Marketing Strategy
Chap1_abstract_John * Marketing Strategy
A comprehensive marketing strategy specifies the who, what, where, why, and how of the business: 1. Who the firm will serve—the customers and segments the business will serve; 2. When the firm will serve those customers and those needs—that is, what “occasions” the firm will target; 3. Where the firm will do business—the geographic markets the firm will serve; 4. What needs the firm will meet; 5. How the firm will serve those customers and needs—the means the firm will bring to bear to serve those customers and their needs better than the competition; 6. Why the firm will do these things—the compelling business model that specifies how long-term revenue will exceed costs by a reasonable rate of return on the capital employed. * Customer-driven strategy and three high-level decision 1. Target segments
Questions about who, when, where, and especially what. Focuses on strategic target or competitive scope. 2. Competitive advantage
Questions about how, and why. Focuses on strategic advantage or competitive advantage. 3. Singularity
The firm’s offering must be different from the competition’s in some way that some segment of customers will value. The strategy must be unique or singular and not in an inconsequential way. * Market-oriented strategy focused the organization on the customers it serves and the needs it meets. * One fundamental way to distinguish and organize generic marketing strategies is by competitive advantage and competitive scope. * Competitive advantage—differentiation or cost leadership * Competitive scope—segment scope and value-creating activities versus outsourcing. * Value is defined as what the customer gets(performance or quality) adjusted for what the customer gives(price). * Growth strategy—market development, diversification, market penetration, product development. * The strategic marketing analysis and planning process
A comprehensive marketing strategy specifies the who, what, where, why, and how of the business: 1. Who the firm will serve—the customers and segments the business will serve; 2. When the firm will serve those customers and those needs—that is, what “occasions” the firm will target; 3. Where the firm will do business—the geographic markets the firm will serve; 4. What needs the firm will meet; 5. How the firm will serve those customers and needs—the means the firm will bring to bear to serve those customers and their needs better than the competition; 6. Why the firm will do these things—the compelling business model that specifies how long-term revenue will exceed costs by a reasonable rate of return on the capital employed. * Customer-driven strategy and three high-level decision 1. Target segments
Questions about who, when, where, and especially what. Focuses on strategic target or competitive scope. 2. Competitive advantage
Questions about how, and why. Focuses on strategic advantage or competitive advantage. 3. Singularity
The firm’s offering must be different from the competition’s in some way that some segment of customers will value. The strategy must be unique or singular and not in an inconsequential way. * Market-oriented strategy focused the organization on the customers it serves and the needs it meets. * One fundamental way to distinguish and organize generic marketing strategies is by competitive advantage and competitive scope. * Competitive advantage—differentiation or cost leadership * Competitive scope—segment scope and value-creating activities versus outsourcing. * Value is defined as what the customer gets(performance or quality) adjusted for what the customer gives(price). * Growth strategy—market development, diversification, market penetration, product development. * The strategic marketing analysis and planning process