Research On The Marketing Strategy Of K Company's Health Products in China Ⅱ
Nov 25, 2024
Chapter 2 Theory and Literature Review
2.1 PEST Analysis Model
PEST analysis is one of the most commonly used tools for analyzing the external environment of an enterprise. The external environment can be understood as the macro environment or the general environment, which often has a great impact on the formulation of enterprise strategies and development; PEST analysis comprehensively analyzes and evaluates the external environment of an enterprise from four perspectives: political environment (Politics), economic environment (Economic), social environment (Social) and technological environment (Technological), providing a basis for enterprises to make decisions. Fully understanding the external environment and applying it can make the decision of an enterprise more effective.
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(1) Political environment (Political)
The political environment includes two macro elements: politics and law. It mainly refers to the political system, political situation, policies and laws and regulations of a country or region, including fiscal policy, monetary policy, energy and environmental protection policy, population development policy, tax policy, seller protection law, public employment law, government organization attitude, competition rules, political stability, safety regulations, public employment policy, etc. Political and legal factors are interconnected and jointly affect the marketing activities of enterprises in the country and region.
(2) Economic environment (Economic)
The economic environment refers to the economic factors that affect the marketing methods and scale of enterprises. First, it includes the economic development status of the country or region, including the level of economic development, regional economic development differences, interest rate and monetary policy, government expenditure, industrial policy, industrial structure, business cycle stage, etc.; secondly, the income and expenditure factors of sellers, including the national income level, personal income source status, personal disposable income, consumer confidence and willingness, Engel coefficient, etc.
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(3) Social environment (Social)
The social environment includes two major aspects: social and cultural, such as income distribution, demographics, growth rate and age distribution, labor and social mobility, education level, religious beliefs, values, consumption customs, popular trends and fashions, and occupational and leisure attitudes.
(4) Technological environment
In modern society, science and technology are the primary productive forces. The development of science and technology plays a key role in the marketing work of individual enterprises and the economic development of the entire society. Science and technology can interact and work together with other environmental factors to bring opportunities and challenges to the marketing activities of enterprises. Specifically, the technological environment includes national scientific research expenditures, industrial technology level, the speed and efficiency of new inventions, the speed and life cycle of technological updates, energy utilization and costs, information technology revolution, Internet transformation, mobile technology revolution and other factors.
2.2 STP Theory
STP marketing theory refers to market segmentation, market targeting and market positioning. It was first proposed by American marketing expert Smith in the 1950s as a milestone marketing theory. Now, most major companies and professional institutions use STP theory to conduct research when conducting marketing analysis.
(1) Market segmentation
With the intensification of market competition, mass marketing, which was once accepted by most people, has gradually lost its charm and has been replaced by increasingly personalized and segmented marketing methods. In the contemporary market, effective marketing strategies must first divide the consumer market into meaningful and measurable groups. It should be noted that if a group meets the conditions to become a market segment, it should meet the following criteria: belong to the same group; be different from other market segments; be a vital group of people; have similarities in attitudes, behaviors and economic conditions and remain stable and can be repeated over time. Generally, it is based on several criteria such as population segmentation, consumer psychology segmentation, value segmentation, behavior segmentation and demand segmentation.
(2) Target market selection
Target market selection refers to the process of selecting the most worthy market segment to enter after careful evaluation of each market segment. The core issue for corporate marketing strategy is "who" is interested in my product, or "where" my consumers are. At present, many corporate brands are facing increasingly fierce competition and the market is becoming increasingly narrow. Therefore, the marketing strategy of an enterprise should tend to one or several market segments, and only by targeting can the marketing effect be improved. After selecting the target market, there are three market coverage strategies, namely undifferentiated marketing, differentiated marketing and niche marketing (gap-filling marketing). When selecting a target market, the first thing to consider is the competitiveness of the company's products or services in this market, that is, how attractive it is to customers; the second is to pay attention to the size and growth potential of the market segment; in addition, the company's resources and marketing goals are also factors that need to be considered.
(3) Market positioning
Market positioning is how target customers define your company compared to other competing companies, which is actually the position of the company's products or services in the minds of consumers. The unique selling proposition is a statement of the uniqueness of the brand in a concise way, which can lay a solid foundation for the communication of market positioning. Excellent market positioning should focus on segmenting customers, provide unique value benefits to target customers, and be able to distinguish from competitors. Its uniqueness makes it difficult for competitors to imitate, thus ensuring that the company obtains continuous market share and profits in the competition.
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2.3 4PS Marketing Theory
The 4PS marketing theory is one of the most classic marketing theories. Its concept was first proposed in the mid-20th century. In 1967, Philip Kotler clarified the marketing mix method with 4Ps as the core in his best-selling book Marketing Management: Analysis, Planning and Control. 4P refers to product, price, channel and promotion:
(1) Product
Products include both tangible products and intangible products such as services. From a marketing perspective, products refer to anything that can be provided to consumers to meet their needs; it includes products, services, people, organizations, concepts or their combination. The overall product concept proposed by Kotler includes five levels: core product layer (Core Product), basic product layer (Basic Product), expected product layer (Expected Product), extended product layer (Augmented Product), and potential product layer (Potential Product).
Product strategy is the core of the marketing 4P combination and the cornerstone of price strategy, channel strategy and promotion strategy. Therefore, enterprises should attach great importance to and invest in products, formulate scientific product combination strategies, optimize product combination analysis, study product life cycle, enhance brand and perfect packaging, and constantly innovate to meet the different needs of consumers.
(2) Price
Price refers to the price when customers purchase products. Any product has a price. Price is an important factor for buyers and sellers to complete transactions. Price has two concepts: narrow and broad. Narrow price refers to the amount paid by consumers when purchasing products; broad price includes not only the money paid, but also costs such as time and energy.
Price strategy directly determines the profitability of enterprises. Whether the price is reasonable directly affects the sales of products. It is both a means to achieve the marketing goals of enterprises and the main way to compete in the market. Therefore, enterprises should attach importance to price, formulate different price strategies according to different marketing purposes, and adjust them in time according to changes in market conditions and consumer acceptance.
3) Channel
Channel refers to sales channel or distribution channel; it refers to the sum of all links and driving forces experienced in the whole process of goods or services from producers to consumers. The starting point of the sales channel is the producer, and the end point is the consumer and user. The intermediate links include wholesalers, retailers, agents, and storage and transportation companies.
The value and significance of the distribution channel lies mainly in promoting sales, sharing risks, logistics distribution, information feedback, etc.
