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MARKETING STRATEGY

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A marketing strategy identifies (1) a firm’s target market(s), (2) a related marketing mix—
their four Ps—and (3) the bases upon which the firm plans to build a sustainable
competitive advantage. A sustainable competitive advantage is an advantage over the
competition that is not easily copied, and thus can be maintained over a long period of time.
Starbucks and Dunkin’ Donuts are appealing to different target markets, and they are
implementing their marketing mixes—their four Ps—in very different ways. In essence, they
have very different marketing strategies. Although both stores’ customers seek a good cup
of coffee and a pastry, Starbucks is also attempting to reach the customer who wants a
coffee-drinking experience that includes a nice warm, social atmosphere and personal
“baristas” to make their esoteric drinks. And people are willing to pay relatively high prices
for all this. Dunkin’ Donuts’ customers, on the other hand, aren’t particularly interested in
the experience. They want a good tasting cup of coffee at a fair price, and they want to get
in and out of the store quickly.

Building a Sustainable Competitive Advantage:
There are stores and restaurants that sell coffee and pastries in every neighbourhood in
which there is a Starbucks or a Dunkin’ Donuts, and many of these have great coffee and
pastries. If Starbucks or Dunkin’ Donuts lowered their prices, their competition in the area
would match the reduction. If they introduced a peppermint swirl cappuccino for the
holiday season, other stores in the area could do the same. Thus, just because a firm
implements an element of the marketing mix better than competition, it doesn’t necessarily
mean it is sustainable.
Establishing a competitive advantage means that the firm, in effect, builds a wall around its
position in the market. When the wall is high, it will be hard for competitors outside the wall
to enter the market and compete for the firm’s target customers.
Over time, all advantages will be eroded by competitive forces, but by building high, thick
walls, firms can sustain their advantage, minimize competitive pressure, and boost profits
for a longer time. Thus, establishing a sustainable competitive advantage is the key to
positive long-term financial performance.
There are four macro, or overarching, strategies that focus on aspects of the marketing mix
to create and deliver value and to develop sustainable competitive advantages.

■ Customer excellence: Focuses on retaining loyal customers and excellent customer service. ■ Product excellence: Having products with high perceived value and effective branding and positioning. . whereas discussion is required to check what are the benefits of using social media networks and other applications for marketing Starbucks products. ■ Operational excellence: Achieved through efficient operations and excellent supply chain and human resource management. therefore we are providing details about their approach for recognising themselves as globally corporate social responsible firm though their corporate website. ■ Locational excellence: Having a good physical location and Internet presence. Figure 1: Marketing strategy of Starbucks Based on these information. the main consideration for this project is to assess the electronic marketing approach of Starbucks.

and positioning (STP). Although most people do not have a written plan that outlines what they are planning to accomplish in the next year. marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation. A written marketing plan also provides a reference point for evaluating whether or not the firm met its objectives. then go directly to conduct a situation audit without redefining its overall mission. they evaluate the situation by assessing how various players. such as investors and potential investors. With the establishing of electronic marketplace. the control phase entails evaluating the performance of the marketing strategy using marketing metrics and taking any necessary corrective actions. affect the firm’s potential for success. and projected or pro-forma income (and other financial) statements. marketing executives. The three major phases of the marketing plan are planning. For the second step. also want to know what the firm plans to do. both in and outside the organization. implementation. and how they expect to do it. For instance. firms do need such a document. Other stakeholders. It is not always necessary to go through the entire process for every evaluation. A marketing plan entails five steps.THE MARKETING PLAN: Effective marketing doesn’t just happen. E-Marketing Tools for attracting customers: One of the tools of e-Marketing is Emails or e-Letters. They then are responsible for implementing the marketing mix using the four Ps. Finally. the competition. snail mails have been replaced with Emails. action programs. A marketing plan is a written document composed of an analysis of the current marketing situation. It is important that everyone involved in implementing the plan knows what the overall objectives for the firm are and how they are going to be met. Sellers can now reach . define the mission and/or vision of the business. marketing objectives and strategy specified in terms of the four Ps. targeting. The traditional style composing a letter and posting incurred higher cost and was time consuming. opportunities and threats for the firm. Firms like Starbucks and Dunkin’ Donuts carefully plan their marketing strategies to react to changes in the environment. in conjunction with other top managers. a firm could evaluate its performance. and control. In the implementation phase. and their customers by creating a marketing plan. the planning phase.

its customers receive it immediately. This definitely ensures big savings especially for the business sectors like banks. In addition. E-mail is a great format for sending out a weekly or monthly tip. having a solid list of its customers' e-mail addresses allows the bank to make the move with minimal interruption to its customer base. It is something that will position the bank in the mind of its customer as an expert. and postage costs. E-mail marketing is especially great if a bank has time sensitive offers. which deal with many customers. Salient features of E-mail marketing E-mail marketing is the most effective and economical E-marketing tool to convey the message on a mass scale. a festive offer.out to the masses and/or to their target audience in the most economical but effective manner through e-Letters or e-Newsletters. when one sends an email. This type of regular communication reinforces the bank’s position as an expert in financial dealings and does wonders at keeping its customers loyal. bonds etc. article or other updates to the customers. One does not have all the hassle of writing a long letter. It supersedes the traditional method of communication to market a product or service. materials. Inform dynamically: It helps the users to know about the new changes and Developments adapted by the bank for ensuring a better service to the customers. posting etc. too. if a bank ever plans to move. “The ease with which buyers can spread the word about a firm has spurred a new type of buyer activism” (Varadarajan and Yadav. Cheap: Almost any message one decides to send to their customers via snail mail can also be sent via e-mail. 2002). like a special rate of interest for deposits or loans. It helps in giving the customers valuable information that makes them want to read the short newsletter. Some of the salient features of E-mail marketing are: Fast: Unlike the letters posted through postal mail. one avoids the printing. Easy: Sending an e-mail is easier than sending regular mail. .

There is no need to juggle the copy to fit into the available space.Advantages of e-newsletters Some of the prominent advantages of using e-newsletters for marketing are mentioned below: Branding: A bank can gain brand recognition by regularly keeping its name in front of the customers or clients. In contrast to this. On the other hand. Newsletters allow a company to communicate throughout the year and e-newsletters with comment" capability let readers know that they can maintain a dialogue with the company. Two-way communication: The best e-newsletters allow readers to request services. Timesaving: It takes quite a long time to put together and distribute a print newsletter. as well as begin new associations with prospects and referral sources. Typically. By allowing readers to interact through two-way communication. with an e-newsletter. Short lead-time: Print newsletters can require several weeks to be put together. an enewsletter can be prepared. there's not much news in them. An e-newsletter with interesting articles can provide that level of contact. the production and distribution time is slashed because many steps are eliminated. and the companies/ banks don't have to deal with printers or mail delays. banks have better chances of building relationships with its clients. formatted and updated right up to the moment it is sent. By the time they reach their destination. Proactive marketing: . allowing for the inclusion of the latest developments. It is nurtured by developing and maintaining relationships so that customers or clients know you care. print newsletters are published quarterly while an e-newsletter to goes out as frequently as every week. Year-round contact: Loyalty isn't built strictly through billable transactions. which reinforces the brand image. printed and mailed. provide feedback and ask questions.

the Web page being viewed. Internet based e-Marketing Strategy tools: Following are the key internet based e-marketing tools that can be used for advertising products over internet such as: Corporate Organisation Website: This tool can be used by organisation for advertising all their products and facilities available in their stores to attract customers. Product development: A bank can gauge readers' interest in certain products and services before deciding to launch them. but . You will see a popupright away but will probably only become aware of a pop-under after you close your browser window. Interstitial Banners: Interstitial banners are shown between pages on a Web site. These were very prominent in the early days of online advertising. or under. a bank can focus its energy approaching certain readers about a service if it finds they have consistently opened articles on the subject. smaller window. But how does the bank know which readers are interested? For example. you are shown this advertisement before the next page is shown. As you click from one page to another. in order to attract more customers. you are able to close the advertisement. They open in a new. Social Media Networks: These are the most popular tool used nowadays for advertising and publicity of different products. There are different types of social media networks such as Facebook. These websites can provide members and free voucher services to loyal customers. Online tracking that reveals what article or topics are read is a basic market research.Between transactions. That can turn a cold call into a warm call. these are advertisements that pop up. a bank/company may want to offer additional products and services. Sometimes. Twitter and Linkldn. Pop-Ups and Pop-Unders: As the name suggests.

it is not possible to click through this advertisement. Map Advertisement: A map advertisement is advertising placed within the online mapping solutions available. 2011). such as Google Maps. new or old to ignore the trends of communicating through social networking would be a large mistake. Wallpaper Advertisement: A wallpaper advertisement changes the background of the Web page being viewed. Ignoring the trend could possibly lose businesses potential clients. One can find a social networking website to suit almost any interest imaginable. With this in mind a business can join a social networking website that is fine tuned to their particular business to generate interest by thousands who have a passion for the products or services that said business provides. sales or future knowledgeable employees that may help said company to excel. their background. auto enthusiasts. Using social contacts to network. interests or affiliates. Chastaine. Currently the most popular social networking websites are Facebook and Twitter. A business. (Carfi. This can be problematic as sometimes a Web site will legitimately use a pop-up to display information to the user. Profiles consist of an individual or businesses personal information and/or experiences such as. music lovers. It is estimated today that Facebook and Twitter have a combined population of people and . Today’s generation and upcoming generations are both familiar with and comfortable using social networking websites and are often their first choice in communication today. and explicitly by actual members of the social network themselves. Using internet's network groups (such as Facebook and Twitter) to network and communicate between consumers and businesses Social networks are compiled from profiles and/or connections.audience annoyance means that there are now “pop-up blockers” built into most good Web browsers. and many more. education. Connections consist of either implicit or explicitly obtained avenues. Usually. Implicitly an individual or business can gain connections by actions such as emails or telephone conversations. there are websites devoted strictly for chefs. e-Marketing through social media networks: Social Networking is the interaction between a group of people who share a common interest. but there are thousands of social networking websites out there.

Another argument in favor of social networking is the vast changes of how the public wants their information presented to them today. Chastaine. Internally social networking can be used as a tool to observe how information within an organization is being exchanged. what you put in is usually a reflection of what you will gain but this is not always the case due to the lack of statistical information provided today. 2008). Generally a person will chose to do business with a company that is a member of the same social network as them because the form of communication that they feel most comfortable using is what they will naturally gravitate to first. if a company does not have the appropriate technological knowledge to create the site. and after all isn’t the name of the game to be first? Businesses have been forced to change their marketing strategies from “selling” to “engaging” (Gordhamer. Gaining knowledge into how ideas are surfacing may help a company see how. so a company is going to want to employ someone who has the experience as well as the patience to deal with the necessary trials that undoubtedly will occur (Bonfield. Like many forms of marketing within a business. people generally want to feel engaged by a company instead of marketed to. it can be a daunting task. Although social networking websites like Facebok and Twitter are generallyset up to be user friendly. keeping these figures in mind the imagined potential business interest seems limitless. they can also be a tool within an organization. Social networking sites aren’t always reliable.businesses of over 200 million. Social Networking websites are not only a great instrument for gaining the public interest in a company. There are downfalls to social networking that should be considered before a company makes the decision to invest the time and money from their marketing budget. 2001). 2009). One factor to keep in mind is that within a social networking site the individual or business that you associate with could potentially associate with someone you do not want to have direct ties with. who or what is responsible for the changes within an organization (Carfi. Another element to consider when deciding if social networking is right for your business is the fact that in using a social networking website you do not have full control over the content that is generated from the website. Social networking takes time and patience and there is not enough data generated as to the level of response a business will receive from the work. Social networking . If a company lacks the knowledge to start a social networking website then they will most likely need to hire either a knowledgeable consultant or staff member to set up the website.

A final issue to consider when deciding if social networking is right for your business is the factor of unwanted criticism that can potentially get uploaded to the World Wide Web. these are the people or organizations that agree to follow your business and have the permissions to write comments on your “wall” which is showcased for anyone who uploads and views your page. potential clients can then in turn look at whom your business is associated with which can be good or potentially bad if the associated “friends” are controversial to your causes (Bonfield. 2008). keeping up with the change in times is a key to the marketing success of a business. but can be costly to set . a company is viewed as customer oriented and that they are willing to change to suit the needs of their clients. If a company allows an individual or business to be there friend. Of course it is understood that there is no way to respond to every comment that is delivered about your business but it will work in the best interest of your company if you show a concern for the disgruntled clients that undoubtedly will arise. Criticism from such websites are also a great tool for a company to use in making the necessary changes that will arise with the changing of your target audience. when someone had an issue with a company or organization it would take days if not weeks to tell everyone they knew of the issue.websites have tools that are called “friends” or “followers”. Another consideration is the fact that an individual or business is limited to how the information is presented on the particular social networking website. but today it only takes a matter of seconds to tell everyone you know of the bad experience (Gordhamer. In the past. 2009). but on the other hand there will be some that express their complaints and this criticism circles back to the subject of time management and having an experienced individual that is on hand to handle the comments as they arise. if you have a design plan or vision in mind a social networking website may not be the best option for your company. With the accessibility of the web today it is very easy for anyone with a computer to express his or her opinions with little to no allowance for editing. In answering and showing concern publicly to those who have expressed a bad experience. Many individuals and organizations will express their opinions in a good light. To wrap up the discussion of whether social networking is the right choice for a company it was discussed that social networking websites are a free tool to use. The issue of opinion based comments are a two way street. Most social networking sites do not allow the user to chose the design or orientation of the content.

up and maintain if you aren’t knowledgeable with the technology. A business also has to consider that the content within the site is not completely controlled by the said company. Regardless of the decision to use social networking. . the fact that today’s generation has adopted it. as a very useful tool to communicate with is unarguable. With the right tools and planning social networking can become an extremely valuable tool for a business today. which can be viewed as a good and or bad result.