
higher margins
– Differentiation can occur at any
point within the value chain
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 Product & Service
Marketing Strategy
Decisions
Differentiation
Key Decisions Opportunities
within the Value Chain
 Inbound  Outbound
Logistics Logistics
 Operational  Marketing
Advantages and Sales
 Service
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 Marketing Strategy
 Perceived Quality or Brand-Based
Differentiation
– Perceptual product differences are often
used for differentiation when actual
differences are small, hard to achieve,
or difficult to sustain
– Price, distribution, and marketing
communications can all contribute to
brand-based differentiation
– Thorough understanding of consumers’
perception of your brand compared to
competitors is require
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 Marketing Strategy

Core Strategy
 Positioning creates a clear
image in the mind of the
consumer of what the
product stands for and how
 The Value it is different from
Proposition competitive offerings
 Involves both actual and
 Differentiation perceived differential
advantages
 Product  Repositioning can be
difficult for high awareness
Positioning brands
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 Marketing Strategy
 Marketing Mix
– Implementation of
the marketing mix
makes the
strategy
operational
– Consistency
between strategy
and the actual
implementation is
critical
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 Ensuring a
Segment-Focused Strategy

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The Product Life Cycle

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 Product Life Cycle
Marketing Strategies
 Conceptual tool best applied to product
categories rather than specific brands
 Strategy options and the importance of
marketing mix variables vary across each
stage of the PLC
 Not all product categories follow the
standard PLC curve

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 Product Life Cycle
Marketing Strategies
Stage of PLC
 Market size and growth rate
are low
 Introduction  Selling & advertising: focuses
on the generic product
 Growth  Pricing: penetration or
skimming
 Maturity  Distribution: limited as
product is unproven
 Decline  First-mover advantage

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 Product Life Cycle
Marketing Strategies
Stage of PLC
 Characteristics:
– Growing competition
– Price pressure
 Introduction – Market segmentation
 Key strategic issues:
 Growth – Market leader
• Fight or flee
 Maturity – Market follower
• Exit market and reinvest
 Decline • Imitate leader’s product
• Fortify current position
• Leapfrog competition
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 Product Life Cycle
Marketing Strategies
Stage of PLC
 Characteristics:
– Fierce market share battles, few
new buyers, large distribution,
 Introduction large promotion costs,
competitive pricing
 Growth  Key strategic issues:
– Market leader
 Maturity • Invest enough to maintain
position or harvest for short-term
– Market follower
 Decline • Often dependent on market
leader’s strategy

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 Product Life Cycle
Marketing Strategies
Stage of PLC

 Many strategies for

reviving mature
 Introduction product categories can
 Growth be applied to those in
decline
 Maturity  Being the last provider
 Decline in a truly dying market
can be profitable
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