MKTG ch 2
4 strategies that focus on aspects of the marketing mix to create and deliver value and to develop sustainable competitive advantages as we depict
1. customer excellence 2. operational excellence 3. product excellence 4. location excellence
step three: identify and evaluate opportunities using STP (segmentation, targeting and positioning)
STP- the firm first divides the marketplace into subgroups or segments, determines which of those segments it should pursue or target and finally decides how it should position its products and services to best meet those needs of those chosen targets
The marketing plan
a marketing plan is a written document composed of any analysis of the current marketing situation opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four p's, action programs, and projected or pro forma income statements although most people do not have a written plan that outlines what they are planning to accomplish- firms do need this document
1. customer excellence
achieved when a firm develops value-based strategies for retaining loyal customers and provides outstanding customer service. -retaining loyal customers: sometimes the methods a firm uses to maintain a sustainable competitive advantage help attract and maintain loyal customers. viewing customers with a lifetime perspective rather than one transaction basis is key to modern customer retention programs it costs more to get a new customer - providing outstanding customer service- marketers also may build sustainable competitive advantage by offering excellent customer service. through consistency in this area can prove difficult. customer service is provided by employees and humans are less consistent than machines
-targeting
after a firm has identified the various market segments it might pursue it evaluates each segments attractiveness and decides which to pursue using a process known as target market or target marketing- soft drink manufacturers divide their massive market into sub-markets or segments
Sustainable competitive advantages
an advantage over the competition that is not easily copied and can be maintained over a long period of time this wall makes it hard for outside competitors to contact customers inside -the marketers target market over time advantages will erode because of these competitive forces but by building high thick walls marketers can sustain their advantage minimize competitive pressure and boost profits for a longer time Nike: thickets wall is the result of its solid foundation of innovation which has produce a strong brand and a loyal customer base
step 5
control phase: entails evaluating the performance of necessary corrective actions page 27
1. market penetration
employs the existing marketing mix and focuses the firms efforts on existing customers MTV plus xbox
2. market development
employs the existing marketing offering to reach new market segments whether domestic or international MTV plus international
step 5: evaluate performance using marketing metrics
evaluating the results of the strategy and implementation program using marketing metrics a metric- measuring system that quantifies a trend dynamic or characteristic the firm can determine why it achieved or did not achieve its performance goals with the help of these metrics who is accountable for performance? -at each level of an organization the business unit and its manager should be held accountable only for the revenues expenses and profits that they can control performance objectives, marking analytic and metrics- many factors contribute to a firms overall performance which makes it hard to find a single metric to evaluate performance financial performance metrics- some commonly used metrics to asses performance include revenues or sales and profits
growth strategies
four of them
step 3
implementation- marketing managers identify and evaluate different opportunities by engaging in a processes known as segmentation, targeting and positioning marketing strategy
multiple sources of advantage
in most cases a single strategy is not sufficient to build a sustainable competitive advantage. firms require multiple approaches to build a wall around their position that stands as high as possible
4. location excellence
is particularly important for retailers and service providers most people will not walk or drive very far when looking to buy a cup of coffee
Marketing strategy
it identifies a firm's target market it is a related marketing mix (4 p's) the bases on which the firm plans to build a sustainable competitive advantage
-segmentation
many types of customers appear in any market and most firms cannot satisfy everyone's needs. 1. market segment- consists of consumers who respond similarly to a firms marketing efforts 2. market segmentation- dividing the market into groups of customers with different needs, wants, or characteristics
step one: define the mission statement
mission statement: a broad description of a firm's objectives and the scope of activities it plans to undertake attempts to answer two main questions 1. what type of business are we 2. what do we need to do to accomplish our goals and objectives
step 1
planning phase- marketing executives in conjunction with other top managers define the mission and or vision of the business
step 2
planning pt 2 phase they evaluate the situation by assessing how various players both in and outside the organization affect the firm's potential for success
3. product development
product development strategy offers a new product or service to a firms current target market MTV plus dynamic lineup of shows
step two: conduct a SWOT analysis (situation analysis)
strengths, weaknesses, opportunities, and threats situation analysis: uses a swot analysis that assesses both the internal environment SW and the eternal environment OT SWOT analysis- method of conducing a situation analysis
step 4
the four P's product price place promotion marketing strategy
4. diversification
the last of the growth strategies introduces a new product or service to a market segment that currently is not served related diversification- the current target market and or marketing mix shares something in common with the new opportunity unrelated- the new business lacks any common elements with the present business MTV plus i used to be fat
2. Operational excellence
the second way to achieve a sustainable competitive advantage is through efficient operations. excellent supply chain management and strong relationships with their suppliers by doing so they ensure good value to their customers and earn profitability for themselves and satisfy consumer needs
3. product excellence
the third way to achieve a sustainable competitive advantage occurs by proving products with high perceived value and effective branding and positioning
price
value capture= second element. a firm provides a product or a service or some combination and in return gets money
promotion
value communication= integrated marketing communication IMC encompasses a variety of communication disciplines ADS personal selling, sales, promotion, PR, direct marketing and online marketing including social media
product
value creation products= these products include services and constitute the first of the four p's
place
value delivery= the firm must be able after it has created value through a product and or service to make the product readily accessible when and where the consumer wants it
positioning
when the firm decides which segments to pursue it must determine how it wants to be positioned within those segments 1. market positioning involves the process of defining the marketing mix variables so that target customers have a clear distinctive desirable understanding of what the product does or represents in comparison with completing products AFTER identifying its target segments a firm must evaluate each of its strategic opportunities
step four: implement marking mix and allocate resources
when the firm has identified and evaluated different growth opportunities by performing a STP, analysis of the real action begins