GSTIC Marketing
Goal
Strategy
Tactics
Implementation
Control
Elements of a Marketing Plan
Formulating Objectives
1. Goal focus ("what is the criterion of success?")
- Monetary (net income, margin sales, revenue etc.
- Non-monetary (sales volume, unit market share, etc.)
2. Performance Benchmarks ("how will we know we've achieved it?")
- Quantitative (by how much?)
-
Conducting a Situation Analysis (SWOT)
- A formal identification of the:
- Strengths
- Weaknesses
- Opportunities
- Threats
How to Conduct a SWOT analysis
1. Survey the marketing environment
2. Perform a SWOT analysis relative to the marketing environment
5-C Framework
- context
- company
- customers
- collaboration
- competitors
Identify Competitive Advantage
- Cost leadership
- Product/Service Leadership
- Niche strategies
Cost Leadership
Being the low-cost competitor in an industry while maintaining satisfactory profit margins (ex. Walmart)
Product/Service Leadership
The provision of something that is unique and valuable to buyers beyond simply offering a lower price. (ex. Iphone, Apple)
Niche Competitive Advantage
The advantage a firm seeks to obtain by effectively serving a single segment of the market
Identifying Target Customers
Step 1 - Define the market structure
Step 2 - Identify target customers
Step 3 - Develop a value proposition
Targeting is about
identifying who is your customer and also who is not your customer
What is a market?
1. People or organizations with
2. needs or wants that can be satisfied by the product category with
3. the ability and
4. the willingness to buy that offerings within that category
What is a market segment?
A subgroup of people or organizations sharing none or more characteristics that cause them to have similar needs
Importance of Market Segmentation
- Consumers have a variety of product needs and preferences
- By segmenting the market on the different needs, marketers can better address them
- Objectives can be more accurate and resources allocated more efficiently.
Criteria for Successful Segmentation
Substantial
- must be large enough to warrant a special marketing mix
Identifiable & Accessible
- must be identifiable, measurable, reachable
Responsive
- must respond differently than current segment/market
Mutually & Collectively Exclusive
- falls into
Bases for Segmentation
Value-based:
- customer needs and benefits sought
Profile-based:
- demographics
- geography
- psychographic profile
- behavioral profile
Benefit-based Segmentation
What are the benefits most likely to drive purchase/use?
Which customer groups/types are most likely to value those benefits?
Occasion-based Segmentation
-based on usage occasion
-when would consumers use/buy this?
Targeting Strategies
Mass Marketing
Segment-based Marketing
One-to-one Marketing
Segment-based and One-to-one marketing are feasible when...
benefits of developing different marketing mix for different segments (customers) outweigh the corresponding cost
Mass Marketing
views the market as one big market with no segmentation
advantage: potential savings on production and marketing
disadvantage: unimaginative product offerings, company susceptible to competition
One-to-one marketing
An individualized marketing method that utilizes customer information or interaction to build personalized experience
Position
- Define the target
- Establish frame of reference
- Establish primary reason for choice
Positioning Statements
Noncomparative and Comparative
- "Gatorade is a smart beverage choice for athletes becasue it rehydrates, replenishes, and refuels in ways water can not."
^ comparing to existing alternative i.e. water.
Repositioning a Brand
- Reacting to a change in the market (think evolution of Pepsi, Betty Crocker, etc.)
- Reacting to a new target market
- Reacting to a competitor's positioning
- Responding to legal challenges