UNIT -2

Introduction

MARKETING STRATEGY

(Developing Marketing Strategies & Plans- Ref- Philip Kotler)

A key ingredient of marketing management process is, creating marketing strategies and plans that can guide marketing activities. It is a blend of discipline and flexibility. Walk in to a trendy costumes & boutique show rooms in Chennai and you will high-fashion, branded products with premium price tags. Go in to a Big- Bazaar outlets and you can see the version of same style for much less price with a choice of 170,000 products and discount ranging from 6 to 60 percent. Big- Bazaar has managed to bring in both masses and classes. Big- Bazaar followed the below strategies: It has maintained hyper- market (over-excited & agitated) in India. Company has created the image association of the first mover in the retail industry. Followed rapid expansion policies. Strong supplier relationship in a partnership mode. Increased SCM for reliability and efficiency of the business. Moreover, the companies ambitious mindset is supported by flexible strategy that helps the company adapt to local conditions. What is strategy? How does marketing contribute? - The marketing concept - Market orientation

What is strategy?
A fundamental pattern of present and planned objectives, resource deployments, and interactions of an organization with markets, competitors, and other environmental factors. the search for a favourable competitive position

Strategy types:
o Corporate strategy -organizations scope and resource deployment o Business-level strategy -competitive strategy of a business unit in its industry o Marketing strategy i. -targeting, segmenting and positioning for a product. Figuring out the marketing mix What is the marketing concept? determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. What do marketers mean when they say their firms are market oriented? What are advantages and disadvantages of market orientation? Why do some firms lack orientation towards the market ?

ii. iii. iv.

Definition Marketing Strategy.

A strategy that integrates an organization's marketing goals into a cohesive whole. Ideally drawn from market research, it focuses on the ideal product mix to achieve maximum profit potential. The marketing strategy is set out in a marketing plan.

Marketing Mix
A planned mix of the controllable elements of a product's marketing plan commonly termed as 4Ps: product, price, place, and promotion. These four elements are adjusted until the right combination is found that serves the needs of the product's customers, while generating optimum income. Sometimes the first P (Product) is substituted by presentation. See also marketing and mega marketing.

Market orientation
A business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of customers. See also product orientation and sales orientation.

Market penetration
The activity or fact of increasing the market share of an existing product, or promoting a new product, through strategies such as bundling, advertising, lower prices, or volume discounts. (or) A measure of the extent of a product's sales volume relative to the total sales volume of all competing products, expressed as a percentage. Formula: Sales volume of a product x 100 Total sales volume of all competing products.

Market penetration pricing

A strategy adopted for quickly achieving a high volume of sales and deep market penetration of a new product. Under this approach, a product is widely promoted and its introductory price is kept comparatively low. This strategy is based on the assumption that (1) the product does not have an identifiable price-market segment, (2) it has elasticity of demand (buyers are price sensitive), (3) the market is large enough to sustain relatively low profit margins, and (4) the competitors too will soon lower their prices.

 STRATEGIC PROCESS

FORMULATION

Before learning the strategic formulation process you should know the following. Question #1: What is the 3Cs of Marketing? Company Competitor Consumer The brand or company that provides the best value will be the choice of the consumer. Lesson in 3C: Company always competes against competitors Whoever provides the BETTER value to the consumers ultimately will be the choice of the consumer But of course the consumer has to know about it. What are the 3 ways to beat your competition? 3 ways to beat competition Cheaper Closer can also be louder Better st 1 lesson in Marketing Strategy Objectives and strategy Objectives are goals Strategies are ways and means to achieve your goal

Marketing Strategy Formulation

Internal and External Environment Analysis are done for the formulation of the strategy.

Really marketing is a Process of determining the needs and wants of target consumers
and satisfy them better than competitors at a profitable level.

Marketing Strategy
Is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfies individual and organizational objectives

The critical management process that enables the company to pragmatically sketch out plans and programs to achieve organizational short term and long term objectives through satisfaction of needs and wants of consumers better than competition with constant consideration of external variables.

The Marketing Strategic Planning Process

Consumers Environment Competitors Objectives Segmentation Targeting and Positioning Product Price Distribution Promotion Internal Evaluation

WhatMarketingStrategiesLeadToSuccessfulGlobalBusiness?
This is a question that I asked myself years ago and had a chance to hear it rather often. Is it the slick style of the sales letter or some rather hypnotic words that you recently used? Or even better yet; are those marketing strategies that you are using, specific to you and your business? Im going to share with you some of the key successful marketing strategies, and its not exactly what you may be thinking LOL What I found that helped me and my business are the following top 6 marketing strategies that you should take in consideration:

TopSixGlobalMarketingIdeas 1. Direct Mail This can have huge marketing effectiveness when done correctly. You can reap a lot of business from direct mail marketing. However, many people lack the supporting skills necessary to make this marketing strategy effective such as target market, copy and follow-up. 2. Events (Seminars, Speaking and Trade Shows) For many individuals, this is so underutilized, due to the fear of public speaking, but it can be huge advantage for you. 3. Internet/Website Using the Internet through a variety of strategies and having a search engine friendly website are a must have today. With more and more people using the Internet to become educated about your products and services, not having an Internet presence is not smart thing. 4. Networking Meeting and greeting people is the foundation for business, since people buy from people that they know and more importantly trust. With so many small businesses opening each and every day, there is now a plethora of business networking events, so use this opportunities wisely, for your targeted audience. 5. Paid Advertising Today radio, television are fading but more then ever Facebook, Google and Yahoo ads are used as a excellent examples of paid advertising. Depending upon your target market and your products or services, this may outperform all other strategies that you are currently using. 6. Promotional Items By leave behind useful promo items, such as calendars, DVDs, pens, key rings, stress balls or magnets, just to name a few help your prospects to remember your name and your uniqueness.

4 great marketing strategies

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Business 4 great marketing strategies

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Barring a few, notable exceptions, rural marketing in India [ Images ] is still about a van campaign, a
badly-made commercial, a few painted walls and the occasional participation in village haats and melas. But then, "rural" means different things to different people: from 500,000 people for consumer durables, to less than 50,000 for fast-moving consumer goods. Still, it is heartening to note the increasing awareness of the importance of rural markets - or, at least, of companies wanting to move beyond urban boundaries. According to estimates by the Rural Marketing Agencies Association of India, the total budget for rural marketing is only about Rs 500 crore (Rs 5 billion), compared to the over Rs 13,000 crore (Rs 130 billion) allotted to mass media.

 This is grossly inadequate to cover the huge potential for different products in rural markets. Of course, clients' reluctance to spend big money for bigger results in rural markets is because there are no standard performance yardsticks for judging the efficacy of the rural marketing efforts. The TRPs and NRS/IRS data help you determine the efficacy of TV and press marketing. But there is no study to tell you what is the ideal cost per contact or what is the ideal number of eyeballs or footfalls for different rural activities. But only consider the huge successes of some regional brands, especially in the FMCG sector, which are giving the multinationals a run for their money. Companies like Cavin Kare (Chik Shampoo, Meera Herbal Powder, Fairever Cream and so on), Anchor (100 per cent vegetarian toothpaste), Ghadi detergent powder and Power soap are proof that regional brands can become brands to reckon with. And don't forget Nirma, the most enduring example of a brand that began as a regional player and is now a giant. What did these products do that was so different? Most of them identified a segment that was vacant in terms of product and area of operation. They all started in small, concentrated markets, appealing to the local ethos and aspirations of the targeted area. Their communication, be it a simple radio spot or a wall painting or a theatre film, touched a chord in the target audience. And, most importantly, their policies were flexible and they could adopt to fast changing marketing situations. What should companies do to step up their payback from rural marketing efforts? Here are some steps that should help.

1) People power
Total commitment from top leadership, keeping in mind that rural marketing is a long-term

relationship, is imperative - the successes of Hindustan Lever [ Get Quote ] and ITC are proof of this statement. But even more important is the need for a dedicated task force. Rural marketing efforts need special mindsets, which many of the urban-oriented management graduates who are at the helm of affairs at most organisations do not possess. A separate marketing and sales vertical headed by people with passion and commitment to rural marketing and supported by a field team that can face the rough and tough of the vast countryside with courage and conviction is a must. The best bet is to recruit students from specialised institutes such as the Indian Institute of Rural Management, or at least, management graduates who have studied the subject as an elective. Many of these are students from small towns, people with fire in their bellies who want to prove themselves in big companies and have no issues about working in smaller markets. Pay them well - remember, you pay peanuts, you get only monkeys - and discuss the path their careers are likely to take in the organisation. And send them out in the field only after thorough training. Ensure the consistency of the team involved in any project, until the completion of a specific task. Recently, we were involved with two big clients. In both cases, the teams that briefed us in the initial stages and participated enthusiastically in the campaign, were shifted out midway, in keeping with their companies' policy of shifting and promoting people. The teams that succeeded felt no ownership of the campaigns they had not initiated. What started as a great rural marketing initiative has been relegated to the dustbin... the fate of many rural marketing initiatives in the country.

2) Goals are good

Early on in the campaign, define your objective: is it a tactical effort to achieve increased sales in specific areas during a specific time, or do you want to build a strong equity for your brand in rural India? Our experience with FMCG companies is that they are more interested in the first choice. Most of them have previously appointed vendors who implement the company's ideas blindly, be they van campaigns or below-the-line activities. There is very little effort to tailor whatever communication is made in such efforts, to suit the local audience or fit it with the overall campaign efforts in the mass media. This invariably leads to less than satisfactory results in terms of awareness of the brands and long-term impact of the efforts in the targeted markets. If you are interested in the second alternative, a comprehensive brand building strategy in rural India, with both short term and long term goals, is a must.

3) Know your customers

A good place to begin is studying the mindset of your customers, so you can create a customised plan of action. All too often, clients insist their knowledge of their customers (based on studies of urban India) is enough on which to base an action plan. Our experience shows that the attitudes, aspirations and fears of rural customers, with regard to products and brands, is very different from their urban counterparts. Research can give you invaluable ideas for new product development as well as new methods of reaching your target audience. The refrigerator with standby power for 12 hours, pressure cookers with two handles and a radio with key-winding mechanism are all the result of research. More and more companies turn to the local haats to sell their products. While haats offer opportunities to target consumers from several villages at one place, and to that extent make your effort costeffective, ensure that the people who patronise these haats are the kind who will buy your brand. For instance, we recently conducted a survey among some haats in Tamil Nadu, with some interesting results. The haats were popular with the poorest agricultural labourers who consciously buy the duplicate, spurious products that are sold in these bazaars, since they can't afford the real thing. It is estimated that FMCG companies lost more than Rs 10,000 crore (Rs 100 billion) to spurious products, mostly sold through such local haats and bazaars.

4) Ensure availability
Most anecdotes about rural marketing centre on the distribution aspect - the humongous task of physically reaching your product to over 600,000 villages, most of them without motorable roads. But it's not really as nightmarish as it is made out to be, at least keeping in mind the present goals of marketing companies in rural India. We've all heard about the shampoo sachets that are available in even the smallest villages. How does that happen? It's a direct result of rising aspirations, fuelled by television commercials. The consumer demands the product from the local shopkeeper, who then buys the products from the nearest feeder markets.

Which means if you can ensure distribution to the feeder markets in towns or villages with populations of 10-15,000, you've already taken the first step towards reaching your target customer. Studies also indicate that rural consumers prefer to shop for durables such as televisions, automobiles and appliances in the nearest big town or city. So, if your products are in towns with populations of 50,000, you're closer to the rural consumer than you would have thought. R V Rajan is chairman and managing director, Anugrah Madison Advertising, and president, Rural Marketing Agencies Association of India. R V Rajan Source:

Industrial Marketing Strategy

Developing A Strategy For Success.
Having an effective industrial marketing strategy is difficult for most manufacturing firms. Youre busy enough as it is to have to worry about the strategies youre employing for internet marketing. Youre busy spending your day taking and filling orders and ensuring the quality of your manufacturing product or service. And yet a good industrial marketing strategy is vital to maintain the health of your company. Internet Marketing is as important for an industrial firm as it is for a company that target consumers. Whether its consumer traffic, or business to business, people are searching for the products you sell on the internet. The only question is whether you are allowing them to find you.

Industrial Marketing Strategy: Leveraging the Power of the Internet

The internet is the most powerful tool for consumers ever created. It is also the most powerful advertising medium ever invented. Failure to take advantage of it is the biggest mistake your manufacturing firm can make. The internet should be the center of any manufacturing marketing strategy. Its not only the most effective form of marketing. Its low cost and requires very little effort from you or your overworked staff.

Industrial Marketing Strategies: Targeting the Right Clients

One the biggest advantages of online marketing is the volume of marketing research data. Before we target a specific market, we so exhaustive research to discover not only the sheer number of people searching for the industrial or manufacturing products or services you sell, but the likelihood of those people to actually purchase them. We use data gathered from billions of searches performed on search engines to discover what search phrases these people use to find products/services you sell. Once we find your firms most responsive customer and the terms they use to search, we craft your web site around the goal of attracting these customers to your site, and once there, convincing them to contact you.

Industrial Marketing Strategy: Sticking to The Plan

The secret of success for industrial internet marketing comes down to three things: Research, Focus, and Consistency of Message. These should be the focus of any industrial marketing strategy because doing these three things well will likely make you the online authority in your companys industry. The first step in the strategy is to convince the search engines that your web site is the best place on the internet for information. Second, convince the online visitors that the search engines send you that youre the best company to provide that particular product or service to them. The job, in essence, is the same, since search engines are constantly evolving into better mirroring the behavior of humans. So the focus should be on attracting customers at the same time as attracting search engines. Of course there are some tricks to the trade you need to follow. And thats where we come in. Just because you know how to create or service industrial products doesnt mean you know how to successfully market them online. The key to the entire strategy is to get noticed by the search engines. And without specific in-depth knowledge of search engine optimization techniques, the whole plan falls apart. The truth is: no search engine ranking equals no traffic. And no traffic equals no online sales. We are experts in all phases of internet marketing and can implement an industrial marketing strategy that works to improve your firms bottom line.

Industrial Marketing Advisers: Your Strategic Guide To Greater Sales

Weve helped many firms dramatically expand their sales in a variety of industrial and manufacturing industries. Our industrial marketing strategies have helped firms reach the top positions on search engines for their industry. And we can help your manufacturing product or service firm do the same. Fill out the form at the top of the page to get a free no-obligation consultation of what the potential is for your firms particular niche and how much it will cost to become an online authority in your particular industry.

Case Studies
Real World Examples Of Industrial Marketing Success

At Industrial Marketing Advisers, we are a goal-driven organization that judges itself on quantifiable results. In fact, we firmly believe that the singular goal of any industrial website design should be to attract targeted online traffic from search engines to your website. Its the best, most economical way to connect with your potential customers. Simple as that. We have a proven formula for generating online traffic, as evidenced by these examples.

Envirosafe Tanks manufactures bulk fuel storage systems. From their headquarters outside Orlando, Florida, they build custom fuel tanks from 500 gallon to 20,000 gallons. In 2008, with the recession hurting their sales, Envirosafe hired us to redesign their website with the goal in mind to attract new business through the internet. We performed keyword research, redesigned their website, and implemented other search engine optimization for them. Over a 3 year period, the results have been astounding. A fifteen-fold increase in website traffic. A dozen #1 Google rankings (all high traffic search terms). First page search engine rankings for 30 more search terms. Read the Envirosafe Case Study

Ace Belting is a supplier of industrial conveyor belts in New Jersey. In 2011, they hired us for a website redesign. The results were quick and dramatic. Within one month, traffic to the site was up 200% and grows on an average of 20% per month. Within 3 months, they had over a dozen top ten Google rankingsfor exactly the terms to attract their perfect clients.

Read the Ace Belting Case Study

Hallmark Metals is a metal fabrication company in Glendora, California. In the spring of 2011, they hired us for a website redesign. We implemented our standard

exhaustive research into the products, services, and market, identified some 200 search terms to target for their website then built the site to attract this traffic. They currently enjoy a #1 Google Rankingfor over a dozen targeted terms that help them attract the best prospects for their business.

Read the Hallmark Metals Case Study Read the case studies. Visit the sites. Run the Google searches yourself. Youll see that, if you are interested in reaching clients online, you should definitely talk to us. Fill out the form on the right hand side of this page or call us to see just how great the demand is for your market niche and how affordable an online industrial marketing plan can be.

Key Drivers of Marketing Strategies - Consumer Marketing Services marketing Competitor analysis - Analysis of consumer and industrial markets Strategic Marketing Mix components.