Marketing strategies

The Marketing Process

Planning 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 conflict

Business
Mission
Stateme
nt
Objectiv
es
Situation
or SWOT
Analysis

Marketing Strategy
Target Market
Strategy

Marketing Mix

Product

Place/Distribution

Promotion

Price

Implementation
Evaluation,
Control

Marketing 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 Mix
It is a set of tactical tools that the firm
blends to produce the response it
wants in the target market
It consists of everything that the firm can
do to influence the demand for its product,
and these are encompassed by the 4ps
Simply, 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

Marketing
communicatio
ns

Cover location,
distribution,
channels and
logistics

Collection of
features and
benefits that
provide customer
satisfaction

The 4 Ps & 4Cs

Convenience

Marketing
Mix

Place

Product

Customer
Solution

Price

Customer
Cost
7

Promotion

Communication

Marketing mix and the 4Cs

The 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 :
Packaging
Quality
Appearance
Functionality
Accessories
Installation
After sale services
Warranty et.

Features of a product that help meet the

needs of customers

Aspects

Brief explanations or examples

The appearance

Color, size, shape, etc. must meet the

consumer needs.

The function

Able to be used
Convenient for use
Meeting 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 period
Discounts
Financing
Credit 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 decisions
Place (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:

Placement
Distribution channels
Logistics
Inventory
Order processing
Market coverage
selection of channel members
There 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:
Advertising
Sales promotion
Personal selling
Public relations/publicity
Direct marketing
Sponsorship

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
People Decisions

Service & Quality

Relationship
Marketing

Marketing
Training

Internal
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 organisation

Processes
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
Consideration

After Sales

Enquiry / Info
Search

Process
Decisions
Delivery

Point of
Purchase

Physical Evidence
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

Evidence of
Ownership
Corporate
Identity
Physical
Evidence
Environment
of PoP
Packaging
Product
Design