MARKETING STRATEGY

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY|

 A REMINDER

These course materials were designed by Ashley Konson for

the personal use of students enrolled in Brand Management
W24. No further reproduction or distribution is permitted
w i t h o u t t h e w r i t t e n p e r m i s s i o n o f t h e a u t h o r.

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 2

 KNOWLEDGE FROM THIS COURSE
1. You are the VP of Marketing for a QSR brand in the Toronto market.

You are in a meeting with your marketing team when your new Research
Manager reports that your customer loyalty scores are below competitors with
higher market shares. Your most senior manager rolls his eyes and blurts out,
“I told you we should have launched the loyalty program I proposed during our
annual planning process!”

You smile wryly, but know you’re well equipped to respond to both managers
having completing Brand Management during your Master’s program at SSB in
2019.

Where do you start?

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 3

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 4
BRAND STRATEGY ANALYSIS FOR B L U N D S TO N E IN CANADA
ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY|
https://www.blundstone.ca/

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 6

 BRAND STRATEGY ANALYSIS FOR BLUNDSTONE IN CANADA
The abi l i t y to conduct a st rategi c market anal ys i s i s key to t he devel opment of
a compelling brand strategy and brand platform.

Thi s anal ys i s t herefore requi res a t horough di agnos i s of t he market

e n v i r o n m e n t i n w h i c h t h e b r a n d c o m p e t e s , a n d a n i n t e r r o g a t i o n o f t h e b r a n d ’s
abi l i t y to wi n i n t hi s market ( Mi cro and macro anal ys i s ) .

The brand manager then formalizes the brand strategy–the brand positioning
and the associations he/she aspires to create in customers’ minds. This
strategy enables the pan-company alignment of functional strategies in
support of brand and business objectives.

Yo u r t a s k : I n t h i s a s s i g n m e n t y o u a r e e x p e c t e d t o i n v e s t i g a t e a f e w e l e m e n t s
that are part of a much broader brand strategy analysis:

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 7

 BRAND STRATEGY ANALYSIS FOR BLUNDSTONE IN CANADA
1. F rom an anal ys i s of t he product-market i n whi ch BLUNDSTONE competes
(35%):
I. Expl ai n i t s st ruct ure, evol ut i on and 3-4 key qual i f yi ng di mens i ons ( 20%)
I I . D e t e r m i n e t h e b r a n d s i t c o m p e t e s a g a i n s t m o s t d i r e c t l y, m o r e i n d i r e c t l y
✅
and if any brands represent emerging competition (if any exist). Briefly
explain your choices. (15%) ✅
2. F rom an anal ys i s of cons umers of t he product-market i n whi ch BLUNDSTONE
competes (40%):
I . U s i n g R o m a n i u k ’s F r a m e w o r k f o r C E P G e n e r a t i o n d e t e r m i n e t h e C E P s f o r
c o n s u m e r s f o r t h e p r o d u c t - m a r k e t i n w h i c h B L U N D S T O N E c o m p e t e s ( 1 5 % )✅
II. Des cri be a needs-bas ed s egmentat i on model for t he product-market i n
w h i c h B L U N D S T O N E c o m p e t e s . Yo u r a n s w e r s h o u l d m i r r o r t h e L u x u r y H o t e l
example completed in the second class. (25%)
3 . F r o m a n a n a l y s i s o f h o w B L U N D S T O N E c o m p e t e s i✅ n t hi s product-market ( 25%) :
I. Infer the Leadership Philosophy for BLUNDSTONE (GBL Framework). It must
follow the format used for the Patagonia and Starbucks examples in class.
(25%)
❎ ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 8
 BRAND STRATEGY ANALYSIS FOR BLUNDSTONE IN CANADA
Yo u r k e y f i n d i n g s m u s t b e s u p p o r t e d t h r o u g h r e f e r e n c i n g s o u r c e s i n a o n e -
p a g e a p p e n d i x t o y o u r a s s i g n m e n t . Yo u r r e s e a r c h f o r t h i s a s s i g n m e n t s h o u l d
include a review of publicly available information on the Internet and other
sources, and your personal observations from visits to online and retail
l o c a t i o n s f o r t h e b r a n d a n d i t s c o m p e t i t o r s . I n k e e p i n g w i t h a c a d e m i c r i g o u r,
insights and paper contents must be your own.

M a x l e n g t h : 3 p a g e s + I p a g e a p p e n d i x f o r s o u r c e s . Yo u m a y u s e p a r a g r a p h s ,
t a b l e s , d i a g r a m s s a n d b u l l e t p o i n t s a s n e c e s s a r y. U s e 1 2 - p o i n t t y p e , s i n g l e
s p a c i n g . C o u r s e Va l u e : 2 5 %

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 THE MARKETING PROCESS
A N E W C O M PA N Y/ B R A N D

PRODUCT
PRICE
BRAND FOUNDATIONS PLACE
COMPETITION RESOURCES AND PEOPLE
CUSTOMERS CAPABILITIES PROMOTION
DIAGNOSIS STRATEGY EXECUTION
BUDGET RESOURCES AND
OPPORTUNITY OBJECTIVES AND CAPABILITIES PLAN
METRICS MARKETING
ACTIVITY PLAN

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 10

 THE MARKETING PROCESS
C O M PA N Y/ B R A N D I N M A R K E T

PRODUCT
PRICE
BRAND FOUNDATIONS PLACE
COMPETITION RESOURCES AND PEOPLE
CUSTOMERS CAPABILITIES PROMOTION
DIAGNOSIS STRATEGY EXECUTION
COMPANY/BRAND BUDGET RESOURCES AND
OBJECTIVES AND CAPABILITIES PLAN
PERFORMANCE
OTSW/ METRICS MARKETING
IMPERATIVES ACTIVITY PLAN

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 11

DIAGNOSIS OF MARKET ENVIRONMENT

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 A SUMMARY: WHAT TO ANALYZE?
MARKET ENVIRONMENT • What do they buy?
1. THE NATURE OF COMPETITION? • When do they buy?
• What is the market? How is it structured? • How do they buy?
• How has structure evolved over time? • Framework: Romaniuk’s Category Entry Point Generator
• What basic dimensions are key to compete in market? • Framework: Needs-Based Segmentation
• Direct, Indirect, Replacement and Emerging competition? 3. HOW THE BRAND COMPETES?
• Strategies and execution details of direct competition? • The brand’s strategy
• Frameworks: Market Structure Tree and Basic Dimensions • The brand’s execution plan
• Frameworks: Dawes Market Definition Framework and MACRO ENVIRONMENT
Duplication of Purchase
2. THE NATURE OF CUSTOMERS? • Political. Economic. Social (demographic, cultural).
Technological. Legal (regulatory). Environmental (P.E.S.T.L.E.)
• Who buys the category? Our brand? • Impact on the market? (competitors, our brand)
• Why do the buy the category? Our brand? OPPORTUNITIES. THREATS. STRENGTHS. WEAKNESSES
ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 13
1. THE NATURE OF COMPETITION

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KEY QUESTION IS “WHAT MARKET ARE WE IN?”

• D a w e s p r o p o s e s a s i m p l e f ra m e w o r k
to help with this dilemma that
l e a d s t o a c l e a r e r m a r ke t d e f i n i t i o n
• Tw o e xa m p l e s a r e p r o v i d e d
• What an organic orange juice
m ake r m ight answe r
• What a bank or credit union might
answer

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 15

 DEFINING MARKETS
• F o r e x a m p l e , h o w s h o u l d a m a ke r o f o r ga n i c o ra n g e
j u i c e s o l d t o r e t a i l s t o r e s d e f i n e i t s m a r ke t ?
• I s i t i n o r ga n i c o ra n g e j u i c e m a r ke t ?
• Levitt, ‘Marketing myopia’ (1960) challenged definitions
based on the product a firm makes rather than on needs
it is satisfying as the reason why product obsolescence
often led to firm failure
• Bug gy-whip makers overtaken by advent of motor vehicles
(transportation)
• The US railroads overtaken by advent of the motor
vehicles and airplanes (transportation)

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 16

 THE ORGANIC ORANGE JUICE MARKET

• S o, s h o u l d i t s m a r ke t b e d e f i n e d m o r e b r o a d l y a s
o ra n g e j u i c e a c l o s e s u b s t i t u t e ?
• H o w a b o u t t h e m a r ke t f o r ( a n y s o r t o f ) j u i c e ?
• W h a t a b o u t c o l d d r i n k s i n g e n e ra l , o r b e v e ra g e s ?
• How broadly is too broadly?
• Dawes proposes an approach

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 17


“FOR ORGANIC JUICE MAKER:
The firm offers organic fruit
juices to refresh thirst, its
customers are general
consumers, in city X, and it
sells to those consumers via
retail stores. It decides
relevant substitutes for its
product are orange juice and
fruit juice more broadly (not
s a y, c a r b o n a t e d j u i c e d r i n k s
or carbonated soft drinks in
g e n e r a l ) .”
DAWES MARKET DEFINITION FRAMEWORK
(organic orange juice/bank or credit union)
Need being satisfied State the customer need here, for
example ‘refreshment, thirst relief’ or
‘managing money’
Technology or product used to Identify the technology or way in
satisfy the need which the customer need is being
satisfied, for example ‘organic orange
juice’ or ‘retail branch network,
internet account management’
Buyer type Identify the broad buyer class, for
example ‘consumers’ or ‘businesses
Geography served The local geographic area served, such
as a city, region, country or worldwide
Channels Direct to buyers or via specified
intermediaries (retail stores, brokers)

Relevant substitutes for our
product
ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY|
Bottled orange juice, fruit juice. For a
bank, these could be: credit unions,
mortgage brokers, tech financiers
such as Afterpay
 SOME PRODUCTS COMPETE IN MULTIPLE MARKETS
• I t ’s i m p o r t a n t t o n o t e s o m e b r a n d s c o m p e t e i n m o r e t h a n o n e
m arket
• A s i m p l e Ve n n d i a g ra m i s a u s e f u l t o o l fo r c o m m u n i c a t i n g t h i s
insight

PREMIUM FAST CASUAL WATCHES FITNESS

COFFEE CAFE RESTAURANT TRACKING

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 19

 DEFINING COMPETITION

• Why do we examine and analyze competitors?

• First, to learn from them
• S econd, our growt h wi l l l i kel y be at t hei r expens e!
• G o al is to ide ntif y key co m petito rs, the n le arn w hat they do,to
compare our own capabilities, resources, offerings, service levels,
communications
• Also want to be aware of emerging competitors that may disrupt
and re inve nt o ur m arket

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 20

 DIRECT COMPETITION
A traditional view is they offer the same products and services in the
sam e m arket at sim ilar price s (G o al m o st narrow ly define d as a ve ry
affordable burger)

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 21

 INDIRECT COMPETITION
A traditional view is they offer substitutes products and services in the
sam e m arket to satisf y the sam e go al at a sim ilar o r diffe re nt price
p o i n t s ( G o a l i s a t a s t y, q u i c k , v e r y a f f o r d a b l e m e a l o r c o f f e e o n t h e g o )

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 22

 REPLACEMENT COMPETITION
A traditional view is they offer different products or services in a
diffe re nt m arket that m ight re place yo urs by o ffe ring ano the r so lutio n to
satisfy a similar goal (Goal broadly defined as entertainment)

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 23

 EMERGING COMPETITION
T he se m ay be new m arket e ntrants w ho are dire ct o r indire ct co m petito rs
o r co m petito rs that w ill disrupt yo ur m arket by re defining pro ducts and
services often through new technology

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 24

 NEW LEARNING
• Duplication of purchase provides empirical
evidence to accurately identify direct competitors
by showing how brands share customers
• Brands share customers based on penetration,
with small brands sharing more customers with
bigger brands and vice versa.
• Knowing pattern is normal allows us to spot
exceptions (partitions) that provide additional
insights and opportunities and may indicate a
distinct m arket. (+-10% ve rsus ave rage sharing fo r
brand size is a useful guide)

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 25

DOP CHALLENGES TRADITIONAL VIEWS IN QSR
DOP TABLE FOR QSR IN MEXICO (2014)

Romaniuk, Jenni; Sharp, Bryon. How Brands Grow: Part 2 Revised eBook (p. 83). Kindle Edition.
ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY|
Romaniuk, Jenni; Sharp, Bryon. How Brands Grow: Part 2 Revised eBook (p. 73). Kindle Edition.
DEMOGRAPHICS CHALLENGE TRADITIONAL VIEWS IN QSR
CUSTOMER PROFILES FOR QSR IN S KOREA

Romaniuk, Jenni; Sharp, Bryon. How Brands Grow: Part 2 Revised eBook (p. 83). Kindle Edition.
ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY|
 UNDERSTANDING MARKET STRUCTURE
• F ram ing m arket structure is a powe rful to o l fo r defining m arkets and
the nature of competition
• By n a rro w in g p ro d u c t- m a rke t s w e b rin g g re ate r c la rit y to t h e
substitutability of different offerings
• H e re is a sim plifie d m arket structure placing Luxury H o te ls in co ntex t

Lodging

Non- Residential
residential

Long Hotels Airbnb Timeshare

Stay
Value ModeratePremium
Luxury
ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 28
 FINALLY: DON’T FORGET QUALIFYING DIMENSIONS
• Qualifying dimensions are the basic dimensions on which competition
take s place in a m arket
• These basic dim ensions are desired by all custom ers of a product-
m arket and diffe re nt fro m dete rm ining dim e nsio ns, the additio nal
dimensions over the basic dimensions sought by different needs-based
se gm e nts in a m arket

LUXURY HOTELS VALUE HOTELS/MOTELS

Superlative amenities
Luxurious ambience Safety
Cleanliness
Highly personalized amenities privacy Basic amenities
ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 29
 DON’T BE UNIQUE, BE BET TER

(Barwise, and Meehan, 2004)

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 30

“ F ifty ye ars afte r Pete r D rucke r first pro po se d the " m arketing
co nce pt" -- the ide a that co m panie s can m ake the ir share ho lde rs rich
by meeting customers' needs -- there is still a large gap between
theory and practice. We lay much of the blame for this on companies'
obsession with uniqueness and differentiation.

According to conventional wisdom, businesses must offer something

unique in order to compete successfully; the rub is that this task is
becoming more and more difficult as products and services become
m o r e a n d m o r e s i m i l a r.

The only solutions, this line of thinking continues, are to differentiate

your offerings through branding and the communication of emotional
v a l u e s o r t o c o m p l e t e l y c h a n g e y o u r i n d u s t r y ' s r u l e s .”

(Barwise, and Meehan, 2004)

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 31

“While there is some truth in each of those assertions, we believe
they have been overstated and overgeneralized and have, as an
unfortunate result, distracted firms from listening to their
customers and consistently delivering on the basics.

Our analysis of a wide variety of companies leads us to conclude

that what customers want is not more differentiation but products
and services that are simply better at providing generic "category
benefits" -- those routine benefits customers expect to get when
they m ake a purchase .

I n s h o r t , t h e y w a n t t h i n g s t o w o r k a s a d v e r t i s e d .”

(Barwise, and Meehan, 2004)

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 32

3. THE NATURE OF CUSTOMERS

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 33

 FIVE QUESTIONS
1. Who buys the category? Our brand?
The distinguishing Everyone 19+ Surgeons Expectation it is May be some
characteristics of IT demographic
Men similar for direct
buyers? Women 12+ executives skews
60+ competitor
2. Why do the buy the category? Our brand?
Reasons buy Sliced bread to eat Avoid the trap of May simply be
category? Uses have Various ways to specificity? Organic more familiar
for it? consume bread? orange juice with it
3. What do they buy?
They bought Refers also to quantity, Products bought Insights for framing
a laptop ancillary products and around focal product advertising, “Product A
services? Sizes? may lead to extensions is ideal for people who
4. When do they buy or bundling have product B”
Purchase Seasonality? Occasions? Life stages?
triggers? Life events?

5. How do they buy? How much pre-purchase

Factors considered?
How does purchase Is purchase planned Information sources search, what form does it
take place? A S H L E Y or
K O Nunplanned?
consulted?
SO N | SESSION TWO | MARKETING STRATEGY| take?
A FRAMEWORK: CATEGORY ENTRY POINTS GENERATOR
ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY|
“ Category Entry Points are pathways to the brand in memory. The more CEPs, the more pathways
there are, and the more opportunities for the brand to be salient in buying or consumption situations
there are. CEPs are cognitive channels that build mental availability. .” – J e n n i R o m a n i u k

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 36

“Larger brands have fresher memory structures for more category
buyers across more CEPs – which is the big(mental) difference between
b i g a n d s m a l l b r a n d s .” – J e n n i R o m a n i u k

Co-presentation is crucial for linking brands to category entry points!

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 37

 ADVERTISING: POSITIONING, CEPs, DBAs 60:40 RULE

For con s u mers wh o en j oy f r u i t j u i c e for

b reak fast ( T) A S H L EY ’ S i s t h e b est b ran d of
f r u i t j u i c e ( FOR ) to star t yo u r d ay j u st r i ght
b ecau s e i t ’s organ i c an d f u l l of n at u re’s
good n es s ( B ) as ou r j u i c es come f rom f r u i t
grown i n h ar mony wi t h n at u re ( RT B )

ASHLEY’S®
ORGANIC
JUICES
FULL OF NATURE’S
GOODNESS™
ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY|
38
 ADVERTISING: POSITIONING, CEPs, DBAs 60:40 RULE

For con s u mers wh o en j oy f r u i t j u i c e af ter

p hys i cal ac t i vi t y ( T) A S H L EY ’ S i s t h e b est
b ran d of f r u i t j u i c e ( FOR ) to q u en c h you r
t h i rst an d b oost you r en ergy b ecau s e i t ’s
organ i c an d f u l l of n at u re’s good n es s ( B )
as o u r j u i c es co me f ro m f r u i t grown i n
h ar mony wi t h n at u re ( RTB )

ASHLEY’S®
ORGANIC
JUICES
FULL OF NATURE’S
GOODNESS™
ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY|
39
 ADVERTISING: POSITIONING, CEPs, DBAs 60:40 RULE

For con s u mers wh o en j oy f r u i t j u i c e

co c ktai l s ( T ) A S H L EY ’ S i s t h e b est b ran d
of f r u i t j u i c e ( FOR ) to ad d j u st t h e
p er fec t tou c h to you r even i n gs b ecau s e
i t ’s organ i c an d f u l l of n at u re’s good n es s
( B ) as o u r j u i c es co me f ro m f r u i t grown
i n h ar mony wi t h n at u re ( RTB)

ASHLEY’S®
ORGANIC
JUICES
FULL OF NATURE’S
GOODNESS™
ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY|
40
 SOME QUESTIONS TO ELICIT B2C CEPs
Why 1. Why did you make the purchase?
Motives and benefits 2. What benefits were desired in making the purchase?

When 1. When would you typically make this type of purchase?

Timing issues 2. When would you likely wear/consume this type of purchase?
Where 1. Where would you likely make this type of purchase?
Location 2. Where would you likely wear/consume this type of purchase
With/For Whom? 1. With whom might you make this purchase? Wear, consume this purchase?
Other people 2. For whom might you make this purchase?

With What? 1. With what might you make/consume/wear this purchase?

With what co-purchased/consumed
While 1. What kinds of activities might you be enjoying while consuming/wearing
Co-activities this purchase

How Feeling 1. How did you feel before you bought/used <insert product/service>? What
Emotions e.g., pride/sense of achievement words or phrases would you use to describe your emotions?
2. After buying/using <insert product/service> how do you feel?

(Category Entry Points In A B2B World, n.d.)

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 41

(Romaniuk & Sharp, 2015)

CEPs FOR FOR LUXURY HOTEL GUESTS IN TORONTO

WHY?
WHY?

WHEN?
WHEN?
WHERE?

WHERE?
WITH/FOR WHOM?

WITH WHAT?
WITH WHOM?
WHILE?

WITHFEELING?
HOW WHAT?

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 42

 CEPs FOR FOR LUXURY HOTEL GUESTS IN TORONTO
Business My status
Vacation Meal WHY? Meeting Romance
WHY?
Staycation Celebration Cocktail My tribe Finer side of life
Going to Toronto During week WHEN? When I want to make a
Overnight Weekend
WHEN? reservation
Downtown WHERE? Wherever I want to make a
Yorkville reservation
Myself Partner Colleagues Guests
Young family WHERE?
WITH/FOR WHOM?
My tribe Employees
Well-dressed Entertainment WITH WHAT?
Executive office services Babysitting
Attractions Amenities Kids’ activities
WITH WHOM?
Visiting Toronto Business meeting WHILE? Romancing
Fine dining
Upbeat WITHFEELING?
Sophisticated HOW WHAT? Pampered
Relaxed In my element

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 43

“Strategy starts with choosing the customers you
will serve” - Michael E. Porter

Discrete
Substantial Measurable Actionable

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 44

TYPES OF CUSTOMER SEGMENTATION

• Geographic segmentation
• Demographics segmentation
• Psychographics/lifestyle segmentation
• Behavioural segmentation
• Needs/benefits sought segmentation

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 45 45

(Romaniuk & Sharp, 2015)

A FRAMEWORK: NEEDS-BASED SEGMENTATION
ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY|
 SEGMENTING THE PRODUCT-MARKET FOR LUXURY HOTEL
GUESTS IN TORONTO
1. Brainstorm basic benefits/qualifying dimensions that must be offered
to eve ryo ne in pro duct-m arket
Luxury ambiance Superlative amenities
Highly personalized service
2. B rainsto rm initial ho m o ge ne o us ne e ds-base d subm arkets (se gm e nts)
Entrepreneurs Senior Young family Romantic Celebrating Long-stay Resort
Executives vacationers couples groups guests seekers
3. Brainstorm determining dimensions based on optimal benefits
im po rtant to custo m e rs in e ach subm arket. T he se are de live re d by
m aking change s to the m arketing m ix Executive health
CEO level office Conference Meeting Private dining
services rooms areas club, etc.
facilities
4. C he ck if any o f initial ho m o ge no us subm arkets (se gm e nts) are sim ilar
in terms of the determining dimensions to meet their needs
Entrepreneurs Senior Executives
If so, combine and rename the segment
Business Titans
5. B riefly de scribe e ach se g m e nt using custo m e r-re late d characte ristics:
Geographic, Demographics, psychographics etc. as appropriate
Business leaders visiting Toronto during the week who want to be pampered with “very important
A S H L E Y K O N S O N | S E S S I O N T W O | M A R K E T I N G S T R A T E G Y | 47
person” tailored service and luxury amenities. Travel the world. Often returning guests
 SEGMENTING THE PRODUCT-MARKET FOR LUXURY HOTEL GUESTS IN TORONTO

NICKNAME OF CUSTOMER NEED DIMENSIONS SOUGHT CUSTOMER-RELATED CHARACTERISTICS

SEGMENT (QUALIFYING/DETERMINING)
XXX

XXX

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 48

 SEGMENTING THE PRODUCT-MARKET FOR LUXURY HOTEL GUESTS IN TORONTO
NICKNAME OF CUSTOMER NEED DIMENSIONS SOUUGHT
SEGMENT (QUALIFYING/DETERMINING)
Luxury ambiance, highly personalized service, superlative
Business titans amenities. Private dining areas, CEO level office services,
meeting rooms, conference facilities, executive health club,
etc.
Luxury ambiance, highly personalized service, superlative
Young family vacationers amenities. Family-friendly ambience amenities and services
(staffed kids-friendly play areas, swimming pool facilities and
evening activities), kid-friendly menu options, childcare, etc.
Luxury ambiance, highly personalized service, superlative
Romantic couples amenities. Couple-friendly amenities and services (romantic
suites, intimate fine dining and bar facilities, health club and
spa), easy access to local entertainment
Luxury ambiance, highly personalized service, superlative
Celebrating groups dining amenities. Magnificent one-of-a-kind celebratory
events and specific event services (weddings, bar mitzvah’s,
corporate milestones). Event rooms, areas for gathering and
socializing etc.
Discrete Measurable
Substantial Actionable
ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY|
CUSTOMER-RELATED CHARACTERISTICS
Business leaders visiting Toronto during the week who
want to be pampered with “very important person”
tailored service and luxury amenities. Travel the
world. Often returning guests
Affluent couples or single parents with young children
who want to be pampered with “a luxury family-
friendly experience.” Looking forward to some
downtime from hectic lifestyles
Affluent couples, local residents or from the GTA (1-2
hours driving) who want to be pampered with “a
luxury tailored couple-friendly experience. “ Primarily
on weekends. Not defined by age but Generation X is
the bullseye
Multi-generational local residents and visitors to
Toronto who are attending celebratory corporate or
personal events. Guests for events only, overnight, or
for several days
49
49
2. HOW DOES THE BRAND COMPETE

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FOUR QUESTIONS ASSESSING STRATEGY AND EXECUTION
1. Brand Foundations?
External Foundations: Brand image, Brand positioning, brand naming policy
Internal Foundations: Leadership philosophy, Brand Mantra
2. Resources and Capabilities? Previous Performance?
Resources: Knowledgeable staff, systems, information resources, production technology.
Capabilities: What can be done with resources. A high-level capability to develop new products;
deliver personalized service, conducting training seminars to clients
Historical performance trends.
3. Objectives and Metrics?
End-state objectives
Market-based objectives
Precursor to sales objectives Key Issues?
Activity objectives
Assumptions
4. Execution (4 or 5Ps)
Product strategy? Pricing strategy? Place strategy? Promotion strategy? People strategy?
Performance versus
A S H Lresources
E Y K O N S O Nand
| S Ecapabilities
S S I O N T W O | plan? Performance
MARKETING STRATEGY| versus marketing activities plan?
DIAGNOSIS OF MACRO ENVIRONMEMT

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 P.E.S.T.L.E ANALYSIS

• What macro trends are impacting growth for the category

a n d t h e b r a n d ? Tr e n d s ? I m p a c t ?
• PESTLE
o Political
o Economic
o Socio/Cultural/Demographic
o Te c h n o l o g i c a l
o Legal/regulatory
o Environmental

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 53

 LET ’S TALK STRATEGY

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 54

 CONCEIVING STRATEGY FOR FIRST TIME OR ADJUSTING IT?

1. Brand Foundations?
External Foundations: Brand positioning, simplified brand memory network, brand naming policy
Internal Foundations: Leadership philosophy, Brand Mantra
2. Resources and Capabilities? Previous Performance?
Resources: Knowledgeable staff, systems, information resources, production technology.
Capabilities: What can be done with resources. A high-level capability to develop new products;
deliver personalized service, conducting training seminars to clients
Historical performance trends.
3. Objectives and Metrics?
End-state objectives
Market-based objectives
Precursor to sales objectives
Activity objectives
Assumptions

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 55

 LET ’S TALK EXECUTION PLAN

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ARE YOU PLANNING EXECUTION FOR FIRST TIME OR ADJUSTING IT?

1. Execution Plan (Changes as necessary)?

Product strategy? Pricing strategy? Place strategy? Promotion strategy? People strategy?
Resources and capabilities plan? Marketing activities plan?

ASH LEY KO N SO N | SESSION TWO | MARKETING STRATEGY| 57

 IT’S A WRAP!

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 BIBLIOGRAPHY
Barwise, P., & Meehan, S. (2004). Don’t Be Unique, Be Better. MIT Sloan Management Review, 45(4), 23–26.
Perrault, W. D., Cannon, J.P., McCarthy J.E. (2011). Focusing Marketing Strategy with Segmentation and Positioning. In Basic Marketing: A
Marketing Strategy Planning Approach (18th ed.). (pp. 86-115). New York, NY: McGraw-Hill . (Perrault, Cannon and McCarthy, 2011, p.
47) (Perrault, Cannon and McCarthy, 2011, pp. 86-115)
Tanusondjaja, A., Graham, C., Dunn, S., Nenycz-Thiel, M., & McColl, B. (2021). A rising tide lifts all boats: The role of share and category
changes in managing organic sales growth. Journal of Strategic Marketing, 0(0), 1–18. https://doi.org/10.1080/0965254X.2020.1817971
Romaniuk, J. and Sharp, B. (2021.) How Brands Grow: Part 2: Emerging Markets, Services, Durables, New and Luxury Brand. Revised
Edition. Oxford University Press. ISBN 9780190330026
Dawes, J. (2022). Marketing planning & strategy a practical introduction (1st edition). Sage Publications.

EXCELLENT SOURCES:
https://www.marketingweek.com/mark-ritson-brand-strategy-marketing/?fbclid=IwAR27GAjQ-cctJexnuPsWDvJr-
zoYifVJy2divTpevT2KWthQ2lWdifNppJQ

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