Marketing strategy

The marketing plan is the central instrument for directing and coordinating the marketing effort. •Strategic marketing plan –target markets and value propositions that will be offered based on an analysis for the market opportunities •Tactical marketing plan-market tactics ,including product features ,promotion ,merchandising ,pricing, sales channel, service.

Corporate and division strategic planning
• Define the corporate mission-it must reflect the vision of the company ,its goals ,major policies and values ,various competitive spheres within which it operates-industry, product and applications, competence ,market segment ,vertical which means the number of channel levels from raw material to final product and distribution in which a company will participate., geographical area .

Strategic planning
• Define the business-companies often define business in terms of products ,now it is in terms of customer needs. • A business can be defined in terms of customer groups ,customer needs and technology • Large companies manage different businesses each requiring its own strategy-SBU (strategic business units)

Strategic planning
• 1. 2. Assessing growth opportunitiesIntensive growth-review opportunities –for improving existing products. company considers whether to gain more market share with its current products in their current markets (market penetration). whether it can develop new markets for existing products (market development ), or develop new products for its current markets (product development strategy ) . Company can review opportunities to develop new products for new markets (diversification strategy)

3. 4. 5.

Assessing growth opportunities
• Integrative growth-a business sales and profits can increase through backward ,forward or horizontal integration. Forward-it can acquire its retailers Backward-it can acquire its suppliers Horizontal-it can acquire its competitors

Diversification growth
• When good opportunities can be found outside the present businesses Types of diversifications• Concentric strategy-new products that have technological or marketing synergies with the existing product ,even if they are meant for new customers • Horizontal strategy-new products with new technology ,unrelated to the existing products, for current customers.

Types of diversification
• Conglomerate strategy-new business that have no relationship with the current markets, technology or ,products. DOWN SIZING AND DIVESTING OLDER BUSINESS

• The business mission-aim of the company • SWOT ANALYSIS-external environment (opportunity and threat )analysis, internal environment (strengths and weaknesses) • Goal formulation-goals to describe objectives that are specific with respect to magnitude and time. They should be arranged hierarchically, stated quantitatively ,realistic and consistent.

Strategic formulation
• Strategy is a game plan for achieving its goals. • Porter’s generic strategies-overall cost leadership in terms of production cost etc, differentiation, focus on a particular segment. • Strategic alliances-product or service alliance, promotional alliances, logistics alliances ,pricing collaborations.

Program formulation and implementation
• Plan programmes in order to strengthen its R&D ,train technical sales force ,develop ads to communicate. • In the implementing stage we need to focus on the cost involved, needs of the stakeholders-customers, employees, suppliers ,distributors.

Feedback and control
• The organization must set up efficient mechanism to examine the changing environment and adopt new goals and behaviors. Hence respond to changing environment.

• MARKETING PLAN –summarizes what the marketers has learned about the market place and indicates how it plans to reach its marketing objectives. Contents of marketing planExecutive summary and table of contents Situation analysis-macro environment Marketing strategyFinancial projections Implementation controls

• 1. 2. 3. 4. 5.

BCG matrix ( Boston Consultancy Group)
• BCG matrix: This model is used to identify company’s SBU’s position in the market. This model identifies the SBU’s strength, weaknesses, opportunities and threats on the basis of market growth rate and relative market share. This model is also known as growth share matrix.

BCG Matrix

GE Matrix based on business position and market attractiveness


• Philip Kotler defines MIS as “a system that consists of people, equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision makers

Components of MIS
• • • • Internal Records System 2. Marketing Intelligence System 3. Marketing Research System 4. Analytical Marketing System

Marketing Research Process
• 1.Define the problem and research objectives • 2.Develop the Research Plan and Design Data sources – The researcher has to decide which data sources to use – Secondary Data or Primary Data or both.
• Research Approaches- Observational Research , Focus Group Research,Survey Research , Behavioral Research, Experimental Research

• Research Instruments – There are mainly two types of research instruments: questionnaires and mechanical devices • Sampling Plan – Now the researcher must prepare a sampling plan which outlines who should be surveyed (Sampling Unit), How many should be surveyed (Sample Size) and how should they be selected for the survey (Sampling Procedure).

• Contact Methods – Now the researcher has to decide how the respondent should be contacted.The choices of methods available are mail, telephone, personal interview or online interview.

• Step III – Collect the Information • Step IV-Analyze the information • Step V Present the findings

Sign up to vote on this title
UsefulNot useful