Marketing Strategy Flashcards
marketing strategy
the art and science of choosing target markets and building profitable relationships with them
a marketing manager should always strive at building profitable relationships with customers
3 important questions in a market strategy
what customers will we serve ( target market )
dividing the market into customer segments
determining which segments offer the best opportunities
how can we serve these customers best ( value proposition )
combination of functional benefits, diminished sacrifices and emotional values
differentiate and position on the market
define benefits
what is the value you want to realise for your company ( company objective )
revenue, profit
value for customer ~ value for the company
what does the loss of one customer mean for a company
customer lifetime value
value of the entire stream of purchases a customer makes over a lifetime of patronage
STP process
market is SEGMENTED
A TARGET market is chosen
A POSITIONING is chosen
Segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics or behaviours and who might require separate products or marketing programs
Distinct groups
Groups that belong to one group and cannot belong to another
targeting
the process of evaluating each market segments attractiveness and selecting one or more segments to enter
Example bud light
Bud light could loose its status, people who drink beers could be very masculine, suddenly having a trans person drinking beers can be a threat for the brand
Dont try to please everyone: choose one market segment. Keep it simple
Positioning
give the product/brand a clear and distinctive and desirable place in the minds of the target consumers relative to competing products through a clever marketing mix
different types of targeting
mass marketing
differentiated marketing
niche marketing
micro marketing
mass marketing
The approach of selling a product to the general population: Take it or leave it.
differentiated marketing
Target different segments, and for each segment a solution
niche marketing
a small, less profitable, One segment solution. usually a special segment
micro marketing
micro marketing is like designing your own shoes or personalisation
positioning statement
Summary of positioning in one sentence
all stakeholders have to agree with statement
structure and steps of positioning statement
TO …. (Who)
The ( product name)
is ( product category ) ( also identifies competition)
from ( brand)
that ( customer promise )
Because (reason to believe)
6 steps before creating a position statement
- Define competition
- who is your customer
- what your company does best
- laddering to create a story telling, connect functional and emotional values + Customer
- positioning strategy and positioning objectives
- summarize everything into one sentence
- define competition
define market and analyze the positioning of your direct and indirect competitors
to what product category does your product belong
- who is your consumer
use a persona to describe your target group
socio demographic data
attitudes, needs and values
- what does she/he think about your product?
whats the reason to buy your product? whats important in her/his life?
frustration points
- what are things that disturb her? why isnt he
buying or using the product?
core insight
- look under the blanket. ask the question ‘why’ until you reach the emotional level.
- What your company does best
allocate about 10 product or brand characteristics to the right zone.
3 Cs
Product attributes
create a value curve
customer value expectations segment a
market offering
customer value expectations segment B
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- laddering
laddering for strong points/PODS. From product attribute, consumer benefit to end value
positioning strategy based on heartshare
rational or emotional
informational strategy or transformational strategy
imagery vs performance
To increase brand awareness by making your product a low involvement product, going from performance straight to resonance.
giving an organ is high involvement, execution can make a product either low involvement or high involvement
- positioning strategy
AIDA objective?
positioning strategy: informational, transformational, brand preference of brand behaviour?
what are influencing elements?
involvement
product type
product lifecycle of the product
choose on which level you want to communicate = customer promise and choose afterwards the level that supports you claim (=reason to believe)
- summarize everything into one sentence
“To (target group) the ( product name ), is (product category) from (brand) that (customer promise) because (reason to believe).
