Untitled Quiz

Course Information

• Course title: Strategic Marketing Management
• Course code: MKTG3531
• Semester: 1, 2024/2025

Learning Objectives

• Course aims to understand market insights, including company insights, competitor insights and segmentation insights.
• Course focuses on strategy development, opportunity assessment, targeting, strategic focus, positioning, program design, value creation & communication, budgeting and execution.
• Developing a strategic marketing model.

Assessing Market Opportunities

• Value of market opportunity = Inherent attractiveness x Likelihood of success
• Attractiveness and competitiveness need to be assessed for each opportunity.

BCG Matrix (Growth Share Matrix)

• Framework to evaluate market opportunities.
• Considers market growth rate (attractiveness) and relative market share (competitiveness).
• Four categories: Stars, Question Marks, Cash Cows, and Dogs.

GE/McKinsey Matrix

• Nine-cell portfolio matrix for screening market opportunities
• Cells based on attractiveness (low, medium, high) and likelihood of success (low, medium, high)

General Method for Assessing Market Opportunities

• Identify potential market opportunities (geographical, product, segments, major customers).
• Assess inherent attractiveness and relative competitiveness for each opportunity.
• Compare opportunities based on attractiveness and competitiveness.
• Allocate resources accordingly.

Attractiveness Assessment

• Define attractiveness criteria.
• Determine relative importance of criteria.
• Rate each segment on each criterion.
• Compute overall attractiveness scores.

Common Attractiveness Criteria

• Market size
• Market growth rate
• Market profitability
• Competitive intensity
• Entry barriers
• Opportunity for differentiation
• Demand variability
• Rate of technology development

Market Size

• Current size vs. potential size
• Considering competition when predicting market size (many players may result in smaller market share)
• Clearly identify the segment(s) being examined.

Cost of Operation

• Example of A&F withdrawing from the Hong Kong market and renting Pedder Building, in Central.

Customer Loyalty

• Demonstrated through examples like Apple and products like cigarettes and alcohol.

Relative Importance

• Table displaying attractiveness criteria and relative weights (e.g., in Sportswear)

Segment Opportunities Ratings of Sportswear

• Table showing ratings for different segments and criteria

Attractiveness Assessment(Summary)

• Define criteria
• Determine relative importance
• Rate each market segment on the criteria
• Calculate an overall attractiveness score for each segment

Attractiveness of Sportswear Segments

• Table showing overall attractiveness scores for different segments (e.g., Amateurs, Athletes) using predetermined weights.

Perceptual Analysis

• Understanding consumer perceptions of your own brand vs. competitors.
• Tools: Perceptual map, Multiattribute Modeling
• Limitation: Multi attribute modeling's potential for limitations

Semantic Scales in MarkStrat

• Study using semantic differential questionnaires to understand respondent perceptions of brand attributes.
• Provides data on brand perceptions, ideal values, brand evolution, and the relationship between product attributes and brand perceptions.

Multidimensional Scaling in MarkStrat

• Generates a joint space configuration of brands based on similarity and preference data.
• Provides information on brand perceptions, ideal values, value evolution, perceptual maps, and the relationship between physical characteristics and brand perceptions.
• Perceptual map (e.g., Economy X Performance).

Multiattribute Modeling in Positioning

• Identifying key competitors.
• Determining criteria.
• Assessing importance weights.
• Assessing each competitor (including yourself) on each criterion (0-10).
• Example: Airlines to BKK – Criteria and weights for backpackers and business travelers.

Positioning

• Decisions about market segment targeting requires positioning analysis.
• Four key decisions: Select customer targets, frame competitor targets, design the value proposition, articulate reasons to believe.

Position Modification Options

• Strategies to modify a product's positioning
• Improving own ratings, hurting competitors' ratings, changing weights, and introducing new criteria.

Common Positioning Errors

• Underpositioning: Customers have vague perceptions.
• Overpositioning: Customers have a narrow perception.
• Confused positioning: Frequent changes and contradicting messages.
• Doubtful positioning: Claims are not credible.

Positioning Summary

• A mental exercise to position your products in the marketplace.
• 4 key elements of positioning, using perceptual maps and MAM.
• Different criteria for platform selection.
• Repositioning options.
• Common positioning errors.

Strategic Focus

• Identifying trade-offs between sales volume and profit margins when making strategic decisions.

Major Types of Marketing Strategies

• Categorization of strategies into strategies related to profit and volume. Includes share increase, share defense, customer selectivity, marketing cost reduction, market development, business expansion, price increase, and sales mix improvement

Share Increase Strategy

• Targeting buyers from rival brands through significant spending on marketing mix elements.
• Strategy options for increasing market share:
  • New product development
  • Multiple brands
  • Promotional activities
  • Access to more channels
  • Prominence in distribution channels
  • Competitor acquisition

Share Defense Strategy

• Methods to retain existing customers and market share (e.g., improved financial options for existing customers)

Market Development and Business Expansion Strategy

• Exploring new markets and/or customer segments to grow business (e.g., new Cafés by a restaurant chain).

Profit Margin-Oriented Strategy

• Strategies focused on increasing profit margins (e.g., price increase, consumer selection).

Marketing Cost Reduction Strategy

• Measures to reduce marketing costs (e.g., downsizing, reengineering, outsourcing).

Consumer Selection Strategy

• Targeting profitable customers (based on usage, loyalty, price sensitivity, and service costs).
• Methods include harvesting/divestment, or niche marketing.

Price Increase Strategy

• Typically utilized by firms in monopoly-like situations, or as a strategy for seasonal products.

Sales Mix Improvement Strategy

• Expanding product offerings with additional features or services to trade-up consumers to higher margin products (e.g., AppleCare+).

Additional Notes

• Slides show examples of tools used in positioning (such as perceptual maps, multi-attribute modeling), different positioning strategies, and common mistakes in positioning.