Marketing strategy.

Marketing strategy defines the broad principles by

which business unit expects to achieve its
marketing objectives in a target market.
It consists of basic decisions on total marketing
expenditures, marketing mix & marketing
allocation.
Marketing strategy is a basic statement about the
desired impact to be achieved on demand in a
given target market.
Marketing is merely a civilized form of warfare in
which most battles are won with words, ideas &
disciplined thinking.
Marketing strategy

1. Stimulating primary demand by
a. Increasing no. of users.
b. Increasing the rate of purchase.

2. Stimulating selective demand by
a. Retaining existing customer.
b. Acquiring new customer.
1. Marketing strategy for stimulating primary
demand.
a. Increasing no. of users by
i) Increasing willingness to buy
- Advertise benefit of product form or class.
- Develop product line extension.

ii) Increasing ability to buy
- Reduce price.
- Provide financing.
- Provide broader distribution.
b. Increase rate of purchase
i) Broadening product usage.
ii) Increasing product consumption level.
iii) Encourage replace due to product redesign -
- Promote alternative uses.
- Design new benefits for existing customer.
- Reduce price.
- Repackage in different sizes.
- Promote uses of related products.
2. Marketing strategy for stimulating selective
demand.
a. Retention of customer by

i. Retention of satisfaction for product
performance
Advertise quality.
Advertise familiarity.
Redesign products.
Provide special services.
ii. Simplifying the buying process
Provide superior delivery.
Offer bundles of products.
Use sole source selling.
Provide price protection.
Use system selling.
iii. Reducing attractiveness of or
opportunities of switching
Develop brand extension.
Offer multiple brands.
Facilitate system expendability.
Reduce price.
b. Acquisition of customers by

i. Head to head positioning
Develop superior features on determinant
attributes.
Reduce price.
Advertise more.
Use broader distribution.

ii. Differentiated positioning
Design & promote unique benefits.
Use unique distribution channels, package
service, pricing.
Selecting a marketing strategy.
The marketing strategy must be consistent with
product objectives.
Problems & opportunities regarding buyer
needs, market measurements & profitability
must be determined from situation analysis.
The problems & opportunities associated with
implementing a strategy must be considered.
Competitive analysis for selective demand
strategies.
The marketing strategy selection process.
Product objective
Situation analysis Competitive analysis
Marketing strategy
I. Product objective Marketing strategy.
1. To achieve viable level of sales.
Primary increase no. of users.
2. To achieve viable market share. ( New brand )
Selective acquisition of customers.
3. Market share growth.
Selective acquisition of customers.
4. Market share maintenance.
Selective acquisition & retention of customer.
5. Cash flow maximization.
Selective retention or primary increase rate
of purchase.
6. Sustaining profitability.
Selective retention in limited segment.
7. Harvesting.
Selective retention with minimum effort.
II. Implication for primary demand strategy &
programs.
Market measurement & forecasting.

Market analysis & market segmentation.
III. Implication for selective demand strategy &
programs.
Company sales forecast & productivity
estimates.
Profitability analysis.
Situation analysis will provide insight into
a. What factors influence buyer search & choice.
b. Buyer usage pattern & related use products &
service.
c. Who the primary competitors are?
d. What alternative segmentation opportunities
exist?
IV. Developing & using competitive analysis
elements.
1. Competitive market share.
2. Competitive attribute analysis.
3. Competitive distribution analysis.
o Number of retailers, whole sellers carrying
products.
o Amount & visibility of shelf space given.
o Amount of distributors selling effort.
o Inventory carried by distributor.
o Costumer service level.
o Degree to which the type of outlets used is
consistent with buyer patronage.
4. Competitive resource analysis.
o Sales force size, call frequency, experience.
o Advertising & promotional budgets.
o Production capacity, technology & economies
of scale.
o Relative contribution margin.