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)
Establish general
direction of strategy
Selection of customer targets
Choice of competitor targets
Positioning
Statement of core strategy
Description of supporting marketing mix
Description of supporting functional programs
Implement
strategy
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
• distinctive
• superior
• preemptive
• affordable
• 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
Durability
Customer
consulting
Responsiveness
Reliability
Maintenance &
repair
Communication
Repairability
Miscellaneous
Style
Design
Events
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
trial
Product—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 share
Product—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 brand
Product—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