UnitNine Marketingstrategyandplan Objectives Getthestudentstobefamiliarwiththeconceptofmarketingstrategy Cultivatethestudents abilityoforganizing Helpthestudentsgraspthetechniquesforpickingupimportantdetails SectionA IntroductionStrategiesworkoutasplannedonlywhentheyareeffectivelyimplemented Therefore amarketingplanisawrittenstatementofamarketingstrategyandthetime relateddetailsforcarryingoutthestrategy Pre reading Beforereadingthefollowingpassage answerthequestions 1 Whatdoyouthinkismarketingstrategy 2 Doyouthinkthereareanyskillsinplanningmarketingstrategy TextTheImportanceofMarketingStrategyPlanning Theconventionalwatchmakers bothdomesticandforeign hadalwaysaimedatcustomerswhothoughtofwatchesashigh priced high qualitysymbolstomarkspecialevents likegraduationsorretirement AdvertisingwasconcentratedaroundChristmasandgraduationtimeandstressedawatch ssymbolicappeal Expensivejewelrystoreswerethemainretailoutlets Thiscommonlyacceptedstrategyofthemajorwatchcompaniesignoredpeopleinthetargetmarketthatjustwantedtotellthetimeandwereinterestedinareliable low pricedwatch Therefore theU S TimeCompanydevelopedasuccessfulstrategyarounditsTimexwatchesandbecametheworld slargestwatchcompany Timexcompletelyupsetthewatchindustry bothforeignanddomestic notonlybyofferingagoodproduct withaone yearrepairorreplaceguarantee atalowerprice butalsobyusingnew lower costchannelsofdistribution Itswatcheswerewidelyavailableindrugstores discounthouses andnearlyanyotherretailstoresthatwouldcarrythem MarketingmanagersatTimexsoonfacedanewchallenge TexasInstruments anewcompetitorinthewatchmarket tooktheindustrybystormwithitslow costbutveryaccurateelectronicwatches usingthesamechannelsTimexhadoriginallydeveloped Nevertheless otherfirmsquicklydevelopedawatchthatusedamorestylishliquidcrystaldisplayforthedigitalreadout TexasInstrumentscouldnotchangequicklyenoughtokeepup andtheothercompaniestookawayitscustomers ThecompetitionbecamesointensethatTexasInstrumentsstoppedmarketingwatchesaltogether WhileTimexandotherswerefocusingonlower pricedwatches Japan sSeikocapturedacommandingshareofthehigh pricedgiftmarketforitsstylishandaccuratequartzwatchesbyobtainingstrongdistribution Allofthisforcedmanytraditionalwatchmakers likesomeoftheonce famousSwissbrands toclosetheirfactories ThenSwitzerland sSwatchlauncheditscolorful affordableplasticwatchesandchangedwhatconsumersseewhentheylookattheirwatches Swatchpromoteditswatchesasfashionaccessoriesandsetthemapartfromthoseofotherfirms whoseadssquabbledaboutwhosewatchesweremostaccurateanddependable Swatchwasalsoabletoattractnewretailersbyfocusingitsdistributiononupscalefashionanddepartmentstores Thetotalsizeofthewatchmarketincreasedbecausemanyconsumersboughtseveralwatchestomatchdifferentfashions Theeconomicdownturnintheearly1990sbroughtmorechanges ConsumersweremorecostconsciousandlessinterestedinexpensivewatcheslikethosemadebyRolexthatwerethe in statussymbolafewyearsearlier Thereemergenceofvalue seekingcustomerspromptedTimextoreturntoitsfamousadvertisingtaglineofthe1960s Ittakesalickingandkeepsonticking Itspositionastheinexpensive but durablechoicehashelpeditstrengthenitsdistributionandhasgivenitalegupingettingshelfspacefornewproducts suchasitsIndiglolineofwatches Bytheturnofthecentury thetotalmarketforwatcheswasgrowingatonlyabout5percentayear Tosparkhighersalesofitslines Timexpushedtointroducemorewatchesthatcombinetime tellingandotherneeds Forexample itswomen sfitnesswatchincludesapulsetimerandon screendisplays anditsInternetMessengerwatch forabout 100andamonthlyservicecharge canreceiveshorttextmessages likeanalertfromthewearer sstockbrokerthatit stimetosell Ofcourse allthenewfeaturescanmakeawatchmorecomplicatedtouse soTimexisrefocusingontheneedforsimpleconveniencewithitsiControltechnology whichitpromoteswithtrendyadsandthetagline Ridiculouslyeasytouse Competitorsareonthemoveaswell Forexample CasiohasawatchwithaglobalpositioningsystemandSwatchisconsideringawatchwithasmartchipthatwillalsomakeitadebitcard Withsuchchangesalwaysunderway marketingstrategiesmustconstantlybeupdatedandrevised Dramaticshiftsinstrategy likethosedescribedabove maysurpriseconventional production orientedmanagers Butsuchchangesshouldbeexpected Managerswhoembracethemarketingconceptrealizethattheycannotjustdefinetheirlineofbusinessintermsoftheproductstheycurrentlyproduceorsell Rather theyhavetothinkaboutthebasicconsumerneedstheyserve howthoseneedsmaychangeinthefuture andhowtheycanimprovethevaluetheyoffertocustomers Iftheyaretoonearsighted theymayfailtoseewhat scominguntiltoolate Creativestrategyplanningisbecomingevenmoreimportant Domesticandforeigncompetitionthreatensthosewhocan tprovidesuperiorcustomervalueandfindwaystobuildstrongerrelationshipswithcustomers Newmarkets newcustomers andnewwaysofdoingthingsmustbefoundifcompaniesaretooperateprofitablyinthefuture andcontributetothemacro marketingsystem Post reading Answerthequestionsonthetext 1 Whataretheconventionalstereotypesofwatchandwatchads 2 WhatarethedifferencesoftargetmarketbetweenTimexandTex