What exactly is a marketing strategy? Procedure for planning / simple case study
We will explain the basic concept / framework of marketing strategy as well as the planning procedure. We have summarized in an easy-to-understand manner on how to use marketing strategies and how to succeed by utilizing it, a successful digital marketing company, and examples of notable companies.
1. What exactly is a marketing strategy? Procedures and frameworks
2. Examples will help you understand! Strategy for marketing
3. Points of success in marketing
-What exactly is a marketing strategy? Procedures and frameworks
In a nutshell, marketing strategy involves determining "who, what, for what price, and how to provide it."
Each procedure is described in more detail below.
The marketing strategy defines who the customer is, how the company or its products are to be perceived by the customer through STP (Segmentation Targeting Positioning), and to the customer through the marketing mix (4P). Plan how you will provide what value (product) at what price (price) and how you will provide it (distribution channel), as well as how you will build a relationship (promotion) with your company and your product.
Frameworks you should know
The core frameworks for marketing strategy planning, STP and 4P, are explained briefly below.
--STP (Segmentation Targeting Positioning)
Any efforts will be out of focus and blurred if it is unclear what type of person you want to serve as a customer in terms of attributes such as gender, age, place of residence, and behavioral characteristics. If you can't distinguish your company or your products from the competition, you'll be buried in competitors and products with no features, and you won't be preferred.
--Marketing mix (4P)
Following the selection of the STP, the four Ps of marketing elements under the company's control, "Product," "Price," "Place," and "Promotion," should be appropriately chosen. I'll put them together. A marketing mix is the examination of such an appropriate combination of 4P.
Each of the four Ps is frequently planned separately, but in marketing strategy, compatibility in two senses is critical. The first is the compatibility of the target market's (customers') needs and behaviors with each component of the marketing mix. Companies must develop and implement product strategies, pricing strategies, advertising / promotion strategies, and distribution channel strategies that are appropriate for their target customers. The second consideration is the compatibility of the four elements of the marketing mix. You cannot expect great results if you set prices, advertise / promote, and choose channels that are inconsistent with the product concept and positioning.
-How to plan a marketing strategy and how to organize it
The following is a rundown of the standard procedures for developing a marketing strategy.
1. Conduct market research (marketing research)
When considering STP and 4P, what types of consumers exist in the market and in what quantities, and how do you see the same type of products / services as the products / services you are considering?, Gather objective data.
2. Market categorization
The market is subdivided based on some classification axis, with a focus on demographic factors such as gender and age, geographical factors such as place of residence, and differences in behavioral characteristics and psychological factors.
For example, "male office worker in his early twenties living alone (segment by gender, age, family structure, occupation)" and "office worker interested in soccer who commutes by train to a workplace in the city center (occupation / residence)." We focused on the common needs within each group by categorizing them into homogeneous groups (segments) based on a combination of attributes, behavioral characteristics, and psychological factors such as "location, place of work, mode of commuting, and segments based on hobbies and tastes." You'll be able to plan strategies.
3. Targeting
Prioritize multiple groups classified by segmentation based on their affinity for their products and services, group size, high purchasing power, and so on, and decide which segment to target (whether or not to target). Consider.
Because each segment classified by segmentation should have unique characteristics, the strategies for dealing with each segment will naturally differ. Because it is uncommon to be able to secure sufficient resources and personnel to take appropriate measures for all individual segments, segments that are relatively unpromising are frequently cut off, or consideration and response are postponed. We will continue to think about future strategies that will target promising markets.
4. Positioning
Once you've decided on the type of consumers you want to target, what are the factors that the targeted consumers consider important when selecting products/services, and what are your perceptions of your company, competitors, and products/services? We will consider how your company and its products and services are positioned among competing products, services, and alternatives, as well as what kind of existence they should have.
5. The marketing mix (4P)
Following the selection of the STP, the marketing elements that the company can control in order to achieve the desired results in the target market are "Product," "Price," and "Place." We will properly combine the four Ps of "Promotion." A marketing mix is the examination of such an appropriate combination of 4P.
Each of the four Ps is frequently planned separately, but in marketing strategy, compatibility in two senses is critical. The first is the compatibility of the target market's (customer's) needs and behavior with each element of the marketing mix, and the second is the compatibility of the four elements of the marketing mix. If any of the product strategy, pricing strategy, distribution channel strategy, and promotion (advertising / sales promotion) strategy does not match the target customer, or the product concept and price, distribution channel, promotion (advertising / sales promotion) You can't expect great results if the elements are at odds with each other.
6. Execution / evaluation
Even when STP and 4P are adjusted and implemented while utilizing marketing research results, it is not always possible to consistently achieve marketing goals. Strategic debacles and shifts in the competitive environment can also be incompatible with changes in consumer needs, behaviors, and lifestyles.
To achieve the marketing objectives, we will establish KPIs for each component of the marketing mix, monitor them as needed even after the marketing strategy has been implemented, and regularly assess positioning, segmentation, and targeting based on the results. The strategy must be reviewed and the trajectory must be corrected.
-Examples will help you understand! Strategy for marketing
Let us use the analysis of Lifenet Life and Laxus STP, 4P as an easy-to-understand example to understand the basic idea and flow of marketing strategy.
Lifenet Life Insurance Company, Japan's first Internet-only life insurance company, was founded in 2008 and has grown steadily since then.
[Segmentation Targeting Positioning (STP)]
According to Mr. Deguchi, one of the company's founders, Lifenet Insurance wants to halve insurance premiums and create a society where young people can have and raise children with peace of mind. It is a business that began in (founding philosophy). The company's main target, as stated clearly in its founding philosophy, is "young people who intend to have a family in the future but do not want to bear high insurance premiums".
Based on this, segmentation appears to be centered on age and income levels, as well as awareness of family formation events such as marriage and childbirth. On the other hand, for life insurance products with no shape, it is unavoidable to reduce operating expenses in order to reduce insurance premiums, so various procedures such as promotion and sales, content changes after contracts, and insurance money payment are required. Has no choice but to do it through the Web, avoiding "people" as much as possible. As a result, the target customer is not hesitant to make a purchase through the Web and subsequent procedures, and even if there is something he does not understand, he is expected to be able to investigate, understand, and judge for himself without relying on "people." It appears that it will be completed.
The company's management philosophy is "honest, easy to understand, cheap, and convenient" as a positioning for these target customers. As stated in the above-mentioned founding philosophy, the appeal is for "cheap insurance premiums," as well as "convenience" in that applications and post-contract procedures can be performed 24 hours a day, 365 days a year, and for explanations on the Web. The positioning is also extremely clear, such as providing products that embody "ease of understanding," which you can understand and judge by looking through and understanding and judging unclear points on your own rather than asking the seller to explain.
To begin with, existing life insurance companies primarily sell through "people" such as sales staff and agents, so they are highly unique when it comes to selling and procedures via the Web, as well as the payment of insurance premiums. It can be stated that the position is extremely effective in terms of competition among insurance companies, as it has established a superior position in the restraint criteria, which is important for households.
-[4P Marketing Mix]
To embody the "easiness to understand" that we have set as the above philosophy, we have been steadfastly adhering to a simple design since our inception. For example, "Insurance for Kazoku (fixed-term death insurance)," which has been available since the company's inception, specializes in "protecting the family left behind in the event of an emergency," and you can join by simply selecting the insurance amount and insurance period. It has evolved. Similarly, the requirements for receiving insurance claims and benefits are limited for other products, so the only factors to consider when joining are the type of situation and the amount of security required. It has been completed.
Similarly, in terms of pricing, by limiting subscription channels and procedures to the Web, it is possible to reduce operating expenses, as well as by creating insurance products of the "discard type" with no maturity insurance money. It embodies the concept of "cheapness," which is also stated in management philosophy.
On the other hand, the channel (Place), which is a distribution channel, is handled by agents such as insurance shops in order to reduce anxiety about contract procedures without meeting anyone, as a general rule, while using the Web. In addition, we accept consultations by calling the call center or chatting online.
Promotion is accomplished through Web communication, such as advertising on external websites such as portal and search sites, disseminating information from official accounts on various SNS, and operating the web media "Lifenet Journal Online." In addition to directing consumers who are considering insurance to their own website, we also place advertisements on mass media such as TVCM in order to raise awareness. Furthermore, the company reaffirmed its insurance coverage, despite the fact that policyholders (customers) have no shape and have few opportunities to use them throughout the contract period due to the long contract period. We hold "contact fairs" all over the country to provide a sense of touch by interacting directly.
LIFENET INSURANCE
LIFENET INSURANCE provides 4Ps in an appropriate combination in this manner, ensuring that there is no mutual contradiction or discrepancy, based on STPs that are clear from the company's management philosophy. The customer base that was initially targeted appears to have been limited in terms of market size, and while there was a tendency for growth to slow down at one point, the company's business performance trends have led to increased awareness and a lead to the website. It can also be seen that recent efforts, such as the site redesign, are yielding results. Because of Corona's illness, attention has been focused on non-face-to-face sales via the Web, while other insurance companies have been forced to suspend sales (face-to-face sales), and business performance has continued to expand as a strange currency. It is possible to argue that it is necessary to continue to pay close attention to trends.
Laxus
Laxus Technologies (hereinafter referred to as Laxus), which operates a subscription-based luxury brand bag rental business " Laxus ", has continued to grow in terms of membership and business performance since the company's inception in 2015.
[Segmentation Targeting Positioning (STP)]
Luxury brand bags cost hundreds or even thousands of dollars each, making them out of reach for many consumers. Bags, on the other hand, are one of the fashion items that, like clothes, are used according to the season and the scene, so luxury brand bags with a strong presence are also an object of admiration for women.
According to the company, it has fashion needs (wants) and household budget constraints, such as "I want to use various bags properly according to the season and scene" and "I want to use luxury brand bags (I can't buy them easily due to household accounting restrictions)". We can say that by introducing a subscription model, we are presenting solutions to difficult problems.
Laxus segmentation is based on attributes (gender and age), economic factors (disposable income), and the values of using and owning luxury brand bags. The target appears to be women, primarily in their mid-20s and 40s, who are unconcerned about owning while appreciating the value of using. There is also a service with a similar business model of renting with a subscription model, but while we also handle low-priced bags and accessories, Laxus is a subscription that specializes in luxury brand bags. Because it is a non-service service, it can be said to have a distinct positioning.
[4P Marketing Mix]
Laxus' product is a luxury brand bag (approximately 30,000 items from 57 brands at the time of writing), but it is a genuine product appraised by a professional appraiser, and while it has moderate usability, it must be cleaned before use. Things appear to be in good condition, such as being delivered. Furthermore, as will be explained later, the bag that arrives at home after application is delivered in a special cosmetic box, but the design of the cosmetic box is printed with famous paintings, etc., a mechanism that creates a sense of luxury even before opening. It is also an important point to mention.
The price is a monthly subscription service of 6,800 yen (excluding tax), but when you download the app, you will be given 10,000 points * 1 for 40 days in terms of daily amount, and an inquiry code from an existing user. Since you can get thousands of points by getting the premium model, the actual cost burden will occur from the second month at the earliest, and by adopting the freemium model, you can also reduce the psychological burden in the trial. It is connected.
Although additional costs (packing fee (1,000 yen / time)) are to be incurred for the second and subsequent exchanges every month, psychological resistance to these additional costs is due to the consideration for the exchanges that you have applied for. The feeling seems to be limited.
In terms of location, both the Web and the smartphone app are ready for registration and application interface, but as previously stated, by clearly indicating the point grant, it is directed to the company's smartphone app, so it is practically equivalent. The smartphone app appears to be the only point of contact. Furthermore, the bag you requested is delivered to your home, and the shipping package includes a return slip and a sticker used when closing the box, which you can use when returning it. It appears that the system is designed to reduce stress as much as possible during the application, receipt, and return of products, such as simply bringing it to the nearest convenience store.
In terms of promotion, while efforts are made to gain recognition, such as TV commercials, as previously mentioned, points are given to registrants through introductions from existing users in order to increase the number of actual users. It appears to be largely due to mechanisms that encourage word-of-mouth, such as granting.
However, giving inexperienced users an experience of using luxury brand bags, such as giving points through application downloads and referrals, can be used for free trials, and expanding the customer base is not possible. On the other hand, it can be a factor that causes inventory to become scarce. Laxus also provides a service called "Laxus X" that allows consumers who own luxury brand bags to rent them for a fee, and it is cost effective for owners to have a bag that was previously sleeping at home. It has the advantage of transforming into a value-creating entity, which saves procurement costs and leads to inventory acquisition. Converting such a general customer's property to rental inventory entails risks such as how the user will use it (damage beyond the range that can be cleaned) and whether the original owner will be returned when necessary. As a result, whether or not the morals of the users can be maintained and secured, in addition to the quality of the products themselves, including the company's inventory, will be factors influencing the growth of "Laxus" itself.
As previously stated, some companies provide similar services, but the recognition situation is improving due to the advancement of advertisements in the mass media, and similar services specialize in handling luxury brand bags. The company is expected to grow steadily in the future, thanks to factors such as the fact that there are no direct collisions with the company's services.
Adult females, the primary target of Laxus, are also more environmentally conscious than men and other generations, particularly those who are originally raising children. With the growing social demand for SDGs * 2, awareness of environmentally conscious behavior has gained support from a broader range of people in recent years, and the company has made the core target requirement "ethical." In addition to "Aiming for Consumption * 3," the company is responding to social demands by promoting SDGs in target group promotion and appealing that using the company's services will contribute to environmental problems. I'm going to change it to a message to do. It can be stated that the company's services will grow as a result of its quick and flexible response to such changes in the social environment.
* 1 At the time of writing, service content is information.
2 SDGs are an abbreviation for "Sustainable Development Goals," and they are international community goals that were adopted at the United Nations Summit in September 2015. The SDGs' "17 goals and 169 targets" on economic, social, and environmental issues necessitate active efforts from both developing and developed countries.
3 Ethical is an adjective that was derived from the words "ethical" and "moral." In recent years, it has become clear that environmental conservation and social issues are taken into account in social activities such as consumption.
-Marketing strategy, points of success
The two cases mentioned above are developing businesses with completely different customer bases and products. However, both companies cut out consumers who are considered to have distinctly different attributes and needs from the entire market based on their own classification axis, and are different from competing products and companies, including their own products and alternatives to their products and services. We have won the support of our customers by positioning and providing them as different, unique and attractive entities. In addition, it seems that the products / services, the price as consideration, the provision process, and the way of communication for expanding awareness and promoting the use are set so as not to upset the mutual appropriate balance. ..
In this way, it can be said that the success or failure of a marketing strategy depends on the balance between target setting, positioning of the company and its products, and 4P .
Extracted from:
Tomonori Inoue
Nisseikiso Research Institute
Senior Researcher, Lifestyle Research Department
Japan
1 Comments
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