Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

21. Developing Innovative
    Marketing Plans

Text © The McGraw−Hill

Companies, 2002

Developing Innovative Marketing Plans 609

qualitative and quantitative screening criteria—to define what business and mar-

kets the firm wants to compete in—can help eliminate potential strategies that are

not well suited for the firm.

Another useful aid for zeroing in on a feasible strategy is S.W.O.T. analysis—

which identifies and lists the firm’s strengths and weaknesses and its opportunities

and threats. A good S.W.O.T. analysis helps the manager focus on a strategy that

takes advantage of the firm’s opportunities and strengths while avoiding its weak-

nesses and threats to its success. These can be compared with the pros and cons of

strategies that are considered. For example, if a firm is considering a strategy that

focuses on a target market that is already being served by several strong competi-

tors, success will usually hinge on some sort of competitive advantage. Such a

competitive advantage might be based on a better marketing mix—perhaps an inno-

vative new product, improved distribution, more effective promotion, or a better

price. Just offering a marketing mix that is like what is available from competitors

usually doesn’t provide superior value—or any real basis for the firm to position or

differentiate its marketing mix as better for customers.

Ideally, the ingredients of a good marketing mix flow logically from all the rele-

vant dimensions of a target market. The market definition and segmenting

approaches we discussed in Chapter 3 help the marketing manager identify which

dimensions are qualifying and which are determining in customers’ choices.

Product benefits must match needs. If and how customers search for information

helps to define the promotion blend. Demographic dimensions reveal where cus-

tomers are located and if they have the income to buy. Where customers shop for

or buy products helps define channel alternatives. The value of the whole market-

ing mix and the urgency of customer needs, combined with an understanding of

what customers see as substitute ways of meeting needs, help companies estimate

price sensitivity.

It would seem that if we fully understand the needs and attitudes of a target mar-

ket, then combining the four Ps should be easy. Yet there are three important gaps

in this line of reasoning. (1) We don’t always know as much as we would like to

about the needs and attitudes of our target markets. (2) Competitors are also try-

ing to satisfy these or similar needs—and their efforts may force a firm to shift its

Marketers for Ariel stain remover

realized that people who travel

have special needs, so they

developed a travel-size package

and advertising that clearly

communicated their “wherever

you get a stain” positioning.

Marketing mix flows

from target market

dimensions