1.Marketing Strategy and the Marketing Mix
Strategic plan defines the company’s overall Mission and objectives. Consumers are in the centre. The goal is to create Value for customers and build profitable customer relationships. Next comes Marketing Strategy, which is the logic by which the company creates customer Value and profitable customer relationships. The company decides which Customers it will serve and how.
1.1.Customer-Driven Marketing Strategy
The marketer must determine which segments Offer the best opportunities. Consumers can be grouped in various ways based on Geography, demographic, psychographic, and behavioural factors. The process of Dividing a market into distinct groups of buyers is called market segmentation. A market segment consists of consumers who respond in a similar way to a given Set of marketing efforts.
Involves evaluating each market segment’s Attractiveness and selecting one or more segments to enter. A company should Target segments in which it can profitably generate the greatest customer value And sustain it over time. A company with limited resources might decide to Serve only one or a few special segments or market niches (segments that major Competitors ignore). Most companies enter a new market by serving a single segment, If this proves successful, they add more segments.
1.1.3.Market Differentiation And Positioning
Offering for each targeted segment and what Positions it wants to occupy in those segments. A product’s position is the place it occupies relative to competitors’ products in customers’ minds. If a Product is perceived to be exactly like others on the market, consumer would Have no reason to buy it. Positioning is arranging for a product to occupy a Clear, distinctive, and desirable place relative to competing products in the Minds of target customers. Effective positioning begins with differentiation, Differentiating the marketing offering to create superior customer value.
1.2.Developing Integrated Marketing Mix
The marketing mix is the set of tactical Marketing tools that the firm blends to produce the response it wants in the Target market.
·Product: goods and services combination that the Company offers to the target market (Ex.: Ford sells escapes, engines, …).
·Price: amount of money customers must pay to obtain The product. It can goes up and down, those actions adjust prices for the Current competitive and economic situations and bring them into line with the Buyer’ perception of the product’s value.
·Place: includes company activities that make the Product available to target consumers. (Ex.: Ford partners with a large numbers Of dealers that shells the company’s different models. The dealer keep an Inventory of Ford cars, demonstrate them to potential buyers, negotiate prices, Close sales, and service the cars after sales.).
·Promotion: refers to activities that Communicate the merits of the products and persuade target to buy it. (Ex.: Ford spends each year 1900million $ in advertising).