How To Plan Your Marketing Strategies

How To Plan Your Marketing Strategies By MRJ

Competitive advantage Something set you apart from your rivals & makes your product more appealing to customers

Strategic marketing planning Involves: Examining current market situation Assessing opportunities & setting objectives Developing marketing strategy to reach objectives Purpose: Help to identify & create competitive advantage Results: “ Marketing Plan”

Strategic marketing planning process Examine Current Marketing Situation Review past/current Performance Evaluate competition Examine internal strengths & weaknesses Analyze external environment Develop Marketing Strategy Segment Market Choose Target Market Position Product Develop Marketing Mix (4P’s) Assess Opportunities & Set Objectives Assess product & market opportunities Set specific & measurable objectives

Step1: Examining Your Current Marketing Situation Reviewing Performance (how well each product is doing in each market where it sold) Evaluating Competition Examining internal strengths & weaknesses Analyzing external environment & tomorrow changes

Reviewing Performance Use history of marketing performance to explore: Slowed sales Prices cut & profit rate Improved sales Cash investment in new marketing activities Review where you are Review how you got there Repeat successes & learn from mistakes

Evaluating Competition Keep an eye on competition Pay attention to another ways customers satisfied with Watch horizon for not-existed competitors

Examining internal strengths & weaknesses Look at: management, financial resources, production capabilities, distribution networks, managerial expertise, promotional capabilities, ability to adjust your operation to different (cultures, customs, legal requirement & product specifications), technological expertise, & business commitment Identify sources of competitive advantage (strengths) Identify areas need improvement (limitations) Analyze & decide whether: Limit your business to opportunities which possess the required strengths Challenge your business to reach higher goals by acquiring & developing new strengths

Analyzing external environment & tomorrow changes Change in marketing approaches Change in technology Technology Control the marketing On product design, pricing, advertising, activities Laws & regulations Needs more advertising to build awareness about product benefit, products modifications to respond Trends against product, change in tastes Social & cultural trends Affect product availability, affect behavior of target customers interruptions in the supply of raw materials, floods, droughts, & cold weather Natural environment put off buying expensive items, pent-up demand interest rates, inflation, unemployment, personal income, saving rates Economic conditions impact specifics Factors

Step2: New marketing opportunities: market penetration (Selling more of your existing products in current markets) Product development (creating new products for your current markets) Geographic expansion (selling your existing products in new markets) Diversification (creating new products for new markets) Set SMART objectives (eg.certain level of market share,…etc) understood & known by employees

Market Share A firm’s portion of the total sales in a market

Step3: Developing Your marketing Strategy Divide your market into segments & niches Choosing your target customers Position to be established in these markets Developing a marketing mix to help you get there

Definitions Marketing Strategy: overall plan for marketing a product Market: people or businesses who need or want a product & have the money to buy it Market segmentation : division of total market into smaller relatively homogeneous groups

Dividing Markets Into Segments Objective: to group customers with similar characteristics, behavior, & needs then target them by offering products Priced, distributed & promoted differently.

Factors to Identify Market Segments - Categorization of customers according to their relationship with products (knowledge, attitude) or response to product characteristics Behavior Ease the customiztion Method of combining geographical data with demographics data to develop profiles of neighborhood segments Geodemographics - Classification of customers on the bases of their psychological makeup, by focusing on: * psychological makeup (including activities, attitudes, interests, opinions, & lifestyles) ** why people behave the way they do (by examining brand preferences, media preferences, reading habits, values, self-concept) Psychographics - Categorization of customers according to geographical location (such as regions, cities, counties or neighborhoods) to customize & sell products meet needs of specific markets (assuming buying behavior influenced by people location) Geographics Poor indicator of behavior Study of statistical characteristics of a population (age, gender, income, race, occupation, ethnic group) Demographics Effects specifics Factors

Choosing Your Target Markets Deciding which segment to target & when Target markets: specific customer groups or segments to whom a company wants to sell a particular product Criteria to narrow the focus into suitable market segments: Size of segment Competition in the segment Sales & profit potential Compatibility with company resources Strengths Costs Growth potential Risks

Strategies To Reach Target Markets Undifferentiated marketing (mass marketing) Differentiated marketing Concentrated marketing

Undifferentiated marketing Ignore differences among buyers & offer only one product or product line to satisfy the entire market Concludes: All buyers have similar needs All buyers can be served with same standardized product

Differentiated marketing Sell a variety of products to several target customer groups Requires Substantial resources, why? Marketing have to tailor products, prices, promotional efforts & distribution arrangements for each group Which marketing is mostly used in pakistan differentiated or undifferentiated explain why

Concentrated marketing Acknowledge that different market segments exist & choose to target just one Useful when company resources are limited Allows to focus time & resources on single type of customer Risky strategy (stake company fortune on one segment)

Positioning Your Product Using promotion, product, distribution & price to differentiate a good or service from those of competitors in the mind of prospective buyer Factors: Features Performance Quality Durability Reliability Style Design Customer service (ordering ease, delivery, installation methods, & customer support)

Developing The Marketing Mix The four key elements of marketing strategy: product, price, distribution (place), & promotion Product covers Product itself + brand name, design, packaging, services, quality, & warranty. Price: amount of money paid for product (include discounts) Distribution: organized network of firms move goods & services from producer to consumer Promotion: includes communication & promoting activities of product to target markets (e.g. advertising, personal selling, public relations, sales promotion)

Positioning & the Marketing Environment Target Market Ethics Social responsibility Society Technology Politics Regulation Nature Economics Competition Distribution Price Promotion product

How To Plan Your Marketing Strategies

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