&80/ The MBA for the Rest of Us: Marketing Strategy Process

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marketingprocess

Continued from last week's 1-minute article overview on the subject. [T-17] Let us start with 7. Marketing > The Marketing Strategy Process. Credit goes to Steven Silbiger; the process is adapted from the 2nd edition of his book.

  1. Analyze the Costumer: Need category, buying process/ AIDA, high- or low-involvement products, market segmentation.
    • Makable or marketable product?
    • Demography of the consumers.
    • Who’s buying, Who’s using?
    • What is the buying process?
    • Who are the Influencers?
    • How important is it to the consumer?
    • Who needs it and why?
    • What is the value to the end user?
    • Is it a planned or impulse buying?
    • What are the perceptions of our product?
    • Does it meet their needs?
    • Are we able to keep our customers for long term?
    • Are we able to attract the competitors’ customers?
    • Are we ourselves a cause for decreasing the market demand?
    • How is the consumer knowledge about our product?
  2. Analyze the Market: Market relevance, product life cycle, key competitive factors.
    • What is the market’s nature? - Size, growth, segments, geography, PLC.
    • Competitive Factors? - Quality, price, advertising, R&D, services.
    • What are the trends?
    • Is there any unsupplied demand in the market?
    • Is there any hidden demand in the market?
    • What is the supply & demand balance of the market?
    • Who are the competitors?
    • Who are the potential competitors?
  3. Analyze the Competition and Yourself: Entry barriers, market share, perceptual mapping.
    • What is the company good at, poor at?
    • What is the position in the market? Size, share, reputation, historical performances.
    • What are the resources? Trade relations, sales forces, cash, tech, patents, R&D.
    • Who is gaining or loosing share?
    • What do they do well?
    • Compare your resources to theirs.
    • What are the barriers to entry?
    • What are your objectives and strategy?
    • Any contingency plans?
    • Short term and long term plans and goals?
  4. Review the Distribution Channels: Channel intermediaries, margin/ markup and selling prize, channel power.
    • How can my product reach to the consumer?
    • How much do the players in each distribution channel benefit?
    • Who holds the power in each distribution channel available?
  5. Develop the Marketing Mix: Product Place Prize Promotion.
    • Who is the target?
    • Product: Fit whit other product? Differentiation, PLC, perception, packaging, features.
    • Place: How best to reach the segment, channel mathematics, draw channels.
    • Exclusive, selective, intensive distribution? Fit with products?
    • Who has the power?
    • How to motivate the channels?
    • Price: What strategy? Skim, penetrate.
    • Seek volume or profits?
    • Perceived value, cost-plus pricing?
    • How does price relate to the market, size, PLC, competition?
    • Promotion: What is the buying process? How is money targeted to buying process goals?
    • Push or pull strategy?
    • Media type, measure, message.
    • Dealer incentives.
    • Consumer promos.
  6. Evaluate the Economics: Costs, break even, payment period.
    • Break even in units.
    • Fixed Cost/(Selling - Variable Cost). Include fixed marketing and promo costs in fixed costs of the plan!
    • Relate break even to relevant market.
    • What is the payback period? Exclude sunk costs!
    • Are goals reasonable? Attainable?
  7. Revise and Extend: Tweak or discard your plans entirely.

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1 Classic Comment

Nice article.

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