A Strategic

Marketing
Framework

A Complete
Marketing Strategy

Marketing Strategy
Objectives
Mission statements describe the
customer orientation or business
philosophy
Corporate objectives state the
overall goals to be achieved in
financial terms

Marketing Strategy
Characteristics of well-written
objectives:
Lists a quantified standard of
performance
Designates a clear time frame
States goal in measurable terms
Should be challenging but realistic

Marketing Strategy
Customer and competitor targets
Which customer
groups should
be targeted?
Begin by
considering
the strategic
alternatives

Strategic Alternatives

Marketing Strategy
Key Strategies
Targeting the companys
own customers

Market
Penetration
Market
Development

Should be a high priority

Targeting competitors
customers
Riskier and more
expensive strategy
Common in slow growth
markets
Price promotions are key

Marketing Strategy
Key Strategies
Market
Penetration
Market
Development

Targeting non-buying
customers in currently
targeted segments
Is it profitable?

Targeting new
customers in new
segments
Will it require the
introduction of new or
modified products?

Marketing Strategy
Market Development Strategies:
Entering Foreign Markets
Requires decisions related to:

The choice of country or countries to enter

The timing of the entry
How to operate in the chosen countries

Five factors should be considered when

deciding how to enter a foreign market

Factors Affecting
Mode of Entry

Marketing Strategy
Product Features
After formulating
objectives and
determining
customer and
competitor targets,
the next key
decision is to
select the specific
features to include
in the product.

Marketing Strategy
Product Features
Different features are often used to
attract different segments.
Features may be product-specific or
package-related.
Creating several versions of a
manufactured good can be very
expensive.
Services and information packages are
more easily tailored.

Marketing Strategy
Core Strategy
The Value
Proposition
Differentiation
Product
Positioning

Marketing Strategy
Core Strategy
Summarizes into a
single paragraph:

The Value
Proposition
Differentiation
Product
Positioning

The customer
The competitive targets
The customers reason
for buying your brand

Forms the basis for

the marketing mix

Marketing Strategy
Core Strategy
The Value
Proposition
Differentiation
Product
Positioning

Competitive advantages
(CA) should have three
characteristics:
CA should generate
customer value
Increased value must be
perceived by the
consumer
CA should be difficult to
copy

Product & Service

Marketing
Strategy
Decisions
KeyGeneral
DecisionsApproaches to
Creating Competitive
Advantage
Cost- or price-based advantage
Quality-based or differentiation
advantage
Perceived quality or brandbased advantage

2 - 16

Marketing Strategy
Cost- or Price-Based Advantage
Difficult to achieve
Two primary methods of creating a costor price-based advantage:
Being the largest producer and benefiting
from economies of scale
Taking advantage of the experience curve

Strict cost control can also help smaller

firms or those with less experience to
develop a cost-based advantage

Marketing Strategy
Quality-Based Differentiation
Development of an observable
difference that is valued by
customers
Typically implies higher costs
Allows for both higher prices and
higher margins

Differentiation can occur at any

point within the value chain

Product & Service

Marketing
Strategy
Decisions
Differentiation
Opportunities
Key
Decisions
within the Value Chain
Inbound
Outbound
Logistics
Logistics
Operational
Marketing
Advantages
and Sales
Service
2 - 19

Marketing Strategy
Perceived Quality or Brand-Based
Differentiation

Perceptual product differences are often

used for differentiation when actual
differences are small, hard to achieve,
or difficult to sustain
Price, distribution, and marketing
communications can all contribute to
brand-based differentiation
Thorough understanding of consumers
perception of your brand compared to
competitors is require

Marketing Strategy
Core Strategy
The Value
Proposition
Differentiation
Product
Positioning

Positioning creates a clear

image in the mind of the
consumer of what the
product stands for and how
it is different from
competitive offerings
Involves both actual and
perceived differential
advantages
Repositioning can be
difficult for high awareness
brands

Marketing Strategy
Marketing Mix
Implementation of
the marketing mix
makes the
strategy
operational
Consistency
between strategy
and the actual
implementation is
critical

Ensuring a
Segment-Focused
Strategy

The Product Life Cycle

Product Life Cycle

Marketing Strategies
Conceptual tool best applied to product
categories rather than specific brands
Strategy options and the importance of
marketing mix variables vary across each
stage of the PLC
Not all product categories follow the
standard PLC curve

Product Life Cycle

Marketing Strategies
Stage of PLC

Introduction
Growth
Maturity
Decline

Market size and growth rate

are low
Selling & advertising: focuses
on the generic product
Pricing: penetration or
skimming
Distribution: limited as
product is unproven
First-mover advantage

Product Life Cycle

Marketing Strategies
Stage of PLC
Characteristics:

Introduction
Growth
Maturity
Decline

Growing competition
Price pressure
Market segmentation

Key strategic issues:

Market leader
Fight or flee

Market follower

Exit market and reinvest

Imitate leaders product
Fortify current position
Leapfrog competition

Product Life Cycle

Marketing Strategies
Stage of PLC
Characteristics:

Introduction
Growth
Maturity
Decline

Fierce market share battles, few

new buyers, large distribution,
large promotion costs,
competitive pricing

Key strategic issues:

Market leader
Invest enough to maintain
position or harvest for short-term

Market follower
Often dependent on market
leaders strategy

Product Life Cycle

Marketing Strategies
Stage of PLC

Introduction
Growth
Maturity
Decline

Many strategies for

reviving mature
product categories can
be applied to those in
decline
Being the last provider
in a truly dying market
can be profitable