Project Report (1).Doc Latest by Rahul Dinesh.docx Night

8/6/2019 Project Report (1).Doc Latest by Rahul Dinesh.docx Night

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TRAINING REPORT

ON

"MARKETING STRATEGY"

In partial fulfillment of the requirements

For the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

(INDUSTRY INTEGRATED)

Submitted to:- Submitted by:-

MAHARISHI DAYANAND Name:

UNIVERSITY,ROHATAK Regst. No.:

HARAYANA-122001 Roll No:

Guru Gram Business School

Front of CCA School Dhanwapur road laxman Vihar GurgaonHaryana 122001


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CERTIFICATE

This is to certify Dinesh Vishwakarma, a student of the MaharishiDayanand University, Rohtak, has prepared his training report entitled MarketingStrategy at Continental Manufacturing Co. , under the guidance . He has fulfilledthe requirement leading to award of the degree of BBA (Industrial Integrated). Thisreport is the record of bonafide training undertaken by him and no part of it has

been submitted to any other University or Educational Institution for award of any

other degree /diploma/fellowship or similar titled or prizes.

I wish him all success in life.

Sign of Faculty guid

Name of Faculty guid

Designation

Qualification

Seal of ELC


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DECLARATION

I hereby declare that Training Report conducted at

CONTINANTAL MANUFACTURING CO.

353, MEHRALI ROAD, OPP. GOVT. COLLAGE,

GUEGAON-122001(HARYANA)

Under the guidance of

Mrs. Bhavana

Submitted in partial fulfillment of the requirement for the degree of Bachelor of Business Administration (industry integrated)

To

Maharishi Dayanand University, Rohtak

Is my original work and the same has not been submitted for the award of anyother degree/diploma/fellowship or other similar titled or prizes.

Name:

Place:Date:

Reg. no.


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Acknowledgement

I would like to acknowledge and extend my gratitude to the Mr. P ravi n Kum ar (Marketing Manager) who have made thecompletion of this project possible:

First of all, I would like to thank my Project Guide Mrs.

Bh av n a for her great help. As she is being my Project

Coordinator she provided me very necessary and important

guidance and support until the submission of my project.

I would also like to thank Ms. N a ncy (TPO) of Guru Gram

Business School (GGBS), to provide me such a very exiting

opportunity and for their good help to provide a better

coordination and control among all the activities related to

completion of the project.

Lastly, I would like to be very thankful to the whole GGBSF a culty for their continuous effort in making the whole Project

Activity very much learning and Interesting.I delivered my special thanks to my family members and friendsfor their constant support during the project.

Name:

Maharishi Dayanand University


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CONTENT OF THE REPORT

1) General introduction about the sector.2) Industry profile

i. Origin and development of industry.ii. Growth present status of the industry.

iii. Future of the company.3) Origin of organization.4) Growth development and present status of the

rganization.5) Product and service profile of the company.6) - Profile of the company.7) Discussion on training.8) Study of selected research problem

i. (Problem, objective, methodology)9) - Summary and conclusion10) Appendices11) Bibliography


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1 GENERAL INTRODUCTION ABOUT SECTOR


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2 - INDUSTRY PROFILE

1. Origin and development of the industry:-

CONTINENTAL MANUFACTURING COMPANY establised in 1990 with the aim tomanufacture Precision and High Quality Plastic and Steel metal component. AtCMC, we have been serving OEMs in Gurgaon Fom very bigning and have madegood cutomer on base due to our industrial background sonce 1958. We havespecialization in manufacturing of deep draw components in seat metal andinjection molded plastic part with critical shape and size . A brief count of our achievement and appritiation given by companys customer is given below


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II. Growth and Present Status of the Industry:-

There is two axis one shows series 1 in which targets achieved is given in crores.Second axis shows the year I which targets achieved.


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III. Future of the Industry:-


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3. ORIGIN OF ORGANIZATION

CONTINENTAL MANUFACTURING COMPANY establised in 1990 with theaim to manufacture Precision and High Quality Plastic and Steel metal component.

At CMC, we have been serving OEMs in Gurgaon Fom very bigning and havemade good cutomer on base due to our industrial background sonce 1958. We havespecialization in manufacturing of deep draw components in seat metal andinjection molded plastic part with critical shape and size . We have two uit &offices they are given below:-


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4 . GROWTH DEVELOPMENT AND PRESENT STATUS OF THEORGANIZATION .


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5. PRODUCT AND SERVICE PROFILE OF THE COMPANY


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6 . PROFILE OF ORGNIZATION

Organizational structure

CEO


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7. DISCUSSION ON TRAINING

7.1 Definition:-

M arketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve asustainable competitive advantage

Developing a marketing strategy:-

Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans andobjectives are generally tested for measurable results. Commonly, marketingstrategies are developed as multi-year plans, with a tactical plan detailing specificactions to be accomplished in the current year. Time horizons covered bythe marketing plan vary by company, by industry, and by nation, however, timehorizons are becoming shorter as the speed of change in the environmentincreases. Marketing strategies are dynamic and interactive. They are partially

planned and partially unplanned. See strategy dynamics.

Marketing strategy involves careful scanning of the internal and external

environments which are summarized in a SWOT analysis. Internal environmentalfactors include the marketing mix, plus performance analysis and strategicconstraints. External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of thetechnological, economic, cultural or political/legal environment likely toimpactsuccess. A key component of marketing strategy is often to keep marketing in linewith a company's overarching mission statement.

7.1.1 Types of strategies

Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some genericstrategies. A brief description of the most common categorizing schemes is

presented below:


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Strategies based on market dominance - In this scheme, firms are classified basedon their market share or dominance of an industry. Typically there are four types of market dominance strategies:

Leader Challenger

Follower Nicher

I. Porter generic strategies - strategy on the dimensions of strategic scope andstrategic strength. Strategic scope refers to the market penetration while strategicstrength refers to the firms sustainable competitive advantage. The genericstrategy framework (porter 1984) comprises two alternatives each with twoalternative scopes. These are Differentiation and low-cost leadership each with adimension of Focus -broad or narrow.

Product differentiation (broad) Cost leadership (broad) Market segmentation (narrow)

II. Innovation strategies - This deals with the firm's rate of the new productdevelopment and business model innovation. It asks whether the company is on thecutting edge of technology and business innovation. There are three types:

Pioneers Close followers

Late followers

III. Growth strategies - In this scheme we ask the question, How should the firmgrow?. There are a number of different ways of answering that question, but themost common gives four answers:


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Horizontal integration Vertical integration

Diversification Intensification Prospector Analyzer Defender Reactor

IV. Marketing warfare strategies - This scheme draws parallels between

marketing strategies and military strategies.

M any architects make the mistake of thinking that marketing has only a peripheralrelationship to what their firm does. In fact, marketing works best when it is totallyintegrated into the operations of your firm, when its a part of everything you do.You cant create a plan for how to improve your marketing and increase your

business without first considering your long-term goalsnot just in terms of feerevenue or winning work, but in terms of who you want to be and where you wantto go, both as a firm and as a professional. There are a number of ways strategic

planning

can help your firm:

_ Build a shared vision for the firms future. _ Articulate your vision so that it can be communicated to others. _ Get approval and support for the vision from senior leadership and,ultimately, your entire staff.

_ Create a framework for all future decision making. _ Figure out (and agree on) how much youre going to spend onmarketing and other initiatives to make it happen.


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7.1.2 Strategic Planning:-

Strategic planning is the process of developing a vision of who you are as a firmand what your longterm goals are. Its about more than just marketing; it caninfluence everything: human resources, finance, information technology,operations, hiring, promotions strategy, design process, client relationships, thedesign of your office, and absolutely anything else that affects your firm and its

performance. Firms typically engage in strategic planning at defining moments in

their practice, when the firms leadership changes or when the practice undergoessome kind of profound transformation. The strategic planning process enables thefirms leadership to build a shared vision for the firms future, articulate the visionso that it can be communicated, and create a framework for all future decisionmaking. Because strategic planning is a process , not a document or a report, it isnteffective for a small group of leaders to issue a fat document as the strategic planfor the firm. It will probably go unread. It will certainly not achieve approval andsupport from the people who need to understand it and act on it. Strategic planning

is best conducted as an open process, one that involves all your firms key leaders.To begin the process, set up a strategic planning meeting, either as a retreat outsidethe office or as an extended in-house meeting. (You may want to bring in amarketing consultant to help you with this.) Figure out who should be there to giveinput to the vision for your firms future. Keep the group as small as possible, butdont leave anyone out. Ask everyone to commit half a day for the meeting (twohours just isnt enough), and to come relaxed and prepared to focus on the firmsstrategic direction. Gather any existing documents that attempt to define the firm or its vision, such as mission statements, a firm description, marketing materials,articles that have been written about the firm, and so on


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I. M arkets for Industrial goods -

The market is the place where supply meets demand. Suppliers and customersmeet, discuss and evaluate the conditions for exchange of goods and services, andexchanges take place. The conditions under which these exchanges occur,especially that of price, are influenced by the characteristics and structure of themarket, for example, the number and market power of suppliers and customers.Traditional economic analysis of markets presupposes that they are characterized

by certain basic features;' firstly, there is an assumption of free movement in themarket, and thus a customer will always buy where he obtains the best terms of exchange at that moment; similarly, the assumption is that suppliers will move toand from the market freely.' Thus, the market is portrayed as atomistic. Each unitin the market is free and independent to do as it wishes. Also, as a result of thisfree movement, the market is characterized by change, and stability is anexception. Underlying these two assumptions is the further assumption that there islittle or no cost of transaction. In other words, it is assumed that there are no costs

in obtaining accurate information, or in negotiations, etc. One effect of thisassumption is that production costs are considered central and that sellers can besimply represented by a production function.

The traditional economic theory of the market has of course been subject tochallenge and modification. However, it has influenced the models and principlesused in marketing management. The basic model that most of the literature inmarketing is built on is the marketing mix model. The key problems in marketing,according to that model, are:

To allocate resources to different competitive means or mix elements. To design each mean as well as possible within the firm's resourcelimitations.

The market is often described in terms of response curves, each defined in relationto a certain 'marketing decision variable' or to the whole mix of a company. The


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assumption is of course that the market consists of many individual customers thatare affected by the marketer's variables in accordance with a certain statisticaldistribution. The same kind of influence can also be identified in the purchasingmanagement literature. The focus here is largely on the management of a single

purchase. This does not give full consideration to the factors which havecontributed to the way this purchase takes place, or to the effects of this purchaseon the subsequent dealings with the supplying company.'

II. Marketing Management -

The models and principles for industrial marketing management that are given bythe literature are normally related to the marketing mix model. The problemsidentified in these are the allocation of resources and the designing of competitivemeans. However, marketers in for example, a highly concentrated industry mayfind different problems. The issues associated with the handling of ten very largecustomers are of totally different character from those of handling 1,000 smallcustomers. Thus, marketers in firms in concentrated markets have a lack of accurate models for analyzing their marketing problems. They have also a lack of relevant data expressed in a systematic way about the behaviour of other firms inthe same situation.

III. Marketing Organization

Overall Organization

Belter's sales operations are split into three areas as follows;

(i) Sales Manger UK responsible for 6070 per cent of total sales. Four areaoffices handling all accounts, except two major ones which are managed from theCompany's main office.

(ii) Sales Manager Middle East, Africa, Eastern Europe, accounting for approximately 20 per cent of total sales. One manager plus two sales engineers.The Company is currently building up an agencydistributor network for thisterritory.


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(iii) Sales Manager Western Europe, responsible for the remaining 20 per centof total sales. The sales manager is located in Brussels, with additional sales offices

in Germany, France, and Italy. The Brussels sales office is owned by Belter's parent group.

IV. Evolution of Marketing Organization -

Belter has often faced problems in the distribution of its products; in France, for example, the Company had a combined agent and distributor operating until 1963.Belter provided applications engineering but had no commercial involvement in

sales. The company found that it had no influence on pricing in the market and thisled to a rather artificial pricing structure and to a decreased market share. This

problem was not solved by the appointment of a second distributor. Mergersamongst French suppliers have led to more competition in the market. The seconddistributor did little to stimulate the first one or to improve the Company's overall

penetration.

In 1966 Belter separated out a number of products and major customers whichwere not to be handled via distributors. These customers and products were to becontrolled by the UK sales operation. Also, from 1970, the Brussels office ceasedto have overall responsibility for sales to France and a Paris office was established.The overall market situation faced in France (and in other European countries) is asfollows:

There are many actual and potential users for some products, which are not known by the Company. Heavy competition exists especially on price, for large customerswho are often buying what they view as a commodity product. Belter's emergingstrategy has been to handle these large customers through its own sales offices.The Paris office actively seek sales of large volume products as well as acting as a`post office' for products specially developed for individual customers, which arethen handled from the Company's main office. Small customers and small volume

products are handled by the two French distributors. The development process inItaly has been similar to that in France. Sales in Scandinavia do not justify a local


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sales office; sales here are handled through a distributor from the Brussels office.A small number of major accounts are, however, handled directly from the UK.

7.2 BuyerSeller Relationships:-

A Customer Relationship -

The three aspects of the relationship which are studied are competition, technicaldevelopment, and personal contacts.

This customer is Belter's largest and is responsible for 20 per cent of its total business. The Company operates in the aerospace industry at the limit of currenttechnology. The relationship involves considerable development liaison on whollynew products.

Competition -

Competition for this customer comes primarily from American suppliers. Thecompetition is on price and reflects the spare capacity in the American industry.Competition from UK companies is also on price and comes from companieshaving a wider production spread than Belter.

D evelopment -

This customer has always relied on Belter alone for development work in this product area. However, they have looked to other sources of supply when

development has taken place. The development process for a new product can bestarted either by a government development contract or by an order from thecustomer. Belter acknowledged that it has to stand the costs of this development inthe latter case. The customer has intimate knowledge of all of Belter's procedures.Methods of manufacture are agreed in detail and even the particular productionmachinery to be used is specified. The closeness of the relationship between the


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two companies is indicated by the fact that the customer has approved Belter'squality procedure and accepts their testing.

Contact Pattern -

Interpersonal contacts between Belter and its UK customer are summarized as

follows:

(1) Formal Contacts

Every six months Technical policy liaison meeting, jointly chaired by Belter'sTechnical Director and the customer's Chief Materials Manager. Every sixninemonths Commercial meeting, Belter's Managing and Marketing Directors andSales Manager and the customer's Purchasing Director and Senior PurchasingStaff.

Monthly Sales Manager visits customer's purchasing staff to discuss delivery andorder positions.

(2) Other Contacts

These can be studied according to the formally assigned responsibility. Personnelwho have full-time responsibility One sales office man has daily contact with the

customer. Additionally, one applications engineer is engaged on work for thiscustomer. Finally, one man determines market trends, and is in contact with thecustomer's marketing personnel and customer's clients. Personnel with `half-time'responsibility Four applications engineers also spend some of their time on thecustomer's problems and are in personal contact with customer staff.


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7.3 PURPOSE OF A MARKETING PLAN:-

The purpose of a Marketing Plan is to:-

Define the Market Refine the Production Plan to market requirements Develop a marketing strategy Minimize risk

Marketing Plan covering each commodity based on their own study of the localmarket.

I. Market demand and prices -An assessment based on published marketinformation , discussions with local extension staff, farmers, dealers and buyers of the commodity of the likely demand and prices on offer during the year and duringany period of seasonal shortfall

II. Market Requirement - Varieties, size, grading, packaging, maturity demanded by the buyers in the particular market.

III. Yield /Price Assumptions- How much commodity will be available? Howmuch premium grade? Second grade? Losses? If the commodity /crop is aimed to

be produced for a particular period e.g. for a low supply period, while the priceassumptions (expectation) may be higher some reassessment of yield and cost of


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production assumptions in the gross margin analysis or partial budgets is usuallynecessary.

IV. Marketing Returns and Costs Calculate expected income and costs in

marketing

7.4 The Most Important Elements of Marketing:-

There are four important elements in the marketing process:

Prioritizing the customer: Marketing begins with the customer, not the product. Knowing what the customer needs or wants is essential.

Process of selection : The farmer needs to know who to sell the product to.This will determine how and where the produce is marketed.

Promotion : The farmer is selling something that other people want to buy. Naturally, it is helpful to let them know that the product is available and of good quality. In thinking about these elements, farmers need to ask themselves about the six Ps:

people: Who are the customers? What do they want or need? Who is actuallygoing to market the product?

plan: How is the product going to reach the selected customers? What are thesteps?

product: What product is going to be marketed? Is the family producing whatthe customer wants? What services (for example, a cooked product), if any,are requested by the customer?

place: Where is the product going to be marketed?


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price: What price will the product be offered on the market for?

promotion: How are people going to be informed that the product is available?

7.5 Supply, Demand, and Price :-

I n a free market, prices for inputs and products are determined by supply and demand .

I. Supply -

The Law of Supply :-Like the law of demand, the law of supply demonstrates the quantities that will besold at a certain price. But unlike the law of demand, the supply relationship shows

an upward slope. This means that the higher the price, the higher the quantitysupplied. Producers supply more at a higher price because selling a higher quantityat a higher price increases revenue.

A, B and C are points on the supply curve. Each point on the curve reflects a directcorrelation between quantity supplied (Q) and price (P). At point B, the quantitysupplied will be Q2 and the price will be P2, and so on.


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II . DemandThe Law of Demand :-

The law of demand states that, if all other factors remain equal, the higher the priceof a good, the less people will demand that good. In other words, the higher the

price, the lower the quantity demanded. The amount of a good that buyers purchaseat a higher price is less because as the price of a good goes up, so does theopportunity cost of buying that good. As a result, people will naturally avoid

buying a product that will force them to forgo the consumption of something elsethey value more. The chart below shows that the curve is a downward slope.

A, B and C are points on the demand curve. Each point on the curve reflects adirect correlation between quantity demanded (Q) and price (P). So, at point A, thequantity demanded will be Q1 and the price will be P1, and so on. The demandrelationship curve illustrates the negative relationship between price and quantitydemanded. The higher the price of a good the lower the quantity demanded (A),and the lower the price, the more the good will be in demand (C).

III. Price

A value that will purchase a definite quantity, weight, or other measure of a goodor service. As the consideration given in exchange for transfer of ownership, price forms the essential basis of commercial transactions. It may befixed by a contract, left to be determined by an agreed upon formula ata future date, or discovered or negotiated during the dealings betweenthe parties involved. In commerce, price is determined by what.


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a buyer is willing to pay, a seller is willing to accept the competition is allowing to be charged.

7.6 Industrial or business to business (B2B) marketing

An organization seeks to build a new warehouse. After documenting requirements,it obtains three proposals from suitable construction firms. After a long process of evaluation and negotiation, it places an order with the organization that it believesoffers the best value for money.

An organization needs legal services and obtains submissions from two law firms.Analysis of the proposals and subsequent discussions determines that there is no

price advantage to placing all of the work with one firm, and the organizationdecides to split the work between the two firms based on an evaluation of eachfirm's capabilities.

A sales representative makes an appointment with an organization that employs 22 people. He demonstrates a photocopier/fax/printer to the office administrator. After discussing a proposal, the business owner signs a contract to obtain the machine ona fully-maintained rental and consumables basis, with an upgrade after 2 years.

I. Main features of the B2B selling process are :

Marketing is one-to-one in nature. It is relatively easy for the seller to identify a prospective customers and build a face-to-face relationship. Highly professional

and trained people in buying processes are involved. In many cases, two or threedecision makers must approve a purchase plan. Often the buying or selling processis complex, and includes many stages (for example, request for proposal, requestfor tender, selection process, awarding of tender, contract negotiations, and signingof final contract). Selling activities involve long processes of prospecting,


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qualifying, wooing, making representations, preparing tenders, developingstrategies, and contract negotiations.

II. Blurring between B2B and B2C

Industrial marketing can cross the border into consumer marketing. For example,an electronic component seller may distribute its products through industrialmarketing channels (see channel (marketing)), but also support consumer sales.Many products are equally desired by business and consumerssuch as audio

products, furniture, paint, hardware, etc. Nonetheless, manufactures and service providers frequently maintain separate industrial and consumer marketingoperations to reflect the different needs of the two channels.

III. Competitive tendering

Industrial marketing often involves competitive tendering (see tender, tendering).This is a process where a purchasing organization undertakes to procure goods andservices from suitable suppliers. Due to the high value of some purchases (for example buying a new computer system, manufacturing machinery, or outsourcinga maintenance contract) and the complexity of such purchases, the purchasingorganization will seek to obtain a number of bids from competing suppliers andchoose the best offering. An entire profession (strategic procurement) that includestertiary training and qualifications has been built around the process of makingimportant purchases. The key requirement in any competitive tender is to ensurethat... The procurement process is agreed upon and it conforms with fiscalguidelines and organisational policies. The selection criteria have been established.

A budget has been estimated and the financial resources are available. A buying team (or committee) has been assembled. A specification has been written.

It has been clearly established that a competitive tendering process is the bestmethod for meeting the objectives of this purchasing project. If (for example) itwas known that there was only one organisation capable of supplying; best to geton with talking to them and negotiating a contract.


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Because of the significant value of many purchases, issues of probity arise.Organizations seek to ensure that awarding a contract is based on "best fit" to theagreed criteria, and not bribery, corruption, or incompetence.

IV. Bidding processSuppliers who are seeking to win a competitive tender go through a bidding

process. At its most primitive, this would consist of evaluating the specification(issued by the purchasing organization), designing a suitable proposal, andworking out a price. This is a "primitive" approach because...

There is an old saying in industrial marketing; "if the first time you have heardabout a tender is when you are invited to submit, then you have already lost it."

While flippant, the previous point illustrates a basic requirement for beingsuccessful in competitive tendering; it is important to develop a strong relationshipwith a prospective customer organization well before they have started the formal

part of their procurement process.

V. Non-tender purchasing

Not all industrial sales involve competitive tendering. Tender processes are timeconsuming and expensive, particularly when executed with the aim of ensuring

probity. Government agencies are particularly likely to utilise elaboratecompetitive tendering processes due to the expectation that they should be seen atall times to be responsibly and accountably spending public monies. Privatecompanies are able to avoid the complexity of a fully transparent tender process

but are still able to run the procurement process with some rigour.Beneficial

Developing a sales strategy/solution selling/technical selling

The "art" of technical selling (solution selling) follows a three stage process...

S tage 1 : Sell the appointment: Never sell over the telephone. The aim of the firstcontact with a prospective purchaser is to sell the appointment. The reason issimple; industrial sales are complex, any attempt to sell over the phone willtrivialise your product or service and run the risk of not fully understanding thecustomer's need.


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S tage 2: Understand their needs: The best method of selling is to minimise theinformation about your goods or services until you have fully understood your customer's requirements.

S tage 3 : Develop and propose a solution. The solution is (of course) developedfrom your (or the firm that you represent's) product or service offerings.

Marketing supports solution selling through methods like account-basedmarketingunderstanding a specific target organization's requirements as thefoundation of a marketing program. As research shows, [1] sales success is heavilyweighted towards suppliers who understand the customer. In UK research, 77 per cent of senior decision-makers believe new suppliers' marketing From cannonfodder to preferred tenderer

VI. The key features of a successful industrial sales organization

In industrial marketing the personal selling is still very effective because many products must be customized to suit the requirements of the individual customer.Indicators such as the sales tunnel give information on the expected sales in thenear future, the hit rate indicates whether the sales organization is busy with

promising sales leads or it is spending too much effort on projects that areeventually lost to the competition or that are abandoned by the prospect.


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RESEARCH PROBLEM

1. Identify your target market.

Which businesses need cleaning services? Which ones can afford it and will payfor it? Why?

In this case, I would think that small businesses may not be an ideal client. Butthen again, define "small business." Are this referring to sales volume or number of employees.

this can help small business right now as a marketing consultant that has workedwith a wide variety of businesses, including small companies:

" Small businesses are very price sensitive and prefer to do more themselves rather than pay someone else." (They hold this belief even if it would free up more timeto be more productive. Go figure?)

2. Determine their wants and needs.

These businesses never have walk-in traffic. They do not have customers visitthem. So naturally, there is far less of a concern for a "clean office." Sure it would

be nice to have, but since no revenue will be lost if their office is not spectacular looking, they are not motivated to do anything about it.

However, seek out the businesses that do deal with customers directly, especially professional services where they have very high end clients visit them. Now theyneed a very presentable office or they risk losing out on a lot of revenue.

3. Determine the level and type of demand.

Primary D emand : If a business does not already use your TYPE of service and isnot currently considering doing so, you will need to create "primary demand."Simply put, you will have to convince them first to even want your type of service


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(or product) before you even get them to buy it from you.

S elective D emand : These businesses already use a service (or product) or are in themarket for it and are actively looking. In these cases you do not need to spend

much effort convincing them "why" they need it.

4 . Develop a Hypothesis and a Solution to Match

After we know the target market, have defined their needs, and analyzed thecompetitive picture (currently using or not currently using a service like mineFor example, start with business not currently using a cleaning service, but thatdeal with customers or clients regularly at their location.

Develop a strong case for why they would be wise to invest in your cleaningservices. Show them on a break-even analysis that your fee will be wellcompensated in either customer retention or converting a higher level of storetraffic or business appointments into paying customers/clients.

Then state your case why it is more cost effective and saves them valuable time tooutsource this to you rather than doing it themselves or paying an employee

overtime to do it. You can also emphasize that you are the "expert" at this, notsomeone's secretary so it is expected that you will do a far better job at it.

5. You must make AN OFFER.

Marketing message/sales offer to a business that does NOT currently use acleaning service

" If we have never considered using a cleaning service before, allow us to showyou how xyz Cleaning, Inc can make your store/office more presentable tocustomers and how this newly improved appearance will affect your cashregister/bank statement.


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6 . Develop your marketing message

Once industry organization understand the true needs your potential clients haveand the unique and competitive solutions you can offer, only then should

organization develop company's marketing copy -- your sales pitch.

The two examples above incorporate great marketing copy with a strong, benefitsrelated offer. organization can then deliver this through direct mail, telemarketing,or a combination of both.

Avoid the fax marketing altogether. It's quite annoying, ties up there fax line, andunless people have already heard of you, they are more likely to toss your message

in the garbage.

Try sending direct mail to the decision makers of these target companies anddescribe the benefits they will experience from using your services.

7. Follow up

Even after identifying the businesses that are most likely to need your services,

after organization have identified a solution, and even after you contacted themwith a compelling offer, you still have to follow up.

Chances are they loved the sound of it when they got it. They had every intentionof following up with organization . But then just got busy. So company's follow upcall can make all the difference in the world and get company's foot in the door ...in a very big way. Then it's up to you to deliver on your promise.


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8. ANALYSIS

M arket A nalysis

The goal of a market analysis is to determine the attractiveness of a market and to understand its evolving opportunities and threats as they relate to thestrengths and weaknesses of the firm .

Market size (current and future) Market growth rate Market profitability Industry cost structure Distribution channels Market trends Key success factors

M arket S ize

The size of the market can be evaluated based on present sales and on potential sales if the use of the product were expanded. The following are some information sources for determining market size:

g overnment data trade associations financial data from major players customer surveys


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M arket Growth Rate

A simple means of forecasting the market growth rate is to extrapolatehistorical data into the future. While this method may provide a first-order estimate, it does not predict important turning points. A better method is to study growth drivers such as demographic information and sales growth in complementary products. Such drivers serve as leadingindicators that are more accurate than simply extrapolating historical data.

M arket Profitability

While different firms in a market will have different levels of profitability,the average profit potential for a market can be used as a guideline for knowing how difficult it is to make money in the market. Michael Porter devised a useful framework for evaluating the attractiveness of anindustry or market. This framework, known as Porter's five forces,

identifies five factors that influence the market profitability: y Buyer power y Supplier power y Barriers to entryy Threat of substitute productsy Rivalry among firms in the industry


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I ndustry Cost S tructure

The cost structure is important for identifying key factors for success. Tothis end, Porter's value chain model is useful for determining where value

is added and for isolating the costs.The cost structure also is helpful for formulating strategies to develop acompetitive advantage. For example, in some environments the experiencecurve effect can be used to develop a cost advantage over competitors.

Distribution Channels

The following aspects of the distribution system are useful in a market analysis:

Existing distribution channels - can be described by how direct they are tothe customer.

Trends and emerging channels - new channels can offer the opportunity todevelop a competitive advantage.

Channel power structure - for example, in the case of a product havinglittle brand equity, retailers have negotiating power over manufacturers

and can capture more margin.

M arket Trends

Changes in the market are important because they often are the source of new opportunities and threats. The relevant trends are industry-

dependent, but some examples include changes in price sensitivity,demand for variety, and level of emphasis on service and support.Regional trends also may be relevant.


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Key Success Factors

The key success factors are those elements that are necessary in order for the firm to achieve its marketing objectives. A few examples of such factors

include:

y Access to essential unique resourcesy Ability to achieve economies of scaley Access to distribution channelsy Technological progress


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9. CONCLUSIONS

Organizations engage in marketing research for two reasons:

(1) to identify

(2) solve marketing problems.

This distinction serves as a basis for classifying marketing research into problemidentification research and problem solving research.

Problem identification research is undertaken to help identify problems which are, perhaps, not apparent on the surface and yet exist or are likely to company image,market characteristics, sales analysis, short-range forecasting, long rangeforecasting, and business trends research. Research of this type providesinformation about the marketing environment and helps diagnose a problem. For example, The findings of problem solving research are used in making decisionswhich will solve specific marketing problems.

Standardized services are research studies conducted for different client firms butin a standard way. For example, procedures for measuring advertisingeffectiveness have been standardized so that the results can be compared across

studies and evaluative norms can be established. The Starch Readership Survey isthe most widely used service for evaluating print advertisements; another well-known service is the Gallup and Robinson Magazine Impact Studies. Theseservices are also sold on a syndicated basis.

Customized services offer a wide variety of marketing research servicescustomized to suit a client's specific needs. Each marketing research project istreated uniquely.

Limited-service suppliers specialize in one or a few phases of the marketingresearch project. Services offered by such suppliers are classified as field services,coding and data entry, data analysis, analytical services, and branded

products. Field services collect data through mail, personal, or telephoneinterviewing, and firms that specialize in interviewing are called field service


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organizations. These organizations may range from small proprietary organizationswhich operate locally to large multinational organizations with WATS lineinterviewing facilities. Some organizations maintain extensive interviewingfacilities across the country for interviewing shoppers in malls.

Coding and data entry services include editing completed questionnaires,developing a coding scheme, and transcribing the data on to diskettes or magnetictapes for input into the computer. NRC Data Systems provides such services.

Analytical services include designing and pretesting questionnaires, determiningthe best means of collecting data, designing sampling plans, and other aspects of the research design. Some complex marketing research projects require knowledgeof sophisticated procedures, including specialized experimental designs, and

analytical techniques such as conjoint analysis and multidimensional scaling. Thiskind of expertise can be obtained from firms and consultants specializing inanalytical services.

Data analysis services are offered by firms, also known as tab houses, thatspecialize in computer analysis of quantitative data such as those obtained in largesurveys. Initially most data analysis firms supplied only tabulations (frequencycounts) and cross tabulations (frequency counts that describe two or more variablessimultaneously). With the proliferation of software, many firms now have thecapability to analyze their own data, but, data analysis firms are still in demand.

Branded marketing research products and services are specialized datacollection and analysis procedures developed to address specific types of marketing research problems. These procedures are patented, given brand names,and marketed like any other branded product


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Types of marketing research

Marketing research techniques come in many forms, including:

Ad Tracking periodic or continuous in-market research to monitor a brands performance using measures such as brand awareness, brand preference,and product usage. (Young, 2005)

Advertising Research used to predict copy testing or track the efficacy of advertisements for any medium, measured by the ads ability to get attention(measured with Attention Tracking), communicate the message, build the brandsimage, and motivate the consumer to purchase the product or service. (Young,2005)

Brand equity research - how favorably do consumers view the brand?

Brand association research - what do consumers associate with the brand?

Brand attribute research - what are the key traits that describe the brand promise?

Brand name testing - what do consumers feel about the names of the products?

Commercial eye tracking research - examine advertisements, package designs,websites, etc. by analyzing visual behavior of the consumer

Concept testing - to test the acceptance of a concept by target consumers

Cool hunting - to make observations and predictions in changes of new or existingcultural trends in areas such as fashion, music, films, television, youth culture and

lifestyle

Buyer decision processes research - to determine what motivates people to buyand what decision-making process they use


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Copy testing predicts in-market performance of an ad before it airs by analyzingaudience levels of attention, brand linkage, motivation, entertainment, andcommunication, as well as breaking down the ads flow of attention and flow of emotion. (Young, p 213)

Customer satisfaction research - quantitative or qualitative studies that yields anunderstanding of a customer's of satisfaction with a transaction

Demand estimation - to determine the approximate level of demand for the product

Distribution channel audits - to assess distributors and retailers attitudes towarda product, brand, or company

Internet strategic intelligence - searching for customer opinions in the Internet:chats, forums, web pages, blogs... where people express freely about their experiences with products, becoming strong " opinion formers "

Marketing effectiveness and analytics - Building models and measuring resultsto determine the effectiveness of individual marketing activities.

Mystery Consumer or Mystery shopping - An employee or representative of themarket research firm anonymously contacts a salesperson and indicates he or she isshopping for a product. The shopper then records the entire experience. Thismethod is often used for quality control or for researching competitors' products.

Positioning research - how does the target market see the brand relative to

competitors? - what does the brand stand for?Price elasticity testing - to determine how sensitive customers are to pricechanges


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Sales forecasting - to determine the expected level of sales given the level of demand. With respect to other factors like Advertising expenditure, sales

promotion etc.

Segmentation research - to determine the demographic, psychographic, and behavioural characteristics of potential buyers

Online panel - a group of individual who accepted to respond to marketingresearch online

Store audit - to measure the sales of a product or product line at a statisticallyselected store sample in order to determine market share, or to determine whether aretail store provides adequate service

Test marketing - a small-scale product launch used to determine the likelyacceptance of the product when it is introduced into a wider market

Viral Marketing Research - refers to marketing research designed to estimate the probability that specific communications will be transmitted throughout anindividual's Social Network. Estimates of Social Networking Potential (SNP) arecombined with estimates of selling effectiveness to estimate ROI on specificcombinations of messages and media.

Marketing research methods

Methodologically, marketing research uses the following types of research designs:

Based on questioning:

Qualitative marketing research - generally used for exploratory purposes - smallnumber of respondents - not generalizable to the whole population - statisticalsignificance and confidence not calculated - examples include focus groups, in-depth interviews, and projective techniques

Quantitative marketing research - generally used to draw conclusions - tests aspecific hypothesis - uses random sampling techniques so as to infer from thesample to the population - involves a large number of respondents - examplesinclude surveys and questionnaires. Techniques include choicemodelling, maximum difference preference scaling, and covariance analysis.


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Based on observations:

Ethnographic studies -, by nature qualitative, the researcher observes social phenomena in their natural setting - observations can occur cross-

sectionally (observations made at one time) or longitudinally (observations occur over several time-periods)

examples include product-use analysis and computer cookie traces. Seealso Ethnography and Observational techniques.

Experimental techniques -, by nature quantitative, the researcher creates a quasi-artificial environment to try to control spurious factors,

then manipulates at least one of the variables - examples include purchaselaboratories and test markets


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Questionnaires

1. What are the objectives of the marketing strategy? Are they clearly stated? Are

they consistent with the objectives of the firm? Is the entire marketing mixstructured to meet these objectives?

2. What marketing concepts are at issue in the current strategy? Is the marketingstrategy well planned and laid out? Is the strategy consistent with sound marketing

principles? If the strategy takes exception to marketing principles, is there a goodreason for it?

3. To what target market is the strategy directed? Is it well defined? Is the marketlarge enough to be profitably served? Does the market have long-run potential?

4. What competitive advantage does the marketing strategy offer? If none, whatcan be done to gain a competitive advantage in the marketplace?

5. What products are being sold? What is the width, depth, and consistency of thefirm's product lines? Does the firm need new products to fill out its product line?Should any product be deleted? What is the profitability of the various products?

6. What promotion mix is being used? Is promotion consistent with the productsand product images? What could be done to improve the promotion mix?


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7. What channels of distribution are being used? Do they deliver the product at theright time and right place to meet consumer needs? Are the channels typical of those used in the industry? Could channels be made more efficient?

8. What pricing strategies are being used? How do prices compare with similar products of other firms? How are prices determined?

9. Are marketing research and information systematically integrated into themarketing strategy? Is the overall marketing strategy internally consistent?

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