UNIT VIII

 
DEVELOPING MARKETING STRATEGIES
• A marketing strategy refers to a business's
overall game plan for reaching prospective
consumers and turning them into buyers of
their products or services.]
• It is a long-term guide for directing specific
marketing tactics
• Helps in product positioning and product
differentiation
Difference between Marketing strategy and
Marketing Plan
 Importance of Marketing Strategy

• Marketing strategy provides an organization competitive edge over it’s competitors.

• Strategy helps in developing goods and services with best profit making potential.
• Marketing strategy helps in creating an organizational plan to cater to the customer
needs.
• It helps in fixing the right price for organization’s goods and services based on
information collected by market research.
• Strategy ensures effective departmental co-ordination.
• It helps an organization to make optimum utilization of its resources so as to provide
a sales message to it’s target market.
• A marketing strategy helps to fix the advertising budget in advance, and it also
develops a method which determines the scope of the plan, i.e., it determines the
revenue generated by the advertising plan.
• In short, a marketing strategy clearly helps an organization reaches it’s
predetermined objectives.
 How to create a marketing strategy (steps in developing marketing strategies)

• 1. Define your business and marketing goals.

• 2. Conduct market research. 
• 3. Create a customer profile. 
• 4. Synthesize and strategize. 

Refer word document

 COMPETITIVE DIFFERENTIATION
• Is a positioning tactic to strategically make the
products/brands and services of the company
set apart from its competitors
• Staying unique in the market
• The goal of competitive differentiation is to
have the customer perceive an organization's
offering as being superior when compared to
other similar offerings/competitors products.
TOOLS/METHODS OF COMPETITIVE DIFFERENTIATION

1. Product Differentiation
2. Service Differentiation
3. Distribution Differentiation
4. Relationship Differentiation
5. Image/Reputation Differentiation
6. Price Differentiation
PRODUCT DIFFERENTIATION
 SERVICE DIFFERENTIATION
• The easiness to get/order the product
• Product Delivery time
• Installation of the product
• Customer training on how to use the product
• Repair/after sales service
 DISTRIBUTION DIFFERNTIATION
• Distribution channels
• How easily can the consumers get your
product before your competitor products
• Speedy and reliable
 RELATIONSHIP DIFFERNTIATION
• company personnel and customers
• The employees are responsible for executing
day-to-day client- facing communication, they
are the linkage between the product and
customer. (sales men/receptionist)
• If that linkage breaks down, the business is
destroyed.
 IMAGE DIFFERENTIATION
• be recognized by the target audience
• high levels of service, superior product quality,
or performance.
• Communication, advertising, and all types of
media — written, digital, and audio, as well as
the atmosphere of the physical place where
customers encounter the business.
 PRICE DIFFERENTIATION

• Customers would be willing to pay for your

product.
• Segmentation and differentiation allows a
business to come close to maximizing the
potential revenue by offering each segment a
differentiated product at a different price.
 Factors To Consider For Differentiation

Differentiation must result in the product being :

1. Valuable: the perceived benefit/value exceeds the cost

2. Important: delivers a benefit critical to success
3. Distinctive: unique or offered in a distinctive way
4. Superior: better technology
5. Emotional: relates to a core emotion — love, desire
6. Communicates: understood and visible
7. Preemptive: cannot be easily copied
8. Affordable: customers can pay the higher price
9. Profitable: contribution/revenue exceeds cost
END OF UNIT 8