2. Design a customer value-driven marketing strategy
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, marketing management: art and science of choosing target markets and
building profitable relationships with them. aim to engage, keep, grow target
customers by creating, delivering and communicating superior customer
value
1. SELECT CUSTOMERS TO SERVE (TARGET MARKET): dividing the market into
segments of customers and selecting which segments it will go after (target
marketing). select only customers it can serve well and profitably
2. HOW CAN WE BEST SERVE THESE CUSTOMERS (VALUE PROPOSITION):
how it will differentiate and position itself in the marketplace. value
proposition: set of benefits or values it promises to deliver to customers to
satisfy their needs. differentiate one brand from another, must design strong
value propositions that give them the greatest advantage in their target
markets.
portfolio analysis
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management evaluates the products and businesses that make up the
company. put strong resources into its more profitable businesses and phase
down/drop weaker ones
strategic business units (SBUs): identify the key businesses that make up the
company
marketing management: production concept
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, consumers will favor products that are available and highly affordable. focus
on improving production and distribution efficiency
Boston Consulting Group (BCG) approach
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growth share matrix: market growth rate on vertical axis provides measure of
market attractiveness. relative market share on horizontal axis measures
company strength in the market
STARS: high growth, high share businesses or products. need heavy
investments for rapid growth --> cash cows
CASH COWS: low growth, high share businesses/products. established and
successful, need less investment to hold market share
QUESTION MARKS: low share business units in high growth markets. require a
lot of cash to hold their share/increase it
DOGS: low growth low share businesses/products. maintain but are not large
sources of cash
segmentation
Give this one a try later!
Give this one a try later!
, marketing management: art and science of choosing target markets and
building profitable relationships with them. aim to engage, keep, grow target
customers by creating, delivering and communicating superior customer
value
1. SELECT CUSTOMERS TO SERVE (TARGET MARKET): dividing the market into
segments of customers and selecting which segments it will go after (target
marketing). select only customers it can serve well and profitably
2. HOW CAN WE BEST SERVE THESE CUSTOMERS (VALUE PROPOSITION):
how it will differentiate and position itself in the marketplace. value
proposition: set of benefits or values it promises to deliver to customers to
satisfy their needs. differentiate one brand from another, must design strong
value propositions that give them the greatest advantage in their target
markets.
portfolio analysis
Give this one a try later!
management evaluates the products and businesses that make up the
company. put strong resources into its more profitable businesses and phase
down/drop weaker ones
strategic business units (SBUs): identify the key businesses that make up the
company
marketing management: production concept
Give this one a try later!
, consumers will favor products that are available and highly affordable. focus
on improving production and distribution efficiency
Boston Consulting Group (BCG) approach
Give this one a try later!
growth share matrix: market growth rate on vertical axis provides measure of
market attractiveness. relative market share on horizontal axis measures
company strength in the market
STARS: high growth, high share businesses or products. need heavy
investments for rapid growth --> cash cows
CASH COWS: low growth, high share businesses/products. established and
successful, need less investment to hold market share
QUESTION MARKS: low share business units in high growth markets. require a
lot of cash to hold their share/increase it
DOGS: low growth low share businesses/products. maintain but are not large
sources of cash
segmentation
Give this one a try later!
