Marketting Strategy

Presentation

1. Unit 2 Marketing StrategyUnit 2 Marketing Strategy
Marketing strategy formulationsMarketing strategy formulations
Key drivers of marketing strategiesKey drivers of marketing strategies
Strategies for Industrial marketingStrategies for Industrial marketing
Consumer MarketingConsumer Marketing
Services marketingServices marketing
Competitor analysisCompetitor analysis
Analysis of consumer and Industrial marketsAnalysis of consumer and Industrial markets
Strategic Marketing Mix componentsStrategic Marketing Mix components
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2. Marketing StrategyMarketing Strategy
““The marketing strategy is the way in which the The marketing strategy is the way in which the
marketing function organizes its activities to achieve a marketing function organizes its activities to achieve a
profitable growth in sales at a marketing mix level”profitable growth in sales at a marketing mix level”
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3. This can be done byThis can be done by
a) By specifying what resources should be allocated to a) By specifying what resources should be allocated to
marketing.marketing.
b) By specifying how these resources should be used to b) By specifying how these resources should be used to
take advantage of opportunities which are expected to take advantage of opportunities which are expected to
arise in the future.arise in the future.
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4. c) Organizing marketing resources , so as to match c) Organizing marketing resources , so as to match
products with customers in the most efficient and effective products with customers in the most efficient and effective
way possible, way possible,
i.e., so as to maximize customer satisfaction and the i.e., so as to maximize customer satisfaction and the
organizations profits or sales revenue. (or whatever its organizations profits or sales revenue. (or whatever its
objectives are !) at the same time.”objectives are !) at the same time.”
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5. 1. Differentiating and Positioning the Market Offering1. Differentiating and Positioning the Market Offering
2. Developing New Products2. Developing New Products
3. Managing Life-Cycle Strategies3. Managing Life-Cycle Strategies
4. Designing Appropriate Competitive Strategies (Leader, 4. Designing Appropriate Competitive Strategies (Leader,
Challenger, Follower, Nicher)Challenger, Follower, Nicher)
5. Designing Global Marketing Strategy5. Designing Global Marketing Strategy
6. Product related programs6. Product related programs
7. Pricing decisions7. Pricing decisions
8. Marketing channel decisions8. Marketing channel decisions
9. Promotion decisions9. Promotion decisions
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6. Industrial Marketing & Consumer Industrial Marketing & Consumer
MarketingMarketing
It is marketing of products / Services to  It is marketing of products / Services to 
business firms.business firms.
In contrast consumer marketing is  In contrast consumer marketing is 
marketing products / services to individuals  marketing products / services to individuals 
& households.& households.
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12. IntroductionIntroduction
Services are deeds,processes and performanceServices are deeds,processes and performance
Intangible, but may have a tangible componentIntangible, but may have a tangible component
Generally produced and consumed at the same Generally produced and consumed at the same
timetime
Need to distinguish between Need to distinguish between SERVICESERVICE and and
CUSTOMER SERVICECUSTOMER SERVICE
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13. Examples of Service IndustriesExamples of Service Industries
Health CareHealth Care
hospital, medical practice, dentistry, eye carehospital, medical practice, dentistry, eye care
Professional ServicesProfessional Services
accounting, legal, architecturalaccounting, legal, architectural
Financial ServicesFinancial Services
banking, investment advising, insurancebanking, investment advising, insurance
HospitalityHospitality
restaurant, hotel/motel, bed & breakfast, restaurant, hotel/motel, bed & breakfast,
TravelTravel
airlines, travel agencies, theme parkairlines, travel agencies, theme park
OthersOthers
hair styling, pest control, plumbing, lawn hair styling, pest control, plumbing, lawn
maintenance, counseling services, health clubmaintenance, counseling services, health club
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14. The Services Marketing TriangleThe Services Marketing Triangle
Internal
Marketing
Interactive Marketing
External
Marketing
Company
(Management)
CustomersEmployees
“enabling the
promise”
“delivering the promise”
“setting the
promise”
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15. Service QualityService Quality
The customer’s judgment of overall The customer’s judgment of overall
excellence of the service provided in relation excellence of the service provided in relation
to the quality that was expected.to the quality that was expected.
Process and outcome quality are both Process and outcome quality are both
important.important.
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16. The Five Dimensions of The Five Dimensions of
Service QualityService Quality
Ability to perform the promised Ability to perform the promised
service dependably and accurately. service dependably and accurately.
Knowledge and courtesy of Knowledge and courtesy of
employees and their ability to convey employees and their ability to convey
trust and confidence.trust and confidence.
Physical facilities, equipment, and Physical facilities, equipment, and
appearance of personnel. appearance of personnel.
Caring, individualized attention the Caring, individualized attention the
firm provides its customers.firm provides its customers.
Willingness to help customers and Willingness to help customers and
provide prompt service.provide prompt service.
Tangibles
Reliability
Responsiveness
Assurance
Empathy
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17. SERVQUAL AttributesSERVQUAL Attributes
Providing service as promised
Dependability in handling customers’ service
problems
Performing services right the first time
Providing services at the promised time
Maintaining error-free records
Keeping customers informed as to when
services will be performed
Prompt service to customers
Willingness to help customers
Readiness to respond to customers’
requests
RELIABILITY
RESPONSIVENESS
Employees who instill confidence in customers
Making customers feel safe in their transactions
Employees who are consistently courteous
Employees who have the knowledge to answer
customer questions
ASSURANCE
Giving customers individual attention
Employees who deal with customers in a caring
fashion
Having the customer’s best interest at heart
Employees who understand the needs of their
customers
Convenient business hours
EMPATHY
Modern equipment
Visually appealing facilities
Employees who have a neat,
professional appearance
Visually appealing materials
associated with the service
TANGIBLES
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18. New product diffusion curveNew product diffusion curve
InnovatorsInnovators
Early adoptorsEarly adoptors
Early majorityEarly majority
Late majorityLate majority
LaggardsLaggards
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21. SWOT Analysis SWOT Analysis
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23. Primary ActivitiesPrimary Activities
Primary activities relate directly to the physical creation, Primary activities relate directly to the physical creation,
sale, maintenance and support of a product or service. sale, maintenance and support of a product or service.
They consist of the following:They consist of the following:
Inbound logisticsInbound logistics – These are all the processes related  – These are all the processes related
to receiving, storing, and distributing inputs internally. to receiving, storing, and distributing inputs internally.
Your supplier relationships are a key factor in creating Your supplier relationships are a key factor in creating
value here.value here.
OperationsOperations – These are the transformation activities  – These are the transformation activities
that change inputs into outputs that are sold to that change inputs into outputs that are sold to
customers. Here, your operational systems create value.customers. Here, your operational systems create value.
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24. Outbound logisticsOutbound logistics – These activities deliver your  – These activities deliver your
product or service to your customer. These are things product or service to your customer. These are things
like collection, storage, and distribution systems, and like collection, storage, and distribution systems, and
they may be internal or external to your organization.they may be internal or external to your organization.
Marketing and salesMarketing and sales – These are the processes you  – These are the processes you
use to persuade clients to purchase from you instead of use to persuade clients to purchase from you instead of
your competitors. The benefits you offer, and how well your competitors. The benefits you offer, and how well
you communicate them, are sources of value here.you communicate them, are sources of value here.
ServiceService – These are the activities related to maintaining  – These are the activities related to maintaining
the value of your product or service to your customers, the value of your product or service to your customers,
once it's been purchased.once it's been purchased.
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25. Support ActivitiesSupport Activities
These activities support the primary functions above. In our These activities support the primary functions above. In our
diagram, the dotted lines show that each support, or secondary, diagram, the dotted lines show that each support, or secondary,
activity can play a role in each primary activity. For example, activity can play a role in each primary activity. For example,
procurement supports operations with certain activities, but it procurement supports operations with certain activities, but it
also supports marketing and sales with other activities.also supports marketing and sales with other activities.
Procurement (purchasing)Procurement (purchasing) – This is what the organization  – This is what the organization
does to get the resources it needs to operate. This includes does to get the resources it needs to operate. This includes
finding vendors and negotiating best prices.finding vendors and negotiating best prices.
Human resource managementHuman resource management – This is how well a company  – This is how well a company
recruits, hires, trains, motivates, rewards, and retains its workers. recruits, hires, trains, motivates, rewards, and retains its workers.
People are a significant source of value, so businesses can create People are a significant source of value, so businesses can create
a clear advantage with good HR practices.a clear advantage with good HR practices.
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26. Technological developmentTechnological development – These activities relate to  – These activities relate to
managing and processing information, as well as protecting a managing and processing information, as well as protecting a
company's knowledge base. Minimizing information technology company's knowledge base. Minimizing information technology
costs, staying current with technological advances, and costs, staying current with technological advances, and
maintaining technical excellence are sources of value creation.maintaining technical excellence are sources of value creation.
InfrastructureInfrastructure – These are a company's support systems, and  – These are a company's support systems, and
the functions that allow it to maintain daily operations. the functions that allow it to maintain daily operations.
Accounting, legal, administrative, and general management are Accounting, legal, administrative, and general management are
examples of necessary infrastructure that businesses can use to examples of necessary infrastructure that businesses can use to
their advantage.their advantage.
Companies use these primary and support activities as "building Companies use these primary and support activities as "building
blocks" to create a valuable product or service.blocks" to create a valuable product or service.
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27. Using Porter's Value ChainUsing Porter's Value Chain
Step 1 – Identify sub activities for each primary Step 1 – Identify sub activities for each primary
activityactivity
Step 2 – Identify sub activities for each support Step 2 – Identify sub activities for each support
activityactivity
Step 3 – Identify linksStep 3 – Identify links
Step 4 – Look for opportunities to increase valueStep 4 – Look for opportunities to increase value
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30. BCG MatrixBCG Matrix
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31. Industrial Markets & Consumer Industrial Markets & Consumer
MarketsMarkets
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33. Strategic Marketing MixStrategic Marketing Mix
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34. Product/ServiceProduct/Service
What does the customer want from the product/service? What needs What does the customer want from the product/service? What needs
does it satisfy?does it satisfy?
What features does it have to meet these needs?What features does it have to meet these needs?
Are there any features you've missed out?Are there any features you've missed out?
Are you including costly features that the customer won't actually Are you including costly features that the customer won't actually
use?use?
How and where will the customer use it?How and where will the customer use it?
What does it look like? How will customers experience it?What does it look like? How will customers experience it?
What size(s), colour(s), and so on, should it be?What size(s), colour(s), and so on, should it be?
What is it to be called?What is it to be called?
How is it branded?How is it branded?
How is it differentiated versus your competitors?How is it differentiated versus your competitors?
What is the most it can cost to provide and still be sold sufficiently What is the most it can cost to provide and still be sold sufficiently
profitably? profitably?
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35. PlacePlace
Where do buyers look for your product or service?Where do buyers look for your product or service?
If they look in a store, what kind? A specialist boutique or in a If they look in a store, what kind? A specialist boutique or in a
supermarket, or both? Or online? Or direct, via a catalogue?supermarket, or both? Or online? Or direct, via a catalogue?
How can you access the right distribution channels?How can you access the right distribution channels?
Do you need to use a sales force? Or attend trade fairs? Or make Do you need to use a sales force? Or attend trade fairs? Or make
online submissions? Or send samples to catalogue companies?online submissions? Or send samples to catalogue companies?
What do your competitors  do, and how can you learn from that What do your competitors  do, and how can you learn from that
and/or differentiate?and/or differentiate?
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36. PricePrice
What is the value of the product or service to the What is the value of the product or service to the
buyer?buyer?
Are there established Are there established price pointsprice points  for products or   for products or
services in this area?services in this area?
Is the customer price sensitive? Will a small decrease in Is the customer price sensitive? Will a small decrease in
price gain you extra market share? Or will a small price gain you extra market share? Or will a small
increase be indiscernible, and so gain you extra profit increase be indiscernible, and so gain you extra profit
margin?margin?
What discounts should be offered to trade customers, What discounts should be offered to trade customers,
or to other specific or to other specific segmentssegments of your market? of your market?
How will your price compare with your competitors?How will your price compare with your competitors?
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37. PromotionPromotion
Where and when can you get your marketing messages across to Where and when can you get your marketing messages across to
your target market?your target market?
Will you reach your audience by advertising online, in the Will you reach your audience by advertising online, in the
press, on TV, on radio, or on billboards? By using direct press, on TV, on radio, or on billboards? By using direct
marketing mailshots? Through PR? On the Internet?marketing mailshots? Through PR? On the Internet?
When is the best time to promote? Is there seasonality in the When is the best time to promote? Is there seasonality in the
market? Are there any wider environmental issues that suggest or market? Are there any wider environmental issues that suggest or
dictate the timing of your market launch or subsequent dictate the timing of your market launch or subsequent
promotions?promotions?
How do your competitors do their promotions? And how does How do your competitors do their promotions? And how does
that influence your choice of promotional activity?that influence your choice of promotional activity?
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38. PeoplePeople
to hire and train the right people to deliver to hire and train the right people to deliver
superior service to the clients, whether they run superior service to the clients, whether they run
a support desk, customer service, copywriters, a support desk, customer service, copywriters,
programmers…etc.programmers…etc.
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39. ProcessProcess
The systems
and processes
of the
organization
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40. Physical evidencePhysical evidence
ExteriorExterior
InteriorInterior
CleanlinessCleanliness
StyleStyle
DecorationDecoration
AcousticAcoustic
SmellSmell
EmployeeEmployee appearance appearance
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