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PROJECT
PRINCIPLES OF
MARKETING
Presented to :- Sir. Zafar Ullah
Saqidui
PRODUCT: ASUS NEXUS 7 2ND GEN
 WE ARE TECHBOTS
 Project Members
I. Adeel Iftikhar.
II. Rahul Rai.
III. Zartasha Asif.
IV. Mahad Rizvi.
V. Sadia Nisar.
VI. Qurat ul Ain Khan.
VII. Qasim Ali Khan
AGENDA OF TODAY’S PRESENTATION
 About Product & its
specifications.
 Marketing Mix.
 Positioning of the
product.
 Competitor Analysis.
 SWOT analysis.
 Product Expansion Grid.
 Segmentation.
 Positioning Map.
 Its Pricing.
 Product Line Pricing.
 Product placement.
 Coalition with other
companies.
 Characteristics affecting
consumer behaviour.
 Competitive strategies.
 Competitive positions.
CLOSE LOOK
PRODUCT FEATURES
 Google Nexus 7 2nd generation
 Operating system 4.3
 Rear Camera 5 MP , front camera
1.2
 Different versions
 Wireless charging and HDMI port
MARKETING MIX
 These are the tools. Which the Marketer’s use to
satisfy their customers.
 Through delivering a particular market offering.
 These include:-
1) Product.
2) Price.
3) Placement.
4) Promotion.
PRODUCT
 2 GB Ram with quad core 1.5 GHz processor.
 7 inch tablet
 Thickness 8.7mm
 Thin ,comfortable and
longer lasting
 More features
PROMOTION
 Nexus 7 2 is promoted via TV ads.
 E-mail in boxing as google has a wide
network of mails.
 Ads on websites.
 Magazine ads.
 To reach its customers as much as possible
so that company can generate revenue from
sales.
PROMOTION
 Advertisement
 Facebook, Twitter and
other social sites
 User choice colors
 Placement
 Different offers
PLACEMENT
o As tabs are popular in 10-35 age group
o We placed it in IT markets
o Advertised it in places visited by our targeted age
group
o As it will be a big brand we sold it only in our
frenchise
PRICE
• Price kept low as compared to
other tabs
• Specs much inferior than price
• Market Penetration Strategy:
• Lot more in Lot less
• Latest features as in expensive
tabs
QASIM ALI
KHAN
PRODUCT PLACEMENT
It is available in :-
International markets
Distributers world wide
Online stores
Retailers
SERVICES PROVIDED BY GOOGLE
 Home delivery
 In future – 10 inch tablet
 Allotting membership cards
 Keyboard stand case
 Sim Card
POSITIONING OF PRODUCT
 The way the product is defined by consumers on
important attributes.
 Price
 Quality
 Service
 The place the product stands in consumer minds
relative to other products.
 Availability of Product
 Brand Personality -> excitement
 Feel difference between their product and
competitor’s product
COMPETITOR ANALYSIS
 Strengths and weaknesses
of the competitors
 Competitors -> current +
potential
e.g Samsung
 Company decreases price,
competitors do same with
additional features.
 Selling of product at particular place
 More specifications, in less price than competitors
 Vast range of competitors
 Better service – home delivery
CUSTOMER PERCEIVED VALUE
 Google placed its high end Tab.
 In the eyes of the customers as the best tab.
 Regarding the price to specifications ratio.
 Company had tried to make its customers delight
by giving affordability as well as features.
 Which have given the company an edge over it
competitors.
1. Amazon Kindle.
2. Apple Ipad.
3. Samsung Galaxy Tabs.
4. Windows Tabs.
5. Sony Xperia Tab.
ABOUT THIS NEXUS 7 2
IN BCG MATRIX
 When this product was launched it was a question
mark for Google.
 This product has gain its value in the eyes of those
customers.
 Who want affordability as well as a high end
gadget.
 This product is now in the age of converting itself
into Star.
 Not Yet but it will be According to Google
RAHUL RAI
SWOT ANALYSIS
STRENGTHS
 Low price / affordable to students
 7inch tablet / portability /can be fitted in pocket
 Some features that makes it unique
 1200 x 1920 pixels & 323 ppi
 2gb RAM
 5MP rear cam
 Can play almost every game
 Wireless charging
 Nexus tag line (google software)
WEAKNESSES
 low sales of the product
 Limited availability
 Non expandable memory (unlike Samsung tab)
 Small screen size
 awkwardly positioned speakers
 Look of the speakers might be not comforting to
many users
 Asus can still do better and come up with more
good products
OPPORTUNITIES
 ASUS might become biggest tablet manufacturer
 Different screen size
 Different colors
 Can introduce tablet specifically for women
 Expandable memory
 Can give option to customers to optimize their
tablets like nexus 5
 Can give another product as an incentive
THREATS
 ASUS new in tablet market
 Apple, Samsung, and Amazon
 Just have 2 tablets
 Is Non Expandable memory a threat to nexus 7?
 Small screen size
 Rather working with google they should have their
own android powered tablet
PRODUCT EXPANSION GRID
MARKET PENETRATION
 Asus is Taiwanese company.
 Their products
 Their market shares increases rapidly after
ultrabooks and tablets
 Nexus 7 1st gen in 2012
 One of the best selling tab of 2012
MARKET DEVELOPMENT
 ASUS built by comp engineering who used to work
for Acer
 Gained popularity in few years
 Became 5th largest computer vendor in 2012
 In the short span of time managed to open many
stores
 Now competing with top selling laptop brands (Hp,
Dell, Lenovo)
PRODUCT DEVELOPMENT
 Nexus 7 in 2012
 Nexus 7 2nd gen in 2013
 High specs with low price as compared to many
other tablets
 Google helped to increase the sales of Nexus 7 due
to their advertisement campaigns
DIVERSIFICATION
 Transformer pads in 2012
 Comes with portable keyboard
 Tablet + laptop
 Nexus 7 in 2012
 Opened stores in different regions around the globe
 Asus Zenbook, slimmest ultrabook
QURAT UL AIN
KHAN
SEGMENTATION:
 Our market segments are:
DEMOGRAPHICALLY SEGMENTED:
 Age:
Goggle Nexus 7 is designed to target
young educated people that lies within 10-35 range.
GEOGRAPHICALLY SEGMENTED
Style and design may vary place
to place, but Nexus 7 fulfills all the
requirement that our customers
needs
PRODUCT AVAILABILITY:
NEXUS 7 will be initially
available in the capital
(Islamabad) of Pakistan
 well educated
 mall, shopping center
and stores
 Later on, we will also
target other
big cities of Pakistan
PSYCHO-GRAPHICALLY
SEGMENTED:
 inspired by the colleagues, family members and
friends
 People like products that suits their social class,
personality and life style
 catch the attraction in any individual with its
extraordinary attributes
BEHAVIOR SEGMENTED:
 experience its specialty and uniqueness as our
objective is to satisfy and value consumer
POSITIONING MAP:
CONT..
 Positioning map compare two attributes of a
particular product with its competitors.
 Price is ranged from 1-5 meaning Poor to Excellent.
 Also with Quality & Performance.
 Price as Variable1.
 Quality & Performance as Variable2.
CONT..
 In case of Nexus 7 2.
 It has rating of 4.5 on Price.
 & also 4.5 on Quality & performance.
 Which means that customers are satisfied with this
product.
 As they compare the Price to Quality &
Performance Ratio. Which is 1.
POSITIONING STATEMENT:
“To modern mobile, laptops, IPod and cloud
users who want to be up-to-date, Nexus 7 tablet is a
solution that gives you an better, reliable, easier and
efficient way to stay connected to your cloud data,
friends, collogues and resources anywhere you like to
move”
PRICING REGARDING SPECIFICATION
 Affordable
 Yet brilliant
 With HD screen
 & Quad core processor
 & Andreno GPU
 And much much more
 With Price 30000 PKR
PRODUCT LINE PRCING
Its prices are varied also by the memory sizes
which are as follows:-
 16 GB 30K PKR
 32 GB 35K PKR
CONT..
 Product line pricing helps the company to reach
customers of different.
 Like in case of Nexus 7 2 they have targeted.
 Teacher , Business Associates with 32 GB model.
 & also have targeted Students , Interns with the 16
GB model with an inflated price.
 This type of strategy is Vital for Companies which
are trying to generate from one product.
SEGMENTATION & CUSTOMER’S
EQUITY
 Google has targeted their customers.
 Which are basically Middle class to Elite class.
 These perceive google products as high end
products.
 Which creates customers loyalty & equity.
 To the Brand.
 They have targeted these customers to maintain
their loyalty.
 Increase their profits.
4 C’S OF MARKETING MIX
CONT…
 These tools work together as 4 P’s.
 The only difference is their perspective view.
 Both focus on customer but in different context.
1. 4 P’s are Product oriented.
2. But 4 C’s are Customer Oriented.
ZARTASHA
ASIF
JOINT VENTURE WITH OTHER
COMPANIES
It is launching with many other companies
 AT&T
 VERIZON
 T-MOBILE
COMPARISON B/W APPLE IPAD & GOOGLE
NEXUS 7 2
 IOS.
 Have Icloud
accessibility.
 Target the special class
of people.
 Creates its own brand
experience.
 Android.
 Have Gmail
accessibility.
 Target every class of
people.
 Creates a brand
experience for
everyone.
Apple Ipad Nexus 7 2
GOOGLE NEXUS 7 2 VS APPLE IPAD
Nexus 7 2 Apple Ipad
BCG OF GOOGLE
STAR
 These product generate most of the Google
Revenue.
 As they have high market share.
 & also high growth rate.
 It include Android OS, Youtube .
 Which is provided by Google to every other
companies like HTC , Samsung , Sony etc.
 These SBUs support other SBUs to survive.
QUESTION MARK
 These products are the latest innovation.
 That’s the reason they have low market growth
rate.
 Initially they survive through SBUs like Stars , Cash
Cows.
 But if they survive this. They can be great asset to
company.
 It include Google Glass.
CASH COW
 These product have low market growth rate.
 But have high market share.
 These product are at the age of maturity in their life
cycle.
 Which include Google Search Engine.
 Which is used worldwide for search of anything in
the world.
DOG
 These SBUs are completing their product life cycle.
 The company can sell these SBUs.
 These are not helping the company to generate
revenue,
 Rather they are fighting for their survival.
 It include Google Wave.
 Which is the old internet explorer of Google.
 Which is substituted by Google Chrome.
BCG CONT…
CONT..
SADIA
NISAR
CHARACTERISTICS AFFECTING
CONSUMERS BEHAVIOR:
• Culture
• Social Factor
• Economical Factor
CULTURE
• As our product is a Gadget
• Do Gadgets are much Influenced by Culture?
• Yes or No!
• Depends on Society
• Apps are interactive and interested
• Revolutionize their lives
• Halt
SOCIAL FACTOR
• Status symbol
• Nexus7 in their hands
• Class and Cool
• Psychological factor
• Premium Apps
ECONOMICAL FACTOR
• We deal much better
• Best experience
• Best Output
COMPETITIVE STRATEGIES
 Stages of approaches to marketing strategy
include:
 Entrepreneurial marketing
 Formulated marketing
 Intreprenurial marketing
Approaches to Marketing Strategy
 Entrepreneurial marketing involves visualizing an
opportunity and constructing and implementing
flexible strategies
 Formulated marketing involves developing formal
marketing strategies and following them closely
 Intrepreneurial marketing involves the attempt to
reestablish an internal entrepreneurial spirit and
refresh marketing strategies and approaches
Approaches to Marketing Strategy
Michael Porter’s four basic
competitive positioning strategies
Basic Competitive Strategies
Overall cost
leadership
Differentiation
Focus
Middle of the
road
 Overall cost leadership strategy is when a
company achieves the lowest production and
distribution costs and allows it to lower its
prices and gain market share
Basic Competitive Strategies
 Differentiation strategy is when a company
concentrates on creating a highly
differentiated product line and marketing
program so it comes across as an industry
class leader
 Focus strategy is when a company focuses
its effort on serving few market segments well
rather than going after the whole market
Basic Competitive Strategies
 Porter believed that a company that pursued a
clear strategy would achieve superior
performance and that companies without a
clear strategy would not succeed
 Porter considered no clear strategy to be
“middle of the road”
Basic Competitive Strategies
SYED MOHAMMAD
MAHAD RIZVI
 Michael Treacy and Fred Wiersema suggest
companies can gain leadership positions by
delivering superior value to their customers in
three strategies or “value disciplines:”
 Operational excellence
 Customer intimacy
 Product leadership
Basic Competitive Strategies
 Operational excellence
refers to a company providing value by
leading its industry in price and convenience
by reducing costs and creating a lean and
efficient value delivery system
Basic Competitive Strategies
 Customer intimacy
refers to a company
providing superior value by segmenting
markets and tailoring products or services to
match the needs of the targeted customers
Basic Competitive Strategies
 Product leadership
refers to a company
providing superior value by offering a
continuous stream of leading-edge products
or services. Product leaders are open to
new ideas and solutions and bring them
quickly to the market.
Basic Competitive Strategies
Market
leader
strategies
Market
challenger
strategies
Market
follower
strategies
Market
nicher
strategies
Competitive Positions
 Market leader
is the firm with the largest market share
and leads the market price changes, product innovations,
distribution coverage, and promotion spending
 Market challengers
are firms fighting to increase
market share
 Market followers
are firms that want to hold onto their
market share
 Market nichers
are firms that serve small market
segments not being pursued by other firms
Competitive Positions
 Expand total demand
 Protect their current market
 Expand market share
Market Leader
Strategies
Expand total demand by developing:
 New users
 New uses
 More usage of its products
Market Leader Strategies
Expanding Total Demand
COMPETITIVE STRATEGIES
Protect current market by:
 Fixing or preventing weaknesses that provide
opportunities to competitors
 Maintain consistent prices that provide value
 Keep strong customer relationships
 Continuous innovation
Market Leader Strategies
Protecting Market Share
COMPETITIVE STRATEGIES
Expand market share by:
 Increasing profitability with increasing market share in
served markets
 Producing high-quality products
 Creating good service experiences
 Building close relationships
Market Leader Strategies
Expanding Market Share
COMPETITIVE STRATEGIES
 Challenge the leader with an aggressive bid
for more market share
 Play along with competitors and not rock the
boat
Market Challenger Strategies
 Second mover advantage
occurs when a market
follower observes what has made the leader
successful and improves on it
Challenges firms its own size or smaller
Market Follower
Strategies
Ideal market niche is big enough to be profitable
with high growth potential and has little
interest from competitors
Key to market niching is specialization
 Market
 Customer
 Product
 Marketing mix
Market Nicher
Strategies
Google nexus-7 .ppt
Google nexus-7 .ppt

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Google nexus-7 .ppt

  • 1. PROJECT PRINCIPLES OF MARKETING Presented to :- Sir. Zafar Ullah Saqidui
  • 2. PRODUCT: ASUS NEXUS 7 2ND GEN  WE ARE TECHBOTS  Project Members I. Adeel Iftikhar. II. Rahul Rai. III. Zartasha Asif. IV. Mahad Rizvi. V. Sadia Nisar. VI. Qurat ul Ain Khan. VII. Qasim Ali Khan
  • 3. AGENDA OF TODAY’S PRESENTATION  About Product & its specifications.  Marketing Mix.  Positioning of the product.  Competitor Analysis.  SWOT analysis.  Product Expansion Grid.  Segmentation.  Positioning Map.  Its Pricing.  Product Line Pricing.  Product placement.  Coalition with other companies.  Characteristics affecting consumer behaviour.  Competitive strategies.  Competitive positions.
  • 5. PRODUCT FEATURES  Google Nexus 7 2nd generation  Operating system 4.3  Rear Camera 5 MP , front camera 1.2  Different versions  Wireless charging and HDMI port
  • 6. MARKETING MIX  These are the tools. Which the Marketer’s use to satisfy their customers.  Through delivering a particular market offering.  These include:- 1) Product. 2) Price. 3) Placement. 4) Promotion.
  • 7. PRODUCT  2 GB Ram with quad core 1.5 GHz processor.  7 inch tablet  Thickness 8.7mm  Thin ,comfortable and longer lasting  More features
  • 8. PROMOTION  Nexus 7 2 is promoted via TV ads.  E-mail in boxing as google has a wide network of mails.  Ads on websites.  Magazine ads.  To reach its customers as much as possible so that company can generate revenue from sales.
  • 9. PROMOTION  Advertisement  Facebook, Twitter and other social sites  User choice colors  Placement  Different offers
  • 10. PLACEMENT o As tabs are popular in 10-35 age group o We placed it in IT markets o Advertised it in places visited by our targeted age group o As it will be a big brand we sold it only in our frenchise
  • 11. PRICE • Price kept low as compared to other tabs • Specs much inferior than price • Market Penetration Strategy: • Lot more in Lot less • Latest features as in expensive tabs
  • 13. PRODUCT PLACEMENT It is available in :- International markets Distributers world wide Online stores Retailers
  • 14. SERVICES PROVIDED BY GOOGLE  Home delivery  In future – 10 inch tablet  Allotting membership cards  Keyboard stand case  Sim Card
  • 15. POSITIONING OF PRODUCT  The way the product is defined by consumers on important attributes.  Price  Quality  Service
  • 16.
  • 17.  The place the product stands in consumer minds relative to other products.  Availability of Product
  • 18.  Brand Personality -> excitement  Feel difference between their product and competitor’s product
  • 19. COMPETITOR ANALYSIS  Strengths and weaknesses of the competitors  Competitors -> current + potential e.g Samsung  Company decreases price, competitors do same with additional features.
  • 20.  Selling of product at particular place  More specifications, in less price than competitors  Vast range of competitors  Better service – home delivery
  • 21. CUSTOMER PERCEIVED VALUE  Google placed its high end Tab.  In the eyes of the customers as the best tab.  Regarding the price to specifications ratio.  Company had tried to make its customers delight by giving affordability as well as features.  Which have given the company an edge over it competitors. 1. Amazon Kindle. 2. Apple Ipad. 3. Samsung Galaxy Tabs. 4. Windows Tabs. 5. Sony Xperia Tab.
  • 22. ABOUT THIS NEXUS 7 2 IN BCG MATRIX  When this product was launched it was a question mark for Google.  This product has gain its value in the eyes of those customers.  Who want affordability as well as a high end gadget.  This product is now in the age of converting itself into Star.  Not Yet but it will be According to Google
  • 25. STRENGTHS  Low price / affordable to students  7inch tablet / portability /can be fitted in pocket  Some features that makes it unique  1200 x 1920 pixels & 323 ppi  2gb RAM  5MP rear cam  Can play almost every game  Wireless charging  Nexus tag line (google software)
  • 26. WEAKNESSES  low sales of the product  Limited availability  Non expandable memory (unlike Samsung tab)  Small screen size  awkwardly positioned speakers  Look of the speakers might be not comforting to many users  Asus can still do better and come up with more good products
  • 27. OPPORTUNITIES  ASUS might become biggest tablet manufacturer  Different screen size  Different colors  Can introduce tablet specifically for women  Expandable memory  Can give option to customers to optimize their tablets like nexus 5  Can give another product as an incentive
  • 28. THREATS  ASUS new in tablet market  Apple, Samsung, and Amazon  Just have 2 tablets  Is Non Expandable memory a threat to nexus 7?  Small screen size  Rather working with google they should have their own android powered tablet
  • 30. MARKET PENETRATION  Asus is Taiwanese company.  Their products  Their market shares increases rapidly after ultrabooks and tablets  Nexus 7 1st gen in 2012  One of the best selling tab of 2012
  • 31. MARKET DEVELOPMENT  ASUS built by comp engineering who used to work for Acer  Gained popularity in few years  Became 5th largest computer vendor in 2012  In the short span of time managed to open many stores  Now competing with top selling laptop brands (Hp, Dell, Lenovo)
  • 32. PRODUCT DEVELOPMENT  Nexus 7 in 2012  Nexus 7 2nd gen in 2013  High specs with low price as compared to many other tablets  Google helped to increase the sales of Nexus 7 due to their advertisement campaigns
  • 33. DIVERSIFICATION  Transformer pads in 2012  Comes with portable keyboard  Tablet + laptop  Nexus 7 in 2012  Opened stores in different regions around the globe  Asus Zenbook, slimmest ultrabook
  • 36. DEMOGRAPHICALLY SEGMENTED:  Age: Goggle Nexus 7 is designed to target young educated people that lies within 10-35 range.
  • 37. GEOGRAPHICALLY SEGMENTED Style and design may vary place to place, but Nexus 7 fulfills all the requirement that our customers needs
  • 38. PRODUCT AVAILABILITY: NEXUS 7 will be initially available in the capital (Islamabad) of Pakistan  well educated  mall, shopping center and stores  Later on, we will also target other big cities of Pakistan
  • 39. PSYCHO-GRAPHICALLY SEGMENTED:  inspired by the colleagues, family members and friends  People like products that suits their social class, personality and life style  catch the attraction in any individual with its extraordinary attributes
  • 40. BEHAVIOR SEGMENTED:  experience its specialty and uniqueness as our objective is to satisfy and value consumer
  • 42. CONT..  Positioning map compare two attributes of a particular product with its competitors.  Price is ranged from 1-5 meaning Poor to Excellent.  Also with Quality & Performance.  Price as Variable1.  Quality & Performance as Variable2.
  • 43. CONT..  In case of Nexus 7 2.  It has rating of 4.5 on Price.  & also 4.5 on Quality & performance.  Which means that customers are satisfied with this product.  As they compare the Price to Quality & Performance Ratio. Which is 1.
  • 44. POSITIONING STATEMENT: “To modern mobile, laptops, IPod and cloud users who want to be up-to-date, Nexus 7 tablet is a solution that gives you an better, reliable, easier and efficient way to stay connected to your cloud data, friends, collogues and resources anywhere you like to move”
  • 45. PRICING REGARDING SPECIFICATION  Affordable  Yet brilliant  With HD screen  & Quad core processor  & Andreno GPU  And much much more  With Price 30000 PKR
  • 46. PRODUCT LINE PRCING Its prices are varied also by the memory sizes which are as follows:-  16 GB 30K PKR  32 GB 35K PKR
  • 47. CONT..  Product line pricing helps the company to reach customers of different.  Like in case of Nexus 7 2 they have targeted.  Teacher , Business Associates with 32 GB model.  & also have targeted Students , Interns with the 16 GB model with an inflated price.  This type of strategy is Vital for Companies which are trying to generate from one product.
  • 48. SEGMENTATION & CUSTOMER’S EQUITY  Google has targeted their customers.  Which are basically Middle class to Elite class.  These perceive google products as high end products.  Which creates customers loyalty & equity.  To the Brand.  They have targeted these customers to maintain their loyalty.  Increase their profits.
  • 49. 4 C’S OF MARKETING MIX
  • 50. CONT…  These tools work together as 4 P’s.  The only difference is their perspective view.  Both focus on customer but in different context. 1. 4 P’s are Product oriented. 2. But 4 C’s are Customer Oriented.
  • 52.
  • 53. JOINT VENTURE WITH OTHER COMPANIES It is launching with many other companies  AT&T  VERIZON  T-MOBILE
  • 54. COMPARISON B/W APPLE IPAD & GOOGLE NEXUS 7 2  IOS.  Have Icloud accessibility.  Target the special class of people.  Creates its own brand experience.  Android.  Have Gmail accessibility.  Target every class of people.  Creates a brand experience for everyone. Apple Ipad Nexus 7 2
  • 55. GOOGLE NEXUS 7 2 VS APPLE IPAD Nexus 7 2 Apple Ipad
  • 57. STAR  These product generate most of the Google Revenue.  As they have high market share.  & also high growth rate.  It include Android OS, Youtube .  Which is provided by Google to every other companies like HTC , Samsung , Sony etc.  These SBUs support other SBUs to survive.
  • 58. QUESTION MARK  These products are the latest innovation.  That’s the reason they have low market growth rate.  Initially they survive through SBUs like Stars , Cash Cows.  But if they survive this. They can be great asset to company.  It include Google Glass.
  • 59. CASH COW  These product have low market growth rate.  But have high market share.  These product are at the age of maturity in their life cycle.  Which include Google Search Engine.  Which is used worldwide for search of anything in the world.
  • 60. DOG  These SBUs are completing their product life cycle.  The company can sell these SBUs.  These are not helping the company to generate revenue,  Rather they are fighting for their survival.  It include Google Wave.  Which is the old internet explorer of Google.  Which is substituted by Google Chrome.
  • 64. CHARACTERISTICS AFFECTING CONSUMERS BEHAVIOR: • Culture • Social Factor • Economical Factor
  • 65. CULTURE • As our product is a Gadget • Do Gadgets are much Influenced by Culture? • Yes or No! • Depends on Society • Apps are interactive and interested • Revolutionize their lives • Halt
  • 66. SOCIAL FACTOR • Status symbol • Nexus7 in their hands • Class and Cool • Psychological factor • Premium Apps
  • 67. ECONOMICAL FACTOR • We deal much better • Best experience • Best Output
  • 68. COMPETITIVE STRATEGIES  Stages of approaches to marketing strategy include:  Entrepreneurial marketing  Formulated marketing  Intreprenurial marketing Approaches to Marketing Strategy
  • 69.  Entrepreneurial marketing involves visualizing an opportunity and constructing and implementing flexible strategies  Formulated marketing involves developing formal marketing strategies and following them closely  Intrepreneurial marketing involves the attempt to reestablish an internal entrepreneurial spirit and refresh marketing strategies and approaches Approaches to Marketing Strategy
  • 70. Michael Porter’s four basic competitive positioning strategies Basic Competitive Strategies Overall cost leadership Differentiation Focus Middle of the road
  • 71.  Overall cost leadership strategy is when a company achieves the lowest production and distribution costs and allows it to lower its prices and gain market share Basic Competitive Strategies
  • 72.  Differentiation strategy is when a company concentrates on creating a highly differentiated product line and marketing program so it comes across as an industry class leader  Focus strategy is when a company focuses its effort on serving few market segments well rather than going after the whole market Basic Competitive Strategies
  • 73.  Porter believed that a company that pursued a clear strategy would achieve superior performance and that companies without a clear strategy would not succeed  Porter considered no clear strategy to be “middle of the road” Basic Competitive Strategies
  • 75.  Michael Treacy and Fred Wiersema suggest companies can gain leadership positions by delivering superior value to their customers in three strategies or “value disciplines:”  Operational excellence  Customer intimacy  Product leadership Basic Competitive Strategies
  • 76.  Operational excellence refers to a company providing value by leading its industry in price and convenience by reducing costs and creating a lean and efficient value delivery system Basic Competitive Strategies
  • 77.  Customer intimacy refers to a company providing superior value by segmenting markets and tailoring products or services to match the needs of the targeted customers Basic Competitive Strategies
  • 78.  Product leadership refers to a company providing superior value by offering a continuous stream of leading-edge products or services. Product leaders are open to new ideas and solutions and bring them quickly to the market. Basic Competitive Strategies
  • 80.  Market leader is the firm with the largest market share and leads the market price changes, product innovations, distribution coverage, and promotion spending  Market challengers are firms fighting to increase market share  Market followers are firms that want to hold onto their market share  Market nichers are firms that serve small market segments not being pursued by other firms Competitive Positions
  • 81.  Expand total demand  Protect their current market  Expand market share Market Leader Strategies
  • 82. Expand total demand by developing:  New users  New uses  More usage of its products Market Leader Strategies Expanding Total Demand
  • 83. COMPETITIVE STRATEGIES Protect current market by:  Fixing or preventing weaknesses that provide opportunities to competitors  Maintain consistent prices that provide value  Keep strong customer relationships  Continuous innovation Market Leader Strategies Protecting Market Share
  • 84. COMPETITIVE STRATEGIES Expand market share by:  Increasing profitability with increasing market share in served markets  Producing high-quality products  Creating good service experiences  Building close relationships Market Leader Strategies Expanding Market Share
  • 85. COMPETITIVE STRATEGIES  Challenge the leader with an aggressive bid for more market share  Play along with competitors and not rock the boat Market Challenger Strategies
  • 86.  Second mover advantage occurs when a market follower observes what has made the leader successful and improves on it Challenges firms its own size or smaller Market Follower Strategies
  • 87. Ideal market niche is big enough to be profitable with high growth potential and has little interest from competitors Key to market niching is specialization  Market  Customer  Product  Marketing mix Market Nicher Strategies