Group-5

MARKETING STRATEGY AN OVERVIEW

A strategy is a plan of action designed to achieve certain defined objectives.In Buisness firm, Objective

May be stated in such terms as sales volume,rate of growth profit percentage market share and return
on investment and among others.The importance of defining objective to give purpose and direction to
the strategies can not be overestimated.How can we formulate strategies in any domain unless we know
what we are trying to accomplish.

Strategies are developed at multiple level in the organization corporate divisional business unit and

Departmental.taken together they form an integrated plan for enterprise as a whole.Thus corporate

Strategies are sum of business unit strategies plus any plan for new business initiative.

Element of Marketing Strategies

A business strategy is composed of several interrelated elements. The first and most important is
product/market selection.What market will we serve with what product lines.The second critical

Element is price. Another is distribution system the wholesale and retail channels through which

Our product and service move to ultimate users.

Product/Market selection

The most important choice made by an organization wheather a business school hospital or government

Agency is deciding what market it will serve with what products. Product or market selection .decission

Commits the firm to particular customer group, specific field of technology and certain competitive
milieu.

Market Segmentation.

Market can be delineated in terms of segments. A market segments is set of potential customer alike in
the way the perceive and value of the product in their buying behavior and the way they use the
product.Defining relevant market segment is the first step in product or market selection.It creates a
framework for developing market strategies.Market may be segmented slong several dimentions.
Product/Market selection criteria.

In making product /market choices a number of factors must be considered.

Product Value

First and most important market entry and development efforts must focus on those segments
that value the product most highly.

Long Run growth potential

Ultimately market size and profit potential is key.Growth potential estimate should factor in
any follow on market oppourtunaties as well as the one at hand .

Resources Commitment.:

Product/Market choices often commit firms to heavy financial drains not only in marketing cost

But also in production facilities. And R&D.Can the resources be made available to compete in
some high potential market and does the estimate return on asset justify the investment.

ART OF PRICING

Basically,Prices of products and services are determined by interplay of five factors

1. Supply/demand conditions
2. The firm’s Production and overhead cost
3. Competition
4. Buyer Bargaining power
5. Product value of potential customer

Channels of Distribution

Distribution systems include the firm’s personal salesforce with wholesale distribution and
retail outlets providing geographically structured market coverage.

Element in Distribution System

The primary components of any distribution system would include direct sales reps sales agent
distributors and Retail dealer. Direct sales reps are employees of the firm and call directly on its
customer.They are particularly economical and effective in serving accounts that buy in large
quantities and need extensive product service and technical support and product
customization.sales agent are independent operators who generally carry lines of several
supplier.