Lecture 1: Marketing Strategy

Question 1

What does the framework of Marketing strategy to USP, Positioning look like?

Answer 1

First, research must be done about the market, which is done by looking at the 5 Cs:
- Customers
- Competition
- Collaborators
- Company
- Context

Use this research to create a marketing strategy, which consists of segmentation, USP and Positioning, Differentiation.

USP and Positioning is made up of 4 Ps:
- Products
- Promotion
- Place
- Price
This is the implementation part of the marketing strategy

Question 2

What is STP? What do they mean?

Answer 2

Segmenting:
- Segmenting is to divide the customer base into groups based on different bases. Some common bases are:
- Geographic
- Demographic
- Behavioral
- Psychographic

Targeting:
- Targeting is choosing which customer segment to focus on. Not all customer segments want the same thing, they all need different targeting strategies.

Positioning:
- Positioning refers to creating a marketing mix that would focus on your specific chosen customer segment.

Question 3

What is a value proposition and USP?

Answer 3

A Value proposition is a quote that represents the aim and benefits a product or a company brings to the customer

A USP (Unique selling point) is something that is used to differentiate a product from other products

Question 4

A Marketing Mix is made up of 4 Ps, what are they?

Answer 4

Product
Promotion
Place (channel of distribution)
Price

Question 5

When segmenting a market, what are the conditions that the segment has to meet? (MASDI)

Answer 5

M - Measurable: The segment has to be able to be measured in some way.

A - Accessible: The customers in the segment are reachable and can be properly served

S - Substantial: The segment has to be profitable enough to serve.

D - Differentiable: The segment responds to the company’s differentiable marketing

I - Implementable: The company can attract and serve the segments

Question 6

What are some ways of assess segment attractiveness?

Answer 6

Segment profitability (ROI, PIE, Margins)
Segment growth (stage of PLC)
Segment Size
Segment accessibility
Segment competition
Segment equilibrium (Stable, Fluctuating, Volatile)

Question 7

What is Product Positioning? Brand Positioning? Brand Re-positioning?

Answer 7

Product positioning refers to the place of a product in the company’s product line, or in relation to competitive products

Brand Positioning refers to what the brand promises relative to the company’s own brands and competitive brands

Brand re-positioning refers to when a brand attempts to alter its position in the market while maintaining the company’s identity

Question 8

In software services, what are pool and river customers?

Answer 8

Pool customers are those who are static and usually buy very few/limited products over their life time.

River customers are those who are always generating new revenue by upgrading and buying the new products.