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McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

Developing Marketing Strategy

Chapter 07

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A Successful Strategy:

Enhances coordination among functional areas of organization

Defines resource allocation Leads to a superior market position

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Elements Of Strategy

The objective(s) to be attained Strategic alternative(s) Customer targets Competitor targets The core strategy Marketing mix support Functional programs support

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Hierarchy of Objectives

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Characteristics of good objectives

Should have quantified standards of performance

Should be ambitious enough to be challenging, but not unrealistic

Should have a time frame within which to achieve the objectives

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Strategic Alternatives

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Increasing Sales/Market Share

Market Development Strategies Market Penetration Strategies

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Components of Positioning

Customer targets Competitor targets Core strategy

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Key Considerations for Selecting a Customer Target

Size/growth of the segment Opportunities for obtaining

competitive advantage Resources available

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Target Segments for Handspring

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Positioning Decision Steps

Identifying alternative positioning themes Screening alternatives according to

whether they are meaningful to and believable by customers feasible given the firm and product resources competitively sensible helpful for meeting the product objective

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Positioning Decision Steps (Contd.)

Selecting the position that best satisfies these criteria

Implementing programs consistent with the product position selected

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Total Product Concept

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Five areas for differentiation

Quality Status and image Branding Convenience and service Distribution

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Joint Space for Colas

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Brand Value Chain

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Five As of Brand Building

Awareness Associations Attitude Attachment [loyalty] Advocacy

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Some Brand Attribute and Image Dimensions

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Ten guidelines for building strong brands

Brand identity Value proposition Brand position Execution Consistency over time Brand system Brand leverage Tracking Brand responsibility Invest

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IBM Notebook Computers: Purchase versus Positive Opinion

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Basic customer strategies

Customer acquisition Customer retention Customer expansion Customer deletion

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Strategy over the Life Cycle