Read the summary and the most important questions on Marketing Planning & Strategic Management

• 1 STP marketing model

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• What is targeting and positioning?

  The target market is the segment of the overall market that you choose to pursue. With these decisions, the company is ready for positioning- giving the brand or product a distinctive and meaningful place (position) in the minds of targeted customers. 

• 2 NPD; new product development process

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• Explain monitoring of customer reaction

  Monitoring of customer reaction; evaluate how customers react to the product. If a new product doesn’t fare as well as expected, the company faces decisions about changing the marketing mix (including the product), repositioning the product, or pulling it. Google watches product usage closely and has been known to discontinue new products quickly if they fail to attract many users. You can learn many valuable lessons even when customers don’t react as positively as you’d hope. 

• 3 Extension; line extensions & brand extensions

• What is line extensions?

  Putting an established brand on a new product and adding it to an existing product line. Same product in the same line 
  

  • E.g. M&M’s comes out with a new flavour
    

• What is brand extensions?

  Putting an established brand on a new product in a different category for a new customer segment. Different product, but the same brand
  

  • E.g. M&M’s comes out with milk, ice cream, McFlurry’s, etc.
    

• 4 FMS objectives; pricing objectives - financial, marketing, societal

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• Explain Consumer Pricing in the Retail Channel

  The retail pricing is the price at which the product is sold to the end customer is called the retail price of the product. Retail price is the summation of the manufacturing cost and all the costs that retailers incur at the time of charging the customer.

• 5 Pricing situation

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• How to do the pricing to meet the firm's objectives?

  • The pricing strategy must be consistent with the firm’s overall mission, direction, goals and marketing plan objectives.  
  • Due to market realities, organizations may have to trade off market share growth with profitability. 

• What are two price strategies when introducing new products?

  1. Penetration pricing: pricing a product relatively low in order to gain market share rapidly
     
  2. Skim pricing: pricing a new product high in order to establish an image and more quickly recover development costs in line with profitability objectives 
     

• What are some typical pricing adaptations?

  Price adaptation is the ability of a business to change its pricing models to suit different geographic areas, consumer demands and prevailing incomes.
  

  • Discounts
  • Allowances: mostly to retailers
  • Bundling or unbundling
  • Product enhancement
  • Segment pricing

• 6 S-statement; strategy statement

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• What are the three main themes of strategy statements?

  • Fundamental goals that the organization seeks, which reflect the stated mission, vision and objectives
  • The scope or domain of the organization’s activities
  • The particular advantages or capabilities it has to deliver all of these
  • All in less than 35 words!
  • Example: Coca-Cola: "to refresh the world in mind, body, and spirit", slogan: "happiness" - Tesla: "to accelerate the world's transition to sustainable energy"

• 8 Generic

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• What is the value chain (Porter's model)?

  The value chain describes the categories or activities within an organization which, together, create a product or service. This model can be used to model the value generation of an organization.