2. Developing a Marketing Strategy & the Benefits
Identify a competitive advantage
Tailored and effective marketing activities
Market Segmentation
Target Marketing
Increased customer base
Effective use of resources
Positioning
Develop marketing mix
Positioning & differentiation
Increased sales/profits
Stimulates innovation

3. Develop Marketing Mix(es)
Overview of a Marketing Strategy
Market Segmentation
Market Targeting
Market Positioning
Develop Marketing Mix(es)

4. Defining Market Segmentation
…the process of dividing a market into similar groups
Hair Salon
Landscape Gardener
Females 10yrs - 60yrs+

5. Essential Criteria of a Market Segment
Substantial: Large and profitable enough to serve
Accessible: Can be effectively reached and served
Differential: Segments must respond differently to different marketing mix elements
Actionable: Effective marketing activities can be designed to attract and serve the segments
Measurable: Size of segments can be measured

6. Geographical Demographic/ Firmographic Behavioural Psychographic
Segmentation Variables
Consumer market
Commercial Market
Geographical
County, region, town, postcode, mile radius
Demographic/
Firmographic
Age, gender, income, occupation, dependants, household composition
Turnover, size, employees, business activity, industry
Behavioural
Usage rate, loyalty, impulse buying, benefit expectations, price sensitivity
Usage rate, end product use, benefits sought, purchase procedure, buying status
Psychographic
Lifestyle, interests, attitudes, personality traits, opinions
Socially responsible, entrepreneurial, employee focused, financially prudent

7. Market Segment Profile
Demographic/firmographic characteristics
Location
Needs/wants
Benefits sought
How much customers purchase
How much customers spend
Frequency of purchase
Payment method
Purchase decision factors
Attitudes towards product or service
Brand loyalty
Mediums used to source product or service

8. Target Marketing Strategies
mix
Market
UNDIFFERENTIATED
MARKETING
Segment 1
Marketing
mix
Segment 2
Segment 3
CONCENTRATED
MARKETING
Marketing mix 1
Segment 1
Marketing mix 2
Segment 2
Marketing mix 3
Segment 3
DIFFERENTIATED MARKETING

9. Marketing Strategies & Factors to Consider
Resources
Capabilities
Product variability
Market variability
Competitors' marketing strategies
Market environment

10. Evaluating Market Segments
Expected growth rates
Demand
Profitability
Competition intensity
Competitive advantage
Speed of payment
Price sensitivity
Cost of marketing activities
Compatible with business aims and objectives

11. Quantitative Measures of Market Segment Attractiveness
Key Success Factors
Market Segment 1 2 3 4
Sales potential 8 6
Competition intensity
Sensitivity to price 7 5
Market growth rate
Market size
Ability to meet needs
Total 17 41 30 44

12. Positioning Strategies
Product attributes
Usage occasions
Users
Against a competitor
Away from competitors
Product classes
A combination of the above approaches

13. . . Positioning Map High Prestige Inexpensive Expensive Low Prestige
Product b .
Product a
Inexpensive
Expensive
Product d
Product c
Low Prestige

14. A Model of Competitive Advantage
Cost advantage Or
Differentiation Advantage
Value
Creation
Customers
Your Business

15. + Developing an Image/Brand Company Image = Logo Company Identity
Branding
Competitive advantage
Company Image
Name + =
Colours
Logo
Commitment to quality
Consistency of use

16. Marketing Mix/4Ps Market Marketing Mix Or Segment 1 Segment 2
Customer solution
Product
Price
Place
Promotion
Cost
Convenience
Communication

17. Augmented Product level
Product Levels
Guarantee
Core product level
Actual product level
Features
Market Or
Segment 1
Segment 2
Segment 3
Delivery
Packaging
Core Benefit
or function
Support
service
Size
Attributes
After sales
Augmented Product level

18. Relationship benefits
Three Dimensions of Customer Benefits
Market Or
Segment 1
Segment 2
Segment 3
Functional benefits
Process benefits
Product Or Service
Relationship benefits

19. Pricing Approaches Market Or Cost Based Pricing Cost plus pricing
Breakeven
Buyer Based Pricing
Perceived value
pricing
Market Or
Segment 1
Segment 2
Segment 3
Competition Based Pricing
Going rate pricing

20. Place/Distribution Market Product Service Direct to customer Or
Segment 1
Segment 2
Segment 3
Product Service
Intermediary
Agents Retailers Distributors Internet

21. Aim of Promotion Positioning/branding/image
Move customers through the decision making process (DMP)
Decision making process (DMP)
Unawareness
Awareness
Attitude
Action
Interest
Desire

22. Promotional Mix & Effectiveness in the DMP process
Personal selling
Public Relations
Sales promotions
Level of effectiveness
Advertising
Awareness Attitude Action
(Interest, desire)

23. Communicating the Message
Noise
Your Business
Customer
Message
Encoding
Decoding

24. Promotional Plan Checklist
Mission
Who you are targeting
Aims & objectives
Money
Budget
Costs
Image/branding/positioning
Costs
Logistics/timeframes
Integration with the marketing mix
Accessibility within market segments
Method
Image/branding/positioning
Information – product/business
Features & benefits
Message
Evaluation
Effective/feedback
Cost effective
Monitoring

25. Ansoff’s Product/Market Matrix
Existing Markets
New Markets
Market penetration
Market development
Existing
Products
Increase sales in existing market
Introduce current product into new markets
Product development
Diversification
Products
New
Develop existing or new products for existing markets
New products or related products for new markets

26. Evaluation and Control Process5
Evaluation and Control Process
Take corrective action NO 2 3 1 4
Determine
what to
measure
Establish
standards
for
comparison
Measure
performance
Is performance
>/ =
standards?
Continue with marketing activity
Yes

27. Marketing Measurement Methods
Customer satisfaction
Satisfaction surveys
Customer feed back forms
Formal/informal meetings with customers
Sales variances
Sales/cash flow analysis
Profit margin analysis
Marketing cost effectiveness
Marketing costs ratios e.g.
Marketing costs
Sales