Marketing Strategy

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• Marketing Strategy

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Why do markets exist?

• Raw material scarcity
• Labor specialization
• Learning curves
• Consumption satiation

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The Exchange Process

• Two or more parties give something of value to
  each other to satisfy felt needs.

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Does Marketing Create Artificial Demand?
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What is STRATEGY?

• A campaign to win in a competitive situation,
  taking into account your resources, your
  competitions resources and the nature of the
  battlefield to obtain a sustainable competitive
  advantage.

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What is Marketing Strategy?

• It means deliberately choosing a different set of
  activities OR choosing to perform activities
  differently than rivals do to deliver a unique
  mix of value to the target market.
• Strategy rests on unique activities.
• Two components of marketing strategy
• Target market selection (STP)
• Selection of marketing mix variables

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• if you dont know where you are going,
  all roads will take you there!
• Strategy provides the directions!

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The Essence of Strategy!

• A company can outperform rivals ONLY if it can
  preserve a difference. Sustainable advantage.
• A sustainable position requires tradeoffs.
• What does Southwest Airlines do?

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Example Southwest Airlines

• If you get your passengers to their destinations
  when they want to get there, on time, at the
  lowest possible fares, and make darn sure they
  have a good time doing it, people will fly your
  airline.

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The Notion of Fit
No connections
No transfers
Limited Passenger Amenities
Point-to-Point flights
Frequent Departures
Limited use of travel agents
Standard fleets
15 min. turnaround
Automatic Ticketing machines
Flexible Union contracts
Low prices
Lean and productive crew
High aircraft utilization
High employee compensation
Emply. Stock ownership
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Porter's initial response strategies

• Cost leadership strategy
• Differentiation strategy

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THE BIG IDEA Strategy is all about focus You
cannot both be an IMAGE LEADER Penny Pinching
COST LEADER
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STAR
10 Strategy 90 Implementation
0 Implementation 100 Strategy
Professor
100 Implementation 0 Strategy
Middle Management
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Back to Marketing Strategy!
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Target Market

• Group of people toward whom the firm decides to
  direct its marketing efforts

TargetMarket
Bottled Water!
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The Marketing Mix
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Product Positioning

• Positioning starts with a product. Positioning is
  not what you do to a product. Positioning is
  what you do to the mind of the prospect. That
  is, you position the product in the mind of the
  prospect.
• Al Ries and Jack Trout (1981)
• The way the product is defined by consumers on
  important attributes!

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Product Positioning using perceptual maps
Socially Beneficial
Larry King
Oprah Winfrey
Regis and Kathy Lee
Not Intellectual
Intellectual
Not Socially Beneficial
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Product Positioning using perceptual maps
Socially Beneficial
Larry King
Oprah Winfrey
Regis and Kathy Lee
Not Intellectual
Intellectual
Not Socially Beneficial
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Product Positioning using perceptual maps
Socially Beneficial
Larry King
Oprah Winfrey
Regis and Kathy Lee
Rosie ODonnell
Not Intellectual
Intellectual
Not Socially Beneficial
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Product Positioning using perceptual maps
High moisturizing
Zest
7
Tone
4
Lever 2000
2
Dove
5
Market Segment
Safeguard
Coast
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Lux
Nondeodorant
Deodorant
3
1
Dial
Lifebuoy
Lava
Individual Brand
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Low moisturizing
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Product Positioning using perceptual maps
High moisturizing
Zest
7
Tone
4
Lever 2000
2
Dove
5
Safeguard
Coast
8
Lux
Nondeodorant
Deodorant
3
1
Dial
Lifebuoy
Lava
6
Low moisturizing
25
Product Positioning using perceptual maps
High moisturizing
Zest
7
Tone
4
Lever 2000
2
Dove
5
Safeguard
Coast
8
Lux
Nondeodorant
Deodorant
3
1
Dial
Lifebuoy
Lava
6
Low moisturizing
26
Product Positioning using perceptual maps
High moisturizing
Zest
7
Tone
4
Lever 2000
2
Dove
5
Safeguard
Coast
8
Lux
Nondeodorant
Deodorant
3
1
Dial
Lifebuoy
Lava
6
Low moisturizing
27
Product Positioning using perceptual maps
High moisturizing
Zest
7
Tone
4
Lever 2000
2
Dove
5
Safeguard
Coast
8
Lux
Nondeodorant
Deodorant
3
1
Dial
6
Lifebuoy
Lava
Low moisturizing
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Positioning is determined by the firms resources
and capabilities in conjunction with the needs of
the market!
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What do the 4Ps do?
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Marketing is Business Strategy first.
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The new world of Marketing...5Cs framework!

• Consumer Centered
• Competition New Rules, New Ways
• Company Resources, Capabilities
• Collaboration Alliances Collaborations
• Context New markets, New technologies

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SWA
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Levels of Strategy

• Corporate Level
• Business Unit Level
• SBUs - a subgroup of a single business or
  collection of related businesses
• Functional Level
• Marketing