Situational Analysis

 Marketing objectives

Marketing Strategy

Implement and control the plan

Strategy to be used to achieve the marketing objectives

Corporate mission statement

Specifying the organizational objectives

Developing the organizational strategies

Developing a portfolio plan

   Corporate mission statement (definition)

A long-term view or vision of what the organization wants to become

Corporate mission statement (what it provides)

§  Provide a lot of benefits to the company

§  Provides employees a sense of direction

§  Objectives are derived from the mission statement

§  Objectives must be specific and measurable

·         Helps to punish or reward the managers

§  These are general approaches to achieve the desired objectives

Market Penetration

Market Development

Product Development

Diversification

They try to penetrate more into the existing market

• Present Market/ Present Target
• Company takes existing product and sale it to consumers
• Makes consumers buy the product in larger qualities

 Put product in new market

Present type, New market

Reaching same target with different products

New Product, Present Market

o   Develop new product for new market

New Product, New Market

  Strategic Business Units (SBU) Definition

·         Any organizational unit that has a manager with sales and profit responsibilities

·         Are organized by divisions of a company, product lines, etc.

•       Have distinct missions

•       Have their own competitors

Trenta: 31 oz

Only for iced drinks, not coffee

Larger than average size of stomach

o   Useful to assess each SBU and assign it most reasonable objective

• Stars
• Question Marks
• Cash Cows
• Dogs

·         SBUs low market share, high growth

·         Example: Microsoft Connect... video games controlled by body movement

·         New products

·         Require a lot of cash

o   Cash comes from cash cow

·         SBUs high market share, low growth area

·         Example: Microsoft Office products

·         They generate a lot of cash and they don’t have to spend much to “upgrade”

o   Have low costs

·         Finance the stars

·         SBUs with low market share and low growth

·         Example: Type writers or even travel agents

·         Companies usually end in this category

  Question marks -> Stars -> Cash Cow -> Dogs

5 different war strategies

• Frontal Attack
• Flanking Attack
• Encirclement Strategy
• Leapfrog Strategy
• Guerilla Attack

First strategy in marketing wars

• used when both companies are equal strength

Challenger

&

Target Competitor

Second strategy in marketing wars

§  Where you don’t fight head on with your competitor, but you fight from the side

Example: you fight their weakness

You attack from all sides

Example: Apple computers being able to use Windows operations

§  Jump over the competitor: you bypass your competitor

§  Concentrate in different markets that aren’t used

Fight your competitor from behind

Example: hiring the key people from the competitor

o   Second part of decision process

o   Internal: from memory

o   External: go to stores, internet, etc.

o   Results of search yields an evoke set

§  Limited brands

·         Post-Purchase Evaluation

o   The last part of the decision process

o   In some cases, it may result in cognitive dissonance

   Reduce cognitive dissonance

§  Provide Warranties

§  Good return policy

·         Allow returns or exchanges

§  Coupons

§  Discount Products

§  Provide after-sale service

§  Make realistic claims about product’s performance

o   Silent Auction

§  How much money you are willing to be bumped out of the flight

§  Shows a list of all the people to be bumped out

o   Bad for passengers, good for Delta

o   30,000 people die in car crashes in the united states

§  Mainly because of cell phone usages

o   Ford, GM, Toyota

o   Allows cars to communicate with each other and warn drivers of crashing

o   A group of individuals or organizations that share one or more similar characteristics which make them have relatively similar product needs

Undifferentiated Strategies

Market segmentation approach

§  Example: salt

§  Company-- single marketing mix-- target market

§  Use when most consumers have similar needs

§  Company uses a single marketing mix

§  Company-- a separate marketing mix for each segment-- target market

§  Use when the customers have heterogeneous preferences

§  Should be able to design a separate marketing mix for each segment

§  Demographic

§  Geographic

·         Market density

o   Example: Bloomingdales in high populated areas

§  Psychographic

·         Personality attributes

·         Motives

·         lifestyles

§  Benefit segmentation

·         Example: toothpaste

o   People choose by cavity protection, whitening, taste, etc.

§  Usage-rate segmentation

·         Example: alcohol

o   College students

§  Segmentation basis is decided before conducting any research

§  Use if the firm knows markets very well

   Post hoc segmentation

§  Segmentation basis is decided after conducting research

§  Useful for marketing entirely new products

• Product Components
• Brand
• Brand Equity

Tangible

Intangible

o   Brand is name, design symbol (logo), or any other features that identify a seller’s product

§  Brand loyalty

§  Name awareness

§  Perceived quality

§  Brand associations

§  Other proprietary brand assets

• Multi- Branding
• Line extension
• Brand extension
• Family branding
• Dual branding

o   assigning different brand names to each product

§  Example: Ivory, Tide, Cheer, Dash, Bold, Era, Solo

o   using the existing brand name or part of the name to facilitate entry into a new market segment

§  Example: Coke, Diet Coke

§  Advantages

·         Easier to promote

·         Easier to extend

·         If something happens to one of the products, then people would stop using anything that is associated with the product

o   uses an existing brand to enter a different product class

§  Example: Ivory soap, Ivory shampoo

o   attaches the corporate name to a product to either enter a new market or new product class

§  Example: Honda lawn mower

o   integration of two or more brands

§  Example: Tide w/ Febreeze

Manufacturer (national)

Private Distributor/ Private Label Brands

Generic

o   Example: Crest

o   Target Market:

§  Risk avoiders and quality conscious

o   Best quality control

o   They usually get primary shelf space

o   Put a lot of money advertising the products

o   Promoted by manufacturers

o   Priced high

o   Intended to generate brand loyalty

·         Private Distributor/ Private Label Brands

o   Example: Sears dryer

o   Offer high profit margins to the retailers

o   Target Market is price- conscious

o   They promote store loyalty

o   Don’t mention manufacturer or private distributor

o   No name

o   Selective-supplying to a moderate amount of place

o   Intensive- a lot of stores are selling it

o   Inclusive- in clumps

o   Introduction-> Growth Stage-> Maturity Stage-> Decline Stage

Pirces are skimming or penetration strategy

·         Skimming: selling at a higher price

·         Penetration: sale it at a lower price

§  Target early adopters-(disposable income, innovators)

·         Use free samples, coupons

Defend your market share

add new market segments

·          refers to the place a brand occupies in consumers’ minds relative to competing offerings

o   Examples

§  Marlboro

§  Virginia Slims

·         Targeted towards women

§  Wal-Mart

·         Use low price strategy

• the laid back competitor
• selective competitor
• tiger competitor
• stochasitc competitor

o   The laid-back competitor

§  One that does not react quickly or strongly to a rival’s move

·         Example: Bose (the speaker company)

§  They think that their customers are loyal

§  One that reacts only to certain types of attacks

§  Example: Bill Gates

§  One that reacts swiftly and strongly to any assault

§  One that does not exhibit a predictable reaction

§  Example: RC Cola & Pepsi

·         They might react to price changes in different ways

• conflicts
• coexistence
• cooperation
• collusion

·         Example: Price fixing by Wal-Mart and Target

o   This is illegal