Marketing Applications & Practices : Sem II

eMBA

MARKETING APPLICATIONS &

PRACTICES

E-MBA @ MET

Prof. Rajkamal Pandey (RKP)

Marketing Applications & Practices : Sem II

eMBA

CORE CONTENT

1. Marketing Strategy1. Marketing Strategy

2. Business & Marketing Plans 2. Business & Marketing Plans

3. B2B Marketing 3. B2B Marketing

4. FMCG Marketing4. FMCG Marketing

5.Consumer Durables Marketing 5.Consumer Durables Marketing

6. Service Marketing 6. Service Marketing

7. Rural Marketing 7. Rural Marketing

8. Retail Marketing 8. Retail Marketing

Marketing Applications & Practices : Sem II

eMBA

9. Direct Marketing 9. Direct Marketing

10. Internet Marketing 10. Internet Marketing

11. Event & Media Marketing 11. Event & Media Marketing

CORE CONTENT

Marketing Applications & Practices : Sem II

eMBA

Marketing takes day to learn. Unfortunately it takes a lifetime to master

Marketing Applications & Practices : Sem II

eMBA

ANTICIPATING CHANGE

Chapter :1

Marketing Applications & Practices : Sem II

eMBA

WHAT’S CHANGING ???

Change

Consumers

Competition

TechnologyEnvironment

Economy

Marketing Applications & Practices : Sem II

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CHANGE IS INEVITABLE…!

Consumers• Consumers becoming more individualist

Competition• Competitors becoming more agile

Technology• Technology becoming more superior

Marketing Applications & Practices : Sem II

eMBA

CHANGE IS INEVITABLE…!

Environment• Environment becoming more exigent

Economy• Economy becoming more volatile

Marketing Applications & Practices : Sem II

eMBA

Largely companies lack insights and react to change

But,

Those companies who Anticipate change, emerges as Winners

Marketing Applications & Practices : Sem II

eMBA

Marketing Applications & Practices : Sem II

eMBA

ANTICIPATE, DON’T JUST FULFILL

Engage

•Trustworthy & Transparent

Express

•Be Intuitive & Natural

Connect

•Seamless & Secure

Marketing Applications & Practices : Sem II

eMBA

DON’T WAIT, ANTICIPATE

Marketing Applications & Practices : Sem II

eMBA

PRESENTATIONS

Topics for Presentation :

• FMCG Industry• Consumer Durables Industry• BFSI Industry• Real Estate Industry• Media & Entertainment Industry• IT / ITES Industry• Online Marketing Industry• Luxury Brand Industry• Healthcare Industry• Service Industry• Education Industry• Automobile Industry• Retail Industry• Telecom Industry

Scope of Presentation :

• Industry Overview :- Overall Market size- Industry growth rate- GDP Contribution- FII Limits- Existing Companies

• PEST Analysis• Swot Analysis• Porter’s 5 Force • Porter’s Generic Strategy• Case Analysis of the leading player in that industry

- BCG Matrix• Future Outlook

Marketing Applications & Practices : Sem II

eMBA

PRESENTATIONS

Details :

•Total Marks : 20 M-Allocation : Content : 14 M ( 7 M each for Hardcopy & PPT)-Commn / Cordn : 6 M

•Time Limit : 30 mins per Group

• Team needs to divide themselves into 2 subgroup : Presentation Group / Q&A Group, consisting of equal number of students

• Logical & Valid Questions from students will be appreciated

• Marks : Weighted Average of individual scores

Marketing Applications & Practices : Sem II

eMBA

MARKETING : PANEL DISCUSSIONS

• Customer is a king v/s Customer is a fool

• Selling v/s Marketing

• Market share v/s Profit

• Recession : Spend v/s Hold

• Online Marketing v/s Offline Marketing

• Premium v/s Mass ( Merc v/s Maruti )

• Focus v/s Diversification

• Rural v/s Urban market

Marketing Applications & Practices : Sem II

eMBA

STRATEGIC MARKETING : UNDERSTANDING

Strategy : A plan of action intended to accomplish a specific goalwithin defined time period.

A strategy is the pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole.

A well-formulated strategy helps to allocate an organization's resources into a unique and viable posture based on its relative internal competencies and shortcomings, anticipated changes in the environment, and contingent moves by intelligent opponents.

Marketing Applications & Practices : Sem II

eMBA

STRATEGIC MARKETING

Formulation of an effective strategy requires marketersto consider three main components : -

Strategy

Company

Customers

Competition

Marketing Applications & Practices : Sem II

eMBA

STRATEGIC MARKETING

Marketing : Is an organizational function and a set of processesfor creating, communicating and delivering value to customersand for managing customer relationships in ways that benefitthe organization and its stakeholder

Marketing Applications & Practices : Sem II

eMBA

STRATEGIC MARKETING : INTRODUCTION

Marketing strategy is a process that can allow an organization toconcentrate its limited resources on the greatest opportunities toincrease sales and achieve a sustainable competitive advantage*.

A marketing strategy should be centered around the key conceptthat ( needs to be defined by the company ), which become themain goal.

Strategic Marketing is the tool available to achieve the defined ( main) goal.

Marketing Applications & Practices : Sem II

eMBA

STRATEGIC MARKETING : ORIGIN

Marketing Applications & Practices : Sem II

eMBA

Marketing Strategy

Marketing Objectives

Business Objectives

Vision / Mission / Core Purpose

STRATEGIC MARKETINGBy 2011 Airtel will be the most admired brand in India:

Loved by more customersTargeted by top talentBenchmarked by more businesses

Marketing Plan

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eMBA

“We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more”

STRATEGIC MARKETING

Marketing Applications & Practices : Sem II

eMBA

Both people and organizations need to establish a strategic framework for significant success. This framework consists of:

a vision for your future a mission that defines what you are doing values that shapes your actions goals & action plans to guide your daily, weekly & monthly actions strategies that zero in on your key success approaches

STRATEGIC MARKETING : CORE EXISTENCE

Marketing Applications & Practices : Sem II

eMBA

Vision StatementA vision is a statement about what your organization wants to become.

It should resonate with all members of the organization and help them feel proud, excited, and part of something much bigger than themselves.

A vision should stretch the organization’s capabilities and image of itself. It gives shape and direction to the organization’s future.

Visions range in length from a couple of words to several pages.

STRATEGIC MARKETING

Marketing Applications & Practices : Sem II

eMBA

P&G :To provide branded products and services of superior quality and value that improve the lives of the world's consumers.

Toyota :To sustain profitable growth by providing the best customer experience and dealer support.

Intel :To constantly push the boundaries of innovation in order to make people's lives more exciting, more fulfilling, and easier to manage. Our unwavering commitment to moving technology forward has transformed the world by leaps and bounds.

BMW :To become most successful premium manufacturer in the car industry.

Cont…..

STRATEGIC MARKETING

Marketing Applications & Practices : Sem II

eMBA

Apple : The best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.

Google :The Perfect Search Engine

Fed Ex :Leading the way

GE :We bring good things to life

Ford : To become the world's leading consumer company for automotive products and services

STRATEGIC MARKETING

Marketing Applications & Practices : Sem II

eMBA

Inference :

Corporate vision inspires and energizes all employees

Communicate strategic direction

Develops an attitude of relentless growth

And most importantly sows the seed of MARKETING…..

STRATEGIC MARKETING

Marketing Applications & Practices : Sem II

eMBA

It is most effective when it is an integral component of overall firm strategy, defining howthe organization will successfully engage customers, prospects, and competitors in themarket arena

As the customer constitutes the source of a company's revenue, marketing strategy isclosely linked with Growth

A key component of marketing strategy is often to keep marketing in line with acompany's overarching mission statement

Marketing strategy is a method of focusing an organization's energies and resources on acourse of action which can lead to increased sales and dominance of a targeted market

STRATEGIC MARKETING : IN A NUTSHELL

Marketing Applications & Practices : Sem II

eMBA

ELEMENTS OF MARKETING STRATEGY

MARKETING STRATEGY

Product / Market

SelectionPrice Distribution Communication

s CRM Location

TechnologyCustomization

4 P’s of Marketing Mix

Marketing Applications & Practices : Sem II

eMBA

• Market Dominance Strategy

• Innovation Strategy

• Marketing Warfare Strategy

• Porter’s Generic Strategy

• Growth Strategy

STRATEGIC MARKETING: TYPES OF STRATEGIES

Marketing Applications & Practices : Sem II

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MARKET DOMINANCE STRATEGY

SectorOnline Search EngineFMCG ( Personal Care )RetailMobile Hand Set InsuranceGlucose BiscuitEnglish News ChannelMilk / Milk ProductComputer ProcessorEdible oilOil Refinery ( Private )

CompanyGoogleHULFuture GroupNokiaLICParle GCNBCAmulIntelSaffolaReliance

Marketing Applications & Practices : Sem II

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MARKET DOMINANCE STRATEGY - ORIGIN

Technology • Innovation

Innovation • First Mover Advantage ( FMA)

FMA • Control of Resources ( CoR)

CoR • Manufacturing

Manufacturing • Economies of Scale ( EoS)

EoS • Cost Advantage

Cost Advantage • Market Growth

Market Growth • Market Share

Market Share • Market Leader

Market Leader • Market Dominance

Marketing Applications & Practices : Sem II

eMBA

MARKET DOMINANCE STRATEGY

Market dominance is a measure of the strength of a brand,product, service, or firm, relative to competitive offerings. Indefining market dominance, you must see to what extent aproduct, brand, or firm controls a product category in a givenmarket.

Marketing Applications & Practices : Sem II

eMBA

MARKET DOMINANCE STRATEGY : WHY ?

Distribution • Penetration

Penetration • Availability

Availability • High Awareness ( Visibility )

High Awareness • High Recall

High Recall • Strengthen Brand Equity

Brand Equity • Customer Loyalty

Customer Loyalty • Brand Growth

Brand Growth • Enterprise Growth

Enterprise Growth • Category Growth

Category Growth • Industry Growth

Marketing Applications & Practices : Sem II

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MARKET DOMINANCE STRATEGY - LEVELS

Market Leader

Market Challenger

Market Follower

Market Nicher

Marketing Applications & Practices : Sem II

eMBA

Typical Characteristics of Market Leader :

• It is the industry leader in developing innovative new business models and new

products

• It tends to be on the cutting edge of new technologies and new production

processes

• It sometimes has some market power in determining either price or output

• The main options available to market leaders are

- Expand the total market

- Sustain & Increase your existing market share

MARKET LEADER

Marketing Applications & Practices : Sem II

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Characteristics of Market Challenger :

• A market challenger is a firm in a strong, but not dominant position that is following an

aggressive strategy of trying to gain market share

• It typically targets the industry leader (for example, P&G target HUL), but it could also

target smaller, more vulnerable competitors.

• The fundamental principles involved are:

- Assess the strength of the target competitor. Consider the amount

of support that the target might muster from allies.

- Choose only one target at a time.

-Find a weakness in the target's position. Attack at that point.

-Launch the attack quickly, then consolidate.

MARKET CHALLENGER

Marketing Applications & Practices : Sem II

eMBA

Some of the options open to a market challenger are:

• price discounts or price cutting

• line extensions

• introduce new products

• reduce product quality

• increase product quality

• improve service

• change distribution

• cost reductions

• intensify promotional activity

MARKET CHALLENGER

Marketing Applications & Practices : Sem II

eMBA

MARKET FOLLOWER

• A market follower is a firm that is not in a leading position at all and content to stay at that

position. The rationale is that by developing strategies that are parallel to those of the

market leader, they will gain much of the market from the leader while being exposed to very

little risk. This “play it safe” strategy is how Cocaraj retains its position behind Parachute.

The advantages of this strategy are:

• no expensive R&D failures

• no risk of bad business model

• “best practices” are already established

• able to capitalize on the promotional activities of the market leader

• minimal risk of competitive attacks

• don’t waste resources in a head-on battle with the market leader

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• In this niche strategy the firm concentrates on a select few target markets. It

is also called a focus strategy

• It is hoped that by focusing ones marketing efforts on one or two narrow

market segments and tailoring your marketing mix to these specialized

markets, you can better meet the needs of that target market

• The niche should be large enough to be profitable, but small enough to be

ignored by the major industry players.

• Profit margins are emphasized rather than revenue or market share. The

firm typically looks to gain a competitive advantage through effectiveness

rather than efficiency

MARKET NICHER

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The most successful nichers tend to have the following characteristics:

• They tend to be in high value added industries and are able to obtain high

margins

• They tend to be highly focused on a specific market segment

• They tend to market high end products or services, and are able to use a

premium pricing strategy

• They tend to keep their operating expenses down by spending less on

R&D, advertising, and personal selling

MARKET NICHER

Marketing Applications & Practices : Sem II

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Innovation Strategy refers to the creation, or reinvention, of a business

itself. Whereas innovation is more typically seen in the form of a new

product or service offering, a Business Model Innovation results in an

entirely different type of company (SBU) that competes not only on the

value proposition of its offerings, but aligns its profit formula, resources and

processes to enhance the value proposition, capture new market segments

and alienate competitors.

INNOVATION STRATEGY

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INNOVATION STRATEGY

Value Proposition

Operating Model

Business Model

Innovation

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INNOVATION STRATEGY -VALUE PROPOSITION

The Value Proposition answers the question, What are we offering to whom ?It reflects explicit choices along the following 3 dimensions :

Target Segment

Which customer do we choose to serve ? Which of their needs to we seek to

address ?

Product / Service

What are we offering to

customers to satisfy their

needs ?

Revenue Model

How are we compensated

for our offerings ?

Marketing Applications & Practices : Sem II

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INNOVATION STRATEGY -OPERATING MODEL

The Operating model answers the question, How do we profitability deliverthe offering? It captures the business’s choices in the following 3 criticalareas :

Value Chain

How are we configured to

deliver on customer

demand ?

Cost Model

How do we configure our assets & costs to deliver our

value proposition profitably ?

Organization

How do we deploy &

develop our people to sustain &

enhance our comp advtg ?

Marketing Applications & Practices : Sem II

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Innovation

Operating Model

Value Propositio

n

BUSINESS MODEL INNOVATION

ITC

Backward Integratio

n

Paper Solutions

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BUSINESS MODEL INNOVATION - LEVELS

Pioneers

Close Followers

Late Followers

Kotak Mahindra

Tata AIG

Birla Sunlife

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MARKETING WARFARE STRATEGY

Marketing warfare strategies are a type of strategies, used in business andmarketing, that try to draw parallels between business and warfare, and thenapply the principles of military strategy to business situations

The marketer’s following Marketing warfare strategy are more “competitordriven than customer driven”

In regard to what marketing strategists call "first-mover advantage", inMarketing Warfare Strategy, it is interpreted as : "Generally, he whooccupies the field of battle first and awaits an enemy is at ease, he whocomes later to the scene and rushes into the fight is weary"

Marketing Applications & Practices : Sem II

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MARKETING WARFARE STRATEGY

There’s is a saying that it is easier to get to the top than to stay there

But,

Once at the top, a company can use the power of it’s leadership position to stay there

Marketing Applications & Practices : Sem II

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MARKETING WARFARE STRATEGY : TYPES

MWS

Defensive

Offensive

Flanking

Guerrilla

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DEFENSIVE MARKETING STRATEGY

While trying to expand total market size, the dominant firm must continuously

& actively defend its current business

Defensive marketing warfare strategies are a type of marketing warfare

strategy designed to protect a company's market share, profitability, product

positioning, or mind share

Marketing Applications & Practices : Sem II

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PRINCIPLES OF DMS

• Attacking yourself is the best defensive strategy : Introducing products better than your existing ones pre-empt similar moves by the competition.

• Always block strong offensive moves made by competitors : If the player fails to do so, the competitor may become entrenched & permanently maintain market share

• Defend important market / prodcut first : To sustain the advantage over the competition, focus should never get diverted from core offering to the defined target market

• Market Leader strategy : Defensive strategies should be the exclusive domain of the market leader.

Marketing Applications & Practices : Sem II

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OFFENSIVE MARKETING STRATEGY

The strength of the leader’s position is of primary importance because the

leader has the top position in the mind of the consumer and it is this position

that must be attacked

Offensive marketing warfare strategies are a type of marketing warfare

strategy designed to obtain a specific objective, usually key customers

segments, high margin market segments, or high loyalty market segments.

Marketing Applications & Practices : Sem II

eMBA

PRINCIPLES OF OMS

• The challenger’s primary concern should be the strength of the leader’s

position, not the challengers own strength & weaknesses

• The challenger should seek a weakness in a leader’s strength, not simply

a weakness in the leader’s position

• Attack on as narrow a front as possible, avoid a broad attack

Marketing Applications & Practices : Sem II

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FLANKING MARKETING STRATEGY

A flanking attack is not a direct attack on the leader, but rather an attack in

an area where the leader has not established a strong position.

Flanking marketing warfare strategies are a type of marketing warfare

strategy designed to minimize confrontational losses.

Marketing Applications & Practices : Sem II

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PRINCIPLES OF FMS

• A flanking move is best made in an uncontested area : A product should be in a new category that does not compete directly with the leader and should be the first to target the segment.

• A flanking move should have an element of surprise : Surprise is important to prevent the leader from using it’s enormous resources to counter the move before it gain’s momentum.

• Follow-through (Pursuit) is equally as important as the attack itself : The firm should follow through and focus on solidifying its position once it is established before competitors launch competing products, Too often, management turns its attention to the products that are not performing well rather than strengthening the position of it’s winners

Marketing Applications & Practices : Sem II

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GUERRILLA MARKETING STRATEGY

Guerilla Marketing is appropriate for companies that, relative to competition,

are too small to launch offensive or flanking moves.

The idea of guerilla marketing is to direct resources into a limited area, using

the principle of force to win that area

PRINCIPLES OF GMS

Identify a segment that is small enough to defend : The scope can be limitedgeographically, demographically, by industry or by price

Marketing Applications & Practices : Sem II

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PRINCIPLES OF GMS