GLOBAL MARKETING

Marketing Strategy

Benefits of Strategy

• Coordinates activities among functional areas of organization

• Defines resource allocation

• Leads to a superior market position

Components of Strategy

Statement of objectives

Selection of strategic alternative(s)Selection of customer targets

Choice of competitor targets

Statement of core strategyDescription of supporting marketing mix

Description of supporting functional programs

Establish generaldirection of strategy

Positioning

Implementstrategy

Marketing Goals

• Desired general accomplishments stated in vague terms.

• Indicate the direction the firm is attempting to move and the set of priorities it will use in evaluating alternatives and making decisions.

• Should be attainable and realistic.

• Should be internally consistent.

• Should be comprehensive and help to clarify the roles of all parties in the organization.

• Should involve some degree of uncertainty.

Examples of Goals

• To have the largest, best-trained sales force in the industry.

• Having the best recognized and most effective advertising campaign in the industry.

Marketing Objectives

• Provide specific and quantitative benchmarks that can be used to gauge progress toward the achievement of the marketing goals for which they are developed.

• Should be attainable with a reasonable degree of effort.

• Should specify the time frame for their completion.

• Usually related to sales revenues, market share, profitability, or cash flow

Examples of Objectives

• The marketing department will be responsible for having 40% of customers listing this financial institution as their primary financial institution within one year.

• The sales department will increase sales 18% during the next 2 years.

Strategic Alternatives: Growth

• Market development strategies– Attract non-users– Enter new markets

Attracting non-users

• Increase willingness to buy– Demonstrate benefits of product form– Develop new product forms with desired benefits

• Increasing ability to buy– Offer lower prices or credit– Provide greater availability

Enter new markets

• Broaden distribution– Move into new geographic markets– Add channels of distribution

• Product-line extension– Vertical product line extension– Horizontal product line extension

• Expansion through acquisition or diversification

• Market penetration strategies– Increase purchase rate of existing customers– Attract competitors’ customers

Increasing purchase rate

• Broaden usage– Provide examples of additional uses of product

• Increase consumption levels– Lower prices, special-volume packaging– Improve buyers’ perceptions of product benefits

• Increase rate of replacement– Improve benefits, e.g., convenience, lower operating

costs, that encourage early replacement

Attracting competitors’ customers

• Head-to-head competition– Superior marketing effort

• Quality, selection, availability, brand name recognition

– Price-cost leadership• Offer comparable quality at lower price

• Differentiation– adding a set of meaningful and valued

differences to distinguish the firm’s offering from competitors’ offerings

– Criteria:• important • preemptive• distinctive • affordable• superior • profitable

• Differentiation Variables

Product Services Personnel Channel Image

Form Ordering ease Competence Coverage Symbols

Features Delivery Courtesy Expertise Media

Performance Installation Credibility Performance Atmosphere

Conformance Customer training Reliability Events

Durability Customer consulting

Responsiveness

Reliability Maintenance & repair

Communication

Repairability Miscellaneous

Style

Design

Strategic Alternatives: Profitability

• Maintain satisfaction– Consistent, high quality– Effective customer complaint system

• Build strong customer relationships– Encourage repeat business through formal

relationships– Target best customers

• Develop complementary products– Increase dependence on firm

• Decrease costs/increase efficiencies

• Increase price

• Decrease product offerings/emphasize selling of most profitable products

Strategic Alternatives: Cash Flow

• Harvest market position– Systematically raise prices and reduce

marketing expenses to capitalize on ST performance opportunities

• Divest market position– Sell firm– Close down operation and sell assets

Implications of Product Life Cycle on Marketing Strategy

Introduction Stage

• Objective: Create awareness and product trialProduct—offer a basic product

Price—charge cost-plus

Distribution—selective

Communications—target advertising to early adopters and dealers to increase awareness; heavy sales promotion to stimulate trial

Growth Stage

• Objective: Maximize market share

Product—product extensions, warranties

Price—decrease prices to penetrate

Distribution—intensive

Communications—target advertising to mass market to increase awareness; reduce sales promotions

Maturity Stage

• Objective: Maximize profit while defending market shareProduct—diversify products and brands

Price—match or best competitors’ prices

Distribution—more intensive

Communications—use advertising to stress brand differences and benefits; increase sales promotions to encourage brand switching

Decline Stage

• Objective: Reduce expenditure and milk the brandProduct—phase out weak models

Price—cut price

Distribution—selective; phase out unprofitable outlets

Communications—reduce and target hard-core loyals; reduce sales promotions to minimal levels