Day 2 - Marketing

MARKETING STRATEGY


MARKETING STRATEGY HANDOUT:
http://dl.dropbox.com/u/5046837/MASTERS%20PROGRAM/Day%202%20-%20Marketing/MARKETING%20STRATEGIES.doc


Do you remember the questions that I asked you yesterday when I wanted you to research the existing competitors to your company?








  • What are the goods or services that they sell?
  • Who are they trying to market / sell to?
  • How expensive are their goods / services compared to their other competitors?
  • Where do they advertise (Internet, TV, Radio, Print, Billboard, Word of Mouth, etc.) and where do they actually sell their product or service (Internet, Retail Outlet / Kiosk / Storefront / , Combination of both, TV, Mail Order, Telephone Solicitation, etc) ?
These questions pertain to the competitor's Marketing Mix.  





4 P's - MARKETING MIX
1.) PRODUCT
2.) PRICE
3.) PLACE 
4.) PROMOTION



  • Which questions go with which P?
  • What is the Marketing Mix for your company?











Elements of the marketing mix are often referred to as 'the four Ps':
  • Product - A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration.
  • Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.
  • Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.
  • Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations (see Product above).

MARKET DOMINANCE STRATEGIES - (Example: Cell Phone Service Provider)
  • Leader - Verizon
  • Challenger - AT&T
  • Follower - Sprint, T-Mobile
  • Nicher - Boost Mobile, Jitterbug
SOURCE: http://en.wikipedia.org/wiki/Marketing_strategy
Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:




  • Leader
  • Challenger
  • Follower
  • Nicher


PORTER'S GENERIC STRATEGIES


PORTER’S GENERIC STRATEGIES - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.

  • Product differentiation (broad) – Target
  • Cost leadership (broad) – Walmart
  • Market segmentation (narrow) – Toys R Us / Best Buy, Nordstrom’s / Bloomingdale’s / Dollar General / Family Dollar
INNOVATION STRATEGIES
Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types
  • Pioneers – Amazon Kindle
  • Close followers – Sony Reader
  • Late followers – Apple IPad
GROWTH STRATEGIES

Growth strategies - In this scheme we ask the question, “How should the firm grow?”. There are a number of different ways of answering that question, but the most common gives four answers:
  • Horizontal integration – Gap / Old Navy / Banana Republic
  • Vertical integration – American Apparel
  • Diversification – General Electric
  • Intensification - McDonald's











    Enhancing your PowerPoint Presentations
    • Pictures
    • Hyper links
    • Tables
    • Charts
    Day 2 Checkpoints
    1. Complete and Reformat the Day 1 Checkpoints in a Word Document as you would like it to appear on the website.  
    2. Take a look at the PowerPoint Presentation, and fill in your Marketing Matrix, and discuss 2 of your closest competitors marketing matrices.   
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