Marketing Strategy

By : Prof Drissi Fadwa

2019 TOUT LE PERSONNEL
< D AT E >
 1. Fundamentals of Marketing Strategy
 SWOT Analysis

 Segmentation

 Targeting
Plan  Positioning

2. Growth Strategies: The Marketing Mix

 Product Strategy

 Pricing Strategy

 Distribution Strategy

 Communication Strategy

3. Competitive and Global Strategies

  Marketing refers to activities a company undertakes
to promote the buying or selling of a product or service.
 Marketing includes advertising, selling, and
delivering products to consumers or other businesses.
 Some marketing is done by affiliates on behalf of a

Marketing
company.
 It starts through market research
 Ultimately Marketing is Customer Satisfaction.
 Satisfying customer needs, requisitions and wants will be the
major goal in case of Marketing.
 Philip Kotler defines marketing as “the science
and art of exploring, creating and delivering value
to satisfy the needs of a target market at a profit”
  SWOT Analysis is a strategic planning tool
used by organizations to understand their
internal and external environments. It helps
businesses assess where they stand in the
market, identify opportunities, and address

SWOT challenges. In marketing, SWOT analysis is

especially important because it helps marketers
develop strategies based on a clear
understanding of the company's strengths,
weaknesses, opportunities, and threats.
SWOT Analysis
 Strenghts
 Strengths refer to the advantages or positive attributes that
the business possesses. These are the aspects of your
company that give you an edge over competitors.
Understanding your strengths helps you focus on what you're
doing well and leverage them in marketing strategies.
  Strong brand reputation

 High-quality products or services

 Strong customer loyalty

Example of  Large, engaged customer base
Strenghts  Efficient supply chain or operations

 Exclusive patents or technologies

 Strong financial position

manage them in your marketing efforts.

Weaknesses
(Internal)
 Weaknesses are the areas where your business may be
lacking or things that need improvement. These are the
internal factors that could put you at a disadvantage in the
market. By identifying weaknesses, you can work on
improving them or strategically manage them in your
marketing efforts.
  Limited product variety

 Weak online presence

 Poor customer service reputation

Example of  High operating costs
Weaknesses  Low brand awareness

 Inconsistent product quality

 Limited geographic reach

manage them in your marketing efforts.

Opportunities
(External)
 Opportunities are external factors that can benefit your
business or open new avenues for growth. These are
conditions in the market or industry that, if seized correctly,
can lead to greater success. Identifying opportunities helps
marketers develop strategies to expand, innovate, or enter
new markets.
  Emerging market trends (e.g., sustainability,
AI, health-conscious consumers)

 Technological advancements

Example of  Changes in consumer behavior

Opportunities  New target markets

demographic, psychographic)
(geographic,

 Regulatory changes that benefit your business

 Competitors’ weaknesses that you can exploit

manage them in your marketing efforts.

THREATS (External)
 Threats refer to external factors that could pose challenges or
risks to your business. These are the external conditions that
could hurt your brand, limit growth, or cause damage to your
reputation. Recognizing threats helps you develop
contingency plans and adapt your marketing strategy to
minimize negative impacts.
  Increased competition (new entrants, existing
competitors improving)

 Changes in consumer preferences (e.g., shifts in

technology or tastes)

Example of  Economic downturns or recessions

Threats  Government regulations (e.g., new taxes,

advertising restrictions)

 Negative publicity or brand reputation damage

 Supply chain disruptions or price increases on raw

materials
Conducting a SWOT Analysis

STEP 1: GATHER DATA STEP 2: BRAINSTORM STEP 3: EVALUATE STEP 4: DEVELOP STEP 5: CREATE
AND ANALYZE MARKETING ACTION PLANS
STRATEGIES
  Collect both internal data (sales figures, customer
Step 1: feedback, operational insights) and external data (market
trends, competitor analysis, consumer behavior reports).
Gather Data  Review our business's performance, as well as the wider
market landscape.
Step 2:  Hold brainstorming sessions with key stakeholders
(marketing, sales, product development, etc.).
Brainstorm and  Categorize information into the four SWOT components:
Analyze Strengths, Weaknesses, Opportunities, and Threats.
  Prioritize the most significant factors. Not all strengths,
weaknesses, opportunities, or threats will carry the same
Step 3: weight.

Evaluate  Identify key areas where action is needed and potential

strategies that can capitalize on strengths or address
weaknesses.
  Based on the SWOT findings, develop marketing
strategies that:
Step 4: Develop o Leverage Strengths to exploit Opportunities (e.g.,
expanding in a region where your brand is strong).
Marketing o Mitigate Weaknesses while defending against
Strategies Threats (e.g., improving customer service if
reputation is a weakness while navigating new
competition).
  Define clear action steps, timelines, and metrics for

Step 5: Create success.

Action Plans  Implement targeted marketing initiatives based on your

analysis (such as promotions, campaigns, or market
positioning).
 • Lacking Objectivity: Personal biases can skew your
analysis; strive for objectivity. Involve a diverse group of
stakeholders in the SWOT process to provide different
perspectives and challenge assumptions. Encourage
Mistakes to Avoid open discussion and debate to ensure a balanced and
unbiased assessment.
When Doing a SWOT
Analysis for • Relying on Assumptions: Avoid basing your analysis on
Marketing guesswork rather than actual data and research.
Conduct surveys, gather customer feedback, and
analyze market trends to inform your assessment.
• Ignoring External Factors: Don’t overlook external
elements such as market trends, competition, and
economic changes. Stay informed about industry
developments and conduct regular environmental
analysis to identify potential opportunities and threats.
  Neglecting Small Details: Even the smallest weaknesses or
threats can escalate over time and impact your marketing
efforts significantly. Take proactive measures to address
Mistakes to these issues early on, preventing potential complications
down the line.
Avoid When
Doing a SWOT • Being Overly General: Specifics matter, so make sure you
avoid vague descriptions in the analysis. Provide specific
Analysis for and concrete examples to support your points.
Marketing • Not Creating an Action Plan: After completing your SWOT
analysis, develop a clear action plan outlining the steps
needed to capitalize on strengths, address weaknesses,
seize opportunities, and mitigate threats.
  Definition of Market Segmentation:

Market segmentation is the process of dividing a broad

Segmentation market into smaller, distinct groups of consumers who
have similar needs, behaviors, or characteristics.
This practice allows companies to target their marketing
efforts more precisely rather than addressing the entire
market in a generalized way.
  Better meet consumer needs: Provide
products and services that precisely match
Why the expectations of specific groups.
 Optimize marketing resources: Target
Segment the communication and distribution efforts
Market? more effectively.
 Gain competitiveness: Differentiate by
tailoring the offer to the specific
characteristics of each segment.
Criteria for Market Segmentation
The criteria of segmentation refer to the specific characteristics or variables that
businesses use to divide a broad consumer or business market into smaller, more
manageable segments.

Behavior Segmentation
 Demographic segmentation is a marketing
strategy where a company divides its market
into smaller segments based on measurable
characteristics of the population. These
Demographic characteristics can include factors such as age,
Segmentation gender, income, education, occupation, family
size, ethnicity, religion, and social class.
By understanding these factors, businesses can
tailor their products, services, and marketing
efforts to meet the specific needs and
preferences of different demographic groups.
Key Variables in  Age: Different age groups have different needs, preferences,
Demographic and purchasing behaviors.

Segmentation  Gender: Men and women often have different preferences

when it comes to products and services.
 Income: Consumers with different income levels have
varying purchasing power.
  Zara (Clothing)

• Age: Zara primarily targets young adults (18-35 years) with trendy,
affordable collections. The style is modern and dynamic, appealing to
those who want fashionable clothing at reasonable prices.
• Gender: Zara offers separate collections for men and women, with
specific product lines for each gender (e.g., women's lines focused on
elegant dresses and men's lines focused on business and casual

Examples wear).
• Income: Zara targets middle to upper-middle-income consumers with
affordable, stylish clothing while maintaining a reasonable price
range.
 McDonald's (Fast Food)

• Age: McDonald's targets families with children (through Happy Meals)

and young adults (18-35 years) who seek quick, affordable meals.
• Income: McDonald's predominantly targets middle to low-income
consumers with affordable value meals, but also offers higher-end
menu items like salads and premium burgers to attract a broader
range of income groups.
• Family Situation: McDonald's also targets families through its "Family
Meals" promotions and kid-friendly meals.
  Better Targeting: By using demographic information,
businesses can create more effective marketing
campaigns and offer products that align with the
specific needs of each demographic.
Benefits of  Increased Customer Satisfaction: Products that

Demographic meet the needs of a specific demographic group are

more likely to resonate, leading to higher customer
Segmentation satisfaction.
 Optimized Marketing Resources: Marketing efforts
are more efficient because businesses can
concentrate their resources on the most relevant
groups, increasing the likelihood of conversion.
  Over-Simplification: Demographic characteristics
alone may not fully capture the complexity of

Challenges of consumer behavior. Two people

demographic group may still have
in the same
very different
Demographic needs.
 Changing Demographics: Demographics evolve over
Segmentation time, and companies must adapt to these shifts. For
example, generational preferences can shift, so
marketers must stay updated.
  Behavioral segmentation is a type of
market segmentation strategy which
involves dividing the total market into
Behavior smaller homogeneous groups based on
Segmentation customer buying behavior related to
occasion, usage, benefits, loyalty etc. It is
done keeping in mind the needs and
wants of a customer based on the
behavior that they show.
Key Variables
in Behavioral
Segmentation
  Usage rate
 In the first set of data, you’ll be analyzing the frequency
of your customer’s need for your product. Your
Key Variables (potential) customers can be divided into:
 Light – Medium- Heavy product users
in Behavioral  Loyalty segment:
Segmentation  Customers who make repeat purchases and engage with
the brand are identified as loyal customers. They may be
rewarded with special offers, exclusive access, or early
releases.
  Occasions
 Depending on where you live and what your industry is,
you can define special occasions that drive specific sales.
Some of these occasions are holidays – Christmas,
Key Variables Halloween, Thanksgiving, Mother’s Day. The occasions can
even be seasonal, such as summer or spring.
in Behavioral  Benefits
Segmentation  This categorization digs a bit deeper than the previous
two. In this type of behavioral segmentation, you classify
your customers according to the benefits they seek from
your product. Is it design? Is it the price? Is it multiple
features or a specific one?
  Psychographic segmentation involves dividing
a market based on consumers' lifestyles,
values, interests, attitudes, opinions, and
personality traits. This approach takes into
Psychographic account the psychological factors that

Segmentation influence how individuals make purchasing

decisions, go about their daily activities, and
interact with brands. Unlike demographic or
behavioral segmentation, which focus on
external or observable traits, psychological
segmentation delves into the internal factors
that shape consumer behavior.
  Personality: Different personality traits can influence the
types of products and services a person may prefer.

Key Variables in • Example:

• Outgoing/Extroverted Consumers: Brands like Red Bull
Psychological appeal to extroverted individuals who are social, energetic,
and adventurous. They market through events, extreme
Segmentation sports, and fun messaging.
• Introverted Consumers: Brands like Apple or reading
services like Kindle may appeal to introverted consumers
who appreciate simplicity, solitude, and creativity. Their
marketing often focuses on functionality, quiet elegance,
and individualism.
  Values and Beliefs: Consumers' core values or
beliefs about social, environmental, or political
issues can strongly impact their purchasing
Key Variables behavior.
• Example:
in • Environmental Values: Brands like The Body Shop
Psychological target consumers who are passionate about
sustainability, ethical production, and
Segmentation environmentalism. These brands emphasize eco-
friendly practices, recyclable packaging, and fair
trade.
• Health-Conscious Values: Companies like Whole
Foods, or vegan brands like Impossible Foods, target
consumers who prioritize health, wellness, and
organic living. They market their products as healthier
alternatives to mainstream, processed food options.
  Lifestyle: This refers to the way consumers live their
lives and how it influences their purchasing decisions. It
includes activities, interests, and opinions.
• Example:

Key Variables in • Active Lifestyle: Companies like Nike, Adidas, or Under

Armour target consumers who are interested in sports,
Psychological fitness, and outdoor activities. These brands market
activewear and sports equipment, emphasizing
Segmentation performance and health.
• Luxury Lifestyle: High-end brands like Louis Vuitton,
Gucci, or Tesla target consumers who value luxury,
exclusivity, and status. These brands create a lifestyle
image around their products, emphasizing sophistication
and prestige.
  Deeper Connection with Consumers: By focusing on
consumers' values, interests, and personalities, businesses can
Benefits of build stronger emotional connections with their target
audience.
Psychological  Highly Personalized Marketing: Psychological segmentation
Segmentation allows businesses to create highly tailored marketing
messages and products that speak directly to the motivations
and preferences of specific consumer groups.
 Brand Loyalty: When consumers feel that a brand aligns with
their lifestyle, values, and attitudes, they are more likely to
develop loyalty and become repeat customers.
  Difficulty in Measurement: Unlike demographic or
behavioral segmentation, psychological factors can be
harder to quantify and analyze.
 Gathering psychographic data often requires sophisticated
methods like surveys, focus groups, or in-depth customer
Challenges of interviews.
Psychological  Subjectivity: Psychological segmentation is subjective by
nature, as individuals may have different motivations and
Segmentation behaviors even if they share similar lifestyle traits or values.
 Dynamic Consumer Preferences: Psychological factors such
as values, attitudes, and interests can change over time. For
example, a consumer who once valued luxury might shift to
prioritize sustainability or health. Brands must stay
adaptable and continuously monitor shifts in consumer
psychology.
  Geographic segmentation refers to the process
of dividing a market into different geographic
units, such as countries, regions, cities, or
neighborhoods. It is based on the idea that
Geographic people living in different locations may have
Segmentation different needs, preferences, and buying
behaviors due to environmental, cultural, or
regional factors. By focusing on geographic
areas, businesses can tailor their products,
marketing messages, and distribution strategies
to suit the unique characteristics of different
geographic regions.
  Location: The primary factor in geographic
segmentation is the physical location of consumers.
This can range from broad regions (such as countries or
continents) to more specific areas (like cities or
neighborhoods).
Key Variables Example:
in Geographic • National Markets: A fast food chain like McDonald's
adjusts its menu offerings depending on the country. In
Segmentation India, for instance, McDonald's offers vegetarian
options to cater to cultural preferences, whereas in the
U.S., it serves more beef-based products.
• Local Markets: A local coffee shop might adjust its
offerings based on the preferences of consumers in a
specific neighborhood (e.g., offering different types of
coffee or pastries based on customer tastes).
  Climate/Weather: Climate is another key factor in
geographic segmentation, as weather conditions can
influence the types of products people need or
prefer.

Key Variables Example:

• Cold Climates: Clothing brands like Canada Goose or
in Geographic North Face segment their markets by offering warm,
insulated outerwear for consumers living in colder
Segmentation regions.
• Hot Climates: Companies like Speedo or Havainas
target markets in warmer climates with products like
swimsuits, sunscreen, and beachwear.
  Urban vs. Rural Areas: People living in urban and
rural areas often have different lifestyles, needs, and
purchasing behaviors.
Example:

Key Variables • Urban Areas: Brands like Uber or city-based grocery

delivery services (e.g., Instacart) tend to focus on

in Geographic urban populations, offering convenience-driven

services that fit the fast-paced lifestyle of city

Segmentation dwellers.
• Rural Areas: Companies like John Deere or Tractor
Supply cater to rural consumers by offering
agricultural equipment, tools, and supplies that are
essential for farming and outdoor living.
  Population Density: The density of a population can
impact the demand for certain products and
services.
Example:
Key Variables • High-Density Areas: In densely populated cities,
products like public transportation passes, city
in Geographic apartments, or urban-specific services (e.g., food
delivery apps like DoorDash) are in demand.
Segmentation • Low-Density Areas: In sparsely populated areas,
there may be a greater demand for products like
larger vehicles (e.g., pickup trucks), outdoor
equipment, or rural healthcare services.
  Economic Conditions: Geographic regions often vary in
terms of economic conditions, which influence
consumers' purchasing power and preferences.

Key Variables Example:

• Wealthier Regions: Companies like Rolex, Louis Vuitton,
in Geographic or Tesla may focus on affluent regions where there is a
higher disposable income and a demand for luxury goods.
Segmentation • Lower-Income Areas: Brands like Walmart or Dollar Tree
focus on areas with lower average income, offering
affordable everyday items and discount products.
  Tailored Marketing: Geographic segmentation allows
businesses to create marketing campaigns that are relevant
to specific regions, making them more effective and
resonant with local consumers.
 Efficient Resource Allocation: By understanding the regional
Benefits of differences in consumer preferences and behaviors,
companies can focus their marketing efforts and resources
Geographic on areas with the highest potential for success.

Segmentation  Cultural Sensitivity: It helps brands to avoid cultural

misunderstandings by adapting products and marketing
strategies to suit the cultural and social norms of different
regions.
 Optimized Distribution: Geographic segmentation enables
companies to adjust their distribution strategies, ensuring
that products are available in areas where demand is high
and logistics are more efficient.
  Over-Simplification: Geographic segmentation may not
always account for the nuanced differences in behavior
that exist within regions. For instance, urban and rural
areas in the same region can have vastly different
consumer needs.

Challenges of  Cost of Customization: Localizing products, services, and

marketing campaigns for different geographic areas can be
Geographic expensive and resource-intensive.

Segmentation  Market Overlap: Consumers from different geographic

areas may still have overlapping preferences, and treating
them as distinct groups might miss opportunities for
broader appeal.
 Changing Economic Conditions: Regional economic
downturns, shifts in population, or changes in local laws
can affect demand and complicate long-term
segmentation strategies.
  Segmentation allows you to create groups of individuals
with homogeneous expectations and behaviors and to
visualize the main types of consumers in a given market.
 Then, evaluate these different segments in relation to the
company's strategy, its competitive advantages and its
resources to choose one or more segments to target as a
Targeting priority to optimize results.
 Targeting is a strategic decision because it will direct the
company's efforts towards a particular costumer(s) and
determine other strategic choices, such as positioning, and
operational choices through the implementation of a
specific marketing mix.
 - In order to choose the segment(s) mainly targeted, it
Segment is necessary to evaluate them one by one.
- This evaluation focuses on their intrinsic
Evaluation attractiveness but also on the level of adequacy with
the company's resources and its strategy.
  The attractiveness of market segments is primarily evaluated
based on several key factors:

1. Size: This refers to both the market's overall value and volume,
which help determine its potential for generating significant
sales.

Attractiveness 2. Dynamism: The past growth of the segment, in terms of both

volume and value, provides insights into its momentum and
future potential.

3. Competitive Intensity: This factor examines the level of

competition within the segment. A market can either be
fragmented with numerous players (atomized) or dominated by
a few major competitors (concentrated), which affects the
competitive pressure businesses face.
4. Accessibility: This relates to how easy or difficult it
is for a company to enter the segment. Barriers to entry, such
as high capital investment or regulatory hurdles, can limit
accessibility.

5. Profitability: Segments vary in their ability to

generate profits, with different levels of margins impacting
the attractiveness of the segment for businesses.

6. Development Prospects: The future growth

potential of a segment, both in terms of volume and value,
plays a crucial role in assessing its long-term appeal and
sustainability.
 These factors help businesses determine which
market segments are the most promising and align
with their strategic goals.These factors must be
considered globally in relation to each other: a small
segment may be considered very attractive due to
its high profitability and dynamism, while a large
segment with equal profitability may be less so due
to its difficulty of access and its competitive
intensity.
  The evaluation of segments must also take into account
the company's ability to serve them effectively based on
the means at its disposal.

Fit the We are thinking in particular of:

- Financial means: for example, is the company able to
company's devote enough budget to communication if it targets a

means
segment for which strong media visibility is necessary?
- Technological resources: Does the company possess the
technical or technological expertise to bring to market an
offering that effectively meets the needs and expectations
of consumers in the segment?
- Human and organizational resources: for example,
does the company have the necessary commercial
structure (sales representatives, points of sale, etc.) to
effectively cover the segment under consideration?
- Informational resources: does the company have
sufficient information to effectively reach the segments
considered?
  Targeting as an element of the marketing strategy
Fit with the must be compatible with the company's overall
strategy.
company's  Thus, the relevance of the segments is assessed with
strategy regard to the company's mission, the type of
business model it intends to adopt and its strategy.
  When developing a targeting strategy in marketing,
businesses need to consider several key
determinants that influence how they segment and
Determinants select the right groups of consumers. These
determinants help marketers decide which segment
of targeting to target based on factors such as the market’s
potential, competition, company capabilities, and
strategy external influences. Below are the key determinants
that influence the selection of a targeting strategy:
 • Market Size: The size of a segment influences
whether it is worth targeting. Larger segments may
offer higher revenue potential, but they may also
face more competition.
1. Market Size • Growth Potential: Segments that show strong
and Growth growth potential are more attractive. A growing
market may be less competitive and provide long-
Potential term business opportunities.
• Example: A rapidly expanding middle class in
emerging markets can be a desirable target for a
new consumer product.
 • Revenue Potential: Some segments may be larger
but have lower purchasing power, whereas smaller
segments may offer higher profits. Marketers must
assess the profitability of each segment.

2. • Cost of Serving: The cost to reach and serve each

segment must be weighed against the potential
Profitability revenue. A smaller, more profitable segment may be
more desirable than a larger but less profitable one.
• Example: Luxury products might target a smaller,
high-income group where each customer brings in
higher revenue, compared to mass-market products
that require selling to a broader audience.
 • Level of Competition: Segments with a lot of
competition may be difficult to enter or require
significant resources to differentiate the product or
service. On the other hand, under-served segments
3. might offer opportunities for differentiation and
dominance.
Competition • Competitive Advantage: A company needs to assess
whether it can create a unique value proposition (e.g.,
through better product features, service, or price) to
effectively compete in the segment.
• Example: A niche segment with few competitors
might be ideal for a new brand, while a saturated
segment might be better served by more established
brands.
 • Financial Resources: The company must evaluate
whether it has the financial capacity to target a
particular segment, especially in terms of
advertising, product development, and distribution.
4. Company • Operational Capabilities: Does the company have
Resources and the operational strength to serve a specific
segment? This includes production capabilities,
Capabilities supply chain, customer support, and distribution
channels.
• Example: A small business might focus on a local or
niche segment with lower operational demands,
while a larger company might have the resources to
target multiple, larger segments.
 • Reachability: Can the target segment be effectively
reached through available communication channels?
The accessibility of a segment depends on whether
the company can easily communicate with and serve
5. Market the segment.

Accessibility • Media and Distribution Channels: A segment that is

active online may be effectively targeted through
digital marketing, whereas segments in rural or
underserved areas might require more localized or
traditional channels (e.g., direct mail or field sales).
• Example: Digital products like software may target
tech-savvy users who are active online, while home
improvement products might focus on homeowners
who are accessible through physical retail or
specialized stores.
  Distinctiveness of Needs: A segment with distinct,
unfulfilled needs provides an opportunity for
targeted marketing. These needs could be
emotional, functional, or social.

6. Consumer  Product Fit: The company must ensure its offering

aligns with the needs, desires, and behaviors of the
Needs and chosen segment. The more precisely a product or
service can meet the needs of the target segment,
Preferences the more likely it is to succeed.
 Example: A health-conscious demographic might
respond to organic food products, while tech
enthusiasts may be more inclined to purchase the
latest gadgets.
 • Brand Identity and Positioning: The target segment
must be in alignment with the company’s brand
positioning. For instance, a company known for
affordability might focus on mass-market segments,
while a luxury brand will target high-income

7. Positioning segments.
• Differentiation: The company needs to determine
Considerations how it will position itself in the minds of the target
segment. This could involve offering a unique
product feature, service, or experience.
• Example: A high-end car manufacturer might
position its vehicles as symbols of luxury and target
affluent individuals, while a budget brand may
position its cars based on value for money, targeting
more price-sensitive customers.
 • Legal Regulations: Some segments may be
influenced by laws and regulations that impact
marketing efforts, such as advertising to minors or
restricted advertising in certain countries.
• Cultural and Social Influences: Cultural attitudes
8. Regulatory and and values can affect which segments are more
appealing. For example, certain products might be
Environmental marketed differently in diverse regions or countries
Factors due to cultural preferences.
• Example: Advertising tobacco or alcohol might face
restrictions in certain countries or among specific
age groups, influencing the targeting strategy.
 • Data Availability and Analytics: With the increasing
availability of consumer data and analytics tools,
businesses can now target segments with greater
precision based on online behavior, location, and

9. Technological social media activity.

• Innovation: New technology can open up new
Advancements market segments or provide more efficient ways to
serve existing ones.
• Example: A fitness app targeting a health-conscious
audience might use data from wearable devices (like
fitness trackers) to refine its targeting strategy.
  Long-Term Value: When considering targeting,
businesses should evaluate the lifetime value of
customers in each segment. Targeting segments that
offer high potential for repeat business or long-term
relationships is often more profitable than targeting
10. Customer short-term buyers.
 Example: Netflix or Spotify
lifetime value Both Netflix and Spotify offer subscription-based
services that target customers who are likely to stay
for an extended period. Rather than focusing on
one-time users or short-term customers, they invest
in attracting individuals who will subscribe for
months or even years.
  In marketing, targeting strategies refer to how a
business selects and focuses its marketing efforts on
Targeting specific segments of the market. The goal is to
identify the segments that offer the best potential
strategies for achieving the company’s objectives and to tailor
marketing activities to meet the unique needs of
these groups.
 • Mass marketing is a strategy where a company targets
the entire market with a single, unified marketing
campaign. The idea is to appeal to a broad audience by
offering a standardized product that meets the needs of
1. Mass the general population.

Marketing • Characteristics:
• No Segmentation: The product is designed for mass
appeal, and there is no focus on differentiating between
specific groups or niches.
• Standardized Offering: The company typically offers one
product (or a very limited product range) that is marketed
to all customers in the same way.
• High Reach: The marketing efforts are directed at as
many consumers as possible, often using broad-reaching
media channels such as TV, radio, and digital advertising.
• Advantages:
• Economies of Scale: Producing and marketing a
single product for a large audience can lead to cost
savings.
• Wide Market Coverage: It allows the company to
reach a very large audience, which can result in high
sales volumes.

• Disadvantages:
• Lack of Personalization: Since the product is aimed at
everyone, it may fail to meet the specific needs of
distinct consumer segments.
• High Competition: Mass marketing products often
face intense competition because many other
companies target the same broad market.
 • Differentiated marketing (also called segmented
marketing) is a strategy where a company targets
multiple market segments and offers tailored
marketing programs to meet the needs of each
segment. The company recognizes that different groups
2. Differentiated of consumers have different needs and preferences.

Marketing • Characteristics:
• Multiple Segments: The company targets several
distinct segments within the broader market, each
with its own marketing mix.
• Different Product Variations: The product might
be offered in various versions, sizes, or variations
to meet the specific demands of each segment.
• Customized Marketing Messages: The marketing
messages and advertising strategies are tailored to
each segment to ensure relevance.
 Advantages:

- Better Market Penetration: By appealing to multiple

segments, the company can increase its overall reach and
appeal to a broader customer base.
- Higher Customer Satisfaction: Offering products that
meet the specific needs of different segments can lead to
better customer satisfaction and loyalty.
 Disadvantages:

- Increased Costs: This strategy requires more resources

for product development, marketing, and distribution,
leading to higher costs.
- Complexity: Managing multiple product variations and
marketing strategies can be complex and challenging for
the company.
 • Concentrated marketing, also called niche marketing,
involves targeting a single, specific segment of the
market. Instead of trying to appeal to the entire market,
the company focuses all its marketing efforts on a niche
group with specialized needs.
3. Concentrated • Characteristics:
Marketing • Focused Targeting: The company focuses its
resources on one segment, tailoring its product and
marketing mix to fit the specific needs of this group.
• Deep Understanding of the Segment: To succeed in
this strategy, companies must have a deep
understanding of the target segment’s needs,
preferences, and behaviors.
• Niche Market: The targeted segment is often smaller
but highly specific, and the product offerings are
designed to meet the specialized needs of that
group.
 Advantages:

- Less Competition: By focusing on a niche market, the company

faces less direct competition and can become a leader in that
segment.
- Stronger Brand Loyalty: By meeting the specific needs of a
particular group, companies can create strong brand loyalty
within the segment.
-- Lower Costs: This strategy typically involves less market
research and lower advertising costs because the target audience
is narrow.
 Disadvantages:

- Limited Market Size: The market segment is smaller, which can

limit the company’s overall revenue potential.
- Risk of Over-Dependence: Focusing on one segment creates a
risk if the segment shrinks or loses interest in the product.
 • Micromarketing refers to an even more targeted approach
than concentrated marketing. It focuses on targeting
individuals or very small segments (often referred to as one-
to-one marketing or personalized marketing). The company

4. creates highly customized products and marketing messages

for a single customer or a very small group of customers.

Micromarketing • Characteristics:
• Personalization: The marketing message and product
offerings are tailored to each individual’s preferences,
needs, and behaviors.
• Advanced Technology: This strategy often involves
using data analytics, artificial intelligence, and customer
relationship management (CRM) tools to deliver
personalized experiences.
• Highly Specialized: Micromarketing is common in
industries where customers have very specific needs or
where products can be customized.
  Positioning in marketing refers to how a company
wants its brand, product, or service to be perceived
in the minds of its target consumers relative to
competitors. It involves strategically creating a
unique and compelling image of the brand that
Positioning resonates with the target market’s needs, desires,
and preferences.
 Positioning is not about the physical product itself
but about how it is perceived by the consumer, how
it compares to other products, and the emotional
connection it creates with them. The goal of
positioning is to carve out a distinct and favorable
place in the marketplace, influencing how customers
think about a brand.
 To be a real guide in the development of action
plans, positioning must have two dimensions:
- An identification dimension which allows the product
to be defined and what it is used for.
- A differentiation dimension where the points of
difference compared to competing products are
specified.
 Identification : This functional description of the
product must allow it to be associated with an
existing category of products or with specific
benefits if the category does not yet exist.

 Differentiation : This involves describing how the

product stands out from competing products,
whether it is tangible or intangible elements. This is
in a way the justification for the existence of this
product.
Positioning  The strength and relevance of a positioning are
decisive for the success of a product. It is therefore
evaluation essential to know how to evaluate a positioning to
understand the dynamics of a brand and identify
areas for optimization. Since there are three of these
criteria, we sometimes speak of the "golden
triangle" of positioning.
 Attractiveness: the positioning must be attractive to
the chosen target, correspond to the expectations
(expressed or latent) of consumers in the targeted
segment(s);
 Differentiation: the positioning must be sufficiently
different from the existing offer to justify the existence
of the product in the eyes of the target consumers;
 Credibility: the positioning must be credible,
consumers must be able to believe that the product
will be able to keep its promises, whether these are
concrete results or intangible elements.
  Understanding your offer also means understanding
your products and where they fit in the market of
goods and services you are targeting.

Understand  You need to make sure you understand your product

and its competitive advantages.
Your Offer • ✔ What are the features/options?
• ✔ How will my product/service differentiate
and stand out?
 There are several types of “marketing positioning”
to differentiate your product in the market,
  In the early days of your strategies from positioning
marketing, the brand focuses on the specifics of the
product or service. That is, you offer something that
competitors do not.

Positioning  Do the features of your product make a difference? Here

are two examples:
on Benefits  Example 1:
• 🚀 You sell B2b prospecting software: the difference
between your software and the competition is that you
offer custom services to tailor the tool to each client. This
means that you position yourself on the advantages to
differentiate yourself from the competition.
 Example 2:
• 🚉 You are a travel company, and you sell all-inclusive offers,
you have a 24-hour support service. So, you focus on the
offers and their benefits rather than the prices.
  Quality-Based Positioning Brands may position
themselves as offering the highest or best quality in a
specific category. Quality-based positioning focuses on
Quality- delivering superior performance, durability, and
reliability.
Based • Examples:

Positioning • 1. BMW positions itself as a premium, high-performance

car brand that offers a superior driving experience
compared to competitors.
 2. You want to open a tea shop, all your products are
organic and local. So you are going to bet your marketing
communication on the quality of the products to show
the difference between your salon and the competing
salons. You will propose elaborated recipes and bet on
the user experience, the products will be good and fresh
and will justify the high prices.
  Price-Based Positioning : Positioning based on price
involves targeting consumers who are looking for
products at specific price points. A brand might

Price-Based position itself as the lowest-cost option or a

premium, luxury offering.

Positioning • Example: Walmart positions itself as offering low

prices on everyday products, while Rolex positions
itself as a premium luxury brand.
  Usage-Based Positioning This involves positioning a
product based on its usage occasion or the specific
need it addresses. Brands communicate when and
Usage-Based why consumers should use the product.

Positioning • Example: Redbull is positioned as a drink for athletes

and active individuals who need to hydrate and
replenish electrolytes during physical activity.
 Niche Positioning Niche positioning focuses on a very
specific market segment and aims to create a unique
identity that resonates deeply with this target

Niche audience.
Example: Tesla positions itself in the niche market of
Positioning luxury electric vehicles, offering environmentally
conscious consumers an alternative to traditional gas-
powered cars.
 1. Identify the Target Market First, it’s crucial to
understand the characteristics and needs of the target
market. Conduct market research to understand
consumer behavior, preferences, demographics, and
Steps to Develop psychographics. This helps define the segment to focus
on.
a Positioning • Example: A luxury watch brand may target wealthy
Strategy individuals who value craftsmanship and exclusivity.
2. Analyze the Competition Study competitors'
positioning to understand where they stand in the market
and identify gaps or opportunities. Analyze their strengths
and weaknesses to identify how your brand can be
different or superior.
• Example: If competitors are focusing on low-cost
products, you might position your brand as offering
superior quality and luxury.
3. Define Your Unique Selling Proposition (USP) :The
USP is the key differentiator of your product, service,
or brand. It’s the reason why consumers should choose
your product over competitors. The USP should reflect
the unique benefits that resonate with the target
audience’s needs and desires.
Example: FedEx’s USP is its commitment to overnight
delivery with a guarantee.
4. Create a Positioning Statement : Based on the
target market, competition, and unique selling
proposition, develop a clear positioning statement that
outlines how the brand should be perceived.
5. Communicate the Positioning Once the positioning
strategy is defined, it must be communicated
consistently across all marketing channels. This
includes advertising, social media, customer service,
and even the product’s packaging. The message should
reinforce the brand’s desired position in the minds of
consumers.
• Example: Nike’s positioning strategy revolves around
empowering athletes, with the slogan “Just Do It”,
and its campaigns often focus on determination and
self-improvement.
The Marketing Mix
The Marketing Mix is a set of strategic tools used by
businesses to promote and sell products or services.
Often referred to as the 4Ps, these are Product, Price,
Place, and Promotion. Each of these elements plays a
key role in the success of a marketing strategy.
 The Product element of the Marketing Mix is one of
the most important aspects of a business's overall
strategy. It refers to the decisions and actions related
PRODUCT to the development, design, quality, and features of a
product or service. A well-executed product strategy
STRATEGY helps a business create a product that meets the needs
and wants of the target market, enhances customer
satisfaction, and differentiates the company from its
competitors.
The product strategy focuses on the creation and
positioning of the product, taking into account the
product life cycle, branding, and the value it provides
to customers.
  The objectives of a product strategy are varied and can include:

 Differentiation: Creating a product that stands out from

competitors based on unique features, quality, or design.

 Customer Satisfaction: Ensuring the product fulfills the

needs, desires, and expectations of the target market.
1. Objectives of  Brand Building: Strengthening brand identity by aligning the
Product Strategy product with the brand’s values and promise.

 Market Penetration: Introducing the product into new

markets or reaching new customer segments.

 Innovation: Developing new products that lead the market or

address emerging customer needs.

 Profitability: Creating a product that contributes to the

company’s revenue and profitability.
 A comprehensive product strategy involves several
components that together help create a strong offering for the
market.
2. Key Components 2.1 Product Design and Features
of Product Strategy  The design and features of a product are central to its
appeal and functionality. Businesses must consider the
following aspects when designing a product:
2.1 Product Design  Aesthetics: How the product looks and feels to consumers.
and Features
 Functionality: What the product does, its primary
purpose, and how it performs its tasks.

 Usability: How easy it is for customers to use the product.

 Quality: The standard of materials and craftsmanship

involved in making the product.
 Example : Dyson invests heavily in designing vacuum
cleaners that are not only functional but also visually
striking and user-friendly.

 Advantages:

 Well-designed products can command higher prices.

 Aesthetics and functionality can differentiate the product

in a competitive market.
 Branding is a key element of product strategy because it creates a strong identity
for the product, aligning it with the company’s overall brand image. Effective
branding influences customer perceptions, builds loyalty, and adds value to the
product.
 Key Concepts:
 Brand Name: A memorable and meaningful name that resonates with
customers.
2.2 Branding  Brand Identity: The visual elements (logo, colors, packaging) and messaging
associated with the product.

 Brand Loyalty: Customers' commitment to purchasing from the same brand

over time due to positive experiences.

 Example: Nike has built a powerful brand around its athletic shoes, focusing
on high performance, innovation, and a sense of achievement through the
“Just Do It” slogan.
 Advantages:

 Strong branding can create customer loyalty.

 Customers are often willing to pay more for products from trusted brands.
 Product differentiation is the process of distinguishing a product
from others in the market to make it more appealing to a specific
target audience. This could involve features, design, quality, or
2.3 Product customer experience.
Differentiation  Key Concepts:

 Unique Selling Proposition (USP): A distinctive benefit or

feature that sets the product apart from competitors.

 Innovation: Developing new, groundbreaking features that

competitors lack.

 Example: Tesla differentiates its electric vehicles through

cutting-edge technology, long-range capabilities, and a focus on
sustainability, setting its products apart from other car brands.
 Advantages:

 Helps the product stand out in crowded markets.

 Allows the company to command premium prices due to unique

features.
  The product life cycle (PLC) refers to the stages a product goes through from its
introduction to the market to its eventual decline. Businesses must manage the
product throughout each phase to maximize its success.
 Key Stages:
2.4 Product Life
Cycle Management o Introduction: The product is launched. Sales are typically low, and marketing
efforts focus on awareness.

o Growth: The product gains traction, and sales increase. The company focuses on
expanding its market share.

o Maturity: Sales growth slows, and the product faces intense competition.
Companies often focus on product improvements or enhancements.

o Decline: Sales decline as the product becomes outdated or is replaced by newer

alternatives. Companies may discontinue the product or reduce marketing
efforts.

 Advantages:

 Managing the PLC helps businesses determine when to innovate, update, or

phase out a product.

 Allows companies to adjust pricing and promotional strategies based on the

product’s life stage.
 Packaging plays an important role in protecting the product,
providing necessary information, and influencing consumer
perceptions. Well-designed packaging can also serve as an
extension of the brand.
2.5 Packaging and
Labeling  Key Concepts:
 Attractiveness: Packaging must catch the eye and make the
product stand out on store shelves.
 Functionality: It must protect the product and be easy to use.

 Information: Labels provide important details about the

product, including ingredients, usage instructions, and
branding.

 Advantages:
 Effective packaging can increase perceived product value and
appeal.
 It helps in building brand identity and providing information
that can influence purchasing decisions.
 Companies adopt different strategies based on their goals, market
conditions, and the nature of their products.

3. Types of Product 3.1 Market Penetration Strategy

Strategies This strategy involves introducing a product into an existing market to
increase its market share. It often involves offering the product at a
competitive price or using promotional tactics to encourage consumer
adoption.
3.1 Market  Advantages:
Penetration Strategy
 Increases market share and revenue.

 Helps to increase brand recognition and customer loyalty.

 Product development involves creating new products or
significantly improving existing products to meet customer
needs or to take advantage of new technology or trends. This
3.2 Product strategy is often used when a company wants to enter a new
Development market segment or grow in an existing market.
Strategy  Example: Apple regularly launches new products, such as
the iPhone and the Apple Watch, to meet customer demands
for new technology.
 Advantages:

 Can attract new customers and increase revenue.

 Demonstrates innovation and brand leadership.

 Diversification involves developing new products for new
markets. This is a high-risk strategy but can yield high
rewards if successful. Companies use this strategy to spread
risk or tap into new growth areas.
3.3 Diversification
Strategy Example: Virgin Group expanded from music and
entertainment to airlines, telecommunications, and even
space travel.
 Advantages:

 Reduces dependency on a single product or market.

 Can provide new revenue streams and growth

opportunities.
 Brand extension involves using an existing brand name to
introduce new products in a different category. This strategy
capitalizes on the strength of an established brand to enter
3.4 Brand Extension new markets.
Strategy  Example: Honda, known for motorcycles, expanded into
cars and power equipment using the same brand name.
 Advantages:

 Leverages the established brand’s reputation and

customer base.

 Faster market acceptance and reduced marketing costs.

 To assess the effectiveness of a product strategy, businesses
should measure:
4. Measuring  Customer Satisfaction: Feedback, surveys, and reviews
Product indicate how well the product meets customer
expectations.
Effectiveness  Sales and Profit Margins: High sales and healthy profit
margins indicate that the product is successful.

 Market Share: Tracking changes in market share shows

how the product is performing compared to competitors.

 Product Quality: Ongoing product testing and quality

assurance can ensure that the product meets high
standards.
 Price is part of the marketing mix because if you get
the price wrong you will not sell your product. There
are lots of different pricing strategies but every
PRICE strategy must cover at least your costs unless the price
is being used to attract customers to the business (loss
STRATEGY leader pricing).
A product is only worth as much as people are
prepared to pay for it. The amount your target market
are prepared to pay for your products/services
depends on product features and the target market's
budget. You will also need to consider competitor
pricing and factors within your marketing environment.
 The price strategy in the Marketing Mix serves several
important objectives, including:
• Maximizing Profit: Setting a price that helps the company
1. Objectives of achieve its financial goals while maintaining customer
demand.
Price Strategy
• Positioning the Product: Establishing a perceived value or
brand image (luxury, affordable, etc.) through pricing.
• Market Penetration: Gaining a larger share of the market
by adjusting the price in line with customer demand and
competition.
• Survival: In some cases, particularly in competitive or
declining markets, businesses may adopt a pricing
strategy that helps them stay afloat.
• Customer Perception: Influencing how customers
perceive the value of the product in relation to its price.
 Several factors influence the price strategy a company will choose:
• Cost of Production: The price must cover the cost of producing
2. Factors and delivering the product, including raw materials, labor,
overheads, and marketing.
Influencing • Market Demand: The price may fluctuate based on consumer
Price Strategy demand, trends, or seasonal factors.
• Competition: Competitor pricing strategies play a major role in
determining price, especially in highly competitive industries.
• Brand Positioning: Premium brands can justify higher prices,
while low-cost brands must remain competitive.
• Economic Conditions: Broader economic factors like inflation,
recession, or changes in consumer spending power affect
pricing decisions.
• Regulations: In some industries, pricing may be subject to
government regulations (e.g., pharmaceuticals or utilities).
 Cost-based pricing involves setting a price based on the costs incurred to
produce and deliver the product, plus a markup for profit.
3. Types of  Key Concepts:
Pricing - Markup Pricing: The price is set by adding a certain percentage (markup)

Strategies to the cost of production.

 Example: A clothing manufacturer calculates the total cost of fabric,
3.1 Cost-Based Pricing labor, and overhead costs and then adds a 10% markup to determine
the selling price.
 Advantages:
 Simple and easy to calculate.
 Ensures that costs are covered and a consistent profit margin is
achieved.

 Disadvantages:
 Ignores customer willingness to pay.
 May not be competitive if the market is price-sensitive.
 Value-based pricing is determined by the perceived value of the product or
service to the customer, rather than the cost of production. In this strategy, the
company sets a price based on how much value the customer assigns to the
product.
3.2 Value-Based Pricing  Key Concepts:
- Customer Perception: Understanding the benefits customers get from the
product, which can justify a higher price.
- Premium Pricing: Setting a high price to create an image of high quality or
luxury.
 Example: Apple sets a higher price for its iPhones because customers
perceive the brand as offering superior quality, design, and user experience.
 Advantages:
- Aligns with customer expectations and willingness to pay.
- Allows for higher profit margins if the perceived value is strong.
 Disadvantages:
- Requires deep understanding of customer needs and market research.
- Difficult to implement if the product’s value is unclear or poorly
communicated.
 Penetration pricing involves setting a low initial price to attract customers and gain
market share quickly. The idea is to "penetrate" the market by offering a price lower
than competitors, with the expectation of raising the price once a solid customer base
is built.
3.3 Penetration Pricing  Key Concepts:
- Low Initial Price: To drive volume and attract customers.
- Market Share Growth: The focus is on increasing market share rather than maximizing
immediate profits.
- Price Increase: After customer loyalty is established, the company can gradually raise
the price.
 Example: Streaming services like Netflix and Spotify often use penetration pricing,
offering low subscription rates initially and gradually increasing prices as their
customer base grows.
 Advantages:
- Quickly builds a customer base.
- Can help establish brand recognition in a competitive market.
 Disadvantages:
- May hurt profit margins in the short term.
- Customers might resist price increases in the future, especially if they perceive the
product as "cheap."
  Price skimming involves setting a high initial price for a new product and
then gradually lowering it over time. This strategy is often used for innovative
or high-demand products that have little competition at launch.
3.4 Price Skimming  Key Concepts:
 High Initial Price: Taking advantage of early adopters who are willing to pay
more for new, unique products.
 Gradual Price Reduction: Lowering the price over time to attract more price-
sensitive customers.
 Example: Sony often uses price skimming for new technology products, such
as gaming consoles and TVs, launching at a premium price and lowering it
once competitors enter the market.
 Advantages:
 Maximizes revenue from early adopters.
 Helps recover development costs quickly.
 Disadvantages:
 Can limit market penetration if the price is too high.
 Price reductions may alienate early customers who paid more.
  Psychological pricing uses pricing techniques designed to influence customer
perception of the product’s price. It is based on the belief that certain prices appear
more attractive to consumers due to their psychological impact.
 Key Techniques:
3.5 Psychological Pricing
 Odd-Even Pricing: Setting prices just below a round number (e.g., $9.99 instead
of $10) to make the product appear cheaper.
 Price Anchoring: Displaying the original price next to a discounted price to show
customers the perceived savings (e.g., “Was $100, now $75”).
 Prestige Pricing: Setting higher prices to give the product a premium or luxury
perception.
 Example: Retailers like Walmart often use odd pricing, such as $19.95, to create
the impression of a lower price.
 Advantages:
 Easy to implement and effective in influencing consumer behavior.
 Can be used across various product categories.
 Disadvantages:
 Can be seen as manipulative if overused.
 May not work well in markets where customers are highly price-sensitive.
  Competitive pricing involves setting the price based on what competitors are
charging for similar products. This strategy can be used to ensure that a product
remains attractive relative to alternatives in the market.
3.6 Competitive Pricing  Key Concepts:
 Price Matching: Matching or slightly underpricing competitors to stay
competitive.
 Price Leader: Setting a price higher or lower than competitors to set a
perceived standard or value in the market.
 Example: Airlines like Ryanair often use competitive pricing strategies to stay
aligned with market prices for similar routes, adjusting based on competitor
offerings.
 Advantages:
- Helps maintain competitive positioning.
- Encourages market equilibrium.
 Disadvantages:
- May lead to price wars, hurting profits.
- Does not necessarily reflect product quality or customer value.
 The Place element of the Marketing Mix refers to how a
product or service is made available to consumers. Distribution
strategy focuses on the pathways that products take to reach
DISTRIBUTION customers and ensure they are available in the right location, at
the right time, and in the right quantities. A well-designed
STRATEGY IN distribution strategy is essential for delivering products to
THE MARKETING customers efficiently and effectively, creating customer
satisfaction and maximizing sales.
MIX (PLACE)
Distribution strategies are closely tied to the overall marketing
strategy and can influence brand positioning, customer
perceptions, and profitability. Companies must choose
distribution channels that align with their product, target
market, and business objectives.
  The primary objectives of a distribution strategy in the
Marketing Mix include:

1. Objectives of • Maximizing Availability: Ensuring that the product is available

to customers wherever they prefer to buy it, online or offline.
Distribution
Strategy • Creating Convenience: Making it easy for customers to access
and purchase the product.
• Minimizing Costs: Efficient distribution systems can reduce
transportation, warehousing, and other logistics costs.
• Building Customer Loyalty: Offering distribution options that
enhance the customer experience can strengthen brand
loyalty.
• Increasing Reach: Expanding distribution to new markets or
customer segments to drive growth.
 Intensive distribution is a strategy where a company aims to
make its product available in as many locations as possible. This is
commonly used for products with high consumer demand, low
2. Types of price points, and frequent purchases.
Distribution  Key Concepts:
Strategies
• Wide Availability: The product is distributed through as many
2.1 Intensive channels and locations as possible (e.g., supermarkets,
convenience stores, online platforms).
Distribution
• Consumer Convenience: The goal is to make the product
highly accessible to the broadest consumer base.
• Mass Appeal Products: Often used for everyday items like
snacks, beverages, toiletries, or household goods.
 Example: Coca-Cola uses intensive distribution, ensuring its
beverages are available in almost every retail outlet globally.
 Advantages:

• Maximizes product availability and customer reach.

• Increases impulse purchases due to easy access.
• Enhances brand visibility.
 Disadvantages:

• Can lead to high distribution costs.

• Less control over how the product is sold or represented
in different outlets.
 Selective distribution involves using a limited number of carefully
chosen outlets to distribute a product. This strategy is typically used
for products that require a bit more effort to purchase, such as mid-
range or specialty products, and is often applied when a company
2.2 Selective Distribution wants to maintain control over how the product is sold.
 Key Concepts:

• Targeted Distribution: The product is sold through selected retailers

or outlets that align with the brand’s positioning.
• Brand Image Control: Fewer outlets allow the company to maintain
a higher level of control over the product’s presentation and selling
conditions.
• Specialty Products: Ideal for products that are more expensive or
require a knowledgeable sales staff (e.g., electronics, high-end
fashion).
 Example: Apple selectively distributes its products through its own
Apple Stores, online store, and authorized retailers like Best Buy.
 Advantages:

• Better control over pricing, presentation, and customer

service.
• Higher brand positioning due to exclusive retail
partnerships.
• Reduces distribution costs compared to intensive
distribution.
 Disadvantages:

• Limits market reach and availability.

• May reduce the potential for high-volume sales in
locations where the product isn't available.
 Exclusive distribution is a highly selective strategy where the
company gives one or a few retailers exclusive rights to sell its
product in a particular geographic area. This strategy is often used
2.3 Exclusive for luxury, high-end, or niche products.
Distribution  Key Concepts:

• Exclusive Rights: A single distributor or a very limited number

of outlets are given the exclusive rights to distribute the
product.
• Prestige and Control: This approach is often used for premium
or luxury products, where the brand wants to control how the
product is sold and maintain a high-end image.
• Specialized Retailers: The product is typically only available in
exclusive, high-end, or specialty stores.
 Example: Ferrari uses exclusive distribution by only allowing
select dealerships to sell its cars, creating a sense of rarity and
luxury.
 Advantages:

• Strong control over how the product is marketed

and sold.
• Enhances the brand’s image and perception of
exclusivity.
• Retailers may provide more personalized customer
service.
 Disadvantages:

• Limited customer reach due to fewer retail locations.

• Higher retail costs due to lower volume sales.
 Several factors must be considered when designing a distribution
strategy:
• Product Characteristics: The type of product (perishable, luxury,
3. Factors Affecting high-demand, etc.) will determine the appropriate distribution
channels.
Distribution • Target Market: Understanding where and how customers want to
Strategy purchase the product is critical in choosing the right distribution
strategy (e.g., online shopping vs. physical stores).
• Costs and Budgets: Distribution channels can vary significantly in
cost, so businesses must assess which options fit their budget while
meeting customer demands.
• Market Coverage: Deciding whether to serve a mass market
(intensive distribution) or a select, niche market (exclusive
distribution).
• Competitive Landscape: The strategies and distribution channels
used by competitors can influence a company’s decision.
• Technology: Advances in e-commerce and digital platforms offer
new opportunities for direct-to-consumer distribution models.
 To evaluate whether the distribution strategy is successful,
businesses should monitor the following metrics:
4. Measuring • Sales Performance: How well the product is selling
Distribution across various channels.
Effectiveness • Market Reach: The geographic and demographic reach
of the product.
• Customer Satisfaction: Customer feedback on the
convenience, availability, and delivery of the product.
• Costs and Profits: Comparing distribution costs with
revenue to ensure profitability.
• Channel Effectiveness: Which distribution channels are
performing best in terms of sales volume and customer
engagement.
 The Promotion element of the Marketing Mix focuses on how a

PROMOTION company communicates its product offerings to potential

customers. An effective promotional strategy is essential for
STRATEGY increasing brand awareness, driving sales, and fostering customer
loyalty. In the 4Ps framework (Product, Price, Place, and
Promotion), Promotion plays a crucial role in bridging the gap
between the company and its target market.
 The primary objectives of a promotional strategy in the Marketing
Mix include:
 Informing customers about the product or service, especially
1. Objectives of during the introduction phase of the product lifecycle.

Promotion  Persuading customers to purchase the product by emphasizing its

benefits, features, or unique selling points.

 Reminding customers about the product to reinforce their buying

behavior, especially in the maturity phase.

 Creating Brand Awareness to establish and maintain the brand in

the minds of consumers.

 Encouraging Action through limited-time offers, discounts, or

calls to action.
 Advertising involves paid, non-personal communication through various
media channels to promote a product, service, or brand. Advertising aims

2. Types of to inform, persuade, and remind consumers about the product's value.
 Key Channels:

Promotional  Traditional Media: TV, radio, print (newspapers, magazines).

Strategies  Digital Media: Social media, search engine marketing (Google Ads),
online display ads, YouTube.
2.1 Advertising  Outdoor: Billboards, posters, transit ads.

 Example: Coca-Cola uses mass media advertising (TV, online,

outdoor) to maintain global brand awareness and drive consumption.

 Strategies:
 Targeted advertising based on demographics, location, and consumer
behavior.
 Cross-channel campaigns (integrating TV, online, print, etc.) to
maximize reach.
 Sales promotions are short-term incentives designed to encourage immediate
action from consumers, such as purchases or engagement with the brand.
 Types of Sales Promotions:

2.2 Sales Promotion  Discounts and Coupons: Offering price reductions to encourage immediate
purchases.
 Contests and Sweepstakes: Engaging customers by offering them a chance to
win prizes.
 Free Samples: Giving customers the opportunity to try a product before
buying.
 Buy-One-Get-One (BOGO): Encouraging customers to buy more by offering a
free item with a purchase.
 Example: McDonald's runs limited-time offers like free fries with a purchase to
encourage impulse buys and repeat customers.
 Strategies:
 Seasonal promotions: Tying promotions to holidays or events (e.g., Black
Friday, Christmas sales).

 Bundling: Offering discounts when purchasing multiple products together.

  Public relations involves managing and influencing public perception of the
company, its products, and its brand. The aim is to maintain a positive image
through media relations, press releases, events, and community involvement.
 PR Tools:
2.3 Public Relations
 Press Releases: Announcements about new product launches, events, or
(PR)
corporate social responsibility activities.

 Events and Sponsorships: Hosting or sponsoring events to increase brand

visibility.

 Crisis Communication: Managing communication during negative publicity or

crises.

 Example: Tesla uses PR strategies to manage its reputation and highlight its
innovations, using media coverage and events rather than traditional
advertising.
 Strategies:
 Storytelling: Sharing the brand’s story to create an emotional connection with
consumers.

 Influencer Partnerships: Collaborating with influencers to spread brand

 Personal selling involves direct interaction between a sales representative and a
potential customer. This is often used in high-involvement products or services
where personal attention and relationship-building are crucial.
 Methods:
2.4 Personal Selling
 Sales Calls: Reaching out directly to prospective clients.
 Trade Shows: Engaging with potential customers in person at industry events.
 Product Demonstrations: Showing the benefits and features of the product in
real-time.

 Example: Luxury car brands like Mercedes-Benz use personal selling techniques
in showrooms where sales representatives offer personalized service and
product demonstrations.
 Strategies:
Consultative Selling: Understanding customer needs and offering solutions tailored
to them.
Relationship Marketing: Building long-term relationships with customers to
encourage repeat business.
 Digital marketing is a broad category that covers any promotional activities
done via the internet. Social media promotion specifically focuses on using
platforms like Facebook, Instagram, Twitter, LinkedIn, TikTok, etc., to reach
2.5 Digital Marketing
and engage the target audience.
and Social Media
Promotion  Methods:
• Social Media Advertising: Sponsored posts, stories, and targeted ads on
platforms like Facebook, Instagram, or Twitter.
• Influencer Marketing: Collaborating with influencers to promote
products to their followers.
• Content Marketing: Creating engaging content (e.g., blog posts, videos)
to build brand authority and encourage customer engagement.

 Strategies:
• Engagement: Focusing on building relationships with consumers through
interactive content and personalized responses.
• Paid Ads and Retargeting: Running highly targeted ads based on user
behavior and interests.
 Firms need to carefully consider the message that their
promotion strategy will be conveying to their target
audience. What message will promotion activity send to
Message Strategy - the target audience and how will it impact on the firm's
reputation?
What Message Will
The Promotion The promotion's message should reinforce product
benefits and help the firm to develop a positioning
Conveying? strategy for their products.
Apples message strategy reinforces the quality that they
are trying to create about their brand.
Mcdonalds message strategy is about the convenience of
their products and the value they offer.
  Media strategy refers to how the organisation is going
to deliver its message. What aspects of the
Media Strategy promotional mix will the company use to implement
And How Will their media strategy. Where will they promote it?
Promotion Help Clearly the company must take into account the
readership and general behaviour of their target
Deliver The audience before they select their media strategy. What
Message newspapers do their target market read? What TV
programmes do they watch? Targeting through
effective media campaigns could save the company
valuable financial resources. Amazon is a good example
of an organisation that uses a varied promotional mix,
which includes, TV, online and print. Amazons media
strategy reflects the diversity of their customers.
 As products move through the four stages of the product
life cycle different promotional strategies should be
Promotion employed at these stages to ensure the healthy success
Through The and life of the product.

Product Life
Cycle
 Promotion strategies that can be employed at each stage of the
Product Life Cycle are as follows:

 Introduction

 When a product is new the organisation's objective will be to

inform the target audience of its entry. Television, radio,
magazine, coupons etc may be used to push the product
through the introduction stage of the life cycle. Push and Pull
Strategies will be used at this crucial stage.

 Growth

 As the product becomes accepted by the target market (at this

stage of the life cycle) the organisation will employ strategy to
increase brand awareness and customer loyalty.
 Maturity

 At this stage of the life cycle, the product will be

experiencing increased competition and will need
persuasive tactics to encourage consumers to choose
their product over their rivals. Any differential
advantage/benefit will be need to be clearly
communicated to the target audience.

 Decline

 As the product reaches the decline stage of its life cycle,

all the organisation can do is use strategy to remind
consumers about the product in a bid to slow the
inevitable.
  Selecting the right promotional strategy depends on
several factors, such as:

Choosing the • Target Market: Who are the customers, and where
are they most likely to engage (e.g., social media, in-
Right Promotional store, online)?
Strategy • Product Type: High-involvement or low-
involvement? Is it a new product or an established
one?
• Budget: How much money is available for
promotion, and which methods will provide the best
ROI?
• Business Goals: Are you looking to increase brand
awareness, drive sales, or build customer loyalty?
THE EXTENDED In addition to the original 4Ps of the Marketing Mix (Product,
MARKETING Price, Place, Promotion), the Extended Marketing Mix
includes three additional Ps: People, Process, and Physical
MIX: THE 7PS Evidence. These additional elements are particularly
important in service-based industries, but they also apply in
product-focused industries, especially when it comes to
customer experience and operational efficiency.
 The "People" element refers to everyone involved in the delivery of the product
or service, including employees, customers, and other stakeholders. It also
focuses on how employees interact with customers, which can significantly
impact customer satisfaction and brand perception.
1. People  Key Concepts:

(Customer  Customer Service: High-quality service interactions are crucial for creating
positive customer experiences.
Interaction)  Employee Training: Well-trained employees are critical to ensuring that
customers receive knowledgeable, efficient, and friendly service.
 Customer Interaction: The ways in which employees and customers interact
can influence customer loyalty, repeat business, and overall satisfaction.
 Advantages:
 Positive interactions with well-trained staff can build strong customer loyalty.
 Employees who understand the brand promise help deliver a consistent and
personalized customer experience.
 Disadvantages:
 Poorly trained or unmotivated staff can lead to negative customer
experiences.
 Managing people across multiple locations or touchpoints can be challenging.
 The "Process" refers to the systems, procedures, and mechanisms
used to deliver the product or service to customers. In service
2. Process industries, efficient and seamless processes are especially important,
as they directly affect the customer experience. For products, it also
(Service refers to the processes involved in the development, manufacturing,

Delivery) and distribution stages.

 Key Concepts:
o Efficiency: Streamlined processes help reduce costs and improve
service delivery times.
o Consistency: A well-defined process ensures that customers receive
the same level of quality and experience every time they engage
with the product or service.
o Customer Journey: The steps a customer takes from the first point
of contact to the final purchase (and beyond) are a key part of
process design. This includes online ordering, delivery, after-sales
service, etc.
o Automation: Incorporating technology to speed up and automate
processes can improve efficiency and reduce human error.
 Advantages:
o A smooth, efficient process leads to higher customer
satisfaction and repeat business.
o Standardized processes ensure that all customers
receive the same high level of service, regardless of
the location or time.
 Disadvantages:
o Over-standardization can make the experience feel
impersonal or less adaptable to individual customer
needs.
o Constantly evolving processes may require
significant investment in technology or training.
 Physical Evidence refers to the tangible elements that help customers
evaluate and experience a product or service, especially in the case
of services, where the product itself is intangible.
3. Physical Evidence  Key Concepts:
(Tangibility of  Physical Environment: The physical setting in which the service
Service) is delivered, such as a retail store, office, or hotel lobby, plays a
role in shaping customer perceptions.
 Branding: Visual elements like logos, colors, and product design
help make the intangible aspects of the brand more tangible for
customers.
 Online Presence: For businesses offering services or products
online, the quality of the website, app, or social media presence
provides physical evidence of the brand’s professionalism.
 Packaging: For products, packaging can be a key piece of
physical evidence, as it represents the brand and product
experience before the customer even opens it.
 Advantages:
 High-quality physical evidence can enhance the brand
image and attract customers.
 Tangible elements of the service or product offer
reassurance to customers, especially in uncertain or
unfamiliar purchases.
 Disadvantages:
 Poor physical evidence (e.g., outdated stores, low-
quality packaging) can negatively affect brand
perception.
 High costs for maintaining and improving physical
evidence elements (like upgrading a store or
enhancing a website).
 The additional 3Ps—People, Process, and Physical Evidence—are
essential for:
Why the 3  Enhancing Customer Experience: These Ps focus on ensuring that
Additional Ps every customer touchpoint (from interaction with employees to
the final delivery of the service or product) is optimized to meet
Matter ? customer expectations and needs.
 Service-Based Industries: These three elements are particularly
crucial for services because services are intangible, and customers
often rely on tangibles (like the physical environment, process
flow, and employee behavior) to make decisions about service
quality.
 Differentiation and Branding: Companies that excel in managing
the 3Ps can create a unique, memorable brand experience that
differentiates them from competitors.
 Operational Efficiency: Efficient processes and well-trained
people can improve productivity, reduce costs, and ensure
consistent quality, which is essential for maintaining customer
satisfaction.
Competitive and Global
Marketing Strategies
 In this section, we focus on Michael Porter's Competitive
1. Different Strategies, which provide a framework for how companies can
outperform their competitors.
Types of  1.1 Cost Leadership Strategy
Competitive  Definition: The company aims to be the lowest cost producer in
Strategies its industry.
 Goal: Achieve a competitive advantage by having the ability to
offer lower prices than competitors while maintaining profitability.
 Advantages:
 Larger profit margins.
 Ability to compete on price, attracting price-sensitive customers.
 Higher market share due to affordability.
 Examples: Walmart, Ryanair, and McDonald's (on the cost side for
standard items).
 1.2 Differentiation Strategy
 Definition: The company offers unique products or
services that are perceived by customers as distinct and
superior.
 Goal: Create a unique value proposition that customers
are willing to pay a premium for.
 Advantages:

• Reduced price sensitivity due to the uniqueness of the

product.
• Higher customer loyalty.
• Strong brand recognition.
• Examples: Apple, Tesla, Rolex (luxury brands), Starbucks.
 1.3 Focus Strategy
 Definition: The company targets a specific segment or niche
market, either through cost leadership or differentiation.
 Goal: Serve a specific group of customers better than
competitors who target a broader market.
 Advantages:

• Deep understanding of niche markets.

• Ability to tailor products/services more precisely.
 Examples:
 Focused cost leadership: Ryanair (budget travel for specific
routes).
 Focused differentiation: Rolex (luxury watches for affluent
consumers).
 As companies look to expand beyond their home markets,
they must decide how to position themselves globally. There
2. Global are several strategies for operating in international markets.

Marketing 2.1 Standardization Strategy

Strategies  Definition: The company offers a uniform product and

marketing approach across all international markets.
 Goal: Maximize efficiency and economies of scale by
standardizing products and marketing efforts.
 Advantages:
 Economies of scale.
 Consistent brand image worldwide.
 Lower marketing costs.
 Examples: Coca-Cola (same product in most markets)
2.2 Adaptation Strategy
 Definition: The company adapts its products and
marketing strategies to meet the specific needs and
preferences of each local market.
 Goal: Customize products to increase their appeal in
each market, respecting cultural, legal, and economic
differences.
 Advantages:

• Greater customer acceptance and satisfaction.

• Competitive advantage in local markets.
 Examples: McDonald's adapting menus to local tastes
(Curry flavor in India, Halal food in Muslim-majority
regions).
2.3 Transnational Strategy
 Definition: This strategy combines elements of both
standardization and adaptation. The company aims to
achieve global efficiencies while being responsive to
local market needs.
 Goal: Leverage global resources and capabilities while
adapting products and marketing to local needs.
 Advantages:

• Ability to operate globally while maintaining local

relevance.
• Flexibility to adjust to local market conditions.
 Examples: Unilever, Nestlé (they adapt products to
local markets but maintain global brand identity).
 When choosing a competitive and global marketing strategy,
several factors need to be considered. These include:
3. Factors 3.1 SWOT Analysis
Influencing  Definition: A strategic tool used to analyze the company's
Competitive and internal strengths and weaknesses, and external
opportunities and threats.
Global Strategies
 Application: Helps identify the best strategies based on
the company’s position in the market.
 Strengths: Unique capabilities or resources.
 Weaknesses: Limitations that hinder performance.
 Opportunities: External factors that could be leveraged
for growth.
 Threats: External challenges or risks.
3.2 Cost Structure
 Definition: A company with a low-cost structure may be
better suited for cost leadership, while companies with
premium products may focus on differentiation.
 Example:

• Zara focuses on cost leadership with its fast-fashion

model.
• Tesla focuses on differentiation through premium
electric vehicles.
3.3 Competitive Environment
 Global vs. Local Competition: Companies must assess the
level of competition in the domestic and international
markets.

 Example: In global markets, companies must consider

international competitors, not just domestic players.
 3.4 Cultural and Consumer Preferences
 Definition: Understanding local culture, tastes, and
buying behaviors is crucial for crafting the right marketing
strategy.

 Example: KFC in China focuses on a localized menu, while

in the U.S. it emphasizes its fried chicken offering.

 3.5 Technological Advancements

 Definition: The role of technology in improving marketing
strategies and creating innovative products.

 Example: Amazon using advanced data analytics to

personalize offers and optimize its pricing strategy.
 4. Practical Examples and Case Studies
 Apple
 • Competitive Strategy: Apple employs a
differentiation strategy, positioning itself as a
premium product with innovative technology and
design.
 • Global Strategy: Apple uses a combination of
standardization (same product globally) and localized
marketing to appeal to local tastes and preferences.
Merci
DES QUESTIONS ?