Marketing Applications & Practices

Session: 1 Prof: Yasmin

Course Content
Strategic planning process in Marketing Preparation of marketing and business plans B2B marketing Fast moving consumer goods marketing Consumer Durables marketing Service marketing

Course Content
Rural marketing Retail management Internet marketing Direct marketing Event & Media marketing Field project involving preparation of marketing / business plan in any Industry verticals.

Assessment
100 marks divided in 60 marks external and 40 marks internals.
Internals: Presentations, case studies, class test, assignments, class activities and attendance

Reference books
Marketing Management - Kotler, Keller, Koshi & Jha 14th edition perarson. Basic Marketing, 13th edition, Perrault and McCarthy Mcgraw Hill India Marketing Management Indian Context Dr. Rajan Saxena McGraw Hill India Marketing Management Ramaswamy & Namkumari Mcmillan

Overview
Topics covered so far
Introduction, evolution of marketing, Marketing environment, Market research CBB, OBB Pillars of Marketing Marketing Mix

Overview
Syllabus of semester two
Formulation of strategies Practical application Studying marketing under rural conditions, retail, service marketing, FMCG etc

Chapter 1

STRATEGIC PLANNING PROCESS IN MARKETING

Strategic Marketing
Strategic marketing deals with the 'big picture' marketing planning. It analyzes how a company can best satisfy its customers and make a profit at it. Strategic marketing planning is directed from the top of the company and is extremely important.

Strategic Marketing- Definition

Identification of one or more sustainable competitive advantages a firm has in the markets it serves (or intends to serve), and allocation of resources to exploit them.

 Strategic Marketing calls for a more structured approach where we define what were trying to accomplish, measure and analyze the markets and media options and implement an integrated campaign that will help you capture the most value for your budgeted marketing money by achieving your defined objectives.

Kotler on Marketing
It is more important to do what is strategically right than what is immediately profitable.

Marketing the key to success

Understand the Marketplace and Consumer
A company must identify the sources of demand for its products and closely analyze the competitive landscape in which it wants the consumer to prefer its products over those of competitors.

The company must divide potential customers into segments and find ways to best satisfy them. Each segment may require a distinct marketing mix.

Marketing the key to success

Set Clear Objectives
Strategic marketing is also based on the principle of setting clear objectives of what the company needs to achieve in terms of its market position. An important variable with this principle is market share. Basically, the more dominant a company is in any particular consumer segment, the higher prices it can command and the stronger its long-term position is.

Marketing the key to success

Deliver Value
While satisfying individual consumer segments and gaining market share is important, the company must add value to be successful in the long term. Strategic marketing planning must be build on a strong foundation---a company has to deliver a tangible benefit to the consumers of its products.

Principles of Strategic Marketing

PRINCIPLE #1
Know your Target Group An Effective Marketing Campaign will be directly focused on selling to your specific niche. Different groups of people are looking for different concepts. When you present your product to a specific niche, you increase the buyer interest exponentially, creating an opportunity for greater marketing success.

PRINCIPLE #2
Share your Genuine Passion When you feel strongly about your product or service, the passion and enthusiasm you generate creates momentum that will ultimately sell your product or service. Your buyer will assume the same passion and begin to promote your product expanding your potential market with word of mouth marketing.

PRINCIPLE #3
Dare to be Different and Unique And stand out in the crowd. Being different exemplifies quality, value, and independence within your market. When you present your business as Unique and Differentiate between yourself and others you Brand your business with Integrity and Independence.

PRINCIPLE #4
Understand the Law of Success Know that Success is the natural response to Marketing. Once you understand that Success is the Natural Response to Marketing it's easy to accept a "No" with sincere grace and move on to the next customer. When you realize that making a sale is a direct result of having a product or service to sell, you can smile and walk away graciously when someone doesn't buy with confidence that they just don't need what you have to offer.

PRINCIPLE #5
Know your Business Purpose When you understand that your purpose in business is to make sales and market your product or services, then you begin to present your product and services in everything you do. Your website promotes your business, because it sells your products and services. Your business card, your letterhead, you copy, your mannerisms sell your business because that's the purpose and goal of your Business.

PRINCIPLE #6
Find Results Oriented Solutions Once your efforts are focused on solutions your business expands to encompass the process, developing new ways and concepts to offer solutions to your specific market. Your customers begin turning to you for all their solutions in your field and your company produces more and more solutions. The result of high quality business solutions is success.

PRINCIPLE #7
Never Give Up Failure is part of success. When you realize that every failure you experience brings you that much closer to success, and every failure you experience is a lesson bringing you closer to success, you encounter more opportunities for success. Learn from mistakes and make consistent strides to improve your Business Marketing Strategies.

The Marketing Process

Steps in the Planning Process
The marketing process

Analyzing Market Opportunities Developing Marketing Strategies Planning Marketing Programs Managing the Marketing Effort
Annual-plan control Profitability control Strategic control

The Marketing Process

The Marketing Process

The process of 1. Analyzing marketing opportunities; 2. Selecting target markets; 3. Developing a marketing mix; 4. Managing the marketing effort.

The company first identifies the total market, then divides it into small segments, selects the most promising segments, and focuses on serving and satisfying these segments.
To find the best marketing mix and put into action, the company engages in marketing analysis, planning, implementation and control.

Connecting with Consumers

Companies know that they cannot connect profitably with all consumers in a given market at least not all consumers in the same way. Thus, each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments better than its competitors do.

This process involves three steps: market segmentation, market targeting, and market positioning.

Market Segmentation
The market consists of many types of consumers, products, and needs, and the marketer has to determine which segments offer the best opportunity for achieving company objectives. Consumers can be grouped and served in various ways based on geographic, demographic, psychographic, and behavioral factors.

A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
Market segmentation dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.

Market Targeting
The process of evaluating each market segments attractiveness and selecting one or more segments to enter. A company should target segments in which it can profitably generate the greatest customer value and sustain it over time. Most companies enter a new market by serving a single segment, and if this proves successful, they add segments. GM says that it makes a car for every person, purse, and personality.

Market Positioning
A products position is the place the product occupies relative to competitors in consumers minds. Market positioning arrangement for a product to occupy a clear, distinctive, and desirable place relative to competing products from competing brands and give them the greatest strategic advantage in their target markets. Thus, marketers plan positions that distinguish their products from competing brands and give them the greatest strategic advantage in their target markets. The company first identifies possible competitive advantages on which to build the position.

The four Ps of Marketing Mix

Product
Variety Quality Design Features Brand name Packaging Services

Price
List price Discounts Allowances Payment period Credit terms Target customers Intended positioning

Place
Channels Coverage Assortments Locations Inventory Transportation Logistics

Promotion
Advertising Personal selling Sales promotion Public relations

Buyers Viewpoint

4Ps Product Price Place Promotion

4Cs Customer solution Customer cost Convenience Communication

Managing the Marketing Effort

Analysis

Planning Develop strategic plan

Develop marketing plan

Control Measure results Implementation Carry out the plans Evaluate results Take corrective action

Marketing Analysis & Planning

The company must analyze its markets and marketing environment to find attractive opportunities and to avoid environmental threats. It must analyze company strengths and weaknesses as well as current and possible marketing actions to determine which opportunities it can best pursue. Marketing planning involves deciding on marketing strategies that will help the company attain its overall strategic objectives. A marketing strategy is the marketing logic whereby the company hopes to achieve its marketing objectives. It consists of specific strategies for target markets, positioning, the marketing mix, and marketing expenditure levels.

Marketing Implementation
A brilliant marketing strategy counts for little if the company fails to implement it properly. Marketing planning addresses the what and why of marketing activities, implementation addresses the who, where, when, and how. Many managers think that doing things right (implementation) is as important as, or even more important than, doing the right things (strategy).

Successful implementation depends on how well the company blends its people, organizational structure, decision and reward systems, and company culture into a cohesive action program that supports its strategies.

The Control Process

Set goals

Measure performance

Evaluate performance

Take corrective action

What do we want to achieve?

What is happening?

Why is it happening?

What should we do about it?

Marketing Control
The process of measuring and evaluating the results of marketing strategies and plans, and taking corrective action to ensure that objectives are achieved. Operating control involves checking ongoing performance against the annual plan and taking corrective action when necessary. Strategic control involves looking at whether the companys basic strategies are well matched to its opportunities. The marketing audit is a major tool for strategic control. It is a comprehensive, systematic, independent, and periodic examination of a companys environment, objectives, strategies, and activities to determine problem areas and opportunities.