Marketing Strategies: 3rdSet

ClosedExplanation 

The Centres in the Tree diagram are primary categories of commercial focus derived from the modes of engagement in the market.

Each Centre, epitomized in a 2-3 word phrase, refers to diverse business choices flowing from a set of interrelated principles. Understanding the approaches to interacting-for-benefit is therefore taken for granted. Channels between Centres define alternative and complementary business strategies as listed.

Much more detail can be found in marketing textbooks.

 

 

L5M Focus: Customer-is-king attitude
L4B Focus: Customer convenience

Notes:

  • Company policies include: liberal refund or credit rules for product return; specific and realistic unconditional guarantees; support for users via clubs/magazines; privileges for loyalty and heavy use; effective complaint handling; providing generous space/facilities/time; &c.
  • Customers require such policies to be supported by a willingness of staff to meet their basic human needs and wishes. Requirements include: getting attention quickly and a prompt response; being treated with courtesy and helpfulness; having the purchasing mechanics eased; meeting non-specific cultural expectations; &c.
L5M Focus: Articulated customer wishes
L3P Focus: Product adaptations

Notes:

  • Customer needs/wishes/demands can be discovered through surveys, focus groups, market research and analyses—products can then be adapted. The adaptation may be trivial from a functional viewpoint, and is rarely truly innovative.
  • Ideally, no selling is required because the customer actively buys what is wanted and suits their needs. Information technology can make customisation far more individualised.
L5P Focus: Service in a form that is more-than-money-can-buy.
L4B Focus: Customer gratification

Notes:

  • It takes time to get to know someone, and personalization of the relationship can be emotionally demanding. Pragmatically, it may be necessary to focus on the best customers and let unrewarding customers go.
  • Customers recognize manipulation and dishonesty and feel disgusted. Genuineness precludes pressure or exploitation.
L5P Focus: Attention to the individual
L3M Focus Likely prospects

Notes:

  • The decision-maker who decides on purchase (e.g. CEO, techies, end-users) must be reached. Direct sales forces or commissioned representatives must be employed.
  • Because this channel bypasses the value-for-money Centre (L4), it is easy for customers to be sold products that do not suit them, that they cannot afford, or that they do not want. Unprepared individuals are especially vulnerable to persuasive selling techniques.
L5M Focus: Pressures on the customer
L5P Focus: Involvement with the customer

Notes:

  • Customers are viewed as potentially life-long partners whose business pressures and needs must be known in detail. If possible, services/products are integrated into customer sales and provided in a way that discourages use of substitutes or alternative suppliers.
  • Unusual arrangements include: open exchange of information or staff; fees in accord with customer results; sacrificing to satisfy; &c.

Originally posted: July 2009