Marketing Strategy Objectives Positioning
Components of Strategy Statement of objectives Establish general direction of strategy Selection of strategic alternative(s) Selection of customer targets Choice of competitor targets Positioning Statement of core strategy Description of supporting marketing mix Implement strategy Description of supporting functional programs
Marketing Goals • Desired general accomplishments stated in vague terms. • Indicate the direction the firm is attempting to move and the set of priorities it will use in evaluating alternatives and making decisions.
Should be attainable and realistic. • Should be internally consistent. • Should be comprehensive and help to clarify the roles of all parties in the organization. • Should involve some degree of uncertainty.
Examples of Goals • To have the largest, best-trained sales force in the industry. • Having the best recognized and most effective advertising campaign in the industry.
Marketing Objectives • Provide specific and quantitative benchmarks that can be used to gauge progress toward the achievement of the marketing goals for which they are developed. • Should be attainable with a reasonable degree of effort.
May be either continuous or discontinuous, depending on the degree to which they depart from present objectives. • Continuous: current objectives are similar to those in previous planning period. • Discontinuous: establish new objective or significantly elevate the level of performance on a given outcome factor
Should specify the time frame for their completion. • Usually related to sales revenues, market share, profitability, or cash flow
Examples of Objectives • The marketing department will be responsible for having 40% of customers listing this financial institution as their primary financial institution within one year. • The sales department will increase sales 18% during the next 2 years.
Strategic Alternatives: Growth • Market development strategies • Attract non-users • Enter new markets
Market penetration strategies • Increase purchase rate of existing customers • Attract competitors’ customers
Core value proposition Augmented product Generic product Expected product Potential product
Exciting needs Primary needs Articulated needs