Program: MBA- II Semester- First Year

MBA 201: Marketing Strategies

(Jan – Jun 2024)

Dr. Preeti Singh

Professor –Department of Management
preeti.singh@itmgoi.in

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Outlines

Prerequisite

Student Effective Learning Outcomes (SELO)

Marketing Strategies

Assignment

Reading Material

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 Prerequisites
• The students should come prepared with provided videos
and subject matter on LMS (Tattva).

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Marketing Management 201
 Student Effective Learning Outcomes (SELO)
After this session students will be able to
1. How to manage Marketing Strategies
2. To understand the major trends and forces that are changing the
marketing landscape in this age of relationships

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Marketing Management 201
Market Marketing
Analysis Planning
Product Price
Segmentation

Customer
Positioning Value and Targeting

Relationships

Differentiation

Place Promotion
Marketing Market
Control Implementation

SELO 1 Ref 1, 2
 Managing Marketing Strategies and the Marketing Mix

• At its core ,marketing is all about creating customer value and

profitable customer relationships.
• Marketing strategy involves two key questions : Which customers
will be serve (segmentation and targeting) and How will we create
value for them (differentiation and positioning )
• Then ,the company designs a marketing program – the four Ps –that
delivers the intended value to targeted consumers.

Marketing Management 201 SELO 1 Ref 1, 2

 • Create, communicate, and deliver value to a target
market at a profit.

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Marketing Management 201
Marketing Management 201 SELO 1 Ref 1, 2
 Few declining Industries in US:

1.Manufactured Home Dealers

2. Record Stores
3. Photofinishing
4. Wired Telecommunications Carriers
5.Newspaper Publishing
6.DVD Game and Video Rental
7.Mills
8.Formal Wear and Costume Rental

Marketing Management 201 SELO 1 Ref 1, 2

The Boston Consultancy Group (BCG) matrix
SELO 1 Ref 1, 2
 Y X

Mkt
pdt Growth Mkt Share mkt share of competitor relative mkt share

pdt1 3 17 32 0.53125

pdt2 5 22 13 1.692307692

pdt3 14 51 25 2.04

pdt4 17 12 26 0.461538462

pdt5 7 15 28 0.535714286

SELO 1 Ref 1, 2
 Mkt Growth
20

18

16

14

12

Relative mkt Share

10
2.5 2 1.5 1 0.5 0

0
Mkt Growth

SELO 1 Ref 1, 2
 Example
• Apple sells record number of iPhones, but fewer iPads,
Macs in profits fall
• Wednesday 24 July 2013
• Technology giant Apple sold 31.2 million iPhones in
the last financial quarter, it said, but the record figure
could not mask a fall in profits and a drop in sales of
the iPad tablet and Mac computers.

Marketing Management 201 SELO 1 Ref 1, 2

 You first determine the growth of the market and the
market share of the product. You end up with 4
categories of product:

• Stars: Profitable and growing product. Usually companies pour

more money in it to push them further. In Apple’s case, the star
products are the iPhone and iPad
• Cash cows: extremely profitable product, no extra effort or
investment is needed to maintain them. Here one finds the iPod,
where Apple enjoys a huge market share in a stable market.
• Question marks: These products have an uncertain future. No
apple product fits in this category.
• Dogs: These products should be stopped if unprofitable. If
profitable, no investment should be made. This may mean selling
the product operations. In Apple’s case, the MAC operations.

Marketing Management 201 SELO 1 Ref 1, 2

 Ansoff Matrix

• The Ansoff Matrix is used as an analysis tool to look at

growth strategies by analyzing markets and products.

Marketing Management 201 SELO 1 Ref 1, 2

SELO 1 Ref 1, 2
 The Ansoff matrix provides four different strategy
options:
Market Penetration is the strategy where the company seeks to
achieve growth by increasing the market share of existing products
in existing markets. This can be achieved by aggressive competitive
pricing strategies, promotion and advertising, loyalty clubs/bonuses
to encourage repeat purchasing and increased selling resources. This
is the least risky strategy.

Marketing Management 201 SELO 1 Ref 1, 2

 Market Development is a strategy where the company seeks to
increase growth by marketing and selling existing products in new
markets.
New markets may relate to new market segments or new geographic
areas.
It may involve using new distribution channels or different pricing or
packaging strategies to attract new customers.
The risk associated with entry into new markets is higher than a
market penetration strategy.

Marketing Management 201 SELO 1 Ref 1, 2

 Product Development is a strategy where the organization seeks
growth by offering new products in existing markets.
This strategy seeks to capitalize on the relationship with existing
customers by extending the range of products sold to these
customers.
A new product development strategy normally carries a higher risk
than market penetration.

Marketing Management 201 SELO 1 Ref 1, 2

 Diversification This strategy involves developing new products for
new markets.
It is typically high risk and requires significant investment and as
such can be a severe drain on cash.
It is most frequently deployed when the organization has a very
mature product range and is operating in a very unattractive market
segment.

Marketing Management 201 SELO 1 Ref 1, 2

 Porter’s 5 Force Model
• Porter identified five factors that act together to determine
the nature of competition within an industry

Marketing Management 201 SELO 1 Ref 1, 2

 The Porter's Five Forces tool is a simple but powerful tool
for understanding where power lies in a business
situation. This is useful, because it helps you understand
both the strength of your current competitive position,
and the strength of a position you're considering
moving into.

Marketing Management 201 SELO 1 Ref 1, 2

 Threat of
new entrants
to a market

Degree of Bargaining
competitive power of
rivalry suppliers

Bargaining
Threat of
power of
substitute
customers
products
(“buyers”)

Marketing Management 201 SELO 1 Ref 1, 2

Marketing Management 201 SELO 1 Ref 1, 2
 Threat of new entrants to an industry
• If new entrants move into an industry they will gain
market share & rivalry will intensify
• The position of existing firms is stronger if there
are barriers to entering the market
• If barriers to entry are low then the threat of new
entrants will be high, and vice versa

Marketing Management 201 SELO 1 Ref 1, 2

 Bargaining power of suppliers
If a firm’s suppliers have bargaining power they will:
• Exercise that power
• Sell their products at a higher price
• Squeeze industry profits

Marketing Management 201 SELO 1 Ref 1, 2

 Customers tend to enjoy strong bargaining power
when:
• There are only a few of them
• The customer purchases a significant proportion of output
of an industry
• they threaten to buy the producing firm or its rivals
• They can choose from a wide range of supply firms
• They find it easy and inexpensive to switch to alternative
suppliers

Marketing Management 201 SELO 1 Ref 1, 2

 Threat of substitute products
The extent of the threat depends upon:
• The extent to which the price and performance of the
substitute can match the industry’s product
• The willingness of customers to switch
• Customer loyalty and switching costs

Marketing Management 201 SELO 1 Ref 1, 2

 Degree of competitive rivalry
If there is intense rivalry in an industry, it will encourage
businesses to engage in:
• Price wars (competitive price reductions),
• Investment in innovation & new products
• Intensive promotion (sales promotion and higher spending on
advertising)

Marketing Management 201 SELO 1 Ref 1, 2

SELO 1 Ref 1, 2
SELO 1 Ref 1, 2
 Weaknesses

• What could you improve?

• What should you avoid?
• What are people in your market likely to see as
weaknesses?
• What factors lose you sales?
• Again, consider this from an internal and external
perspective: Do other people seem to perceive weaknesses
that you don't see? Are your competitors doing any better
than you?

Marketing Management 201 SELO 1 Ref 1, 2

 Opportunities

• What good opportunities can you spot?

• What interesting trends are you aware of?
• Useful opportunities can come from such things as:
• Changes in technology and markets on both a broad and narrow
scale.
• Changes in government policy related to your field.
• Changes in social patterns, population profiles, lifestyle
changes, and so on.
• Local events.

Marketing Management 201 SELO 1 Ref 1, 2

 Threats

• What obstacles do you face?

• What are your competitors doing?
• Are quality standards or specifications for your job,
products or services changing?
• Is changing technology threatening your position?
• Do you have bad debt or cash-flow problems?
• Could any of your weaknesses seriously threaten your
business?

Marketing Management 201 SELO 1 Ref 1, 2

 Strengths

• What advantages does your organization have?

• What do you do better than anyone else?
• What unique or lowest-cost resources can you draw upon
that others can't?
• What do people in your market see as your strengths?
• What factors mean that you "get the sale"?
• What is your organization's Unique Selling Proposition
(USP)?

Marketing Management 201 SELO 1 Ref 1, 2

 TOWS Analysis
• T.O.W.S. Takes Traditional S.W.O.T. Analysis One Step
Further
• By analyzing the external environment (threats and
opportunities), and your internal environment (weaknesses and
strengths), you can use these techniques to think about the
strategy of your whole organization, a department or a team.

Marketing Management 201 SELO 1 Ref 1, 2

 • In essence, think of T.O.W.S as a modified, cross-referenced
S.W.O.T. analysis. It goes deeper than simply listing up Strengths,
Weaknesses, Opportunities and Threats ― It is a means of looking
for relationships between each to “brainstorm” possible
strategies and tactics.

Marketing Management 201 SELO 1 Ref 1, 2

SELO 1 Ref 1, 2
 This arrangement helps you to identify strategic alternatives that
address the following additional questions:

• Strengths and Opportunities (S/O) – How can you use your

internal strengths to take advantage of the existing external
opportunities?
• Strengths and Threats (S/T) – How can you take advantage of
your strengths to avoid or moderate the real and potential external
threats?
• Weaknesses and Opportunities (W/O) – How can you use the
external opportunities to overcome the internal weaknesses you are
experiencing?
• Weaknesses and Threats (W/T) – What can you do to minimize
your internal weaknesses and avoid external threats?

Marketing Management 201 SELO 1 Ref 1, 2

Marketing Management 201 SELO 1 Ref 1, 2
SELO 1 Ref 1, 2
 Four A’s

Marketing Management 201 SELO 1 Ref 1, 2

 Four C’s

Marketing Management 201 SELO 1 Ref 1, 2

 Consumer wants and needs
(vs. Products)
• You can't develop products and then try to sell them to
a mass market. You have to study consumer wants and
needs and then attract consumers one by one with
something each one wants.

Marketing Management 201 SELO 1 Ref 1, 2

 Cost to satisfy (vs. Price)
• You have to realize that price - measured in dollars - is one part
of the cost to satisfy.
• If you sell hamburgers, for example, you have to consider the cost
of driving to your restaurant, the cost of conscience of eating meat,
etc.
• One of the most difficult places to be in the business world is the
retailer selling at the lowest price.
• If you rely strictly on price to compete you are vulnerable to
competition - in the long term.

Marketing Management 201 SELO 1 Ref 1, 2

 Convenience to buy (vs. Place)
• You must think of convenience to buy instead of place. You have
to know how each subset of the market prefers to buy - on the
• Internet, from a catalogue, on the phone, using credit cards, etc.
Lands End clothing, Amazon Books and Dell Computers are just a
few businesses who do very well over the Internet.

Marketing Management 201 SELO 1 Ref 1, 2

 Communication (vs. Promotion)
• You have to consider the communication instead of promotion.
Promotion is manipulative (ouch!) - it's from the seller.
Communication requires a give and take between the buyer and
seller (that's nicer).
• Be creative and you can make any advertising "interactive". Use
phone numbers, your web site address, etc. to help here. And listen
to your customers when they are "with" you.

Marketing Management 201 SELO 1 Ref 1, 2

 Reading Material
1. KK: Kotler & Keller ,Marketing Management,13th Edition,
Prentice Hall
2. VS: V. S. Ramaswamy , Marketing.
3. Station William J- Fundamentals of Marketing (MC 6raw Hill)
4. Kotler Philip Keller Kevind Lane, Koshy Abraham and .Jha
Mithileshwar - Marketing
5. Management: A South Asian perspective (Pearson Education 12th
Edition)

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 Micro-environment

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 Macro-environment

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