Marketing Strategy Implementation - Essay Example

Marketing Strategy Implementation Marketing Strategy Implementation Question One The marketing driven strategies the company willemploy are product strategy, price strategy and promotion strategy. The product strategy will create the brand awareness of the high end products. They will be described and packaged differently from the competition. Hence, they will favorably compare with competitors while not appearing very similar to others in the product line (Laermer & Simmons, 2007). The pricing strategy will determine what the company intends to charge for the products. This will be based upon what the competition charges for the same product line. Since the products are intended to be high end, they will not be priced lowly in a manner to comprise this fact. On the contrary, under pricing will raise doubts among the consumers as to the quality of the products (Kotler & Keller, 2006). The promotion strategy will justify the cost. It will make the customers appreciate that they are getting what they are spending their money on. The rationale of this strategy is based on the intended themes of the advertisements. The themes of the commercials will not concentrate on areas like how long lasting or portable the products are. Instead, they will be designed to create a picture of ownership experience and appeal to the status of using such products. This will have the effect of reducing comparison with the competition’s products (Laermer & Simmons, 2007). Question Two A generic product-market comprises an extensive collection of products which fulfill a general, nonetheless similar, need (Kotler & Keller, 2006). The product-market boundaries will first be distinguished by identifying particular needs that a range of products will satisfy. Although customers may have the same needs, they will not always satisfy them in the same way. Therefore, product-markets are often diverse and contain different user groups with different categories of related products (Kotler & Keller, 2006). The product-market will match the customers to the benefits of the products. It will be formed by a set of products that may be substitutes in usage situations similar to the models of benefits sought by different groups of customers. The boundaries will then be distinguished by categories of products that satisfy generic needs and the targeted customers (Kotler & Keller, 2006). The products are closely related because the customers regard them as substitutes and the factors and elements used in production are similar. For example, two cosmetic gels in the same product line may differ in that one irritates the skin, and the other causes sneezing. However, both work well on clearing skin blemishes. The product-market boundary here will be to market one to customers whose skins are not sensitive hence prone to irritation while marketing the other to customers not easily irritated into sneezing. Question Three Instead of mass marketing of products, marketing will be designed for specific customer groups to increase profitability. The market will be segmented into various groups of customers with similar needs. The two strategies used will be psychographic segmentation and demographic segmentation. The psychographic segmentation will group customers basing on their values and lifestyles (Daganzo, 1979). Customers will be placed into groups of similar interests, opinions, attitudes and their activities. Each of this groups will be inclined towards certain products and may be targeted collectively. The second strategy, the demographic segmentation, will further be categorized by gender, age, occupation and culture. Here, men will be targeted separately from women with tailor made products. Furthermore, different age groups will be targeted with specific products and their particular benefits. Likewise, certain products will be marketed for specific income groups from middle income to high income. There will also be products for those active in sports. The two strategies will aim to keep the segments measurable and big enough to realize profits (Daganzo, 1979). Before a segment is created, a survey will be conducted to establish that it is stable enough to last for a realistic period and does not disappear before having an economic impact. Furthermore, each segment will be created in a way that potential customers are accessible and are also able to access the company’s distribution and promotion channels. The viability of a segment will be measured by its ability to consistently respond to market stimulus (Daganzo, 1979). The most significant rationale behind these strategies is that they present less risk by not relying on a single market. They can also achieve market coverage more effectively than mass marketing while shifting surplus production capacity to the fast moving segments (Daganzo, 1979). Customers in each division may be ready to pay extra for custom made products. Question Four A customer relationship management strategy will be developed with the purpose to promote loyalty and retention (DeGregor, 2011). This will be integrated among the policies of the company rather than a standalone approach. The strategy will be developed in a simple way considering that customers are already in too many relationships that make their lives complicated. The company will create mutually beneficial relationships with customers where loyalty, profits and customer satisfaction are achieved without nagging customers. It will remain a continuous process seeking to identify and build new values with individual customers. The benefits will then be shared over the association’s lifetime. The company will have to understand and manage the ongoing teamwork between itself and loyal customers to enhance creation of mutual value and sharing. This will entail that the company first identifies customers who are willing to form a relationship (DeGregor, 2011). Then, it will be possible to classify them into groups of the worst, average and best customers and accord each their appropriate value (DeGregor, 2011). The company will then have avoided the situation of giving average value to all groups, which translates into penalizing the best customers while rewarding the worst. Strategies will be outlined in provisions of strategic capabilities the company intends to have instead of the strategies themselves (Porter, 1980). They will include technology, process, knowledge and people. Since the initiatives will be difficult if the only focus is technology while people do not get sufficient attention, durable and strong relationships will be created with both stakeholders and employees. Emphasis will be placed on the connection between the relationship management and training, recruitment, performance review and compensation (DeGregor, 2011). Since developing new and mutual values with customers is the goal of customer relationship management, the company will design a process that accommodates customer inclusion and teamwork innovation. Business processes, people and customers’ technology will be integrated with those of the company. In this way, design and development will become collaborative (DeGregor, 2011). Finally, the company will distinguish the customers by becoming more relevant to them individually. This will be accomplished by means of widening the product range. If necessary, the company will work in collaboration with third parties to make sure that individual customers get the value they want instead of insisting that they buy the company’s products. This will be in conformity with the fact that in a market of individual and unique customers, value should be created to suit each one. The rationale behind this idea is that a large company does not necessarily generate the economies it requires to succeed (DeGregor, 2011). Partnerships are significant in meeting various needs of a wide client base. Question Five Collection of contact information is vital for a business’ survival (Porter, 1980). A company distributes notices, coupons, reminders and advertisements, but they will have no recipients without contact information (Kotler & Keller, 2006). The company will make a policy of collecting information directly from potential customers and not use them without their permission. A short and simple contact form will be created on the company’s website. It will comprise a series of boxes which may be filled in with users’ names, telephone numbers, mailing address and email address (Laermer & Simmons, 2007). The form will be on every page of the website for ease of access and submission by potential customers. Comment cards and sign up lists for email will also be strategically placed around the company’s outlets and writing materials provided. The marketing team will also be used to personally ask for business cards, which will be centrally filed. They can be collected through door to door marketing or opportunistic encounters in shopping malls or public transport (Laermer & Simmons, 2007). The team will be trained on how to ask tailored questions leading to the products. In the process, they will distribute catalogues and brochures. Personal contacts, family, friends and existing customers will be offered incentives to introduce and share their experience of the company’s products with their friends (Kotler & Keller, 2006). Another way will be to buy a lead list that contains contact and mailing information that is created based on the characteristics the company will specify (Kotler & Keller, 2006). Craft fairs, exhibitions and trade shows provide an avenue to collect information from potential customers. The raffles held at such events also provide information that can be used to reach potential customers (Kotler & Keller, 2006). Finally, follow ups and reminders will be conducted, and newsletters with options of commenting and listing short contact information distributed. References Daganzo, C. F. (1979). Multinomial probit: the theory and its applications to demand forecasting. New York: Academic Press. DeGregor, D. (2011). Customer-transparent enterprise: beyond 20th century CRM. New York: Motivational Press. Kotler, P. & Keller, K. L. (2006). Marketing management. New Jersey: Prentice Hall. Laermer, R. & Simmons, M. (2007). Punk marketing, New York: Harper Collins. Porter, M. E. (1980). Competitive strategy: techniques for analyzing industries and competitors. New York: The Free Press. Read More