Strategic Marketing: Growth, Segmentation & Branding
Growth-Share Matrix
Cash Cows
Low Growth, High Share: Companies should capitalize on these established products to generate revenue for reinvestment.
Stars
High Growth, High Share: Invest significantly in these high-potential products to maximize future returns.
Problem Children
High Growth, Low Share: Strategically invest in or divest these products based on their potential to become stars.
Dogs
Low Growth, Low Share: Liquidate or reposition these underperforming products.
Marketing Planning
Pros: Increased employee motivation and confidence.
Cons: Potential resource expenditure in terms of time, expertise, and finances.
Market Leadership
- Increased sales revenue and profits through economies of scale.
- Strong brand loyalty and premium pricing opportunities.
- Influence over industry trends.
- High brand recognition.
- Attraction of top-tier partners.
- First-mover advantage in new markets.
Product vs. Market Orientation
Product-Oriented
Pros: Competitive advantage through unique product development.
Cons: Risk and cost associated with R&D without considering consumer needs.
Market-Oriented
Pros: Reduced risk of failure through market research.
Cons: Challenges in adapting to changing consumer preferences and meeting diverse needs with available resources.
Market Segmentation
Geographic Segmentation
Dividing consumers based on location (region, climate, urban/rural).
Recognizes that consumer needs may vary geographically, although globalization has led to some convergence of tastes.
Socio-Economic Segmentation
Dividing consumers based on income, profession, and education level.
Demographic Segmentation
Dividing consumers based on statistical characteristics (age, gender, religion, ethnicity, family characteristics).
Psychographic/Behavioral Segmentation
Dividing consumers based on personal values, lifestyle choices, and consumer behavior.
Targeting Strategies
Mass/Undifferentiated Marketing
Targeting the entire market with a single marketing mix, focusing on common consumer characteristics.
Segmented/Differentiated Marketing
Targeting multiple market segments with tailored marketing mixes for each.
Niche/Concentrated Marketing
Focusing on small, specific market segments, often a suitable strategy for smaller firms with limited resources.
Unique Selling Proposition (USP)
A differentiating product feature that sets it apart from competitors and explains consumer preference.
Importance of USP
- Establishes competitive advantage and attracts customers.
- Increases revenue and potential for premium pricing.
- Fosters customer loyalty.
- Simplifies the sales process.
Branding
Why Branding is Vital:
- Creates a unique brand identity and product differentiation.
- Builds trust in the organization and its products.
- Cultivates customer loyalty and repeat business.
- Adds emotional value for customers.
- Enables premium pricing.