Introduction to marketing strategy

1
Introduction to marketing strategy

• Dr. Mark Scott Rosenbaum
• Northern Illinois University
• Lecture 2

2
The Management Job in Marketing
MarketingPlanning
Control Marketing Plan(s) and Program
Implement Marketing Plan(s) and Program
3
Nano Clothing
Nanotechnology can improve fabrics, making them
harder wearing and more resistant to dirt, water,
oils or other chemicals. Many of these
developments are based on what happens in nature.
For example the lotus leaf is covered in
nanoscale waxy bumps which causes water to bead
and be shed easily (pictured left). Fruits such
as peaches are covered in tiny hairs which
achieve the same effect. By incorporating such
features in manufactured materials they too can
be made water and stain repellent
Will customers see value in this product? Will
customers see additional benefits that
outweigh the costs? If not, what are the risks of
manufacturing this product?
4
What is a Marketing Strategy?
5
Selecting a Marketing-Oriented Strategy Is Target
Marketing
A mass-marketing strategy sees consumers as
similar, with the same needs and wants.
A target market strategy sees consumers as
different , with varying needs and wants.
6
Developing Marketing Mixes for Target Markets
7
Products New Drugs

• Nanotherapeutics now manufacture asthma drugs and
  painkillers as nanoscale powders which are taken
  using an inhaler and are more quickly absorbed
  into the body than traditional methods. VivaGel
  is a an anti-HIV drug based on nanoscale
  particles called dendrimers. The drug in action
  is pictured left, the dendrimer (in blue) coats
  cells and prevents the HIV virus entering.
• Is there a demand for this product?
• Where will the product be sold?
• Price issues?
• How will the drug be promoted?

8
The Place Element of the Marketing Mix
Examples of Channels of Distribution
Product
Product
Product
Product

Wholesaler
Wholesaler
Wholesaler
Retailer
Retailer
Retailer
Consumer
9
The Promotion Element of the Marketing Mix
Advertising Paid Non-personal
Personal Selling (direct)
Think of the HIV/AIDS drug, who is the customer?
Telling and Selling the Customer
Facebook, Twitter, Blogs
SalesPromotion (activities)
Publicity (unpaid)
10
The Price Element of the Marketing Mix
Pricing Objectives
Price Flexibility
Price of Other Products In the Line
Price Changes Over the Life Cycle
Competition and Substitutes
PriceSetting
Discounts and Credit
Price Sensitivity
Geographic Pricing Terms
Cost and Demand
Legal Environment
11
All Four Ps Contribute to the Whole
Understanding the Target Market Leads to Good
Strategies!
12
Putting It All Together
Total Company Effort to Satisfy Customers
Total Company Effort to Satisfy Customers
Offer Superior Customer Value
Build Profitable Customer Relationships
Attract Customers
Increase Sales to Customers
Satisfy Customers
Retain Customers
13
(No Transcript)
14
Exercise

• NanoDynamics - a nanoscale engineering and
  materials company - has recently produced golf
  balls with nanoscale coating to reduce 'spring'
  and allow a truer contact with the club,
  producing shots that do not go further, but do
  travel straighter.
• In small groups of 3-4 students, consider that
  you are marketing team at NanoDyanmics
• You see three target customers. 1)
  Higher-income, older golfers who purchase
  equipment at country club golf stores. 2)
  Golfers who purchase products at sporting good
  stores. 3) Price sensitive golfers who shop for
  products at Amazon.com.

15
Marketing Mix Exercise

• Develop a marketing mix for each target customer.
  
• Product Will you sell many items or a few items
  ?
• Place Where will the products be sold? Will
  your firm have control over where its products
  are sold?
• Price Will your customer be price sensitive?
  More price sensitive? Less price sensitive? How
  does the channel length/complexity influence the
  price? Please explain.
• Promotion How will the target customer learn
  about the golf balls? How can the firm reach the
  target customer? Think about the various
  promotional techniques.
• We will discuss the answers in class.