Presentation on theme: "MARKETING STRATEGY-AN OVERVIEW 1 MARKETING STRATEGY AN OVERVIEW."— Presentation transcript:
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.
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.
MARKETING STRATEGY-AN OVERVIEW 4 SCHEMATIC OF MARKETING PROCESS. MARKETING ANALYSIS (THE 5CS) CUSTOMERS COMPANY COMPETITORS COLLABORTORS CONTEXT MARKET SEGMENTS TARGET MARKET SELECTION PRODUCT & SERVICE POSITIONING MARKETING MIX (THE 4 PS) PRODUCT PLACE PROMOTION CREATING VALUE CAPTURING VALUE CUSTOMER ACQUISITION CUSTOMER RETENTION PROFITS SUSTAINING VALUE PRICING
MARKETING STRATEGY-AN OVERVIEW 5 5 Cs 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).
MARKETING STRATEGY-AN OVERVIEW 8 Company Competencies.
MARKETING STRATEGY-AN OVERVIEW 9 Collaborators.
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.
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.
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.
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.
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.
MARKETING STRATEGY-AN OVERVIEW 15 NEW PRODUCT DEVELOPMENT OPPORTUNITY IDENTIFICATION. DESIGN. TESTING. TEST MARKETING. PRODUCT LAUNCH/ROLLOUT. LIFE CYCLE MANAGEMENT.
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.
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.
MARKETING STRATEGY-AN OVERVIEW 18 Channel Design. The QUESTION in channel design is whether distribution will be direct" sales force),indirect(DISTRIBUTORS, STOCKIEST 3 rd. 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.
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).
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.
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.
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?.
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.
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.
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.
MARKETING STRATEGY-AN OVERVIEW 26 PRICE THE COMBINATION OF THE 3 PRECEEDING Ps, 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.
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).
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.
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.
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.