COMPETITIVE MARKETING

MBAFT-7603

ADITI BATHEJA

Aditi Batheja Competitive Marketing MBAFT-7603

Course at a
glance!

Aditi Batheja Competitive Marketing MBAFT-7603

Aditi Batheja Competitive Marketing MBAFT-7603
 Price Competition:
• Exists when marketers compete on the basis of price. In price competition, the
marketers develop different price strategies to beat the competition.
• They generally set a same or low price of a product than that of the competitors
to gain the market share.
• Generally, the prices are changed to cover the costs or increase the demand.
For instance, Coca-Cola and Pepsi are close competitors, thus, they often
engage in price wars.
• Market communication focuses on the price tag of the product.
• The major disadvantage of price competition is that the competitors have
flexibility to change the prices of products.
• Price competition commonly uses the demographic and Geographic
segmentation because it targets the complete market.

Aditi Batheja Competitive Marketing MBAFT-7603

COMPETITION
IN A “VUCA”
WORLD

Aditi Batheja Competitive Marketing MBAFT-7603

 Non-Price Competition
• Focuses on the factors other than the price of the product. In non-price
competition, customers cannot be easily lured by lower prices as their
preferences are focused on various factors, such as features, quality, service, and
promotion.
• Thus, the marketers focus on these factors to increase the sale of products. For
instance, customers prefer buying expensive luxury products for gaining status
in the society. The demand for these products does not shift even if their prices
increase.
• Market communication focuses on the features of the product and how it is
different. Thus, in case of non-price competition, the marketers try to promote
the product by exhibiting its distinguishing features. However, a marketer who
is competing on non-price basis cannot ignore the prices set by the competitors
as price remains a significant marketing element.
• Non price competition uses the psychographic benefit or lifestyle
segmentation to make a difference in the market.

Aditi Batheja Competitive Marketing MBAFT-7603

Aditi Batheja Competitive Marketing MBAFT-7603
 Types of Competition

Aditi Batheja Competitive Marketing MBAFT-7603

• A monopsony is an Imperfect market condition in which there is only one
buyer, the monopsonist. Like a monopoly, a monopsony also has
imperfect market conditions. ... A single buyer dominates a
monopsonized market while an individual seller controls a monopolized
market.
• The classic example of a monopsony is a company ”Coal Town”( is a
coal mining firm in a small town in West Virginia that is the only
employer of labor in that location).Here the coal company acts the sole
employer and therefore the sole purchaser of labor in the town. The
monopsony power of the coal company allows it to set wages below the
productivity of their workers.

Aditi Batheja Competitive Marketing MBAFT-7603

Participants & Functioning of markets

Aditi Batheja Competitive Marketing MBAFT-7603

Michael Porter’s 5 forces Model

Aditi Batheja Competitive Marketing MBAFT-7603

Porter's Five Forces Analysis is an

important tool for understanding the

forces that shape competition within an

industry. It is also useful for helping you

to adjust your strategy to suit your

competitive environment, and to improve

your potential profit.

Aditi Batheja Competitive Marketing MBAFT-7603

COMPETITIVE MARKETING STRATEGY

• COMPETITIVE MARKETING STRATEGY IS A LONG-TERM ACTION PLAN OF A

COMPANY WHICH IS DIRECTED TO GAIN COMPETITIVE ADVANTAGE OVER ITS
RIVALS AFTER EVALUATING THEIR STRENGTHS, WEAKNESSES,
OPPORTUNITIES AND THREATS IN THE INDUSTRY AND COMPARE IT WITH
YOUR OWN
UNDERSTANDING FUNDAMENTALS
• STRATEGIC INTENT
• VISION
• MISSION
• GOALS A GOAL IS A DESCRIPTION OF A DESTINATION AND AN OBJECTIVE IS A
MEASURE OF THE PROGRESS THAT IS NEEDED TO GET TO THE DESTINATION.
• STRATEGIES AT VARIOUS LEVELS (CORPORATE LEVEL, BUSINESS LEVEL AND
FUNCTIONAL LEVEL)
 COMPETITIVE ADVANTAGE
• WHEN A COMPANY HAS BETTER PROFITABILITY
THAN ITS COMPETITORS IN SAME INDUSTRY. CA 2 TYPES OF CA
IS BUILT 4 FACTORS
• 1. SUPERIOR EFFICIENCY
• 2. SUPERIOR QUALITY
• 3. SUPERIOR CUSTOMER RESPONSIVENESS
• 4. SUPERIOR INNOVATION
 UNDERSTANDING COMPETITORS
• KNOWING WHO YOUR COMPETITORS ARE, AND WHAT THEY ARE OFFERING, CAN HELP YOU TO MAKE YOUR
PRODUCTS, SERVICES AND MARKETING STAND OUT. IT WILL ENABLE YOU TO SET YOUR PRICES COMPETITIVELY
AND HELP YOU TO RESPOND TO RIVAL MARKETING CAMPAIGNS WITH YOUR OWN INITIATIVES.
• YOU CAN USE THIS KNOWLEDGE TO CREATE MARKETING STRATEGIES THAT TAKE ADVANTAGE OF YOUR
COMPETITORS' WEAKNESSES, AND IMPROVE YOUR OWN BUSINESS PERFORMANCE. YOU CAN ALSO ASSESS ANY
THREATS POSED BY BOTH NEW ENTRANTS TO YOUR MARKET AND CURRENT COMPETITORS. THIS KNOWLEDGE
WILL HELP YOU TO BE REALISTIC ABOUT HOW SUCCESSFUL YOU CAN BE.
• WHAT YOU NEED TO KNOW ABOUT YOUR COMPETITORS? MONITOR THE WAY YOUR COMPETITORS DO
BUSINESS. LOOK AT:

• THE PRODUCTS OR SERVICES THEY PROVIDE AND HOW THEY MARKET THEM TO CUSTOMERS
• THE PRICES THEY CHARGE
• HOW THEY DISTRIBUTE AND DELIVER
• THE DEVICES THEY EMPLOY TO ENHANCE CUSTOMER LOYALTY AND WHAT BACK-UP SERVICE THEY OFFER
• THEIR BRAND AND DESIGN VALUES
• WHETHER THEY INNOVATE - BUSINESS METHODS AS WELL AS PRODUCTS
• THEIR STAFF NUMBERS AND THE CALIBER OF STAFF THAT THEY ATTRACT
• HOW THEY USE IT - FOR EXAMPLE, IF THEY'RE TECHNOLOGY-AWARE AND OFFER A WEBSITE AND EMAIL
• WHO OWNS THE BUSINESS AND WHAT SORT OF PERSON THEY ARE
• THEIR ANNUAL REPORT - IF THEY'RE A PUBLIC COMPANY
• THEIR MEDIA ACTIVITIES - CHECK THEIR WEBSITE AS WELL AS LOCAL NEWSPAPERS, RADIO, TELEVISION AND ANY
OUTDOOR ADVERTISING
PORTER’S VALUE CHAIN ANALYSIS
VALUE CHAIN

• A VALUE CHAIN IS A SET OF ACTIVITIES THAT AN ORGANIZATION CARRIES OUT TO CREATE VALUE FOR ITS
CUSTOMERS. THE PRIMARY ACTIVITIES OF MICHAEL PORTER'S VALUE CHAIN ARE INBOUND LOGISTICS,
OPERATIONS, OUTBOUND LOGISTICS, MARKETING AND SALES, AND SERVICE. THE GOAL OF THE FIVE SETS
OF ACTIVITIES IS TO CREATE VALUE THAT EXCEEDS THE COST OF CONDUCTING THAT ACTIVITY,
THEREFORE GENERATING A HIGHER PROFIT.
• VALUE CHAIN ANALYSIS EMPHASIZES THE REAL NEEDS OF THE COMPANY. FOR EXAMPLE, A COMPANY
THAT ASSISTS AFTER THE SALE, SUCH AS FOR COPIERS OR AIR CONDITIONERS, HAS A LARGER SERVICE
ACTIVITY SET THAN A COMPANY THAT PERFORMS LITTLE FOLLOW-UP ACTION, SUCH AS FEDEX OR UPS.
• WHEN USING PORTER’S VALUE CHAIN, YOU MUST IDENTIFY WHETHER YOU ARE TRYING TO
DIFFERENTIATE OR LOWER COSTS, PRIORITIZE THE CHANGES YOU IDENTIFY DURING ANALYSIS, AND
CONSIDER HOW CHANGES WILL BENEFIT THE ENTIRE ORGANIZATION.
• THE EXAMPLES OF COMPANIES THAT USE VALUE CHAINS ARE A “WHO’S WHO” OF THE WORLD
MARKETPLACE. YOU SEE ROLLS-ROYCE, STARBUCKS, AND MCDONALDS, ALONG WITH NAMES IN EVERY
INDUSTRY, INCLUDING BANKING, FARMING, AND COMMUNICATIONS.
OUTWITTING, OUTMANOEUVRING &
OUTSMARTING THE COMPETITION
• YOU’VE HEARD THE SAYING “FIGHTING THE LAST WAR.” IT REFERS TO COMPETING
USING FAMILIAR TECHNIQUES, AGAINST COMPETITORS YOU’VE FACED BEFORE, IN
THE SAME MARKETS OR INDUSTRIES, ONLY TO DISCOVER THAT THE RULES HAVE
CHANGED.
• MODERN BUSINESS COMPETITION IS CHANGING RAPIDLY IN THIS ”VUCA” WORLD,
AND TO COMPETE EFFECTIVELY, YOU NEED TO UNDERSTAND THE SKILLS THAT ARE
REQUIRED TO WIN.
PORTER’S GENERIC STRATEGIES
ACHIEVING COST LEADERSHIP
• BASIC OBJECTIVE IS TO ENSURE THAT THE CUMULATIVE COST ACROSS THE VALUE CHAIN IS LOWER THAN OF
THEIR COMPETITORS.
üCOST LEADERSHIP IS TARGETED AT PRICE SENSITIVE CUSTOMERS.
üLOW COST IS ALWAYS RELATIVE TO OTHER FIRMS AND NEVER ABSOLUTE

• 1. ACCURATE DEMAND FORECASTING AND HIGH CAPACITY UTILIZATION IS ESSENTIAL TO REALIZE COST
ADVANTAGE
• 2. ATTAINING EOS (ECONOMIES OF SCALE) LEADS TO LOWER PER UNIT COST OF PRODUCT/SERVICE
• GUJARAT COOPERATIVE MILK MARKETING FEDERATION(GCMMF) , THE COUNTRY’S
LARGEST COOPERATIVE, PROBABLY KNOWN BETTER BY ITS BRAND NAME AMUL
OPERATES IN BRANDED ICE CREAM MARKET ON THE LOWER COST PLATFORM AND
AN EFFICIENT SUPPLY CHAIN IN PLACE FOR PROCUREMENT OF HIGH QUALITY
MILK. BESIDES THESE IT HAS DEVELOPED A COLD CHAIN OF SUPPLYING ITS
REFRIGERATED PRODUCTS THROUGH AN EFFICIENT DISTRIBUTION NETWORK.
WHEN IS THE COST LEADERSHIP USED
• 1. WHEN THE MARKET FOR THE PRODUCT OPERATE IN SUCH A WAY THAT PRICE BASED COMPETITION IS
VIGOROUS MAKING COSTS AN IMPORTANT FACTOR.

• 2. WHEN THE PRODUCT/MARKET IS STANDARDIZED AND ITS CONSUMPTION TAKES PLACE IN SUCH A
MANNER THAT DIFFERENTIATION IS SUPERFLUOUS

• 3. THE BUYER MAY BE LARGE AND POSSESS A SIGNIFICANT BARGAINING POWER TO NEGOTIATE A PRICE
REDUCTION FROM THE SUPPLY ORGANIZATION
DIFFERENCIATION STRATEGY
• WHEN THE CA OF THE FIRM LIES IN SPECIAL FEATURES INCORPORATED INTO THE PRODUCT WHICH IS
DEMANDED BY THE CUSTOMERS WHO ARE WILLING TO PAY FOR IT IS DIFFERENTIATION BUSINESS STRATEGY

• A WELL DIFFERENTIATED AND INNOVATIVE PRODUCT IS PREFERRED BY CUSTOMER FOR ITS SPECIAL FEATURES
AND ATTRIBUTES.

• PROFIT FOR THIS TYPE OF FIRM = PREMIUM CHARGED - ADDITIONAL COST INCURRED TO MAKE THAT
PRODUCT.
ACHIEVING DIFFERENTIATION
ØCREATE VALUE FOR CUSTOMERS
ØINCORPORATE NEW FEATURES AND ATTRIBUTES

ØFOR INSTANCE: HIGH QUALITY RAW MATERIALS, SUPERIOR PROCESS TECHNOLOGY,

ØRELIABLE DISTRIBUTION, BETTER AFTER SALES SUPPORT.
WHEN TO ENABLE DIFFERENTIATED
STRATEGY
• THE MARKET IS TOO LARGE TO BE CATERED BY A FEW FIRMS OFFERING A STANDARIZED PRODUCT.
• THE CUSTOMER NEEDS AND PREFERENCES ARE DIVERSIFIED TO BE SATISFIED BY A STANDARDIZED
PRODUCT.
• THE NATURE OF PRODUCT IS SUCH THAT ”BRAND LOYALTY” IS POSSIBLE TO GENERATE AND SUSTAIN.
• AMPLE SCOPE FOR CREATING SALES OF THE PRODUCTS ON THE BASIS OF DIFFERENTIATED FEATURES AND
PREMIUM PRICING.
FOCUSED DIFFERENTIATION
• IT ESSENTIALLY RELIES ON EITHER COST LEADERSHIP OR DIFFERENTIATION BUT CATER TO A NARROW
SEGMENT OF THE TOTAL MARKET.

• FOCUS STRATEGIES ARE “ NICHE” STRATEGIES.

• IN ORDER TO COVER A BROAD MARKET , COST LEADERS AND DIFFERENTIATORS LEAVE OUT A MAJOR
SEGMENT IN MARKET THAT HAS SPECIAL NEEDS
HOW TO ACHIEVE FOCUS

üCHOOSE SPECIFIC NICHES BY IDENTIFYING GAP NOT COVERED BY COST LEADERS AND
DIFFERENTIATORS.
üCREATING SUPERIOR SKILLS FOR CATERING TO SUCH NICHE.
üDEVELOPING INNOVATIVE WAYS IN MANAGING VALUE CHAIN
DIFFENCIATION FOCUS
COST FOCUS
 SYNERGY
• THE PURSUIT OF SYNERGY IS PRACTICED BY MOST BUSINESSES IN THE WORLD. THE
BOARDROOMS ARE FULL OF BRAINSTORMS ABOUT WAYS TO COLLABORATE MORE
EFFECTIVELY. CROSS-BUSINESS TEAMS ARE SET UP TO DEVELOP KEY ACCOUNT
PLANS, COORDINATE PRODUCT DEVELOPMENT, AND PROLIFERATE BEST PRACTICES.
• SYNERGY IS THE CONCEPT THAT THE VALUE AND PERFORMANCE OF TWO
COMPANIES COMBINED WILL BE GREATER THAN THE SUM OF THE SEPARATE
INDIVIDUAL PARTS. SYNERGY IS A TERM THAT IS MOST COMMONLY USED IN THE
CONTEXT OF MERGERS, ACQUISITIONS, STRATEGIC PARTNERSHIP, JOINT VENTURE,
FRANCHISE ETC. THE REASONING BEHIND STRATEGIC ALLIANCE IS GENERALLY
GIVEN IS THAT TWO SEPARATE COMPANIES TOGETHER CREATE MORE VALUE
COMPARED TO BEING ON AN INDIVIDUAL STAND.
 WHAT IS MARKETING SYNERGY
• MARKETING SYNERGY IMPLIES THAT THE MARKETING-MIX MAKES FOR OVERALL EFFECTIVENESS. FOR
EXAMPLE, BY GRABBING AN OPPORTUNITY WHICH MAKES IT POSSIBLE TO GAIN INCREASED UTILIZATION
OF EXISTING MARKETING AND DISTRIBUTION FACILITIES, IT MAY BE POSSIBLE TO ENHANCE SALES
REVENUES WITHOUT CAUSING A PROPORTIONATE INCREASE IN COSTS.

• HERO HONDA LTD WAS A JOINT VENTURE BETWEEN HERO CYCLES OF INDIA AND HONDA MOTOR OF JAPAN.
HERO CYCLE’S LONG EXPERIENCE ABOUT INDIAN ROAD CONDITIONS INCLUDING INDIAN RURAL AND
URBAN CUSTOMERS WAS WHOLLY COMBINED WITH HONDA MOTOR’S SUPERIOR TECHNOLOGICAL
CAPABILITY TO CREATE THE EXPECTED SYNERGY EFFECT FOR PRODUCING A HIGHLY FUEL EFFICIENT AND
STURDY MOTOR CYCLE TO SUIT THE EXACT REQUIREMENTS OF THE INDIAN CUSTOMERS AND MEET THE
ROUGH ROAD CONDITIONS AS EARLY AS 1985. THE PARTNERSHIP LASTED FOR 26 YEARS.
THREE DIFFERENT TYPES OF STRATEGIC
ALLIANCES
JOINT VENTURE
• JOINT VENTURE IS A CHILD COMPANY OF TWO PARENT COMPANIES. IT’S MAINTAINED BY SHARING
RESOURCES AND EQUITY WITH A BINDING AGREEMENT. WHETHER IT’S FORMED FOR A SPECIFIC PURPOSE
OR AN ONGOING STRATEGY, A JOINT VENTURE HAS A CLEAR OBJECTIVE, AND PROFITS ARE SPLIT BETWEEN
THE TWO COMPANIES.
• IN 2006,GOOGLE’S PARENT COMPANY ALPHABET ANNOUNCED A JOINT VENTURE WITH
GLAXOSMITHKLINE TO RESEARCH TREATING DISEASES WITH ELECTRICAL SIGNALS. THE JOINT VENTURE,
GALVANI BIOELECTRONICS, HAS CONTINUED TO GROW, BRINGING ON MORE PARTNERS TO BUILD
DEVICES AND FURTHER RESEARCH IN THE EMERGING FIELD OF BIOELECTRONICS.
 EQUITY STRATEGIC ALLIANCE
• AN EQUITY STRATEGIC ALLIANCE OCCURS WHEN ONE COMPANY PURCHASES EQUITY IN ANOTHER BUSINESS
(PARTIAL ACQUISITION), OR EACH BUSINESS PURCHASES EQUITY IN EACH OTHER (CROSS-EQUITY
TRANSACTIONS).
• AN EXAMPLE OF AN EQUITY STRATEGIC ALLIANCE IS TESLA’S RELATIONSHIP WITH PANASONIC. THEIR
RELATIONSHIP BEGAN WITH A $30 MILLION INVESTMENT FROM PANASONIC TO ACCELERATE BATTERY
TECHNOLOGY FOR ELECTRIC VEHICLES AND GREW TO INCLUDE BUILDING A LITHIUM-ION BATTERY PLANT IN
NEVADA.
 NON – EQUITY STRATEGIC ALLIANCE

• IN A NON-EQUITY STRATEGIC ALLIANCE, ORGANIZATIONS CREATE AN AGREEMENT TO SHARE RESOURCES

WITHOUT CREATING A SEPARATE ENTITY OR SHARING EQUITY. NON-EQUITY ALLIANCES ARE OFTEN MORE
LOOSE AND INFORMAL THAN A PARTNERSHIP INVOLVING EQUITY. THESE MAKE UP THE VAST MAJORITY OF
BUSINESS ALLIANCES.
• TAKING EQUITY-SHARING OUT OF THE EQUATION CAN BE A STRATEGIC ADVANTAGE IN RESEARCH AND
DEVELOPMENT, PRODUCTION, AND SALES AND MARKETING.
 A SUCCESSFUL STRATEGIC ALLIANCE:
• IT IS CRITICAL TO THE SUCCESS OF A CORE BUSINESS GOAL OR OBJECTIVE.
• IT IS CRITICAL TO THE DEVELOPMENT OR MAINTENANCE OF A CORE COMPETENCY OR
OTHER SOURCE OF COMPETITIVE ADVANTAGE.
• BLOCKS A COMPETITIVE THREAT.
• CREATES OR MAINTAINS STRATEGIC CHOICES FOR THE FIRM.
• IT MITIGATES A SIGNIFICANT RISK TO THE BUSINESS.

• IF THESE THINGS EXIST IN THE PARTNERSHIP, BOTH ORGANIZATIONS BENEFIT FROM A

SYMBIOTIC RELATIONSHIP THAT DRIVES THE BUSINESS FORWARD, STAVES OFF
COMPETITION AND THREATS, AND ESTABLISHES LEADERSHIP IN THE MARKETPLACE.
DISADVANTAGES OF STRATEGIC ALLIANCES
• LOSS OF CONTROL. IN AN ALLIANCE, BOTH ORGANIZATIONS MUST CEDE SOME CONTROL
OVER HOW THEIR BUSINESS IS RUN AND PERCEIVED. A STRATEGIC ALLIANCE REQUIRES
HONESTY AND TRANSPARENCY, BUT THAT TRUST ISN’T BUILT OVERNIGHT. WITHOUT
SIGNIFICANT BUY-IN FROM BOTH PARTIES, AN ALLIANCE MAY SUFFER.
• INCREASED LIABILITY. IN A JOINT VENTURE OR EQUITY STRATEGIC ALLIANCE, BOTH
COMPANIES ARE ON THE HOOK FOR THE OUTCOME. IF SOMETHING HAPPENS TO STALL
PRODUCTION OR CREATE UNHAPPY CUSTOMERS, BOTH PARTNERS ARE AT RISK FOR THE
LOSS IN REPUTATION. FOR INSTANCE, IN THE CASE OF TESLA AND PANASONIC, WHAT WAS
ORIGINALLY AN ADVANTAGEOUS RELATIONSHIP BECAME FRAUGHT WHEN BATTERIES
WEREN’T PRODUCED AND SHIPPED QUICKLY ENOUGH, CAUSING DELAYS IN TESLA VEHICLE
PRODUCTION AND SHIPMENTS. REPORTS NOW SAY THAT TESLA IS PUTTING ITS CAPITAL
BEHIND BUILDING ITS OWN BATTERY TECHNOLOGY TO REDUCE DEPENDENCE ON
PANASONIC.
HENRY MINTZBERG MODEL
Unit 3
TOOLS FOR STRATEGIC ANALYSIS
 Why strategic tools?

u The crucial role in strategic decision-making process has strategic analysis. It often
brings the important information about evaluation and development of environment
inside and outside the company and reveals possible opportunities and threats that need to
be consider in strategic decision-making.
u What is the BCG Matrix?
u The Boston Consulting group’s product portfolio
matrix (BCG matrix) is designed to help with long-
term strategic planning, to help a business
consider growth opportunities by reviewing its
portfolio of products to decide where to invest, to
discontinue or develop products. It's also known as
the Growth/Share matrix
u 1. Dogs: These are products with low growth or market share.

u 2. Question marks or Problem Child: Products in high growth markets with low market share.

u 3. Stars: Products in high growth markets with high market share.

u 4. Cash cows: Products in low growth markets with high market share
GE MATRIX
GE Matrix (relevance)

u No business has an infinite amount of money hence the matrix helps to define
u 1.Which SBUs should receive more or less investment
u 2.Which new products or SBUs are needed in the portfolio
u 3. Which product or SBUs should be divested?
 What is Industry Attractiveness?

uFactors you could choose to base this on include:

u1. Market size
u2. Market Profitability
u3. Expected market growth rate
u4. Differentiation ability
u5. Competition level
“The bigger the value is the more attractive the market is”
u You need to decide which factors you will use as a determining factor as these will be applied to ALL business units.

u Step 1: Decide on determining factors

u Step 2: Give each factor a weighting number based on its magnitude

u Step 3: Rate each business unit against each factor on a scale. For example 1 – 5 where 1 is extremely attractive and 5 is

extremely unattractive.

u Step 4: Give each business unit a weighted rating on each factor by multiplying its rating by the weight for that factor.

u Step 5: Total up all the weighted ratings for each business unit.
u Now you have the measurements you can plot your business units on the GE matrix and depending on where they are plotted
will determine your strategy from one of the following:

u Grow/Invest:

u Units that land in this section of the grid generally have high market share and promise high returns in the future so should be
invested in.

u Hold/Selectivity:

u Units that land in this section of the grid can be ambiguous and should only be invested in if there is money left over after
investing in the profitable units.
u Harvest/Divest:

u Poor performing units in an unattractive industry end up in this section of the grid. This should only be invested in if they can make more money than is put into

them. Otherwise they should be liquidated.

u As you can see this model is very useful for analyzing your business units against multiple factors rather than the 2 dimensional approach of the BCG. In doing so

you will have a starting point in which to build your strategy for allocating resources and expanding products.

u Harvest is a strategy involving the reduction of spending on a product so as to reduce operating costs and mainly involves outdated products

u A divestiture is an important means of creating value for companies in the mergers, acquisitions, and the consolidation process. ... Reasons why companies

divest part of their business include bankruptcy, restructuring, to raise cash, or reduce debt.
KAPLAN & NORTAN’S Balanced Score card
KEY FEATURES OF BSC
Warfare Strategy Framework

u Marketing warfare strategies represent a type of strategy, used

in commerce and marketing, that tries to draw parallels between business and warfare, and
then applies the principles of military strategy to business situations, with competing
firms.

u The first major proponents of marketing warfare theories was Philip Kotler.
 Cirque de Soleil

u Cirque de Soleil, arguably one of the most famous examples of blue ocean strategy in action. Formed in
Canada in the early 1980s, the company has since gone on to entertain 155 million people in over 300 cities.
How? Cirque du Soleil reinvented the circus industry by pursuing differentiation.

u Doing away with live animal acts and the introduction of live music and a storyline, inspired by the world
of theatre, and an emphasis on human physical skill helped Cirque du Soleil to create new elements that
had never before been seen in the world of the circus.

u The result? Cirque du Soleil created a new market space. Their new audience of adults and corporate
clients (rather than the traditional audience of families) is also willing to pay higher prices to watch this
extraordinary spectacle.
 UNIT 4
Growth Strategies
“Competitive strategies for Market leader, Challenger &
Follower”
vThe competitive strategies adopted by the company depends largely on its position
in the Market.
v It design its strategies based on its position and objectives.
vThe different position or roles the companies can have are:-
Ø Market leader
Ø Challenger
Ø Follower
Ø Nicher
Market Leader
It typically has the largest market share and, by virtue of its pricing,
advertising intensity, distribution coverage, technological advance
and rate of new product introductions, it determines the nature, pace
and bases of competition.
It is this dominance that typically provides the benchmark for other
companies in the industry.
Market Challenger
Firms with second or lower ranking in the Industry. They may
choose to adopt an aggressive stance and attack other firms, including
the market leader, in an attempt to gain Market share and perhaps
dominance (market challengers),
Market Follower : A firm that imitates the market leaders but do not
upset the balance of competitive power in the Industry. They prefer to
avoid attack and reap the benefits by imitating the Market leader.
Market Nichers
Virtually every industry has a series of small firms that survive,
and indeed often prosper, by choosing to specialize in parts of
the market that are too limited in size and have potential for
growth.
By concentrating their efforts in this way, market Nichers are
able to build up specialist market knowledge and avoid
expensive head-on fights with larger companies.
“Protecting the Market share - Defensive strategy”
At the same time as trying to expand the total market, the market leader should
not lose sight of the need to defend its market share. It has long been
recognized that leaders represent a convenient target since, because of their
size, they are often vulnerable to attack

The aim of defensive marketing is to reduce the probability of attack, divert

attacks to less threatened areas and lessen their intensity.
2. Counteroffensive Defense/Retaliation is a business strategy adopted by a market leader when
attacked by another company.. This may involve significantly lowering the prices of the product or aggressive
marketing communications or flooding the market with the products. A classic example is launch of Lexus by
Toyota to challenge Mercedes’ challenge.

3. MOBILE DEFENSE: Diversify/enter broader markets. Leader stretches its domain over new territories,
market broadening and market diversification. Toyota is able to target such a large market because they have
something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live
in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that
are interested in saving the environment, along with the standard cars for general, everyday use. Additionally,
Toyota provides vehicles for all price ranges.
4. RETREAT-The defender market may withdraw to a more protected segment of the market and meanwhile try
to determine how launching of a superiorly innovated product might make a recovery of lost market share.

5. PRE-EMPTIVE DEFENSE: Detect potential attacks and attack the enemies first. Companies after having
identified a possible threat, takes action ahead of competitors. Locking in markets. Launch of Healthy Whole-
wheat Noodles before any other competitors.(2015)
Competitive Strategies for Challengers

The market challengers’ strategic objective is to gain market share and

to become the leader eventually
How?
1. By attacking the market leader
2. By attacking other firms of the same size
3. By attacking smaller firms.
1.Frontal Attack/Frontal assault
In a pure frontal attack, the attacker matches its opponent’s product, advertising, price and distribution.(attacking

strengths)The side with greater resources will win the market. Luanching of Patanjali healthy noodles(2017) to attack
Maggi wholewheat noodles(Maggi’s strengths)

2.Flank Attack/Flanking Maneuver

Attack the enemy(market leader) at its weak points or blind spots . As example we can say that while the designs of Toyota
are ordinary, GM motors is providing stylish & attractive design vehicles.
3.Bypass Attack/leapfrog attack
The tactic attempts to cut the market out from under the established defender by offering a new type of product
that makes the competition Unnecessary.

4.Encirclement Attack
Encirclement attack
This form of market challenger strategy is used when the competitor attacks another on the basis of strengths as
well as weaknesses and does not leave any stone unturned to overthrow the competition. The e-commerce
industry is the best example of an encirclement attack, wherein the companies are ready to do anything for the
huge turnovers and are even selling their products at negative margins.
5. Guerilla warfare
A Guerrilla warfare is the marketing strategy adopted by the challenger firm intended to launch the
intermittent attacks with an intention to harass or demoralize the competitor. a firm or business unit may
choose to hit and run.
Use of unconventional tactics to create buzz in the market.
In marketing, guerrilla techniques mostly play on the element of surprise. It sets out to
create highly unconventional campaigns that catch people unexpectedly in the course of
their day-to-day routines.

What marketers really enjoy about guerrilla marketing is its fairly low-cost nature. The
real investment here is a creative, intellectual one -- its implementation, however,
doesn’t have to be expensive.
3. Market follower Strategy
As an alternative to challenging for leadership, many companies
are content to adopt a far less proactive posture simply by following
what others do. There are 3 types of following:-

1. Following closely , with as similar a marketing mix and market

segmentation combination as possible
2. Following at a distance , so that, although there are obvious
similarities, there are also areas of differentiation between the two
3. Following selectively , both in product and market terms, so
that the likelihood of direct competition is minimized
Types of following:-

1. Counterfeiter: Duplicates the leader product and packages and sells it on

the black market or through disreputable sellers.( cheap product, MAC
cosmetics)
2. Cloner/emulator : Emulates the leader’s products, name, and packaging
with slight variations.(change of spellings)
3. Imitator-The difference might be that the new product is made from poor
material or that it does not have the service or promise that your brand can
offer. Nonetheless, there is a huge market for imitators where people want to
buy products at lower cost as they cant afford the higher one.
4. Adapter: The adapter takes leader’s product and adapts or improve them.
The adapter may choose to sell in different market but often it grows to a
future challenge. Adapter is white collared market follower strategy.
CLONER/EMULATOR
Market- Nicher strategies

Smaller firms can avoid larger firms by targeting smaller markets or niches that are of
little or no interest to the larger firms
Nichers must create niches, expand the niches and protect them

What is the major risk faced by nichers? Market niche may be attacked by larger firms
once they notice the niches are successful

“Develop multiple niches. By developing strength in more than one niche the company
increases its chances for survival”.
 Cirque de Soleil

• Cirque de Soleil, arguably one of the most famous examples of blue ocean strategy
in action. Formed in Canada in the early 1980s, the company has since gone on to
entertain 155 million people in over 300 cities. How? Cirque du Soleil reinvented
the circus industry by pursuing differentiation.
• Doing away with live animal acts enabled the company and the introduction of live
music and a storyline, inspired by the world of theatre, and an emphasis on human
physical skill helped Cirque du Soleil to create new elements that had never before
been seen in the world of the circus.
• The result? Cirque du Soleil created a new market space. Their new audience of
adults and corporate clients (rather than the traditional audience of families) is also
willing to pay higher prices to watch this extraordinary spectacle.
1. Emerging Markets
The big scary chasm
 • Strategies to deter market share

to enter the industry. The

goal is to signal the potential that their entry will be met with price cuts.
• Maintaining excess capacity – Maintaining a physical capability to produce
more product than customers currently demands.
• Market Penetration- involves heavy
advertising ex- Intel has aggressively
advertised “Intel inside” In a mature
industry advertising aims to influence
customer brand choice.
• Product Development –New and better
product ex- Tide has come up with 50
changes in formulation during the past 40
years to improve its performance.
Refining and improving the product is
crucial in mature markets.
• Market Development-finding new
segments for a company’s products.
company pursuing this strategy wants to
capitalize on its brand name to enter new
markets.
• Diversification/Product proliferation- use
for both manage the rivalry and deter the
potential entry. It is non-priced strategy
based on development of new products.
Hypercompetition
UNIT 5

ADITI BATHEJA
 What are
Marketing Communications?

Marketing communications are the means

by which firms attempt to inform, persuade,
and remind consumers, directly or
indirectly, about the products and brands
they sell.
Elements in the Communications Process
Field of Experience

Sender’s Receiver’s
field field
9 ELEMENTS OF COMMUNICATION

1. Sender
the source of information or message

2. Encoding
the process of converting the message into words, actions, or other forms that the speaker understands.

3.Message
the information, ideas, or thoughts conveyed by the speaker in words or in actions

4.Media-the medium or the means, such as personal or non-personal, verbal or non-verbal, in which
the encoded message is conveyed

5.Receiver
the recipient of the message, or someone who decodes the message

6.Decoding
the process of interpreting the encoded message of the speaker by the receiver

7. Response-The reactions that receiver has after being exposed to the message

8. Feedback
the reactions, responses, or information provided by the receiver

9. Barrier-the factors that affect the flow of communication

BARRIERS TO COMMUNICATION
Selective attention: Of the many
stimuli that people are exposed to,
people are attracted to those stimuli
that they consider to be relevant in
terms of a match with their needs. They
are attentive to those stimuli that match
their needs and avoid those that are
irrelevant.
Selective Distortion: For example, one
study found that consumers were equally
split in their preference for Diet Coke
versus Diet Pepsi when tasting both on a
blind basis. Selective distortion can
work to the advantage of marketers with
strong brands when
consumers distort neutral or ambiguous
brand information to make it more
positive.
Selective retention, in relating to the
mind, is the process whereby people more
accurately remember messages that are
closer to their interests, values and
beliefs, than those that are in contrast
with their values and beliefs, selecting
what to keep in the memory, narrowing
the information flow.
8 Modes of Marketing Promotion Tools

• Managing Mass Communications

• Advertising
• Sales promotion
• Events and experiences
• Public relations and publicity

• Managing Personal Communications

• Direct marketing
• Interactive marketing
• Word-of-mouth marketing
• Personal selling
 Communication Platforms
Advertising Sales Promotion
• Print and broadcast ads • Contests, games,
• Packaging inserts sweepstakes
• Motion pictures • Premiums
• Brochures and booklets • Samples
• Posters • Trade shows, exhibits
• Billboards • Coupons
• POP displays • Rebates
• Logos • Continuity programs
Sales Promotion-
Premiums-Another form of sales
promotion involving free merchandise is
premium or “give-away” items.
Premiums differ from samples and free
product in that these often do not consist
of the actual product, though there is
often some connection. For example, a
cellphone manufacturer may offer access
to free downloadable ringtones for those
purchasing a cellphone.
 Benefits of Packaging Inserts
• Packaging inserts are usually unexpected and can build goodwill
with new customers.
• Customers don’t have to pay anything extra for a packaging
insert. Instead, a packaging insert is something that a brand will
use to spread awareness about campaigns and promotions and
provide added value. Overall, package inserts are a cost-effective
and versatile gesture for building a relationship with your
customers.
• Inserts can be highly targeted: The recipient is already a
customer, and you know what they bought. You can tailor your
package insert to the exact person receiving it.
• Package inserts are perfect for cross-selling
 Packaging Inserts

You already know what the customer

likes based on what they've already
ordered so why not through in a free
sample of a product you think they
may like.
 Communication Platforms
Events/ Experiences Public Relations
• Sports • Press kits
• Speeches
• Entertainment
• Seminars
• Festivals • Annual reports
• Arts • Charitable donations
• Causes • Publications
• Factory tours • Community relations
• Company museums • Lobbying
• Identity media
• Street activities
• Company magazine
As the owner of a boutique PR agency, I constantly have to
explain that we don’t buy advertisements, we don’t order
journalists to write stories for our clients, we don’t produce cute
radio jingles, and we don’t hand out free samples at the
mall. Yes, we try to promote our clients, our products or
ourselves. But unlike advertisers, we persuade our external or
internal audiences via unpaid or earned methods. Whether it’s
the traditional media, social media or speaking engagements, we
communicate with our audiences through trusted, not paid,
sources.
There’s an old saying: “Advertising is what you
pay for, publicity is what you pray for.”
Advertising is paid media, public relations is earned media. This
means you convince reporters or editors to write a positive story
about you or your client, your candidate, brand or issue. It appears in
the editorial section of the magazine, newspaper, TV śtation or
website, rather than the “paid media” section where advertising
messages appear. So your story has more credibility because it was
independently verified by a trusted third party, rather than purchased
 Personal Promotion Platforms
Personal Selling Direct Marketing
• Sales presentations • Catalogs
• Sales meetings • Mailings
• Telemarketing
• Incentive programs
• Electronic shopping
• Samples
• TV shopping
• Fax mail
• E-mail
• Voice mail
• Blogs
• Websites
 Personal Selling Process
• Personal selling. Personal selling has three distinctive qualities: (1) personal confrontation (it involves an
immediate and interactive relationship between two or more persons that can be effectively customized );

• (2) cultivation (it permits all kinds of relationships to spring up, ranging from a matter-of-fact selling
relationship to a deep personal friendship); and

• (3) response (it makes the buyer feel under some obligation for having listened to the sales talk).

• PERSONAL SELLING PROCESS:

• Step One
Prospecting - the first step in the personal selling process
The process of looking for and checking leads is called prospecting or determining which firms or individuals
could become customers.
Up to 20% of a firm's customer base can be lost for reasons such as transfer, death, retirement, takeovers,
dissatisfaction with the company and competition. A steadily growing list of qualified prospects is important for
reaching the sales targets.
Qualifying a prospect: A lead is a name on a list. It only becomes a prospect if it is determined that the person or
company can benefit from the service or product offered. A qualified prospect has a need, can benefit from the
product and has the authority to make the decision.
• Step Two
The Pre-approach
This stage involves the collecting of as much relevant information as possible prior to the sales
presentation. The pre-approach investigation is carried out on new customers but also on regular
customers. Systematic collection of information requires a decision about applicability, usefulness and
how to organise the information for easy access and effective use.
• Step Three
•
The Approach
The salesperson should always focus on the benefits for the customer. This is done by using the
product's features and advantages. This is known as the FAB technique (Features, Advantages and
Benefits).
* Features : Refers to the physical characteristics such as size, taste etc.
* Advantages : Refers to the performance provided by the physical characteristics eg it does not stain.
* Benefits : Refers to the benefits for the prospect. Eg. Saves you 20% on replacement cost.

• Step Four
The Sales Presentation
After the prospects interest has been grasped, the sales presentation is delivered. This involves a
"persuasive vocal and visual explanation of a business proposition". It should be done in a relaxed
atmosphere to encourage the prospect to share information in order to establish requirements. Some
small talk may be necessary to reduce tension but the purpose always remains business
• Step Five
Handling Objections
Objections are often indications of interest by the prospect and should not be
viewed with misgiving by salespeople. The prospect is in fact requesting
additional information to help him to justify a decision to buy. The prospect
may not be fully convinced and the issues raised are thus very important. It
also assists the salesperson to establish exactly what is on the prospect's mind.
• Step Six
Closing the Sale
This is the last part of the presentation. Many salespeople fear the closing of a
sale. Closing a sale is only the confirmation of an understanding. Fear will
disappear if the salesperson truly believes that the prospect will enjoy benefits
after the purchase of the product.
• Step Seven
The Follow-up
The sale does not complete the selling process. Follow-up activities are very
important and are useful for the establishment of long-term business
relationships. It is important to check if the products have been received in
good condition, to establish the customer is satisfied etc.
 Direct marketing.

• All forms of direct marketing—direct mail,

telemarketing, Internet marketing—share four
distinctive characteristics:

• They are (1) nonpublic (the message is normally

addressed to a specific person);
• (2) customized (the message can be prepared to appeal
to the addressed individual);
• (3) up-to-date (a message can be prepared very
quickly);
• (4) interactive (the message can be changed depending
on the person’s response).
 Word-of-Mouth Marketing

• Person-to-person
• Chat rooms
• Blogs
 An Ideal Ad Campaign
• The right consumer is exposed to the
message at the right time and place
• The ad causes consumer to pay attention
• The ad reflects consumer’s level of
understanding and behaviors with product
• The ad correctly positions brand in terms of
points-of-difference and points-of-parity
• The ad motivates consumers to consider
purchase of the brand
• The ad creates strong brand associations
Communications Objectives

Inform Persuade

Remind
REMINDER ADS- For
maintaining the trust and image
for a well established brand. such
ads don’t focus on product features
or benefits
(Examples shown in the lecture)
 Creative Strategy
• Informational and transformational appeals
• Positive and negative appeals
• Fear
• Guilt
• Shame
• Humor
• Love
• Pride
• Joy
Creative Copies for good
impressions
 Message Source

Celebrity Characteristics
• Expertise
• Trustworthiness
• Likeability
Issues Facing Global Adaptations

• Is the product restricted in some

countries?
• Are there restrictions on advertising the
product to a specific target market?
• Can comparative ads be used?
• Can the same advertising be used in all
country markets?
 Select Communication Channels

• Personal channels
• Nonpersonal channels
• Integration of channels
 Stimulating
Personal Influence Channels
• Identify influential individuals and devote
extra attention to them
• Create opinion leaders
• Use community influentials in testimonial
advertising
• Develop advertising with high “conversation
value”
• Develop WOM referral channels
• Establish an electronic forum
• Use viral marketing
 Nonpersonal
Communication Channels

Media

Sales Promotion

Events and Experiences

Public Relations
 Steps in Developing Effective
Marketing Communications
Identify target audience
Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Measure results/ manage IMC
Establish the Budget
Affordable

Percentage-of-Sales

Competitive Parity-as per competition)

Objective-and-Task-
Company allocates a certain amount of money to its
marketing budget based on specific objectives
 Factors in Setting
Communications Mix
• Type of product market
• Buyer readiness stage
• Product life cycle stage
Figure 17.5 Cost Effectiveness by
Buyer Readiness Stage
 MARKETING CHANNELS AND
CHANNEL DYNAMICS
• The Significance of Marketing
Channels
• The primary purpose of any channel of
distribution is to bridge the gap
between the producer of a product and
its user.
• The channel is composed of different
institutions that facilitate the transaction
and the physical exchange.
• A channel performs three important
functions: transactional, logistical, and
facilitating.
• Service marketers also face the problem
of delivering their product in the form and
at the place and time their customer
demands.
 Types of Marketing Channels

• There are basically 4 types of

marketing channels: direct selling;
selling through intermediaries; dual
distribution; and reverse channels.
 Key Points

• Direct selling is the marketing and selling of products

directly to consumers away from a fixed retail
location.
• An intermediary (or go-between) is a third party that
offers intermediation services between two trading
parties.
• Dual distribution describes a wide variety of
marketing arrangements by which the manufacturer
or wholesalers use more than one channel
simultaneously to reach the end user.
• A reverse channel may go from consumer to
intermediary to beneficiary.
• Selling Through Intermediaries
• A marketing channel where intermediaries such as wholesalers and
retailers are utilized to make a product available to the customer is called
an indirect channel.
• The most indirect channel you can use (Producer/manufacturer –> agent
–> wholesaler –> retailer –> consumer) is used when there are many
small manufacturers and many small retailers and an agent is used to
help coordinate a large supply of the product.

• Dual Distribution
• Dual distribution describes a wide variety of marketing arrangements by
which the manufacturer or wholesalers uses more than one channel
simultaneously to reach the end user. They may sell directly to the end
users as well as sell to other companies for resale. Using two or more
channels to attract the same target market can sometimes lead to
channel conflict.
• An example of dual distribution is business format franchising, where the
franchisors, license the operation of some of its units to franchisees while
simultaneously owning and operating some units themselves.
 REVERSE CHANNELS
• If you’ve read about the other three channels, you would
have noticed that they have one thing in common — the
flow. Each one flows from producer to intermediary (if
there is one) to consumer.
• Technology, however, has made another flow possible.
This one goes in the reverse direction and may go —
from consumer to intermediary to beneficiary. Think of
making money from the resale of a product or recycling.
• There is another distinction between reverse channels
and the more traditional ones — the introduction of a
beneficiary. In a reverse flow, you won’t find a producer.
You’ll only find a User or a Beneficiary.
BRAND ASSOCIATIONS
Aditi Batheja
Associations
• Consumers might associate a brand with a particular attribute or
feature, usage situation, product spokesperson, or logo. These
associations are typically viewed as being organized in a network in a
manner consistent with associative network models of memory (
Anderson 1983). This association network constitutes a brand’s
image, identifies the brand’s uniqueness and value to consumers, and
suggests ways that the brand’s equity can be leveraged in the
marketplace (Aaker 1996).
Brand Associations may not necessarily be ‘benefits’ derived, but
are images and symbols associated with a brand. For example- The
Nike Swoosh, Nokia sound, Film Stars as with “Lux”, signature
tune Ting-ting-ta-ding with Britannia, etc. Associations are not
“reasons-to-buy” but provide acquaintance and differentiation that’s
not replicable. It is relating perceived qualities of a brand to a
known entity. For instance- Hyatt Hotel is associated with luxury
and comfort; BMW is associated with sophistication, fun driving,
and superior engineering. Most popular brand associations are with
the owners of brand, such as - Bill Gates and Microsoft, Reliance
and Dhirubhai Ambani.
• Brand association is anything which is deep seated in customer’s mind about
the brand. Brand should be associated with something positive so that the
customers relate your brand to being positive. Brand associations are the attributes of
brand which come into consumers mind when the brand is talked about. It is related
with the implicit and explicit meanings which a consumer relates/associates with a
specific brand name. Brand association can also be defined as the degree to which a
specific product/service is recognized within it’s product/service class/category.
While choosing a brand name, it is essential that the name chosen should reinforce
an important attribute or benefit association that forms it’s product positioning. For
instance - Power book.
• Brand associations are formed on the following basis:
• Customers contact with the organization and it’s employees;
• Advertisements;
• Word of mouth publicity;
• Price at which the brand is sold;
• Celebrity/big entity association;
• Quality of the product;
• Products and schemes offered by competitors;
• Product class/category to which the brand belongs;
• POP ( Point of purchase) displays; etc
• Positive brand associations are developed if the product which the brand depicts is
durable, marketable and desirable. The customers must be persuaded that the
brand possess the features and attributes satisfying their needs. This will lead to
customers having a positive impression about the product. Positive brand
association helps an organization to gain goodwill, and obstructs the competitor’s
entry into the market.
 Netflix (Word of mouth)
• Netflix arguably has a head-start on word-of-mouth marketing. Its core product (original programming like House

of Cards) offers an enjoyable and original experience that people naturally want to talk about. However, Netflix

boosts its CX by tapping into user data and sentiment – and delivering exactly what people want on the back of it.

• For example, recognizing the phenomenon of ‘binge watching’, Netflix strategically released all ten episodes of

Making a Murderer in one go. What’s more, it released it on 19th December in the US – a time when viewers would

be well primed to hibernate during the holidays.

• Elsewhere, Netflix’s social activity is also designed to increase awareness about new original programming. It often

does this through user generated content, sharing viewer’s excitement about their favourite upcoming shows in

order to prompt interest in others. This taps into the notion that people trust their peers more than big brands,

especially when it comes to what to watch.

 Slack
• According to CNBC , 58% of small business owners identify word-of-mouth marketing as the most effective way to communicate with customers, stemming from both a lack of
research time and a desire for quality products.

• Now with over 1.25m paid users – Slack has certainly capitalized on this desire. The workplace messenger uses a ‘freemium’ model, meaning an unlimited number of people can use
it for free before deciding to pay for the upgraded package. This is itself relies on word of mouth, with small teams advocating the brand and pushing the wider business to invest in
its service.

• This also means that the key to word-of-mouth is a great customer experience. Slack is said to have about four times as many support staff than sales staff, meaning that it is laser-
focused on delivering exactly what the customer needs – both pre-and post-purchase.

• Slack also uses online content to help foster loyalty, mainly through its Medium channel. Here it keeps customers in the know about product updates, as well as communicates what
is going on within the company itself in terms of culture and progression. Its Medium is said to help the brand generate an extra 70,000 visitors to its main website each month.
• Brand evokes the responses. There are many people who love their
Apple iPod or love their car etc. There are certain feelings that come to
your mind when you think about your favorite brands. People expect
that these brands should demonstrate brand promises every time
whenever they are, encountered. Inconsistencies in the performance of
services can lead to damage in further relations. This can cause a
customer to select some other brand.
• Brand promise is what you say to the customer and what is to be
delivered. If you are not able to meet the expectations of the customer,
your business will either flounder or die. If you are not able to deliver
the brand promise you will not be able to meet the expectations that
have been created in the customers mind.
• There are TWO major mistakes that the business leaders make while executing and developing
the brand promise:
• The first mistake is when you refuse to recognize the customer expectations that are created in
customers mind before it comes in contact with that particular brand. The customers are very
easily able to realize your brand promise by the business you are dealing with. For example, if you
have a gourmet restaurant then the customers will have a image in their mind that it will different
from the local restaurant. This is one of the major reason, why one should work for every smallest
detail. For example, the image of a gourmet restaurant does not include plastic menus or paper
placemats.
• The second major mistake is to implement a system which gives a negative experience to the
customer. Business leaders work on creating efficient results for saving time and money. Human
beings are self-centered creatures with a thought in their mind to save money and time for us. For
example, a customers asks do you accept credit card? Do you accept all credit cards or only
master card and visa? If you don’t accept these cards, does it make any difference in the cost? Its
just that you are losing sales. Then what are the other services you are giving to the customer in
place which is the attraction for the customers. Any small inconvenience which will force the
customer to say that “you are not completely service oriented” and encourages the customer to
some other brand.
C-D Brand mapping strategy
C stands for centrality & D stands for
Distinctiveness

• https://hbr.org/2015/06/a-better-way-to-map-brand-strategy