DEVELOP MARKETING
STRATEGIES TO GUIDE
MARKETING TACTICS.
3.01
OVERVIEW
• Marketing strategies are designed and implemented for the overall
purpose of achieving planned goals.
• The business's goals and strategies for achieving those goals may change frequently.
Changing the business's image, increasing its profits, or improving management
techniques might be specific goals at any point in time.
• Choosing distribution channels is a consideration in the place element of
marketing.
• The place element of marketing focuses on considerations in getting the selected
product in the right place at the right time. Some of the other place considerations
are storage, transportation, inventory handling and control, and choice of specific
outlets to offer the products. Sales promotion is an aspect of the promotion element.
Extending credit is a consideration of the price element. Warranties and guarantees
are considerations in the product element.
• Specific actions best describes the role of tactics in marketing strategies.
• Tactics are the specific actions that a business uses to carry out its marketing
strategies. A marketing strategy is the plan of action or road map the business uses to
accomplish its marketing goals. Goals are desired outcomes. An option is a choice
among two or more alternatives.
MARKETING MIX
The combination
of the four
elements of
marketing—
product, price,
place, and
promotion.
MARKETING MIX
• Marketers adapt their marketing mix to suit each
situation.
• The marketing mix elements are interrelated:
• A change to one element affects the other elements
• Examples:
• Improving product features will probably result in price
increases.
• Simplifying the place element will probably result in price
decreases.
• When marketers assemble the mix, they carefully determine
which elements to include and to what degree—keeping in
mind that the mix words as a unit.
PRODUCT
The goods, services, or
ideas a business will
offer its customers
PRODUCT
• Marketers conduct research and use their creativity to determine
what customers need and how they will meet that need.
• Questions marketers ask to answer the question:
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Should we offer one product—or more than one?
Is the product a good, service, or idea?
Does the product have special features?
Does the product have multiple uses?
What resources are necessary to research and develop the product?
What level of quality should be produced or provided?
Which brands should be used?
How should the product be packaged?
How might the product affect the company’s image?
How might customers view this product in relation to others?
Should the company offer a warranty, maintenance contract, or other
support services?
• Marketers have succeeded with the product element when
customers view the product as the best solution to their needs.
PLACE
Getting a selected
product in the right
place at the right time
PLACE
• Considerations marketers address:
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Which businesses to buy from
When to buy the product
How much of the product to order
How to protect the product from damage
How to store the product until it’s needed
Where to make the product available
How to get the product where it’s needed
How to process customer orders
Which businesses to involve in the process
How to answer customer questions
How to coordinate all the steps involved
• Marketers are successful with the place element when
customers can buy a desired product when and where they
want.
PROMOTION
Letting customers know the
product’s value and its benefits
that meet customers’ current
needs and refers to the various
types of communication that
marketers use to inform, persuade,
or remind customers about their
products
PROMOTION
• Seeks a positive response from customers—they buy.
• Types of communication included:
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Advertising
Personal selling
Publicity/Public relations
Sales promotion
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Which messages to send
Which media to use
When they want messages delivered
How often they want messages delivered
How to coordinate communication efforts
• Factors marketers need to consider to use
communication channels effectively:
• How to evaluate results
Advertise
Here
PRICE
The amount of money
a business asks in
exchange for its
products
PRICE
• Marketers must find a good balance between customer value and
satisfaction and between company cost and profit.
• Marketers start by determining their pricing objectives:
• Getting their products into more customers’ hands—might be accomplished by
lowering the price
• Helping customers view the business as distinct from its competitors—might offer
something unique
• Bringing in the amount of income they need/want—involves pricing the product high
enough to cover expenses and provide a profit
• Raising the product’s value in the customer’s eyes—involves getting customers to view
the product as higher quality
• Matching the product’s value with what customers expect to receive—setting prices
at the level customers expect
• Marketers also determine how they will accept payment—cash, credit,
debit, or check?
• They decide whether they will offer discounts.
• Marketers know they’ve been successful with the price element when
customers feel that the benefits they receive outweigh the costs, and the
business is bringing in enough revenue to make a profit, while keeping
prices low enough to encourage sales.
GOALS
•Objectives they plan to fulfill
•Desired Outcomes
• Where it is they want to be
• What they want to achieve
GOALS
• Since marketers have many options to choose from
to reach their goals/objectives, they try to select the
best option available to them by considering the
following:
• How the marketing concept applies to their situation
• When they want to reach their goal
• Which resources are on hand
STRATEGIES
• A marketing strategy is the plan of action or
road map the business uses to accomplish
its marketing goals.
• Marketers customize their strategies based
on their goals/objectives and environment.
They adjust and/or combine strategies to
achieve their desired results.
• Strategies are carried out with tactics—the
specific actions used to carry out the
strategy.
THE PROCESS MARKETERS FOLLOW
WHEN THEY PLAN THEIR STRATEGIES
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They find out their company’s overall plan.
They figure out specifically where their firm needs to be by a particular date.
They write down agreed upon goals—where it is they want to achieve.
Example: A restaurant wants to increase this year’s sales by 10% over last
year’s sales.
They lay out their plan of action—their strategy—to show how they will reach
their goal.
Example: The restaurant evaluates its many options and decides to add a
kids’ menu to increase sales.
To be efficient, marketers choose their short-term actions—tactics—to carry
out their strategy. The tactics must be in line with their goal/objectives and
strategy.
Example: Tactics that the restaurant might use:
• Introduce meals which kids like.
• Offer a free ice-cream cone to each child selecting a kids’ meal.
FACTORS THAT MAY CAUSE
MARKETING STRATEGIES TO CHANGE
• Business situations change, which requires marketers to
look for challenges/opportunities along the way.
• Examples:
• Finding out that the company can’t handle distribution on its own
• Hearing about a new product with better features than the one
currently offered
• Figuring out that the price is slightly high for customers
• Seeing the company’s ad in the back of the newspaper instead of
in the section in which it was expected
• Learning of new government regulations that impact the business
• Watching the economy improve/worsen
• Marketers must react quickly and accurately to changes to be
able to achieve their goals/objectives.
• They must remain alert to changes in their environment.
TACTICS
Tactics are the specific
actions that a business
uses to carry out its
marketing strategies
THE RELATIONSHIP OF GOALS,
STRATEGIES, AND TACTICS
• Tactics are the specific actions that a
business uses to carry out its marketing
strategies. A marketing strategy is the
plan of action or road map the business
uses to accomplish its marketing goals.
Goals are desired outcomes. An option is
a choice among two or more
alternatives.
• It is very important to identify goals and
objectives before identifying strategies
and tactics so that marketers know what
they are trying to achieve before
determining how they’re going to go
about it.
• For marketers to achieve their desired
results, they plan where they need to go
and how to get there efficiently. Then,
they do what it takes to achieve those
results.
Strateties
Tactics
Goals
PERFORMANCE ACTIVITIES
1. Imagine that you are the marketing manager for your
school’s play or other school activity. Identify strategies that
you would use to market the play/activity. Explain why you
would use them, and summarize your plan in a brief
presentation for the play/activity directors.
2. Conduct research into the marketing strategies used by
local businesses that offer products similar to those that you
plan to sell. Identify the goals, strategies, and tactics that
you believe each firm is using. Find out as much as you can
about each firm’s marketing mix, and compare it to the
mixes of other firms. Determine whether each marketing mix
supports the goals and strategies of its firm. Record your
findings, and present your research to the class for
discussion. Then, insert your written findings in your VIP
portfolio.