marketing management-my khan

Teaching Plan

Subject :-

Faculty :-

Prof. M. Yaseen Khan

ALL PROGRESS IS BORN OF INQUIRY. DOUBT IS OFTEN BETTER THAN OVER-

CONFIDENCE, FOR IT LEADS TO INQUIRY AND INQUIRY LEADS TO

INVENTION.

Marketing Today

The course aims at making students understand concepts, philosophies, process and techniques of

managing the marketing operations of a firm.

PEDAGOGY MAJOR ASSIGNMENT

LIVE PROJECT – 10 OTW & 6 Contact Hrs.

MINOR ASSIGNMENTS -04 OTW & 4 Contact Hrs.

CASE STUDY (04) – 04 OTW & 04 Contact Hrs

CLASS ROOM LECTURES - 36Hrs

Total Class Room

Lectures

Total Assignment/ Presentation

Hrs

Total OTW

36 14 18

Code Details of Assignments/Presentations

MS106.1.2

1. Visit the following places in Gr. NOIDA:-(a) Reliance Super (g) McDonald (b) SRS 7Days Food Court (h) Domino’s Pizza(c) Sabka Bazar (i) PHD (Ansal Plaza)(d) Honey Money Top (j) KFC (Ansal Plaza)(e) Reliance Fresh (k) Koutons (Ansal Plaza)(f) Croma (l) Raymond (Ansal Plaza) 2. Answer the following questions:-(a) What is the customer base of the business?(b) What is the USP of the business?(c) What are their average daily footfalls and sales?(d) How is the business being sustained?(e) What marketing communication mix they use to promote their outlet/s?

MS106.1.5

Live Project: Analysis of marketing strategies of the following brands in Greater Noida:1. Whirlpool-Washing Machine 2. Parle-G

3. Yamaha-Motorcycle 4. Sony LCD

5. Moser Baer CD 6. Kailash Hospital

7. Cadbury Chocolate 8. Nokia Mobile Phones9. LIC of India 10. Airtel-

DTH 11. LG-Plasma TV 12. Ryan International School, Gr. NOIDA

Code Unit/ActivityHrs. for

Pns OTW

106.1.D

Concept of Marketing Mixes

(Major Case)Case-1 2

106.3.A

Communication Process

(Minor)Case-2 2

ABC, RFI, STP, SKU, SBU,POP, DAGMAR, EDLP arm’s length price, augmented product,

available market, meta-market, line pruning, brand personality, fad, encirclement attack, aerial-arena advertising, reference price, pull strategy, push strategy, yield pricing, green ocean market, red ocean market, network marketing, niche marketing, Experience Curve…………and so on.

Evaluation ParametersMark

sWeighta

ge

Written Internal Test 50 15

Live Project- Viva-Voce (Live Project). 30 15

Quiz Test 10 5

Assignments/Presentations 10 5

TOTAL 100 40

SCHEME OF EVALUATION

Suggested Reading:BOOKS1. Kotler/Jha, Marketing Management(13-e) -PHI2. Joel Evans/Barry Berman, Marketing Management-CENGAGE Learning3. Ramaswami/Namakumari, Marketing Management-Macmillan Publishers.4. PK Agrawal, Marketing Management, Pragati Prakashan5. Czinkota/Kotabe, Marketing Management, Thomson Publication

MAGZINES1. Pitch2. Marketing Mastermind-ICFAI3. USP-Age

JOURNALS1. Journal of Marketing-American Marketing Association2. HBR3. Indian Journal of Marketing

NEWSPAPERS1. Business Line2. Business Standard

Marketing Concept and PhilosophyAt its very core are the customer and his or her satisfaction. The marketing concept and philosophy states that the organization should strive to satisfy its customers' wants and needs while meeting the organization's goals. In simple terms, "the customer is king".It is not something that the marketing department administers, nor is it the sole domain of the marketing department. Rather, it is adopted by the entire organization. Wal-Mart's motto of "satisfaction guaranteed" is an example of the marketing concept.

EVOLUTION OF THE MARKETING CONCEPT AND PHILOSOPHYThree major philosophies of marketing- are the product, selling, and marketing

philosophies.

PRODUCT PHILOSOPHYThe Industrial Revolution The product philosophy holds that the organization knows its product better than anyone or any organization. The company knows what will work in designing and producing the product and what will not work. This confidence in their ability is not a radical concept, but the confidence leads to the consumer being overlooked. This philosophy of only relying on the organization's skill and desires for the product lead to poor sales…………..?

Today, the gunsmith shop in Williamsburg, Virginia, still operates using the product philosophy. The gunsmiths produce single-shot rifles using the

technology available during the 1700s. They are only able to produce about four or five rifles every year, and they charge from $15,000 to $20,000 for each rifle. However, the high price does not deter the

demand for the guns; their uniqueness commands a waiting list of three to four years. Today's

Williamsburg Gunsmith Shop situation was typical for organizations operating before the Industrial

Revolution. Most goods were in such short supply that companies could sell all that they made.

Consequently, organizations did not need to consult with consumers about designing and producing their

products.When mass production techniques created the Industrial Revolution, the volume of output was greatly increased. Yet the increased production of goods did not immediately eliminate the shortages from the pre-industrial era.

SELLING PHILOSOPHY The selling era has the shortest period of dominance around

1930 and stayed in widespread use until about 1950. The selling philosophy holds that an organization can sell

any product it produces with the use of marketing techniques, such as advertising and personal selling. It assumes that a well-trained and motivated sales force can sell any product.

Organizations could create marketing departments that would be concerned with selling the goods, and the rest of the organization could be left to concentrate on producing the goods.

The reason for the emergence of the selling philosophy was the ever-rising number of goods available after the Industrial Revolution.

Organizations became progressively more efficient in production, which increased the volume of goods.

With the increased supply, competition also entered production.

The selling philosophy also enabled part of the organization to keep focusing on the product, via the product philosophy. In addition, the selling philosophy held that a sales or marketing department could sell whatever the company produced.

MARKETING PHILOSOPHY However, more companies began to realize that it is

easier to sell a product that the customer wants, than to sell a product the customer does not want. When many companies began to realize this fact, the selling era gave way to the marketing era of the marketing concept and philosophy.

The marketing era started to dominate around 1950, and it continues to the present.

The marketing concept recognizes that the company's knowledge and skill in designing products may not always be meeting the needs of customers.

It also recognizes that even a good sales department cannot sell every product that does not meet consumers' needs.

When customers have many choices, they will choose the one that best meets their needs.

The marketing concept and philosophy states that the organization should strive to satisfy its customers' wants and needs while meeting the organization's goals. The best way to meet the organization's goals is also by meeting customer needs and wants.

The marketing concept's emphasis is to understand the customers before designing and producing a product for them. With the customer's wants and needs incorporated into the design and manufacture of the product, sales and profit goals are far more likely to be met.

The idea of keeping close to the organization's customers seems simple. In reality, it is very easy to forget the customer's needs and wants. Sometimes the management is so involved with the product that their own desires and wants begin to take dominance, even though they have adopted the marketing concept.

For example:-Many years ago—before there was a Subway on every corner—a college student opened a small submarine sandwich shop near his university's campus. The sub shop was an immediate success. By using the marketing concept, the young entrepreneur had recognized an unmet need in the student population and opened a business that met that need.

Unfortunately, the story does not end at this point. The sub shop was so successful that it began to outgrow its original location after about three years. The shop moved to a larger location with more parking spaces, also near the university. At the new sub shop, waiters in tuxedos met the students and seated them at tables with tablecloths. Besides the traditional subs, the shop now served full meals and had a bar. Within a few months the sub shop was out of business. The owner of the shop had become so involved with his business vision that he forgot the customers' needs and wants. They did not want an upscale restaurant—there were other restaurants in the area that met that need, they just wanted a quick sub sandwich. By losing sight of the customers' wants and needs, the owner of the sub shop lost his successful business.

How Marketing Evolves

Barter

Era

One- on-One Trading

Production

Era

Demand Exceeds Supply

Sales

Era

Supply Equals Demand

Marketing

Dept. Era

Supply Exceeds Demand

Marketing a Sub-sidiary Function

Marketing

Co. Era

Supply Exceeds Demand

Integrated Role for Marketing

Marketing Process

Good Marketing is No AccidentBusiness success is not determined by producer but by customers.

The roaring success of four-wheeler Tata

Ace, in a market earlier dominated by three-wheeler load

carriers, was due to a deep understanding of the market needs

and customer requirements.

What is Marketing?

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relation-

ships in ways that benefit the organization and its stakeholders.

-AMA-2004

Marketing is the Anticipation, Management, and Satisfaction of demand through the exchange process.

-Evans/Berman

What is Marketing Management?

Marketing management is theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.

Mnemonic: Definition of Marketing

A

M

S exchange process

S

F

R

Definition of Marketing

Anticipation of Demand requires a firm to do consumer research in anticipation of market’s potential and consumers’ desires.

Management of Demand includes:Stimulation: motivates consumers to want firm’s offerings Facilitation: makes it easy to buy offeringsRegulation: involves balancing inventory to consumer demand

Definition of Marketing

Satisfaction of Demand involves product availability, product performance, perceptions of safety, and after-sale services.

An Exchange Process includes the agreement for payment: cash/credit/promise to pay or support for a firm, institution, idea, or place.

What is Marketed?

GoodsGoods

ServicesServices

Events & ExperiencesEvents & Experiences

PersonsPersons

Places & PropertiesPlaces & Properties

OrganizationsOrganizations

InformationInformation

IdeasIdeas

Demand States

Nonexistent Latent

Declining Irregular

Full UnwholesomeOverfull

Negative

Structure of Flows in a Modern Exchange Economy

A Simple Marketing System

Key Customer Markets

Consumer Markets

Business Markets

Global Markets

Nonprofit/ Government Markets

Core Marketing Concepts

Needs, wants, and demands

Target markets, positioning, segmentation

Offerings and brands

Value and satisfaction Marketing channels Supply chain Competition Marketing

environment

The Four P’s

Internal Marketing

Internal marketing is the task of hiring, training, and motivating able

employees who want to serve customers well.

Performance Marketing Financial

Accountability Social

Responsibility Marketing

Social Initiatives Corporate social marketing Cause marketing Cause-related marketing Corporate philanthropy Corporate community

involvement Socially responsible

business practices

Marketing Performers

Organizational Consumer

Marketing Specialist

Manufacturer or Service Provider

Retailer

Wholesaler

Basic Marketing

Performers

Final Consumer

The Marketing Concept

Consumer Orientation

Goal Orientation

Marketing

Concept

Market-Driven Approach

Value-Based Philosophy

Integrated Marketing

Focus

Contrast in Marketing/Selling Philosophies

Focus of Selling Philosophy

Production Selling Consumption

Focus of Marketing Philosophy

Consumer

Need

Evaluation

Integrated

Marketing

Effort

Achievement of Organizational Goals

Consumer

Satisfaction

Feedback

Selling Philosophy

Output “Sold” to Consumers Looks at Individual, Single Consumer Seeks Sales Rather than Profit Short-Term Goal Orientation Concerned with Current Inventory Reduction Narrower View of Consumer Needs Little Adaptation to Environment Informal Planning and Feedback

Marketing Philosophy

Consumer-Oriented Stresses Research

and Consumer Analysis

Looks at Groups of Consumers

Profit-Oriented Directed to Long-

Range Goals

Two-Way Interactive Process Appropriate

Adaptation to Mkting Environment

Broad View of Consumer Needs

Integrated Planning and Feedback

Factors That Affect Customer Satisfaction

Overall Customer

Satisfaction

Courteous Employees

Knowledgeable Employees

Friendly Employees

Helpful Employees

Accuracy of BillingQuick Service

Courteous Employees

Billing Clarity Billing Timeliness

Good Value Competitive Pricing

MARKETING MANAGEMENT PROCESSAnalyzing Market Structure and Behaviour

Researching and Selecting Market Opportunities

Developing Market Strategies

Planning Marketing Tactics

Implementing and Controlling the Marketing Effort

Environment of Marketing Analyzing Market Structure and

Behaviour Parts of Environment

Controllable Factors Uncontrollable

Factors Organization’s Level

of Success/Failure in Reaching Objectives

Feedback Adaptation

Organization’s

Level of

Success

Controllable

Factors

Uncontrollable

Factors

FeedbackAdaptation

Uncontrollable Factors

Independent Media

Technology

Economy

Government

Suppliers & Distributors

Competition

Consumers

Controllable FactorsOrganization’

s Level of Success or

Failure in Reaching Its Objectives

By Top Management

By Marketing

(1)

(2)

(3)

(4) Feedback

A - Total offering of the organization

B - Impact of uncontrollable factors

Adaptation(5)

Environment of Marketing

B

A

Types of Environments

Macroenvironment refers to the broad demographic, societal, economic, political, technological forces that an organization faces.

Microenvironment refers to the forces close to an organization that have a direct impact on its ability to serve its customers.

Analyzing Market Structure and Behaviour

A company’s marketing environment consists of the actors and factors external to the marketing

management function of the organization that impinge on the marketing management’s ability to

develop and maintain successfultransactions with its target customers.

MICROENVIRONMENT (Immediate Environment)Organization – Top management, finance, Manufacturing, AccountingSuppliers, Customers, Competitors – Brand comp, Desire/Industry competitors, Form comp, and Generic comp.Publics-A public is a distinct group of people and / or organizations that have an actual or a potential interest and / or impact on an organization.

Example: AIMT: Faculty, Administration and staff, Parents of students,

High School Teachers, Current students, alumni, prospective students, mass media, general public, local community, Government Agencies, Foundations and Trusts that provide scholarships, Business Community including industry, suppliers, competitors, Board members or trustees.

Types of Publics: Input Publics (Support, Supplier & Regulatory), Internal Publics, Agent Publics, Consuming Publics (Consumer, customer, influencer & General) Publics also referred to as stakeholders.


MACROENVIRONMENT (Large Societal Forces) Demographic: Population Growth, Migration, Birth Rate, Aging, Marriage

age, No. of children / family, Divorce Rate, Working Women, Non-family households, Education, Ethnic & Racial Profile

Economic: Real Income Growth, Inflation, Recession, Consumer Savings & Debt, Consumer Expenditure Patterns, Interest Rate & Exchange Rate

Physical: Shortages of certain raw materials, Cost of Energy, Pollution

Technological: Technologies for nations, for Products and for business Model

Social / Cultural: Values, Time-Starved Customers, Multiple Lifestyles, the changing structure of family.

Political / Legal: Political Structure, Stability, Govt. Interventions, Attitudes towards the business, foreign policy. Ex. KFC, Wal-Mart, IPL etc.


Political / Legal: Political Structure, Stability, Govt. Interventions, Attitudes towards the business, foreign policy. Ex.

KFC, Wal-Mart, IPL etc.

Marketing Environment

of India

The two Indias The many Indias: the country of

contrasts Wide disparities in economic

condition and income distribution indicate many Indias

The ‘two-India’ view does not constitute a correct reflection of India

There are Indias within urban India and Indias within rural India

With some Indias, much has changed; with others, almost nothing has changed.

The Two Indias and The Many Indias

Performance of the Indian Economy

The Past Story The economy climbs on to a higher growth trajectory

The Present A trillion dollar economy: India’s GDP crosses $ 1 trillion in FY 07 Per capita income rises to Rs 29,382 per year The fourth largest economy in the world and heading to be the third Also the second fastest growing Set to stay on a reasonably high growth trajectory

India’s Consumer Environment India’s Markets

Second largest market in the world. Fastest growing market in passenger cars, cell phones, travel and tourism,

DVDs, dig-cams, and laptops, among other things.

The size of India’s consumer market was around US$ 383 million in 2003-04.

India’s Consumer Environment

FMCG and FMCD Sectors FMCD Spurt: mobile sets/ACs/Twowheelers/passenger cars

etc.• Steady growth due to rising consumer income and falling

prices.

Call of the Mall : The Retail Boom India’s retail industry expected to hit $ 255 billion in 2010 According to a CII Report, the year 2010 will see a 10 per

cent contribution by modern retail to all FMCG. In metros, this figure is expected to be 30 per cent.

The Media, Advertising and Entertainment Scene The Media Revolution

TV spearheading the media revolution

The Rural Marketing Scene

Rural income now exceeds urban income by handsome margin Rural market accounts for a large share of the expenditure on

manufactured and branded consumer goods.

Rural children take to English education 30% of rural children go to private English medium schools

Rural market carries huge opportunities; also huge challenges

The Negative Aspects

India a Superpower? Think Again India remains a world leader in hunger, illiteracy and HIV. Biggest single problem is the lack of jobs for ordinary people.

Inflation an Obstacle; Growth Coupled with Low Inflation is Becoming Difficult In 2008 Inflation crossed 12% Agriculture remains in shackles Manufacturing has not boomed Oil Imports and high oil prices continues as a burden Infrastructure inadequacy Investment is the key and it is not easy to come by Weak fiscal position

International Institute for Management Development (IMD), a leading business school in Lausanne, Switzerland,

Negative Aspects Still Poor in Global Competitiveness

The IMD survey World Bank’s ‘doing business survey’

India is 116 out of 155 countries. Rating by Transparency International

India very high at corruption level.


Moving beyond general terms to specifics and carrying out an analysis of Market Structure.

First Step – Define the Market Define the general boundary conditions of the market. Determine all the actual

and potential members of the market.

Market: a collection of buyers and sellers who transact over a particular product or product class.

Marketplace: Physical entityMarket space: Digital entityMetamarket: a cluster of complementary products and services that are closely

related in the minds of consumers, but spread across a diverse set of industries.

ASK YOURSELF- Are we in the health service market or smokers’ clinic or maternity home or

children’s nursing home? Are we a technology institute or a general educational institute (problem facing

IIT’s)?

Second Step – Market Segmentation- dividing the market into fairly

homogenous parts where any part may conceivably be selected as market target to be reached with a distinct marketing mix.

Typical segmentation variables are as follows: Geographic – Region, State, Country, Rural / Urban,

Climate Demographic – Age, Sex, Family size, Family life cycle,

Income, Occupation, Education, Religion, Caste, Race, Nationality, Social Class Psychographic – Life style, Personality, Benefits sought,

User status, Usage rate, Loyalty status, Readiness stage.

LEVELS OF MARKET SEGMENTATION

Mass Marketing Seller engage in mass-production, distribution and promotion-

of one product.

Advantages-

a) Largest potential market

b) Lowest cost– lower price---higher margin

Disadvantages-

a) Difficult to reach Splintering Market

b) Proliferation of advertising and

distribution

Ford’s Model T Followed a Mass Market Approach

Four levels of Micromarketing

Segments

Local areas Individuals

Niches

What is a Market Segment?

A market segment consists of a group of customers who share a similar

set of needs ad wants. Company can offer better design, price disclose, and deliver product/service.Fit to the marketing program in a better manner.

Flexible Market Offering- not everyone in the segment wants exactly the same product.

Naked Solution- the product and service elements that all segment members value.

Discretionary Option- That some segment members value, each option might carry additional charges.

Whole Market

Segment Market

Flexible Market

Offerings

Naked Solution

Discretionary Options

Segment Marketing

Preference Segments

Homogeneous preferences exist when consumers want the same things

Diffused preferences exist when consumers want very different things

Clustered preferences reveal natural segments from groups with shared preferences

Bank Al Habib targetssenior citizens

Dove Targets Women

Niche Marketing

More narrowly defined customer group seeking a distinctive mix of benefits. It is dividing segment into sub-

segment.

What does an attractive niche look-like?

1. Distinct set of need

2. They pay a premium to the firm that best satisfy them.

3. It is fairly small but has size, profit and growth potential.

4. It is unlikely to attract other competitors.

5. It gains certain economies through specialization.

EXAMPLES: Hair Oil for Baby by J&J ICE-CREAM- for health conscious and diabetic consumers by

AMUL-Vanila in Chocolate, Fresh Lichi, Shahi Anjeer etc. VICO Vajradanti, MESWAK Toothpaste, NEEM Active by

Henkel. Crack Cream and Itch Gaurd by PARAS. Ezee by Godrej QTV in Pakistan and Astha in India Hallmarks greeting cards. Himalya Drugs ‘Plus-Sized Fashion’ by Revolution

Niche Marketing

Gather.com: A Niche Social Networking Site

The Himalaya Drug Company serves a growing niche market by focusing on ayurvedic medicines and health supplements

Local Marketing

Marketing Programs tailored to the needs and wants of local customers groups in trading areas, neighborhoods,

even individual stores.EXAMPLES: Specialized bank branches for:-

a) Corporate customers in industrial areas

b) NRI Bank branches in Kerala. CROSS-ROADS Yellow Pages ‘In-City’ courier One movie in different language Bharat Matrimony

Individual Marketing

Segment of one –customized marketing– one-to-one

marketing

Berger Paints, Asian Paints

Arvind Mills- Ruff and Tuff Jeans- ready to stitch jeans

United Bank Ltd. of Pakistan offers customized Galleria credit cards to its customers


Third Step – Market Targeting Market Segmentation reveals the market segment opportunities

facing the organization. Now it has to evaluate the various segments and decide how many to serve.

a) Evaluating the Market Segments b) Decide a Market Coverage Strategy – Undifferentiated

marketing, Differentiated marketing, Concentrated or Niche marketing

Need based market segmentation.BANKS

CURRENT INCOME SAVINGASSETS RISK PREFERENCE

Effective Segmentation Criteria

MeasurableMeasurable

SubstantialSubstantial

AccessibleAccessible

DifferentiableDifferentiable

ActionableActionable

Patterns of Target Market Selection

The Revolution brand of ready-made women’s apparel successfully focuses on the niche segment of plus-size clothes.

Segment-by-Segment Invasion Plan

Pepsi used Megamarketing in India

EXAMPLESTITAN – Successful Segmentation and TargetingAfter carrying out an in-depth market study, Titan identified three distinct market segments for its watches. The segments were arrived at using benefit and income level as the bases.a) The first consisted of the high income / elite consumers who were buying a watch as a fashion accessory not as a mere instrument showing time. They were also willing to buy a watch on impulse. The price tag did not matter to this segment.b) The next segment consisted of consumers who preferred some fashion in their watches but to them price did matter. While they had the capacity to pay the price required for a good watch, they would not purchase a watch without comparing various offers in the market.c) The third segment consisted of the lower-income consumers who saw a watch mainly as a time-keeping device and bought mainly on the basis of price.

For the first segment, Titan offered Aurum and Royale in the gold/ jewellery watch range. They were stylish dress watches in all gold and precious metals. The prices ranged between Rs.20,000 and Rs. 1 lakh.

For the middle segment, Titan offered the Exacta range in stainless steel, aimed at withstanding the rigours of daily life. There were 100 different models in the range. The price range was Rs.500-700. Titan also offered the RAGA range for women in this segment. And, for the third segment, Titan first offered the TIMEX watches and later, when the arrangement with Timex was terminated, the SONATTA range. The price range was Rs. 350 – 500. It was offered in 200 different models. Titan also offered the “Dash!” range for children. In-depth segmentation helped Titan launch segment-specific products.

BATA – Wrong Target In the early 1990s, Bata decided to embrace the high-

end segments of the Indian shoe market as a part of its target market. It launched quite a few brands for this segment with higher price tags. The move landed Bata in trouble. This segment was not meant for Bata. In the first place, this segment was not sizable for a company like Bata. Second, the segment did not gel with Bata’s distinctive competence. The segment constituted a mere 5 to 10 per cent of the footwear market in India. It could not provide the volumes that Bata was used to at the mass end and high volume was essential for Bata for having a healthy bottom line. Worse still, the adoption of the segment misdirected Bata’s entire strategy. The top end of the market suddenly became the main focus of the company and it forgot its bread-and-butter shoes that had given the company its identity. And, small regional players started nibbling away at Bata’s mainstay.

Actually, Bata was squeezed at both ends. At the lower end, smaller competitors attacked Bata’s mass range in canvas shoes, school shoes and Hawaii chappals – slots, which the company had practically vacated on its own by ignoring them completely. At the high end, niche players, who were better prepared, were challenging Bata. From a market share of around 15 per cent in the mid-1980s, Bata found its share slide down to 10 per cent of the footwear market in mid-1990s. The year 1995 saw the company running a loss of Rs. 42 crores. After learning the lesson the hard way, Bata did an about-turn from its adventure with high-end segment and returned to the mass segment. The new strategy was to get back to the original customers at the low end and keep that part of the market as its core focus. The company, of course, did not totally give up the new segment it had got into in the early 1990s. Brands like Hush Puppies, for example, continued to be sold by Bata, but in a selective way and through select stores only.

Fourth Step – Positioning

Positioning is the act of designing the organization’s product and marketing mix to fit a given place in the consumer’s mind.

Glamour – fashion products, perfumes, cosmetics

Premium – better and superior value (Jet Airlines vs. Indian Airlines)

Value for money – better and superior value at affordable price (Maruti 800)

DEVELOPING MARKET STRATEGIES Marketing Strategy is the marketing logic by which the business

unit expects to achieve its marketing objectives. Marketing strategy consists of making decisions on the business’s marketing expenditures, marketing mix, and marketing allocations in relation to expected environmental and competitive conditions. Marketing Mix is the mixture of controllable marketing variables that the organization uses to pursue the sought level of sales in the target market.

Marketing Mix Variables – 4 P’s Product – Product Variety, Quality, Features, Options, Style,

Brand Name, Packaging, Sizes, Services, Warranties, Returns Price – List Price, Discounts, Allowances, Payment Period,

Credit Terms, Mode of Payment Place – Channels, Coverage, Locations, Inventory, Transport Promotion – Advertising, Personal Selling, Sales Promotion,

Public Relations, Direct Marketing

PLANNING MARKETING STRATEGIES/TACTICS

Strategy is broad direction. Tactics is detailing.

What is a Marketing Plan?

A marketing plan is the central instrument for directing and coordinating the marketing

effort.

It operates at a strategic and tactical level.

Levels of a Marketing Plan

Strategic Target marketing

decisions Value proposition Analysis of marketing

opportunities

Tactical Product features Promotion Merchandising Pricing Sales channels Service

The Strategic Planning, Implementation,

and Control Processes

Corporate Headquarters’ Planning Activities Define the corporate mission Establish strategic business units (SBUs) Assign resources to each SBU Assess growth opportunities

Good Mission Statements

Focus on limited number of goalsFocus on limited number of goals

Stress major policies and valuesStress major policies and values

Define major competitive spheresDefine major competitive spheres

Take a long-term viewTake a long-term view

Short, memorable, meaningfulShort, memorable, meaningful

Major Competitive Spheres

Industry

Products

Marketsegment

Geographical

CompetenceVertical

channels

Infosys Technologies Limited

“To achieve our objectives in an environmentof fairness, honesty, and courtesy towardsour clients, employees, vendors, and societyat large.”

eBay

“We help people trade anything on earth.We will continue to enhance the onlinetrading experiences of all—collectors, dealers, small businesses, unique itemseekers, bargain hunters, opportunitysellers, and browsers.”

Product Orientation vs. Market Orientation

Company Product Market

Xerox We make copying equipment We improve office productivity

Columbia Pictures

We make movies We entertain people

Encyclopedia Britannica

We sell encyclopedias We distribute information

Carrier We make air conditioners and furnaces

We provide climate control inside homes