13. Marketing strategy and tactics: basic steps of the plan of marketing
A marketing plan is the central instrument for direction and coordination of all marketing efforts.
The strategic marketing plan lays out the target markets and the value proposition that will be offered based on the analysis of the best market opportunities.
The tactical marketing plan specifies the marketing tactics including product features, promotion, merchandising, pricing, sales channels and service.
The basic steps of a plan of marketing are the following:
Mission statement and main goals (long-term objectives)
Situation SWOT analysis (sales, costs, competitors, market size and growth)
Target market→ MK strategy (Ansoff matrix, marketing warfare)→ implementation tactics
Financial projections (sales and expense forecast)
Implementation controls (planning for monitoring and evaluation)
14. Channels of distribution (affecting factors, advantages, limitations, approaches to policy).
Channels of distribution are routes from producer to customer.
A marketing channel (or distribution channel)—a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.
A company’s channel decisions directly affect every other marketing decision. Pricing depends on whether the company works with national discount chains, uses high-quality specialty stores, or sells directly to consumers online. The firm’s sales force and communications decisions depend on how much persuasion, training, motivation, and support its channel partners need. Whether a company develops or acquires certain new products may depend on how well those products fit the capabilities of its channel members. Distribution channel decisions often involve long-term commitments to other firms.
How distributer reduces the number of channel transactions.
Benefits of Reducing the Amount of Distribution Channels:
While manufacturers are always looking to increase volume sales, it actually might benefit companies to reduce the amount of distribution channels. The manufacturer can focus on maximizing the efficiency of one distribution channel, reducing cost per unit and potentially increasing profit, even though unit sales may be lower.
Advantages & Disadvantages of Marketing & Sales Intermediaries:
+ customer convenience, + financial support, + costs and time saving, + better marketing, + boost sales, + valuable information; - lack of (communication) control, - loss of revenue and product importance.
The Advantages & Disadvantages of Direct Marketing:
+ request responses from potential customers, making the results trackable and allowing companies to quickly determine if the campaign is successful. Beneficial to test consumer responses with a small campaign before scaling up and launching a full, expensive campaign. Builds brand loyalty as customers enjoy receiving information on deals and discounts, and easily become repeat customers.
- demand from consumers to end unsolicited contact from companies. Generate poor quality leads and fail to bring a high number of repeat customers.
Advantages & Disadvantages of Industrial Distributors:
-/+ Cost and speed, + inventory, - innovation, + staff and administrative training.