7-1
Developing Marketing Strategy
Chapter 07
McGraw-Hill/Irwin
Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.
A Successful Strategy:
 Enhances coordination among
functional areas of organization
 Defines resource allocation
 Leads to a superior market position
7-3
Elements Of Strategy
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The objective(s) to be attained
Strategic alternative(s)
Customer targets
Competitor targets
The core strategy
Marketing mix support
Functional programs support
7-4
Hierarchy of Objectives
7-5
Characteristics of good objectives
 Should have quantified standards of
performance
 Should be ambitious enough to be
challenging, but not unrealistic
 Should have a time frame within
which to achieve the objectives
7-6
Strategic Alternatives
7-7
Increasing Sales/Market Share
 Market Development Strategies
 Market Penetration Strategies
7-8
Components of Positioning
 Customer targets
 Competitor targets
 Core strategy
7-9
Key Considerations for Selecting a
Customer Target
 Size/growth of the segment
 Opportunities for obtaining
competitive advantage
 Resources available
7-10
Target Segments for Handspring
7-11
Positioning Decision Steps
 Identifying alternative positioning themes
 Screening alternatives according to
whether they are
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meaningful to and believable by customers
feasible given the firm and product resources
competitively sensible
helpful for meeting the product objective
7-12
Positioning Decision Steps (Contd.)
 Selecting the position that best
satisfies these criteria
 Implementing programs consistent
with the product position selected
7-13
Total Product Concept
7-14
Five areas for differentiation
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Quality
Status and image
Branding
Convenience and service
Distribution
7-15
Joint Space for Colas
7-16
Brand Value Chain
7-17
Five As of Brand Building
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Awareness
Associations
Attitude
Attachment [loyalty]
Advocacy
7-18
Some Brand Attribute and Image
Dimensions
7-19
Ten guidelines for building strong
brands
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Brand identity
Value proposition
Brand position
Execution
Consistency over time
Brand system
Brand leverage
Tracking
Brand responsibility
Invest
7-20
IBM Notebook Computers: Purchase
versus Positive Opinion
7-21
Basic customer strategies
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Customer acquisition
Customer retention
Customer expansion
Customer deletion
7-22
Strategy over the Life Cycle
7-23