Report on Strategic Marketing Chapter Review [Elegant (VI)]


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The report is made on the chapter reviews from the strategic marketing book 9th Edition by David W. Cravens & Nigel F. Piercy. 12 chapters are taken for making reviews for the report.
It is prep[ared by Elegant (VI) group, Section: A, Marketing 14th batch, Faculty of Business Studies, University of Dhaka.

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Report on Strategic Marketing Chapter Review [Elegant (VI)]

  1. 1. ReportOnChapter Reviews of Strategic Marketing(Based on the Study of Strategic Marketing)
  2. 2. ReportOnStrategic Marketing (Course: 512)Topic: Chapter Reviews of Strategic MarketingPrepared for:Dr. Abu Naser Ahmed IshtiaqueAssociate ProfessorDepartment of MarketingFaculty of Business of StudiesUniversity of DhakaPrepared by:“Elegant (VI)”Section: ADepartment of Marketing (14th)Faculty of Business StudiesUniversity of DhakaDate of Submission: 13th October, 2012 eng.
  3. 3. Group Profile:“Elegant (VI)”No. Name Roll Designation E-mail Address1 Md. Abdur Rakib 041 Member rakibrashed@gmail.com2 Rumana 087 Member jaf.khan98@yahoo.com3 Md. Al Amin 089 Member duamin_mkt@yahoo.com4 Anjuman Ara 139 Member anjuman8964@yahoo.com5 Md. Moben Ahmed 151 Member ms.du.mkt@gmail.com6 Chowdhury Omor Faruque 173 Leader
  4. 4. Letter of Transmittal:13thOctober, 2012Dr. Abu Naser Ahmed IshtiaqueAssociate ProfessorDepartment of MarketingUniversity of DhakaDear Sir,Here is the report on the topic of Chapter Reviews of Strategic Marketing and the outlines of it(Based on the Study of Strategic Marketing) that you asked us to conduct.Our study of analyzing as well as learning each & every chapter contents, illustrations, idea, corevalues of topic will help us know about strategic marketing deeply.We appreciate your choosing this report on chapter reviews. If you need any additionalinformation or assistance in the overview of our report, please ask us.Sincerely Yours,“Elegant (VI)”Section: ADepartment of Marketing (14th)Faculty of Business StudiesUniversity of Dhaka
  5. 5. Table of Contents:No. Particulars Page No.1 Executive Summary v2 Chapter 1: Imperatives for Market-Driven Strategy 1-33 Chapter 2: Markets & Competitive Space 4-84 Chapter 3: Markets and Competitive Space 9-115 Chapter 4: Strategic Customer Relationship Management 12-156 Chapter 5: Capabilities for Learning about Customers and Markets 16-197 Chapter 6: Market Targeting and Strategic Positioning 20-228 Chapter 7: Strategic Relationships 23-269 Chapter 8: Innovation & New Product Strategy 27-2910 Chapter 9: Strategic Brand Management 30-3211 Chapter 11: Pricing Strategy 33-3712 Chapter 12: Promotion, Advertising, and Sales Promotion Strategies 38-4213 Chapter 13: Sales Force, Internet, and Direct Marketing Strategies 43-4614 References 47
  6. 6. Executive Summary:The report is made on the chapter reviews from the strategic marketing book 9thEdition byDavid W. Cravens & Nigel F. Piercy. 12 chapters are taken for making reviews for the report.Strategic marketing in companies around the world is confronted with unprecedented challengesand exciting opportunities in the 21stcentury. Driven by demanding customers with complexvalue requirements, aggressive global competition, turbulent markets, rapid emergence ofdisruptive new technologies and global expansion initiatives, marketing strategy has become anenterprise-spanning responsibility with major bottom-line implications. Central to theopportunities generated by these challenges is a critical need to improve executives’understanding of markets and competitive spaces, customer value delivery, innovation culture,and processes, and effective organizational design.However, reviewing chapters will enrich the knowledge about strategic marketing; markets,segments, and customer value; designing market-driven strategies & market-driven programdevelopment.
  7. 7. Chapter 1Imperatives for Market-Driven StrategyMarket-Driven Strategy:All business strategy decisions should start with a clear understanding of markets, customers,and competitors.The market and the customers that form the market should be the starting point in shapingbusiness strategy.Characteristics of a Market-Driven Strategy:1. Becoming Market-Orientation2. Determining Distinctive Capabilities3. Customer Value/Capabilities Match4. Achieving Superior PerformanceCharacteristics of Market Orientation: Customer Focus: What are the customer’s value requirements? Competition Intelligence: Importance of understanding the competition as well as thecustomer Cross-Functional Coordination: Remove the walls between business functions Performance Consequences: Market orientation leads to superior organizationalperformancesBecoming a Market-Oriented Organization: Information Acquisition Cross-Functional Analysis of Information
  8. 8.  Shared Diagnosis and Coordinated Action Delivery of Superior Customer ValueMarket Orientation:1. Information Acquisition Gather relevant information on customers, competition, and markets Involve all business functions Intuit’s Quicken2. Inter-functional Assessment: Share information and develop innovative products with peoplefrom different functions3. Shared diagnosis and action4. Deliver superior customer valueMarket –Driven Strategies:Distinctive Capabilities:“Capabilities are complex bundles of skills and accumulated knowledge, exercised throughorganizational processes that enable firms to coordinate activities and make use of their assets.”Market Driven Initiatives: Market Sensing Capabilities Effective processes for learning about markets Sensing: Collected information needs to be shared across functions and interpreted todetermine proper actions. Customer Linking Capabilities: Create and maintain close customer relationships
  9. 9. Market-Driven Strategy Process:Markets,SegmentsAnd ValueDesigningMarket-DrivenStrategiesMarket-DrivenProgramDevelopmentImplementingand ManagingMarket-DrivenStrategy
  10. 10. Chapter 2Markets & Competitive SpaceCorporate, Business and Marketing StrategyCorporate Strategy: Deciding the Scope and Purpose of the Business Business Objectives Actions and Resources for Achieving Objectives
  11. 11. Organizational Change:Corporate Strategy Components: Management’s long-term vision for the corporation Objectives Assets, skills, and capabilities Businesses in which the corporation competes Structure, systems, and processes Creation of valueBusiness and Marketing Strategy: Developing the strategic plan for each business Business and marketing strategy relationshipsVerticalDisaggregationInternalRedesignNewOrganizationalForms
  12. 12. Strategic Marketing:Developing a vision about the markets of interest to the organization, select market targetstrategies, setting objectives, and developing, implementing and managing the marketingprogram positioning strategies designed to meet the value requirements of customers in eachmarket targetMarketing Strategy Process:1. Situation Analysis2. Designing Marketing Strategy3. Marketing Program Development4. Implementing and Managing Marketing StrategyMarketing Plan Outline:I. Strategic Situation SummarySummarize the key points from your situation analysis (market analysis, segments,industry/competition) in order to recount the major events and provide information to betterunderstand the strategies outlined in the marketing plan.II. Market-Targets and ObjectivesThe market target may be defined demographically (key characteristics only),geographically, or in social/economic terms. Each market target should have needs and wantsthat differ to some degree from other targets. These differences may be with respect to typesof products purchased, use situation, frequency of purchase, and other variations that indicatea need to alter the positioning strategy to fit the needs and wants of each target.An objective is a quantified goal identifying what is expected when. It specifies the endresults expected. The objectives should be written for each target market. Objectives shouldalso be included for the following program components:
  13. 13. 1. Product,2. Price3. Distribution4. Promotion (salesforce, advertising, sales promotion, and public relations), and5. Technical services.III. Positioning StatementsWrite statements that describe how you want each market target to perceive each productrelative to competition. State the core concept used to position the product (brand) in theeyes and mind of the targeted buyer. The positioning statement should describe: (1) Whatcriteria or benefits the customer considers when buying a product along with the level ofimportance, (2) What we offer that differentiates our product from competition, and (3) Thelimitations of competitive productsIV. Market Mix Strategy for Each Market TargetA. Product StrategyIdentify how each product fits the market target. Other issues that may be addressed wouldbe new product suggestions, adjustments in the mix of existing products, and productdeletion candidates.B. Price StrategyThe overall pricing strategy (I.e., competitive, premium-priced etc.) should be identifiedalong with a cost/benefit analysis if applicable. Identify what role you want price to play,i.e., increase share, maintenance, etc.C. Distribution StrategyDescribe specific distribution strategies for each market target. Issues to be addressed areintensity of distribution (market coverage), how distribution will be accomplished, and
  14. 14. assistance provided to distributors. The role of the sales force in distribution strategy shouldalso be considered.D. Promotion StrategyPromotion strategy is used to initiate and maintain a flow of communication between thecompany and the market target. To assist in developing the communications program, theattributes or benefits of our product should be identified for each market target. How ourproduct differs from competition (competitive advantage) should be listed. The sales force’sresponsibilities in fulfilling the market plan must be integrated into the promotion strategy.Strategies should be listed for(1) Personal selling, (2) Advertising, (3) Sales promotion, and (4) Public relationsE. Marketing ResearchDescribe the market research problem and the kind of information needed. Include astatement which addresses why this information is needed. The specific marketresearch strategies can be written once the above two steps have been followed.V. Coordination with Other Business FunctionsIndicate other departments/functions that have responsibilities for implementing themarketing plan.VI. Sales Forecasts and BudgetsVII. Contingency PlansIndicate how your plans should be modified if events should occur that are different fromthose assumed in the plan.
  15. 15. Chapter 3Markets and Competitive SpaceMarkets and Strategies Markets and Strategies are Interlinked Value Migration Challenges Forming a Shared VisionValue Migrations: Customers shift purchasing to new business designs with enhanced value offering Beware of disruptive technologies Market sensing and organizational learning are essentialMatching Needs with Product Benefits:A product – market matches people with needs to the product benefits that satisfy those needs.“A product – market is the set of products judged to be substitutes within those usage situationsin which similar patterns of benefits are sought by groups of customers.”* Product – Market Boundaries and Structure Determining Product-Market StructureThree Characteristics of Markets:1. Functions or uses of the product2. The enabling technology of the product3. Customer segments in the product-market
  16. 16. Defining and Analyzing Markets:Identifying and Describing End-Users: Illustrative buyer characteristics in consumer markets: Family size, age, income,geographical location, sex, and occupation Illustrative factors in organizational markets: Type of industry Company size Location Type of productsBuying Decision Process: Problem recognition Information search Alternative evaluation Purchase decision Post-purchase behaviorEnvironmental Influences: External factors influencing buyers’ needs and wants: Government, social change, economic shifts, technology etc. These factors are often non-controllable but can have a major impact on purchasingdecisions
  17. 17. Building Customer Profiles: Start with generic product – market Move next to product- type and variant profiles >>increasingly more specific Customer profiles guide decision making (e.g. targeting, positioning, marketsegmentation etc.)Key Competitor Analysis: Business scope and objectives Management experience, capabilities, and weaknesses Market position and trends Market target(s) and customer base Marketing program positioning strategy Financial, technical, and operating capabilities Key competitive advantages (e.g., access to resources, patents)Developing a Strategic Vision about the Future: Industry Boundaries Blurring and Evolving Competitive Structure and Players Changing Value Migration Paths Product Versus Business Design Competition Firms are Collaborating to Influence Industry Standards
  18. 18. Chapter 4Strategic Customer Relationship ManagementCRM-Customer Relationship ManagementCRM is a cross-functional core business process concerned with achieving improved shareholdervalue through the development of effective relationships with key customers and customersegments.Customer Lifetime ValueCustomer lifetime value (CLV) calculates past profit produced by the customer for the firm – thesum of all the margins of all the products purchased over time, less the cost of reaching thatcustomerThe Steps in Developing a CRM Strategy:Gain enterprisecommitment•Everyone in the firm needs to be supportive of the CRMinitiative beginning with top management.Build a CRMproject team•The cross-functional team is the centre of the decisionanalysis & action for the CRM process.Business needsanalysis•Each company requirements concerning customerrelationships need to be examined.Define the CRMstrategy•There are 5 components of CRM strategy that indicateshow different customer segments can be formed &managed.
  19. 19. Component of CRM Strategy:Implementation Dangers: Implementing Without Developing a Customer Strategy Failing to Initiate Necessary Organizational Change Allowing Technology to Dominate the CRM Process Focusing on the Wrong CustomersCRMSTRATEGYEnterpriseTransformationPlanOtherStakeholdersValuePropositionBusinessCaseCustomerStrategy
  20. 20. Value Creation Process:CRM and Value Chain Strategy:The Perfect Customer Experience:The perfect customer experience which must be affordable for the company in the context of thesegments in which it operates and its competition is a relatively new concept. This concept isnow being embraced in industry by companies such as TNT, Toyota’s Lexus, Oce, and GuinnessBreweries, but it has yet to receive much attention in the academic literature. Therefore, multi-channel integration is a critical process in CRM because it represents the point of co-creation ofcustomer value. However, a company’s ability to execute multi-channel integration successfullyis heavily dependent on the organization’s ability to gather and deploy customer information,from all channels and to integrate it with other relevant information.”The ValueExchangeValueReceived bytheOrganizationSuccessfulValueExchangeValueReceived bytheCustomer
  21. 21. CRM and Strategic Marketing:From the perspective of strategic marketing, there are several reasons why CRM is important andwhy there should be extensive marketing involvement in decisions about CRM. Importantly, anorganizational perspective is needed in guiding the CRM strategy.CRMSTRATEGICMARKETING
  22. 22. Chapter 5Capabilities for Learning about Customers and MarketsMarket Orientation and Organizational Learning: Market orientation perspective includes all relevant sources of knowledge and ideas Characteristics of the learning organization Learning and competitive advantageLearning about Markets:Open-mindedinquirySynergisticinformationdistributionMutuallyinformedinterpretationsKeeping andgaining accessto priorlearning
  23. 23. Types of Marketing Information: Marketing research studies Standardized information services Management information systems Database systems Decision support systems Customer relationship management (CRM) systems Competitor intelligence systemsStrategies for Obtaining Information:StrategyAlternativesCollect existinginformationInternal DataPublishedinformationUse standardizedresearch servicesSubscriptionSingle purchaseConductresearch studyExploratoryFull-scale
  24. 24. Advantages and Limitations of Questioning Methods:Advantages LimitationsPersonal InterviewsMost versatile and flexibleLong questionnaires handled more easilyPresence of interviewer allows moreflexibility in procedureMore enjoyable for respondentsFewer refusalsHigh costPossibility of interviewer biasPossibility of cheating by interviewer dueto lack of supervisionProject time often lengthyTelephone InterviewsFewer interviewers neededRelatively inexpensiveRapid method of data collectionCan reach large number of householdsMore control over interviewersMore noncommittal answersSome households overrepresentedLengthy and detailed questions often notFeasibleMail SurveysHigher-quality informationBetter for collecting information onpossibly embarrassing subjectsRelatively cheaper to conductNo interviewer biasQuestionnaire cannot be changedComplexCan be completed by person other thanintendedFollow-up expensiveResponse often slow in coming
  25. 25. Special Research Studies:ProblemDefinitionInformationRequiredResearchMethodSamplingPlanQuestionnaireDesignDataCollectionAnalysis andReport
  26. 26. Chapter 6Market Targeting and Strategic Positioning Market Targeting Strategy Targeting in Different Market Environments Positioning Strategy Developing the Positioning Strategy Determining Positioning EffectivenessMarket Targeting Strategy:Market Targeting and Strategic Positioning Core dimensions of market-driven strategy: deciding which buyer’s to target and how toposition the firm’s products Effective targeting and positioning strategies are essential in gaining and sustainingsuperior performanceTargeting Strategy Single target or a few broad segments Growth Market Buyer DiversityThree Possible Strategies Extensive market coverage by firms with established businesses in related markets Selective targeting by firms with diversified product portfolios Very focused targeting strategies by small organizations serving one or a few marketsegments.
  27. 27. Positioning in Perspective: Objective–Match the organization’s distinctive capabilities with the customer value requirements in eachmarket target (How do we want to be perceived by targeted buyers?) Desired result–Gain a relevant, distinct, and enduring position that is considered important by the targetedbuyers Actions by the organization–Design and implement the positioning strategy (marketing program) for the market target.Developing the Positioning Strategy The positioning concept applies to a specific brand rather than all the competing brands thatcompose a product classification The concept is used to guide positioning decisions over the life of the brand Multiple concepts are likely to confuse buyers and may weaken the effectiveness ofpositioning actionsCustomer and Competitor Research: Research Studies Preference MapsTest Marketing: Generates information about commercial feasibility and marketing program Provides market (sales forecasts) and effectiveness measures
  28. 28. Positioning Models: Incorporates research data into formal models of decision analysisPositioning Errors: Under-positioning – customers have only vague ideas about the company and do notperceive anything distinctive about it Over-positioning – Customers have too narrow an understanding of the company, product, orbrand Confused positioning – Frequent changes and contradictory messages confuse customers Doubtful positioning – claims made for the product or brand are not regarded as credible
  29. 29. Chapter 7Strategic RelationshipsStrategic Relationships: The rationale for inter-organizational relationships Types of organizational relationships Developing effective relationships between organizations Global relationships among organizationsStrategicRelationshipSuppliersCustomersIntermediateCustomersCompetitorsDistributionChannelsInternalPartneringAlliancesJointVentures
  30. 30. Types of Organizational Relationships:Motives Underlying Entry of Firms into Strategic Alliances:Market entry and market position-related motivesProduct-related motivesProduct/market-related motivesMarket structure modification-related motivesMarket entry timing-related motivesResource extension- and risk-reduction related motivesFocalFirmSupplierRelationshipLateralPartnershipCustomerRelationshipInternalPartnership
  31. 31. Drivers of Inter-organizational Relationships:How Strategic Relationships Enhance ValueImproved market vision and learning by pooling the knowledge and experience of thepartnersEnhanced customer value by integrating the partner’s unique competenciesJoint analysis of what is required to create superior customer value for specific marketsegmentsCapitalizing on value migration opportunities that are not feasible for a single organizationReforming organization structure to gain efficiencies and greater adaptability to changeTHERATIONALEValueEnhancingOpportunitiesEnvironmentalTurbulence &DiversityCompetitiveStrategySkill andResourceGaps
  32. 32. Strategic Relationship Issues: The role of strategic relationships in market-driven strategy Moving from hierarchies to process driven structures Fit of relationship strategy with organizational design Marketing and organizational change
  33. 33. Chapter 8Innovation & New Product StrategyPlanning For New Products: Importance of New Products Customer Driven Process Steps in New Product Planning Idea Generation Screening/Evaluating/and Business Analysis Product and Process Development Marketing Strategy and Market Testing Commercialization Variation in the Generic Planning ProcessImportance of New Products: Innovation at top of potential value drivers (Ernst & Young)Innovation initiatives extend beyond new goods and services to include ideas, processes, andbusiness practices Organizations must build a culture of innovationMatching Capabilities to Customer Value Opportunities Fit between capabilities and product offering Transformational Innovations :“new-to-the-world” ideas Customers not always the best guides
  34. 34. Characteristics of Successful Innovations:The Innovation Strategy Spells out Management’s Priorities for New Product Opportunities Coordination of new product activities by a high-level general manager Inter-functional coordination by a team of new product planning representatives Creation of a project task force responsible for new product planning Designation of a new products manager to coordinate planning between departments Formation of matrix structure for integration new product planning with businessfunctions Creation of a permanent design centerProduct Development Process: Product Specifications Industrial Design Prototype Use Tests Process Development Collaborative DevelopmentMarketing Strategy and Market Testing Marketing Strategy Decisions Market Targeting Positioning Strategy
  35. 35.  Market Testing Options Simulated Test Marketing Scanner – Based Test Marketing Conventional Test Marketing Testing Industrial Products Selecting Test Sites Length of the Test External InfluencesCommercialization: The Marketing Plan: Complete marketing strategy Responsibilities for execution Cross – functional approach Monitoring and Control Real – time tracking Role of the Internet Include product performance metrics with performance targets
  36. 36. Chapter 9Strategic Brand ManagementA product is anything that is potentially valued by a target market for the benefits or satisfactionit provides, including objects, services, organizations, places, people, and ideasResponsibility for Managing Products: Product/Brand Management: Planning, managing, and coordinating the strategy for aspecific product or brand Product Group/Marketing Management: Product director, group manager, or marketingmanager Product Portfolio Management: Chief executive at SBU Team of top executives Tracking Product PerformanceProduct Life Cycle Analysis:Relevant issues in PLC analysis include: Determining the length and rate of change of the PLC Identifying the current PLC stage and selecting the product strategy that corresponds to thatstage Anticipating threats and finding opportunities for altering and extending the PLC
  37. 37. Product Grid Analysis: Management’s performance criteria Strengths and weaknesses relative to portfolioBrand Positioning Analysis: Perceptual maps for brand comparison Buyer preferencesOther Product Analysis Methods: Information Services Research studies Financial analysisStrategies for Improving Product Performance: Brand-Building Strategies Developing the brand identification strategy Coordinate identity across the organization Brand Revitalization Find new uses for mature brands Add products related to heritage Strategic Brand Vulnerabilities Brand equity can be negative Retailer private brands compete with manufacturer brands Major shifts in consumer tastes
  38. 38.  Competitive actions Unexpected eventsProduct Mix Modifications:Motivation for changing the product mix: Increase the growth rate of the business Offer a more complete range of products to wholesalers and retailers Gain marketing strength and economies in distribution, advertising, and personal selling Leverage an existing brand position Avoid dependence on one product line or category
  39. 39. Chapter 11Pricing StrategyRole of Price in Positioning Strategy:Signal to the BuyerMarketingprogramConsiderationsImproving FinancialPerformanceInstrumentofCompetition
  40. 40. Pricing Strategy for New and Existing Products:Analyzing the Pricing Situation:
  41. 41. Guide to Cost Analysis:Determinants of Pricing Flexibility:
  42. 42. Price Positioning:Competitive Pricing Issues:CompetitivePricingIssuesDiplomacyrather thanforceTargetsegmentsinstead ofvolumeSignalingSelectcompetitiveconfrontations
  43. 43. Illustrative Pricing Strategy:Establishing Pricing Policy and Structure: Policy Discounts, allowances, returns, and other operating guidelines Pricing Structure Product mix and line pricing relationships How individual items in the line are priced in relation to one anotherLow-activestrategyHigh-activestrategyLow-passivestrategyHigh-passivestrategyLow relativepricePassivestrategyHigh relativepriceActivestrategy
  44. 44. Chapter 12Promotion, Advertising, and Sales Promotion StrategiesPromotion Strategy: The Composition of Promotion Strategy Developing a Promotion Strategy Communications Objectives Deciding the Role of the Promotion Components Determining the Promotion Budget Promotion Component Strategies Integrating and Implementing the Promotion Strategy Effectiveness of Promotion StrategyPromotion Strategy:Initiating and maintaining a flow of communications between a company (brand) and its markettargets.
  45. 45. Composition of Promotion Strategy:Developing the Promotion Strategy:PromotionComponentsAdvertisingPersonalSellingSalesPromotionDirectMarketingInteractive/InternetMarketingPublicRelationsMarket Targeting And Positioning StrategiesCommunication ObjectivesRole Of Promotion ComponentsPromotion BudgetPromotion Component StrategiesIntegrate And Implement Promotion Component StrategiesEvaluate Effectiveness Of Promotion Strategy
  46. 46. Budgeting Methods:Advertising Strategy:Objectiveand TaskPercent ofSalesAll YouCanAffordCompetitive parityTargetAudienceAdvertisingObjectivesAdvertisingBudgetCreativeStrategyAdvertisingMedia andProgrammingSchedulesImplementandEvaluateStrategyEffectiveness
  47. 47. Determining Advertising Objectives1. Does the advertising aim at immediate sales?2. Does the advertising aim at near-term sales?3. Does the advertising aim at building a long-range consumer franchise?4. Does the advertising aim at helping increase sales?5. Does the advertising aim at some specific step that leads to a sale?6. How important are supplementary benefits of advertising?7. Should the advertising impart information needed to consummate sales and buildcustomer satisfaction?8. Should advertising build confidence and goodwill for the corporation?9. What kind of images does the company wish to build?Creative Strategy:
  48. 48. Sales Promotion Activities and Targets:Activities include trade shows, specialty advertising, contests, displays, coupons, recognitionprograms, and free samples.ConsumerBuyersIndustrialBuyersChannelMembersSalespeople
  49. 49. Chapter 13Sales Force, Internet, and Direct Marketing StrategiesSales Force Strategy:Determine the role of thesales force in promotionstrategyDefine the selling process(how selling will beaccomplished)Decide if and howalternative sales channelswill be utilizedDesign the salesorganizationRecruit, train, and managesalespeopleEvaluate performance andmake adjustments wherenecessary
  50. 50. Role of Selling in Promotion StrategyEmphasis devotedto personal sellingrelative to otherpromotional toolsThe firms mkt.objectives,Strategy,& resourcesThe targetmarketProductCharacteristicsDistributionpoliciesPricing policiesCommunications tasks tobeaccomplishedthepromotionmixAccountmanagementpoliciesSpecificPersonalSellingActivitiesrequired
  51. 51. Strategy Development:The first step is to determine the role of the internet in the organization’s business and marketingstrategies. The role may involve:Deciding Internet Objectives:The capabilities of the internet fall into two broad categories: A communications medium A direct response mediumThe communications features include: Creating Awareness and Interest Information Dissemination Obtaining Research Information Brand Building Improving Customer ServiceSeparate business modelA value chain channelA marketing communication tool, oradvertising medium
  52. 52. Reasons for Using Direct Marketing:Socio-economicTrendsTimeConstraintsConvenienceLow Access CostsMuch lowercostsEnablesselectivetargetingData BaseManagementFacilitates directmarketinginitiativesValueAn attractivebundle of value
  53. 53. References: Strategic Marketing 9thEdition, David W. Cravens & Nigel F. Piercy Mc Graw-Hill Education