DEVELOPING

MARKETING
STRATEGIES
Marketing concept
 
• The marketing concept helps a business focus its efforts on satisfying
customer needs in such a way as to make a satisfactory profit. The
concept comprises three basic elements: a customer orientation, a
goal orientation, and use of the systems approach.
• 
• The marketing concept involves giving special consideration to the
needs, desires, and wishes of present and prospective customers.
IMPLEMENTING THE MARKETING CONCEPT
Be Conscious of Image

You should evaluate the business frequently to see

what kind of image it projects—from the
customers’ point of view. You should ask: Can my
customers find what they want, when they want
it, and where they want it, at a competitive price?
Practice Consumerism The major concerns of the consumer movement during the last three
decades have been the rights of consumers to buy safe products, to be informed, to be able to
choose, and to be heard.
 
Consumerism involves prodding businesses to improve the quality of their products and to
expand consumer knowledge.
Look for Danger Signals

There are many danger signals that can indicate when the marketing
concept is not being followed. Your business is in trouble if, over time, it
exhibits one or more of the signs listed
Meeting Customers’ Needs
- Your understanding of customers’ needs starts with the realization that when people buy
something, they purchase satisfaction as well as goods or services. Consumers do not simply
choose a toothpaste, for example. Instead, some want a decay preventive, some seek pleasant
taste, others desire tooth brighteners, and still others will accept any formula at a bargain price.
Thus, understanding customers’ needs means being aware of the timing of the purchase, what
customers like and dislike, or what “turns them on.”
 
- The marketing concept should guide the attitudes of the firm’s salespeople, who should be
encouraged to build personal 32 customers.
Small firms should add something extra in the way of customer service. Customers want a
business to be helpful, and outstanding service will often generate good word-of mouth
advertising.
 
- Keeping customers satisfied is more difficult than it seems, because it involves all aspects of the
business. Customer satisfaction involves not just employees and customers but other factors as
well, such as store design and upkeep, method of employee payment, and methods for providing
feedback to and from customers.
 
ways to create added value for customers
Always consider your customers’ perspective
The art of creating added value starts with the ability to see your business through the eyes of your customers.
Consider what’s important to your target market and how your product or service will benefit them. What
problem does it solve, how will it help them overcome obstacles or do their jobs better?
Consistently work to improve customer satisfaction
Although the debate over whether the customer is always right
(or not!) continues, lack of customer satisfaction is a sure-fire
way to keep people from coming back. Soliciting honest feedback
through surveys on a regular basis allows you to keep your finger
on the pulse of your customers’ needs in their journey with your
business and is also an opportunity to monitor your brand’s
identity in the marketplace.
Implement marketing models into your strategy
As you’re searching for ways to create added value, the use of
popular marketing models can help your strategy take shape.
Develop a memorable customer experience
Businesses with unforgettable customer experiences are more likely to benefit
from word-of-mouth referrals, positive online reviews, and higher retention
rates. When getting started, you’ll need to consider all touch points of your
business, from initial lead capture to post-purchase communication and how
to properly maximize the added value for the customer throughout the
process.
Never underestimate the value of free resources

Whether it’s a free guide, a printable PDF, or a company branded

calendar, free resources are a great way to create added value and
showcase your brand’s ability to offer ‘a little something extra’ to
customers. Free resources can also serve as useful tools to help grow a
small business’s brand awareness and expose your target market to
various products and services.
WAYS TO BUILD CUSTOMER RELATIONSHIPS
Build your network--it's your sales lifeline. 
Your network includes business colleagues, professional acquaintances,
prospective and existing customers, partners, suppliers, contractors and
association members, as well as family, friends and people you meet at school and
in your community.
Communication is a contact sport, so do it early and often. 
Relationships have a short shelf life. No matter how charming,
enthusiastic or persuasive you are, no one will likely remember you
from a business card or a one-time meeting.
E-mail marketing keeps relationships strong on a shoestring
budget. 
Build your reputation as an expert by giving away some free insight.
You have interesting things to say! An easy way to communicate is
with a brief e-mail newsletter
Reward loyal customers, and they'll reward you. 
According to global management consulting firm Bain
and Co., a 5 percent increase in retention yields profit
increases of 25 to 100 percent. And on average, repeat
customers spend 67 percent more than new
customers. So your most profitable customers are
repeat customers.
Loyal customers are your best salespeople. 
So spend the time to build your network and do the follow-up.
Today there are cost effective tools, like e-mail marketing, that
make this easy.
Types of Customer Segmentation with Examples
Target market
is the part of the total market toward which promotional efforts are
concentrated.
 
Market segmentation
is identifying and evaluating various layers of a market.
 
Geographic segmentation is the practice of segmenting a campaign’s
target audience based on where they are located. Segments can be as broad
as a country or a region, or as narrow as one street of homes in a town.

For example, Home Depot may target US northeastern states when

advertising a sale on snow shovels. Presenting this ad to Floridians, for
instance, would be irrelevant, unnecessary, and could even desensitize the
audience to future advertisements.
Demographic
is segmenting the market based on certain characteristics of the audience.
Characteristics often include, but are certainly not limited to: race, ethnicity, age,
gender, religious, education, income, marital status, and occupation.

For example, Luxury brands may choose to market to a demographic consisting of

people with household income > $200,000. Colleges may use messaging in their
advertising that appeals to 17-22 year olds.
Psychographic
Psychographic segmentation is far less concrete than both geographic and demographic
customer segmentation, as the characteristics used to segment are less “tangible” than the
latter two. Psychographic segmentation divides the market on principles such as lifestyle,
values, social class, and personality.
 
For example of psychographic segmentation is targeting those who are budget conscious.
These people value a good deal and tend to be smart shoppers. Target ads to this segment by
appealing to their intrinsic budget-savvy personality.
Behavioral segmentation is similar to psychographic segmentation on the basis 
that it is less concrete than demographic or geographic segmentation. Behavioral
segmentation is the practice of dividing consumers into groups according to any of the
following attributes: usage, loyalties, awareness, occasions, knowledge, liking, and
.purchase patterns
 
For example When segmenting based on occasions, companies can target consumers
who are less price sensitive during times like graduation season and the holiday season.
Behavioral segmentation allows marketers to be more relevant and produce messaging
that will resonate well with their desired target market.
Marketing Mix
 
A marketing mix is the proper blending of the basic elements of product,
price, promotion, and place into an integrated marketing program.
THE PRODUCT LIFE CYCLE

The product life cycle has four major stages: introduction, growth,
maturity, and decline.
Introduction Stage
The introduction stage begins when a product first appears on the
market. Prices are usually high, sales are low, and profits are
negative because of high development, promotion, and
distribution costs.
Growth Stage
During the growth stage, sales rise rapidly and profits peak. As
competitors enter the market, they attempt to develop the best
product design.
Maturity Stage
Competition becomes more aggressive during the maturity stage,
with declining prices and profits. Promotion costs climb;
competitors cut prices to attract business; new firms enter, further
increasing competition; and weaker competitors are squeezed
out.
Decline Stage
Sales fall rapidly during the decline stage, especially if a new
technology or a social trend is involved.
Promoting and Distributing
Advertising
informs customers of the availability, desirability, and uses of products. It also tries
to convince customers that the products are superior to those of competitors.
Advertising is paid for by the marketer, who also controls the content, appearance,
and/or sound of the message. The advertiser also has considerable authority over
when, where, and how often advertising messages reach the target market.
Setting the Budget
Advertising costs should be controlled by an advertising budget. The most
popular bases for establishing such a budget are
(1) a percentage of sales or profits
(2) units of sales,
(3) objective (task), and
(4) executive decision. With the percentage of sales or profits method,
advertising costs have a consistent relationship to the firm’s sales volume
and/or profit level.
Thus, as sales/profits go up/ down, advertising expenditures go up/down by
the same percentage. One disadvantage of using this method is that
advertising may be needed most when sales and profits fall.
Different Ways to Advertise Products and
Services
Purchased Online Ads
Posting ads on websites that receive heavy traffic is one way to
get the word out about your business. Social networking sites
such as Facebook have advertising programs that allow
advertisers to target very specific demographics. These ads show
up only next to profiles that meet the specifications of your
product's target market. 
Social Media Marketing
Social media platforms are an attractive marketing tool for new businesses,
because promoting yourself there has little or no monetary cost. 
Newspaper Ads
A traditional form of advertising, daily and weekly
newspaper ads allow you to target specific geographic
neighborhoods.
Radio Advertising
A catchy jingle and quick tag line can enhance a radio ad's effectiveness.
Matching the station, you choose with your target demographic is key.
Television Advertising
Television ads on local stations might require time and effort to produce,
but can be especially effective if you sell a product or service with a high
price point.
Public Speaking
If the product you sell relates to your own expertise,
public speaking can be a great advertisement. 
Door Hangers and Flyers
Canvassing the neighborhood, placing flyers in mailboxes or hanging ads on
doorknobs, is a good way to target a specific area and to make sure your
potential customers have seen your information. 
Event Sponsorship
Advertising your product or service through event sponsorship can take many
forms.
 
Merchandising, Sales Promotion, and Publicity
Merchandising
Merchandising is promoting the sale of a product at the point of purchase.
In other words, is the promotional effort made for a product in retailing
firms, especially at the point of purchase. It is the way the product is
presented to customers, including window displays, store banners, product
label and packaging, and product demonstrations.
Sales promotion
Includes marketing activities (other than advertising and personal selling) that stimulate
consumer purchasing and dealer effectiveness. or activities that try to make other sales
efforts (such as advertising) more effective, includes consumer promotions, trade
promotions, and sales force promotions.
Consumer promotions use coupons, discounts, contests, trading stamps, samples,
rebates, and so forth. Rebates appeal to many manufacturers because few consumers
actually redeem them, but they can also provide a competitive edge for retailers.
Trade promotions include advertising specialties, free goods, buying allowances,
merchandise allowances, cooperative advertising, and free items given as premiums.
Sales force promotions consist of benefits such as contests, bonuses, extra commissions,
and sales rallies that encourage salespeople to increase their selling effectiveness.
Publicity
is information about a business that is published or broadcast without
charge. can be considered free advertising. When your product, your
business, or you as the owner become newsworthy, publicity may
enhance sales.
ESSENTIAL BUSINESS METRICS FOR GROWING
BUSINESSES
Sales Revenue
Why it’s Important
How much you are earning from sales is one of the most obvious
and easiest to measure KPIs (key performance indicators). An
increase in sales revenue can be an indication that customers are
interested in purchasing your products and that your marketing
efforts have been effective.
Gross Margin
Why it’s Important
The gross margin is a percentage that represents how much of every
dollar of revenue that company is able to retain and potentially invest
back into the company to further enhance growth.
Cost of Customer Acquisition
Why it’s Important
The cost of customer acquisition tells you how much money you spend on
acquiring new customers This is an important number to be aware of because
it is a good indicator of how your marketing efforts are performing.
Website Traffic
Why it’s Important
It is impossible to survive in today’s business world without an attractive and
functional website that helps to build your brand and increase online visibility.
The more people you have coming to your site, the more leads and sales you
will enjoy.
What is separation of duties?
The separation of duties is one of several steps to
improve the internal control of an organization's assets
,,, Thank you