Module 5

Contemporary issues

Public relations to regulate marketing

Building good relations with the companys various publics by obtaining favorable publicity, building up a good corporate image and handling

or heading off unfavorable rumors, stories and events is public relations.

Siresha.N, Lecturer, Loyola College.

Functions of Public relations department

Press relations or press agency

Product publicity Public affairs Lobbing Investor relations Development

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Role and impact of public relations

Have strong impact on public awareness

Cost of advertising being comparatively lower The results being very spectacular Staff is often busy dealing with day-to-day issues Advertising doesnt build brand but rather PR does

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Public relation tools

News : creating favorable news about the company Special events: conferences, grand openings, air balloon releases Speeches: about product and goodness of company

Written materials: brochures, reports, articles, company news letters

Audio- visual material: DVDs, slide shows, online videos Corporate identity materials: logos, business cards, stationary Public service activities: CRM
Buzz marketing : social networking
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Competitive analysis and strategies

Competitive analysis: The process of identifying key competitors; assessing their objectives, strategies, strengths and
weaknesses and reaction patterns and selecting which competitor to attack or avoid Competitive marketing strategies: strategies that strongly

position the company against competitors and that give the company the strongest t possible strategic advantage

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Competitor analysis
Assessing competitors objectives, strategies, strengths, weakness and reaction patterns

Identifying the companys competitors

Selecting which competitor to attack or avoid

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Competitive strategies
Approaches to marketing strategies and its stages: Entrepreneurial marketing : start up an enterprise by
visualizing opportunity, construct flexible strategies of the back of envelops and knock on every door to gain attention Formulated marketing: as small companies achieve success, they inevitably move towards more-formulated marketing.

Intrepreneurial marketing: companies which are stuck at formal marketing drag and scan market research reports and try fine tuning of strategies.
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Competitive strategies
Basic competitive strategies: Overall cost leadership: working hard to achieve low
production and distribution costs which lets the price lower than its competitors. Differentiation: concentrates on creating a highly

differentiated product line and marketing program so that

it comes across as a class leader in the industry. Focus: focus effort on serving a few market segments well rather than going after the whole market
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Competitive strategies
Customer centered classification:
Operational excellence : company providing superior value by leading its industry in price and convenience serving customers who want reliable, good quality products or services

Customer intimacy: company proving superior value by precisely segmenting its markets ad tailoring its products or services to
match exactly the needs of targeted customers with close relation and intimate knowledge of the customer

Product leadership : provides superior value by offering a

continuous stream of leading-edge products or services

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Competitor positions and their strategies

Market leader: The firm in an industry with largest market share

Expand total market

Protect market share Expand market share

Market challenger: a runner up firm that is fighting hard to increase its market share in an industry

Full frontal attack

Indirect attack
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Competitor positions and their strategies

Market follower: a runner up firm that wants to hold its share in an industry without rocking the boat
Follow at a distance

Market nicher: a firm that serves small segments that the other firms in an industry overlook or ignore
By customer, market, quality price & service multiple niching

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Balancing customer and competitor orientations

Competitor centered strategy: a company whose moves are

mainly based on competitors actions and reactions Customer centered strategy: a company that focuses on customer developments in designing its marketing strategies
and on delivering superior value to its target customers Market centered strategy: a company that pays balanced attention to both customers and competitors in designing its

marketing strategies

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Global market environments

Global firm is one that, by operating in more than one country, gains marketing, production, R & D, financial advantages that are not available to purely domestic competitors
Major international marketing decisions are:
Looking at the global market environment Deciding whether to go global Deciding on which markets to enter Deciding how to enter the market Deciding on the global marketing program Deciding on the global marketing organization

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1. Looking at the global market environment

International trade system

Economic environment Political and legal environment Cultural environment

2. Deciding whether to go global

Deciding on competitors, unstable currency fluctuations etc

3. Deciding which markets to enter

Deciding on marketing objectives and policies , volume of sales,

no of countries to enter in
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4. Deciding on how to enter

Exporting
Indirect Direct

Joint venturing
Licensing Contract manufacturing Management contracting Joint ownership

Direct investment
Assembly facilities Manufacturing facilities

5. Deciding on global marketing program

Standardized marketing strategy Adapted marketing strategy

6. Deciding on global marketing organization

Becoming global organizations
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Social responsibility and ethics

Needs of consumers

Now

Marketing concept

Strategic planning concept

Future

Societal marketing concept

Sustainable marketing concept

Now

Future

Needs of business`

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Social criticisms of marketing

Marketing impact on individual consumers

High prices because of high cost of distribution, high advertising

and excessive markups

Deceptive practices in pricing, promotions and packing High pressure selling Shoddy, harmful or unsafe products

Planned obsolescence
Poor service to disadvantaged consumers

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Social criticisms of marketing

Marketing impact on society as a whole

False wants and too much materialism Too few social goods Cultural pollutions- the commercial noise
Marketing impact on other business

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Consumer actions to promote sustainable marketing

Consumerism : An organized movement of citizens and

government agencies to improve the rights and powers of buyers in relation to sellers .
Environmentalism : an organized movement of concerned citizens and government agencies to protect and improve peoples current and future living environment.

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Business actions towards sustainable marketing

Consumer oriented marketing

Customer value marketing Innovative marketing Sense of mission marketing

Societal marketing

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Marketing ethics
Immediate satisfaction

Low
Long run consumer benefit
Salutary products

High
Desirable products

High

Low

Deficient products

Pleasing products

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THE END