business development& marketing research

8/3/2019 Business Development& Marketing Research

1/18

Marketing Strategy

Hierarchy of goals and objectives

Organizational Goals and Objectives

Marketing Goals and Objectives

Marketing Mix Goals and ObjectivesMarketing Mix Element Goals and Objectives


2/18

Marketing Strategy

What business are you in?

Mission statement

Statement of marketing strategy

Indicates product, market scope

Shows growth factor

Shows differential advantage

Shows management orientation


3/18

Marketing Strategy

Elements of Objectives

An effect

Benchmark + effect = Desired Outcome

Effect has to be measureable

Should be realistic

Timeframe for evaluation

Evaluation and effect should be related


4/18

Marketing Strategy

Marketing Strategy Development

Recognize and evaluate an opportunity

Market size and potential

Key competitors

Choose target market

Develop Objectives for each opportunity

Develop Marketing Mix Strategy for each opportunity

Choose Marketing mix elements


5/18

Marketing Strategy

Opportunity Evaluation

Review of the Rule of 3

Review of Requirements for Market Size

Review of Relevant Competitive Set


6/18

Marketing Strategy

Target Market Selection

Introduction to Market Segmentation

Review of the Strategic Options

Equivalent Behaviors as the Critical Variable


7/18

Marketing Strategy

Structure of Marketing Mix Strategies

Are all Mix elements equally important?

Product as the key

Example using Product Life Cycle


8/18

Marketing Strategy

Generic Marketing Strategies

Cost Leadership

Lower costs of production and distribution

Product Differentiation

Unique product or brand

Focus

Focus on customer needs in a few segments


9/18

Marketing Strategy

Product StrategiesProduct Mix Strategies

Market penetration versus market skimming

Quality

High

Medium

Low

Price

High Medium Low

Premium

Goods

Penetra-

tion

Super

Bargain

Over-

Pricing

Average

QualityBargain

Hit and

Run

Shoddy

Goods

Cheap

Goods


10/18

Marketing Strategy

Product Strategies

Product Market Growth Strategies

Market Penetration(increase usage)

Product Development(new uses)

Market Development(new users)

Diversification(new users, new uses)

Markets

Products

Old

Old

New

New


11/18

Marketing Strategy

Product StrategiesBoston Consulting Group Strategy:

Relative Market Share

Market Growth Rate

Problems with BCG Approach

Difficult to estimate relative market share in rapidly growing markets


12/18

Marketing Strategy

BCG Matrix:

StarsSome cash use

Future cash cow

Cash CowsGenerate cash for

?, Stars

DogsLow or no cash use

When to divest

?High cash use

? Is to build or not

Relative Market Share

10x 1.5x .1x (log scale)

Market Growth

Rate

22%

10%

0%


13/18

Marketing Strategy

Market Position StrategiesMarket Follower Strategies

Conscious Parallelism

Similar products, pricesAvoid unprofitable segments

Market Niche

Specialize in a very small group of customers

Concentrated segmentation strategy


14/18

Marketing Strategy

Market Position StrategiesMarket Leader Strategies

Increase Size of Total Market

Product-Market Growth StrategiesProtect Market Share

Fortification

Assortment of brands, sizesInnovation

Best defense is a good offense

Counteroffensive

Increase Market Share

BCG

Antitrust constraints


15/18

Marketing Strategy

Market Position StrategiesMarket Challenger Strategies

Frontal Attack

Out-innovate leaderTough to do, easier to defend

Flanking/Bypass Attack

Attack where leader is not looking

Find a new market segment

Price Discount Strategy

Buyers are sensitive to price

Works if leader does not cut price

Cheaper Goods Strategy

Lower quality but much lower price

Vulnerable to still cheaper goods

Prestige Goods Strategy

Increase both quality and price


16/18

Marketing Strategy

Market Challenger Strategies (cont.)

Cheaper Goods Strategy

Lower quality but much lower price

Vulnerable to still cheaper goods

Prestige Goods Strategy

Increase both quality and price


17/18

Marketing Strategy

Attacker(smaller)

Defender(bigger)

Position

Defense

Preemptive

Defense

Counteroffensive

Contraction

Defense

Flanking Defense

Mobile Defense

Flank Attack

Frontal

Attack

Encirclement

Bypass

Guerilla Attack


18/18

Marketing Strategy

Next time

MARKETING STRATEGY CASE

For Barco Projection, please prepare, by team, the casediscussion for class on 2/12. The deadline for receipt of

the PowerPoint presentation is noon 2/12.

Market Segmentation

Please read chapter 6

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