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Transcript of Marketing Strategy .
• Marketing Strategy
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Marketing Marketing strategy
1 The field of marketing strategy considers the total marketing
environment and its impacts on a company or product or service. The
emphasis is on "an in depth understanding of the market environment, particularly the competitors and customers."
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Marketing Marketing strategy
1 Listed below are some prominent marketing
strategy models.
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Marketing Marketing strategy
1 A marketing strategy differs from a marketing tactic in that a strategy looks at
the longer term view of the products, goods, or services being marketed. A tactic
refers to a shorter term view. Therefore, the mailing of a postcard or sales letter
would be a tactic, but changing marketing channels of distribution, changing the pricing, or promotional elements used
would be considered a strategic change.
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Marketing ethics - Marketing strategy
1 The main theoretical issue here is the debate between free markets and regulated markets. In a truly free market, any participant can make or change the rules. However when new rules are invented which shift power too suddenly or too
far, other participants may respond with accusations of unethical behaviour, rather than
modifying their own behaviour to suit (which they might not be able to anyway). Most
markets are not fully free: the real debate is as to the appropriate extent of regulation.
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Marketing ethics - Marketing strategy
1 Case: California electricity crisis, which demonstrates how constant
innovation of new marketing strategies by companies such as Enron outwitted the regulatory
bodies and caused substantial harm to consumers and competitors.
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Marketing ethics - Marketing strategy
1 A list of known unethical or controversial
marketing strategies:
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Marketing management - Marketing strategy
1 To achieve the desired objectives, marketers typically identify one or more target customer segments
which they intend to pursue
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Marketing management - Marketing strategy
1 The implication of selecting target segments is that the business will
subsequently allocate more resources to acquire and retain
customers in the target segment(s) than it will for other, non-targeted
customers
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Marketing management - Marketing strategy
1 In conjunction with targeting decisions, marketing managers will identify the desired positioning they
want the company, product, or brand to occupy in the target customer's
mind
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Marketing management - Marketing strategy
1 Ideally, a firm's positioning can be maintained over a long period of
time because the company possesses, or can develop, some form of sustainable competitive
advantage
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Marketing strategy
1 Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a
company and the formulation, evaluation and selection of market-oriented strategies and therefore
contribute to the goals of the company and its marketing
objectives.https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Marketing strategy - Developing a marketing strategy
1 Marketing strategy needs to take a long term view, and tools such as
customer lifetime value models can be very powerful in helping to
simulate the effects of strategy on acquisition, revenue per customer
and churn rate.
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Marketing strategy - Developing a marketing strategy
1 A key component of marketing strategy is often to keep marketing in
line with a company's overarching mission statement.
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Marketing strategy - Developing a marketing strategy
1 Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business
alternatives, establish challenging goals, determine the optimal marketing mix to
attain these goals, and detail implementation. A final step in developing a
marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of
the plan.https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Marketing strategy - Developing a marketing strategy
1 Marketing Mix Modeling is often used to help determine the optimal marketing budget and how to
allocate across the marketing mix to achieve these strategic goals.
Moreover, such models can help allocate spend across a portfolio of
brands and manage brands to create value.
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Marketing strategy - Types of strategies
1 Marketing strategies may differ depending on the unique situation of
the individual business. However there are a number of ways of
categorizing some generic strategies. A brief description of the most
common categorizing schemes is presented below:
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Marketing strategy - Types of strategies
1 Strategies based on market dominance - In this scheme, firms are
classified based on their market share or dominance of an industry.
Typically there are four types of market dominance strategies:
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Marketing strategy - Types of strategies
1 According to Shaw, Eric (2012). Marketing Strategy: From the Origin of the Concept to the Development of a Conceptual Framework. Journal of Historical Research in Marketing., there is a framework for marketing
strategies.
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Marketing strategy - Types of strategies
1 Market introduction strategies
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Marketing strategy - Types of strategies
1 "At introduction, the marketing strategist has two principle strategies to choose from: penetration or niche" (47).
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Marketing strategy - Types of strategies
1 "In maturity, sales growth slows, stabilizes and starts to decline. In
early maturity, it is common to employ a maintenance strategy
(BCG), where the firm maintains or holds a stable marketing mix" (48).
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Marketing strategy - Types of strategies
1 At some point the decline in sales approaches and then begins to
exceed costs. And not just accounting costs, there are hidden
costs as well; as Kotler (1965, p. 109) observed: 'No financial accounting
can adequately convey all the hidden costs.' At some point, with declining sales and rising costs, a harvesting
strategy becomes unprofitable and a divesting strategy necessary" (49).
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Marketing strategy - Types of strategies
1 "In his classic Harvard Business Review (HBR) article of the marketing
mix, Borden (1964) credits James Culliton in 1948 with describing the marketing executive as a 'decider'
and a 'mixer of ingredients.' This led Borden, in the early 1950s, to the
insight that what this mixer of ingredients was deciding upon was a
'marketing mix'" (34).https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Marketing strategy - Types of strategies
1 "In product differentiation,
according to Smith (1956, p
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Marketing strategy - Types of strategies
1 "With skimming, a firm introduces a product with a high price and after
milking the least price sensitive segment, gradually reduces price, in a stepwise fashion, tapping effective
demand at each price level. With penetration pricing a firm continues its initial low price from introduction to rapidly capture sales and market share, but with lower profit margins
than skimming" (37).https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Marketing strategy - Types of strategies
1 "The PLC does not offer marketing strategies, per se; rather it provides
an overarching framework from which to choose among various
strategic alternatives" (38).
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Marketing strategy - Types of strategies
1 "Although widely used in marketing strategy, SWOT (also known as TOWS) Analysis originated in corporate strategy. The SWOT
concept, if not the acronym, is the work of Kenneth R. Andrews who is
credited with writing the text portion of the classic: Business Policy: Text and Cases (Learned et al., 1965)"
(41).https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Marketing strategy - Types of strategies
1 "The most well-known, and least often attributed, aspect of Igor
Ansoff’s Growth Strategies in the marketing literature is the term
'product-market.' The product-market concept results from Ansoff
juxtaposing new and existing products with new and existing
markets in a two by two matrix" (41-42).
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Marketing strategy - Types of strategies
1 Porter generic strategies - strategy on the dimensions of strategic scope and strategic
strength
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Marketing strategy - Types of strategies
1 These ways of growth are termed as organic growth
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Marketing strategy - Types of strategies
1 BCG’s “growth-share portfolio matrix” "Based on his work with
experience curves (that also provides the rationale for Porter’s low cost leadership strategy), the growth-
share matrix was originally created by Bruce D
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Marketing strategy - Strategic models
1 Marketing participants often employ strategic models and tools to analyze marketing
decisions
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Marketing strategy - Strategic models
1 There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their
business centered around Consumer, Shopper & Retailer needs
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Marketing strategy - Real-life marketing
1 Real-life marketing primarily revolves around the application of a great
deal of common-sense; dealing with a limited number of factors, in an
environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in
these circumstances, is inevitably partial and uneven.
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Marketing strategy - Real-life marketing
1 Thus, for example, many new products will emerge from irrational
processes and the rational development process may be used (if
at all) to screen out the worst non-runners. The design of the
advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction',
to ensure that it is reasonable.https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Marketing strategy - Real-life marketing
1 The marketing strategy is the foundation of a marketing plan.
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Retail - Types by marketing strategy
1 Department stores — very large stores offering a huge assortment of "soft" and "hard goods; often bear a
resemblance to a collection of specialty stores. A retailer of such store carries variety of categories
and has broad assortment at average price. They offer considerable
customer service.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 Discount stores — tend to offer a wide array of products and services, but they compete mainly on price
offers extensive assortment of merchandise at affordable and cut-rate prices. Normally, retailers sell
less fashion-oriented brands.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 Warehouse stores — warehouses that offer low-cost, often high-quantity
goods piled on pallets or steel shelves; warehouse clubs charge a
membership fee;
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 Demographic — retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy
individuals).
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 Mom-And-Pop — a small retail outlet owned and operated by an individual
or family. Focuses on a relatively limited and selective set of products.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 Specialty stores — a typical speciality store gives attention to a particular category and provides high level of
service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty
store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and
Gap products in the respective stores.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 Boutiques or Concept stores — similar to specialty stores. Concept
stores are very small in size, and only ever stock one brand. They are run by the brand that controls them. An example of brand that distributes largely through their own widely
distributed concept stores is L'OCCITANE en Provence. The limited
size and offering of L'OCCITANE's stores are too small to be considered
a specialty store proper.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 General store — a rural store that supplies the main needs for the local community;
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 Convenience stores — essentially found in residential areas. They
provide limited amount of merchandise at more than average prices with a speedy checkout. This
store is ideal for emergency and immediate purchases as it often
works with extended hours, stocking everyday;
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 Hypermarkets — provides variety and huge volumes of exclusive
merchandise at low margins. The operating cost is comparatively less
than other retail formats.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 Supermarkets — a self-service store consisting mainly of grocery and
limited products on non food items. They may adopt a Hi-Lo or an EDLP
strategy for pricing. The supermarkets can be anywhere
between 20,000 and 40,000 square feet (3,700 m2). Example: SPAR
supermarket.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 Malls — has a range of retail shops at a single outlet. They endow with
products, food and entertainment under a roof.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 Category killers or Category Specialist — by supplying wide
assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be
available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is
present in the vicinity.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 E-tailers — the customer can shop and order through internet and the
merchandise are dropped at the customer's doorstep
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retail - Types by marketing strategy
1 Vending Machines — this is an automated piece of equipment
wherein customers can drop the money in the machine and acquire
the products.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 * Department stores — very large stores offering a huge assortment of
soft and hard goods; often bear a resemblance to a collection of
specialty stores. A retailer of such store carries variety of categories
and has broad assortment at average price. They offer considerable
customer service.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 * Discount stores — tend to offer a wide array of products and services, but they compete mainly on price
offers extensive assortment of merchandise at affordable and cut-rate prices. Normally, retailers sell
less fashion-oriented brands.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 * Warehouse stores — warehouses that offer low-cost, often high-
quantity goods piled on pallets or steel shelves; warehouse clubs
charge a membership fee;
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 * Demographic — retailers that aim at one particular segment (e.g., high-
end retailers focusing on wealthy individuals).
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 * Mom-And-Pop — a small retail outlet owned and operated by an individual or family. Focuses on a
relatively limited and selective set of products.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 * Specialty stores — a typical speciality store gives attention to a
particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a
specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap (retail store)|Gap
store then they find just Reebok and Gap products in the respective
stores.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 * Boutiques or Concept stores — similar to specialty stores. Concept
stores are very small in size, and only ever stock one brand. They are run by the brand that controls them. An example of brand that distributes largely through their own widely
distributed concept stores is L'Occitane en Provence|L'OCCITANE en Provence. The limited size and offering of L'OCCITANE's stores are
too small to be considered a specialty store proper.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 * General store — a rural store that supplies the main needs for the local community;
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 *Convenience stores — essentially found in residential areas. They
provide limited amount of merchandise at more than average prices with a speedy checkout. This
store is ideal for emergency and immediate purchases as it often
works with extended hours, stocking everyday;
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 *Hypermarkets — provides variety and huge volumes of exclusive
merchandise at low margins. The operating cost is comparatively less
than other retail formats.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 *Supermarkets — a self-service store consisting mainly of grocery and
limited products on non food items. They may adopt a Hi-Lo or an
Everyday low price|EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and .
Example: SPAR supermarket.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 *Shopping Mall|Malls — has a range of retail shops at a single outlet.
They endow with products, food and entertainment under a roof.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 *Category killers or Category Specialist — by supplying wide
assortment in a single category for lower prices a retailer can kill that
category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be
available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is
present in the vicinity.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 *E-tailers — the customer can shop and order through internet and the
merchandise are dropped at the customer's doorstep
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Retailer - Types by marketing strategy
1 *Vending Machines — this is an automated piece of equipment
wherein customers can drop the money in the machine and acquire
the products.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Tata Global Beverages - Marketing strategy
1 In spite of a global presence, the brands are distributed differently depending on
the location. As Tata tea is far better known in India and a powerful brand there, it is
pushed on this market and countries with a large Indian population. Therefore, Tetley is the company's global face and the largest markets focus on the Tetley brand. Where both brands co-exist in one market, Tetley
is positioned as the premium brand.
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Marketing campaign - Marketing strategy
1 The field of marketing strategy considers the total marketing
environment and its impacts on a company or product or service. The
emphasis is on an in depth understanding of the market environment, particularly the
competitors and customers.Developing Business
Strategies, David A. Acker, John Wiley and Sons, 1988
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SEO - As a marketing strategy
1 SEO is not an appropriate strategy for every website, and other Internet
marketing strategies can be more effective like paid advertising
through PPC campaigns, depending on the site operator's goals. A successful Internet marketing
campaign may also depend upon building high quality web pages to engage and persuade, setting up
web analytics|analytics programs to enable site owners to measure results, and improving a site's
conversion rate.
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SEO - As a marketing strategy
1 SEO may generate an adequate return on investment
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Diversification (marketing strategy)
1 'Diversification' is a corporate strategy to increase sales volume
from new products and new markets. Diversification can be expanding into
a new segment of an industry that the business is already in, or
investing in a promising business outside of the scope of the existing
business.
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Diversification (marketing strategy)
1 Diversification is part of the four main growth strategies defined by
Igor Ansoff's Product/Market matrix:Ansoff, I.: Strategies for
Diversification, Harvard Business Review, Vol. 35 Issue 5,Sep-Oct
1957, pp. 113-124
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Diversification (marketing strategy)
1 Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The
first three strategies are usually pursued with the same technical,
financial, and merchandising resources used for the original
product line, whereas diversification usually requires a company to
acquire new skills, new techniques and new facilities.
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Diversification (marketing strategy)
1 'Note:' The notion of diversification depends on the subjective
interpretation of “new” market and “new” product, which should reflect the perceptions of customers rather
than managers. Indeed, products tend to create or stimulate new markets; new markets promote
product innovation.
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Diversification (marketing strategy)
1 Product diversification involves addition of new products to existing products either being manufactured
or being marketed
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Diversification (marketing strategy) - The different types of diversification strategies
1 The strategies of diversification can include internal development of new products or markets, acquisition of a firm, Business alliance|alliance with a
complementary company, license|licensing of new technologies, and distributing or importing a Product
lining|products line manufactured by another firm
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Diversification (marketing strategy) - Concentric diversification
1 This means that there is a technological similarity between the industries, which means that the firm
is able to leverage its technical know-how to gain some advantage.
For example, a company that manufactures industrial adhesives
might decide to diversify into adhesives to be sold via retailers.
The technology would be the same but the marketing effort would need
to change.
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Diversification (marketing strategy) - Concentric diversification
1 It also seems to increase its market share to launch a new product that
helps the particular company to earn profit. For instance, the addition of tomato ketchup and sauce to the existing Maggi brand processed
items of Food Specialities Ltd. is an example of technological-related
concentric diversification.
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Diversification (marketing strategy) - Concentric diversification
1 The company could seek new products that have technological or marketing synergies with
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Diversification (marketing strategy) - Concentric diversification
1 existing product lines appealing to a new group of customers.This also
helps the company to tap that part of the market which remains untapped, and which presents an opportunity to
earn profit..
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Diversification (marketing strategy) - Horizontal diversification
1 The company adds new products or services that are often
technologically or commercially unrelated to current products but
that may appeal to current customers. This strategy
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Diversification (marketing strategy) - Horizontal diversification
1 tends to increase the firm's dependence on certain market
segments. For example, a company that was making notebooks earlier may also enter the pen market with
its new product.
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Diversification (marketing strategy) - When is Horizontal diversification desirable?
1 Horizontal diversification is desirable if the present customers are loyal to the current products and if the new
products have a good quality and are well promoted and priced. Moreover,
the new products are marketed to the same economic environment as
the existing products, which may lead to rigidity and instability.
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Diversification (marketing strategy) - Another interpretation
1 Horizontal integration occurs when a firm enters a new business (either related or unrelated) at the same stage of production as its current
operations
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Diversification (marketing strategy) - Conglomerate diversification (or lateral diversification)
1 The company markets new products or services that have no
technological or commercial synergies with current products but that may appeal to new groups of
customers
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Diversification (marketing strategy) - Goal of diversification
1 According to Calori and Harvatopoulos (1988), there are two
dimensions of rationale for diversification. The first one relates
to the nature of the strategic objective: Diversification may be
defensive or offensive.
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Diversification (marketing strategy) - Goal of diversification
1 Defensive reasons may be spreading the risk of market contraction, or
being forced to diversify when current product or current market orientation seems to provide no further opportunities for growth.
Offensive reasons may be conquering new positions, taking
opportunities that promise greater profitability than expansion
opportunities, or using retained cash that exceeds total expansion needs.
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Diversification (marketing strategy) - Goal of diversification
1 The second dimension involves the expected outcomes of diversification:
Management may expect great economic value (growth, profitability) or first and foremost great coherence and complementary to their current activities (exploitation of know-how,
more efficient use of available resources and capacities).
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Diversification (marketing strategy) - Goal of diversification
1 In addition, companies may also explore diversification just to get a valuable comparison between this
strategy and expansion.
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Diversification (marketing strategy) - Risks
1 Of the four strategies presented in the Ansoff matrix, Diversification has the highest level of risk and requires
the most careful investigation
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Diversification (marketing strategy) - Risks
1 In order to measure the chances of
success, different tests can be done:
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Diversification (marketing strategy) - Risks
1 *The attractiveness test: the industry that has been chosen has to be
either attractive or capable of being made attractive.
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Diversification (marketing strategy) - Risks
1 *The cost-of-entry test: the cost of entry must not capitalize all future profits.
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Diversification (marketing strategy) - Risks
1 *The better-off test: the new unit must either gain competitive
advantage from its link with the corporation or vice versa.
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Diversification (marketing strategy) - Risks
1 Because of the high risks explained above, many companies attempting
to diversify have led to failure. However, there are a few good
examples of successful diversification:
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Diversification (marketing strategy) - Risks
1 *Virgin Group moved from music production to
travel and mobile phones
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Diversification (marketing strategy) - Risks
1 *The Walt Disney Company|Walt Disney moved from producing
animated movies to theme parks and vacation properties
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Diversification (marketing strategy) - Risks
1 *Canon (company)|Canon diversified from a camera-making company into producing an entirely new range of
office equipment.
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Retailing - Types by marketing strategy
1 Department stores are very large stores offering a huge assortment of
soft and hard goods; often bear a resemblance to a collection of
specialty stores. A retailer of such store carries variety of categories
and has broad assortment at average price. They offer considerable
customer service.
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Retailing - Types by marketing strategy
1 Discount stores tend to offer a wide array of products and services, but
they compete mainly on price offers extensive assortment of merchandise
at affordable and cut-rate prices. Normally, retailers sell less fashion-
oriented brands.
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Retailing - Types by marketing strategy
1 A specialty (British English|BE: speciality) store has a narrow
marketing focus - either specializing on specific merchandise, such as toys, shoes, or clothing, or on a
target audience, such as children, tourists, or oversize women
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Retailing - Types by marketing strategy
1 Boutique or concept stores — similar to specialty stores. Concept stores
are very small in size, and only ever stock one brand. They are run by the
brand that controls them. An example of brand that distributes largely through their own widely
distributed concept stores is L'Occitane en Provence|L'OCCITANE en Provence. The limited size and offering of L'OCCITANE's stores are
too small to be considered a specialty store proper.
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Retailing - Types by marketing strategy
1 A general store is a rural store that supplies the main needs for the local community;
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Retailing - Types by marketing strategy
1 A convenience store is typically found in residential areas. They
provide limited amount of merchandise at more than average prices with a speedy checkout. This
store is ideal for emergency and immediate purchases as it often
works with extended hours, stocking everyday;
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Retailing - Types by marketing strategy
1 A supermarket is a self-service store consisting mainly of grocery and
limited products on non food items. They may adopt a Hi-Lo or an
Everyday low price|EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and .
Example: SPAR supermarket.
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Retailing - Types by marketing strategy
1 A shopping mall has a range of retail shops at a single outlet. They endow
with products, food and entertainment under a roof.
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Retailing - Types by marketing strategy
1 By supplying wide assortment in a single category for lower prices a category killer retailer can kill that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be
available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is
present in the vicinity.
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Retailing - Types by marketing strategy
1 The customer can shop and order through the internet and the
merchandise is dropped at the customer's doorstep or an e-tailer
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Retailing - Types by marketing strategy
1 A vending machine is an automated piece of equipment wherein
customers can drop the money in the machine and acquire the products.
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Specialty store - Types by marketing strategy
1 Boutique or concept stores are similar to specialty stores. Concept
stores are very small in size, and only ever stock one brand. They are run by the brand that controls them. An example of brand that distributes largely through their own widely
distributed concept stores is L'Occitane en Provence|L'OCCITANE en Provence. The limited size and offering of L'OCCITANE's stores are
too small to be considered a specialty store proper.
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Specialty store - Types by marketing strategy
1 A convenience store provides limited amount of merchandise at more than
average prices with a speedy checkout. This store is ideal for
emergency and immediate purchases as it often works with
extended hours, stocking everyday;
https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Specialty store - Types by marketing strategy
1 A shopping mall has a range of retail shops at a single outlet. They can
include products, food and entertainment under one roof. Malls provide 7% of retail revenue in India, 10% in Vietnam, 25% in China, 28% in Indonesia, 39% in the Philippines,
and 45% in Thailand.
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Search engine optimisation - As a marketing strategy
1 SEO is not an appropriate strategy for every website, and other Internet marketing
strategies can be more effective like paid advertising through pay per click
Pay_per_click|(PPC) campaigns, depending on the site operator's goals. A successful Internet
marketing campaign may also depend upon building high quality web pages to engage and persuade, setting up web analytics|analytics programs to enable site owners to measure
results, and improving a site's conversion rate.
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Secret brand - Marketing Strategy
1 The idea of a secret brand works off of one or more of three economic
principles. The first is scarcity value. The secret brand creates products
with highly specific, unique qualities, usually very subtle and invisible to the casual observer. These qualities
do not necessarily improve the performance of the product and can
be inefficiencies (i.e. using heavy weight denim for casual clothes). The customer purchases the product for its rarity; to have something that is
very difficult to acquire.
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Secret brand - Marketing Strategy
1 The second principle is Brand
management|branding
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Secret brand - Marketing Strategy
1 The third principle is experimentation. Openly announcing new products often affects stock values in publicly traded
companies. If a company is unsure of the real world appeal of a product, it may
employ a secret brand to experiment with market reaction on a small scale. This
technique may be used after inconclusive focus group results (i.e. the majority
somewhat dislike the product, while the minority is highly enthusiastic about it).
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Marketing objectives - Marketing strategy
1 A marketing strategy considers the resources a firm has, or is required to
allocate in effort to achieve an objective. Marketing Strategies include the process
and planning in which a firm may be expected to achieve their company goals, in which usually involves an effort to increase
revenues or assets, through a series of milestones or Benchmarking|benchmarks of
business and promotional activities.
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Target markets - Differentiated marketing strategy
1 One where the company decides to provide separate offerings to each different market
segment that it targets. It is also called multisegment marketing and as is clearly
seen that it tries to appeal to multiple segments in the market. Each segment is
targeted uniquely as the company provides unique benefits to different segments. It
increases the total sales but at the expense of increase in the cost of investing in the
business.
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Multicultural marketing - Creating a multicultural marketing strategy
1 Multicultural marketing focuses on customizing messaging and
marketing channels for each target group, as opposed to simply
translating a general message into different languages, or including token representation of different
ethnic groups in imagery.
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Multicultural marketing - Creating a multicultural marketing strategy
1 Multicultural marketing is also complicated by the degree of
mainstream cultural assimilation within ethnic groups themselves. Some segments, such as recent
immigrants, may highly prefer use of their mother tongue, have limited
proficiency in the local language, and be highly geographically
concentrated. Other groups, such as second-generation individuals born in the new homeland, may be bicultural
but have less proficiency in their parent's mother tongue and be more
geographically dispersed.
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Multicultural marketing - Creating a multicultural marketing strategy
1 An ethnic marketing strategy is developed around the values and attitudes distinctive to a particular
ethnic group, and generally includes the following aspects:
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Multicultural marketing - Creating a multicultural marketing strategy
1 * Identification and collaboration with community
leaders
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Multicultural marketing - Creating a multicultural marketing strategy
1 * The promotion of culture, symbols and celebrations important to a precise target
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Multicultural marketing - Creating a multicultural marketing strategy
1 * Enhancing and focusing on the cultural uniqueness of
ethnic group
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Multicultural marketing - Creating a multicultural marketing strategy
1 1) Understand cultural differences in communication patterns, values, and
behavior in the target ethnicities.
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Multicultural marketing - Creating a multicultural marketing strategy
1 2) Assess cultural affinity among ethnic audiences.
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Multicultural marketing - Creating a multicultural marketing strategy
1 3) Segment the ethnic audiences based on the level of cultural affinity,
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Multicultural marketing - Creating a multicultural marketing strategy
1 4) Evaluate the need for
adjustments in strategy and tactics.
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Multicultural marketing - Creating a multicultural marketing strategy
1 5) Explore culturally acceptable/unacceptable,
sensitive/insensitive advertising messages among the identified
segments,
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Multicultural marketing - Creating a multicultural marketing strategy
1 7) Evaluate the effectiveness of advertising campaigns among different target segments.
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Budweiser - 2011 can design marketing strategy
1 Traditional Budweiser cans embodied a strong
sense of American patriotism
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Budweiser - 2011 can design marketing strategy
1 This change in can design was very shocking for a brand that had
remained relatively static since its beginning
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Budweiser - 2011 can design marketing strategy
1 Although the more modern design is intended for young male Americans, the new design, according to the vice
president of Anheuser-Busch Frank Abernante, is one of many steps in our quest to reinforce Budweiser's role as a truly global beer brand.
This statement means that the new design was intended for foreign
markets as well. In fact, Budweiser began selling its beer in Russia in
2010, and is currently expanding its operations in China.
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Budweiser - 2011 can design marketing strategy
1 Statistics show that China is the world's leading consumer of beer in
terms of volume, which suggests that Budweiser is trying to capitalize on this market's potential in order to
recover from these losses
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Budweiser - 2011 can design marketing strategy
1 The company hoped that the new design would appeal to a younger
crowd in the American market, while simultaneously gaining the interest
of Chinese consumers
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Profit impact of marketing strategy
1 Data from the study is used to craft strategies in strategic management and marketing strategies|marketing
strategy
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Profit impact of marketing strategy
1 According to Lancaster, Massingham and Ashford (Essentials of Marketing, 4th edition, McGraw Hill), PIMS seeks
to address three basic questions:
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Profit impact of marketing strategy
1 * What is the typical profit rate for each type of business?
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Profit impact of marketing strategy
1 * Given current strategies in a company, what are the future operating results likely to be?
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Profit impact of marketing strategy
1 * What strategies are likely to help improve future operating
results?
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Profit impact of marketing strategy
1 Dibb, Simkin, Pride and Ferrell (Marketing Concepts and Strategies,
4th European edition, Houghton Mifflin) cite six principal areas of
information that PIMS holds on each business:
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Profit impact of marketing strategy
1 * characteristics of the business environment
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Profit impact of marketing strategy
1 * how the budget is allocated
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Profit impact of marketing strategy
1 * operating results.
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Profit impact of marketing strategy - Brief history of PIMS
1 The PIMS project was started by Sidney Schoeffler working at General
Electric in the 1960s, managed by the Marketing Science Institute in the
early 1970s, and has been administered by the American
Strategic Planning Institute since 1975.
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Profit impact of marketing strategy - Brief history of PIMS
1 It was initiated by senior managers at GE who wanted to know why some
of their business units were more profitable than the others. With the
help of Sidney Schoeffler they set up a research project in which each of
their strategic business units reported their performance on
dozens of variables. This was then expanded to outside companies in
the early 1970s.https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Profit impact of marketing strategy - Brief history of PIMS
1 The initial survey, between 1970 and 1983, involved 2,600 strategic business units (SBU), from 200
companies. Today 12,500 observations exist for 4162 SBU's;
PIMS is managed by PIMS Associates in London. Each SBU give information
on the market within which they operated, the products they had
brought to market and the efficacy of the strategies they had
implemented.
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Profit impact of marketing strategy - Brief history of PIMS
1 The PIMS project analysed the data they had gathered to identify the options, problems, resources and opportunities faced by each SBU. Based on the spread of each business
across different industries, it was hoped that the data could be drawn upon to provide other business, in the same industry, with
empirical evidence of which strategies lead to increased profitability. The database
continues to be updated and drawn upon by academics and companies today.
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Profit impact of marketing strategy - Conclusions drawn by PIMS
1 The original PIMS data survey led the PIMS project to identify 37 variables
which account for the majority of business success. Two leading
marketing texts differ slightly on which variables are the most
important, with Dibb, Simkin, Pride and Ferrell (p676) identifying:
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Profit impact of marketing strategy - Conclusions drawn by PIMS
1 * lower requirement for capital investment
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Profit impact of marketing strategy - Conclusions drawn by PIMS
1 While many of these seem obvious, PIMS has the advantage of providing
empirical data that define quantitative relationships and back
what some may consider to be common-sense.
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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits
1 PIMS evaluated businesses' market position and suggest possible strategies, based on the data gathered from participating
companies. Businesses wishing to use the service provide detailed
information, including details of their:
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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits
1 * assumptions about future sales.
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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits
1 In return, PIMS provides four reports, described by Lancaster, Massingham and
Ashford as:
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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits
1 1. A 'Par' report - showing the ROI and cash flows that are 'normal' for
this type of business, given its market, competition, technology, and
cost structure.
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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits
1 2. A 'Strategy Analysis' report, which computes the predicted
consequences of each of several alternative strategic actions, judged by information in similar businesses making similar moves, from a similar
starting-point and in a similar business environment.
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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits
1 3. A 'Report on Look-Alikes' (ROLA), which aimed at predicting the best combination of strategies for that particular company, by analysing
strategically similar business more closely.
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Profit impact of marketing strategy - Participation in the PIMS study: cost and benefits
1 4. An 'Optimus Strategy' report, which is aimed at predicting the best
combination of strategies for that particular company, again based on the experiences of other businesses
in 'similar' circumstances.
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Profit impact of marketing strategy - A critique of PIMS
1 Clearly, it could be argued that a database operating on information
gathered in the period 1970 - 1983 is outdated. However data continues to
be collected from participating companies and PIMS argues that it provides a unique source of time-series data, the conclusions from
which have proven to be very stable over time.
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Profit impact of marketing strategy - A critique of PIMS
1 It has also been suggested that PIMS is too heavily biased towards
traditional, metal-bashing industries, such as car manufacturing; perhaps not surprising, considering the era in
which the majority of the surveys were carried out. In reality, as of
2006, the 3,800+ businesses contained within the database
includes data from the consumer, industrial and service sectors.
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Profit impact of marketing strategy - A critique of PIMS
1 It is also heavily weighted towards large companies, at the expense of small
entrepreneurial firms
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Profit impact of marketing strategy - A critique of PIMS
1 A serious theoretical criticism has also been mentioned. An empirical correlation does not necessarily imply cause. There is no way of knowing whether high market
share caused the high Profit (accounting)|profitability, or whether high profitability caused the high market share. Or even more likely, a spurious factor such as
product quality could have caused both high profitability and high market share.
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Profit impact of marketing strategy - A critique of PIMS
1 Tellis and Golder (1996) claim that PIMS defines markets too narrowly.
Respondents described their market very narrowly to give the appearance
of high market share. They believe that this self reporting bias makes the conclusions suspect. They are
also concerned that no defunct companies were included, leading to
survivor bias.https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Marketing strategies - Developing a marketing strategy
1 Marketing strategy needs to take a long term view, and tools such as
customer lifetime value models can be very powerful in helping to
simulate the effects of strategy on acquisition, revenue per customer
and churn rate.
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Marketing strategies - Developing a marketing strategy
1 A key component of marketing strategy is often to keep marketing in
line with a company's overarching mission statement.Baker, Michael The Strategic Marketing Plan Audit
2008 ISBN 1-902433-99-8
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Marketing strategies - Developing a marketing strategy
1 Once a thorough environmental scan is complete, a strategic planning|strategic plan
can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to
attain these goals, and detail implementation. A final step in developing a
marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of
the plan.
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JetBlue - Marketing strategy
1 JetBlue’s first major advertising campaign incorporated phrases like
“Unbelievable” and “We like you, too”
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JetBlue - Marketing strategy
1 As JetBlue gained market share, they found a unique positioning where
they competed with other low-cost carriers (i.e
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JetBlue - Marketing strategy
1 During the company’s growth stage, advertising messages moved from
the engaging and customer oriented to less personal slogans and
campaigns. Frequent changes in its values statements resulted in mixed
and frequently wasted marketing dollars spent. Slogans varied from
“More” to “Happy Jetting” and many other failed
attempts.[http://www.jetblue.com/about/pressroom/index.html
JetBluePress Releases]. Jetblue.com. Retrieved December 22, 2010.
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JetBlue - Marketing strategy
1 A new marketing strategy has been partnerships with professional sports teams
and venues
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JetBlue - Marketing strategy
1 JetBlue also utilizes various forms of
advertising media
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JetBlue - Marketing strategy
1 According to Martin St. George, senior vice president of marketing
and commercial strategy at JetBlue, the new “You Above All” campaign was created to get JetBlue back to
their “DNA” and speak to the “core of who we are as a brand.” This motto is meant to support their efforts to always put the customer first and
“bring humanity back to air travel”.https://store.theartofservice.com/the-marketing-strategy-toolkit.html
Market strategy - Developing a marketing strategy
1 A key component of marketing strategy is often to keep marketing in
line with a company's overarching mission statement.Baker, Michael The Strategic Marketing Plan Audit
2008 ISBN 1-902433-99-8
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Nike, Inc - Marketing strategy
1 Nike promotes its products by Sponsor (commercial)|sponsorship agreements with celebrity athletes,
professional teams and college athletic teams.
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We Bring Good Things to Life - Marketing strategy
1 When GE advertising was consolidated in 1979 with BBDO, the “Good Things” slogan was not only
incorporated into media ads but also induced on all packaging, spec
sheets and brochures, and service trucks
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