Post on 05-Apr-2018
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Marketing Strategy Drivers
PESTL
Political Stability Stable governments lead to rapid growth in Business
Economy Closed versus open Economy
Social Structure Variety or Homogeneity of society
Technology Available Advanced technology leads to better products
Legal Framework Can act as support or hindrance
Competition Good for customers, not so good for business
Marketing Strategy Drivers
Strategic Window
Derek F. Abell (1978) introduced the concept of Strategic Window
A Strategic Window is a period of time during which the strategy will work. Itis the relatively short time interval during which the fit between the factorscritical for success and competencies of the organization are in optimal state.
Any change in the Marketing Environmental factor/s can cause opening orclosing of Strategic Window.
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Formulation of Marketing Strategy
Genesis
Current state of Business
Projected or Expected state of Business
Formulation of Marketing Strategy
Genesis
Step 1: Detailed analysis of elements and operating conditions of business
Step 2: Identification of Strategic Window
Step 4: Strategic Planning to exploit the Strategic Window
Step 5: Implementation
Step 6: Continuous looking out for Strategic Window or work towardscreation of one.
Step 3: Checking its alignment with Mission
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Various Marketing Strategies BCG Matrix
Differentiation Tools Boston Consulting Group(BCG) Matrix Product Portfolio Method
Cash Cows
High Market Share
Low Business Growth
Low Investment Requirement
High Returns
Every companys Dream
Financial Foundation of Co.
Various Marketing Strategies
Differentiation Tools Boston ConsultingGroup (BCG) Matrix Continued.
Dogs
Low Market Share
Low Business Growth
Very High InvestmentRequirement
Very low Returns
Every companys Nightmare
Financial Drain for Co.
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Various Marketing Strategies
Differentiation Tools Boston ConsultingGroup (BCG) Matrix Continued.
Question Marks
Low Market Share
High Business Growth
High Investment Requirement
Can turn to a Star or a Dog
Companys new products
Risk Investment for Co.
Various Marketing Strategies
Differentiation Tools Boston ConsultingGroup (BCG) Matrix Continued.
Stars
High Market Share
High Business Growth
High Investment Requirement
Can turn to a Cash Cow
Companys growing products
Low Risk Investment for Co.
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Various Marketing Strategies
Product Strategies
2.Ansoffs Matrix By Igor Ansoff of Harvard College, 1957
1. Market PenetrationStrategy
3. ProductDevelopment Strategy
2. Market DevelopmentStrategy
4. DiversificationStrategy
CurrentProducts
NewProducts
NewMarkets
CurrentMarkets
Various Marketing Strategies
Strategies based on Market Share
Market Leader Has a larger market share and is successful. His strategiescreate proven track record for academics and followers to study and follow.
e.g. Colgate toothpaste
Challenger The one who innovates a strategy which challenges theestablished leaders existence.e.g. Close-up toothpaste
Follower The one who is satisfied in his own niche and doesnt take out ofWay risk to become challenger.e.g. Vicco Vajradanti
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Various Marketing Strategies
Porters Generic Product Strategies
1. Overall Cost LeadershipAchieve lowest cost of production and distributionto kill competition by offering products at lowest price e.g. Wal-Mart
2. Differentiation By achieving superiority in an important customer benefitarea valued by masses e.g. Sony audio systems
3. Focus By focusing on only one of the business segments e.g. Bisleri60% Market share in packaged drinking water and 100% Growth in 2007
Various Marketing Strategies
Alliance Strategies
McDonalds Coca-Cola (Product Alliance)
Pizza Hut Pepsi (Product Alliance)
A Hotel Rent-a-Car company (Service Alliance)
Hotels Corporate Houses (Service Alliance)
Small Banks ICICI Bank draft drawing arrangements (Service Alliance)
Credit Cards Discounts on products and services (Pricing Alliance)
OrganizationAd agency (Promotion Alliance)
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Various Marketing Strategies
McKinsey 7-S Framework for Marketing Success
Strategy
Structure
System
Style
Staff
Skills
SharedValues
Strategy
Structure of Organization
SystemAutomation
Style Way of functioning
Staff Effective staff which can copeup with growth
Skills Required to perform
Shared values leading to mission
Various Marketing Strategies
Strategies based on Innovation
Pioneer The one who is first in the business. Apple i-pod
Close Followers The ones who launch their brand in the market very soonafter the pioneer.
Late Follower The one who enters the market with a product which is longexisting in the market, usually at a cheaper price.
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Concept, Nature, and Scope of
Retailing What is Retailing?
Retailing includes all the activities in selling goods directly to the finalconsumer for personal (non-business) use. Kotler
Manufacturer Retailer Consumer
Manufacturer Wholesaler Retailer Consumer
Manufacturer Wholesaler Jobber Retailer Consumer
Manufacturer Distributor Wholesaler Jobber Retailer Consumer
Manufacturer Branch Distributor Wholesaler Jobber Retailer Consumer
Session 3 Learning Objective
Concept, Nature, and Scope of Retailing
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Concept, Nature, and Scope of
Retailing What is Retailing?
Retailing includes all the activities in selling goods directly to the finalconsumer for personal (non-business) use. Kotler
Manufacturer Retailer Consumer
Manufacturer Wholesaler Retailer Consumer
Manufacturer Wholesaler Jobber Retailer Consumer
Manufacturer Distributor Wholesaler Jobber Retailer Consumer
Manufacturer Branch Distributor Wholesaler Jobber Retailer Consumer
Significance of Retailingfrom Economy Point of View
Accounts for 15-20% work force
Second largest employment in India after agriculture
About 6 million Retail outlets of which 1.8 m in urban India
About 20% of urban outlets are into Services Retailing
Almost 70% are food or general stores category
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Significance of Retailing For manufacturer & Consumer
Direct contact with the customer
Bargaining power of Retailer due to huge selling capacity
(For e.g. Vijay Sales, Big Bazaar, Wal-Mart)
Point of revenue for manufacturer
For consumer its a combination of Services & Product Marketing
Functions of Retailer At a Glance
Functions of Retailer
ProvideGoods &Services Breaking
bulk intoSaleable
lots
GatherMktg Info
HoldInventory
Entertain& ProvideService toCustomers
UnderstandCustomers
Needs
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Functions of Retailer
Interaction with end user
First point to register grievance / complaints
Suggestions are received
Other demographic info can be collected by observation
Understand Customers Needs
Providing goods & Services
Assortment of products Multiple brands under one roof
Large quantities are bought for effective rates and then it is broken intosmall quantities for customer convenience
Functions of Retailer
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Functions of Retailer
Provide credit facilities / Hire-purchase arrangements
Free home delivery and installation
After sales service
Helping customer to make decision
Product display for effecting sale
Entertain and Provide Services
Functions of Retailer
On behalf of Manufacturer / Supplier
Act as a component of Marketing Information System forsupplier
Holding Inventory
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Challenges of Retailing
Emergence of India & China as new markets
The well-informed consumer
Technology enabled functioning those who have it and thosewho dont
Emergence of E-retailing
Retail Customer Profile in India
Urban Population in India 28% = 31 Crores = Total
Population of USA
40% Indian households earn Rs. 80,000 + per annum
Urbanization is rapidly growing UN estimate 90%Population of underdeveloped nations will be urbanized by2025
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Retail Customer Profile in India Continued..
Mumbai is more populated than NY, LA, Shanghai, Paris,
Moscow, London, Bangkok, Chicago and Hong Kong (NotCollectively)
Working women class is increasing
Nuclear Family
Trends in Retailing, Globally
Scattered profitable segments all over the world
Commoditization - where one offering is nearlyindistinguishable from another
Retailing in Exclusive segment / focused retailing
The fight to come to India or go to China
Rise of non-store retailers competing with store retailing
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Trends in Retailing in India
Grocery Beginning of Retailing [Hypercity, Big Bazaar]
Medicines Yet to come to India
Electronics [Vijay Sales, Hypercity]
Furniture [The Living Room, Hypercity]
Apparel [Shoppers Stop, Lifestyle]
Trends in Retailing, Globally Continued..
Challenge of differentiation in experience
Retailers becoming powerhouses of Marketing and exploit themanufacturers
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Trends in Retailing in India
Grocery Beginning of Retailing [Hypercity, Big Bazaar]
Medicines Yet to come to India
Electronics [Vijay Sales, Hypercity]
Furniture [The Living Room, Hypercity]
Apparel [Shoppers Stop, Lifestyle]
Trends in Retailing in India Continued..
Small store formats for quick buying [termed as PrecisionShopping]
Entertaining the customer
International Retailing So far only about 30 out of 250 USretailers have international presence
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Trends in Retailing in India Some unsung giant retailers
Canteen Stores Department 3,500 Canteen Stores operated
via 34 depots catering to 40 Lac households of in service andretired army, air force and navy personnel
Khadi & Village Industries 7,050 outlets all over India
Raymonds was one of the pioneering Indian Retailers
Factors behind success of Retail in India
Good economic growth rate (8+%)
Increasing Urbanization
Increasing Consumerism (e.g. Shopping Therapy)
Increased Brand consciousness
Software and BPO Boom
Increased Credit facilities