Marketing Strategies BMI3C

The Marketing Strategy  A marketing strategy outlines how the company will carry out the marketing plan.

The Marketing Plan 1. States the marketing goals of the business eg. To introduce a new product; To gain interest in a cause; To promote an idea describes the target markets lists as many competitors as possible 2. Research creates a plan for gathering and analyzing information that will support or alter the initial marketing goals in step 1 3. State how the product will be positioned in the marketplace. Based on steps 1 & 2, this plan should: provide a rationale for these positioning statements describe the methods that are needed to differentiate the product in the market 4.Include a section on selected pricing strategy (a rationale for setting the price)

The Marketing Plan 5.Describe the channel of distribution existing channels future distributions to the consumer the logistics involved 6.Set up a promotional proposal.  This section should provide: a rationale for the creation of the advertising message select the media that will be used to convey the message outline the various promotional activities. make a sales forecast based on the new marketing plan indicate how the marketers will monitor the plan’s success

Brand Strategies  The primary goal of brand strategy is to show the consumer the value of the product.  The consumer must be convinced that the expectations outweigh the costs. Costs = money + time spent finding the product + energy to acquire and set it up, etc. Cost could also include personal costs (i.e. prestige, status, appearance, reputation, etc.)

The value equation  A value equation adds together all the benefits of a product and subtracts the costs involved  The benefits and the costs are assigned values that represent their importance to the consumer  The consumer will only purchase a product if it has a positive value

Example  March Break Trip to Cuba BenefitValue /10 Pleasure6 Prestige4 Adventure7 Tan3

Example  March Break Trip to Cuba CostValue /10 Monetary Cost10 Health/Safety5 Timing4 Complexity2

Example  Total Benefits (20) - Total Costs (21) = -1  Therefore you are unlikely to go on this trip

Example  If, however, the Cuban tourism association runs an ad campaign that makes Cuba look awesome, maybe your “pleasure” rating goes up 2 points.  On top of this, they make it look very safe, lowering your “safety” cost by 2 points.  Now:  Total Benefits (22) - Total Costs (19) = +3  Therefore you are likely to go on this trip

Brand Image  Packaging, brand names, slogans, and trademarks are used to develop a positive brand image.  This image is communicated to the consumer through advertising and promotional activities.

Distribution Strategies  Distribution strategies focus on the best way to deliver a product to the target market.  There are 3 ways to achieve this type of goal: Push Strategy Pull Strategy Combination

Push Strategy  Sell the product to the retailer  The idea is that if the product is out there, the consumer will see it & they will buy it  Promotional activities are focused on the distributor Buying incentives (promotional discounts), prizes, display fixtures encourage the store to carry the product.

Pull Strategy  Attempts to increase consumer demand directly  Manufacturers try to convince the consumer to buy their brand name product  This requires major advertising and promotional effort  It also requires distribution partners to fulfill the demand – consumers demanding your product can open up new distribution channels

Combination  Push and pull strategies are often combined  The pull strategy needs to combine with the push strategy to be effective; however, the push strategy can stand alone