1. Strategic Marketing Management

2. 7 P’s of Marketing
Product – Tangible & Intangible (an insurance policy can be a product), which must provide value to the Customer. Customers must get what they want, not what the company thinks they want. (Don’t try to sell a Rolls Royce, when the customer really wants a Nissan Micra).
Price – Positions the product in the market place, the more 1 charges, the Customer will expect more value or quality for their money.
Place – Where the Customers buy a product & the means of distributing the product to that place, must be appropriate & convenient to the Customer. Also, means ways of displaying your product to Customer groups. Could be in a shop window & also could be through the internet.

3. 7 P’s of marketing (continued…)
Promotion – The way a company communicates what it does & what it can offer Customers. Should communicate the benefits that a Customer can obtain from a product & not just the features of the product.
Also, a means to ensure that both internal & external stakeholders are aware of the value & attributes of the products. Both employees & staff are knowledgeable & share the expertise with the Customer.
People – The reputation of the brand rests on the people, so the employees must be trained, motivated & have the right attitude. Level of sales support & advise to the Customer, for example exchange of existing product with the latest, offers etc.

4. 7 P’s of marketing
Process – How the products reach from the manufacturer through various source to the end user. Customers are not interested in the details of how the business runs, rather how the system works.
The most overlooked component of the 7p’s.
Physical evidence – Make the Customers understand what they are buying. Case studies, samples & testimonials, endorsements, benefits, clean, tidy & well decorated reception area etc. can form a physical evidence.
All these combined together can form a marketing mix.

5. Market segmentation
An integral part of a company’s marketing strategy.
The process of breaking down a larger target market into a smaller, more homogeneous groups of Customers that you can more efficiently market to.
Examples of segmentation
1. Demographics
2. Geographic
3. Psychographics
4. Behavioral

6. Market segmentation (continued…)
Demographics – The most common approach. A company dividing the larger market into groups based on traits like, age, race, gender, marital status, income group, occupation, education.
Geographic – used by companies that sell products or services to a certain community, state, region, country or group of companies. For e.g., 1 tv, radio, magazine, or newspaper ad.
Psychographics – life style segmentation where consumers are identified based on interests & activities like outdoor adventurer, camper. General personality, repetition of need, benefits sought.

7. Market Segmentation (continued…)
Behavioral – based on user behaviors, patterns of use, price sensitivity, brand loyalty. For e.g, a same product used by some weekly or monthly. High quality models used by HIG & low cost models used by LIG and MIG. High end product to 1 group segmented & more value oriented offerings to LIG & MIG.
The needs Customers seek to fulfill, level of knowledge, information sources, attitude, use or response to a product of Customers.
Business Segmentation – Based on repeat or loyal customers v/s 1 time users. For e.g., banks have different products for small v/s large businesses.

8. Positioning
Outlines what a business should do to market its product or service to it’s Customers.
In positioning, marketing department, creates an image for the product based on its intended audience. Done through, promotion, place, price & product. The more intense a positioning strategy, more effective the marketing strategy.
Positioning in ads, sales locations, price.

9. Mass Marketing (v/s) Target Marketing
Mass Marketing - The maximum exposure of product advertising to consumers. Opposite of Niche marketing where the idea is to advertise & market products to a specific target group of people. Products that people may want or need, such as soda, tooth paste, soft drinks, bread, house hold cleaning liquids, detergent powders.
A fast food chain might offer the same burger or sandwich at all of its franchises to create a demand for its new products.
Medium – TV, Radio, Internet
Target Marketing – A target market is a segment of consumers identified through research to be the most likely to buy a particular product. For e.g., a specific program, scheme, promotion for retired pensioners, medical insurance, child care, health drinks etc.

10. Analyzing Competitors
Identify your primary competitors & then identify their
Strategies
Objectives
Strengths
Weaknesses

11. Competitive Strategies for Market Leaders
Leader – Apple, Visa Credit Card
Challenger
Follower
Nicher
Example :-
10% % % %
Market Market Market Market
nichers follower challenger leader

12. Other Competitive Strategies
1. Market-challenger strategies – market leader often runs the business ‘as usual’ whereas Challengers have high aspirations
Define the strategic objective & opponents.
Decide who to attack:
Market leader
Market equals that are underperforming
Small local & regional firms

13. Other Competitive Strategies (continued…)
Market-challenger strategies –
Attack Strategies
Frontal attack – matches the opponents product, advertising, price, distribution.
Flank attack – targeting the weak spots
Encirclement attack – launching a grand offensive on several fronts
Bypass attack – bypassing by diversification into unrelated products, into new locations or using new technologies to supplant existing products.
Guerilla warfare – waging small intermittent wars to demoralize

14. Specific Attack Strategies
Price discounts
Lower-priced goods
Value-priced goods
Prestige goods
Product proliferation
Product innovation
Improved services
Distribution innovation
Manufacturing-cost reduction
Intensive advertising promotion

15. Market-Leader Strategies (next slide)
1. Expanding the total market
New Customers
More Usage
Market-penetration strategy
New-market segment strategy
Geographical-expansion strategy

16. Market-Leader Strategies (next slide)
2. Defending market share
Responsive marketer, anticipative marketer, creative marketer
Position defense – build a strong brand power & almost impregnable
Flank Defense – build an outpost to protect a weak front
Preemptive defense – attack before the enemy attacks
Counteroffensive defense – to meet the attacker with another attack
Mobile defense – market broadening or market diversification
Contraction defense – strategic withdrawal
3. Expanding market share (next slide)

17. Other Competitive Strategies
2. Market-follower strategies – the follower must define a growth path, but 1 that doesn’t invite competitive retaliation.
Counterfeit – black marketing
Cloner – copies the leaders products, name, packaging with slight variation
Imitator –copies but maintains differentiation in terms of packaging, pricing etc
Adaptor – adapts to improve the leaders product
3. Market-nicher strategies – an alternative to be a follower in a large market is to be a leader in a small market or niche.
Firms with low market shares can grow to become highly profitable through this strategy
A nicher achieves high margin whereas mass market achieves high volume
Niches can weaken & hence new ones should be created continuously

18. Specialized Niche Roles
End-user specialist
Vertical-level specialist
Customer-size
Specific-customer
Geographical
Product or product-line
Product-feature
Job-shop
Quality-price
Service
Distribution Channel specialist

19. Balancing Customer & Competitor Orientations
Competitor-centered company
Looks at what competitors are doing & then formulates competitive reactions.
Customer-centered company
Focuses more on Customer developments in formulating its strategies.
Generally Customers believe in Brands

20. What is a Brand Promise?
A brand promise is the marketer’s vision of what the brand must be & must do for Consumers.

21. Devising a Branding Strategy
Develop new brand elements
Apply existing brand elements
Use a combination of old & new

22. Brand Elements Memorable Meaningful Likeable Transferable Adaptable
Protectible

23. Slogans Like a good neighbor, State Farm is there Just do it
God’s own country
The complete man
The Zing Thing

24. Marketing Strategy
Segmentation
Targeting
Positioning

25. Value Propositions Perdue Chicken
More tender golden chicken at a moderate premium price
Domino’s
A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price
Basing it on brand, product, target Customers, benefits

26. Differentiation Strategies
Competitive advantage—a company’s ability to perform in 1 or more ways that competitors can’t or won’t match.
Few are sustainable, but a leverageable advantage can be used as a springboard to new advantages.
Focus on building competitive advantages as Customer advantages.

27. Differentiation Strategies (continued…)
Competitive advantage – Firms can use the following to differentiate :- Personnel Differentiation Channel Differentiation Image Differentiation

28. Personnel Differentiation: Singapore Airlines

29. Channel Differentiation

30. Image Differentiation
“Macho cowboy”

31. Service Differentiation
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance & repair
Returns

32. Product Differentiation
Product form
Features
Performance
Conformance
Durability
Reliability
Reparability
Style
Design
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance

33. Sales & Product Life Cycle

34. Claims of Product Life Cycles
Products have a limited life
Product sales pass through distinct stages each with different challenges & opportunities
Profits rise & fall at different stages
Products require different marketing, financial, manufacturing, purchasing & human resource strategies in each life cycle stage

35. Summary of Product Life-Cycle Characteristics, Objectives & Strategies
Introduction
Growth
Maturity
Characteristics
Sales
Low sales
Rapidly rising sales
Peak sales
Costs
High cost per Customer
Average cost per Customer
Low cost per Customer
Profits
Negative
Rising profits
High profits
Customers
Few
Growing Number
Stable number beginning to decline

36. PDLC Marketing Strategies

37. Product Life-Cycle Marketing Strategies
Marketing Strategies: Growth Stage
Improve product quality & add new product features & improved styling
Add new models & flanker products
Enter new market segments
Increase distribution coverage & enter new distribution channels
Shift from product-awareness advertising to product-preference advertising
Lower prices to attract next layer of price-sensitive buyers

38. Product Life-Cycle Marketing Strategies
Marketing Strategies: Maturity Stage
Market Modification
Expand number of brand users by:
Converting nonusers
Entering new market segments
Winning competitors’ customers
Convince current users to increase usage by:
Using the product on more occasions
Using more of the product on each occasion
Using the product in new ways

39. Product Life-Cycle Marketing Strategies
Marketing Strategies: Decline Stage
Increase firm’s investment (to dominate the market & strengthen its competitive position)
Maintain the firm’s investment level until the uncertainties about the industry are resolved.
Decrease the firm’s investment level selectively by dropping unprofitable customer groups, while simultaneously strengthening the firm’s investment in lucrative niches
Harvesting (“milking”) the firm’s investment to recover cash quickly
Divesting the business quickly by disposing of its assets as advantageously as possible.