Omkar Anvekar

Strategic Marketing
A) Long Answer

Q1) Describe market challenger strategies with suitable example

The Market Challenger Strategies are the marketing strategies adopted by the firms, either occupying the
third or runners-up position in the market, to attack the leader or the immediate competitor with the
intention to capture a greater market share and earn huge revenues. Generally, the market challengers are
those firms, which have a good reputation in the market and enjoys a strong financial position. These firms
target the market leader or the competitor at the same level with the objective, to reach the first position in
the market or become an industry leader.

Market Challenger Strategies

The following are the general attack strategies adopted by the market challengers with a view to becoming
a market leader and increase the market share.

1.Frontal Attack: The frontal attack is the direct attack, wherein the market challenger matches with the
competitor’s product, price, advertising, and promotion activities.
The market challenger can even cut the price of the product, provided he convinces the customers that the
quality is not compromised and is as good as the high priced products.

E.g. Amul adopted this strategy when it launched Amul Kool and Amul Masti Dahi at a low price with the
same level of the quality as that of other competitors in the market.

2.Flank Attack: The flank attack means, attacking the competitor on its weak points. Here the market
challenger determines the weak areas of the competitor in terms of two strategic dimensions i.e. Geographic
and segmental. The challenger finds the areas where the competitor is under performing and then push its
marketing strategies in that area. Also, the challenger spot the segments which the competitor left untapped
and try to cover that segment through its products and services.

E.g. L.G has successfully made use of this strategy by introducing the color tv “ Sampoorna” for the rural
people and outshine the other colored TV players who had a less focus on these areas.

3.Encirclement Attack: The encirclement attack means, attacking the market leader or a competitor from all
the fronts simultaneously, it is the combination of both the frontal and the flank attack. Here, the market
challenger launches several offensive campaigns i.e. surrounds the competitor with a varied brand and
forcing the competitor to defend himself from all the sides simultaneously. This strategy is adopted to enjoy
the long-term market dominance.

E.g. The FMCG industry applies this attack more aggressively with the intention to outshine the other. ITC
and HUL could be the best examples.

4.Bypass Attack: This is an indirect attack where market challenger bypasses the leader and attacks easier
market to broaden its resource base. There are several ways to do this. Such ways are developing new
product, diversifying into unrelated product or expanding into new geographical market with existing
products. This strategy is done to achieve dominance in the market you are working in for a long term and
is actually a very good one if the industry you are currently working in is very competitive.

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E.g. Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very well before the
Coca Cola’s mineral water brand.

5.Guerrilla Marketing: means gaining small victories that can over time give huge impact for you to increase
your market share. Usually, this strategy is done by a small company that first makes it a success in the local
market. After that, they usually introduce the price and trade discounts. This is because every large player
at some point was small in the industry. Besides, this strategy is known to demoralize the competitors and
eventually help you to secure your place in the industry.

E.g. The Pepsi and Coca-Cola follow this strategy aggressively with the intention to harass each other.When
the Coca-cola was the official partner of the world cup, the Pepsi counter-attacked it by using the punch line

Q2) Describe different entry strategies in international market

There are a variety of ways in which a company can enter a foreign market. No one market entry strategy
works for all international markets. Direct exporting may be the most appropriate strategy in one market
while in another you may need to set up a joint venture and in another you may well license your
manufacturing. There will be a number of factors that will influence your choice of strategy, including, but
not limited to, tariff rates, the degree of adaptation of your product required, marketing and transportation
costs. While these factors may well increase your costs it is expected the increase in sales will offset these
costs. The following strategies are the main entry options open to you.

1.Direct Exporting is selling directly into the market you have chosen using in the first instance you own
resources. Many companies, once they have established a sales program turn to agents and/or distributors
to represent them further in that market. Agents and distributors work closely with you in representing your
interests. They become the face of your company and thus it is important that your choice of agents and
distributors is handled in much the same way you would hire a key staff person.

2.Licensing is a relatively sophisticated arrangement where a firm transfers the rights to the use of a product
or service to another firm. It is a particularly useful strategy if the purchaser of the license has a relatively
large market share in the market you want to enter. Licenses can be for marketing or production. licensing).

3.Franchising is a typical North American process for rapid market expansion but it is gaining traction in
other parts of the world. Franchising works well for firms that have a repeatable business model (eg. food
outlets) that can be easily transferred into other markets. Two caveats are required when considering using
the franchise model. The first is that your business model should either be very unique or have strong brand
recognition that can be utilized internationally and secondly you may be creating your future competition in
your franchisee.

4.Partnering is almost a necessity when entering foreign markets and in some parts of the world (e.g. Asia)
it may be required. Partnering can take a variety of forms from a simple co-marketing arrangement to a
sophisticated strategic alliance for manufacturing. Partnering is a particularly useful strategy in those
markets where the culture, both business and social, is substantively different than your own as local
partners bring local market knowledge, contacts and if chosen wisely customers.

5.Joint Ventures are a particular form of partnership that involves the creation of a third independently
managed company. It is the 1+1=3 process. Two companies agree to work together in a particular market,
either geographic or product, and create a third company to undertake this. Risks and profits are normally
shared equally. The best example of a joint venture is Sony/Ericsson Cell Phone.

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6.Buying a Company In some markets buying an existing local company may be the most appropriate entry
strategy. This may be because the company has substantial market share, are a direct competitor to you or
due to government regulations this is the only option for your firm to enter the market. It is certainly the
most costly and determining the true value of a firm in a foreign market will require substantial due diligence.
On the plus side this entry strategy will immediately provide you the status of being a local company and
you will receive the benefits of local market knowledge, an established customer base and be treated by the
local government as a local firm.

7.Piggybacking is a particularly unique way of entering the international arena. If you have a particularly
interesting and unique product or service that you sell to large domestic firms that are currently involved in
foreign markets you may want to approach them to see if your product or service can be included in their
inventory for international markets. This reduces your risk and costs because you are essentially selling
domestically and the larger firm is marketing your product or service for you internationally.

8.Turnkey Projects are particular to companies that provide services such as environmental consulting,
architecture, construction and engineering. A turnkey project is where the facility is built from the ground
up and turned over to the client ready to go – turn the key and the plant is operational. This is a very good
way to enter foreign markets as the client is normally a government and often the project is being financed
by an international financial agency such as the World Bank so the risk of not being paid is eliminated.

9.Greenfield Investments require the greatest involvement in international business. A greenfield

investment is where you buy the land, build the facility and operate the business on an ongoing basis in a
foreign market. It is certainly the most costly and holds the highest risk but some markets may require you
to undertake the cost and risk due to government regulations, transportation costs, and the ability to access
technology or skilled labour.

Q3) What is green marketing? Discuss various issues/problems involved in green marketing

Green marketing is the marketing of products that are presumed to be environmentally safe. It incorporates
a broad range of activities, including product modification, changes to the production process, sustainable
packaging, as well as modifying advertising. Yet defining green marketing is not a simple task where several
meanings intersect and contradict each other; an example of this will be the existence of varying social,
environmental and retail definitions attached to this term. Other similar terms used are environmental
marketing and ecological marketing.

1. Change leads to costs Changing your marketing tactics takes time and the development of a new strategy,
which typically translates into increased costs. While your sustainable efforts and practices are designed to
save money, when a company puts effort into changing their brand to be more environmentally friendly,
those changes can have expensive upfront costs.

2. Costly Green Certifications To commercialize your products as “green”, depending on your industry you
might have to go through a long and pricey process to obtain the environmental certifications. These
certifications, which the governments, industry associations, professional associations and consumer rights
groups distribute, use certain certifications to meet industry environmental standards. This is especially true
for companies operating in the fields of energy consumption and recycling waste management.

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3. Green washing As green marketing brings so many advantages to a business, a lot of big companies try
to look “greener” and the majority of it is just green washing. This means a company will make something
not sustainable look green by putting all of the attention on a little detail.

4.The Switch Can Be Expense It can be costly for a corporation to go green initially. For example, the switch
to solar power will create the need to install solar panels at business facilities. The cost reductions in energy
savings gained by going green are not always enough to offset the initial upfront conversion costs. In some
locations, however, tax benefits are provided that can help companies offset the costs of making the switch.

5.Pushes Up the Price of Products In some cases, the switch to using green materials can lead to higher costs
in your production process or elsewhere in your facility. A furniture manufacturer who switches suppliers to
buy only sustainably harvested wood will likely have to pay a premium price for his lumber. The larger costs
either have to be passed along to customers in terms of higher prices or have to come at the company's
expense in terms of a smaller profit margin on its products.

6.Going Paperless Means Data Risks For some companies, a common method of going green is to minimize
or even eliminate the use of paper. This can pose some disadvantages. For example, if employees lose or
experience the theft of laptop computers, sensitive information that would normally be kept in a locked
paper file could fall into the wrong hands. If companies don’t properly back up their computer files, a system
crash could prove disastrous Paper records, however "nineteenth century" they may seem, still serve as a
valuable backup to the electronic documents that dominate record-keeping in the modern era.

7.Customer Backlash Companies may intentionally or unintentionally make false claims regarding the
environmental friendliness of their products, a process known as “greenwashing.” A product that insists it
has "no added chemicals" for example, could be criticized for its choice of wording, since even naturally-
derived ingredients consist of chemical substances. If consumers become aware that a company is engaging
in greenwashing, the company may suffer harm to its credibility.

Q4) Discuss strategic role of marketing in detail

Marketing strategy is a long-term, forward-looking approach to planning with the fundamental goal of
achieving a sustainable competitive advantage. Scholars continue to debate the precise meaning of
marketing strategy. Consequently, the literature offers many different definitions. On close examination,
however, these definitions appear to center around the notion that strategy refers to a broad statement of
what is to be achieved. Strategic planning involves an analysis of the company's strategic initial situation
prior to the formulation, evaluation and selection of market-oriented competitive position that contributes
to the company's goals and marketing objectives

1. Meets consumer needs and wants: Needs pre-exist in market. Marketers identify the needs of the
consumer and adopt their marketing strategies accordingly. They influence wants, as these are shaped by
cultural and individual personalities. Their needs are satisfied through the exchange process.

2. Ensures organization survival, growth and reputation: A business survives because of customer retention
and increase in the market share. Marketing helps companies achieve their objectives because it is customer-
centric. Marketing helps in satisfying customers beyond their expectations.

3. Widens market: Marketers use mass communication tools such as advertising, sales, promotion, event
marketing and PR to promote their products far and wide. Moreover, PR programmed build and protect a
company’s image and product. Revolutions in media technology have made market­ing more interactive.

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4. Adapting the right price: Price is a critical element in the marketing mix of a producer because it generates
revenue. Marketing strategies help in setting fair prices, incorporating appropriate changes, and preparing
a right approach. The exchange process move smoothly when prices are fixed in a favourable manner.

5. Better product offerings: Most companies sell more than one product. Physical products, that is goods
have to be well packed and labelled. In contrast, services are characterized by intangibil-ity and
inseparability. Thus, marketing plays an active role by designing and managing product offerings.

6. Creates utility: Much of a product’s utility is created through marketing. Utility is the ability of a product
to satisfy wants. Marketing creates form, place, time, information and possession utility. For example, a car
fulfills the need to possess a vehicle and ride it.

7. Management of demand: Marketers are skilled professionals who play a key role in influencing level,
timing and composition of demand. A demand can be a negative demand, no demand, latent demand,
declining demand, irregular demand, full demand or overfull demand. Marketing helps in dealing with these
varied levels of demand.

8. Face competition: Competitive orientation is important in today’s global markets. Marketing helps in
maintaining balance of consumers’ expectations and competitor’s offerings by monitor­ing the market
closely. Superior services, premium products and efficient dealership are used by marketers to retain their
market share.

Q5) Explain methods/types of industry analysis

An industry analysis is a business function completed by business owners and other individuals to assess the
current business environment. This analysis helps businesses understand various economic pieces of the
marketplace and how these various pieces may be used to gain a competitive advantage. Although business
owners may conduct an industry analysis according to their specific needs, a few basic standards exist for
conducting this important business function

1 Competitive Forces Model (Porter’s 5 Forces)

One of the most famous models ever developed for industry analysis, famously known as Porter’s 5 Forces,
was introduced by Michael Porter in his 1980 book “Competitive Strategy: Techniques for Analyzing
Industries and Competitors.”

According to Porter, analysis of the five forces gives an accurate impression of the industry and makes
analysis easier. In our Corporate & Business Strategy course, we cover these five forces and an additional
force — power of complementary good/service providers.

A. Competitive Forces Model

1. Intensity of industry rivalry The number of participants in the industry and their respective market shares
are a direct representation of the competitiveness of the industry. These are directly affected by all the
factors mentioned above. Lack of differentiation in products tends to add to the intensity of competition.
High exit costs like high fixed assets, government restrictions, labor unions, etc. also make the competitors
fight the battle a little harder.

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2. Threat of potential entrants This indicates the ease with which new firms can enter the market of a
particular industry. If it is easy to enter an industry, companies face the constant risk of new competitors. If
the entry is difficult, whichever company enjoys little competitive advantage reaps the benefits for a longer
period. Also, under difficult entry circumstances, companies face a constant set of competitors.

3. Bargaining power of suppliers This refers to the bargaining power of suppliers. If the industry relies on a
small number of suppliers, they enjoy a considerable amount of bargaining power. This can affect small
businesses because it directly influences the quality and the price of the final product.

4. Bargaining power of buyers The complete opposite happens when the bargaining power lies with the
customers. If consumers/buyers enjoy market power, they are in a position to negotiate lower prices, better
quality, or additional services and discounts. This is the case in an industry with more competitors but with
a single buyer constituting a large share of the industry’s sales.

5. Threat of substitute goods/services The industry is always competing with another industry in producing
a similar substitute product. Hence, all firms in an industry have potential competitors from other industries.
This takes a toll on their profitability because they are unable to charge exorbitant prices. Substitutes can
take two forms – products with the same function/quality but lesser price, or products of the same price but
of better quality or providing more utility.

B. Broad Factors Analysis (PEST Analysis)

Broad Factors Analysis, also commonly called the PEST Analysis stands for Political, Economic, Social and
Technological. PEST analysis is a useful framework for analyzing the external environment.

1. Political factors that impact an industry include specific policies and regulations related to things like taxes,
environmental regulation, tariffs, trade policies, labor laws, ease of doing business, and the overall political
stability.

2. Economic forces that have an impact include inflation, exchange rates (FX), interest rates, GDP growth
rates, conditions in the capital markets (ability to access capital), etc.

3. Social The social impact on an industry refers to trends among people and includes things such as
population growth, demographics (age, gender, etc), and trends in behavior such as health, fashion, and
social movements.

4. Technological The technological aspect of PEST analysis incorporates factors such as advancements and
developments that change the way a business operates and the ways in which people live their lives (i.e.
advent of the internet).

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Q6) What is the concept of CRM? Explain the Components of CRM

Customer relationship management (CRM) is an approach to manage a company's interaction with current
and potential customers. It uses data analysis about customers' history with a company to improve business
relationships with customers, specifically focusing on customer retention and ultimately driving sales
growth. One important aspect of the CRM approach is the systems of CRM that compile data from a range
of different communication channels, including a company's website, telephone, email, live chat, marketing
materials and more recently, social media.[Through the CRM approach and the systems used to facilitate it,
businesses learn more about their target audiences and how to best cater to their needs.

1.Sales Force Automation is the most essential components of customer relationship management. This is
one such component that is undertaken by the maximum business organizations. It includes forecasting,
recording sales processing as well as keeping a track of the potential interactions. It helps to know the
revenue generation opportunities better and that makes it very significant. The component also includes
analyzing the sales forecasts and the performances by the workforce. To achieve an overall improvement in
the development and growth of the industry, numerous components work hand in hand to form salesforce
automation as a consequent unit. Some of the major elements of the same are Lead Management, Account
Management, Opportunity Management, Forecasting, Pipeline Analysis, Contact Management, Activity
Management, Email Management and Reporting.

2.Human Resource Management involves the effective and correct use of human resource and skills at the
specific moment and situation. This requires to be make sure that the skills and intellectual levels of the
professionals match the tasks undertaken by them according to their job profiles. It is an essential
component not only for the large scale corporations but the medium industries as well. It involves adopting
an effective people strategy and studying the skills or the workforce and the growth being generated thereby
designing and implementing the strategies needed accordingly with the aim of achieving development. Lead
Management

3.Lead Management as the name suggests, refers to keeping the track of the sales leads as well as their
distribution. The business that are benefitted by this component of CRM the most are the sales industries,
marketing firms and customer executive centers. It involves an efficient management of the campaigns,
designing customized forms, finalizing the mailing lists and several other elements. An extensive study of the
purchase patterns of the customers as well as potential sales leads helps to capture the maximum number
of sales leads to improve the sales.

4.Customer Service Customer Relationship Management emphasizes on collecting customer information

and data, their purchase information’s and patterns as well as involves providing the collected information
to the necessary and concerned departments. This makes customer service an essential component of CRM.
Almost all the major departments including the sales department, marketing team and the management
personnel are required to take steps to develop their awareness and understanding of the customer needs
as well as complaints. This undoubtedly makes the business or the company to deliver quick and perfect
solutions and assistance to the customers as well as cater to their needs which increases the dependability
and trust of the customers and people on the organization.

5.Marketing is one of the most significant component of Customer Relationship Management and it refers
to the promotional activities that are adopted by a company in order to promote their products. The
marketing could be targeted to a particular group of people as well as to the general crowd. Marketing
involves crafting and implementing strategies in order to sell the product. Customer Relationship
Management assists in the marketing process by enhancing and improving the effectiveness of the strategies
used for marketing and promotion. This is done by making an observation and study of the potential
customers. It is a component that brings along various sub-elements or aspects. Some of the major elements
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of marketing are List Management, Campaign Management, Activity Management, Document Management,
Call Management, Mass Emails and Reporting.

6.Workflow Automation A number of processes run simultaneously when it comes to the management and
this requires an efficient cost cutting as well as the streamlining of all the processes. the phenomenon of
doing so is known as Workflow Automation. It not only reduces the excess expenditure but also prevents
the repetition of a particular task by different people by reducing the work and work force that is getting
wasted for avoidable jobs. Routing out the paperwork and form filling are some of the elements of the
process and it aims at preventing the loss of time and excess effort.

7.Business Reporting CRM comes with a management of sales, customer care reports and marketing. The
customer care reports assist the executives of a company to gain an insight into their daily work management
and operations. This enables one to know the precise position of the company at any particular instance.
CRM provides the reports on the business and that makes it play a major role here. It is ensured that the
reports are accurate as well as precise. Another significant feature is the forecasting and the ability to export
the business reports on other systems. In order to make comparisons, one can save historical data as well.

8.Analytics is the process of studying and representing the data in order to observe the trends in the market.
Creating graphical representations of the data in the form of histograms, charts, figures and diagrams
utilizing the current data as well as the one generated in the past is essential to achieve a detailed
understanding and study of the trends. Analytics is an extremely significant element of Customer
Relationship Management as it allows to make in-depth study of information that is required to calculate
the progress in the business. Different components of Customer Relationship Management are associated
with different elements mainly, the customer acquisition, improved customer value and customer retention.

Q7) Explain Social marketing strategy?

Social media is crucial to the success of any company's digital marketing strategy. Despite this, brands of all
kinds and sizes are not using this tool to its full potential. Although the number of "follows", "likes" and
"shares" is still important, the credibility of a brand is distinguished by far more than just this. Today, social
media requires a unique set of skills whereby brands need to fully understand the needs of their audience.

1. Start using chatbots. You may have already heard, but chatbots are in. This comes as no surprise as they
are the one digital tool that can communicate and resolve problems for your customers without the potential
need for any human interruption. In addition to the above, chatbots integrate with the platforms that
consumers now feel most comfortable interacting through: social media.

2. Create a personalized experience for customers. Chatbots are not only a great way to automate certain
everyday tasks, and if implemented properly, your chatbot will allow you to create more personalized
experiences for your customers. To do this, stop linking your advertisements solely to your landing pages,
and create ads that redirect your audience to a Messenger window with your chatbot.

3. Create an efficient content marketing strategy. Quality is key and content is no exception. Content
marketing has been a prominent form of marketing for a long time and this is not set to change anytime
soon. Many brands are not linking quality content with the right posting schedule and the correct frequency
of posts. High-quality SEO content coupled with all the above will help you bring in the right customers at
the right time. Aside from its ability to attract an organic audience, a good content marketing strategy can
be implemented for free. Be sure to create a relevant hashtag strategy along with your optimized and
thorough content.

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4. Create a community for your audience. Although “followers” and the many other metrics are important,
they are not the "be all and end all" to social media success. You need to show your audience that you are
not just a robot. Integrate personality through humor and emotions into your posts so that your audience
can relate to your brand. Social media is all about being social, and if your customers see the same types of
posts time and time again, they will lose interest.

5.Profiles with a diverse content strategy. People respond to good imagery, fun videos, and some
interesting podcasts once and awhile. Jazz up your content by using this type of media regularly. Your social
media pages will look bland if all you post and share is text, so be sure to use other types of media to catch
your audience's eye. This is also a great way to add a level of personality to your brand.

6. Run cross-channel campaigns. To further engage your customers, run cross-channel campaigns across all
your social media channels. Keep in mind that these campaigns are run by virtually every company today, so
you will need to give yourself an edge to help you stand out from the crowd. Add an emotional component
to your social media campaigns so that your audience can relate to your cause. An efficient cross-channel
social media campaign

7. Create profiles on the relevant channels. Today, people create profiles on every social media channel
available with the aim of reaching as many people as possible. Unfortunately, with that mindset, you will not
reach your chosen target audience. As a result, it is key you look at your buyer personas when choosing your
social media channels. For example, you won't necessarily need a LinkedIn profile if you are launching a
gothic clothing brand; the same as you won't need to be on Pinterest to promote your surveillance services.

8. Establish a social media budget. Social media platforms are one of, if not the most important, forms of
marketing. Allocating the right budget to your social media endeavors is crucial to your success. Not only
this, leveraging that budget with the right strategy will be the most cost-effective way for you to reach your
chosen target audience. Because social media is used on a much more personal level, you will also find that
it is a place where you can make a much deeper connection with your customers

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B) Short Notes

Q1) Sustainable competitive advantages

Sustainable competitive advantages are required for a company to thrive in todays global environment.
Value investors search for companies that are bargains. In order to avoid purchasing a value trap one of the
factors we search for is sustainable competitive advantages. Without one or more sustainable competitive
advantages a company may not be able to recover from whatever caused the stock to become a bargain.
We only want to buy the stocks of companies that are real value investments, not value traps. In other words,
we want to buy stocks trading below their intrinsic value and will grow cash flow for shareholders.

Definition: Sustainable competitive advantages are company assets, attributes, or abilities that are difficult
to duplicate or exceed; and provide a superior or favorable long term position over competitors.

1. Low Cost Provider/ Low pricing Economies of scale and efficient operations can help a company keep
competition out by being the low-cost provider. Being the low cost provider can be a significant barrier
to entry. In addition, low pricing done consistently can build brand loyalty be a huge competitive
advantage
2. Market or Pricing Power A company that has the ability to increase prices without losing market share
is said to have pricing power. Companies that have pricing power are usually taking advantage of high
barriers to entry or have earned the dominant position in their market.
3. Powerful Brands It takes a large investment in time and money to build a brand. It takes very little to
destroy it. A good brand is invaluable because it causes customers to prefer the brand over competitors.
Being the market leader and having a great corporate reputation can be part of a powerful brand and a
competitive advantage (i.e. Coca-Cola (KO).

4. Strategic assets Patents, trademarks, copy rights, domain names, and long term contracts would be
examples of strategic assets that provide sustainable competitive advantages. Companies with excellent
research and development might have valuable strategic assets (i.e. International Business Machines
(IBM).
5. Product Differentiation A unique product or service builds customer loyalty and is less likely to lose
market share to a competitor than an advantage based on cost. The quality, number of models, flexibility
in ordering (i.e. custom orders), and customer service are all aspects that can positively differentiate a
product or service.
6. Strong Balance Sheet / Cash Companies with low debt and/or lots of cash have the flexibility to make
opportune investments and never have a problem with access to working capital, liquidity, or solvency
(i.e Nike (NKE). The balance sheet is the foundation of the company.
7. Outstanding Management / People There is always the intangible of outstanding management. This is
hard to quantify, but there are winners and losers. Winners seem to make the right decisions at the right
time. Winners somehow motivate and get the most out of their employees, particularly when facing
challenges. Management that has been successful for a number of years is a competitive advantage.

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Q2) Strategies for mature markets

A key challenge to growing your publishing firm is to find new paths to greater revenue by building upon
your core strengths without making a radical shift in the way you currently do business.There are ways in
which you can build a steady flow of revenue and profits to help your business reach significant long-term
value as you expand your comfort zone. Here are nine strategies for increasing your sales

1. Targeted marketing. Different groups of people can profit in unique ways from using your content.
Communicate directly with buyers to remind or inform them of how well the information in your book
can benefit them in some way.
2. Product redesign. You may need to enhance your product to meet additional needs and boost the overall
value proposition. That might entail changing the delivery of your information to an ebook, booklet, or a
seminar.
3. New product development. If sales of your current product line languish, you may need to replace
exiting titles or extend your product line. Line extensions can be made into one category (Chicken Soup
for the Soul books), or into several categories such as Weight-Watchers services, books, magazines, and
foods.
4. Distribution extension. Instead of distributing your books only to bookstores, expand your distribution
to other retail outlets such as airport stores, supermarkets, and specialty retailers. Your existing trade
distributor may already have access to these outlets, so your objective becomes harnessing existing non-
traditional channels that can quickly and easily reach more consumers where they shop.
5. New channel creation. If you do not have trade distribution or if your distributor does not reach non-
traditional markets, your objective becomes building parallel distribution and sales channels to penetrate
new segments. This might entail partnering with a library wholesaler, finding sales representatives to call
on gift shops or sell through book clubs, catalogs, display-marketing companies, or home-shopping
networks.
6. New business-model development. Some publishers sell exclusively through bookstores (bricks and
clicks). Distribution discounts, returns, and mass-market promotion can reduce profits significantly. In
addition, seek sales to non-retail buyers such as those in corporations, associations, and government
agencies. Since there is no existing distribution to these segments your business model must be adapted
to sell directly to these buyers.

Q3) Global pricing policy alternatives

1.Long term price floor is fixed by local costs plus a return on invested capital and personnel –The company
may set the price lower than cost plus return in the short term if it pursues market penetration or other
objective like estimating the size of a market at a price –It is believed that headquarter price coordination is
necessary in dealing with international accounts and product arbitrage –Geocentric approach is the only
pricing policy that lends itself to global competition

2.Basic Pricing Considerations in International Markets Does price reflect product quality? Is it competitive?
What should be the pricing objective? Discounts and allowances for international customers Prices in
different segments Price elasticity of demand Host country governments perception of price Dumping laws
of the host country

3.Determining prices in global markets is complicated Exchange rates fluctuate and bear limited relationship
to costs. Fluctuation may result in gains or losses Pricing systems must be consistent with global constraints
like international transportation cost, middlemen in international channels of distribution, equal price
treatment regardless of location demands of global accounts National markets vary in cost, competition and

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demand dimensions of pricing Company faces varying or conflicting tax policies, price controls by
governments Different interest groups within the company may pursue different pricing objectives Exporting
companies do not run after the best price but frequently use a simple approach like cost plus

4.GLOBAL PRICING STRATEGIES Availability of market information in different countries differ. Managers
must rely on intuition and experience and may use analogy for determining potential demand. Companies
may adapt different approaches to pricing in different countries

5.International pricing decisions Firm-level factors Corporate and marketing objectives Competitive strategy
Firm positioning Product development Production location Market entry modes Product factors Stage in PLC
Place in product line Most important product features Product positioning Product cost structure

6.ADDITIONAL PRICING ISSUES Gray Market Goods / Parallel Importing When a company manufactures in
several countries & sells the product in many countries the same product may appear in he market in
different countries at widely different prices This may be due to parallel imports/ gray trade where
trademarked products exported from one country to another where they are sold by unauthorized persons
or organizations other than the authorized importer. A coordinated pricing policy is required bu not easily
implemented.

7.TRANSFER PRICING Transfer pricing leads to complications and policies are required Corporate profit
centers emerged and became an important component of corporate financial management as companies
expanded and decentralized operations These centers are useful in Measuring and evaluating performance
–Motivating divisional management

Q4) Cause related marketing

Cause marketing is marketing done by a for-profit business that seeks to both increase profits and to better
society in accordance with corporate social responsibility, such as by including activist messages in
advertising. A similar phrase, cause-related marketing, usually refers to a subset of cause marketing that
involves the cooperative efforts of a for-profit business and a non-profit organization for mutual benefit. A
high-profile form of cause-related marketing occurs at checkout counters when customers are asked to
support a cause with a charitable donation. Cause marketing differs from corporate giving (philanthropy), as
the latter generally involves a specific donation that is tax-deductible, while cause marketing is a promotional
campaign not necessarily based on a donation.

1.Creates a lasting impact on sales Supporting a cause has a powerful impact on shopper’s psychology.
Cause marketing becomes another selling point for your products or services and increases brand loyalty.
It’s been shown that consumers are actually willing to pay more for cause-related products and services!

2.Fosters a good relationship with your brand increasing customer loyalty and trust Cause marketing
nurtures a feeling of goodwill between you and consumers. The warm and fuzzy feeling people get from
supporting a worthwhile cause becomes associated with you. This cultivates continued loyalty and trust with
your brand.

3.Targets a specific audience Depending on the cause you partner with different people will be interested.
For example, if you were to partner with a charity working with no kill shelters this would bring in individuals
interested by that topic. This goes for any issue. Each theme will bring different consumers to your door – so
make sure you’re ready to receive them and that they will find satisfaction in what you have to offer.

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4.Distinguishes you from competitors We live in a very competitive marketplace. It has become increasingly
harder to stand out among the noise and cause-related marketing may be just the edge you need. When a
consumer is choosing between two similar products or services the tipping point usually comes because of
a lower price or claimed superior product. However, due to the influx of social responsibility movements
more people are likely to choose a product over another if it supports a worthy cause.

5.Satisfies growing expectations People care. It’s important to increase your appeal to the wide landscape
of individuals and their ideals – this now includes supporting a cause. In the end, cause-related marketing is
something consumers expect now and if you’re not doing it then your competitor probably is. Don’t get left
behind in the movement – hop on board and reap the benefits of doing something good. To help you set up
and/or manage your cause-related marketing plan contact Strategies today

6.Chose a single focus that makes sense. For some brands, one issue is central enough to the brand
personality to merit a singular focus. For example, the crowdfunding and awareness effort Sports Matter
(led by our client DICK’S Sporting Goods) rose $4.5 million for 184 youth sports teams in 2014 and will reach
thousands in 2015. Meanwhile, Dove has built a franchise from its topical, authentic, and beautiful Real
Beauty campaign.

7.Develop a personality. A brand can foster a “personality trait” by embracing a range of issues that are not
directly linked but express a generally similar view of the world. (Just note: This type of positioning can also
narrow your customer base!) Ben & Jerry’s, for example, applies humor and unabashed progressivism to its
consumer communication and action on campaign finance reform, gay marriage, and climate change.
Patagonia’s CEO believes “business can be an agent of change” and proudly puts the brand behind “any fight
worth fighting,” from removing river dams to changing the denim industry.

Q5) CRM in Service

Customer satisfaction has always been a key element in the pursuit of corporate goals and objectives.
However, the current competitive environment fostered by liberalization and globalization of the econ-omy
and the rising customer expectations for quality, service and value have promoted many compa-nies to
organize their business around the customers they serve, rather than around the product lines or geographic
business units. Customer relationship management (CRM) first gained prominence in the early 1990s. It
refers to the holistic approach that organizations can take to manage their relationships with their
customers, includ-ing policies related to contact with customers, collecting, storing, analyzing customer
information, and the technology needed to perform these tasks

1. Better service to customers: CRM provides more avenues for customers to communicate and explain
their needs to the organization through numerous contact points. Customers get increased satisfaction and
a feeling of being special and important because of the increased personalization of services and
customization of goods offered to them.

2. Customization of market offerings: Companies can customize a product or service depending on the data
available with the firm. The firm can facilitate customer-company interaction through the company contact
centre and web site. Such interactions help develop customized products.

3. Reduction in the customer defection rate: CRM emphasizes on training and development of the
employees to become more customer oriented. Due to CRM training and development, employees show
care and concern towards the valuable customers; therefore, the customer defection rate may be reduced
to a great extent.

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4. Increase and improvement in long-term relationships: Some firms treat their customers as partners.
Firms solicit the help of the customers to design new products or to improve their ser-vices. If the customer
gets involved with the firm, they are more likely to remain with the firm.

5. Increase in customer equity: CRM increases customer equity. Firms focus the marketing efforts more on
the most valuable customers (MVCs). The main aim of CRM is to produce high customer equity. Customer
equity is the sum of lifetime values of all customers. More focus on MVCs will enable a firm to increase the
customer equity.

6. Competitive advantage: The firms that adopt CRM get competitive advantage in the market. They can
face the competition with much ease. Competitive advantage helps in generating higher returns on
investment.

7. Building and maintaining corporate image: The image of the firm also gets enhanced. Loyal customers
become evangelists. The evangelists spread a good word about the company and its products. This enables
a firm to get additional customers to its fold.

8. Higher return on investment: Due to CRM, a company gains a position to generate higher returns on
investment. This is because of the repeat purchases on the part of the loyal customers. The company also
makes money through cross selling. The higher return on investment increases the shareholders’ value.

Q6) Flanker Strategy

In the course of growth and expansion, large companies typically diversify their products and services to
reach a greater number of consumers. Most likely, they have a core market where they are particularly
dominant, but aren't known for exceptional products in every category. While companies may earn some
profit in peripheral markets, they do not dominate them, making them ripe targets for flanking attacks.

1. Define the target population is main and necessary step in choosing your marketing strategy. It gives
the proper demographics which help in selecting the most appropriate marketing plan for your business.
2. Test your audience Create a hypothetical process of buying to test your audience. Once you know the
buying behavior of your target audience, you can select more appropriate marketing strategy.
3. Consider marketing strategies Once you know the demographics; their knowledge, attitudes and
behaviors. You can select more appropriate marketing strategy.
4. Evaluate those strategies Once you have considered the marketing strategies and found the applicable
ones. Asses them, apply them and evaluate them. This process must be for testing purposes and the
most suitable and productive strategy must be applied.
5. Paid advertising This includes multiple approaches for marketing. It includes traditional approaches like
TVCs and print media advertising. Also, one of the most well-known marketing approach is internet
marketing. It includes various methods like PPC (Pay per click) and paid advertising.
6. Cause marketing Cause marketing links the services and products of a company to a social cause or issue.
It is also well known as cause related marketing.
7. Relationship marketing This type of marketing is basically focused on customer building. Enhancing
existing relationships with customers and improving customer loyalty.
8. Undercover marketing This type of marketing strategy focuses on marketing the product while
customers remain unaware of the marketing strategy. It is also known as stealth marketing.

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9. Word of mouth It totally relies on what impression you leave on people. It is traditionally the most
important type of marketing strategy. Being heard is important in business world. When you give quality
services to customers, it is likely that they’d promote you.
10. Internet marketing It is also known as cloud marketing. It usually happens over the internet. All the
marketing items are shared on the internet and promoted on various platforms via multiple approaches.

Q7) Guerrilla Attack/ Warfare

Definition: A Guerrilla warfare is the marketing strategy adopted by the challenger firm intended to launch
the intermittent attacks with an intention to harass or demoralize the competitor. This strategy is more a
preparation for the war than an actual war.

A guerrilla warfare can be expensive, but however, is less than the frontal, flank and encirclement attack.
Following are some of the strategies that firms adopt to win over the competitor:

1. Make use of publicity, get the media to talk about your firm. Publicity is more powerful than the
advertising because, in the latter media form, it is well known that the message is very well under
the control of a firm but however, in a case of publicity the information flows freely without any
control.
2. Social Networking Sites, another way of getting a firm recognized is through an account on the social
sites such as facebook, twitter wherein the number of likes and follow ups can be ascertained.
3. Freebies, i.e. giving away the products in the form of free samples to the customers. This is done to
spread the name of the company and to make the customer try the product at least once.
4. Hard as well as cash, the company offers its products against the hard money, i.e. credit cards or
debit cards along with the cash money. This gives the customer flexibility to make the payment in
any form.

Generally, the companies used both the conventional and unconventional means to attack the opponent
but provided it does not cross the lines of legality or morality. Severe price cuts, intense promotional blitzes,
occasional legal action, are some of the ways to supersede the counterpart.

Q8) Market Nicher strategy

Niche marketing is an advertising strategy that focuses on a unique target market. Instead of marketing to
everyone who could benefit from a product or service, this strategy focuses exclusively on one group—a
niche market—or demographic of potential customers who would most benefit from the offerings.

1. Know Target Niche Market Inside Out Just because your product or service only appeals to a narrow
range of people doesn’t mean you can be lazy when it comes to researching your target market. In fact,
running a business offering a product with limited or niche appeal can make it even more difficult to
figure out who your ideal customer actually is.
2. Solve Customers’ Problems In addition to knowing everything there is to know about your niche market,
it’s also vital to know how your product or service will fulfill a need not currently being met by another
company in your industry. What makes your business so special? What’s your unique selling proposition?
How are you taking care of your customers?

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3. Spread Business Niche marketing isn’t like “regular” marketing, only smaller – it requires an entirely new
approach to how you spread the word about what you’re offering. It’s crucial that you assess the
strengths of any marketing channel in relation to your business.
4. Keep Tabs on Niche Marketing Competitors For businesses in niche markets, it’s vital to know what your
competitors are up to. Fortunately, you don’t need to resort to corporate espionage to get the dirt on
what’s working for other companies in your niche. In fact, you don’t even need to leave your office.
5. Be Open to New Opportunities Just because you’re in a niche market doesn’t mean you can’t think about
expansion or ways to improve what you’re offering. It’s crucial that you do what you do well, but don’t
discount the possibilities of opening up your product line or serving new target markets.
6. Listen to Customers – REALLY Listen If you’re not using social media as a niche marketer, start. Right
now. Social media is simply unbeatable for instantaneous feedback on your product or service and how
well you’re doing at keeping your customers happy. If a customer has a problem, do everything in your
power to solve it as quickly as possible. It’s hard to understate how important this is – just because your
operation may be small or you’re marketing a niche product doesn’t mean you can slack off when it
comes to taking care of your customer base.

Q9) Advertising decision in international Marketing

1. Definition of International Advertising entails dissemination of a commercial message to target audiences

in more than one country. Target audiences differ from country to country in terms of how they perceive or
interpret symbols or stimuli, respond to humor or emotional appeals, as well as in levels of literacy and
languages spoken. How the advertising function is organized also varies. In some cases, multinational firms
centralize advertising decisions and budgets and use the same or a limited number of agencies worldwide.
In other cases, budgets are decentralized and placed in the hands of local subsidiaries, resulting in greater
use of local advertising agencies.

2. International Advertising as a Communication Process In international markets the process of

communicating to a target audience is more complex because communication takes place across multiple
contexts, which differ in terms of language, literacy, and other cultural factors. In addition, media differ in
their effectiveness in carrying different appeals. A message may, therefore, not get through to the audience
because of people's inability to understand it (due to literacy problems), because they misinterpret the
message by attaching different meanings to the words or symbols used, or because they do not respond to
the message due to a lack of income to purchase the advertised product. Media limitations also play a role
in the failure of a communication to reach its intended audience.

3. International Advertising as a Business Practice International advertising can also be viewed as a business
activity through which a firm attempts to inform target audiences in multiple countries about itself and its
product or service offerings. In some cases the advertising message relates to the firm and its activities, i.e.
its corporate image. In other cases, the message relates to a specific product or service marketed by the
firm. In either case, the firm will use the services of an advertising agency to determine the appropriate
message, advertising copy and make the media placement.

4. International Advertising as an Industry The world advertising industry is characterized by a large number
of small and medium sized advertising agencies that operate primarily in one country and by a small number
of very large advertising agencies with operations in many countries. These agencies have developed
extensive networks of offices throughout the world in order to coordinate the advertising process in all the
countries where their clients do business. These networks often include both wholly-owned subsidiaries and
formal relationships with local advertising agencies to establish a presence in new markets, particularly in
emerging markets

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5. International Advertising as a Social Force In the view of the advertiser the primary objective of
advertising is to sell products or services. In achieving this primary goal, there are often profound secondary
consequences. Advertising exerts a formative influence whose character is both persuasive and pervasive.
Through the selective reinforcement of certain social roles, language and values, it acts as an important force
fashioning the cognitions and attitudes that underlie behavior not only in the market place, but also in all
aspects of life. In an international setting, advertising has an important social influence in a number of ways.
First, much international advertising is designed to promote and introduce new products from one society
into another. Often this results in radical change in life-styles, behavior patterns of a society, stimulating for
example the adoption of fast food, casual attire or hygiene and beauty products. International advertising
also encourages desire for products from other countries, it creates expectations about " the good life", and
establishes new models of consumption. Advertising is thus a potent force for change, while selectively
reinforcing certain values, life-styles and role models.

Q10) Zero customer defection

The real quality revolution is just now coming to services. In recent years, despite their good intentions, few
service company executives have been able to follow through on their commitment to satisfy customers.
But service companies are beginning to understand what their manufacturing counterparts learned in the
1980s—that quality doesn’t improve unless you measure it. When manufacturers began to unravel the costs
and implications of scrap heaps, rework

1.The Cost of Losing a Customer If companies knew how much it really costs to lose a customer, they would
be able to make accurate evaluations of investments designed to retain customers. Unfortunately, today’s
accounting systems do not capture the value of a loyal customer. Most systems focus on current period costs
and revenues and ignore expected cash flows over a customer’s life-time. Served correctly, customers
generate increasingly more profits each year they stay with a company. Across a wide range of businesses,
the pattern is the same: the longer a company keeps a customer

2.Defections Management Although service companies probably can’t—and shouldn’t try to—eliminate all
defections, they can and must reduce them. But even to approach zero defections, companies must pursue
that goal in a coordinated way. The organization should be prepared to spot customers who leave and then
to analyze and act on the information they provide.

3.The Zero Defections Culture Many business leaders have been frustrated by their inability to follow
through on their public commitment to service quality. Since defection rates are measurable, they are
manageable. Managers can establish meaningful targets and monitor progress. But like any important
change, managing for zero defections must have supporters at all organizational levels. Management must
develop that support by training the work force and using defections as a primary performance measure.

4.On Time Delivery shows the ability of the organization to meet customer expectations with respect to the
time it takes to satisfy a specific order or service request. Customers require dependable on-time delivery
from their suppliers, and both early and late deliveries can be disruptive for the supply chain. Diva-Portal’s
survey on delivery performance and customer satisfaction found that 97% of customers felt that on-time
delivery was important or very important to their overall satisfaction.

5.Responsiveness is defined as all activities directly involved with completing and providing visibility of a
specific customer order or service. Effective customer responsiveness is achieved through completion of
customer requested tasks such as quoting, change orders, and production status updates. Creating a team
which tends to a customer’s needs and addresses all inquiries in a timely manner is your best bet in
maximizing responsiveness.

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6.Teach Employees the Value of Customers Customer service in most industries is underrated. It’s not
simply a matter of ensuring that a customer likes your company or products. A single lost customer can
represent thousands of dollars in long term lost revenue. As the authors note, every lost regular customer
for Domino’s Pizza is an average loss of almost $5,000. Knowing these statistics can show employees why
their customer service is so important

7.Collect Information/Data on Current Customers Information is one of your greatest weapons in creating
a zero defection culture. By collecting as much data as possible on your customers, you can spot trends,
analyze buying habits, and even track when a customer appears to be moving on. Many industries, especially
grocery stories, already use things like membership cards to track these habits so they can target their
customers better.

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