MARKETING MANAGEMENT-1

ASSIGNMENT 7-9

GROUP-7

1. Ashik Ahmed (190101032)

2. Chirag Chaudhary (190103046)
3. Danish Saeed (190101039)
4. Naincy Chittransh (190101067)
5. Rachit Srivastava (190103173)
6. Varun Kaore (190103165)

1) Discuss the growth strategies at corporate and business levels with suitable examples.

Growth strategies at corporate and business levels incorporate methods and techniques to boost
and increase the market share of the business in the industry and maximize the profits and value
for its products simultaneously. Growth strategies include some of the following core points of
implementation within the business:

 MARKET PENETRATION: Market penetration focuses on current products and current

markets in order to increase market share. Market penetration requires strong execution in
pricing, promotion, and distribution in order to grow market share.

 PRODUCT DEVELOPMENT STRATEGIES: Product development strategy is the

process of bringing an innovation to consumers from concept to testing through
distribution. When existing business revenue platforms have plateaued, it is time to look at
new growth strategies. It includes improving existing products, bringing new product to
markets and product line extension.
  MARKET DEVELOPMENT STRATEGIES: It is the process of introducing the current
products in a new market for example, by geographic expansion for the product, attracting
non-users of products to buy the products and attracting customers of the competitors.

 DIVERSIFICATION STRATEGIES: Diversification for a corporate or business would

mean exploring and developing new products in new markets. This would mean the
business venturing into new territories and gaining new experience in terms of product
development and market development.

Example:
Considering Xiaomi’s since their entry into the Indian smartphone market in 2013, its market share
has increased from 0% in 2013 to about 29% as of July 2019. Comparing this to its biggest
competitor in Indian market, Samsung, which has had a fairly steady market between 20% - 30%
(although in slow decline) between the same time period, Xiaomi, inspite of being a new entrant
in a new market has won a major chunk of the market share even with competitions from ages old
market leaders. With their mission statement “Making Quality Technology Accessible to
Everyone”, Xiaomi has clearly stated its market growth strategy in a simple sentence.

Xiaomi has priced their smartphones cheaper than its competitors while providing them with same
and sometimes even better technology at a lower price. This has resonated well with them for their
Product Development Strategy to establish a strong market in India.
Following up on their continued effort to increase market share, their Market Penetration Strategy
has worked well to help them increase their market share year-by-year through excellent pricing,
promotion, and distribution strategies.
Xiaomi’s aggressive expansion plans reflect their Market Development Strategies where they keep
expanding in countries and markets by their already existing impressive smartphone models which
cater to almost all the people across various segments.
2) Discuss the concept and implications of the "Value chain"

The value chain definition was given by Michael Porter and it has been defined as a tool that can
help a firm in identifying ways to create more customer value since every firm is essentially a
synthesis of primary and support activities performed to design, produce, market, deliver, and
support its product. The value chain identifies nine strategically relevant activities—five primary
and four support activities—that create value and cost in a specific business. The primary
activities are

 Inbound logistics, or bringing materials into the business- includes the receiving,
warehousing and inventory control of input materials.
 Operations, or converting materials into final products- value creating activities that
transform the inputs into final product.
 Outbound logistics, or shipping out final products- activities required to get the finished
product to the customer including warehousing and order fulfilment.
 Marketing, which includes sales activities associated with getting buyers to purchase the
product including advertising, pricing etc.
 Service- to maintain and enhance the product value through customer support, repair
services etc.

Specialized departments handle the support activities that are as follows-

 Procurement- purchase of raw materials and other inputs.

 Technology development- R&D plus the other technological activities used to support
the value chain creation activities.
 Human resource management-involves recruitment, development and compensation of
employees.
 Firm infrastructure. (Infrastructure covers the costs of general management, planning,
finance, accounting, legal, and government affairs.)

Value chain creation and implementation is an essential component of a business’ success which
essentially depends on how well the company coordinates departmental activities to conduct core
business processes which involve 5 steps i.e. market sensing, new offering realization, customer
acquisition, customer relationship management and fulfilment management.
Effective value chain creation helps a company develop a competitive advantage and this
practice is not only restricted to within the company, instead it can be extended to involve
suppliers, distributors and other stakeholders to cut costs or create a superior value delivery
network (supply chain) and may also help the company find its core competency which is an
essential step towards gaining control of the market.

3) Explain the contents of a "Marketing plan".

A marketing plan is a written document that summarizes what the marketer has learned about the
marketplace and indicates how the firm plans to reach its marketing objectives. It contains
tactical guidelines for the marketing programs and financial allocations over the planning period.

A marketing plan is one of the most important outputs of the marketing process. It provides
direction and focus for a brand, product, or company. It informs and motivates key constituents
inside and outside an organization about its marketing goals and how these can be achieved.
Nonprofit organizations use marketing plans to guide their fund-raising and outreach efforts, and
government agencies use them to build public awareness of nutrition and stimulate tourism.

A marketing plan consists of: -

 Executive Summary and Table of Contents: Executive summary is prepared based on
the total plan. It is aimed at presenting all of the important aspects of the plan in nutshell.
The marketing plan usually starts with such a summary of a couple of pages highlighting
the major goals as well as recommendations. Such a summary saves valuable time of the
top management. They can have a brief idea of the plan at a glance.

 Current Marketing Situation: This part basically deals with market, product,
competition, distribution, and macro environmental forces. In the market situation
analysis, different aspects of market are considered. The size of the existing market,
potential growth rate, distribution of market according to different areas, and needs,
wants, and behavioral patterns of the market are highlighted in this section. In the product
situation part, sales, margin, prices etc. of products of different lines are narrated. In
competitive situation analysis, actions of different competitors, their offers, market sizes,
product qualities, and strategies are discussed. The distribution situation analysis part
deals with different aspects of available distribution channels such as their sizes,
importance etc. The macro environment situation part deals with the trends of major
forces of the macro environment such as demographic, economic, socio-cultural,
political/legal, and technological forces.

 Opportunity and Issue Analysis: When the market situation analysis is completed, the
planner moves to opportunity and issue analysis. Here, he identifies major
opportunities/threats, strengths/weaknesses, and the issues that are related to the product
of the company.

 Objectives: After the opportunities/ threats, strengths/ weaknesses, and the issues that are
identified, the product manager has to decide on the objective/s he wants to achieve. He
needs to set both financial and marketing objectives. For example, the financial objective
of a company could be to produce a cash flow of Tk. 5 crore in the year 2000. The
marketing objective on the other hand could be gaining 30% market coverage. While
setting the marketing objective the manager must keep in mind the financial objective.
That is, it should be consistent with the financial objective.

 Marketing Strategy: To achieve the objectives set before, the product manager must
develop strategies because objectives can be achieved pursuing certain strategies.
Marketing strategies may be presented in a list form consisting of target market,
 positioning, product line, price, distribution outlets, sales force, service, advertising, sales
promotion, research and development, and marketing research. Decisions on each of the
above should be taken to come up with sound marketing strategy.

 Action Programs: The objectives may be attained through undertaking number of action
programs. Action programs tell in detail how parts of the marketing strategy be
implemented, when, how, and by whom.

 Projected Profit-and-Loss Statement: On the basis of the action plans, product

manager may prepare budget to support his activities. This type of budget has both
revenue and expenditure sides. The revenue side shows the anticipated sales, and, the
expenditure side shows different expenses. The projected profit may be ascertained by
finding the difference between revenue and expense sides. If the revenue exceeds
expenses, the firm anticipates profit, and, if expense side exceeds revenue side, the firm
anticipates a loss. Higher management may decide to modify the plan looking at the
projected profit-and-loss statement.

 Controls: Control is a pre-requisite for any plan to be successful. Management must

monitor continuously the progress of the plan to make sure that everything is going in
order. Periodical monitoring helps management identify loopholes of the plan and take
corrective measures so that the goals are achieved. Moreover, control section in a
marketing plan sometimes includes contingency plan. Such a plan outlines what
management should do if any adverse situation arises.