Marketing Strategies

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services. A marketing strategy is composed of several interrelated components called the marketing mix: The Marketing mix consists of answers to a series of product and customer related questions.

The Marketing Mix

1.    Market selection

                        a.    Who are the customers or subset (segment) of customers you are targeting?

2.    Product planning

                        a.    What products are the company going to design or OEM for the selected customers?

                        b.     What are the product features uniquely targeting this market?

                        c.    How will the product be packaged?

3.    Pricing

                        a.    Pricing is a quantitative expression of the value of the product to the customer.

                        b.    Pricing should be designed like a feature consistent with the use of the product.

                        c.    What will you charge for and How much?

                        d.    How will the customer pay and when?

                        e.    See also the discussion of the Price/Features Matrix.

4.    Place

                        a.    Which channel, direct, wholesale or retail channels best moves and delivers the product                                and its benefits to the selected market?

5.    Promotion

                        a.    Positioning:    What is the message that states the purpose and benefits of the product in                                  the market and how it competes?

                        b.    Selling: Direct or indirect through others?

                        c.    Communications

                                        How will people be informed about your product, showing them how it can be                                  useful, and persuading them to buy it?

                                        What role should branding play?

                        d.    Support and Service

                                        How does the customer get help if needed to make the product work and                                         replacing or repairing it when it’s broken?

Segmentation-Marketing-Processing

In order to be an effective and efficient business, you should seek out your target customer market. There are three main issues to consider when determining your target market:

Market segmentation

Market segmentation involves grouping your various customers into segments that have common needs or will respond similarly to a marketing action. Each segment will respond to a different marketing mix strategy, with each offering alternate growth and profit opportunities.

Some different ways you can segment your market include the following;

• Demographics which focuses on the characteristics of the customer. For example age, gender, income bracket, education, job and cultural background.

• Psychographics which refers to the customer group's lifestyle. For example, their social class, lifestyle, personality, opinions, and attitudes.

• Behaviour which is based on customer behaviour. For example, online shoppers, shopping centre customers, brand preference and prior purchases.

• Geographical location such as continent, country, state, province, city or rural that the customer group resides.

Targeting

After segmenting the market based on the different groups and classes, you will need to choose your targets. No one strategy will suit all consumer groups, so being able to develop specific strategies for your target markets is very important.

There are three general strategies for selecting your target markets:

• Undifferentiated Targeting: This approach views the market as one group with no individual segments, therefore using a single marketing strategy. This strategy may be useful for a business or product with little competition where you may not need to tailor strategies for different preferences.

• Concentrated Targeting: This approach focuses on selecting a particular market niche on which marketing efforts are targeted. Your firm is focusing on a single segment so you can concentrate on understanding the needs and wants of that particular market intimately. Small firms often benefit from this strategy as focusing on one segment enables them to compete effectively against larger firms.

• Multi-Segment Targeting: This approach is used if you need to focus on two or more well defined market segments and want to develop different strategies for them. Multi segment targeting offers many benefits but can be costly as it involves greater input from management, increased market research and increased promotional strategies.

Prior to selecting a particular targeting strategy, you should perform a cost benefit analysis between all available strategies and determine which will suit your situation best.

Positioning

Positioning is developing a product and brand image in the minds of consumers. It can also include improving a customer's perception about the experience they will have if they choose to purchase your product or service.  The business can positively influence the perceptions of its chosen customer base through strategic promotional activities and by carefully defining your business' marketing mix.

Effective positioning involves a good understanding of competing products and the benefits that are sought by your target market. It also requires you to identify a differential advantage with which it will deliver the required benefits to the market effectively against the competition. Business should aim to define themselves in the eyes of their customers in regards to their competition.