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MM Unit2

The document discusses marketing strategy and its key elements. It covers the formulation of marketing strategy, including market segmentation, target selection, and positioning. It also discusses the differences between industrial marketing and consumer marketing, and provides examples of strategies for each.

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amarnath das
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27 views35 pages

MM Unit2

The document discusses marketing strategy and its key elements. It covers the formulation of marketing strategy, including market segmentation, target selection, and positioning. It also discusses the differences between industrial marketing and consumer marketing, and provides examples of strategies for each.

Uploaded by

amarnath das
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Unit 2 MARKETING

STRATEGY AND
ANALYSIS
Introduction

The marketing strategy of an organization can be


referred to as a comprehensively plan which is
Particularly designed for accomplishing the marketing
goals of the organization.

Marketing strategy is the basic approach that the


business unit will use to attain it's goals and which
comprises of elaborate decisions on largest Markets,
market positioning and mix and marketing expenditure
allocation.
Definitions

According to Cundiff, still and Govoni, “A company’s


overall marketing strategy is its competitive posture in
the market place. Formulating an overall marketing
strategy requires integration of all dimensions of the
marketing effort”.
Elements of Marketing Strategy

Marketing strategy aids in developing effective methods


to reach customers and boost their future loyalty to the
company, brand or product/Service. The marketing plan
aims at utilising the best opportunities by focusing on
firm’s strengths so as to tackle the market competition and
increase Sales.
The following are the elements of marketing strategies:

1. Real customer
2. Establish marketing goals
3. Differentiating factors
4. Clear target
5. Strong message
6. Brand identity
Market Strategy Formulation

There are 4 key steps involved in the formulation of


Marketing strategy:
1. Segmenting the market
2. Selecting the target Market
3. Positioning the offer
4. Assembling the Marketing Mix
Key drivers of Marketing Strategies

1. Competition
2. Political trends
3. Technological advancements
4. Economic growth and stability
5. Legal and regulatory issues
6. Socio-cultural trends
Essentials of Marketing Strategy

1. Consistent
2. Workable
3. Suitable
4. Non-risky
5. Resource based
6. Time Horizon
INDUSTRIAL MARKETING &
CONSUMER MARKETING
Industrial Marketing

Industrial marketing, also known as business-to-business


(B2B) marketing, involves selling goods and services from
one business to another.

It often involves longer sales cycles, complex decision-


making processes, and building strong relationships with
clients.
Key strategies include understanding the specific needs of
industrial customers, providing technical support and
solutions, and utilizing various channels such as trade
shows, digital marketing, and direct sales efforts to reach
target industries.
Characteristics of Industrial Marketing

The characteristics of industrial Marketing are as follows:


1. Demand
2. Market
3. Product
4. Price
5. Place or Distribution
6. Promotion
7. Behavior
Consumer Marketing

Consumer marketing, also known as business-to-


consumer (B2C) marketing, focuses on selling products or
services directly to individual consumers.
It involves understanding consumer behavior,
preferences, and motivations to create effective marketing
campaigns.
Key strategies include market research, branding,
advertising, social media engagement, pricing strategies,
and creating positive customer experiences to drive sales
and build brand loyalty. Consumer marketing often
involves reaching a broad audience through various
channels such as television, print media, digital
advertising, and experiential marketing.
Characteristics of Consumer Marketing

1. Product planning
2. Market research
3. Environmental Analysis
4. Personal contact to customers
5. Customers Satisfaction focusing
Strategies for Industrial marketing

● Segmenting and Targeting


● Managing Buyer Relationship such as buyer
evaluation,Communication process, relationship values etc..
● Marketing intelligence like customers, Competitors and
market
● Negotiating a deal such as a sale can be closed by a
salesperson when the buyer accepts the sales proposition
made by the salesperson like the queries including delivery
schedule, prompt delivery, penalty for late delivery, price
discount, price protection on repeat purchases, settlement of
disputes(if any)
● Tendering(Railways)
Strategies for Consumer Marketing

● Marketing product or service


● Identifying Appropriate pricing
● Create place strategy
● Develop promotion strategy like advertising,public
relations,events,direct marketing,internet
marketing,word-of-mouth,extraordinary, Relationship
marketing
Porter’s Five Force Model/
Industry Analysis/
Competitor Analysis
 Michael Porter’s “Five Forces of Competition” framework
describes how the structural features of an industry
influence the distribution of value created by firms within
that industry.
 Michael Porter developed his Five Forces concept from
basic ideas in the field of industrial economics. In this set
of lectures, we will see how these economic forces operate.
Forces Driving Industry Competition
SUPPLIER
S
4. Bargaining power
of suppliers
3. Threat of
new entrants MARKET
COMPETITORS
POTENTIAL
SUBSTITUTES
ENTRANTS
2. Rivalry among
5. Threat of substitute
existing firms
products or services

1. Bargaining power
of customers

BUYERS
Competitive Rivalry
Competitive Rivalry
• One of the most important
• Increase in pressure, time and cost!

• Factors
• Number of Competitors
• Market Size
• Product differentiation
• Power of buyers
• Capacity utilisation
• Cost structure
• Exit barriers
• Benefits
• Differentiation
• Research and Development
• Lowers prices
• Economic growth
The threat of entry
The threat of entry
• Involves organisations entering into an industry whereby
they will gain market share and competition will intensify

• Six barriers to entry


• Economies of scale
• Product differentiation – Loyalty (Shugan, 2005)
• Capital Requirements
• Cost disadvantages
• Raw materials
• Favorable locations
• Government subsidies
• Distribution channels (Grimm, 2006)
Buying power
Buying power
• Customers who collectively become a powerful group
• Exert pressure
• Drive down prices
• Increase the quality of good
Buying power

• Determinants
• Bought in large values of quantity
• Product or service is standard or undifferentiated
• Buyer is large and supplier is small
• Threats of vertical integration
• Increases pressure to meet demands
Supplier power
Supplier power
• The suppliers have power to sell their products at higher
prices.
• Example: Fast Food Restaurants
Supplier power
• The fundamental bases of supplier power over buyers (Cox,
2001)
Threat of substitutes
• “A substitute performs the same or a similar function as an
industry’s product by a different function . . . [and] limit an
industry’s profit potential by placing a ceiling on prices”
(Porter, 2008: 84).

• Extent depends on:


• Switching costs
• Product price
• Product quality

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