To get a better understanding about this, please start reading from the first post of the series.
THESIS: The Marketing Communication Strategy of Blue Bird Taxi To Maintain Market Leader Position After Using The Highest Tariff:
- Introduction & Book Cover : Part 1
- Research Originality Statement and Acknowledgement : Part 2
- Abstract : Part 3
- Table of Contents : Part 4
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(Chapter II continued...)
2.4
Marketing Strategy
Marketing Strategy is the marketing logic by
which the business unit hopes to achieve its marketing objective. Target consumers are
at the centre of the marketing strategy. The company identifies the total
market, divides it into smaller segments, selects the most promising segments
and focuses on serving them. It designs a marketing mix using mechanisms under
its control: product, price, place and promotion. (Kotler et al., 1999:106) All marketing strategy
is build upon STP-Segmenting, Targeting & Positioning. (Kotler &
Keller, 2006: 310).
2.4.1
Segmentation
Market segmentation
is the process of dividing a market into groups of buyers with different needs,
characteristics or behavior, who might require separate products or marketing mixes.
The market consists of many types of customers, products and needs. The
marketer has to determine which segments offer the best opportunity for
achieving company objectives. (Kotler
et al., 1999:107)
Consumers are
grouped in various ways based on:
- Geographic factors (countries, regions, cities)
- Demographic factors (sex, age, income, education)
- Psychographic factors (social classes, lifestyles)
- Behavioral factors (purchase occasions, benefits sought, usage rates).
A market segment consists of consumers who respond in
a similar way to a given set of marketing stimuli. Every market has market
segments, but not all ways of segmenting a market are equally useful. In the
car market, for example, consumers who choose the biggest, most comfortable car
regardless of price make up one market segment. Another market segment would be
customers who care mainly about price and operating economy.
2.4.2
Targeting
Market targeting is the process of evaluating each
market segment's attractiveness and selecting one or more segments to enter. A
company should target segments in which it has a differential advantage over
its competitors; where it can generate the greatest customer value and sustain
it over time. A company with limited resources might decide to serve only one
or a few special segments; this strategy limits sales, but can be very profitable.
Alternatively, a company might choose to serve several related segments -
perhaps those with different kinds of customer, but with the same basic wants.
Or perhaps a large company might decide to offer a complete range of products
to serve all market segments. (ibid)
2.4.3
Positioning
Philip Kotler defines positioning as the act of designing
the company’s offering and image so that they occupy a meaningful and
distinctive competitive position in the target customer’s mind. (Kartajaya,
2010:19)
In order to build a solid positioning, Kartajaya (2010:20)
suggest that there are four criteria to consider:
- Customer
To the customers, a positioning should have positive
perception so the customer will have a reason to buy a product and thinks of it
as a value.
- Company
For the company, a positioning should reflect the
strength and competitive advantage of the company.
- Competitor
Compared to the competition, a positioning must be
unique so it cannot be easily imitated. This is done by differentiating the
company from the competition.
- Change
In changes, a positioning must be sustainable and
relevant to the changes in the business environment. If not, then the company
can do a repositioning.
A positioning statement has a meaningful definition that
is invaluable in giving focus and clarity to the formation and building of a
marketing strategy and tactics. Based on the positioning statement, a company
can create a tag line offer and use media to communicate to the customer so
they can remember it. Elements of positioning statements are: target market,
brand, frame of reference, points of differentiation, competitive advantage.
