Marketing Applications & Practices : Sem II

eMBA
MARKETING APPLICATIONS
&
PRACTICES
E-MBA @ MET
Prof. Rajkamal Pandey (RKP)
Marketing Applications & Practices : Sem II
eMBA
CORE CONTENT
1. Marketing Strategy
2. Business & Marketing Plans
3. B2B Marketing
4. FMCG Marketing
5.Consumer Durables Marketing
6. Service Marketing
7. Rural Marketing
8. Retail Marketing
Marketing Applications & Practices : Sem II
eMBA
9. Direct Marketing
10. Internet Marketing
11. Event & Media Marketing
CORE CONTENT
Marketing Applications & Practices : Sem II
eMBA
Marketing takes day to learn. Unfortunately it
takes a lifetime to master
Marketing Applications & Practices : Sem II
eMBA
ANTICIPATING CHANGE
Chapter :1
Marketing Applications & Practices : Sem II
eMBA

WHATS CHANGING ???



Change
Consumers
Competition
Technology Environment
Economy
Marketing Applications & Practices : Sem II
eMBA
CHANGE IS INEVITABLE!
Consumers
Consumers becoming more individualist

Competition
Competitors becoming more agile

Technology
Technology becoming more superior



Marketing Applications & Practices : Sem II
eMBA
CHANGE IS INEVITABLE!
Environment
Environment becoming more exigent

Economy
Economy becoming more volatile
Marketing Applications & Practices : Sem II
eMBA
Largely companies lack insights and react to change
But,
Those companies who Anticipate change, emerges as
Winners
Marketing Applications & Practices : Sem II
eMBA
Marketing Applications & Practices : Sem II
eMBA
ANTICIPATE, DONT JUST FULFILL
Engage
Trustworthy & Transparent
Express
Be Intuitive & Natural
Connect
Seamless & Secure
Marketing Applications & Practices : Sem II
eMBA
DONT WAIT, ANTICIPATE
Marketing Applications & Practices : Sem II
eMBA
PRESENTATIONS
Topics for Presentation :

FMCG Industry
Consumer Durables Industry
BFSI Industry
Real Estate Industry
Media & Entertainment Industry
IT / ITES Industry
Online Marketing Industry
Luxury Brand Industry
Healthcare Industry
Service Industry
Education Industry
Automobile Industry
Retail Industry
Telecom Industry


Scope of Presentation :

Industry Overview :
- Overall Market size
- Industry growth rate
- GDP Contribution
- FII Limits
- Existing Companies
PEST Analysis
Swot Analysis
Porters 5 Force
Porters Generic Strategy
Case Analysis of the leading
player in that industry
- BCG Matrix
Future Outlook

Marketing Applications & Practices : Sem II
eMBA
PRESENTATIONS
Details :

Total Marks : 20 M
-Allocation : Content : 14 M ( 7 M each for Hardcopy & PPT)
-Commn / Cordn : 6 M

Time Limit : 30 mins per Group

Team needs to divide themselves into 2 subgroup : Presentation Group /
Q&A Group, consisting of equal number of students

Logical & Valid Questions from students will be appreciated

Marks : Weighted Average of individual scores

Marketing Applications & Practices : Sem II
eMBA
MARKETING : PANEL DISCUSSIONS
Customer is a king v/s Customer is a fool
Selling v/s Marketing
Market share v/s Profit
Recession : Spend v/s Hold
Online Marketing v/s Offline Marketing
Premium v/s Mass ( Merc v/s Maruti )
Focus v/s Diversification
Rural v/s Urban market

Marketing Applications & Practices : Sem II
eMBA
STRATEGIC MARKETING : UNDERSTANDING
Strategy : A plan of action intended to accomplish a specific goal
within defined time period.

A strategy is the pattern or plan that integrates an organization's
major goals, policies, and action sequences into a cohesive whole.

A well-formulated strategy helps to allocate an organization's
resources into a unique and viable posture based on its relative
internal competencies and shortcomings, anticipated changes in the
environment, and contingent moves by intelligent opponents.
Marketing Applications & Practices : Sem II
eMBA
STRATEGIC MARKETING
Formulation of an effective strategy requires marketers
to consider three main components : -


Strategy
Company
Customers
Competition
Marketing Applications & Practices : Sem II
eMBA
STRATEGIC MARKETING
Marketing : Is an organizational function and a set of processes
for creating, communicating and delivering value to customers
and for managing customer relationships in ways that benefit
the organization and its stakeholder
Marketing Applications & Practices : Sem II
eMBA
STRATEGIC MARKETING : INTRODUCTION
Marketing strategy is a process that can allow an organization to
concentrate its limited resources on the greatest opportunities to
increase sales and achieve a sustainable competitive advantage*.

A marketing strategy should be centered around the key concept
that ( needs to be defined by the company ), which become the
main goal.

Strategic Marketing is the tool available to achieve the defined
( main) goal.

Marketing Applications & Practices : Sem II
eMBA
STRATEGIC MARKETING : ORIGIN
Marketing Strategy
Marketing Objectives
Business Objectives
Market Dominance Strategy
Refine your process, Strive for dominance and build a strong
brand
Creating value for our customers, employees, investors,
partners, vendors and the society at large lies at the root of our
fundamental business objectives
Marketing Applications & Practices : Sem II
eMBA
Marketing Strategy
Marketing Objectives
Business Objectives
Vision / Mission / Core
Purpose
STRATEGIC MARKETING

By 2011 Airtel will be the most admired
brand in India:

Loved by more customers
Targeted by top talent
Benchmarked by more businesses

Marketing Plan
Marketing Applications & Practices : Sem II
eMBA
We at Airtel always think in fresh and
innovative ways about the needs of our customers
and how we want them to feel. We deliver what
we promise and go out of our way to delight the
customer with a little bit more

STRATEGIC MARKETING
Marketing Applications & Practices : Sem II
eMBA
Both people and organizations need to establish a strategic
framework for significant success. This framework consists of:
a vision for your future
a mission that defines what you are doing
values that shapes your actions
goals & action plans to guide your daily, weekly & monthly
actions
strategies that zero in on your key success approaches

STRATEGIC MARKETING : CORE EXISTENCE
Marketing Applications & Practices : Sem II
eMBA
Vision Statement
A vision is a statement about what your organization wants to
become.

It should resonate with all members of the organization and
help them feel proud, excited, and part of something much
bigger than themselves.

A vision should stretch the organizations capabilities and
image of itself. It gives shape and direction to the
organizations future.

Visions range in length from a couple of words to several
pages.
STRATEGIC MARKETING
Marketing Applications & Practices : Sem II
eMBA
P&G :To provide branded products and services of superior quality
and value that improve the lives of the world's consumers.

Toyota :To sustain profitable growth by providing the best
customer experience and dealer support.

Intel :To constantly push the boundaries of innovation in order to
make people's lives more exciting, more fulfilling, and easier to
manage. Our unwavering commitment to moving technology
forward has transformed the world by leaps and bounds.

BMW :To become most successful premium manufacturer in the
car industry.

Cont..
STRATEGIC MARKETING
Marketing Applications & Practices : Sem II
eMBA
Apple : The best personal computing experience to students,
educators, creative professionals and consumers around the
world through its innovative hardware, software and Internet
offerings.

Google :The Perfect Search Engine
Fed Ex :Leading the way

GE :We bring good things to life
Ford : To become the world's leading consumer company for
automotive products and services
STRATEGIC MARKETING
Marketing Applications & Practices : Sem II
eMBA
Inference :

Corporate vision inspires and energizes all employees

Communicate strategic direction

Develops an attitude of relentless growth

And most importantly sows the seed of MARKETING..
STRATEGIC MARKETING
Marketing Applications & Practices : Sem II
eMBA
It is most effective when it is an integral component of overall firm strategy, defining how
the organization will successfully engage customers, prospects, and competitors in the
market arena

As the customer constitutes the source of a company's revenue, marketing strategy is
closely linked with Growth

A key component of marketing strategy is often to keep marketing in line with a
company's overarching mission statement

Marketing strategy is a method of focusing an organization's energies and resources on a
course of action which can lead to increased sales and dominance of a targeted market
STRATEGIC MARKETING : IN A NUTSHELL
Marketing Applications & Practices : Sem II
eMBA
ELEMENTS OF MARKETING STRATEGY
MARKETING STRATEGY
Product / Market
Selection
Price Distribution Communications CRM Location
Technology Customization
Marketing Applications & Practices : Sem II
eMBA
Market Dominance Strategy
Innovation Strategy
Marketing Warfare Strategy
Porters Generic Strategy
Growth Strategy


STRATEGIC MARKETING: TYPES OF STRATEGIES
Marketing Applications & Practices : Sem II
eMBA
MARKET DOMINANCE STRATEGY
Sector
Online Search Engine
FMCG ( Personal Care )
Retail
Mobile Hand Set
Insurance
Glucose Biscuit
English News Channel
Milk / Milk Product
Computer Processor
Edible oil
Oil Refinery ( Private )
Company
Google
HUL
Future Group
Nokia
LIC
Parle G
CNBC
Amul
Intel
Saffola
Reliance
Marketing Applications & Practices : Sem II
eMBA
MARKET DOMINANCE STRATEGY - ORIGIN
Innovation Technology
First Mover Advantage ( FMA) Innovation
Control of Resources ( CoR) FMA
Manufacturing CoR
Economies of Scale ( EoS) Manufacturing
Cost Advantage EoS
Market Growth Cost Advantage
Market Share Market Growth
Market Leader Market Share
Market Dominance Market Leader
Marketing Applications & Practices : Sem II
eMBA
MARKET DOMINANCE STRATEGY
Market dominance is a measure of the strength of a brand,
product, service, or firm, relative to competitive offerings. In
defining market dominance, you must see to what extent a
product, brand, or firm controls a product category in a given
market.

Marketing Applications & Practices : Sem II
eMBA
MARKET DOMINANCE STRATEGY : WHY ?
Penetration Distribution
Availability Penetration
High Awareness ( Visibility ) Availability
High Recall High Awareness
Strengthen Brand Equity High Recall
Customer Loyalty Brand Equity
Brand Growth Customer Loyalty
Enterprise Growth Brand Growth
Category Growth Enterprise Growth
Industry Growth Category Growth
Marketing Applications & Practices : Sem II
eMBA
MARKET DOMINANCE STRATEGY - LEVELS
Market Leader
Market Challenger
Market Follower
Market Nicher
Marketing Applications & Practices : Sem II
eMBA
Typical Characteristics of Market Leader :
It is the industry leader in developing innovative new business models and
new products
It tends to be on the cutting edge of new technologies and new production
processes
It sometimes has some market power in determining either price or output
The main options available to market leaders are
- Expand the total market
- Sustain & Increase your existing market share

MARKET LEADER
Marketing Applications & Practices : Sem II
eMBA
Characteristics of Market Challenger :
A market challenger is a firm in a strong, but not dominant position that is following an
aggressive strategy of trying to gain market share
It typically targets the industry leader (for example, P&G target HUL), but it could also
target smaller, more vulnerable competitors.
The fundamental principles involved are:
- Assess the strength of the target competitor. Consider the amount
of support that the target might muster from allies.
- Choose only one target at a time.
-Find a weakness in the target's position. Attack at that point.
-Launch the attack quickly, then consolidate.

MARKET CHALLENGER
Marketing Applications & Practices : Sem II
eMBA
Some of the options open to a market challenger are:
price discounts or price cutting
line extensions
introduce new products
reduce product quality
increase product quality
improve service
change distribution
cost reductions
intensify promotional activity

MARKET CHALLENGER
Marketing Applications & Practices : Sem II
eMBA
MARKET FOLLOWER
A market follower is a firm that is not in a leading position at all and content to stay at
that position. The rationale is that by developing strategies that are parallel to those of
the market leader, they will gain much of the market from the leader while being
exposed to very little risk. This play it safe strategy is how Cocaraj retains its position
behind Parachute.
The advantages of this strategy are:
no expensive R&D failures
no risk of bad business model
best practices are already established
able to capitalize on the promotional activities of the market leader
minimal risk of competitive attacks
dont waste resources in a head-on battle with the market leader

Marketing Applications & Practices : Sem II
eMBA
In this niche strategy the firm concentrates on a select few target markets. It is
also called a focus strategy
It is hoped that by focusing ones marketing efforts on one or two narrow
market segments and tailoring your marketing mix to these specialized
markets, you can better meet the needs of that target market
The niche should be large enough to be profitable, but small enough to be
ignored by the major industry players.
Profit margins are emphasized rather than revenue or market share. The firm
typically looks to gain a competitive advantage through effectiveness rather
than efficiency
MARKET NICHER
Marketing Applications & Practices : Sem II
eMBA
The most successful nichers tend to have the following characteristics:

They tend to be in high value added industries and are able to obtain high
margins
They tend to be highly focused on a specific market segment
They tend to market high end products or services, and are able to use a
premium pricing strategy
They tend to keep their operating expenses down by spending less on
R&D, advertising, and personal selling

MARKET NICHER
Marketing Applications & Practices : Sem II
eMBA
Innovation Strategy refers to the creation, or reinvention, of a business
itself. Whereas innovation is more typically seen in the form of a new
product or service offering, a Business Model Innovation results in an
entirely different type of company (SBU) that competes not only on the
value proposition of its offerings, but aligns its profit formula, resources and
processes to enhance the value proposition, capture new market segments
and alienate competitors.

INNOVATION STRATEGY
Marketing Applications & Practices : Sem II
eMBA
INNOVATION STRATEGY
Value
Proposition
Operating
Model
Business
Model
Innovation
Marketing Applications & Practices : Sem II
eMBA
INNOVATION STRATEGY -VALUE PROPOSITION
The Value Proposition answers the question, What are we offering to whom ?
It reflects explicit choices along the following 3 dimensions :

Target Segment
Which
customer do
we choose to
serve ? Which
of their needs
to we seek to
address ?
Product / Service
What are we
offering to
customers to
satisfy their
needs ?
Revenue Model
How are we
compensated
for our
offerings ?
Marketing Applications & Practices : Sem II
eMBA
INNOVATION STRATEGY -OPERATING MODEL
The Operating model answers the question, How do we profitability deliver
the offering? It captures the businesss choices in the following 3 critical
areas :
Value Chain
How are we
configured to
deliver on
customer
demand ?
Cost Model
How do we
configure our
assets & costs
to deliver our
value
proposition
profitably ?
Organization
How do we
deploy &
develop our
people to
sustain &
enhance our
comp advtg ?
Marketing Applications & Practices : Sem II
eMBA
Innovation
Operating
Model
Value
Proposition
BUSINESS MODEL INNOVATION
ITC
Backward
Integration
Paper
Solutions
Marketing Applications & Practices : Sem II
eMBA
BUSINESS MODEL INNOVATION - LEVELS
Pioneers
Close Followers
Late Followers
Kotak
Mahindra
Tata AIG
Birla Sunlife
Marketing Applications & Practices : Sem II
eMBA
MARKETING WARFARE STRATEGY
Marketing warfare strategies are a type of strategies, used in business and
marketing, that try to draw parallels between business and warfare, and then
apply the principles of military strategy to business situations

The marketers following Marketing warfare strategy are more competitor
driven than customer driven

In regard to what marketing strategists call "first-mover advantage", in
Marketing Warfare Strategy, it is interpreted as : "Generally, he who
occupies the field of battle first and awaits an enemy is at ease, he who
comes later to the scene and rushes into the fight is weary"
Marketing Applications & Practices : Sem II
eMBA
MARKETING WARFARE STRATEGY
Theres is a saying that it is easier to get to the top than to stay there




But,
Once at the top, a company can use the power of its leadership position to
stay there
Marketing Applications & Practices : Sem II
eMBA
MARKETING WARFARE STRATEGY : TYPES
MWS
Defensive
Offensive
Flanking
Guerrilla
Marketing Applications & Practices : Sem II
eMBA
DEFENSIVE MARKETING STRATEGY
While trying to expand total market size, the dominant firm must continuously
& actively defend its current business

Defensive marketing warfare strategies are a type of marketing warfare
strategy designed to protect a company's market share, profitability, product
positioning, or mind share




Marketing Applications & Practices : Sem II
eMBA
PRINCIPLES OF DMS
Attacking yourself is the best defensive strategy : Introducing products
better than your existing ones pre-empt similar moves by the
competition.

Always block strong offensive moves made by competitors : If the
player fails to do so, the competitor may become entrenched &
permanently maintain market share

Defend important market / prodcut first : To sustain the advantage over
the competition, focus should never get diverted from core offering to the
defined target market

Market Leader strategy : Defensive strategies should be the exclusive
domain of the market leader.



Marketing Applications & Practices : Sem II
eMBA
OFFENSIVE MARKETING STRATEGY
The strength of the leaders position is of primary importance because the
leader has the top position in the mind of the consumer and it is this position
that must be attacked

Offensive marketing warfare strategies are a type of marketing warfare
strategy designed to obtain a specific objective, usually key customers
segments, high margin market segments, or high loyalty market segments.
Marketing Applications & Practices : Sem II
eMBA
PRINCIPLES OF OMS
The challengers primary concern should be the strength of the leaders
position, not the challengers own strength & weaknesses

The challenger should seek a weakness in a leaders strength, not simply
a weakness in the leaders position

Attack on as narrow a front as possible, avoid a broad attack
Marketing Applications & Practices : Sem II
eMBA
FLANKING MARKETING STRATEGY
A flanking attack is not a direct attack on the leader, but rather an attack in
an area where the leader has not established a strong position.

Flanking marketing warfare strategies are a type of marketing warfare
strategy designed to minimize confrontational losses.
Marketing Applications & Practices : Sem II
eMBA
PRINCIPLES OF FMS
A flanking move is best made in an uncontested area : A product should
be in a new category that does not compete directly with the leader and
should be the first to target the segment.

A flanking move should have an element of surprise : Surprise is
important to prevent the leader from using its enormous resources to
counter the move before it gains momentum.

Follow-through (Pursuit) is equally as important as the attack itself : The
firm should follow through and focus on solidifying its position once it is
established before competitors launch competing products, Too often,
management turns its attention to the products that are not performing
well rather than strengthening the position of its winners
Marketing Applications & Practices : Sem II
eMBA
GUERRILLA MARKETING STRATEGY
Guerilla Marketing is appropriate for companies that, relative to competition,
are too small to launch offensive or flanking moves.
The idea of guerilla marketing is to direct resources into a limited area, using
the principle of force to win that area
PRINCIPLES OF GMS
Identify a segment that is small enough to defend : The scope can be limited
geographically, demographically, by industry or by price


Marketing Applications & Practices : Sem II
eMBA
PRINCIPLES OF GMS