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Teaching Plan

Subject :-

Faculty :-
Prof. M. Yaseen Khan
ALL PROGRESS IS BORN OF INQUIRY.
DOUBT IS OFTEN BETTER THAN OVER-
CONFIDENCE, FOR IT LEADS TO INQUIRY
AND INQUIRY LEADS TO INVENTION.

Marketing Today
The course aims at making students understand
concepts, philosophies, process and techniques of
managing the marketing operations of a firm.
PEDAGOGY
MAJOR ASSIGNMENT
LIVE PROJECT
– 10 OTW & 6 Contact Hrs.
MINOR ASSIGNMENTS
-04 OTW & 4 Contact Hrs.
CASE STUDY (04)
– 04 OTW & 04 Contact Hrs
CLASS ROOM LECTURES
- 36Hrs

Total Class Total Total


Room Assignment/ OTW
Lectures Presentation Hrs
36 14 18
Code Details of Assignments/Presentations
1. Visit the following places in Gr. NOIDA:-
(a) Reliance Super (g) McDonald
MS106.1. (b) SRS 7Days Food Court (h) Domino’s Pizza
(c) Sabka Bazar (i) PHD (Ansal Plaza)
2
(d) Honey Money Top (j) KFC (Ansal Plaza)
(e) Reliance Fresh (k) Koutons (Ansal Plaza)
(f) Croma (l) Raymond (Ansal Plaza)

2. Answer the following questions:-


(a) What is the customer base of the business?
(b) What is the USP of the business?
(c) What are their average daily footfalls and sales?
(d) How is the business being sustained?
(e) What marketing communication mix they use to promote their outlet/s?

Live Project: Analysis of marketing strategies of the following brands in


MS106 Greater Noida:
.1.5 1. Whirlpool-Washing Machine 2. Parle-G
3. Yamaha-Motorcycle 4. Sony LCD
5. Moser Baer CD 6. Kailash
Hospital
7. Cadbury Chocolate 8. Nokia
Mobile Phones
9. LIC of India 10. Airtel-DTH
Code Unit/Activity Hrs. for OTW
Pns
106.1. Concept of Marketing Case-1 2
D Mixes
(Major Case)

106.3. Communication Case-2 2


A Process
(Minor)
 ABC, RFI, STP, SKU, SBU,POP, DAGMAR, EDLP
 arm’s length price, augmented product,
available market, meta-market, line pruning,
brand personality, fad, encirclement attack,
aerial-arena advertising, reference price, pull
strategy, push strategy, yield pricing, green
ocean market, red ocean market, network
marketing, niche marketing, Experience
Curve…………and so on.
SCHEME OF EVALUATION

Evaluation Parameters Marks Weightag


e

Written Internal Test 50 15


Live Project- Viva-Voce (Live 30 15
Project).
Quiz Test 10 5
Assignments/Presentations 10 5
TOTAL 100 40
Suggested Reading:
BOOKS
1. Kotler/Jha, Marketing Management(13-e) -PHI
2. Joel Evans/Barry Berman, Marketing Management-CENGAGE Learning
3. Ramaswami/Namakumari, Marketing Management-Macmillan Publishers.
4. PK Agrawal, Marketing Management, Pragati Prakashan
5. Czinkota/Kotabe, Marketing Management, Thomson Publication

MAGZINES
1. Pitch
2. Marketing Mastermind-ICFAI
3. USP-Age
JOURNALS
1. Journal of Marketing-American Marketing Association
2. HBR
3. Indian Journal of Marketing
NEWSPAPERS
1. Business Line
2. Business Standard
Marketing Concept and Philosophy
At its very core are the customer and his or her satisfaction. The
marketing concept and philosophy states that the organization should
strive to satisfy its customers' wants and needs while meeting the
organization's goals. In simple terms, "the customer is king".
It is not something that the marketing department administers, nor
is it the sole domain of the marketing department. Rather, it is
adopted by the entire organization.
Wal-Mart's motto of "satisfaction guaranteed" is an example of the
marketing concept.

EVOLUTION OF THE MARKETING CONCEPT AND PHILOSOPHY


Three major philosophies of marketing- are the product, selling, and marketing
philosophies.

PRODUCT PHILOSOPHY
The Industrial Revolution
The product philosophy holds that the organization knows its product better than
anyone or any organization.
The company knows what will work in designing and producing the product and
what will not work.
This confidence in their ability is not a radical concept, but the confidence leads
to the consumer being overlooked.
This philosophy of only relying on the organization's skill and desires for the
still operates using the product philosophy. The
gunsmiths produce single-shot rifles using the
technology available during the 1700s. They are only
able to produce about four or five rifles every year,
and they charge from $15,000 to $20,000 for each
rifle. However, the high price does not deter the
demand for the guns; their uniqueness commands a
waiting list of three to four years. Today's
Williamsburg Gunsmith Shop situation was typical for
organizations operating before the Industrial
Revolution. Most goods were in such short supply that
companies could sell all that they made.
Consequently, organizations did not need to consult
with consumers about designing and producing their
products.
When mass production techniques created the Industrial
Revolution, the volume of output was greatly increased. Yet the
increased production of goods did not immediately eliminate the
shortages from the pre-industrial era.
SELLING PHILOSOPHY
 The selling era has the shortest period of dominance around
1930 and stayed in widespread use until about 1950.
 The selling philosophy holds that an organization can sell any
product it produces with the use of marketing techniques, such
as advertising and personal selling. It assumes that a well-trained
and motivated sales force can sell any product.
 Organizations could create marketing departments that would be
concerned with selling the goods, and the rest of the
organization could be left to concentrate on producing the goods.
 The reason for the emergence of the selling philosophy was the
ever-rising number of goods available after the Industrial
Revolution.
 Organizations became progressively more efficient in production,
which increased the volume of goods.
 With the increased supply, competition also entered production.
 The selling philosophy also enabled part of the organization to
keep focusing on the product, via the product philosophy. In
addition, the selling philosophy held that a sales or marketing
department could sell whatever the company produced.
MARKETING PHILOSOPHY
 However, more companies began to realize that it is
easier to sell a product that the customer wants, than
to sell a product the customer does not want. When
many companies began to realize this fact, the selling
era gave way to the marketing era of the marketing
concept and philosophy.
 The marketing era started to dominate around 1950, and it
continues to the present.
 The marketing concept recognizes that the company's
knowledge and skill in designing products may not always be
meeting the needs of customers.
 It also recognizes that even a good sales department cannot
sell every product that does not meet consumers' needs.
 When customers have many choices, they will choose the one
that best meets their needs.
 The marketing concept and philosophy states that the
organization should strive to satisfy its customers' wants
and needs while meeting the organization's goals. The
best way to meet the organization's goals is also by
meeting customer needs and wants.
 The marketing concept's emphasis is to understand the
customers before designing and producing a product for
them. With the customer's wants and needs incorporated
into the design and manufacture of the product, sales and
profit goals are far more likely to be met.
 The idea of keeping close to the organization's customers
seems simple. In reality, it is very easy to forget the
customer's needs and wants. Sometimes the
management is so involved with the product that their
own desires and wants begin to take dominance, even
though they have adopted the marketing concept.
 For example:-
Many years ago—before there was a Subway on every corner—a
college student opened a small submarine sandwich shop near his
university's campus. The sub shop was an immediate success. By
using the marketing concept, the young entrepreneur had
recognized an unmet need in the student population and opened a
business that met that need.
Unfortunately, the story does not end at this point. The sub shop
was so successful that it began to outgrow its original location after
about three years. The shop moved to a larger location with more
parking spaces, also near the university. At the new sub shop,
waiters in tuxedos met the students and seated them at tables with
tablecloths. Besides the traditional subs, the shop now served full
meals and had a bar. Within a few months the sub shop was out of
business. The owner of the shop had become so involved with his
business vision that he forgot the customers' needs and wants. They
did not want an upscale restaurant—there were other restaurants in
the area that met that need, they just wanted a quick sub sandwich.
By losing sight of the customers' wants and needs, the owner of the
sub shop lost his successful business.
How Marketing Evolves

Marketing Marketing
Barter Production Sales
Dept. Era Co. Era
Era Era Era

Supply Supply
One- Demand Supply
Exceeds Exceeds
on-One Exceeds Equals
Demand Demand
Trading Supply Demand

Marketing Integrated
a Sub- Role for
sidiary Marketing
Function
Marketing Process
Good Marketing is No
Accident
Business successsuccess
The roaring is not determined by producer but by
customers.
of four-wheeler Tata
Ace, in a market
earlier dominated by
three-wheeler load
carriers, was due to a
deep understanding
of the market needs
and customer
requirements.
What is Marketing?
Marketing is an organizational function and a set of
processes for creating, communicating, and delivering
alue to customers and for managing customer relation
ships in ways that benefit the organization and its
stakeholders.
-AMA-2

Marketing is the Anticipation, Management, and


atisfaction of demand through the exchange process.
-Evans/Berm
What is Marketing
Management?
Marketing management is the
art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.
Mnemonic: Definition of
Marketing
A
M S
F

S R

exchange process
Definition of Marketing
 Anticipation of Demand requires a firm to do
consumer research in anticipation of market’s
potential and consumers’ desires.
 Management of Demand includes:
Stimulation: motivates consumers to want firm’s
offerings
Facilitation: makes it easy to buy offerings
Regulation: involves balancing inventory to
consumer demand
Definition of Marketing
 Satisfaction of Demand involves product availability,
product performance, perceptions of safety, and
after-sale services.
 An Exchange Process includes the agreement for
payment: cash/credit/promise to pay or support for a
firm, institution, idea, or place.
What is Marketed?
Goods
Goods
Services
Services
Events
Events &
& Experiences
Experiences
Persons
Persons
Places
Places &
& Properties
Properties
Organizations
Organizations
Information
Information
Ideas
Ideas
Demand States

Negative Nonexistent Latent

Declining Irregular

Full Overfull Unwholesome


Structure of Flows in a Modern
Exchange Economy
A Simple Marketing
System
Key Customer Markets
Consumer Markets Global Markets

Business Markets Nonprofit/ Government Markets


Core Marketing Concepts

 Needs, wants, and  Value and satisfaction


demands  Marketing channels
 Target markets,  Supply chain
positioning,  Competition
segmentation
 Marketing
 Offerings and brands environment
The Four P’s
Internal Marketing

Internal marketing is the task of


hiring, training, and motivating able
employees who want to serve
customers well.
Performance Marketing
 Financial Social Initiatives
 Corporate social marketing
Accountability
 Cause marketing
 Social
 Cause-related marketing
Responsibility
 Corporate philanthropy
Marketing
 Corporate community
involvement
 Socially responsible
business practices
Marketing Performers

Final
Manufacturer Consumer Organizational
or Service Consumer
Provider

Basic
Marketing
Performers
Marketing
Wholesaler Specialist

Retailer
The Marketing
Concept

Goal
Consumer
Orientation
Orientation

Marketing
Concept
Market-Driven Integrated
Approach Marketing
Focus
Value-Based
Philosophy
Contrast in Marketing/Selling
Philosophies
Focus of Selling
Philosophy

Production Selling Consumption


Focus of Marketing
Philosophy

Consumer Integrated Achievement of


Consumer
Marketing Organizational
Need Satisfaction Goals
Evaluation Effort

Feedback
Selling Philosophy

 Output “Sold” to Consumers


 Looks at Individual, Single Consumer
 Seeks Sales Rather than Profit
 Short-Term Goal Orientation
 Concerned with Current Inventory Reduction
 Narrower View of Consumer Needs
 Little Adaptation to Environment
 Informal Planning and Feedback
Marketing
Philosophy

 Consumer-Oriented  Two-Way Interactive


 Stresses Research Process
and Consumer  Appropriate
Analysis Adaptation to
Mkting Environment
 Looks at Groups of
Consumers
 Broad View of
Consumer Needs
 Profit-Oriented  Integrated Planning
 Directed to Long- and Feedback
Range Goals
Factors That Affect
Customer Satisfaction

Friendly Employees Courteous Employees

Helpful Employees Knowledgeable Employees


Overall
Customer
Satisfaction Accuracy of Billing
Quick Service

Billing Clarity Billing Timeliness

Courteous Employees
Good Value Competitive Pricing
MARKETING MANAGEMENT
PROCESS
Analyzing Market Structure and Behaviour

Researching and Selecting Market


Opportunities

Developing Market Strategies

Planning Marketing Tactics

Implementing and Controlling the Marketing


Effort
Environment of Marketing
Analyzing Market Structure and
Behaviour
Parts of Environment
Controllable Uncontrollable  Controllable Factors
Factors Factors  Uncontrollable
Factors
Organization’s  Organization’s Level
Level of
of Success/Failure in
Reaching Objectives
Success  Feedback
Adaptation
 Adaptation
Feedback
Environment of Marketing
(2)
Uncontrollable Factors

(3)
(1) Consumers
Organization’ Competition
Controllable Factors
s Level of B Suppliers & Distributors
Success or
Government
By Top Management A Failure in
Reaching Its Economy
Objectives Technology
(5)
By Marketing Adaptation Independent Media
(4) Feedback

A - Total offering of the organization


B - Impact of uncontrollable factors
Types of
Environments
 Macroenvironment refers to
the broad demographic,
societal, economic, political,
technological forces that an
organization faces.
 Microenvironment refers to
the forces close to an
organization that have a direct
impact on its ability to serve its
customers.
Analyzing Market Structure and
Behaviour
A company’s marketing environment consists of
the actors and factors external to the marketing
management function of the organization that
impinge on the marketing management’s ability to
develop and maintain successful
transactions with its target customers.

MICROENVIRONMENT (Immediate Environment)


Organization – Top management, finance, Manufacturing,
Accounting
Suppliers, Customers,
Competitors – Brand comp, Desire/Industry competitors, Form
comp, and Generic comp.
Publics-A public is a distinct group of people and / or organizations that
have an actual or a potential interest and / or impact on an organization.
Analyzing Market Structure and
 Example:
Behaviour

AIMT:
Faculty, Administration and staff, Parents of students, High
School Teachers, Current students, alumni, prospective
students, mass media, general public, local community,
Government Agencies, Foundations and Trusts that provide
scholarships, Business Community including industry,
suppliers, competitors, Board members or trustees.

 Types of Publics: Input Publics (Support, Supplier & Regulatory),


Internal Publics, Agent Publics, Consuming Publics (Consumer,
customer, influencer & General) Publics also referred to as
stakeholders.
Analyzing Market Structure and
 Behaviour
MACROENVIRONMENT (Large Societal Forces)
 Demographic: Population Growth, Migration, Birth Rate, Aging, Marriage age,
No. of children / family, Divorce Rate, Working Women, Non-family
households, Education, Ethnic & Racial Profile

 Economic: Real Income Growth, Inflation, Recession, Consumer Savings &


Debt, Consumer Expenditure Patterns, Interest Rate & Exchange Rate

 Physical: Shortages of certain raw materials, Cost of Energy, Pollution

 Technological: Technologies for nations, for Products and for business Model
 Social / Cultural: Values, Time-Starved Customers, Multiple Lifestyles, the
changing structure of family.
 Political / Legal: Political Structure, Stability, Govt. Interventions, Attitudes
towards the business, foreign policy. Ex. KFC, Wal-Mart, IPL etc.
Political / Legal:
Political Structure, Stability, Govt. Interventions,
Attitudes towards the business, foreign policy. Ex.
KFC, Wal-Mart, IPL etc.
Marketing
Environment of
India
The Two Indias and The Many
Indias
 The two Indias

 The many Indias: the country of


contrasts
 Wide disparities in economic
condition and income distribution
indicate many Indias
 The ‘two-India’ view does not
constitute a correct reflection of
India
 There are Indias within urban India
and Indias within rural India
 With some Indias, much has
changed; with others, almost
nothing has changed.
Performance of the Indian
Economy
 The Past Story
 The economy climbs on to a higher growth trajectory

 The Present
 A trillion dollar economy: India’s GDP crosses $ 1 trillion in FY 07
 Per capita income rises to Rs 29,382 per year
 The fourth largest economy in the world and heading to be the third
 Also the second fastest growing
 Set to stay on a reasonably high growth trajectory
India’s Consumer Environment
 India’s Markets
 Second largest market in the world.
 Fastest growing market in passenger cars, cell phones, travel and tourism, DVDs, dig-
cams, and laptops, among other things.

The size of India’s consumer market was around US$ 383 million in 2003-04.
India’s Consumer Environment
 FMCG and FMCD Sectors
 FMCD Spurt: mobile sets/ACs/Twowheelers/passenger cars
etc.
• Steady growth due to rising consumer income and falling
prices.
 Call of the Mall : The Retail Boom
 India’s retail industry expected to hit $ 255 billion in 2010
 According to a CII Report, the year 2010 will see a 10 per
cent contribution by modern retail to all FMCG.
 In metros, this figure is expected to be 30 per cent.

The Media, Advertising and Entertainment Scene


 The Media Revolution
 TV spearheading the media revolution
The Rural Marketing
Scene
 Rural income now exceeds urban income by handsome margin
 Rural market accounts for a large share of the expenditure on
manufactured and branded consumer goods.

 Rural children take to English education


 30% of rural children go to private English medium schools
 Rural market carries huge opportunities; also huge challenges
The Negative Aspects

 India a Superpower? Think Again


 India remains a world leader in hunger, illiteracy and HIV.
 Biggest single problem is the lack of jobs for ordinary people.

 Inflation an Obstacle; Growth Coupled with Low Inflation is Becoming


Difficult
 In 2008 Inflation crossed 12%
 Agriculture remains in shackles
 Manufacturing has not boomed
 Oil Imports and high oil prices continues as a burden
 Infrastructure inadequacy
 Investment is the key and it is not easy to come by
 Weak fiscal position

International Institute for Management Development (IMD), a leading business


school in Lausanne, Switzerland,
Negative Aspects
 Still Poor in Global Competitiveness
 The IMD survey

 World Bank’s ‘doing business survey’

 India is 116 out of 155 countries.


 Rating by Transparency International
 India very high at corruption level.
Researching and Selecting Market
Opportunities
Moving beyond general terms to specifics and carrying out an
analysis of Market Structure.
 First Step – Define the Market
 Define the general boundary conditions of the market. Determine all the actual and
potential members of the market.

Market: a collection of buyers and sellers who transact over a particular product or
product class.
Marketplace: Physical entity
Market space: Digital entity
Metamarket: a cluster of complementary products and services that are closely
related in the minds of consumers, but spread across a diverse set of industries.

ASK YOURSELF-
 Are we in the health service market or smokers’ clinic or maternity home or
children’s nursing home?
 Are we a technology institute or a general educational institute (problem facing
IIT’s)?
Second Step –
 Market Segmentation- dividing the market into fairly
homogenous parts where any part may conceivably be
selected as market target to be reached with a distinct
marketing mix.
 Typical segmentation variables are as follows:
 Geographic – Region, State, Country, Rural / Urban,
Climate
 Demographic – Age, Sex, Family size, Family life cycle,
Income, Occupation, Education, Religion,
 Caste, Race, Nationality, Social Class
 Psychographic – Life style, Personality, Benefits sought,
User status, Usage rate, Loyalty status, Readiness stage.
 LEVELS OF MARKET SEGMENTATION

Mass Marketing
 Seller engage in mass-production, distribution and promotion-
of one product.
Advantages-
a) Largest potential market
b) Lowest cost– lower price---higher margin
Disadvantages-
a) Difficult to reach Splintering Market
b) Proliferation of advertising and
distribution
Ford’s Model T Followed a Mass Market
Approach
Four levels of Micromarketing

Segments Niches

Local areas Individuals


What is a Market
Segment?
 A market segment consists of a group of customers who share a similar set of
needs ad wants.
 Company can offer better design, price disclose, and deliver product/service.
Fit to the marketing program in a better manner.

Flexible Market Offering- not everyone in the segment wants exactly the
same product.
Naked Solution- the product and service elements that all segment members
value.
Discretionary Option- That some segment members value, each option might
carry additional charges.
Segment Marketing Whole Market

Segment
Market
Naked
Solution

Flexible
Market
Offerings

Discretiona
ry Options
Preference
Segments
 Homogeneous preferences exist when
consumers want the same things
 Diffused preferences exist when consumers
want very different things
 Clustered preferences reveal natural
segments from groups with shared
preferences
Bank Al
Habib
targets
senior
citizens
Dove Targets Women
Niche Marketing
More narrowly defined customer group seeking a distinctive
mix of benefits. It is dividing segment into sub-segment.

What does an attractive niche look-like?


1. Distinct set of need
2. They pay a premium to the firm that best satisfy them.
3. It is fairly small but has size, profit and growth potential.
4. It is unlikely to attract other competitors.
5. It gains certain economies through specialization.
Niche Marketing
 EXAMPLES:
 Hair Oil for Baby by J&J
 ICE-CREAM- for health conscious and diabetic consumers by
AMUL-Vanila in Chocolate, Fresh Lichi, Shahi Anjeer etc.
 VICO Vajradanti, MESWAK Toothpaste, NEEM Active by
Henkel.
 Crack Cream and Itch Gaurd by PARAS.
 Ezee by Godrej
 QTV in Pakistan and Astha in India
 Hallmarks greeting cards.
 Himalya Drugs
 ‘Plus-Sized Fashion’ by Revolution
Gather.com:
A Niche Social Networking Site
The Himalaya
Drug Company
serves a
growing niche
market by
focusing on
ayurvedic
medicines and
health
Local Marketing
Marketing Programs tailored to the needs and wants of local
customers groups in trading areas, neighborhoods, even
individual stores.
EXAMPLES:
 Specialized bank branches for:-

a) Corporate customers in industrial areas


b) NRI Bank branches in Kerala.
 CROSS-ROADS

 Yellow Pages

 ‘In-City’ courier

 One movie in different language

 Bharat Matrimony
Individual Marketing

Segment of one –customized


marketing– one-to-one
marketing
Berger Paints, Asian Paints
Arvind Mills- Ruff and Tuff Jeans-
ready to stitch jeans
United Bank
Ltd. of
Pakistan
offers
customized
Galleria
credit cards
to its
customers
Researching and Selecting Market
Opportunities
 Third Step – Market Targeting
 Market Segmentation reveals the market segment opportunities
facing the organization. Now it has to evaluate the various
segments and decide how many to serve.
 a) Evaluating the Market Segments
 b) Decide a Market Coverage Strategy – Undifferentiated
marketing, Differentiated marketing, Concentrated or Niche
marketing
 Need based market segmentation.
BANKS

CURRENT INCOME ASSETS SAVING RISK


PREFERENCE
Effective Segmentation
Criteria
Measurable
Measurable

Substantial
Substantial

Accessible
Accessible

Differentiable
Differentiable

Actionable
Actionable
Patterns of
Target Market Selection
Patterns of
Target Market Selection
Patterns of
Target Market Selection
The
Revolution
brand of
ready-made
women’s
apparel
successfully
focuses on the
niche
Segment-by-Segment Invasion Plan
Pepsi used Megamarketing in
India
EXAMPLES
TITAN – Successful Segmentation and Targeting
After carrying out an in-depth market study, Titan
identified three distinct market segments for its
watches. The segments were arrived at using
benefit and income level as the bases.
a) The first consisted of the high income / elite
consumers who were buying a watch as a fashion
accessory not as a mere instrument showing time.
They were also willing to buy a watch on impulse.
The price tag did not matter to this segment.
b) The next segment consisted of consumers who
preferred some fashion in their watches but to
them price did matter. While they had the capacity
to pay the price required for a good watch, they
would not purchase a watch without comparing
various offers in the market.
c) The third segment consisted of the lower-income
consumers who saw a watch mainly as a time-
 For the first segment, Titan offered Aurum and Royale
in the gold/ jewellery watch range. They were stylish
dress watches in all gold and precious metals. The
prices ranged between Rs.20,000 and Rs. 1 lakh.

 For the middle segment, Titan offered the Exacta range


in stainless steel, aimed at withstanding the rigours of
daily life. There were 100 different models in the range.
The price range was Rs.500-700. Titan also offered the
RAGA range for women in this segment. And, for the
third segment, Titan first offered the TIMEX watches
and later, when the arrangement with Timex was
terminated, the SONATTA range. The price range was
Rs. 350 – 500. It was offered in 200 different models.
Titan also offered the “Dash!” range for children. In-
depth segmentation helped Titan launch segment-
specific products.
BATA – Wrong Target
 In the early 1990s, Bata decided to embrace the high-end
segments of the Indian shoe market as a part of its target
market. It launched quite a few brands for this segment
with higher price tags. The move landed Bata in trouble.
This segment was not meant for Bata. In the first place,
this segment was not sizable for a company like Bata.
Second, the segment did not gel with Bata’s distinctive
competence. The segment constituted a mere 5 to 10 per
cent of the footwear market in India. It could not provide
the volumes that Bata was used to at the mass end and
high volume was essential for Bata for having a healthy
bottom line. Worse still, the adoption of the segment
misdirected Bata’s entire strategy. The top end of the
market suddenly became the main focus of the company
and it forgot its bread-and-butter shoes that had given the
company its identity. And, small regional players started
nibbling away at Bata’s mainstay.
Actually, Bata was squeezed at both ends. At the lower
end, smaller competitors attacked Bata’s mass range in
canvas shoes, school shoes and Hawaii chappals –
slots, which the company had practically vacated on its
own by ignoring them completely. At the high end, niche
players, who were better prepared, were challenging
Bata. From a market share of around 15 per cent in the
mid-1980s, Bata found its share slide down to 10 per
cent of the footwear market in mid-1990s. The year 1995
saw the company running a loss of Rs. 42 crores. After
learning the lesson the hard way, Bata did an about-turn
from its adventure with high-end segment and returned
to the mass segment. The new strategy was to get back
to the original customers at the low end and keep that
part of the market as its core focus. The company, of
course, did not totally give up the new segment it had
got into in the early 1990s. Brands like Hush Puppies, for
example, continued to be sold by Bata, but in a selective
way and through select stores only.
Fourth Step – Positioning

 Positioning is the act of designing the


organization’s product and marketing mix to fit a
given place in the consumer’s mind.
 Glamour – fashion products, perfumes, cosmetics
 Premium – better and superior value (Jet Airlines vs.
Indian Airlines)
 Value for money – better and superior value at
affordable price (Maruti 800)
DEVELOPING MARKET
 Marketing Strategy isSTRATEGIES
the marketing logic by which the business
unit expects to achieve its marketing objectives. Marketing
strategy consists of making decisions on the business’s
marketing expenditures, marketing mix, and marketing
allocations in relation to expected environmental and
competitive conditions. Marketing Mix is the mixture of
controllable marketing variables that the organization uses to
pursue the sought level of sales in the target market.
 Marketing Mix Variables – 4 P’s
 Product – Product Variety, Quality, Features, Options, Style,
Brand Name, Packaging, Sizes, Services, Warranties, Returns
 Price – List Price, Discounts, Allowances, Payment Period,
Credit Terms, Mode of Payment
 Place – Channels, Coverage, Locations, Inventory, Transport
 Promotion – Advertising, Personal Selling, Sales Promotion,
Public Relations, Direct Marketing
PLANNING MARKETING
STRATEGIES/TACTICS

Strategy is broad direction.


Tactics is detailing.
What is a Marketing Plan?

A marketing plan is the central instrument


for directing and coordinating the marketing
effort.
It operates at a strategic
and tactical level.
Levels of a Marketing Plan

 Strategic  Tactical
 Target marketing  Product features
decisions  Promotion
 Value proposition  Merchandising
 Analysis of marketing  Pricing
opportunities  Sales channels
 Service
The Strategic Planning,
Implementation,
and Control Processes
Corporate Headquarters’
Planning Activities
 Define the corporate mission
 Establish strategic business units (SBUs)
 Assign resources to each SBU
 Assess growth opportunities
Good Mission Statements

Focus
Focus on
on limited
limited number
number of
of goals
goals

Stress
Stress major
major policies
policies and
and values
values

Define
Define major
major competitive
competitive spheres
spheres

Take
Take aa long-term
long-term view
view

Short,
Short, memorable,
memorable, meaningful
meaningful
Major Competitive Spheres

Industry

Geographical Products

Vertical
channels Competence

Market
segment
Infosys Technologies Limited

“To achieve our objectives in an environment


of fairness, honesty, and courtesy towards
our clients, employees, vendors, and society
at large.”
eBay

“We help people trade anything on earth.


We will continue to enhance the online
trading experiences of all—collectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.”
Product Orientation vs. Market
Orientation
Company Product Market
Xerox We make copying equipment We improve office
productivity

Columbia We make movies We entertain people


Pictures

Encyclopedia We sell encyclopedias We distribute


Britannica information

Carrier We make air conditioners and We provide climate


furnaces control inside homes