MARKETING STRATEGY

Marketing strategy is the basic approach that the business unit will use to attain its goals and which comprises of elaborate decisions (strategies) on largest markets, market positioning and mix and marketing expenditure allocation. Moreover, the marketer should take care of the other two strategic aspects, viz., expected environment and competitive conditions while determining the marketing strategy

MARKETING STRATEGY

ELEMENTS OF MARKETING STRATEGY 1. Marketing Mix The marketing mix decisions of a firm are strategic

decisions with long-term goals and long

-term

framework. All the same, they have to be modified and manipulated, based on short-term requirements.

MARKETING STRATEGY

ELEMENTS OF MARKETING STRATEGY 2. Resources of the Firm Mere ambition will not bring about a marketing mix;

only resources in terms of money, materials and men

can make it.

MARKETING STRATEGY

ELEMENTS OF MARKETING STRATEGY 3. Edge over competition It is competition that necessitates strategy or more

precisely, coping with competition is the main aim of

strategy.

MARKETING STRATEGY

ESSENTIALS OF MARKETING STRATEGY 1. Consistent A marketing strategy to be effective is to be consistent

with the overall and specific objectives and policies and

with other strategies and tactics of the marketing organization

MARKETING STRATEGY

ESSENTIALS OF MARKETING STRATEGY 2. Workable Any strategy however worthy is meaningless unless it is

able to meet the ever-changing needs of a situation

MARKETING STRATEGY

ESSENTIALS OF MARKETING STRATEGY 3. Suitable A strategy is emergent of situations or environment.

Any strategy not suiting to the environment can

impound the marketing organization in the compounds of danger and frustration

MARKETING STRATEGY

ESSENTIALS OF MARKETING STRATEGY 4. Non Risky Any strategy involves risks as uncertainty is certain;

what is important is that the extent of the risk involved

or associated with strategy is reasonably low as compared to its pay-off or returns.

MARKETING STRATEGY

ESSENTIALS OF MARKETING STRATEGY 5. Resource Based A strategic decision needs commitment of right amount

of resources to the opportunity and reservation of

sufficient resources for an anticipated or pass though errors in such demands of resources

MARKETING STRATEGY

ESSENTIALS OF MARKETING STRATEGY 6. Time Horizon A sound strategy is time bound. The time should be

long enough to permit the organization to make

adjustments and maintain the consistency of a strategy.

KEY DRIVERS OF MARKETING STRATEGY 1. Competition Most firms face four types of competition, as follows:

1. Brand Competition: they are market products with

similar features and benefits to the same customers at

similar prices

KEY DRIVERS OF MARKETING STRATEGY

1. Competition
2. Product competitors: they compete in same produce

class but with products that are different in features,

benefits and price 3. Generic Competitors: they market very different products that solve the same problem or satisfy the

same basic customer need

KEY DRIVERS OF MARKETING STRATEGY

1. Competition

4. Total Budget Competitors: they compete for the limited financial resources of the same customers

KEY DRIVERS OF MARKETING STRATEGY

2. Economic Growth and Stability

A thorough examination of economic factors requires marketing managers to gauge and anticipate the general economic conditions of the nation, region, sate

and local area in which they operate

KEY DRIVERS OF MARKETING STRATEGY

3. Political and Regulatory Issues

Organizations should track political trends and attempt to maintain good relations with elected officials Eg. Problem for Reliance Retail in UP, TATA Nano singur,

etc.

KEY DRIVERS OF MARKETING STRATEGY

4. Legal and Regulatory Issues

The marketing managers should carefully examine recent court decisions to better understand the law or regulations in question and then formulate marketing

strategy

KEY DRIVERS OF MARKETING STRATEGY

5. Technological Advancement
Technology actually refers to the way that anyone accomplished specific tasks or the processes

Eg. Advanced computer technology in warehouse

operations and delivery system

KEY DRIVERS OF MARKETING STRATEGY

6. Socio Cultural Trends

Sociocultural factors are those social an cultural influences that cause changes in attitudes, beliefs, norms, customs and lifestyles.

FORMULATING MARKETING STRATEGY

1. Segmenting the Market A market segment is thus a group of consumers in a

market who have similar needs. Each segment will

have people with different needs and expectations

FORMULATING MARKETING STRATEGY

2. Selecting the target market There are may be segments assuring immediate profits,

there may be segments demanding heavy investments

by way of market development target market identifies and make use of the opportunities in a fruitful manner

FORMULATING MARKETING STRATEGY

3. Positioning the offer The firm has to clarify what it proposes to do with its

offering, how it wants the offer to be perceived by the

customer, what position it seeks and what image it proposes to build for its offer

FORMULATING MARKETING STRATEGY

4. Assembling the marketing mix Assembling the marketing mix simply means

assembling the 4Ps of marketing in the right

combination.

CONSUMER GOODS VS INDUSTRIAL GOODS

CONSUMER GOODS

Consumer goods are goods that are bought from retail stores for personal, family, or household use. They are grouped into three subcategories on the basis of consumer buying habits:

Convenience Goods Shopping Goods Specialty Goods

CONSUMER GOODS VS INDUSTRIAL GOODS

Convenience Goods Convenience goods are items that buyers want to buy with the least amount of effort, that is, as conveniently as possible.

Staple items

and

impulse items

Staple convenience goods are basic items that buyers plan to buy before they enter

Impulse

items

are

other

convenience goods that are purchased without prior

a store

planning

CONSUMER GOODS VS INDUSTRIAL GOODS

Shopping Goods Shopping goods are purchased only after the

buyer compares the products of more than one store or looks at more than one assortment of goods before making a deliberate buying decision

Specialty Goods Specialty goods are items that are unique or unusual at least in the mind of the buyer. Buyers know exactly what they want and are willing to exert considerable effort to obtain it

CONSUMER GOODS VS INDUSTRIAL GOODS

INDUSTRIAL GOODS
Industrial goods are products that companies purchase to make other products, which they then sell. Some are used directly in the production of the products for resale, and some are used

indirectly
Installations Accessory Equipments Raw materials Fabricated parts and materials Industrial supplies

Installations Installations are major capital items that are typically used directly in the production of goods

Accessory Equipment
Goods that fall into the subcategory of accessory equipment are capital items that are less expensive and have shorter lives than installations. Examples include hand tools, computers, desk calculators, and forklifts

Raw Materials
Raw materials are products that are purchased in their raw state for the purpose of processing them into consumer or industrial goods

Fabricated Parts and Materials

Fabricated parts are items that are purchased to be placed in the final product without further processing. Many industries, including the auto industry, rely heavily on fabricated parts. Automakers use such fabricated parts as batteries, sun roofs, windshields, and spark plugs.

Industrial Supplies Industrial supplies are frequently purchased expense items. They contribute indirectly to the production of final products or to the administration of the production process. Supplies include computer paper, light bulbs, lubrication oil, cleaning supplies, and office supplies

STRATEGIES FOR INDUSTRIAL MARKETING

Business marketing is also known as the industrial marketing or B2B marketing.

Business marketing may be defined as the marketing of products, services, and solutions to organization such

as being enterprises, government departments and

institutions.

STRATEGIES FOR INDUSTRIAL MARKETING

B2B Branding
Product, People, Pricing, business/Industrial Advertising, Trade Shows, Place

B2B marketing communication

methodologies
Positioning Statement, Developing the message, Building a campaign plan, Briefing an agency, Measuring results

STRATEGIES FOR INDUSTRIAL MARKETING B2B Branding 1. Product The cost saving or revenue producing benefits of

products and services are important to factor in

throughout the product development and marketing cycles

STRATEGIES FOR INDUSTRIAL MARKETING B2B Branding 2. People (target market) The target market for a business product or service is

smaller and has more specialized needs reflective of a

specific industry or niche

STRATEGIES FOR INDUSTRIAL MARKETING B2B Branding 3. Pricing The business market can be convinced to pay premium

prices more often than the consumer market if

individual know how to structure the pricing and payment terms well

STRATEGIES FOR INDUSTRIAL MARKETING B2B Branding 4. Business/Industrial Advertising Industrial advertising is the strategy of attracting the

attention of another business and convincing that

company to purchase the goods and services offered by another business

STRATEGIES FOR INDUSTRIAL MARKETING B2B Branding 5. Trade Shows Trade shows are designed to let exhibitors meet many

potential customers face-to-face in a brief period of

time inexpensively

STRATEGIES FOR INDUSTRIAL MARKETING B2B Branding 6. Place (sales and distribution) The success of the marketer is highly depended on the

success of the sales force in delivering the product at

right time

STRATEGIES FOR INDUSTRIAL MARKETING B2B Marketing Communications Methodologies

The purpose is to support the organizations sales effort

and improve company profitability. It includes,

advertising, public relations, direct mail, trade show support, sales collateral and branding.

STRATEGIES FOR INDUSTRIAL MARKETING B2B Marketing Communications Methodologies 1. Positioning statement This is the statement of what any individual do and

how they do it differently and better and more

efficiently than the competitors

STRATEGIES FOR INDUSTRIAL MARKETING B2B Marketing Communications Methodologies 2. Developing the message The message should convey the consumers what the

company offers and how the consumers will be

benefited by the offer

STRATEGIES FOR INDUSTRIAL MARKETING B2B Marketing Communications Methodologies 3. Building a campaign plan Includes building a comprehensive plan to target

resources where customers believe they will deliver

the best return on investment

STRATEGIES FOR INDUSTRIAL MARKETING B2B Marketing Communications Methodologies 4. Briefing an agency A standard briefing consisting of the objectives, target

market,

target

audience,

product,

campaign

description, etc., given to the agency

STRATEGIES FOR INDUSTRIAL MARKETING B2B Marketing Communications Methodologies 5. Measuring results The real value in results measurement is in tying the

marketing campaign back to business results

STRATEGIES FOR CONSUMER MARKETING

A consumer marketing strategy is a plan that businesses pursue to try to

maximize profits by matching their products with the individuals who are
most likely to buy or use them.

Marketers drill down to identify their target market segmentation In target they separate to find out their best consumers

STRATEGIES FOR CONSUMER MARKETING

Marketing Campaigns Online Advertising Extraordinary USP Direct Marketing

Word-of-mouth

Personal Selling

Scarcity and Undercover Marketing

Relationship Marketing

1. Marketing Campaigns
The process by which companies create value for customers and build strong customer relationships, in order to capture value from customers in return

2. Online Advertising Strategies

Online advertising is a form of promotion that uses the internet and world wide web to deliver marketing messages to attract customers. Examples of online advertising include

contextual ads on search engine results page, banner ads, blogs, social networking advertising, interstitial ads, e-mail marketing, etc.,.

3. Extraordinary USP
The Unique Selling Proposition (or USP) is a marketing concept that was first proposed as a theory to understand a pattern among successful advertising campaigns of the early 1940s

The proposition must be one that the competition either cannot, or does not, offer. It must be uniqueeither a uniqueness of the brand or a claim not otherwise made in that particular field of advertising.

4. Direct Marketing
Direct marketing is the process by which a firm approaches its customers on one-to-one basis and markets its products directly to them.

Direct mail Telemarketing Online marketing

Email
Mobile

5. Word-of-mouth
Word-of-mouth marketing (WOMM), also called word of mouth advertising, is an unpaid form of promotion oral or written in which satisfied customers tell other people how much they like a business, product, service, or event.

6. Personal Selling
Personal selling is oral communication with potential buyers of a

product with the intention of making a sale. The personal selling may
focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale"

7. Scarcity and Undercover Marketing

Scarcity marketing is where a shortage of a product is created or the perception of limited stock is communicated to prospects and

potential customers so as to provoke action and more sales

7. Scarcity and Undercover Marketing

Stealth Marketing, also known as undercover marketing, is an aspect of marketing in which an audience is not aware that they are being marketed to. Other names used for this kind of promotional activity are stealth marketing or buzz marketing.

8. Relationship Marketing

Relationship marketing is the process of building long term, trusting and win-win relationship with customers, distributors, dealers and suppliers. It is accomplished by strengthening economic, technical and social ties between members of two organizations or between the marketer

and the individual customer.