Marketing Management And Strategy PDF

**[MARKETING]** **MARKETING** **MANAGEMENT** **AND STRATEGY** **[Marketing management and strategy]** Every business needs a solid plan to generate income, remain profitable, and stay competitive. As the market evolves, companies must regularly analyze competitors, customers, and marketing resu...

**[MARKETING]** **MARKETING** **MANAGEMENT** **AND STRATEGY** **[Marketing management and strategy]** Every business needs a solid plan to generate income, remain profitable, and stay competitive. As the market evolves, companies must regularly analyze competitors, customers, and marketing results to adjust their strategy and achieve long-term goals. A well-structured marketing plan helps businesses align their efforts with clear objectives, understand financial impacts, and assign responsibilities across teams, ensuring all activities work together to achieve the company's goals. **[Strategy]** Plan to achieve the company's overall goals. - **Segmentation** - **Targeting**: select one or more segments to enter. - **Positioning**: create a clear, distinctive and desirable image for the product in consumer's minds. Marketing is about **convincing the customers to choose certain products and repeat this choice repeatedly.** Marketing is also about **building strong, lasting relationships with them**. By understanding their needs, preferences, and values, marketers can create meaningful connections that foster trust and loyalty, turning one-time buyers into long-term advocates for the brand. - **Customer relationships** are created through repeteated interaction between the customer and the company. **[Market orientation]** Is about collecting and analysing information about current and future customer needs, interpreting the information and acting on what is learned. Market orientation is about continuously **gathering and analyzing information** on customer needs, both present and future, and using these insights to guide decisions. This approach fosters customer satisfaction, drives innovation, and ensures businesses remain competitive and adaptable in changing markets. **SEGMENTS** **CUSTOMER MANAGEMENT** **PRODUCT MANAGEMENT** **BRANDS** **[Segment]** Segment is a group of customers who have similar needs and similar buying behaviours. The idea of **segmenting** customers can directly relate to **customer portfolio management**. Once customers are segmented, businesses can tailor strategies for each group to increase loyalty and lifetime value, thus enhancing the overall **customer portfolio**. Different levels of segmentation A blue line with black text Description automatically generated Segmentation criteria: measurable, substantial, accesible, differentiable, actionable. Segmentation can be based on gender, education, lifestyle, usage, intensity. **[Customer]** **[management ]** **Goal**: The overall goal in customer management is to develop a **more valuable customer portfolio**. This can be achieved by enhancing customer satisfaction, loyalty and lifetime value through tailored strategies and strong relationships. A **larger portfolio of valuable customers created through:** - Attracting new customers to the customer portfolio. - Retaining more customers who would also recommend the company (brand) to others. - Motivating more customers to expand their customer relationships through the purchase of more products and services from the company (brand). - **Microsegments**: Smaller, detailed customer groups based on behavior, preferences, or demographics. - **Macrosegments**: Broader, fewer groups with stable characteristics like age or geography. - **Key Differences**: - More microsegments than macrosegments. - Microsegments change frequently; macrosegments are stable. - A customer can belong to multiple microsegments but usually only one macrosegment. - A **service concept** defines how customers inquiries are planned to be solved. - **Customer relationship repair programs** are strategies businesses use to rebuild trust and loyalty after service failures or negative customer experiences. They focus on resolving issues, improving communication, and restoring customer satisfaction. - **Company promotional** **campaigns** include a financial incentive to act (respond) **[Product management ]** The growth and profitability in the product portfolio. **Strategic product management** involves planning, developing, and managing a product's lifecycle to align with business goals, market needs, and customer demands. It focuses on maximizing a product\'s value and success in the market. - **Product concept and network connections**: strong brands are characterized by the fact that customers are connected to a network or ecosystem of products and services. The network can be technological, social or economic. **[Price elasticity]**: a measure of the sensitivity of demand to changes in prices. **If PE \< 1 Price inelastic** **If PE \> 1 Price elastic** Elasticities are higher for durables. Elasticities are strongest in the growth stage of the product category life cycle: Penetration pricing more effective than skimming. **The three C's model** for price setting: consumer, cost, competitor. **Cost pricing** is setting a product's price based on the cost of production plus a markup for profit. **Value pricing** is setting the price based on the perceived value to the customer rather than the cost to produce. It focuses on what customers are willing to pay for the benefits the product provides. A **strategic pricing gap** is the difference between a company\'s current pricing and the optimal price that could improve profitability or market share. The **basic principle in pricing** is that customers are willing to pay a higher price for increased quality if the quality product gives them increased benefit. **Reference price**: the customer's perception of what a normal price for a product is. Distribution  **[Product management ]** Product **value** is the economic value of the products and their ability to maintain a high cash flow. A product **category** is defined as the products customers consider to be close substitutes. Product **attributes** are used to describe a product because each attribute creates benefit for the customer, and total benefit is the sum across all attributes. **Product attributes** are the features or characteristics of a product that provide value to the customer. Each attribute contributes to the overall benefit or satisfaction the customer gets from using the product. Product **differentiation** at the extended level imvolves to add something beyond what the customer expects. It adds unexpected extras to a product, creating more value and setting it apart. **Customer adoption process**: mental levels the customer goes through from becoming aware of a product until the regular use of the product. **[Synergy]** Synergy in this context means that combining efforts across multiple product categories creates added benefits that wouldn't exist if the categories were separate. Expanding into more categories makes sense if the new products enhance the overall business efficiency, brand strength, or profitability. **[Brand management]** [A brand is a name, term, design, symbol or a combination of these that identifies products and services from a supplier or group of suppliers and differentiates them from competitors.] The brand must be known so that is associated with the brand's products or categories: Unaided awareness, online search. Obviously, the brand must be **eligible** to be an option (hygine and min. requirements); and the brand must be **preferred**. **Roles of a Brand** 1. Identification: Helps customers recognize the product. 2. Signaling Uniqueness and Quality: Differentiates the product from competitors by showcasing its distinct value and reliability. A brand is a psychological concept with economic consequences 1. A brand exists in the customer's memory in the form of familiarity, associations, and attitude towards the brand. (Ads, sponsorships, media coverage...) 2. With more people who are familiar with positive associations and attributes , the use of the brand and, therefore, the income increases- **[The role of brands]** For customers For companies ----------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------- The brand makes it easier for customers to interpret and process information, ex: it reduces search costs Increased WTP; Stronger customer loyalty. Higher efficiency of marketing activities. The brand creates security (risk reduction + expectations of quality) Better platform for launching new products. Good feeling of satisfaction Bargaining power Increased motivation among employees. And strong organisation culture. [Brand awareness] Customers have stored the brand in their memory so it's associated with the product category. [Brand preference] Customers have a positive attitude where the brand is preferred over other brands. [Brand value] Means the economic value of the brand **[Process]** Knowledge of the brand Higher expectations of the brand use of the brand brand loyalty. **[Brand strategy]** includes positioning of the brand, brand architecture, brand communication. 1. **Brand Positioning** - This is how the brand stands out from competitors and what makes it special to customers. - It focuses on who the brand is for, what it offers, and why it\'s better than others. 2. **Brand Architecture** - This is how a company organizes its brands and products. Categories - **Sub-brands**: A main brand with smaller, related brands under it. Example: **Apple** (iPhone, iPad, MacBook), Virgin, Gillete Fusion. - **Branded House**: One name for everything. Example: **Google** (Search, Maps, Drive). - **Endorsed Brands**: Sub-brands that show a connection to the parent brand. Example: Cocacola - **House of Brands**: Independent brands under one company. Example: **Procter & Gamble** (Tide, Pampers). 3. **Brand Communication** - This is how a brand talks to people and shows what it's all about. - It includes things like ads, social media posts, and the brand\'s design (logo, colors, etc.); employees... - It includes a brand slogan, which highlights the brand's key benefits. **MARKETING** **PLANNING** **[Marketing planning]** Marketing planning is essential because **companies must adjust and update their marketing in line with changes in the market.** Marketing planning involves **setting goals, analyzing the market, and creating strategies** to meet customer needs. It helps businesses stay competitive by adapting to market changes and ensuring efficient use of resources. The marketing plan includes market overview, market objectives and financial overview. **[Process]** Goal setting Situation analysis (identify the key market challenges that must be addresed) Resource allocation (marketing is costly). - The marketing plan and planning process reflects the company's abilities to be market-oriented. - Profitability analysis: whic products and customers are more profitable. - Developing insights into customer behaviour is about analysng how customers can be segmented, what influences customer choices in different segments and identifying effective marketing effors. - The marketing plan should be comprehensive and comprehensive for all products, customers and brands. **[Marketing knowledge]** Goal: help make marketing smarter and more effective. **[Marketing Management]** overall **responsabilities** are the top line; the company's revenue and profitability. **Marketing management** is responsible for driving a company's revenue and profitability by developing strategies that attract customers, build brand loyalty, and maximize the value of marketing efforts. The key areas of management in marketing are: - **Customer portfolio**: Managing and growing the customer base to build loyalty and increase value. - **Product portfolio**: Offering a variety of products that meet different customer needs and market demands. - **Brand equity**: Strengthening the brand's reputation to increase customer loyalty and trust. **[Benefits of Marketing Coordination]** Coordinating marketing efforts across different areas helps reduce costs and increase efficiency, leading to economies of scale. The **coordination** of marketing across management areas is important because it can lead to **economies of scale.** **Economies of scale:** the cost per unit produced decreases when volume increases. We can consider **direct costs** (vary directly with production and sales; ex: raw materials...) When the volume increases, the company gains bargaining power which is used to push down prices from suppliers and comissions for distributions and sales; and **indirect costs** (do not vary directly with production; ex: wages to employees, premises...) the company becomes more experienced and makes the activities faster and more correct. We say that the company learns. The **product segement matrix** provides information about from which products and which customers, the company gets its revenue and profitability. **[Marketing planning and marketing coordination]** Marketing planning sets clear goals and strategies to meet customer needs and stay competitive, while marketing coordination ensures all departments work together to execute the plan effectively. This alignment reduces inefficiencies, maximizes impact, and helps achieve economies of scale, ultimately driving long-term profitability and business growth. **[VRIO ANALYSIS]** **VRIO** is a strategic analysis tool used to evaluate a company\'s resources and capabilities **Value** Is the resource valuable? Does it create value for the customers? Does it increase demand for the companies products? ------------------ ----------------------------------------------------------------------------------------------------------------------- **Rarity** Is the resource limited and not available for competitors? **Imitability** Is the resource easy to imitate or replace? **Organisation** Is the organisation able to extract the value of the resource? **MARKET** **MATRIX** A **market matrix** is a tool to evaluate growth strategies by comparing products and markets. The **Ansoff Matrix** is a common example, with four strategies: 1. **Market Penetration**: Increase sales of existing products in current markets. 2. **Market Development**: Sell existing products in new markets. 3. **Product Development**: Create new products for existing markets. 4. **Diversification**: Introduce new products to new markets. - **Customer Portfolio**: Tied to **Market Development**, targeting new customer segments. - **Product Portfolio**: Linked to **Product Development** and **Diversification**, expanding with new products. - **Brand Equity**: Supports **Market Penetration** and **Product Development** to strengthen brand loyalty and success. A white grid with black text Description automatically generated **1-. Grouping products into categories**: Categorisation is based on grouping products based on similarities in how the fulfill customer's needs, and where the products included in the group can be considered close substitudes. **2-. Grouping customers into segments**: customers are different (heterogeneous) in what they need and how they respond to market activities. Customers are grouped into segments consiting of customers who are relatively similar (homogenous. **3-. Brands**: a brand is name, termm design, symbol... that distinguishes one seller's products and services from other sellers. A brand has two essential tasks: identification and differentiation. **[MARKET]** **[Market]** A market is an arrangement (**mechanism**) to connect sellers and buyers, so that products and services can be exchanged. Which products should be included? Which customer will be included? The **[market mechanism]** is used to analyse how changes in supply and demand affect the number of units traded and the market price. The guideline for defining a market is that we must capture close substitudes of the products the company selles, because the close substitudes are the alternatives that customers might choose rather than our product. [Decisions] To make decisions about investments in a market, the management needs to know: - Market size - Market growth - Market prices - Historical development of the market (both volume and price) - Market's expected development (both volume and price) A positive shift in the demand curve leads to higher market price, market growth, increased market offer (D1D2) The market mechanism implies that the market price stabilises where supply and demand interesct. **PESTEL** - **Political**: Analysis of political factors, such as government policies, regulations, and stability, that can impact market growth. - **Economic**: Evaluation of economic conditions, like inflation, unemployment, and economic growth, that influence consumer purchasing power. - **Social**: Understanding of social trends, demographics, and cultural factors that affect consumer behavior and demand. - **Technological**: Assessment of technological advancements and innovations that can create new opportunities or disrupt markets. - **Environmental**: Consideration of environmental factors, including sustainability, climate change, and resource availability, impacting business operations. - **Legal**: Examination of legal factors, such as laws, regulations, and industry standards, that affect how businesses operate and compete. **[PESTEL FOR]** **[DALE OF NORWAY]** **[Political factors]** - Norway's stable political environment is favorable for Dale of Norway's operations. - Government's support for traditional Norwegian industries might benefit the company, as Dale represents an important part of Norway's culture heritage. - Dale of Norway has a good magnitude of exports, any changes in tariffs and textiles imports, or in any other goods significant for Dale's production, could affect the competitiveness of Dale in those countries. - Trade agreements or changes in the actual ones between Norway and other countries (USA, Europe, China...) could alter market conditions for Dale's exports (or imports), reducing sales or making production more costly. **[Economic factors]** - **Norway's high living standars** and the strong support **demand** for premium, high-end products, like Dale's knitwear among others. - **Exchange fluctuation rates** could impact the company's export business, as Dale of Norway sells abroud. Let's digg into this: The **NOK has weakened**: This makes Norway a more attractive location for tourism. This can increase sale since tourists might consider Dale's products good souvernirs. Additionally, this gives Dale an export advantage since Dale's products become relatively cheaper for foreign buyers, which increases sales. However, this can also mean increased import costs for Dale. This situation might reduce Norwegians purchasing power, which can lead to a decreased consumer spending (consumers migh become more price sensitive and decide to buy from cheaper, lower-quality brands). - **Inflation**. Inflation can significantlty decrease purchasing power. - **E-commerce growth in Norway**: The growth of E-commerce in Norway could enhance Dale's brand history and reach a larger audience. - (Could be social as well) **Tourism** industry in Norway, with around 5 million visitors annually, creates a significant market for Dale's traditional knitwear and souvernirs. **[Social factors]** - **Increasing tourism**: This trend is likely to continue. The growthin tourism that Norway is experiencing in tourism, and therefore souvenir market, creates a significant market for Dale. The case mentions that Dale's knitwear has been on of the most foremost souvenirs for tourists visiting Norway since 1994 Lillehammer Olympics. - **Demographics**: Aging populattion could affect demand for different product lines. Older customers may have different preferences in term of functionality, style, comfort, traditions, culture... compared to younger customers. Additionally the may have a stronger purchasing power. This could increase demand for traditional designs with a higher quality. - **Increased interest in outdoor activities**. This trend could boost demand for Dale's sports and outdoor product categories. - **Changing on fashion trends**. There has been a resurgence of interest in tradition and heritage designs in these recent years, which can benefit Dale. **[Technological growth]** - E-commerce. - **Digitalisation of Marketing**. Dale might need to invest in digital marketing channels to reach customers online including social media and targeted ads. - **Adavancements in textile manufactoring technology**, such as AI and LOT are revolutionising the industry, which can alter Dale's production processes (making them more inefficient, costly... if they do not adapt). - **Growth of smart textiles and high performance fabrics** may present innovation opportunities. **[Legal factors]** - **Intellectual property laws** could protect Dale's traditional Norwegian patterns and designs. - **Labour laws and regulations in Norway**. Norway has strong labour protection (minimum wage, working hours, employee benefits...) which significantly increases labour costs and these laws must be strictly followed. - **GDPR and other privacy laws**. Collecting customer data for online sales requires strict adherence to these regulations, and non-complience could result in fines and damages to the brand, and the brand's reputation. **[Environmental factors]** - **Increasing focus on sustainability in the fashion industry**: Dale has a strong commitment to sustainable practices and high-end clothing which will be beneficial. - **Growing demand for eco-friendly and recyclable textiles** aligns well with Dale's use of natural wool. - **Climate changes** have affected the fashion indistry globally. This has risen demand for ethically produced goods. Climate change could also affect tourism, which is crucial for Dale's sales, making it important for the company to monitor how climate variability might affect its business. **MARKET** **STRUCTURES** A table with text on it Description automatically generated **[MARKET STRUCTURES]** Oligopoly is characterised by few major competitors who follow each other closely, and stability of the market over time. Monopolistic competition is characterised by competitors with differentiated offerings. Product differentiation is high. **[Competition]** To identify competitors, focus on products customers see as close substitutes. Competitors fight for market share to boost profits. Having the largest market share lowers unit costs by spreading fixed costs over more sales and increases bargaining power, leading to better purchasing terms and further cost reductions. We need to define WHO are our competitors, which depends on how we define the market, close substitudes), and customer choices. Competitors can be global, national or local. **[PORTER'S FIVE FORCES FRAMEWORK]** analyses the competitive forces shaping an industry. - **Threat of New Entrants**: The ease or difficulty for new competitors to enter the market. - **Bargaining Power of Suppliers**: The influence suppliers have on prices and terms. - **Bargaining Power of Buyers**: The power customers have to drive prices down or demand higher quality. - **Threat of Substitutes**: The risk of customers switching to alternative products or services. - **Industry Rivalry**: The level of competition among existing players in the market. - - **Introduction:** Product is launched; focus on creating awareness and generating demand. Costs are high, profits are low. - **Growth:** Sales rise quickly; focus on expanding market share and improving profitability. - **Maturity:** Sales peak and stabilize; competition increases, so efficiency and differentiation are key. - **Decline:** Sales drop as demand decreases; companies may discontinue, innovate, or rebrand the product **PRODUCT NETWORK** Describes intermediaries and other actors who influence how the company markets it products. Creates a framework for how the company markets its products. Intermediaries are independent companies that operate between producers and customers (consumers) **[Chapter 3]** The buying process starts with **problem recognition**. Problem recognition means that the customer is **aware of a difference between what the condition is and what is desired.** An important part of problem recognition is that the **customer identifies goals and a set of activities that will solve the problem.** **Consumer decision making process**: 1. Problem recognition 2. Information search 3. Evaluation of alternatives 4. Purchase (choice) Post- purchase behaviour includes formation of customer sastisfaction, product talk, **cognitive dissonance** (the product and service do not match expectations, the customer beggings to doubt the purchase and may regret it. Other options might be more attractive all of a sudden) 5. Consumption (relationship) PRICING **Psychology of Pricing** is how prices influence consumer perceptions and decisions, like using.99 endings to create a sense of a better deal. **Healing Power of Prices** suggests pricing strategies like discounts can enhance customer satisfaction and emotional experience. Or buying more expensive medicine can make you feel better than buying expensive one **Dynamic Pricing** adjusts prices in real-time based on demand and market factors, common in industries like airlines. **Name-Your-Own Price** lets customers set their price, creating a sense of control and satisfaction, often used in auctions or special deals. **Product Line Pricing** sets different prices for products in the same category based on features or quality.\ **Product Bundling** offers several products together at a discounted price.\ **Unbundling** sells product components separately, letting customers pay for only what they need.\ **Captive Product Pricing** offers a low price for a core product, but charges more for necessary accessories. **Distribution channe**l:  is the path through which a product moves from the producer to the consumer, involving intermediaries like retailers or wholesalers. Using intermediaries helps businesses reach more customers, reduce distribution costs, and improve efficiency. They provide expertise in sales, logistics, and marketing, making it easier for companies to focus on production while intermediaries handle the rest. The level of service in a distribution system increases when waiting time to be serviced is reduced. **[Marlow's hierarchy of needs]** 1. **Physiological needs**: Basic necessities like food, water, and shelter. 2. **Safety needs**: Security, stability, and protection. 3. **Love and belonging**: Relationships, friendship, and emotional connections. 4. **Esteem needs**: Self-respect, recognition, and achievement. 5. **Self-actualization**: Personal growth, fulfilling potential, and creativity. The lower needs must be met before higher-level needs can be pursued.  **[Perception]** In marketing, **perception** is how customers view and interpret a product or brand, influencing their buying decisions. Marketers shape this perception through strategies to create a positive image. An attitude toward an object changes when perceptions about it shift, when the importance of certain beliefs about it changes, or when new perceptions are formed. This process influences how people evaluate and respond to the object. **Marketing** **Communication** **Different objectives:** create familiarity, knowledge and pereference for the brand; communicate value propositions and create interest in products; recruit new or engaged existing customers. **Target groups:** People are different, thefore communication must be adapted to who we are communicating with, whether it is existing customers, prospectice customers and other stakeholders. **Communication channel**: is where a message is placed to reach a target group. We must distinguish between purchased and own channels; and digital and analog channels. - M**ass Communication**: The process of delivering the same message to a large audience through mediums like TV, radio, or newspapers, without personalizing it for individual consumers. - **Modified Mass Communication Model**: A communication approach that uses mass media while incorporating some elements of personalization, such as targeting specific audience segments or tailoring messages to particular groups. **Effect Hierarchy Models** **The steps in the effect hierarchy models include:** - **Cognitive: Focuses on awareness and knowledge.** - **Affective: Involves emotions and feelings towards the product.** - **Conative: Focuses on consumer behavior and purchase intention.** **AIDA Model** **AIDA stands for:** - **Attention: Grabbing the customer's attention.** - **Interest: Building interest in the product.** - **Desire: Creating a desire for the product.** - **Action: Motivating the customer to take action (e.g., make a purchase).** **Exposure Effect** The **Exposure Effect** suggests that people tend to prefer products they are repeatedly exposed to, even if they don\'t fully understand them. Familiarity makes the product feel more reliable and appealing, increasing the likelihood of purchase. This effect highlights the importance of frequent visibility in advertising. **Elaboration Likelihood Model (ELM)** There are **2** processes in ELM: - **Central route** (requires deeper processing). Information is actively processed, and the individual processes it in a rational manner. - **Peripheral route** (focused on surface details). The receiver does not actively process the information in a cognitive sense but relies on peripheral cues. Prerequisites for thorough processing in ELM: - **Motivation, Ability, and Opportunity** to process the message. **Customer Expectations** Customer **expectations** are the beliefs customers have about a product or service before purchase. Meeting or exceeding these expectations is vital for satisfaction and loyalty. Failing to meet them can lead to dissatisfaction and loss of trust. **Message Strategy** **Message strategy** is about defining the key message a company wants to communicate and how to deliver it effectively to the target audience. Message strategy is specifying what to say. **Creativity in Marketing** Creativity in marketing is important because it can increase motivation, ability, and opportunity for customers to process messages, making the marketing more effective and engaging. It helps brands stand out and connect with diverse customer needs. Market communication is creative when it's divergent (original), orginal and relevant. **Programmatic Buying of Media Space** Programmatic buying of media space involves purchasing advertising online, typically through an auction system, where ads are targeted to specific customer groups. This automated process helps brands reach their audience more efficiently. **Integrated Marketing Communication (IMC)** **Integrated Marketing Communication (IMC)** is a strategy that ensures all marketing channels and messages are aligned and work together to deliver a consistent and unified brand message across different platforms, enhancing customer experience and engagement. The purpose of the **General Data Protection Regulation (GDPR)** is to safeguard individuals\' rights over their personal data, ensuring that companies handle personal information transparently and responsibly. It gives consumers control over how their data is collected, stored, and used. **Measurement and control** **Awareness**: think of the brand when they see a logo, hear a tagline, remember the brand... **Interest**: customer's curiosity about the brand and their willingness to research and learn more about the brand. **Attitude**: brand image, brand attitude, brand preference, and purchase intention (survey). **[Coverage in market communication]** How many people in the target group are exposed to an advertising message at least once **[Multi-channel design ]** Market channel system where two or more channels are coordinated. **SWOT** **DALE OF NORWAY** **[STREGTHS ]** - **Brand heritage and reputation** (Dale is known for their authentic Norwegian designs and craftmanship traditions) - **Product quality and innovation** (Use of natural wool and world-ledding knitting qualities) - **Olympic and ski federation partnerships** - **Ethical and sustainable production** - **Diverse product range** - **Long experience** - **Highly skilled worforce** - **Strong brand identity, strong brand identity, and strong employee relations.** **WEAKNESSES** - **Limited domestic distribution** (very little availability if Dale's products in many of the stores where Norwegians generally buy clothes) - **Low brand awareness** in some categories. - **High production costs** (Manufacturing in Norway results in higher production costs compared to overseas competitors) - **Limited digital presence.** **[OPPORTUNITIES]** - **E-commerce growth** (Rapid growth in online shopping, with fashion, sports and leisure products being popular categories). - **Expanding tourist market** (Increasing number of tourists visiting Norway) - **International expansion** (Potential for growth in international markets) - **Growing demand for sustainable products** (increasing consumer interest in sustainable and ethically produced clothing aligns with Dale's values) - **More middle-aged consumers** (they have a higher purchaisng power than the youth, and a higher focus on high-end fashion and sports-wear) - **Increased indisposable income.** - **Collaboration with athletes.** **[THREATS]** - **Competitive Retail Landscape** (strong competition from large clothing and sports chain in Norway and pressure from retailers focusing on low prices over qualities) - I**ncrease in raw material costs due to inflation** (could affect Dale's profit margings) - **Currency fluctuations** - **Increased international competition** - **Economic recession impacting consumer spending** - **Climate change conseguences on wool production.** **MARKETING STATEGY** **FOR DALE OF NORWAY** **[1-. Embrace digital transformation]** - Enhance the E-commerce platform with improved user experience, personalisation... - Develop a social commerce strategy across Instagram, Facebook... - Invest in a modern, mobile-friendly e-commerce platform with personalized recommendations, user-friendly navigation, and localized payment options for international customers. **Opportunities**: - E-commerce growth. - Growing demand for sustainable products. **Weaknesses**: - Limited digital presence. - Low brand awareness in some categories. **[2-. Leverage influencer partnerships]** - Collaborate with outdorr activities, skiing and sustainable fashion influencers. - Create control showcasing Dale's products in Norwegian setting and putting them into use. - Partner with professional atheletes and ski teams to reinforce the brand heritage. - Get sponsorships - **Tourism Collaboration**: Work with travel influencers and agencies promoting Norway as a destination, emphasizing Dale's knitwear as the perfect souvenir. **Opportunities**: - Collaboration with athletes. - Growing demand for sustainable products. - E-commerce growth. **Strengths**: - Olympic and ski federation partnerships. - Ethical and sustainable production. A screenshot of a phone Description automatically generated Dale of Norway is working with Norwegian influencers to show off their products, but these partnerships don't seem very strong yet. They should focus on working with the right influencers to make a bigger impact and connect better with their audience. **[3-. Emphasize sustainability and heritage]** - Create storytelling campaigns about Dale's unique history - **Behind-the-Scenes Content**: Showcase the production process, including ethical sourcing of wool and skilled craftsmanship, to build trust and deepen customer connection. - **Limited-Edition Heritage Collections**: Create exclusive designs that celebrate Norwegian traditions or commemorate significant events. **Strengths**: - Brand heritage and reputation. - Ethical and sustainable production. -  Use of natural wool and premium quality. **Opportunities**: - Growing demand for sustainable products. - Expanding tourist market. **Threats**: - Competitive retail landscape. - Competitive retail landscape prioritizing low costs. **[4-. Diverisfy product offering]** - Expand into complementary product categories like accessories and lifestyle items. - Create capsule collections targeting younger demographics, to expand the customer portfolio. **Strengths**: - Diverse product range. - Product quality and innovation. **Opportunities**: - Growing demand for sustainable products. - More middle-aged consumers. **Threats**: - Increased international competition **[5-. Expand Domestic and International Reach]** - **Domestic Strategy**: - - Partner with local businesses in tourism-heavy areas to showcase products as authentic Norwegian souvenirs. - Strong brand identity. - Long experience in the market. - Expanding tourist market. - International expansion. - Limited domestic distribution. **[6-. International Strategy:]** - Identify key markets such as the US, Japan, and Germany with a high demand for sustainable luxury goods. - Work with local distributors and retailers in these regions to increase reach and visibility. **Strengths**: - Strong brand identity. - Product quality and innovation. - Long experience in the market. **Opportunities**: - International expansion. - Growing demand for sustainable products. - Expanding tourist market. **Threats**: - Increased international competition. - Currency fluctuations. **[7-. Leverage Partnerships]** - Collaborate with tourism boards to feature Dale products in marketing campaigns promoting Norway. - Work with ski resorts to sell Dale merchandise in on-site stores. - Create exclusive designs for Norwegian Airlines or luxury hotels as part of a "Discover Norway" collection. **Strengths**: - Olympic and ski federation partnerships. - Ethical and sustainable production. **Opportunities**: - Collaboration with athletes. - Expanding tourist market. - More middle-aged consumers with higher purchasing power. **Threats**: - Competitive retail landscape. - Economic recession impacting consumer spending. **EXPANDED** **THEORY** 1-. Explain the concept of the **[market-matrix]** and how it **relates to the three main management areas in marketing.** The market-matrix is a framework that organizes a company\'s products and customers into a grid. It helps businesses understand how their offerings relate to different customer segments. It allocates revenues and costs across product categories and customer segments. It also organises the three marketing management areas, as they are interconnected: customer portfolio, product portfolio and brand management. i. It shows how products from different categories are sold to various customer segments. ii. It helps identify growth opportunities within existing customer portfolios. iii. It guides strategic decisions on resource allocation and competitive positioning. iv. It serves as a foundation for coordinating the three main management areas: customer portfolio management, product portfolio management, and brand management. - **Customer Portfolio Management**: Focuses on acquiring and retaining customers. - **Product Portfolio Management**: Manages different product categories. - **Brand Management**: Develops and maintains brand associations. These areas are interconnected within the matrix, helping companies allocate resources, understand customer-product relationships, and make strategic decisions. 2-. Explain the concept of **[customer portfolio management]** and its key objectives. Customer portfolio management aims to **increase the value of the company\'s collection of customers**. The **financial value of a customer portfolio** is the **sum of future cash flows it is predicted to bring in.** Key objectives include: - Adding more new customers - Retaining existing customers - Increasing the level of engagement with each customer - Customer **Heterogeneity**: Customers differ in their needs and responses to marketing activities. This heterogeneity is a fundamental characteristic of markets that companies must address through segmentation. - **Macro and Micro Segmentation:** - Macro segmentation is strategic and involves fewer, highly distinct segments used to differentiate and tailor products and activities. - Micro segmentation is tactical, used within macro segments for more targeted marketing activities. There can be many micro segments, and they can be frequently updated. - **Digitalization Impac**t: With advanced data management systems like CRM, companies can handle more complex micro segmentation, making marketing activities more relevant and personal. Personalised ad and customer information recollection is something that digitalisation allows. - **Value Creation**: The goal is not just to acquire customers, but to establish lasting exchange relationships that grow over time. - Measuring **Success**: The success of marketing is measured by the **growth of the company\'s portfolio of valuable customers.** - Strategic Importance: Customer portfolio management is linked to the overall company strategy and is crucial for securing future revenues and profits. - Analytical Capabilities: Companies need strong analytical capabilities to anticipate how investments in marketing activities will perform in a continuously evolving market. - Defensive Strategies: Beyond satisfaction, companies need to continuously innovate and improve offerings to stay attractive and increase perceived switching costs to defend against competitors. 3. Explain the concept of **[product portfolio management]** in marketing. Product portfolio management involves **grouping products into categories** based on their **similarities** in **fulfilling customer needs**, where **different products are close substitutes.** This approach is crucial as it determines the **competitive landscape** and identifies **competitors for each category**. Companies often **define product categories** using a **market-oriented approach**, prioritizing **customer needs** and **available alternatives**. *For example, Hennig Olsen, a Norwegian ice cream manufacturer, defined seven product categories including impulse (single packaged ice cream), multipack, and tubs.* The way companies categorize their products has significant implications: - Different categories may have varying levels of competition and innovation dynamics. - Some categories might be highly price-competitive, while others compete more on non-price dimensions. - Product categories can be redefined to address market changes and identify new opportunities. *A notable example is Tine, a Scandinavian dairy company. They redefined their product category from \"milk\" to \"drinks for breakfast and lunch\" when they realized juice, coffee, and tea were close substitutes to milk. This led to an expansion of their product portfolio and new revenue streams.* Essential aspects of product portfolio management include: - Balancing resources across different product categories to optimize overall performance. - Considering the **product life cycle** when making portfolio decisions, as different categories may be at various stages of maturity.  - Identifying growth opportunities and areas for potential divestment within the portfolio. - Using analysis tools like the BCG matrix to evaluate the performance and potential of different product categories. Product portfolio management aligns with overall company strategy and market positioning by ensuring that the mix of products supports strategic goals and competitive positioning. It helps companies make informed decisions about which products to invest in, maintain, or discontinue based on their alignment with company strategy and market demands. Effective product portfolio management requires coordination with other management areas, particularly customer portfolio and brand management. It helps in allocating resources efficiently, identifying growth opportunities, and supporting the overall company strategy. 4. Explain the concept of **[brand management in marketing.]** A brand is considered a unit of information stored in people\'s memories, represented by a name. Brand management involves systematically shaping the associations people make with brands to generate more positive opinions across customer segments and product categories. The brand serves **two primary purposes**: **identification** (who are you?) and **differentiation** (why you?). [Effective brand management can lead to stronger market presence and negotiating power with retailers.] - Cross-Segment and Cross-Category Management:\ The goal is to generate **positive opinions** not just in one customer segment or product category, but across multiple segments and categories. This approach helps in **building a strong, versatile brand that can support various products and appeal to diverse customer groups.** - Market Presence and Retailer Relations:\ **Effective brand management can significantly strengthen a company\'s market presence**. Strong brands often have more negotiating power with retailers because they can drive customer traffic and sales. - Digitalization and Brand Innovation:\ In the digital era, brands are finding new ways to strengthen their connection with end users. This includes strategies like developing apps, creating concept stores, engaging on social media, and establishing customer clubs. - Continuous Evolution:\ Brand management is not a one-time effort but a continuous **process of adapting to market changes, consumer preferences, and competitive pressures.** By effectively managing these aspects, companies can **create strong brands** that not only identify their products but also create **meaningful differentiation in the market**, leading to stronger customer relationships and business performance. Related concepts: perception, recognition, brand awareness (Brand awareness refers to the extent to which consumers recognize and can recall a specific brand. It\'s the degree of familiarity that people have with a brand\'s name, logo, and products).