Marketing Strategy

Marketing Framework

Marketing StrategyMarketing strategy is the link between corporate goals and operational tactics There are two primary considerations in marketing strategyWhere are we? Where do we want to go?

Portfolio Assessment ToolBoston Consulting Group matrixBrands or products are classified according to whether each has a strong or weak market share and slow or growing marketDog: low share, low growthStar: high share, high growthCash cow: high share, low growthQuestion mark: low share, high growth

BCG Matrix

BCG Portfolio AnalysisStars: optimize or holdDogs: minimize or divestCash cows: milkQuestion marks: unknownNew technologies, uncertain markets, etc.If stars and cash cows are sufficiently profitable, companies can carry dogs and question marks

Discussion QuestionsUsing the BCG MatrixWhere would you likely categorize the market leader in the typewriter market?10 years ago, where would you have likely categorized a small player in the cell phone business?Where would you categorize the market leader in cell phones today?

Corporate IdentityWhat is the companys typical philosophy toward the marketplace OffensiveDefensiveLeaderFollower

Corporate IdentityLeader has several meaningsLargest market share1st to marketFirst to market may or may not be beneficial because adoption can be slowQuick to innovate and improve, etc.Quick followers can learn from leaders mistakes

Corporate IdentityA company may be a leader for some of its brands/products and not others

A company may be offensive and defensive to vary its portfolio

A companys products life cycles may influence its identity

Marketing MetricsProfitabilitySalesShareAverage pricesLevels of awarenessPenetration in trialCustomer satisfactionEmployee satisfaction, etc.

How to Increase Profitability

DashboardIndicator of a companys success

Some measures will confirm advantages over competitors

Others can serve as a diagnostic in identifying problems

Discussion QuestionWhat story does the dashboard tell?

Example: Metrics

GoalsLets make more moneyLets delight our customersLets redefine our positionGoals about broader concerns

Lets Make More MoneyState sales objectives in terms ofCurrency Market shareUnits Change from last year or quarterRegionInvestments made toward current salesROI, ROE, ROM (marketing), ROQ (quality)Growth

Lets Delight Our CustomersEnhance customer satisfactionIncrease loyaltyReward influential customersSpread word of mouthOffer personalizationIncrease customer lifetime values

Lets Redefine Our PositionProductBuild new product salesBuild product categoryBuild brand equityAwarenessPositive brand associationsBrand preferenceTrial RepeatBrand loyaltyBrand love

Lets Redefine Our PositionPromotionSpend ad dollars more wiselyDetermine most appropriate mediaDetermine most appropriate frequencyDetermine most appropriate message, etc.

Lets Redefine Our PositionChannels (Place)Determine appropriate channels Determine multichannelsDetermine lower cost channel interactions Determine whether to outsource functions to channel partners, etc.

PriceDetermine high price or low price

Goals about Broader ConcernsGoals that go beyond marketing Human resource, finance, production, etc. Societal concernsCharitable or community contributionsBoosting stability of local employmentDemonstrating leadership in environmentally friendly business practices, etc.

GoalsGoals can be complex, numerous, interconnected and overwhelming

Focus on most important goals first

Consider the time frame and the financial support need to achieve the goals

Basic StrategiesDo nothingLet the brand sink or swim on its own

Do nothing differentlyMaintain business as usual

Take actionDo something differentMarketers have control over STP and 4Ps