marketing strategy-an overview 1 marketing strategy an overview

30
MARKETING STRATEGY-AN OVE RVIEW 1 MARKETING STRATEGY AN OVERVIEW

Upload: miguel-padilla

Post on 27-Mar-2015

246 views

Category:

Documents


4 download

TRANSCRIPT

Page 1: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

1

MARKETING STRATEGY

AN OVERVIEW

Page 2: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

2

Central Role Of Marketing

• Marketing is the process through which a firm creates value for its customers.

• After creating the value the firm is entitled to capture a portion of it for itself through pricing.

• To create value on a sustained basis there has to be a marketing strategy.

ACER
1.satisfies a need2. An "exchange" takes place.3. Marketing is constantly changing. Facials for men "metro-sexual".
Page 3: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

3

The Major Activities.

• Marketing strategy involves the following key activities.– Selecting a target market.– Positioning the product in the target

consumers mind.– Planning the market activities to achieve the

desired positioning.

ACER
1. concept of branding. "name", "nemonic"(trademark),"baseline".(big bazar v/s foodworld, merceded v/s maruthi, Air India maharaja or Asian paints "Gatu".2Dettol soap. Onida-devil.3. Potters generic Straties: cost leadership, differentiaition, focus.
Page 4: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

4

SCHEMATIC OF MARKETING PROCESS.

MARKETING ANALYSIS (THE 5C’S)CUSTOMERS COMPANY COMPETITORS COLLABORTORS

CONTEXT

MARKET SEGMENTS TARGET MARKET SELECTIONPRODUCT & SERVICE POSITIONING

MARKETING MIX (THE 4 P’S)PRODUCT PLACE PROMOTION

CREATING VALUE

CAPTURINGVALUE CUSTOMER

ACQUISITIONCUSTOMERRETENTION

PROFITS

SUSTAININGVALUE

PRICING

Page 5: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

5

5 C’s ANALYSIS

• Customer-----what needs to satisfy?• Company-------what skills, competency. To meet these needs?• Competition– who competes to meet. These needs?• Collaborates- who do we enlist to. Help? How ? what are their. Cost structures. More &. More seen as partners.• Context----------- restrictions/limitations. Cultural, technological, Legal. (Pest).

ACER
1. Levi Strauss Jeans- the orginal, losing out to upmarket offerings from Tommy Hilfiger and "Calvin Klien".2. Lotus notes biggest in spread sheets till micrsoft arrived.3Context Schedule "H" drugs frequire a docters prescription. Statutory warning on Cigs and Liquor. Kodak changes from film to digital Cultural-rice in N.India and wheat in S.India.
Page 6: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

6

Competition.

Page 7: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

7

Customer Needs.

Page 8: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

8

Company Competencies.

Page 9: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

9

Collaborators.

Page 10: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

10

EVERYTHING BEGINS WITH THE CUSTOMER

• MARKETING STRATEGY BEGINS WITH THE CUSTOMER.

• WHICH POTENTIAL CUSTOMER SHOULD THE FIRM ATTEMPT TO COVER. SEGMENT THE MARKET THROUGH DEMOGRAPHICS, GEOGRAPHIC, PSYCHOGRAPHICS (LIFESTYLE).

• WITHIN SEGMENT WHICH TARGET CUSTOMER GROUP, MASS MARKET, NICHES OR ONE-ON-ONE OR USER STATUS LIGHT OR HEAVY, PERFORMANCE V/S PRICE ORIENTED OR LOYAL V/S UNSATISFIED.

• THE PROCESS OF SELECTING THE SEGMENT AND THE TARGET MARKET IS CRITICAL.

• MARKET RESEARCH USED.

Page 11: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

11

Target Markets Other Issues.

• Firms comparative strength and WEAKNESS VS. competition.

• The STRATEGY (potter model).• The RESOURCES necessary.• The availability of APPROPRIATE collaborators.• Financial cost and returns.• Gap in the market, does not mean market in the

gap.• The USP. An explicit statement of the

positioning idea is critical.

ACER
1. sometimes companies start small and change marketing stratgy as thry grow, e.g.Amazon.com (only web site orders diverted to book publishers to supply, then own brick warehouses, today hosts other suppliers on their web e.g.TOYS RU. OR Nirma no jingle low cost word of mouth than as it grew Jingle and advertising.2. Sundrop-expanding niche. reva electric car Futurepositioning.comapnies can also make mistakes IRIDIUM-Motrola any where communication, heavy, expensive same rATES from the thar desrt toshoping mall in NY.
Page 12: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

12

THE MARKETING MIX.

• “THE ADVANTAGE OF SOLVING THE POSITIONING PROBLEM IS THAT IT ENABLES THE COMPANY TO SOLVE THE MARKETING MIX PROBLEM. THE MARKETING MIX-PRODUCT, PRICE, PLACE AND PROMOTION-IS ESSENTIALLY THE WORKING THE TACTICAL DETAILS OF THE POSITIONING STRATEGY”

P.KOTLER .Marketing management: analysis planning implementation and control.

• PRODUCT, PLACE (Channels of distribution), PROMOTION (Communication strategy) and PRICE.

Page 13: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

13

The Product.

• Not just the product but the total package of benefits to the customer. (The augmented product).

• Value can be delivered simultaneously by a number of vehicles.

• The physical product, the brand name, the company reputation, after sales support, financing, AVAILABILITY.

ACER
1.core product, expected product, augmented product. e.g.hotel room with basic ameneties is core product, basic product includes sheets towels, soap. Augmented product-fruits etc.
Page 14: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

14

THE PRODUCT-PRODUCT LINE

• PRODUCT LINE BREADTH. (different lines the company offers)

• PRODUCT LINE LENGTH. (how many products covering different price points.)

• PRODUCT LINE DEPTH. (How many types of a given product.)

• THESE ARE THE MAJOR PRODUCT LINE DECISIONS. IMPORTANT CONSIDERATIONS ARE:

• DOES THE PRODUCT SATISFY CUTOMER WANTS, IS IT PROFTABLE TO THE FIRM, DOES IT DIFFERENTIATE FROM THE COMPETITION, WILL IT COMPLIMENT OR CANNIBALIZE, IMPACT ON BRAND AND COMPANY REPUTATION.

Page 15: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

15

NEW PRODUCT DEVELOPMENT

• OPPORTUNITY IDENTIFICATION.

• DESIGN.

• TESTING.

• TEST MARKETING.

• PRODUCT LAUNCH/ROLLOUT.

• LIFE CYCLE MANAGEMENT.

Page 16: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

16

Place-distribution.

• A distribution channel is a set of INTERDEPENDENT organizations (networks) involved in the process of making a product or a service available for use customers.

• The generic tasks are product INFORMATION, PRODUCT customization, quality assurance, lot size, product ASSORTMENT LENGTH, breadth and width of product lines), AVAILABILITY, AFTER SALES service , logistics.

• The best approach is to develop “customer-driven” systems to design channel structures and management.

ACER
1. story of "velvette" Satchets.what is available sells.
Page 17: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

17

Channel-major Decisions.

• Two major decisions are:– Channel design.

• Involves both length and breadth.

– Channel management.• What polices and procedures to be used to ensure

the necessary functions are performed by the various parties.

ACER
1. waht service levels?waht other services are expected from the channel? e.g. collection of money.
Page 18: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

18

Channel Design.

• The QUESTION in channel design is whether distribution will be “direct" sales force),”indirect”(DISTRIBUTORS, STOCKIEST 3rd. Party), or “both”.

• Other s direct mail, web.• In many firms to reach the target segments a single

approach may not work.• Other considerations are.

– Account concentration (jet engines VS. toothpaste).– Degree of control.– Direct customer contact.

ACER
1. direct selling Eureka Forbes.Dabbawallah's of Mumbai, HP delivery different to installatio, web-Amazon.com, company owned showrooms "Titan watchs".
Page 19: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

19

Channel Design 2.

• The second part of channel design is breadth-how intense should the firms presence be in the market? "Within arms reach of desire” or more selectively?

• Will depend on.– Customer willingness to search and travel.– The unit cost of stocking (refrigeration, freshness).– Amount of selling and market development REQUIRED..

• Right structure changes over time.– Life cycle stage of product.– Emergence of new channels.– Changes in ENVIRONMENT (pest).

ACER
1.customer "search time/effort" ivolvement.2. new channels petrol pumps, highway reliance A1/A2eating place +Pump
Page 20: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

20

Channel Management.

• Channel conflict.– “We gave them a great product but its not sold correctly”.– “We developed the market but they where not able to supply.”– “They appointed a re-distribution STOCKIEST in my territory”.– Kerala boycott.

• Conflict arises due to lack of congruence in goals, or lack of agreement on who does what.

• Channel management is a day-to-day “WORK-O N-IT” task.

ACER
1.Power of retailer-wal-mart. Marks & Spencer.
Page 21: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

21

Promotions-marketing Communications.

• Promotions or COMMUNICATIONS with the consumer enables awareness of the product, knowledge of its FEATURES, INTEREST in purchasing, purchase EXPERIENCE, RE assurance and repeat purchase.

• Effective communications require an integrated plan combing, personal selling and non-personal ones like advertising, sales PROMOTION TRADE fairs, cell phones, packaging) and public relations.

ACER
1. Task is to keep brand relevant. Coca Cola since 1883 and relevant in all countries of the world except perhaps Nort korea.2. Brand launch of Scorpio, cavalcade, press ads, trial drive, tie up with film "Scorpion King".
Page 22: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

22

Planning Communications Strategy-6 M Model.

• Market-for whom is the communication?.• Mission- what is the objective of the

communication?.• Message-what are the points to be

communicated.• Media- what vehicles will be used to convey the

message?.• Money- how much will it cost?• Measurement- how will the impact be assessed

after the campaign?.

ACER
1. scooter for women, "why should boys ahve all the fun".2. User group user is neither payer nor buyer e.g. Pet food.or offic e equipment. user payer not buyer e.g. travel tickets for Boss, bought by travel agent used and paid for by office User buyer not payer e.g car towing service paid for by insurance agent.3.Measurement- sales, image, salience, position relative to competitor.
Page 23: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

23

KEY TO EFFECTIVE COMMUNICATION STRATEGY

• KEY IS TO UNDERSTAND THE PEOPLE INVOLVED IN THE PURCHASE DECISION.

• THE DMU (DECISION MAKING UNIT COULD BE ONE, MANY OR INDUTRIAL MARKETING HUNDREDS.

• RESERCHERS HAVE IDENTIFIED 5 MAJOR ROLES IN BUYING SITUTIONS:– INTIATOR-NEED INDENTICATION, STIMULATE SEARCH.– DECIDER-MAKES THE CHOICE– INFLUNCER-PROVIDES INPUT.– PURCHASER-CONSUMMATES THE TRANSCATION.– USER- CONSUMES THE PRODUCT.

Page 24: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

24

COMMUNICATION Vehicles.

• NON-PERSONNEL vehicles:– Advertising-effective in creating awareness,

describing the features, suggesting usage SITUATIONS, distinguishing from competitors, directing buyers to point of purchase, creating, enhancing re assuring brand image.

– One trend is more to one-to-one communication.

– Limited in its ability to close the sale.

Page 25: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

25

Communication Vehicles 2.

• Sales promotion includes samples, coupons and contests.

• Useful as short term inducements.• 3 major types;

– Consumer PROMOTIONS-ADDRESSED to end consumer.

– Trade promotions.– Retail promotions-used by trade and addressed to

end consumer.• Public relations-non paid communications like

press relations, seminars, speeches, RADIO/TV appearance. Level of control poor.

ACER
1.Kerala-"goods own country" Traffic jam (kataa vallums on the backwater, high rise)2. suggesting user situtions "Dhhoot, Dhoot, Dhoot" or Cadbury's attempt to get adults to use chocolates.3. Apple i-phone.4.reassurance.
Page 26: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

26

PRICE

• THE COMBINATION OF THE 3 PRECEEDING P’s, DETERMINE THE TARGET CONSUMERS PRECEPTION OF THE VALUE OF THE FIRMS PRODUCT IN A GIVEN COMPETITIVE CONTEXT.

• CONCEPTUALLY THIS IS THE MAX. PRICE HE IS WILLING TO PAY AND SERVES AS THE PRIMARY GUIDE TO PRICING THE PRODUCT.

• ONCE THE FIRM HAS CREATED VALUE IT IS ENTITLEDTO CAPTURE SOME FOR ITSELF. THIS IS THE ROLE OF EFFECTIVE PRICING.

Page 27: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

27

Pricing Objectives.

• At a minimum the price must cover the cost. Loss LEADER. DIFFICULT to raise prices later on.

• “Skim" focus on customers with high value-first edition hard cover) and “PENETRATION” PRICING GENERATE lots of sales, leaves money on the table, important when customers are sensitive to PRICE, ECONOMICS of scale are available, threat of COMPETITION, PRODUCTION capacity available).

ACER
1. "loss Leader" 24 hours cofee shop.
Page 28: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

28

PRICING CUSTOMIZATION.

• CUSTOMERS MAY PLACE DIFFERENT VALUES ON THE PRODUCT. FIRMS CAPITILISE ON THIS THROUGH CUSTOMIZED PRICING.

• THIS IS DONE THROUGH:– PRODUCT DIFFERENTIATION– BUYER BEHAVIOUR.FIRST TIME USERS OF

SOFTWARE V/S “UPGRADERS”– CHARACTERISTICS OF THE TRANSCATION.

QUANTITY DISCOUNT. STICK V/S PACKETS.

Page 29: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

29

PRICE SENSITIVITY

• SOME INDUSTRIES ARE PRICE SENSTITIVE. A PRICING MOVE CAN SET OF A PRICE WAR.

• THIS IS TRUE WHEN– FIRMS HAVE HIGH FIXED COST BUT LOW VARIABLE COST.– LITTLE DIFFERENTIATION IN COMPETITIVE PRODECTS SO

CONSUMERS BUY ON PRICE.– INDUSTRY GROWTH RATE IS LOW.– THERE ARE BARRIERS TO CAPACITY ADJUSTMENTS AND

ECONOMICS OF SCALE ARE IMPORTANT.– LEGAL LAWS PLACE RESTRICTIONS.

Page 30: MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW

MARKETING STRATEGY-AN OVERVIEW

30

In Summary.

• Devising an effective marketing program requires in depth analysis to support decisions on a host of interrelated issues.

• Above all its always changing and marketer must be constantly ALERT. IN the market place.

ACER
change is inevitable."easier to replace than repair.""Dell opens showromm for sales force sales?""Beer cartel i Japan being bypassed by wine".