L3: marketing opportunity analysis and consumer analysis

• Successful Customer Relationship management Strategies

  1. Adopt the right mindset toward customer service

  2. Purchase or develop a CRM software

  3. Quantify customer acquisition and retention cost

  4. Develop and implement a customer training program
• Focused


  Efforts are concentrated on a relatively small but profitable market, ensuring that the needs and wants of this market are addressed and satisfaction is provided
• Step 4: Marketing strategy development

  The development of a marketing strategy involves market segmentation, identification of target market, positioning, selection of board marketing strategies, and the translation into action plan. Strategies can be broadly classified into three categories: Cost leadership, Differentiation, Focused
• Differentiation


  • Strategy to achieve superior product attributes and features different from industry competitors, resulting in pronounced consumer preference for the company’s products
• Step 2: Situation Analysis


  This step assesses and evaluate the market, customers, competitors, and the company’s internal and external environment. The objective is to identify the company’s strengths and weaknesses, as well as the available opportunities and threats.
• Cost Leadership

  Achieved through low-cost supply contracts, overhead expense control, economies of scale, and comprehensive cost-cutting efforts
• Strategic Marketing Process

  1. Mission Identification

  2. Situational Analysis

  3. Objective Setting

  4. Marketing Strategy Development

  5. Strategy Evaluation and Control
• Successful Customer Relationship management Strategies

  1. Empower salesperson to make decisions

  2. Establish communication lines between your customer and customer contact staff

  3. Shop your competition

  4. Keep innovating customer service

  5. Promote genuine customer service with passion
• Step 3: Objective Setting

  Objectives are marketing targets that are Specific, Measurable, Attainable, Reliable and Time-bound (SMART). These enable a company to control its marketing plan and provide a consistent focus for all functions of an organization. These objectives include sales revenues, market share and profits. They are used as basis for strategy selection and development.
• Step 1: Mission Identification


  The Company’s mission statement is articulated. A mission statement defines what an organization is, why it exists, its reason for being, its primary customers, the products and services its produces, and its geographical area of operation.
• Cost Leadership

  • Strategy for achieving low-cost leadership among industry competitions through low-cost supply contracts, overhead expense control, economies of scale, and comprehensive cost-cutting efforts
• Focused


  • Efforts concentrated on a relatively small but profitable market, ensuring that the needs and wants of this market are addressed and satisfaction is provided
• Differentiation

  Achieves superior product attributes and features different from industry competitors, resulting in pronounced consumer preference for the company’s products
• Example of a convenience store focusing on a high-end niche market


  • Convenience store with superior customer service, selling purely imported and high-quality products, and gourmet food prepared by resident's chef
• Example of Backward Integration


  • A consumer goods company in the Philippines purchasing a cow farm and dairy facility in General Santos City
• Example of Forward Integration


  • A known newspaper company buying 418 newspaper stands in Metro Manila
• Market Development

  Introduction of existing products or services into a new geographical area or market
• Market Penetration

  Increasing market share of current products or services in current markets through greater and more intensive marketing efforts
• Product Development

  Improvement of current products or services or the development of new products with the purpose of increasing sales
• Horizontal Integration


  Purchase of or increased control over competition
• Forward Integration


  Gaining ownership or increased control over distribution of retailers
• Efforts are concentrated on a relatively small but profitable market


  • The development of products and services primarily ensures that the needs and wants of this market are addressed and that satisfaction is provided
• Backward Integration

  Gaining ownership or increased control over supplies
• Related Diversification


  Introducing new related products or services
• Unrelated Diversification


  Introducing new but unrelated products or services
• Divestiture


  Selling all of a company's assets as a whole, for their tangible worth
• Retrenchment

  Halting or reversing declining sales and profits through cost or asset reduction
• Liquidation


  Selling all of a company's assets, in parts, or as a whole, for their tangible worth
• Example of Related Diversification

  • Battery manufacturers introducing solar-powered automotive batteries
• Example of Horizontal Integration


  • A pizza company buying a controlling interest in another pizza company
• Example of Market Penetration

  • A doughnut company launching a P56 million advertising campaign directed at current customers
• Example of Market Development

  • A private learning institution opening a new campus in Cebu City
• Example of Product Development


  • A company on carbonated beverages introducing its product line in tetra pack
• Example of Unrelated Diversification


  • A bank opening a chain of ice cream parlors
• Example of Retrenchment


  • A shopping mall selling off its hardware department and laying off 847 of its department store employees
• Example of Divestiture


  • A prime holdings company selling off all its companies
• Example of Liquidation


  • A prime holding company selling all its companies