Core Concepts of Marketing

Concept of Marketing
Holistic Marketing Framework

1. Value exploration - How can a company identify new value

opportunities?

2. Value creation- flow can a company efficiently create more

promising new value offerings?

3. Value delivery- How can a company use its capabilities and

infrastructure to deliver the new value offerings more
efficiently?
Strategic Management & Marketing Strategy
 Difference between Marketing Management &
Strategic Marketing

Difference Marketing management Strategic marketing

Time Short term / Maximum a year’s Long term / Minimum 3 years

time frame time frame
Mission To build a brand and market the To drive the company in the right
company direction
Decision making Bottom to top approach Top to bottom approach

Opportunities Establishing the existing Searching for new opportunities

opportunities into set business from existing business
Job profile Requires control, discipline and Requires vision, creativity, and
proactiveness risk taking ability
Business Is considered stable with minor Is considered unstable, with
environment hindrances technology and external factors
as ever present enemies.
Leadership The leader needs to react to the The leader needs to be proactive
market before the market reacts
Key component of corporate , Business, Marketing Strategies

Corporate Business Marketing

Scope Which business should Which product market ? Target Market,
we in? Concentric Diversification, Product line depth &
Conglomerate Market development, Breadth, Branding,
Diversification , Vertical Product development market development,
Integration, Acquisition Line extension
& Divesture

Goals & Objective aggregate Constrained by Corporate Constrained by

objectives across business goal
Revenue growth, ROI, Objective aggregate
EPS across product market
entries in business unit
Sales growth , ROI,
Strengthening bases of
competitive advantage
Corporate & Business
goals
Objective for specific
market entry, sales,
market share,
contribution margin,
customer satisfaction
Key component of corporate , Business, Marketing Strategies
Corporate Business Marketing
Allocation Allocation among Allocation among product Across component of
of resources business in the corporate market entries in the business marketing plan for a
portfolio units specific market entry (
Allocation across function Allocation across functional Marketing Mix)
shared by multiple department within business
businesses (corporate R & units
D , MIS)

Source of Financials, Human Competencies relative to Effective product

competitive Resource, R & D, Better competitors in Industry positioning, Superiority
advantage organizational processes , on one or more
synergy across all component of marketing
business where firm mix
operates

Source of Shared resources & Shared resources or Shared marketing

synergy technology functional competencies resources competencies
across product market or activities across
product market entries
Marketing Strategy
 BASIS FOR
TACTICS STRATEGY
COMPARISON
Meaning A carefully planned action A long range blue print of an
made to achieve a specific organization's expected image
objective is Tactics. and destination is known as
Strategy.
Concept Determining how the An organized set of activities that
strategy be executed. can lead the company to
differentiation.
Nature Preventive Competitive
What is it? Action Action plan
Focus on Task Purpose
Formulated at Middle level Top level
Risk involved Low High
Approach Reactive Proactive
Flexibility High Comparatively less
Orientation Towards the present Future oriented
conditions
Marketing Rivals
Pepsi vs coke Pepsi mainly coke targets values and has a
targets youngsters much higher distribution as
compared to Pepsi. It also has a
very high brand equity

Domino’s vs dominos wins on Pizza hut is scarcely available and

Pizza hut the distribution part does not have as many outlets as
dominos
pizza hut wins is the sheer variety
of products and the ambiance
found in its fast food chain,
product quality and depth
 Need for Marketing Strategy

• The fight for market share

• External business environment
• Business Expansion
• Penetration of national and international brands
• Management of channel structure
• Technology
• Innovation
• Demanding customers
 Why And How Your Marketing Strategy Can Fail?

Kangaro
• You know whom to compete but

don’t know HOW to compete.

• By not being useful to the

customer

• The right place and the right time