A report on how companies are planning their strategy for better marketingPresentation Transcript
Submitted by,Printu AlexS2 MBA , AvishkarMACFAST
A marketing strategy is a broad plan for actionthat shows how a firm deploys its strength to meetthe challenges and demands of a target market.Components or stages of marketing strategy are thefollowing
At this stage to carry out some structured analysisusing a framework such as Michael Porters FiveForces of Competition or SWOT analysis.
Having decided which markets to compete in, the question of howto compete can be addressed. Should the focus be on growing theoverall size of the market, or on taking a bigger share of an existingmarket (penetration)? In order to do this, should we be concentrating ongetting existing customers to use more of our product, or on finding newcustomers or even new segments? Or can we only increase share bytaking customers from our competitors? The answers to these questions will depend largely on what stage hasbeen reached in the life cycle of the market for this product. This in turnwill determine whether the market is fairly homogeneous or divided intosegments or sub-segments. The more mature the market, the morefragmented it tends to be.
The first step in defining customer targets will be to understandthe structure of the market in terms of what segments exist andwhat alternative ways of segmenting the market might bepossible. It is important to remember in this context thatsegmentation is a characteristic of the market, notsomething which marketeers impose upon it. Once we have a clear view of market structure, we need todecide which segment or segments to target. Certain elements will tend to make a segmentattractive: size. growth. profitability. fit with company strengths. relative weakness of competition.
In practice, it is clear that the analysis ofcompetitors and the selection of customer targetswill go hand in hand, since the one will exert astrong influence on the other. The decisions to betaken at this stage will relate to competitivepositioning and competitive strategy.
Differential advantage, or competitiveadvantage, describes the ways in which oneorganisations offering is different from and betterthan anothers. This gives the company anadvantage over its competition. Differentialadvantage may come from a variety of sources :superior position, superior skills or superiorresources.
The "marketing mix" refers to the various elementsof a companys offering in the market place: theproduct or service itself, including its packaging;the price, including any discounts or paymentterms; the place, or distribution method; and thepromotional mix by which the offering iscommunicated to the market place.
The implementation of marketing strategydemands good communication between themarketing function and the other parts of theorganisation.
Ideally a marketing plan should also includeperformance targets in terms of sales andcontribution, customer satisfaction, or any othermeasures deemed appropriate.
In india several companies have adopted thebrand-extension strategy for widening theirproduct range The brand extension is one in which successfulbrand names are used for promoting additionalproducts , old or new and has been adopted byseveral companies.
Colgate tooth paste to colgate tooth brush Amul-butter,chocolates,cheese spread, milkpowder and later ice cream Hindustan unilever –lux soap, to lux super-richshampoo
Economy and cost reduction Protection of the existing brand name Strengthening the value of the brand Generation of enhanced revenue Opportunity to pursue a high growth strategy