Marketing Strategies



Marketing StrategiesDavid ObioraAET 552June 20, 2016Dr. Dennis MorrowIntroduction Although all marketers may not agree on a common definition of marketing strategy, the term generally refers to a company’s plan that allocates resources in ways to generate profits by positioning products or services and targeting specific consumer groups. A marketing strategy will help a company/organization focus, and will identify the different ways companies/organizations can talk to their customers, and concentrate on the ones that will create most sales. It tells a company/organization what to say, how to say it and who to say it to in order to make more sales. Because timing is critical, it will tell a company when to say it, too. Companies rely on marketing strategies to establish product lines or services as well as for new products and services. According to Sengupta, (2005), the major concerns of marketing are usually referred to as the "four Ps" or the "marketing mix": product, price, place, and promotion. Competition is the primary motivation for adopting a marketing strategy. Segmentation, differentiation and Positioning in MarketingA company cannot devise a market strategy without market segmentation. Market Segmentation refers to the process of creation of small groups (segments) within a large market to bring together consumers who have similar requirements, needs and interests, Smith, (1956). Through segmentation, organizations can identify places/roles with specific needs. The needs of each segment are the same, so marketing messages should be designed for each segment to emphasis relevant benefits and features required rather than one size fits all for all customer types. This approach is more efficient, delivering the right mix to the same group of people, rather than a scattergun approach.After a segmentation analysis is conducted and available market opportunities are revealed, the marketer enters the next phase of the marketing process, which involves the following two steps:1). how many market segments should be entered2).which segments offer the most potential for the product or company.Differentiated marketing falls under the first step, “how many market segments should be entered.” There are three market coverage alternatives under this step, they include:Undifferentiated Marketing: This strategy usually inexpensive because companies directs same message at the entire market (one size fits all approach).Concentrated Marketing: This is the cheapest market because it focuses on one segment which is been blasts/overwhelms with same message. In other words, you have one product and one message going to a small number of people (that you're putting all of your eggs in one basket).Differentiated Marketing: Differentiated marketing offers products or services to a number of market segments and develops separate marketing strategies for each. It has the most coverage and with the highest potential for profit because it goes after several different segments but with messages specially customized for each segment.Positioning is an essential component and skill in good marketing; and is the final stage in the ‘STP’ process. It focuses on how the customers ultimately view a company’s and, or organizations’ product or service in comparison to their competitors. Ries and Trout,(1981), describes the marketing positioning strategy as an organized system for finding a window in the customer’s mind, based on the idea that communication can only take place at the right time and under the right circumstances influence the way their target audience perceives them. In other words, "the place a product occupies in consumers’ minds relative to competing products". This means that customer perceptions have a huge impact on the brands positioning in the market, and as such, must be taken seriously in every marketing decision. There are three types of positioning that are key in positioning the brand to a competitive advantage; these are Functional Positioning, Symbolic Positioning, and Eexperiential positioning. Marketing Strategy exampleColloquy Grog Shop: Colloquy Grog Shop's strategy will be based on communicating Grog Shop's value to the targeted segments. This will be done through a variety of methods. The first method will be strategically placed advertisements. One place that will be used for advertisements is the Willamette Weekly, the liberal arts magazine that details all of the entertainment in Portland. This will be the main source of advertisements because the demographics of their readership are fairly similar to Colloquy Grog Shop's demographics. The other form of advertising will be using "grassroots" methods where customers will be given coupons for their friends to try Colloquy Grog Shop for the first time. The coupon will be an economic incentive for the newcomer to try Colloquy Grog Shop. The coupon also has the added force of a referral from a friend.Tesco: A UK-based retailer Tesco has focused its next-best-offer (NBO) strategy on increasing sales to regular customers and enhancing loyalty with targeted coupon offers delivered through its Club card program. Tesco uses Club card to track which stores customers visit, what they buy, and how they pay. This has enabled the retailer to adjust merchandise for local tastes and to customize offerings at the individual level across a variety of store formats, from hyper-marts to neighborhood shops. For example, Club card shoppers who buy diapers for the first time at a Tesco store are mailed coupons not only for baby wipes and toys but also for beer. (Data analysis revealed that new fathers tend to buy more beer, because they are spending less time at the pub.) . This strategy seeks to expand the range of customers’ purchases, but it also targets regular customers with deals on products they usually buy. As a result of its carefully crafted, creatively executed offers, Tesco and its in-house consultant dunnhumby achieve redemption rates ranging from 8% to 14%—far higher than the 1% or 2% seen elsewhere in the grocery industry.Anheuser Busch: Another source of marketing will be done with strategic relationships with companies that have similar customer demographics. One prime example is the alcohol beverage brewer, Anheuser Busch, which makes the Bud Light brand of beers. The company segmented their marketing efforts across several markets, and focused on three segmented markets for their advertisements. Example, when their advertisement segments focus on the following markets (groups): same-sex couples, Hispanics, and African American’s. Each market segment would need a separate market strategy with messages specially customized for each segment. ConclusionTarget the proper segment and you will walk away with a better company and a higher profitability. With that said, the organizations/companies discussed above are meeting customer expectations and delivering on their promise. Companies that have systematically gathered information about their customers, product attributes, and purchase contexts can make much more sophisticated and effective offers. The above described process demonstrates the links between an overall market and how a company/organization chooses to compete in that market. It is sometimes referred to as a process, with segmentation being conducted first, then the selection of one or more target markets and then finally the implementation of positioning. The goal of the above described process is to guide the organization to the development and implementation of an appropriate marketing mix.ReferencesRies, A. and Trout, J. (1981) Positioning, The battle for your mind, Warner Books - McGraw-Hill Inc., New York, 1981, ISBN 0-446-34794-9Sengupta, S. (2005). Brand positioning: Strategies for competitive advantage. New Delhi, India: Tata McGraw – Hill Education.Smith, W. R. (1956). Product differentiation and market segmentation as alternative marketing strategies. Journal of Marketing. (Vol. 21, Issue 1, July). p3-8.Cravens, David W., and Charles W. Lamb Jr. Strategic Marketing Management Cases. Boston: Irwin, 1993. ................
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