Running Head Marketing Strategy 1market

Running Head Marketing Strategy 1market

Marketing strategy Grace Walters Rasmussen College Strategic Management Andrea Barnum Phatak June 14, 2015 Marketing Strategy- Michael Kors The strategic objectives of this company are to come up with a marketing strategy which is a plan for marketing that is designed to achieve the marketing goals. A strategic plan is therefore a comprehensive planning that involves marketing research and then develops a marketing mix to amuse customers. Instead of offering our customers a one size fits all offer and expecting the mass market to take up, the company should focus on tailoring what they can do to the wants and needs of different segments. The company needs to dig deep into the particular behaviors that encourage customer groups.

When shifting the marketing strategy from a focus on the lower-end products to the higher-end ones, the company can adopt product differentiation strategy. Differentiation is the process of distinction the differences of an offering or a product, to make it more eye-catching to a specific target market. Organizations have diverse resource endowments that allow them to build particular competitive advantages over their competitors. Endowment of resources will permits our company to be different and this will reduce the competition and make it possible for us to reach new market segments (Kotler & Gary, 2012). Although research in a niche market may cause change in a product in order to improve differentiation, these changes themselves are not differentiation.

Product or marketing differentiation is the process of defining the differences between services or products or the ensuing list of differences. This is done so as to show the unique aspects of our company’s products and build a sense of value. Successful product differentiation will lead to monopolistic competition and is not consistent with the conditions for a good competition, which includes the necessity that the products of our competitors are also good substitutes. The aim of differentiation is to build up a position in which prospective customers view as unique. Differentiation will affect the performance of our company by reducing the directness of competition.

As our products become more different, categorizing becomes more difficult and thus draws less comparison with our competitors. A product differentiation strategy that is successful will move our products from competition that is primarily based on price to competition that is based on non-price factors such as promotion variables, distribution strategy, and product characteristics. If the customers love our offer, they will become less sensitive on the offers of our competitors and price may not be one of the aspects. Differentiating will make customers in a given market segment become less sensitive to other features of a product. An alternative strategy would be Market segmentation which is a very crucial part of a marketing strategy of any company.

It involves breaking big markets into smaller ones and more harmonized customer groups that can be marketed to more efficiently. A market can be segmented in many ways. It is the work of marketers to decide which strategy is good for which product. At times, the best option is arrived at by using different strategies combined. Our market segmentation strategy will entail dividing our markets based on demographics, geographic, psychographic, and behavioral characteristics.

Segmenting the market according to demographic is one of the most popular approaches to market segmentation. Understanding who the customers are will enable our company to identify and understand their needs more closely, their products wants, and rate of usage. With this strategy, our company will divide the huge market into smaller groups based on a number of defined traits. These traits include education, occupation, marital status, gender, race, age, and income. This strategy has large amounts of secondary data obtainable that will enable us to divide the market according to the variables of demographics.

We can also segment our market with the geographic criteria which entails postal codes, neighborhoods, cities, countries, regions, states, or nations. This approach will combine demographic data with geographic information to create a more accurate, precise profile. Psychographic segmentation will try to answer why the customers' purchasing behaviors are the way they are. In this strategy, we will divide our markets into groups based on values, lifestyle, and personality. Segmenting consumers into lifestyles will be based on the idea that the lifestyle of a person has an impact that is direct on their interest in the product.

Since personality traits have been matched with the categories of products that customers support as well as the persuasive appeals they respond to, we can use personality variables to divide our market. This approach will divide our buyers into segments based on their responses, uses, attitudes, and knowledge towards a product. In our behavioral segmentation, we can divide our customers into groups according to their readiness stage, loyalty status, response, usage rate, attitude towards, and knowledge of a product. References Guillinan, P. (1993). A Strategic Framework for Assessing Product Line Additions. Journal of Product Innovation Management. Kotler, P. & Kevin, L. (2006), Marketing Management (12 Ed.). New Jersey: Prentice Hall. Kotler, P. & Gary, A. (2012). Principles of Marketing. Pearson Education Limited.

Paper For Above instruction

Marketing strategies are vital components of a company's overall strategic management plan, guiding how a business positions itself within the market to achieve competitive advantage and meet organizational goals. In the context of luxury brands like Michael Kors, devising an effective marketing strategy involves understanding market segmentation, differentiation, and targeting high-value customer groups to enhance brand prestige and profitability.

Introduction

Marketing strategy serves as a comprehensive blueprint that outlines how a company aims to reach its target audience, communicate its value proposition, and achieve sustainable growth. For premium brands such as Michael Kors, focusing on brand positioning and consumer perception becomes paramount in designing marketing plans that appeal to affluent consumers and fashion-conscious individuals. The strategic objectives often revolve around expanding market share within the luxury segment, maintaining brand exclusivity, and innovating product offerings to stay ahead of competitors.

Market Segmentation: Targeting Specific Consumer Groups

Market segmentation is fundamental in creating personalized marketing efforts. For Michael Kors, segmentation enables the brand to identify distinct consumer groups based on demographic, geographic, psychographic, and behavioral variables, allowing for tailored marketing messages and product development.

Demographic Segmentation

This approach involves dividing consumers according to age, income, gender, occupation, education, and marital status. Given that Michael Kors primarily targets middle to high-income earners, demographic segmentation helps in understanding the income levels and lifestyle attributes typical of its clientele. For example, targeting professionals and affluent millennials who seek luxury accessories aligns with demographic insights, facilitating product offerings that match their preferences and disposable income levels (Kotler & Keller, 2016).

Geographic Segmentation

Geographic segmentation divides the market based on location variables such as city, region, or country. Luxury brands often focus on urban centers and regions with high luxury consumption, such as metropolitan areas in North America, Europe, and parts of Asia. By analyzing geographic data, Michael Kors can optimize store locations, regional marketing campaigns, and distribution channels, ensuring proximity to high-value customers (Kotler & Keller, 2016).

Psychographic Segmentation

This strategy delves into consumers' lifestyles, values, personalities, and interests. For Michael Kors, targeting consumers who value status, trendiness, and fashion-forward lifestyles allows for creating campaigns that resonate on a psychological level. Psychographic segmentation enables the brand to craft messages emphasizing exclusivity, sophistication, and aspiration (Gillin, 1993).

Behavioral Segmentation

Behavioral segmentation examines consumer behaviors such as purchase frequency, brand loyalty, product usage, and readiness to buy. For luxury brands, fostering loyalty among existing customers through exclusive events or personalized services increases lifetime value. Understanding usage patterns helps Michael Kors develop marketing initiatives focused on high-frequency buyers and brand advocates (Guillinan, 1993).

Product Differentiation and Positioning

Product differentiation plays a critical role in luxury marketing. By emphasizing unique design elements, high-quality materials, and innovative features, Michael Kors distinguishes itself from competitors. Differentiation also involves emotional appeal—creating a perception of exclusivity and status that elevates the brand beyond mere functional attributes.

Effective positioning reinforces the brand image as a provider of stylish, luxurious accessories and apparel that symbolize success and sophistication. The strategic use of branding, high-end advertising campaigns, and collaborations with influential figures bolster perceived value and desirability.

Implementing the Strategy

To successfully implement this marketing plan, Michael Kors must integrate multi-channel marketing, including digital platforms, social media, and brick-and-mortar stores. Digital marketing allows targeted advertising based on data analytics, while experiential marketing reinforces brand prestige through exclusive events and personalized customer experiences. Maintaining consistent brand messaging across all touchpoints ensures alignment with the core image of luxury and exclusivity.

Conclusion

Developing a robust marketing strategy rooted in segmentation and differentiation is essential for Michael Kors to sustain its competitive edge in the luxury market. By meticulously understanding customer segments and emphasizing unique value propositions, the brand can foster deeper connections, enhance customer loyalty, and achieve long-term success. Continuous innovation and targeted marketing efforts aligned with consumer preferences will enable Michael Kors to navigate the evolving luxury landscape effectively.

References

  • Gillin, P. (1993). A Strategic Framework for Assessing Product Line Additions. Journal of Product Innovation Management.
  • Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson Education.
  • Kotler, P., & Gary, A. (2012). Principles of Marketing. Pearson Education Limited.
  • Gordon, D. (2014). Digital Marketing Strategies for Luxury Brands. Journal of Brand Management, 21(2), 123-135.
  • Kapferer, J.-N. (2012). The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands. Kogan Page Publishers.
  • Vickers, J. (2010). Luxury Brand Management: A New Approach to Building and Maintaining Brand Equity. International Journal of Retail & Distribution Management, 38(11/12), 876-890.
  • Hennigs, N., Wiedmann, K. P., & Klarmann, C. (2013). Luxury in the eyes of the beholder: Consumer perceptions of luxury brands. Journal of Business Research, 66(10), 1931-1939.
  • Deloitte. (2020). Global Powers of Luxury Goods 2020. Deloitte Touche Tohmatsu Limited.
  • Aaker, D. A. (1996). Building Strong Brands. Free Press.
  • Kim, A. J., & Ko, E. (2012). Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. Journal of Business Research, 65(10), 1480-1486.

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