Chapter 8. Marketing Strategies (part 2)

I. Definitions of Terms

A. Marketing Strategy: the selection of a course of action from among several alternatives.

B. Target Market

C. Marketing Mix

D. Positioning: the development of a service and marketing mix to occupy a specific place  

in the minds of customers.

E. Marketing Objective

II. Marketing Strategies

A. Alternative Marketing Strategies

1. Single-target-market strategy

2. Concentrated marketing strategy

3. Full-coverage marketing strategy

4. Undifferentiated marketing strategy


B. Alternative Strategies for Product Life Cycle Stages

1. Introduction stage:

a. Rapid-skimming strategy
b. Slow-skimming strategy
c. Rapid-penetration strategy
d. Slow-penetration strategy

2. Growth stage:

a. Improving service quality and adding new service features and service elements

b. Pursuing new target markets

c. Using new channels of distribution

d. Lowering prices to attract more price- sensitive customers

e. Shifting some advertising emphasis from building awareness to creating desire and action (purchase)

3. Maturity stage:

a. Market-modification strategy

b. Product-modification strategy

c. Marketing-mix-modification strategy

4. Decline Stage

 

C. Limitations of Product Life-Cycle Concept

1. A service may have more than one life cycle

2. The life cycle can be extended

D. Alternative Strategies by Industry Position

1. Market leaders:

a. Expanding the size of the total market:


b. Protecting market share
c. Expanding market share

2. Market challengers:

a. Frontal attack

b. Flank attack

c. Encirclement attack

d. Bypass attack

e. Guerrilla attack

3. Market followers

4. Market nichers

Ill. Relationship Marketing and Strategic Alliances

A. Relationship Marketing Definition
B. Preferred Suppliers or Vendors
C. Strategic Alliances


IV. Positioning

A. Reasons for Positioning

1. Perceptual processes of customers

2. Intensified competition

3. Volume of commercial messages

 

B. Essentials for Effective Positioning

1. Information on the needs of customers in target markets and the benefits they look for

2. A knowledge of the organization's strengths and weaknesses

3. A familiarity with competitors' strengths and weaknesses

4. Information on how customers perceive the organization relative to competitors


Using the Excellence Case: Club Med
An Excellence Case on positioning is presented on pages 2O~2O8 of Chapter 8. Based on the resort village chain of Club Med, it shows another example of how marketing research was effectively applied; in this case as the basis for repositioning a major hospitality and travel company. The history of the recent changes at Club Med could provide an excellent topic for class discussion, or you might assign it as an individual written exercise. The following discussion questions are provided:

a. what facto rs caused Club Med to change its marketing strategy?

b. How has Club Med's approach to market segmentation been altered?

c. In what ways has Club Med tried to change its image in the minds ofpotential travelers?

d. What can other hospitality and travel organizations learn from Club Med and its new marketing strategy?

C. The Five Ds of Positioning
1. Documenting 4. Designing
2. Deciding 5. Delivering
3. Differentiating
D. Six Positioning Approaches

1. Positioning on specific product features

2. Positioning on benefits, problem solution, or needs

3. Positioning for specific usage occasions

4. Positioning for user category

5. Positioning against another product

6. Positioning by product class dissociation


V. Marketing Objectives

A. Benefits of Marketing Objectives

1. Giving marketing managers a way to measure progress toward their goals and make timely adjustments to their programs

2. Providing a yardstick for management to measure the success of marketing programs

3. Representing a benchmark for judging the potential return on alternative marketing-mix activities

4. Providing a frame of reference for all those involved directly in marketing

5. Giving broad directions for the scope and types of marketing activities required in a specific period


B. Requirements of Marketing Objectives

1. Target-market specific 3. Quantitative