I wanted to utilize this journal post to summarize some key points from the Harvard Business School “Note on Marketing Strategy” I believe some of these points will serve as the basis for decision making for the marketing simulation that the class is commencing on week three.
I. Peter Drucker once wrote that any business enterprise has only two basic functions
a. Marketing
b. Innovation
II. Marketing
a. The process by which a firm creates value for its chosen customers
i. Value is created by meeting customer needs
ii. A firms needs to define itself not by the product it sells, but by the customer benefit provided
III. Marketing strategy involves two major activities
a. Selecting a target market
b. Specifying a plan
IV. Five major areas of analysis that underlie marketing decision making
a. Customer needs – Where strategy development begins
b. Company skills
c. Competition
d. Collaborators
e. Context
V. Markets can be segmented in the following ways
a. Demographics (e.g., income, gender, occupation)
b. Geographic (e.g., nation, region)
c. Lifestyle (e.g., hedonistic v. value oriented)
VI. The customer dictates “the rules of the game”
a. Compare your strengths and weaknesses relative to your competition
b. Align the segment goals with your firm’s goals
c. Know those with whom you can collaborate to market successfully
d. The likely financial returns
VII. Target selection and Positioning summarized
a. “The advantage of solving the positioning problem is that it enables the company to solve the marketing mix problem”
b. Marketing Mix
i. Merchandising – Product Planning
ii. Pricing
iii. Branding
iv. Channels of distribution
v. Personal selling
vi. Advertising
vii. Promotions
viii. Packaging
ix. Display
x. Service
xi. Physical Handling
xii. Fact-finding and analysis (or Market Research)
VIII. The Four “Ps” that set the marketing mix
a. Product
i. Product definition
ii. Product line planning decisions
iii. Individual item decision
iv. The new product development process
1. Opportunity
2. Design
3. Testing
4. Product integration
5. Life cycle management
b. Place: Marketing Channels
i. “Generic” channel functions
1. Product information
2. Product customization
3. Product quality assurance
4. Lot size
5. Product assortment
6. Availability
7. After-sale service
8. Logistics
ii. Channel design
1. Channel length
a. Account concentration
b. Degree of control and performance of direct customer contact.
iii. Channel management
c. Promotion: Marketing communications
i. Market – To whom?
ii. Mission – What is the objective?
iii. Message – What are the specific points
iv. Media – Where will the message be conveyed
v. Money – How much will be spent?
vi. Advertising
1. Advertising is effective
a. Creating awareness of a new product
2. features of the product
a. Suggestions
b. Distinguishing the product from its competitors
c. Directing buyers to the point-ot-purchase
i. Creating or enhancing a brand image
3. Advertising is limited in its ability to close the sale and make a transaction happen
4. Three major types of sales promotions
a. Consumer promotions (manufacturer to end consumer)
b. Trade promotions (trade to the end consumer)
c. Retail promotions (trade to end consumer)
d. Pricing
i. Perceived value represents the maximum price which a customer is willing to pay – this should be the primary guide to pricing the product.
ii. Pricing basis and objective
iii. Price customization
iv. Price leadership
e. Analysis underlying marketing strategy formulation
i. Recall the “Five Cs”
ii. Identify five major roles in buying situations
Resource:
Dolan, Robert J. “Note on Marketing Strategy” Harvard Business School. November 1, 2000.
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