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Strategic Marketing
Strategic Marketing
Strategic Marketing
Market:- A market is a place where two parties can gather to facilitate the exchange of
goods and services.
2:Definition of Marketing?
Marketing:- Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.
4:Bases Of Marketing:-
. These bases range from age, gender, etc. to psychographic factors like attitude, interest, values, etc.
“Creation Of Demand”
Demand creation is commonly utilized for new products and services, where the demand has
not been proven or tested yet. In short, marketers want to create and study the demand for a
certain product or service targeted towards specific consumers.
“Demand creation is the process of increasing the demand for a product or
service using marketing techniques.”
People create demand by offering you benefits/bundle of benefits , attached with the product or
services or ideas P/S/I.
P: Tangible/Physical form
I: Same as above
N
Non Traditional flow of market:-
Non-traditional marketing is any unconventional, strategic marketing program, activity or tactic
that uses uncommon methods to reach a target audience in a new way. Because marketing is
constantly changing, the tactics that are considered "non-traditional" will continue to evolve over
time.
Producers Market:-
Producers buy goods and services and transform them into a sellable product, which they sell to
their customers for the purpose of making a profit. Examples of producers are farmers,
manufacturers and construction companies.
Intermediated Market:-
A situation in which one or more financial institutions stand between counterparties in a
transaction. For example, in the sale of a house, a bank usually intermediates the market by
providing a mortgage to the homebuyer.
Competitive Market:-
A numerous producers that compete with one another in hopes to provide the goods and services
we as consumers,want and need.
Product Services/Idea
4: Can claim ownership of product. 4:Can’t claim ownership of services and ideas.
De-Marketing:-
“The use of advertising to decrease demand for a product that is in short supply.
When demand exceeds supply.
Marketing Management:
"Marketing management is 'the art and science of choosing target markets and
getting, keeping, and growing customers through creating, delivering, and communicating superior
customer value' (Kotler and Keller, 2008: 5)."
Definition:-
Marketing is the process used to determine what products or services may be of
interest to customers and the strategy to use in sales, communications and business development
(Kotler et al. 1996).
Organizational goals.
FD
HD
ID
GD
FR: Financial Resources FD:Financial Department ID:Informational Department
Tools Of Marketing:
TOOL:Equipment/Method/Technique
4:Publicity:-Co/Org/Personal promotion
FB : Financial Benefit
SB:Structural Benefit
Domain/Area/Scope/Dimension…..?
“Is marketing an art , science or both…??”
Art Science
1:Un-Proven Phenomenas 1:Proven Concepts
2:Un-proven ideas 2:Proven Theories
3:Un-proven concepts 3:Proven Principles
4:Irrational (doesn’t make sense) 4:Proven Laws
5:Cannot be calculated 5:Rational (They make sense)
6:Hypothetical theory 6:Can be calculated
7:Un-proven Assumptions 7:Grounded theory
21st Century of Marketing:-
A new paradign shift.
“ Dealing with pressure from globalization, acquiring and keeping a strong employee
workforce and effectively using social media and technology are three challenges that
strategic managers face in the 21st century.”
Globalization:-
Globalization has had an effect on businesses as smaller local stores have to compete
with larger chains that have the means to charge lower prices. It creates a larger customer
base, so companies have to take new target markets into account .
Social Media:-
Customers can now be reached through social media websites, and technology
resulted in new ways to manage supply chains.
E—Marketing
E---Advertising
E---Publicity
E---Selling
E---Buying
E---Purchases
E---Management
E---Taxation
“All changes occur due to technological advancement.”
Fast face of technology.
Rapid Globalization.
Access of technology by the Org/Co to reach global market/customer.
Use of technology by customer to reach global markets.
Fierce/strong competition among Co/Org to achieve their Organizational goals.
More and growing concerns regarding ethical and social issues in marketing.
5 Competing/Philosophies of Marketing:-
The Production Concept:- Consumer will favour those P/S/I in the market which are
radily available in market in abundance(in bulk, large quantity).
Example:- The local mobile handset producing organizations produce them at a lower
cost than the branded companies. Thus, consumers in these countries would buy the
handsets produced locally rather than the branded ones.
The Product Concept:-Consumer will favour those P/S/I in the market in which
consumers are given different choices among different P/S/I in the market.
Example:- Two organizations which stand separate from the crowd when we discuss
the product concept are Apple and Google. Both of these organizations have strived hard
on their products and offer rich, ground-breaking as well as different application products
and individuals are passionate about these brands.
The Selling concept:- Consumer will favour those P/S/I in the market in which consumers
are informed about the difference among different P/S/I in the market and the benefits of P/S/I
comes after using the P/S/I.
Example: This concept lives up to expectations under poor suppositions that if consumers are
coaxed into purchasing a product then they will fundamentally like it. Regardless of the fact that
they dislike it, they’ll overlook their displeasure over a period of time and purchase the product
later on.
Cost-Value Relationship:-
Relationship marketing is a method of building a customer’s trust and loyalty with a brand,
resulting in ongoing sales that increase their lifetime value.
Cost: Cost is the amount of inputs incurred in producing a product .
Value: Value is what goods or services pay you.
Cost=Seller
Value = Buyer
Worth of a P/S/I
C≅V (Expensive)
Example:
This is a great example of relationship marketing as Lay’s gave its customers massive creative
control of its product. This created a deep feeling of ownership among buyers, which resulted in
deep loyalty to the brand. Not only did buyers choose Lay’s because of the flavor, but they also
chose it because of the investment the brand put in them as consumers.
2nd Example:-
P1 = 1000Rs (1yr guarantee)
P2 =700—800Rs
SC Satisfied Customer
SC
HSC LSC LSC Least Satisfied Customer
1. PV ≅ AV ( HSC)
2. PV ≅AV (Satisfied Customer)
3. PV ≅AV (Least Satisfied Customer)
PV≅AV
HDC Highly dissatisfied
Dissatisfied Customer Customer
DC Dissatisfied Customer
DC LDC LDC Least Dissatisfied Customer
HDC
1. PV ≅ AV (HDC)
2. PV ≅ AV (DC)\
3. PV ≅ AV (LDC)
Five level of Purchases?
1. Problem/Need Recognition
2. Information Search
3. Evaluation of Alternatives
4. Purchase Decision
5. Post-Purchase Behavior
Loyal Customer:-
A customer who is highly satisfied , repeatedly with the company/organization/brand/PSI over
again and again.
“Customers exhibit customer loyalty when they consistently purchase a certain product or
brand over an extended period of time.”
Direct Indirect
Competitors Competitors
S-----Strength----Advantage/Edge
W---Weakness-----Shortcoming
O---Opportunities----Gap between demand and supply D—S
T---Threats------Repeatition of your weakness
A study undertaken by an organization to identify its internal strengths
and weaknesses, as well as its external opportunities and threats.
1. Strengths and weaknesses are internal to your company—things that you
have some control over and can change. Examples include who is on your
team, your patents and intellectual property, and your location.
2. Opportunities and threats are external—things that are going on outside your
company, in the larger market. You can take advantage of opportunities and
protect against threats, but you can’t change them. Examples include
competitors, prices of raw materials, and customer shopping trends.