Marketing strategies

Marketing strategies2The Marketing ProcessBusiness Mission StatementObjectivesSituation or SWOT AnalysisImplementation Evaluation, ControlTarget Market StrategyMarketing StrategyProductPromotionPlace/DistributionPriceMarketing MixPlanning process that seeks to clarify the purpose of the businesss marketing endeavours so that all efforts of the marketing personnel are unified and there is no conflictMarketing strategy

Marketing logic by which the company hopes to create customer value and achieve profitable relation ships The company decides which customers it will serve (segmentation and targeting) and how ( differentiation and positioning)Guided by the marketing strategy , the company designs an integrated Marketing Mix made up of factors under its control: Product, Price, Place and promotion (4ps of Marketing)

Factors Influencing Marketing Strategy

Marketing MixIt is a set of tactical tools that the firm blends to produce the response it wants in the target marketIt consists of everything that the firm can do to influence the demand for its product, and these are encompassed by the 4psSimply, to meet consumers needs, businesses must produce the right product, at the right price, make it available at the right place, and let consumers know about it through right promotion

Value perceived in the mind of the consumer

Cover location, distribution, channels and logistics

Marketing communicationsCollection of features and benefits that provide customer satisfaction

7The 4 Ps & 4CsMarketingMixProductPricePromotionPlaceCustomerSolutionCustomerCostCommunicationConvenienceMarketing mix and the 4CsThe 4Ps concept takes into account the Sellers opinion but does not consider the buyers opinions. To resolve that Marketers introduced the 4Cs concept of Customer solution, customer cost, convinience and communication. E. g. Whereas marketers see themselves as selling a product, customers see themselves as buying value or solutions to their problems. The Four Cs model is more consumer-oriented and fits better in the movement from mass marketing to niche marketing

Product Product is the actually offering by the company to its targeted customers which also includes value added stuff.Product may be tangible (goods) or intangible (services).For many a product is simply the tangible, physical entity that they may be buying or selling.Product and service decisions include aspects such as :PackagingQualityAppearanceFunctionalityAccessoriesInstallationAfter sale servicesWarranty et.

Features of a product that help meet the needs of customers

Aspects Brief explanations or examplesThe appearance Color, size, shape, etc. must meet the consumer needs.The function Able to be used Convenient for useMeeting special needs of customers The cost Production costs must be low enough to earn some profit.High cost, higher price.Too high price, customers unlikely to buy.Price Price includes the pricing strategy of the company for its products. How much should customers pay for a product? Pricing strategy is not only related to the profit margins but also helps in finding target customers. Pricing decision also influence the choice of marketing channels

Price decisions include:Pricing Strategy (Penetration, Skim, etc)Payment periodDiscountsFinancingCredit terms

Using price as a weapon for rivals is as old as mankind, but its risky too, Consumers are often sensitive for price, discounts and additional offers.

Place It not only includes the place where the product is placed, all those activities performed by the company to ensure the availability of the product tot he targeted customers. Availability of the product at the right place, at the right time and in the right quantity is crucial in placement decisionsPlace (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers With the rise of internet and hybrid models of purchasing, place is no longer as relevant as before

Placement decisions include:PlacementDistribution channelsLogisticsInventoryOrder processingMarket coverageselection of channel membersThere are many types of intermediaries such as wholesalers, agents, retailers, the Internet, overseas distributors, direct marketing (from manufacturer to user without an intermediary), and many others.

Promotion Promotion decisions are those related to communicating and selling to potential consumers Promotion decisions include:AdvertisingSales promotionPersonal sellingPublic relations/publicityDirect marketingSponsorship

Extended marketing mix (7Ps) This model, proposed byBooms and Bitner in 1981, extends the marketing mix by 3 new Ps that directly relate to the service provision industry. These arepeople,physical evidenceandprocess.

People Decisions PeopleService & QualityRelationship MarketingMarketing TrainingInternal Marketing The most cost-effective means of differentiating yourself from the competition is the degree of customer focus, competence and efficiency of the People the organisation employs Customers experience this as the degree of Care and Concern they receive from the organisationProcessesProcess DecisionsEnquiry / Info SearchPoint of PurchaseDeliveryAfter Sales All Processes are concerned with the consistent creation and delivery of Customer Value The Customers experience is affected directly at those points at which s/he interacts with the Organisation Processes should be continuously reviewed and co-ordinated to improve the customer experience and demonstrate Customer ConsiderationPhysical EvidencePhysical EvidenceEvidence of OwnershipEnvironment of PoPProduct DesignPackagingCorporate Identity Provides Physical Evidence of delivered Quality Should be consistent through entire customer experience Especially important where customer is purchasing an intangible (service) Provides Confirmation of Customers expectations