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Marketing Strategy [chp 2]

Marketing Strategy [chp 2] - Marketing Strategy Marketing...

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Marketing Strategy Marketing Strategy o Identifies a firm’s target market(s), a related marketing mix, and the bases upon which the firm plans to build a sustainable competitive advantage Sustainable Competitive Advantage o An advantage not easily copied therefore can be maintained over a long period of time o Something the firm can persistently do better than its competitors o Implementing an element of the marketing mix better than competition doesn’t mean firm is sustainable o Competitive advantage means firm builds wall around its position in market and the higher the wall the harder it is for outside competitors to enter market and compete for firm’s target customers High, thick walls allow firms to sustain advantage, minimize competitive pressure and boost profits for a longer time Wall makes it hard for outside competitors to contact customers inside Customers inside=marketers target market o Establishing this advantage is key to positive long-term financial performance o Attributes such as formula and image can provide firms with long-term advantage Customer Excellence o Macro strategy for developing customer value that focuses on retaining loyal customers and providing excellent customer service o Loyal customer base can be solidified by having a strong brand, unique merchandise, and superior customer service o Loyalty means customers are reluctant to patronize competitive firms regardless if they offer more convenient locations, provide slightly superior assortment or lower prices o Customer retention programs view customers with a lifetime value perspective rather than on a transaction-by-transaction basis o A way marketers achieve customer loyalty is by creating an emotional attachment through loyalty programs Firms can identify members through the loyalty card or membership info the consumer provides when making purchase Purchase info can be used by analysts to determine which types of merchandise certain groups of customers are buying and thereby can tailor offering to better meet needs of their loyal customers Firms can implement special retention programs to keep loyal customers o Offering excellent and consistent customer service is important for building loyalty Employees who interact with customers in providing services are particularly important Operational Excellence o Marketers ensure good value, earn profitability for themselves and satisfy customers’ needs when they get their customers the merchandise they want, when
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