Value-Based Marketing: Marketing Strategies for Corporate Growth and Shareholder Value - Assignment Example

? 20th March Problems – questions Section A Question SWOT analysis is a planning method that is used to evaluate strengths, weaknesses, opportunities and threats that are faced by a business. Being undertaken also to evaluate a product, industry or business location, SWOT is used to identify internal and external factors that affect a business. Internal factors involve strengths and weaknesses while external factors are opportunities and threats (Kerin 19). Another use of SWOT analysis is to create a recommendation after undertaking a survey. Question 2 Marketing entails communicating the benefits of a product to the customers. Being focused at advertising a product or a service, marketing is imperative in creating customer loyalty. Additionally, it ensures long term positive relationship between a product and a consumer. Two key companies that have succeeded based on their effective marketing strategies are Coca-Cola and Nokia. Through their extensive advertising strategies Coca-Cola and Nokia have emerged as world leaders in the soft drink and telecommunication industries respectively. Section B Question 1 Market segmentation entails dividing the wide target market into group of consumers who have similar requirements. After dividing the large target market into subsets, a company then provides products and services that meet the needs of their consumers. Consumers market can be segmented according to geographic aspects, psychographic factors, consumer’s behaviors, occasion as well as benefits derived from the products (Kotler, et al 56). Targeting involves focusing at a particular group of customers and adopting appropriate marketing strategies to sell products on the targeted group. Being part of the market mix, target market is vital in ensuring the success of any product. According to Kurtz there are seven major steps that marketers can adopt in segmenting their market as depicted by the flow chart below. Selecting target audience Identification of customer needs Adopting valuation approach that includes barriers to entry and accessing market Testing the segment Modifying market mix Positioning entails creating a strong image in the minds of targeted audience regarding the products of an organization. Earlier on positioning emulated the consumers marketing however with the growth in technology; companies have adopted Google and yahoo among other internet sites to enhance competitive positioning (Ries and Trout 39). Major aspects that companies should utilize to ensure effective positioning of their brands includes products quality, effective distribution, extensive promotion, attractive and secured packaging as well as affordable prices. Just like segmentation, companies that are focused at effective positioning of their brands can adopt six steps as depicted by the flow chart below. Identifying key competitors Understanding positioning strategies adopted by competitors Documenting the current positioning strategy adopted by the company Comparing the company positioning strategies with those of the competitors Establishing positioning that is value based Establishing an appropriate positioning statement supported by proper communication Question 2 Strategic planning entails defining the direction that an organisation will follow and making of essential decision regarding allocation of resources to attain the objectives of a company. By understanding the current position of a company, it is possible to emulate an effective course of action that will ensure the success of a company. In most cases a strategic planning covers a period of 5 years. One of the major components of a strategic plan is vision. Vision depicts what the organization wants to be. Secondly, a strategic plan should indicate the mission of a company. Mission indicates the basic purpose of a firm and the strategies it emulates in order to achieve its vision. For example, the mission of Coca-Cola Company is to provide quality brands that refresh the whole world. Value is another major component of a strategic plan. It indicates the beliefs that are emulated by all stakeholders including employees, managers, shareholders and the directors. The first key step in developing a strategic plan is evaluating the present situation and identifying the factors that caused the situation. Afterwards, the management defines the goals of their organisation. This is followed by establishing the path or the map that the organisation will emulate in order to achieve the preset objectives. The fourth step is to the set the desired end. The fifth step is to identify the gap that exist between the desired end and the current situation and come up with ways to close eliminate the gap. The final step during strategic planning is to use the available resources to undertake the activities that are focused at achieving the company objectives. Market plan is a comprehensive guideline that indicates the overall marketing strategies undertaken by a company. Being part of an organization’s strategic planning, market plan is aimed at effective utilization of company resources in order to achieve sustainable profits and sales. The flow chart below indicates the 5 key steps adopted during strategic planning. Question 4 A. Value driven marketing entails creation of deep value in the customer lives through provision of products that effectively meet their needs (Peter 17). As compared to the traditional product marketing that has is focused at attaining various objectives, value driven marketing main aim is to achieve strong customer loyalty (Kurtz 9). One of the major aspects of value driven marketing is that it is the customers who determines the value of the products and not the sellers. In their efforts to attract more customers and retain the loyalty of the existing consumers, marketers emulate real value as well as perceived value (Kotler and Keller 16). While real value is focused at making the clients undertake repeated purchase, the objective of perceived value is to convert potential clients into regular customers thus increasing the total sales of an organization. Marketers can use marketing mix to enhance customer’s perception of value by ensuring that quality of their products meets the needs of each customer segment (Baker 35). By emulating appropriate prices and promotion strategies, marketers can also create strong positive customer-product relationship. Additionally, effective packaging and distribution of products is vital in ensuring that consumers easily identify and access the valuable products. B. One of the major strategies that Nike emulate to communicate value is use of extensive promotion of its products. Based on its valuable products especially shoes that targets sports men, Nike has effectively taken the control of consumer’s minds thus ensuring strong relationship with its clients (Dolan and Simon 11). As a result, despite the high prices for its shoes, Nike still controls a significant market segment based on its efforts to meet the needs of its customers. Works Cited Baker, M. The Strategic Marketing Plan Audit. New York: McGraw-Hill, 2008.Print. Dolan, J and Simon, H. Power Pricing. London: Sage, 1996. Print. Kerin, A. Marketing: The Core. New York: McGaw-Hill, 2012. Print. Kotler, et al. Principles of Marketing. New York: Pearson education, 2009.Print. Kotler, P and Keller, K. Marketing Management. New York: Pearson Education Limited, 2012.Print. Kurtz, D. Contemporary Marketing Mason. OH: South-Western Cengage Learning, 2010.Print. Peter, D. Value-Based Marketing: Marketing Strategies for Corporate Growth and Shareholder Value. Wiley, 2000.Print. Ries, A. and Trout, J. Positioning, The battle for your mind. New York: McGraw-Hill, 1981.Print. Read More