Marketing Strategies and practices (English Version)-munotes

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1 Module I
1
INTRODUCTION TO MARKETING
STRATEGIES
Unit Structure
1.0. Objective
1.1. Introduction
1.2. Marketing Opportunities and Plans
1.3. New Marketing Strategies
1.4. Summary
1.5. Exercise
1.6. References
1.0 OBJECTIVES

 To understand marketing strategies and underlying concepts
 To study the evolution of marketing strategies, from conventional to
contemporary.
 To examine the importance of marketing strategies for today’s firms.
 To understand the methods of identifying market opportunities and
thereby develo ping plan for marketing
 To find essential elements of marketing plan
 To develop an understanding for new concepts of marketing.
1.1 INTRODUCTION
The word Marketing has been derived from a latin word “Mercatus”
which means market place or merchant. This wo rd was first used in 1897
in business. Hence, Marketing can conventionally be understood as a
process of moving goods from producer to consumer with emphasis on
sales and promotion.
The process of Marketing has evolved immensely over the years. Today, it
is just not selling product but has 360 degree approach which includes all
the stakeholders. It begins before the production of goods or services and
continues even after sale. It has undergone a drastic evolution especially
after industrial revolution. To day, as we have shifted from need -based
economy to desire -based economy, market has moved from product -
centric process to customer -centric process. munotes.in

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2 Hence, Kotler and Armstrong (2010) defined Marketing as the social
and management process by which individua ls and organizations obtain
what they need and want through creating and exchanging value with
others.
Strategies, on the other hand, is a word which has been derived from
ancient Greek word “Strategos” which means general (or leader of an
army). This word was originally used in military and warfare and was
adopted in business management in 1960s. The word Strategy has been
defined in many ways in business management. In simple words, it can be
understood as plan of action designed to achieve long -term goal s. Few
popular definitions of strategies are
According to Von Neumann & Morgenstern (1947), strategies are the
series of actions taken by an organization based on the situation.
Peter Drucker (1954) defined strategies as a process of analyzing present
situation and changing it as and when necessary. It also help in analyzing
what are the resources possessed by the organization and what they should
be.
Chandler (1962) defined strategy as a determinant of the long -term goal
of an organization. It is accomplis hed by adopting courses of action and
allocation of necessary resources in process of accomplishing these goals.
According to Newman and Logan (1971), Strategies are forward -looking
plans that anticipates change and initiate action to take benefit of an
opportunity that are integrated within the mission of the firm.
Mintzberg (1998) described strategies as a mediating force between
organization and its surroundings.
Strategies operate at four levels: Corporate Level, Business (SBU) Level,
Functional Level a nd Operational Level.
Corporate Level strategies are the plan of actions undertaken by a firm to
gain competitive advantage by selecting, managing and eliminating
different businesses competing in different product market. The types of
corporate level stra tegies are broadly categorized into four, growth,
stability, retrenchment and combination strategies
Business Level strategies on the other hand focuses on a single business
dealing with how to create and deliver value to customers while also
making sure o f competitive advantage.
Functional Level strategies can be born out of business level strategies, but
has the scope within a functional area (eg. Marketing, finance, Human
resource etc.). Here each functional area (department) determines its own
goals ba sed on business goals and align its own resources and their
allocation. It is the most detailed strategies.
The functional level strategies to strategies for day to day working of the
organization called as operational level strategies. These strategies a re also munotes.in

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3 called as tactical decisions as they are framed for short duration to
maintain continuity of work based on functional goals.
The Marketing strategies are a type of functional level strategies.

Figure1.1: The Hierarchy of Strategies
Source: Market ing Strategies A Decision -Focused Approach, Walker O.,
Mullins J.
1.1.1.Concept of Marketing Strategies
In very basic terms, the strategies evolved for promoting and selling
product or service are said to be Marketing Strategies. The concept of
marketing h as multiple dimensions so is the case of Marketing Strategies.
With the evolution in the concept of marketing, the definitions of
Marketing Strategies have also evolved over the years.
According to Baker, Michael John (2008), Marketing Strategy is the
process by which a firm acquires sustainable competitive advantage by
concentrating its limited resources on the best available opportunities to
increase its sales. Marketing strategies help in using marketing as a link
between organisation and its customers.
Philip Kotler & Kevin Keller in their book Marketing Management define
Marketing Strategies as a process to identify target market and value
proposition offered to it on the basis of analysis of opportunities available
in that market.
Hence, Marketing St rategy can be defined as a comprehensive plan of
action formulated for achieving marketing objectives of the organisation. munotes.in

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4 On one hand, Marketing Strategies deal with choice of action to be taken
on the basis of opportunities and challenges imposed by the environment
to achieve the goals, Marketing Management deals with implementation of
these action plans by arranging resources and coordinating so that the
strategy brings out desired results.
Hence, marketing strategies are the building blocks of marketing plans of
a firm
1.1.2 Evolution of Marketing Strategies

Figure: 1.2 Changes in concepts of Marketing over the years
Marketing has been there since hundreds of years. But during these years
it has undergone tremendous changes. The changes can be seen thr ough
these concepts.
1. The Exchange Concept:
This was prevalent before industrial revolution. The buyer did not
have much choices. The sellers did not have competition as number of
firms were very limited. The essence of marketing during this time
was the s eller used to exchange goods of service against money.
Customer did not have choice and had to buy the only product
available. Customer’s convenience and choice was not taken into
consideration. Emphasis was given to profit. The concept of market
research, research and development, innovation, after sales service
and customer satisfaction was not at all important.

2. The Production Concept:
This concept initiated during and after Industrial revolution. This time
was characterized large volume of production a nd affordability of
customers was declining due to economic stress. Hence, the essence
of marketing during this time was that the consumer will buy the
products which are widely available and are lesser in price. Marketers
believed in bringing economies of scale by undertaking large scale
production to reduce the cost of production. Therefore, to maximize munotes.in

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5 profit the management adopted the strategies of large scale
production, wide distribution and lowest possible price.

3. The Product Concept:
This concept was based on the fact that consumer prefer to buy
products which are better than others. Hence, focus was product
excellence. Improvement in products in terms of quality,
performance, appearance and features were done to attract the
customers. The organiza tions focused on adding unique features to the
product and making it better in terms of utility. But these
improvements and betterments were not based on customers’
preferences and desires. Neither was it focused on customer
satisfaction. Minimal market re search was conducted before bringing
changes in the products. This concept was suffering with Market
Myopia as it did not serve its purpose of profit maximization for long.

4. The Selling Concept:
This concept focused on aggressive promotion and sales. The
companies wanted to sell whatever they produced, rather than
producing what they can sell. Importance was given on
communication to the customers to attract them to buy the products.
Many firms suffered with over -capacity and were aggressively
looking for o pportunities to sell. Many a times the firm spent
aggressively on promoting the products which the customers are not
willing to buy or which has a saturated market.


Figure 1.3: The Selling Concept in Marketing which focuses on
making the product availab le and luring customers by keeping
price low

5. The Marketing Concept:
Finally, in this phase the focus shifted to customers. Attention was
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6 Research was conducted to understand the customers nee d and
desires and marketing plans were made based on that. Profits were
earned by integrated marketing efforts and understanding customer
needs.

Figure 1.4: The Marketing Concept of marketing product is
designed keeping in mind customer preferences and designing
marketing mix based on it

6. The Societal Marketing Concept:
In this the social well -being was also integrated in the concept of
marketing. Social well -being includes well -being of not only
consumer but also society at large. Marketers do not just market
product but also promote the socially responsible behavior
exhibited by the company while conducting their businesses.
Detailed research is conducted to understand the customers need,
want and desire and provide products and service which will give
delight to the customers. The firms attain edge over the
competitors by having happier customers and better image due to
socially responsible behavior.

Figure 1.5: The Societal Marketing Concept does not only provide
satisfaction to the customer but als o enhances the image of brand
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7. The Relationship Marketing:
The focus in this concept goes beyond customers. It emphasizes on
enduring and sustained relationship with all key people associated
with and within the organization. These people can be marketing
partners like distributors, retailers, wholesalers and other
intermediaries; financial partners like funders, shareholders,
financial institutions etc. and employees and management etc. It is
believed that all t hese stakeholders play direct and indirect role in
serving the customers better. The organization should develop
strategies for creating effective network with all the internal and
external stakeholders.

Figure 1.6: The Relationship Marketing works for n ot only having
a satisfied customers by continued relationship with them but also
focuses on developing and maintaining healthy relationship with
all stakeholders who help serving customers.

8. The Holistic Marketing Concept:
The modern marketing strategists today adopt Holistic Approach . They
believe that marketing starts within the organisation. Marketing is not
solely the job of a dedicated marketing department but all the departments
of the organisation need to join hands. This is known as Holistic
Orienta tion. The entire organisation, right from finance to human resource,
R& D to production have to work together to deliver right product in price
at right place to the customers. To get this result, all the stakeholders of
the organisation like employees, su ppliers, buyers, shareholders, funders
etc. are treated like customers. As they will be able to serve better, if they
are served well.
Some key components of Holistic Marketing concept are
 Internal marketing : Marketing (coordination and cooperation)
between all the departments in an organization
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8  Relationship marketing : Building a better relationship with the
customers, interna l (employees, management etc.) as well as end
customers is beneficial for holistic marketing

 Performance marketing : Driving the sales and revenue growth of an
organization holistically (by involving all departments and
intermediaries) by reducing costs and increasing sales.

 Integrated marketing : Products, services and marketing should work
hand in hand towards to g rowth of the organization.


Figure 1.7: Example of Holistic Marketing Strategy – Samsung has
adopted holistic marketing by involving various organizational
function for providing satisfying service to the customers
1.1.3 Role/ Importance of Marketing Str ategies
Marketing strategies are formulated after marketing research. It helps the
organisation to make optimum use of its scarce resources. As it is based on
environmental analysis and intensive marketing research, it helps the firm
to make maximum benefi t from the opportunities and protects it by
minimizing the impact of threat.
Marketing strategies have the following role in an organisation:
1. Determining best Marketing Mix Combination: The firm need to
determine the right combination of marketing mix for providing best
value to customers. This is done by exhaustively studying the market
and customers.

2. Provides edge over the competitors: The marketing strategies are
designed for ensuring the firm’s performance in the market to be better
than that of the co mpetitors. It also help in countering the competitors’
strategies. The marketing strategies looks at the competitors’ weakness
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9 of it. Right marketing strategies also help in preventing new-entrants
to set their footprints in the market. The marketing strategies help in
creating USPs of the product and provides right direction for its
promotion. It helps in creating a distinctive identity of the firm.

3. Developing Goods or Services for Ma ximizing Profits: Ultimate
aim of any business firm is profit maximization. Today’s firm frame
smart strategies like cost leadership, synergistic marketing approaches
to keep the cost low, still satisfying customers to the maximum.

4. Identifying Opportuniti es for Organizaional Growth:
Growth of the organization has been depends on the opportunities
available in the competitive business world. According to the
available resources and capabilities of the organization respective
head of the marketing departmen t who look after the development of
strategy select the area in which they can use their full potential.
Marketing department of the organization grabs the opportunity and if
required any changes in the preformed strategy they can be done
accordingly so ma ximum output can be achieved from the selected
opportunity.

5. Enhances Departmental Coordination: All the functional strategies
are formulated on the basis of business strategies of the firm. Though
each department may have their own goals and objectives bu t all of
them in turn help in achieving the firms goals and objectives. Like any
other functional strategies, a well -formulated marketing strategies are
also designed so as to meet the firm’s business objectives and are in
line with the firm’s business str ategies.

6. Optimum Utilization of Resources: Marketing strategies
implementation helps in identifying, mobilizing and allocating all the
resources (physical, financial and human) accurately. This prevents
wastage and helps in best utilization of the scarce r esources.

7. Determining Scope and Budgeting the marketing activities: The
budget of a department in the organisation is based on their goals and
action plans to achieve them. A well -formulated marketing strategies
helps in determining the right budget. The right implementation plan
of the marketing strategy helps in optimal utilization of assigned
budget.

8. Identifying New Target Segment : During formulating the marketing
strategies the organisation studies the demographics like income level,
educational leve l, gender etc. of the population which gives an insight
on their interests, habits and needs. Based on these information the
firm can work upon their offerings and attract new set of customers by
promotional initiatives.

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10 1.1.4. Types of Marketing Strateg ies
The Marketers use the different combination of marketing mix (4Ps to
7Ps) to get advantage over the competitors in the market. The position of
the firm in the market plays a major role in deciding the strategies.
Following the strategies based on diffe rent positions in the market.
1. Market Leader Strategies: This is adopted when the firm enjoys
maximum share of market. Here the firm focuses on expanding the
market size, defending its share and increasing the relative market
share. It can be achieved by id entifying new segments for sale of
product, introducing differentiation (of price and product) to stand
apart from the competition and introducing scheme to infuse more sale
in the existing market segments. Leaders have to beware of
challenger’s strategie s and continuously work on their weak areas.

2. Market Challenger Strategies: The challengers work on identifying
the areas where the leader may be weaker like change of technology,
dissatisfied customers etc.

 The challengers can adopt frontal attack strat egy by adopting the
same features of goods and making choice for consumer difficult

 The challengers may take up flank attack if frontal is not possible or
otherwise too. Here challenger attack where ever the market leader
is weak or is caught off -guarded.

 The encirclement attack can be taken up by adopting both frontal
and flank attack at the same time

 The challengers can take less offensive course by capturing the
segments or markets which have not been taken up by leaders and
gradually increasing overa ll market share

 Guerrilla Strategy can be adopted by constantly engaging the leader
in price war or surprising the firm with very unique features of the
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Figure 1.8: Examples of Market leaders and challengers.
Marketing leaders are t he one who have highest relative market share and
work on defending its share and expanding it. Challengers are usually
second or third in terms of relative market share, but constantly attack the
leader for increasing their share or occupying markets wher e leaders have
weaker presence
3. Market Follower Strategies: These firms do not challenge or
compete with the leaders. They, in turn, follow the success strategies
of leaders and learn from them. The time tested marketing mix
strategies are adopted leading t o reduced risks.

Figure 1.9: Example of Market Follower.
Dell has been following the marketing strategies of Sony Vaio
4. Niche Market Strategies : It is adopted by small firms which would
like to have full control on small segment. This strategy is more co st
efficient as product differentiation will be created specially to cater to
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12 1.1.5 Formulation of Marketing Strategies
The process of development and implementation of Marketing Strategies
can visualized with the he lp of figure 1.2. The framework depicted in the
figure for planning and executing marketing strategies involve many
interrelated decisions about what to do, when to do and how to do. These
decisions are taken on the basis various market situations and anal ytical
tools and frameworks.

Figure1.10: The Process of Formulating and Implementing
Source: Marketing Strategies A Decision -Focused Approach, Walker O.,
Mullins J.
As seen in the figure, the business level objectives and strategies are
drawn from corpor ate level strategy and objectives which is turn are
formulated after thorough environmental analysis.
The process for formulating and implementing the marketing strategy for
specific situation comprises of the following steps:
1. Determining Objectives:
The objectives to be achieved by the marketing strategy are
determined on the basis of business objectives and strategy. The
business objectives help in determining what the firm wants the
marketing department to achieve.

2. Analysis of Marketing Environment:
Before determining the strategies, it is very important to thoroughly
analyse customers, competitors and company itself. These factors are
highly dynamic. As a result the strategy formulated may get modified
during its implementation. The four Cs analysis help in preparing a
good marketing plan. The four Cs include: munotes.in

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i. The Company’s Internal Resources: the company’s internal
resources, capabilities and strategies at different level need to be
examined exhaustively to formulate a workable strategy.

ii. The Envir onmental Context : The macro -external environmental
factors like socio -economical factors, political factors,
technological factors etc. in which a market exists have to be
understood with absolute detail for selecting right strategy for
marketing.
iii. The Com petitors’ Analysis: The trends in competitive
environment with close and continuous observation of
competitors’ strengths and weaknesses help in determining
upcoming opportunities. This analysis helps in anticipating
future environment in which the strateg y has to operate.

iv. Understanding Customers : Characteristics of the current
and/or potential customers is the focal point of all different
types of market analysis. Customers’ needs and wants, desires
and demands and details help in developing more realisti c
market strategies.

3. Integrating Marketing Strategies with other strategies of firm:
The strategies formulated at all levels need inputs from the market of
the firm to make it workable. On the other hand, the marketing
manager need to frame marketing obj ectives and strategy for a
particular product -market on the basis of available resources and
capabilities of the firm. The manager also need to understand first the
allocation of these resources done at corporate and business level.

4. Opportunity Analysis o f the Market:
The major elements of marketing strategy should be consistent with
the firm’s realities, that is, the external environment and the firm’s
own capabilities and resources. Therefore, after understanding the
attractiveness and potential of the market through the four Cs
analysis, it is important to identify, analyse, measure and utilize the
opportunities offered by the market.

i. Understanding Market Opportunities: The environment of the
market served and industry to which the firm is a part when
examined gives clearer picture of constraints (threats) imposed and
opportunities offered by the external micro and macro environment.
Appropriate framework to study these factors should be used so that
none of the factors go unnoticed.

ii. Measurement of Mar ket Opportunities: After identifying the
opportunities it is important to develop an evidence -based forecast
for anticipating future environment. During this process, the
marketing manager needs to find more sources of data for verifying
his own analysis an d filling the gap of information. munotes.in

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iii. Decisions for Segmentation, Targeting and Positioning: The
customers may have different preferences, personal characteristics,
reasons for purchase, circumstances etc. They may have different
sources of information and me thods of procuring the product.
Hence, the manager has to divide the current and prospective
customers into distinct subsets on the basis of similarities in their
characteristics, called as segments. After dividing the customers into
segments the firm need s to examine its strength and weakness in
each of them. The segment which offers viable opportunity should
be targeted.

After selecting the target segment, the firm should make a decision
on how to position the product or service it is offering. For this firm
needs to decide on which attribute of the product or service will
appeal to the customers of the targeted segment.

5. Formulating Situation -based Marketing Strategies:
The selection or formulation of marketing strategies depend upon
demand of production or service, prevailing competitive conditions
and life cycle stage the product is in. These three conditions are
highly dynamic, therefore, the firm need to frame appropriate
strategies for different combinations of these conditions.

6. Implementation, Eval uation and Control of Marketing Strategies:
Success of even a well -framed strategy depends upon its effective
implementation. For successful implementation, the manager should
examine the resources (including human resources like skill,
experience etc.), o rganisational structure, coordination between
different components and control mechanism of the organisation. The
manager may have to modify or alter the resources, structure and
coordination pattern to make the strategy more effective. The manager
should also develop a mechanism to evaluate the implementation and
check whether the marketing strategies are helping the organisation to
meet its marketing and ultimately its organisational objectives.

7. Developing Marketing Plan:
A formal marketing plan needs t o be developed and reviewed so that
the loopholes of the plan and ambiguity can be eliminated. A typical
marketing plan can be divided into three major parts.

i. Assessment and Analysis of the Current Situation: This part of
the plan entails:
 Analysis of Cur rent and Potential Customers
 Company’s relative strengths and weaknesses
 Competitive Situation and major trends of the industry
 Major opportunities and threats in the upcoming time
 Forecast and estimate of sales potential

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ii. Details of Strategy:
 Detailin g objectives in terms of sales volume, market share,
profits, customer base etc.
 Detail of strategy in terms of actions for the 4Ps with their
timings and locus.
iii. Resource Implications and Control Measures:
 Requirement of resources for the new stra tegy with their
mobilization and allocation plan
 Developing mechanism to evaluate the effectiveness of strategy
implementation and measures to control it
 Developing plans for contingency arising due to sudden changes
in competitive scenario or other extern al environmental factors.
1.2 MARKETING OPPORTUNITIES AND PLANS
The entrepreneurs and marketing managers seek opportunities to either
enter or increase the market share of the firm. Opportunities are the
favourable conditions that are prevailing, or will p revail in future, in the
industry in which the firm is competing. A thorough study of the market
conditions is required to answer the following questions which will help in
identifying the prevailing opportunities:
 How attractive is or will be the market i n which the firm is serving?
 How attractive the industry is or propose to be in which the firm is/will
compete?
 Do we have right skills available in the firm to take benefit of the
opportunities?
It is important to understand that the difference between Ma rket and
Industry before we move further. As mentioned by Walker and Mullins in
their book Marketing Strategy, Market comprises of individuals or
organisations who are willing to buy goods or services for satisfying their
specific need or want. Industry, o n the other hand, is a the firms that offer
product/ products which are similar or substitute of each other, which will
satisfy the need or want of the individuals/ organisations. In short, market
comprises of buyers and industry comprises of sellers.
Acco rding to Celine R. (2018), Market Opportunity can be defined as
Projected potential size of the market and volume of sale. In other words,
it is an estimation of how many individual consumers or businesses belong
to the target market of a firm and the volu me of sale made from them.
1.2.1 Marketing Opportunity Analysis
Market Opportunity Analysis is a tool used by a firm to identify the
attractiveness of a business opportunity in terms of its feasibility and
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16 to estimate profit and revenue it can generate in a particular market. The
most important factor which is determined during the market analysis of a
product is its Forecasted Demand.
Market Opportunity Analysis helps in answering the following question:
 Which is the most profitable segment?
 What is the rate of growth of opportunity?
 What is the density and intensity of competition?
 What is the gap which is not filled by competitors’ product?
Market Analysis if carried out properly leads to creation of marketing
intelligence which will help us in formulating right marketing strategies
for right market segment at right time. It helps in determine how to
provide a better product to the market than being currently offered. This
will mak e customers prefer the firm’s product over competitors’.
Process of Market Opportunity Analysis:
The process of analysis of market opportunity comprises of the following
steps:
1. Scanning and Analysis Macro Environmental Forces :
The external environmental fa ctors like economic condition, policies
and trends, political environment, legal system, social and
environmental pattern and technological trends are studied with a
view to determine their possible impact on the business and its
market.

2. Describe the Indu stry:
The analysis of industrial environment is done to find its current trend
and anticipating its future. Michael Porter Five Forces Model is a
popular tool used to determine an industry’s long term attractiveness.
The five forces which are examined in t his model are:

i. Rivalry among Existing Competitors: The firms in the same
industry producing products which are close substitute of each
other. Factors like investment intensity required to start and sustain
the firm, difference in product characteristics , cost of switching
from one brand to another etc. are the factors to be studied under
this force.

ii. Threat of New Entrants: New entrants intensify the competition
more. The greater this threat is the less attractive is the industry.
The threat increases wh en it is easy to attain economies of scale,
less capital requirement at outset, easy to gain distribution etc.

iii. Bargaining Power of Suppliers: the supplier to a firm may have
increased bargaining power if the cost of switching the suppliers is
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17 expensive. If the firm can undertake backward integration the
bargaining power supplier become less.

iv. Bargaining Power of Buyers: Factors like price, product quality,
added services help. Other factors w hich may influence the
bargaining power of buyers are number of buyers, switching cost
for buyers, product’s performance and its importance for buyers
etc.

v. Threat of Substitute Products: Substitute are the alternative of
product types (not the alternative of a brand) that can perform
similar function. The more similar is the performance of substitute
to the main product, higher is the threat to the firm. Substitute
products are generally put barrier to the product by limiting its
price.

Figure 1.11: Mich ael Porter Five Forces Model
Source: www.business -to-you.com
3. Detailed Analysis of Competitors:
The firm has to do a detailed analysis of the competitors in the
industry, howsoever big or small, for gaining market intelligence to
take right strategic decis ions. Some of the factors to be studies are
product description, strength and weaknesses (relative), market share,
strategies related to pricing, promotion and placing etc.

4. Creating Profile of Target Market:
The firm need to understand and record the ess entials features of
target consumers and market. The answering the following questions
may help the firm to draw a profile sketch of target market:
 Who are the potential customers?
 What is their need? Or what are they looking for?
 When do they need?
 Which distribution channel can help reaching them?
 What are the factors influencing their buying decisions?
 What are the trends? munotes.in

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18 5. Set Sales Projections :
Information collected using different techniques is deployed for
forecasting sale of the product. The data al so help in anticipating
most optimistic and pessimistic scenarios for future. Taking all
facts and analysis into account, the most realistic sale projection is
recorded for evaluation purpose.
1.2.2. Future of Marketing
The concepts of marketing have under gone massive changes since before
the Industrial Revolution. Before Industrial Revolution, marketing was
merely an activity of exchange of product against money without
bothering to know much about consumers’ choice and convenience.
Industrial Revolution b rought a sea change as production increased
beyond the buying capacity of consumers. Later, entry of intense
competition made the firm realize the importance of consumer preferences
and led to consumer centric approach. It was realized relationship with th e
consumer do not end with purchase of goods, but continued relationship is
beneficial for both the parties. The firms realized that the one who
purchase the goods are not the only one who are important, but the
stakeholders who help in providing the goods to the customers are also
equally important for a firm’s success. These stakeholders include
employees, intermediaries, suppliers etc.
According to Betsy Holden (2014), conventionally marketing was thought
of as a communication function, rather than a str ategic driver for growth
of an organisation. The future of marketing will have following functions:
1. In depth Knowledge of Customers: The firm should have detailed
information and understanding of its current and prospective
consumers. Knowing their decisio n making style, touch points will
lead to better relationship. The firm will enjoy trust and loyalty of the
firm for long period of time.

2. Continuous Improvement in Value Proposition: In today’s time the
density and intensity of competition is increasing a t a very high speed.
Hence, the firm needs to find innovative ways to giving better value to
the customers as compared to competitors. The innovation may not be
just in product or service the firm is providing but also in the business
model.

3. Use of Techno logy: Technologies like machine learning, artificial
intelligence and block chain should be incorporated in firms’ strategies
to stay ahead of competition. The concepts like big data and neuro -
marketing should be used to have more satisfied customers.

4. Imbibing Creativity: Success in marketing has always been possible
by incorporating art and creativity in it. Out of the box ideas have not
surprised the customers but have increased the market drastically.
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19 5. Maintaining Transparency: The presence of a firm digi tally is must
today. The customers should be able to acquire information with
complete honesty through platforms like website, blogs, social media
handles. These open, virtual interactive channels help the organisation
to gain trust of the customers.

6. Real Time Interaction: “Too little too late” can lead to disaster for a
firm. The form through its online interactive channels should respond
accurately and promptly to the customers. This will increase the
customer engagement with the product.

7. Personalized A pproach: Loads of information is available about
different product categories on internet. Scanning the target segments
searches will help the firm estimate what the customer is looking for
and how does the customer make choices. By creating relevant
commu nication and serving them right will be important for the
marketers in upcoming time.
1.2.3 Effective Marketing Plan

Figure 1.12: Steps followed in the process of framing an effective
marketing plan
Marketing Plan is a part of Business Plan which is base d on attractive
prospects of market and to determine how to retain existing customers and
attract new ones. A good marketing plan should have the following
contents:
1. Objectives of Marketing Plan: The marketing plan should begin with
clearly defined marketi ng objectives which are time bound and
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20 are market share, number of target consumer, sales volume,
penetration rate etc.

2. Market Research: The strategies for marketing can be frame only
after doing an intensive market research. It includes consumer analysis
which give the data related to demographics, loyalty, buying decisions
etc. Market analysis provides data like market size, market share,
industry structure, competitors analysis etc.

3. Defining Target Market: The analysis of target customer provides
information like age, gender, race, psychographic profile etc. which
helps in creating right marketing plan.
4. Formulating Marketing Strategy : The strategies for marketing mix
are formulated base d on data collected through market research to
achieve the objectives determined in the beginning. The firm can
decide upon determine the strategies for conventional 4Ps or they can
determine their own industry -based marketing mix.

5. Determination and Alloc ation of Budget: Marketing budget is an
important element of marketing plan. There are various techniques for
determining budget which can be deployed by the firm. The budget
may be based on realistic estimation of expenses or it can be on the
basis of rev enue the firm has earned. Budget is a very critical element
as it plays very important role in formulating and implementing
marketing strategies.

6. Continuous Performance Analysis: For the success of marketing
plan, it important to establish various paramet ers to judge the
effectiveness of the plan. The techniques of the measurement of these
parameters are also determined. The performance is analysed on
regular basis so that corrective actions can be taken timely.

7. Monitoring the Implementation of Marketing Plan: The marketing
plan executes in a dynamic environment. Therefore, it is important to
monitor the environmental changes and make suitable adjustments in
the plan.
1.3 NEW MARKETING STRATEGIES
Marketing practices were always there for centuries. But th e definition and
process of marketing has undergone gigantic change especially after
industrial revolution. Last three decades have witnessed a drastic change
and tremendous increase in the scope in the activities under marketing.
Some of the contemporary forms of marketing are discussed below.
1.3.1 Holistic Marketing Strategies
The new management approach believes that all different aspects of a
marketing strategy are inter -related. The process of holistic marketing
takes into account the considerations o f stakeholders, customers, munotes.in

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21 employees, suppliers, and the community as a whole when creating and
implementing marketing strategies.

Figure: 1.13: The Holistic Marketing Approach involve four dimensional
strategy to provide customer satisfaction and there by maximizing profit
There are four main strategies included in holistic strategy. These four
strategies are:
1. Relationship Marketing: It focuses on developing and maintaining
relationship with the stakeholders like customers, employees,
suppliers, buyers, regulatory agencies etc. All these stakeholders are
important for the success of the firm and its strategies. In relationship
marketing approach all the stakeholders are considered as customers
and are served appropriately to their satisfaction.

2. Integrat ed Marketing: Integrated marketing strategy uses different
tools and channels for marketing like advertising, public relations,
direct marketing, social media marketing and other tools like online
communications. This strategy is based on the belief that t he integrated
impact of all the communication and marketing channels will be able
to reach maximum current and prospective customers, multiple times.
This will help in covering the target market better and will have better
recall value.

3. Internal Marketing : Internal marketing is meant to take care of needs
of the employees for the firm. This is important for the satisfaction of
the employees which will in turn motivate them to perform better and
help embed the organisational philosophy in the culture. The s trategy
helps to get the maximum contribution from each department leading
to profit maximization and highest level of customer satisfaction.

4. Societal Marketing: This component focuses on socially -responsible
marketing. The organization embeds the element of social well -being
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22 society and environment, like employing local communities and
resources, replenishing natural resources, using green practices and
technology, providing benefits to sections of society. This approach
helps organization go beyond just customerservice and satisfaction. It
considers the fact that the organization is a subset of the society and in
healthy society alone can a healthy business survive.
1.3.2 New Brand Marke ting Strategies
New Brand strategy is a type of Brand Strategies. This strategy is adopted
when a product is expanding its offering to a new product or getting into a
new market. For this the company has to make smart choices in identity,
in visuals and br and story to attract attention and give huge competitive
advantage. There are three phases adopted by marketers for brand
strategy:
1. Phase I - Discovery: Incase of new brands there is no identity already
established, so this phase is not a significant one f or them. But if the
brand already exists and the firm wants to create a new one, the
marketer need to objectively how public perceive the existing brand.It
also requires market research and competitors analysis. Sketching a
psycho -social profile of the cus tomers.

Nykaa when launched itself it identified itself distinctly with people
who are into fashion and make up products and started targeting
market comprising of young population. They adopted marketing
through social media. With the successful launch o f their brand and
gaining acceptance from initial target market, Nykaa expanded its
product range and target segments too.


Figure 1.14: Nykaa adopts new brand marketing strategy while
introducing its brand

2. Phase II – Brand Identity: In this phase, th e marketer should begin
with defining clearly the core identity. After this, the marketer has
determine the strategy for positioning, USP of the product/ service
being offered. This will give input for developing brand identity mix
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23
Seba Med has in the year 2020 decided to relaunch their soaps as a
product for all. It was earlier present in the market but was sold across the
counter mainly at pharmacies for people having sensitive skin. It launched
itself as a most s kin friendly soap by comparing its perfect PH with that of
other popular soap brands.

Figure 1.15: Sebamed creates a distinct brand identity by
introducing itself as a bath soap having perfect pH for skin
which even most popular brands do not have

3. Phase III – Execution: It is to be remembered that brand strategy is
framed to create an image in the mind of the consumers and have
better recall, and not marketing of product. Before the firm start
executing the branding in a new set up marketer should be sur e
whether the branding is in line with the business strategy of the firm.
The new brands branding should be so planned that it maintains
consistency in all channels and communications. Brand Identity should
also resonate with the mind -set of the target mar ket for the firm.

There are few essentials kept in mind while executing the strategy for
a new brand:

 The strategy should focus on communicating the brand story not the
product.

 Apart from offering best features and best product, it is very
important t o be different in terms of identity.

 The story of the brand should interesting and consistent. The
audience are bombarded with lots of messages, being loud is not
sufficient. The branding should be interesting to capture attention
and consistent for bette r recall.
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24  The approach should be customer -focussed, not company -focussed
for establishing new brand.

 Empathize with your customers. Tell them how will you solve their
problem or what are you going to do to make their lives better.
Nykaa has never lost it s focus from its target market and have never failed
to bring delight to them by surprising the consumers interpreting their
thoughts aptly and timely

Figure 1.16: Nykaa executed their strategies of creating a distinct brand
image stage after stage by co nnecting itself with common people and their
definition of being beautiful. Because of this successful execution the
brand has become a household online brand name for fashion products
1.3.3 Service Marketing Strategies
Services, such as telecommunication, banking, medical treatment,
hospitality etc, are the part of economy which deals with non -physical and
non-tangible entities.
Services are provided to the customers who pay for it. But during the
process there is no transfer of ownership. Services cannot be transported
or stored.
As service industry is one of the important contributor of any countries
GDP, it cannot be ignored. Like organisations providing goods, service
industry also uses strategies to attract more customers and increase the
market shar es.
According to Zeithaml et al, Service Marketing is the marketing process
which focuses on delivering processes, experience and intangible entities
to the consumers. Services may have many categories like hospitality,
health care, transportation etc. Bas ically services are offering of processes,
performances and deeds. Services can also be value addition with products
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25 As understood, service marketing is marketing of intangibles, hence it is
complete ly different from conventional marketing approaches for
products. To understand service marketing better it is essential to
understand its key features:
1. Marketing of Non -Tangibles: Services cannot be seen or touched.
Hence, service marketing is marketing of those entities which cannot
be physically possessed. Services provides satisfaction to the customer
through experience. The better the experience is the better is the
service.

2. Ownership is Non -Transferable: Unlike products, marketing of
service does not transfer any ownership. Services are not owned by the
provider or by the consumers. The service provider just has
infrastructure to provide service. It provides experience to the
customers and cease to exist when service is over.

3. 7Ps Marketing Mix fo r Service Marketing: The conventional
marketing mix for products are the 4Ps – Product, Price, Promotion
and Place. But for marketing for service, we require additional three Ps
as given by Bernard Boom and Mary Bitner in 1981. The three Ps
which are added in service marketing are :

 People : This include aspects related to employees of the
organization. The organization need to hire, train and motivate their
employees so that they exhibit caring attitude towards consumer
and other employees, patience and re sponsive behaviour. They
should develop competence to serve customers better than
competitor.

 Process: It includes all the business processes which will help in
provide maximum satisfaction to the customers. The process should
be comprehensive, customer f riendly, convenient and prompt. Right
processes at right place will help the organization have embedded
system for maximum profitability and customer satisfaction.

 Physical Evidence: Unlike products, services cannot be experienced
by the customers by seei ng or touching. The organization should
provide evidence of good quality service by demonstration using
techniques like ambience of outlet, testimonial messages of the
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26

Figure 1.17: In addition to conventional Marketing Mix ( 4Ps), the
extended marketing mix (7Ps) were introduced by Boom and Bitner for
service marketing
4. Consumption and Production are inseparable: Service providers
and service cannot be separated with each other and also service is
produced and consumed at the sa me time. Services cannot be stored
for future use. The service is generated and delivered at the same time
and is consumed simultaneously by the consumer.

5. Managerial Function: Like marketing of product, marketing of
service is also a managerial function. Various strategies are designed
on the basis of objective and environmental factors in service
marketing too. Once the strategies are framed, their implementation is
done after meticulous planning and the success of the strategies are
monitored through eva luation and control techniques.

6. Multifold Benefits : Service Marketing is conducted for various
objectives like creating awareness, boosting sale and increasing
revenue. Due to marketing of services, the consumer are educated and
it thus it helps in improv ing their standards of living. The marketing
activity provides employment directly and indirectly. Any kind of
marketing helps in boosting sale and provides support for betterment
of economy.
Some of the popular service marketing strategies are:
1. Word -of-Mouth: As service can be experienced, so the best way of
promoting it is by referrals or word -of-mouth. When one customer is
pleased with the service experience they can advocate it to others. To
encourage this, firm can introduced schemes like free service for each
subscription etc.

2. Educating Target Segments: It is important the target segment is
informed about the current services or new services being offered by munotes.in

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27 the firm. The firm can sponsor events, organise seminars and talk -
shows, give article in newsp aper to grab attention of target customer.
3. Demonstration: The customer get opportunity to have real experience
of the product using this strategy. They can reduce their resistance and
inhibitions for using the services provided.

4. Use of Social Media: Social media can be used due many of its
benefits like selection of audience, demonstration effect, call
discussion or experience sharing through blogs etc.

Figure 1.18: Ford has repeatedly assured its customers that they are not
only selling great cars but also providing convenience for servicing. They
have been promoting this extensively
1.3.4 Green Marketing Strategies
The marketing of environmentally safe products is said to be Green
Marketing. It does not only include selling of green products, but also
includes activities like modification of product and production processes,
environmental friendly packaging and designing promotional messages.
Green marketing is adopted to minimize the impact of marketing of goods
and services on the environment, yet be ing able to satisfy the need of the
consumer.
According To American Marketing Association, Green Marketing is the
process of producing, providing and selling the products and services by
adopting environmentally friendly techniques.
There have been howev er many different approaches for defining Green
Marketing.
Green Marketing, in words of Kinoti (2011), covers wide range of
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28 are modified to support the environment. Hence, Green Marke ting cannot
be assumed to be merely sales and promotion of products in an
environment friendly way or informing consumer about the product being
nature friendly, in fact, it includes the modification of the marketing mix
to make it environmental friendly. Green Marketing Strategies can be
adopted to both consumer and industrial products or services.
According to Polonsky et al (1997), Green Marketing Mix Strategies
including developing green products, using green logistics, engaging in
green promotion, gre en pricing and green consumption.
1. Green Based Product Strategies: This includes designing and
developing products which are sustainable, like the products which are
more durable, less toxin, recyclable. The strategy may include usage of
less packaging mater ial, identifying and using source of raw material,
products which are repairable and has environmental friendly
disposability.

Pappco Green ware is a brand founded by Anil Agrawal with an
intention to bring the products in the market which can replace sin gle
use plastic. These products are made of degradable material like plant
fibre. These products are now sold in five countries other than Indian
subcontinent. They produces eco -boxes, clamshells, plates. The
products are absolutely plastic free, made of r enewable, plant fibers,
safe to carry food, totally compostable and are freezer and microwave
safe.


Figure1.19: Green Products are made of bio -degradable material,
re-usable material or recyclable material enjoy more customer
attention
Source: Pappco Gr een ware India

2. Green Logistics Characteristics: One of the most popular Green
Logistics Strategies is Reverse Channel System. This strategy helps in
dealing with post -consumption recycling issues. In this the firm takes
back the product when the consumer i s ready to dispose it and uses
waste management techniques to prevent ill effect on environment.
Other forms of Green Logistics Strategies are using less packaging
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29

Figure 1.20: VSL Wor ldwide Logistics is a UK based eco -friendly
courier services. They use vehicles which emit less carbon. The
company use bicycles, electric van, motor cycles and ultra -low
emission vehicles.
Source: VSL Worldwide Logistics

3. Green Pricing Strategies: While t he assumption that green products
are expensive may be true, but the price is not unusually high. The
suggested green pricing strategies may including informing the
consumer that the companies which are able to sell their products are
cheaper price, do not spend on environmental protection initiative. As
a result, such products if bought and used continuously will lead of
environmental issues very soon. The other way of justifying relatively
high price is by informing consumer about benefits of usage of gre en
products for them.

Figure 1.21: Seventh Generation is a brand of personal care and
house -hold cleaning products. The target segment comprises of
women, especially new -moms. The brand convinces these moms
that with little extra price they pay, they ma ke sure that they are
giving a safer world to their babies.
Source: www.seventhgeneration.com

4. Green Promotion Strategies: Promotion of environmental friendly
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30 i. Establish relationship between green product and the bio spherical
environment.
ii. Promoting green lifestyle, may not be directly discussing the product.
iii. Help creating an environment friendly corporate image using different
identity tools
Green Promotion also help in education and informing the audience,
so that t hey can chose product which are not only satisfying their
needs but also saving environment.

Figure 1.22: Coca Cola Philippines in collaboration of WWF has
come up with an eco -friendly billboard in Makati City. The
Billboard is a 60×60 feet one and has 3 ,600 carbon absorbing
Fukien tea plants. Each of the 3,600 plants planted on this
billboard has the ability to absorb up to 13 pounds of CO2 each
year.
Other notable examples of Green Marketing are :
1. Starbucks uses green materials for producing, packaging, and
delivering its product to customers. They are planning to open 10,000
environmentally friendly stores by 2025.

2. Ikea has developed a strategy known as People & Planet Positive ,
encouraging consumers to be environmentally conscious. It
manufactures products through eco -friendly practices. The company
uses and encourages people to use renewable energy, it uses safe
chemicals. It takes care of forest and farm land which are the sources
of its raw material. It inspires and educate its millions of customers to
live a more sustainable life at home.
Benefits of using Green Marketing strategies are listed below:
1. Enhances Profits: Green products use less raw material , generates less
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31 2. Brings Competitive Advantage: The environmental innovations done
by an organization enhances its image leading to more trust of the
consumers. Green products are better in quality.

3. Increased Share in the Marke t: Once the organisation is able to get
trust of the consumer, they become more loyal. Also, consumer are
now becoming more and more aware and concerned about
environment. They chose products which are less harmful.

4. Getting more benefits as compared to g eneral products: The products
used make the consumer healthier, less maintenance cost, longer life
and also a satisfaction of preventing the environment from getting
harmed.

5. Sustainability: With increased threat on environment, every
organisation need to contribute towards keeping the environment safe
for future generations.
However, these strategies may face some backlash because of difficulty in
implementing the strategies and unable to substantiate benefits as they are
difficult to measure. The processe s like recycling, waste management are
expensive.
1.3.5 Guerrilla Marketing Strategies
Guerrilla Marketing was introduced in 1984 by Jay Conrad Levinson in
his book Guerrilla Advertising: Secrets of Making Big Profits from Your
Small Business . Guerrilla Ma rketing is a low -cost marketing techniques
but requires high degree of creativity. But it ensure maximum attention
and exposure. The term has been used in marketing as it is used as
Guerrilla Warfare in battle field. Guerrilla Marketing requires tactics li ke
elements of surprises, ambushes, raids. The strategy works by taking the
consumer by surprise, creating lasting impression and a huge buzz on
social media. It uses non -conventional marketing strategies and hence
always gets attention of consumers.
For t he Guerrilla Marketing strategy to be successful, the following
elements should be incorporated:
1. Better Recall: Guerrilla Marketing should be done cleverly so that it
leaves the consumer thinking and mentally rehearsing about it.

2. Compelling Attention: The advertisement should get attention and
appreciation.

3. Emotional Response: Arousal of emotional response of the consumer
makes it more memorable.

4. Invite Interaction: The advertisement which is interactive either with
the people surrounding it or from the consumer, generally leave them
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32 Though, Guerrilla Marketing was originally suggested for small
businesses with low budget for promotion. Now, it has been used by big
established brands also, like McDo nalds, Mr.Clean etc.
There are many types of Guerrilla Strategy for marketing. Some of them
are enlisted and briefly explained below:
1. Street Marketing: This strategy brings the business promotion on the
streets targeting mainly the foot traffic in busy str eets. Places like
benches and sides of bus stands, zebra crossing, manhole covers,
parking spaces etc. are used for advertising. Sometimes, the staff are
also asked to interact with walking passer -bys like distributing product
samples, communicate or colle ct information from prospective
consumers.

2. Ambient Marketing: In this strategy, marketer focuses on surprising
the consumers by providing something out of blue. It is done by
choosing an unusual locations, innovative way of communicating
about product etc . High degree of creativity is required for such types
of advertising and marketing. It can also be done by using
conventional medium (like billboard) in an unconventional way
(making it three -dimensional etc.)

Figure 1.23: Ambient Marketing are designed to use the ambience
with an element of surprise
Source: 11 creative advertisements that will definitely grab your
attention

3. Ambush Marketing: By Ambush in marketing we mean “surprising
the competitor(s) by sudden attack”, mainly to reduce the impact of
competitors campaign. The term Ambush Marketing was coined by
strategist Jerry Welsh while he was marketing for American Express.

Most of the time Ambush Marketing strategy is adopted during some
major events or programs like FIFA World Cup, Super Bowl et c. The
firm may market their brand or product without being major sponsors
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33 To avoid such marketing, some organisers of these mega events have
to create clean zones to restrict such advertisin g attempts.

4. Experiential Marketing: It is done for giving an experience of firm’s
product or service to the consumers. It can be done by making
consumer experience your brand in real or real -like situation. It is not
only memorable but is also help the c onsumer take immediate
decision.

Food Sampling: It is the most enjoyable form of experiential
marketing strategy. It is a form of marketing leaving the consumer
pleased and give their reaction immediately. The consumer may not
taste the product, but it s eldom goes unnoticed.
Other form of Guerrilla Marketing strategies are Wild Posting, Reverse
Graffiti, Undercover and Stealth Marketing, Grass Root Marketing etc.
Use of Guerrilla Marketing has increased over the years for multiple
reasons. Some of the be nefits of Guerrilla Marketing are listed below.
1. Low Cost Marketing:
This marketing strategy rely heavily on unconventional techniques. It
requires smaller budget but more creativity. Thus, it’s a cost effective way
to build a brand.

2. More Chances to Go Vi ral:
As this type of marketing strategy leaves striking impressions, it is more
likely to get captured and go viral online. The innovative online marketing
strategies reaches more and more people if it is able to appear interesting
to the consumers.

3. Bette r Recall Value:
These campaigns leave the consumers amazed, impressed and give rise to
anxiousness to know more about it and talk about it. This is because of
being unconventional and surprising in nature. Hence, the consumer tend
to memorize it for longe r time and exhibit response to it more frequently.

4. Building Partnership:
For such Guerrilla Marketing campaigns to be more effective, it has to
relate itself with real situations and real places where you find your current
and prospective consumers. Henc e, it has to develop partnership with local
businesses, institutions, organisations. Due to this collaboration the
campaign reached its real audience and provide benefits to both the
partnering parties.

5. Gives Creative Freedom:
The conventional advertisin g and marketing have guidelines and norms to
be followed. Hence, making it difficult to cut the cluttering with similar
ads and standout. While in Guerrilla Marketing, the creator of campaign
can apply any innovative techniques which ensures attention of t he target
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34 6. Spreading of Information using Social Channels:
Interesting information always gets space and attention in social
networking platforms like linkedIn, Whatsapp etc. The audiences and
consumers love sharing message or imagery which is diffe rent and
surprising. The Guerrilla Campaigns generally passed on and discussed in
such social networking platform. As a result, the campaign’s impact
reached far beyond the geographical location where it has been executed.
Besides having so many benefits, Guerrilla marketing has some very
significant drawbacks like:
 High risk of failure
 Message may get misunderstood as result it may have negative impact
on reputation of the firm
 It may not receive support from the location or the government
authorities
 Unpr edicted weather and locational conditions may lead to failure of
campaign.
1.4. SUMMARY
Marketing is just not selling product but has 360 degree approach which
includes all the stakeholders. It begins before the production of goods or
services and continue s even after sale. Strategies in an organisation
operates at four levels, namely Corporate Level, Business Level,
Functional Level and Operational Level. Marketing strategies are type of
functional level strategies. Marketing strategies are deployed in an
organisation because of its many fold benefits. It is used to identify the
right marketing mix, maximizing profit, communicating and satisfying the
need of current consumers, identify new segments etc.
Marketing strategies can be formulated on various crit erion, one of them is
position in the market. Based on position, special strategies can be framed
for market leaders, challengers, followers and nichers. Marketing strategy
management process includes phases and steps. It begins with determining
the opport unities, doing the environmental scanning and analysis for
identifying prevailing and prospective opportunities, identifying the right
strategies by using scientific techniques, preparing the organisation for
implementation of this selected strategy, imple menting the strategy. After
implementing the strategy, it becomes utmost important to continuously
evaluate the strategies in light of targeted performance and environmental
factors and adopting control measures as and when required. Marketing
plans are fr amed are based on these strategies implemented.
Market Opportunity Analysis is a tool used by a firm to identify the
attractiveness of a business opportunity in terms of its feasibility and
viability. The process of Marketing Opportunity Analysis begins wi th the
analysis of macro environmental factors and then thoroughly studying the
industry. Michael Porter Five Forces Model can be deployed for this
purpose of industry analysis. The careful examination of competitors
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35 opportunities in the current market. It is important not only to study the
industry, it is also important to study the current and prospective market.
In light of all this analysed information, the organisation develops its
marketing projection for future.
The marketing strategies have gone a long way and have evolve
immensely over the years. The oldest identified marketing strategy is
Exchange Concept of marketing and today we are into holistic marketing,
which does not only takes care of the consumer who buy products, but
also of rest of the stakeholders too without which the firm will not be able
to serve the customers efficiently. In fact, the definition of consumers is
widened and includes both internal and external c onsumers.
Before Industrial Revolution, marketing was merely an activity of
exchange of product against money without bothering to know much
about consumers’ choice and convenience. . Industrial Revolution brought
a sea change as production increased beyo nd the buying capacity of
consumers. Later, entry of intense competition made the firm realize the
importance of consumer preferences and led to consumer centric
approach. It was realized relationship with the consumer do not end with
purchase of goods, bu t continued relationship is beneficial for both the
parties.
Effective Marketing Plan begins with setting realistic, yet challenging,
objectives. Before designing the marketing strategies, it is important to
carry out an extensive research and formulate st rategies for the identified
target market. Once the strategies are formulated, the budget is prepared
for its implementation. Finally, the plan is implemented.
The contemporary marketing strategies include Holistics Marketing,
Marketing of New Brands, Serv ice Marketing, Green Marketing and
Guerrilla Marketing.
1.5. EXERCISE
FILL IN THE BLANKS:
1. The strategies which involve promoting and selling product or service
are said to be _____. (Retrenchment Strategies/ HR Strategies/
Marketing Strategies)

2. The Market ing Strategies are a type of ________ Level of Strategies.
(Corporate/ Business/ Functional)

3. _____ brings the business promotion on the streets targeting mainly
the foot traffic in busy streets. (Street Marketing/ Green Marketing/
Holistic Marketing)

4. _____ Five Forces Model is a popular tool used to determine an
industry’s long term attractiveness. (Adam Smith’s/ Michael Porter’s/
Peter Drucker’s) munotes.in

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36 5. An effective marketing plan begins with _______. (Setting up the
Objective/ Preparing budget/ Monitoring the plan)
Answers:
1 - Marketing Strategies, 2 – Functional, 3 - Street Marketing, 4 - Michael
Porter’s, 5 - Setting up the Objective
MATCH THE COLUMNS:
1. Electronic product which
consume less electricity
2. Taking marketing beyond just
serving customers
3. A place wh ere exchange or
sale of product take place
4. Marketing by surprising the
customers and competitors
5. Corporate level strategies a. Market

b. Guerrilla Marketing

c. Top most level of strategies

d. Green Products

e. Holistic Marketing Approach

Answers:
1 – d, 2 – e, 3 – a, 4 – b, 5 - c

TRUE OR FALSE:
State whether the following statements are true or false:
1. Marketing Strategies are a type of Business Level Strategies
2. Concept of exchange was prevalent in marketing mainly before
Industrial Revolution.
3. Opportunities are the favourable conditions born out of internal
environment of an organization.
4. Use of technology is not important for future marketing trends.
5. Green products are eco -friendly products which may not be of green
colour.
Answers:
1 – False, 2 – True, 3 – False, 4 – False, 5 - True
SHORTS NOTES:

Write short notes on the following:
1. Holistic Marketing
2. Service Marketing
3. Marketing of New Brand
4. Green Marketing
5. Guerrilla Marketing


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Introduction to Marketing
Strategies
37 ANSWER IN BRIEF:

Answer the following questions in brief:

Q.1 Discuss the stages of evolution of Marketing Strategies.

Q.2 State different types of Marketing Strategies.

Q.3 Write the steps involved in formulating and implementing Marketing
Strategies.

Q.4 Define Marketing Opportunity Analysis. Describe its process in brief.

Q.5 Stat e the essentials for Marketing in Future times.
1.6. REFERENCES
1. Management Study Guide, Marketing Strategy - Meaning and Its
Importance (managementstudyguide.com) ,

2. How to Define, Analyze, & Seize a Market Opportunity (tutsplus.com)

3. Market Opportunity Analysis Meanin g, Importance, Steps & Example
MBA Skool

4. Guerrilla Marketing - Overview, Rationale and Benefits
(corporatefinanceinstitute.com)

5. 5 Benefits of Guerilla Marketing - JANZEN MARKETING, LLC
(janzenmarketingllc.com)

6. What are the Pros and Cons of Guerrilla Marketing?
(knowledgenile.co m)

7. Valarie A. Zeithaml , Mary Jo Bitner, Dwayne D G. (2011), Services
Marketing Strategy, Wiley International Encyclopedia of Marketing

8. The future of marketing | McKinsey

9. Marketing Plan - Overview, Purpose, and Structure
(corpor atefinanceinstitute.com)

10. Service Marketing - Meaning, Importance, Types and Examples
(marketingtutor.net)

11. Brand Strategy 101: How to Create an Effective Branding Strategy
[GUIDE] - crowdspring Blog


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38 Module II
2
DEVELOPING MARKETING
STRATEGIES AND PLAN
Unit Structure
2.0 Objective
2.1 Introduction
2.2 Marketing Mix
2.3 Marketing Plan
2.4 Defensive Marketing Strategies
2.5 Summary
2.6 Exercise
2.7 References
2.0 OBJECTIVE
After studying this unit stude nt will be able to understand:
 Understand the concept of Marketing Mix
 Know about Marketing plans and various Strategies
 Explain Strategic Business Unit and SWOT Analysis.
2.1 INTRODUCTION
Marketing is the act of facilitating the exchange of a given commo dity for
goods, services, and/or money to deliver maximum value to the consumer.
Marketing satisfies these needs and wants through both the exchange
processes and building long -term relationships.Marketing can be viewed
as an organizational function and a set of processes for creating,
delivering, and communicating value to customers, and managing
customer relationships in ways that benefit the organization and its
shareholders. Marketing is the science of choosing target markets through
market analysis and market segmentation, as well as understanding
consumer buying behaviour and providing superior customer value.
Marketing is made up of four elements: product, place, promotion and
price. The elements must be used in a cohesive plan to effectively target
the consumer. A product can be either a physical product or service. Place
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39 the product and promotion consists of the communication tools used to
effectively get the company's message out.
2.2 MARKETING MIX
Marketing involves a number of activities. To begin with, an organisation
may decide on its target group of customers to be served. Once the target
group is decided, the product is to be placed in the market by providing
the appropr iate product, price, distribution and promotional efforts. These
are to be combined or mixed in an appropriate proportion so as to achieve
the marketing goal. Such mix of product, price, distribution and
promotional efforts is known as ‘Marketing Mix’.
MARKETING MIX: A BIRD’S EYE VIEW

2.2.1 MEANING
Marketing decisions generally fall into the following four controllable
categories:
 Product
 Price
 Place (distribution)
 Promotion
The term "marketing mix" became popularized after Neil H. Borden
published hi s 1964 article, The Concept of the Marketing Mix. Borden
began using the term in his teaching in the late 1940's after James Culliton
had described the marketing manager as a "mixer of ingredients". The
ingredients in Borden's marketing mix included produc t planning, pricing,
branding, distribution channels, personal selling, advertising, promotions,
packaging, display, servicing, physical handling, and fact finding and
analysis.
E. Jerome McCarthy later grouped these ingredients into the four
categories t hat today are known as the 4 Ps of marketing, depicted below
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40

Source: https://byjus.com/commerce/marketing -mix/
According to Philip Kotler “Marketing Mix is the set of controllable
variables that the firm can use to influence the buyer’s response”. The
controllable variables in this context refer to the 4 ‘P’s [product, price,
place (distribution) and promotion]. Each firm strives to build up such a
composition of 4‘P’s, which can create highest level of consumer
satisfaction and at the same time meet its organisational objectives. Thus,
this mix is assembled keeping in mind the needs of target customers, and it
varies from one organisation to another depending upon its available
resources and marketing objectives
2.2.2 Marketing Strategy Implementation
Marketing Strategy Implementation is a key process in the strategic
marketing process of the organization. If Marketing Strategy objectives
are to lead to performance results then the strategy formulation should
lend itself to strategy implementation. This m eans that the strategy
formulation should take into account the implementation obstacles to
make the strategy work smoothly. Good strategy followed by good
implementation leads to success, while poor strategy followed by poor
implementation leads to failur e. At the same time poor strategy followed
by good implementation leads to average outcomes and causes trouble
while good strategy followed by poor implementation leads to ruin. This
underscores the importance of good implementation
The components of marke ting strategy implementation include
(1) Marketing strategy:
Before an organization can start with the implementation, the strategy first
needs to be formulated. The formulation of a strategy starts with the
statement of the corporate mission and major cor porate goals based on the
existing business model. The mission statement of a company consists of 4
different parts, namely the mission, vision, values, and major goals. munotes.in

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41 The mission, vision and major organizational goals form the basis for
further strategi c choices on corporate, business, and functional level. To
be able to make these strategic choices, the organization first needs to
analyze the external environment to identify the opportunities and threats
the organization is facing, which may affect the achievement of its
mission. Moreover, the organization should identify its strengths and
weaknesses through analyzing the internal operating environment. Based
on this, so called, SWOT analysis, the organization is ready to make the
necessary strategic cho ices, where it can use its strengths to correct its
weaknesses, take the external opportunities, and counter the threats. The
strategic choices are the foundation for the new business model of the
organization, which should match the demands from the marke t to the
resources and capabilities of the organization, and should lead to
realization of the organizational goals
The strategy has been formulated and should be checked against the
mission statement to ensure that the chosen strategy is in line with the
overall mission statement of the organization
(2) Shared goals and values
The values (including norms and standards) of the organization shape the
organizational culture and, with that, the behavior expected from the
employees. Values form a strong inter nal force for controlling how
employees execute their tasks and reach their and the organization’s goals.
Goals are the measurable objectives, as set by management, that the
organization is planning to realize based on the mission, vision and values.
Whate ver the values and goals of organization, it is very important to be
shared withing the organization and communicated to the peoples of the
organization.
(3) Organization structure
The correct organizational structure is crucial to enable the organization to
implement its strategy. To facilitate the achievement of the strategic and
organizational objectives, organizational structure coordinates and
integrates the tasks executed by all employees in the organization, i.e.
employees at all levels, and across a ll divisions and functions.
Organizational structure determines the departments and functions in an
organization, it defines the hierarchy, span of control and reporting
relationships, and includes the systems for communication, coordination
and integrati on across these divisions and functions, both vertically and
horizontally
First of all, tasks and people need to be grouped in functions. After this,
functions can be grouped into divisions to allow the organization to
achieve organizational goals effectiv ely and efficiently. Across these
divisions and functions authority and responsibilities need to be allocated.
A clear hierarchy needs to be defined from the Board of Directors through
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42 hierarchy should clarify the span of control that each of the employees
has, i.e. the people and tasks they are responsible for and have authority
over. As the organization has been divided into separate functions and
divisions, which all together should str ive to achieve the same
organizational objectives, communication and coordination across these
functions and divisions is needed. Through integrating mechanisms, such
as direct contact, liaison roles and crossfunctional or divisional teams,
information abo ut activities, ideas and problems are efficiently spread
across the organization
(4) Systems and processes
The systems, on the one hand, provide incentives and motivation to
management and other employees to pursue the right activities towards
achievemen t of organizational goals. On the other hand, systems facilitate
monitoring and evaluation of performance and progress on strategic goals.
This enables managers to take action to, if necessary, adapt and strengthen
the organization’s business model. To all ow managers to respond to
unexpected events, the control system has to be flexible. Moreover, it
should provide accurate and timely information on organizational
performance to ensure correct decision -making by managers. When
designing an effective control system, an organization first determines the
targets against which performance will be measured. Control systems
should be designed at all levels in the organization, and targets have to be
fit to the activities that the employees are responsible for. Mor eover, it
should be determined, which behavior is rewarded, and how these rewards
relate to performance
System and processes should be aligned with organization goals,
objectives so that everything in organization runs accordingly to achieve
the strategy o bjective.
(5) Resources
The backbone of any strategic planning process is effective resource
allocation. It is so as it helps to make maximum utilization of the existing
resources available with the organization. It also enables an organization
to be fle xible to the upcoming challenges due to better planning.
Resources include both financial and non financial resources. For
successful strategy implementation, it’s important to properly allocate
resources.
(6) People
The human aspects of strategy implement ation deal with the people of an
organization. It is the employees, who work towards the shared goal of
implementing a strategy for their company. So managing the employees is
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43 We already know that, in order to ma ke sure that we can properly
implement a strategy, people are crucial. But two criteria must be fulfilled
to get the best out of your people.
1. You need to have sufficient people in your workforce to support your
goals.
2. The people in your workforce should be capable, or skillful enough to
work for the goal you set for them.
(7) Leadership
We already know that, in order to make sure that we can properly
implement a strategy, people are crucial. But two criteria must be fulfilled
to get the best out of your pe ople.
1. You need to have sufficient people in your workforce to support your
goals.
2. The people in your workforce should be capable, or skillful enough to
work for the goal you set for them.
People are ultimately responsible for implementing marketing activit ies.
Therefore, the manager must be good at motivating, coordinating and
communicating with all marketing personnel. The quality, diversity and
skill of an organization’s work force are all important considerations in
implementing marketing strategy.
Execu tion / strategy implementation is a specific set of behaviours and
techniques that companies needs to master in order to have competitive
advantage. Execution is a process. For successful execution, the need for a
well-formulated strategy is of utmost impo rtance. Successful execution is
said to take place when the three processes – strategy process, people
process and operations process are understood well and coherence is
established between the three aforesaid processes
2.2.3 Steps
There are several steps you can take to develop a marketing strategy
implementation, including these six:
1. Create realistic expectations
Keep in mind it can take up to six months to a year to see a return on
investment (ROI) for marketing strategies and efforts. Be sure to set
realistic expectations, including for managers and stakeholders, so
everyone understands the priorities and when to expect results. You can
build space for creativity, experimentation and pivot opportunities by
having realistic expectations.
Consider all aspects of your marketing implementation and strategy plans,
noting each may have different deadlines, goals and results. For example,
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44  Social media marketing
 Content creation
 Sales conversions
 Lead generation
 Webinar ses sions
2. Know what you need to implement
Because each marketing strategy is different based on company, product,
service or goal, naturally your marketing implementation plan also varies.
Decide what resources, tools, software and talent you need to help y ou
execute each implementation plan. Through your research and planning,
you might learn that your own staff can implement the plan or that you
need to hire external help. Here's the difference between in -house and
external teams:
 In-house marketing team: You might have a department or team
skilled in graphic design, communications, content creation,
copywriting or project management within your company. You can
save money and resources if the talent matches your needs for the
project.
 External consultants, agencies or firms: Depending on the marketing
need, hiring an outside source can be beneficial, especially if you need
specialized talents, like animation, digital application building or other
more technical skills. You can hire firms, agencies and consu ltants on
a project basis or length of time, like an annual contract.
Also, focus on what tools and software elements you need to carry out
your marketing implementation plan, such as:
 Video hosting platforms
 Social media management
 Content management
 Project planning tracker
 Search engine optimization (SEO)
 Analytics and reporting
 Marketing dashboards
3. Review your marketing strategy
Review your marketing strategy another time to make sure it's well -
defined, actionable and result -driven. Add any additiona l elements you
might discover through building your implementation plan, and be sure to
have the following essentials of a marketing strategy:
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45  Marketing budget
 Target audience
 Brand positioning
 Analytics
 Strengths, weaknesses, opportunities and threats (S WOT) analysis
 Specific, measurable, aspirational, realistic and time -bound
(SMART) marketing goals
4. Establish workflows for all content and tasks
You can create task lists and marketing workflows that are easy for people
to follow. Consider keeping workf low steps concise, combining elements
that make sense to go together. Use action verbs to give a task a clear
definition of what needs to be done. Assign tasks to teams or individuals
and include a timeline or deadline for each one. Share the workflow with
all relevant parties and ask for feedback and input before publishing the
final version. Continue to collaborate and delegate throughout the
implementation plan for best results.
5. Communicate to the team
Once you establish the marketing strategy and tea m, workflows and
measurement tools, communicate the plan to everyone. Open transparency
and team accountability can help boost motivation, productivity and
results. The team invests in the goal and understands how their role is a
key factor in achieving it . Share with stakeholders and other company
departments or teams to help gain approval and support for the team's
efforts.
6. Monitor and measure as you go
Monitor your marketing implementation plan as you move through it,
reviewing how tasks are being han dled and if deadlines get met. As results
come in, compare them against forecasted projections to see if you need to
adjust your implementation plan or marketing strategy. Depending on the
results, consider adjusting any workflow patterns or project manage ment
strategies and ask your team for their input to see if there are actionable
suggestions. Set up regular meetings to go over the progress to help reach
the goal.
EXAMPLE:
Marketing implementation plan for a single -owner lawn care company
This sample ma rketing implementation plan outlines the marketing tasks
of a small business owner offering seasonal lawn services:
Green Machine Mowing, LLC
A local, teen -run small business specializing in sustainable energy
equipment to give high -quality service at affo rdable prices.
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46 All responsibilities and tasks are owned by the founder of Green Machine
Mowing unless otherwise stated below.
Pre-launch tasks
 Gain full funding for marketing materials by February 2022
 Design logo grap hic with the freelance graphic artist by March 1,
2022
 Build QR code for marketing materials by March 5, 2022
 Research and design marketing materials, including mailbox flyers,
signs and social media, by March 15, 2022
 Print flyers and signs by March 30, 2 022
 Interview and hire two employees by April 1, 2022
Launch tasks
 Train and set expectations for employees by April 1, 2022
 Educate staff on all discount offerings and pricing materials by April
1, 2022
 Distribute flyers in neighbourhood mailboxes by Apri l 8, 2022,
repeat the first week of June 2022
 Hang signs in the neighbourhood by April 10, 2022, and monitor for
replacing
 Provide each employee with an electric mower, weed whacker and
blower by April 10, 2022
 Email existing clients for renewal of seasona l service by April 15,
2022, request returned contracts by May 1, 2022
 Launch new social media accounts by April 30, 2022
Ongoing tasks
 Use software systems for mowing schedules and client assignments
for employees and update weekly
 Update all social media accounts at least three times per week and
engage with users
 Create video content at least twice per month for social accounts and
an email recap
 Provide payment to employees on a bi -weekly business
 Have employees leave customer satisfaction surveys with clients
monthly with paper version and digital link
 Email clients monthly with updates, service suggestions and survey
link
 Review customer satisfaction ratings monthly and action any input or
suggestions, like new offerings or discount bundles
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47 End of sea son tasks
 Create flyers for fall leaf removal services by October 1, 2022
 Print and distribute flyers by October 10, 2022
 Monitor equipment sales throughout fall to replace or grow tool
inventory below budget
 Draft, review and send end of season thank you email for our
client list and include satisfaction update survey by November 30,
2022
 Issue final payments to employees and close seasonal books by
December 15, 2022
 Review final customer survey data during the offseason
 Draft projections for the following year based on customer survey
response by January 30, 2023
Source: https://www.indeed.com/career -advice/career -
development/marketing -implementation --example

2.2.4 Marketing Mix 4 P’s –
Concept of Marketing Mix
Marketing mix is a set of critical elements used by a brand to build the
company’s market presence. Although the Ps are interdependent, the marketing
specialists can consider each component sep arately according to the industry and
marketing strategy’s goal and then combine them to deliver the best value to the
customers.Initially, the marketing mix consisted of four groups of variables
which are product, price, place, and promotion. E Jerome McCarthy introduced
the model in 1960. In 1981, Booms and Bitner added three extra elements,
including process, people, and physical evidence, that were more applicable for
services marketing.
A marketing mix can help you determine how to bring a new product to the
market or test your current marketing strategy . With the help of the model,
businesses can devel op advantages, minimize drawbacks, improve
competitiveness and adaptability and increase collaboration between departments
and partners
Let us now have a brief idea about the four components of marketing mix.
Product:
Product refers to the goods and servic es offered by the organisation. A
pair of shoes, a plate of dahi -vada, a lipstick, all are products. All these are
purchased because they satisfy one or more of our needs. We are paying
not for the tangible product but for the benefit it will provide. So, in
simple words, product can be described as a bundle of benefits which a
marketeer offers to the consumer for a price. While buying a pair of shoes,
we are actually buying comfort for our feet, while buying a lipstick we are
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48 Product can also take the form of a service like an air travel,
telecommunication, etc. Thus, the term product refers to goods and
services offered by the organisation for sale.
Definitions by famous authors
Product is a set of tangible and intangible attributes inc luding packaging,
colour, price, manufacturer’s prestige, retailer’s prestige and
manufacturer’s andretailer’s services which buyer may accept as offering
satisfaction of wants andservices”. ..... Wil liam J. Stanton
“A product is more than just a physical product with its related functional
andaesthetic features. It includes accessories, installation, instructions on
use, thepackage, perhaps a brand name, which fulfils some psychological
needs andthe a ssurances that service facilities will be available to meet the
customerneeds after the purchase”
Price:
Price is the amount of money customers have to pay to obtain the
product(Philip and Armstrong). Price: refers to the value that is put for a
product. I t depends on costs of production, segment targeted, ability of the
market to pay, supply - demand and a host of other direct and indirect
factors. There can be several types of pricing strategies, each tied in with
an overall business plan. Pricing can als o be used a demarcation, to
differentiate and enhance the image of a product.
Having made decisions about products, the marketer needs to decide how
to price them. Price is the amount of money asked in exchange for the
product. It must be reasonable so as to enable the consumers to purchase
the product. While fixing the price of a product, the management should
consider factors such as cost, ability of the consumers, competition,
margin of profit etc. Price is what you pay and value is what you get.
Place:
 Goods are produced to be sold to the consumers. They must be made
available to the consumers at a place where they can conveniently
make purchase. Woollens are manufactured on a large scale in
Ludhiana and you purchase them at a store from the nearby mark et in
your town. So, it is necessary that the product is available at shops in
your town. This involves a chain of individuals and institutions like
distributors, wholesalers and retailers who constitute firm’s
distribution network (also called a channel o f distribution). The
organisation has to decide whether to sell directly to the retailer or
through the distributors/wholesaler etc. It can even plan to sell it
directly to consumers.

 Place is defined as the location where a firm expects to find its
custo mers and consequently, where the sale is carried out. It is the area
or location of the consumers and not the place of the business. Place in
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49 distribution or intermediary. A firm has to underst and the place of the
consumers and choose adequate distribution network or channel to
reach that place. For large -scale distribution, the services of
wholesalers, retailers and other marketing intermediaries are required.
A firm has to choose a channel whi ch is convenient, economical and
suitable for the distribution of a specific product
Promotion:
Promotion is the communication link between the firm and the consumer.
Promotional measures are necessary to inform the consumers about a
product and its featur es. Promotion consists of all activities aimed at
inducing and motivating customers to buy the product.
According to Stanton, “promotion encompasses all the tools in the
marketing mix whose major role is persuasive communication.”
Advertising, personal sel ling, sales promotional programs and publicity
are the major promotional tools.
Promotion: this refers to all the activities undertaken to make the product
or service known to the user and trade. This can include advertising, word
of mouth, press reports, incentives, commissions and awards to the trade.
It can also include consumer schemes, direct marketing, contests and
prizes. If the product is manufactured keeping the consumer needs in
mind, is rightly priced and made available at outlets convenient to t hem
but the consumer is not made aware about its price, features, availability
etc, its marketing effort may not be successful. Therefore, promotion is an
important ingredient of marketing mix as it refers to a process of
informing, persuading and influenc ing a consumer to make choice of the
product to be bought. Promotion is done through means of personal
selling, advertising, publicity and sales promotion. It is done mainly with a
view to provide information to prospective consumers about the
availability , characteristics and uses of a Product.
Example
Apple marketing mix
Apple's marketing is so good that it can turn its customers into loyal supporters
who will wait in line for hours to receive each new product the comp any
introduces.
 Product. The company is best known for iPhone, iPod, and
Macbook with a large selection of additional accessories. Apple’s
guiding principles include creativity and innovation, so the
company creates easy -to-use and stylish products and con stantly
improves them. The product design is kept secret, and the
customers usually expect fresh and exciting solutions.
 Price. The company established its image as a premium and luxury
brand, so the prices are above average. As Apple invests in R&D
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50 production constitute a major part of the budget. The company
charges a high initial price for the products and lowers it overtime
to reach the price -sensitive segment of the target audience.
 Place. To maintain control over distribution, the company keeps
strict standards for the shops allowed to sell their products. Apple
distributes the products at Apple Stores, official websites, and via
third parties such as authorized and telecommunication sellers.
 Promotion. Apple avoids information overload, extensive product
feature lists, and distracting effects. The company emphasizes the
unique value proposition and rarely shows the price of the
products.

2.2.5 Importance of 4P’s
The concept of marketing mi x is the foundation of modern marketing
management. The concept is important on account of the following
reasons:
 It provides a valuable guide for resource allocation: The decision of
allocating financial and human resources is dependent on the concept
of marketing mix. Since these resources are limited and precious, they
should be used in the most judicious manner.

 It helps to allocate the responsibilities: The challenging job of
marketing is the result of a team work. It means the responsibilities are
to be allocated to the members of the marketing team.

 Facilitates communication: Communication is an essential part of
marketing mix. Through promotional activities, the firm should inform
customers about its products.

 It helps in goal achievement: The goa l of the business may be profit
maximization. It can be achieved by combining the elements of
marketing in proper proportion.

 Promotes customer satisfaction: A properly designed marketing mix
can help in delivering maximum satisfaction to the customers by
fulfilling the needs and wants of customers.

 It helps in a clean mix creation
Your marketing mix should have all the P’s compatible with each
other. The price should be compatible with the placement of the
product. The product should be compatible with the promotions . In
general, all the P’s are intrinsically linked to each other.
As a result, when you are making a marketing mix, it becomes a chain
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51 the chain longer. Whenever you are considering adding a new feature
or changing existing things, you have to look at the overall picture,
which helps in creating a clean marketing mix for the product.
 Marketing mix helps in New pr oduct development

While designing an existing product, there are any number of ideas
which can come up for a related product that can be designed by the
company. The pricing , place and promotio ns might be different for
such a product. Nonetheless, it can be classified as a new product and
hence while designing the marketing mix, the company can come up
with good ideas for New Pro duct Development as well.
Marketing mix helps increase the product portfolio
Whenever you want to increase the product depth or product line and
length , you have to make minor changes to the product. In essence, you
are making minor changes in the marketing mix itself. You are making
changes to the product features, to its pricing and possible to its
promotions. As a resu lt, by altering the marketing mix and certain features
within it, you can end up with an enlarged product portfolio .
It helps in differentiation
When you analyse the marketing mix of Competitors, there are many
different ways that you can differentiate yourself from t he competitor. The
competitor might have poor promotions and by analysing them, you can
create better promotions o f your own product.
The competitor might have poor placement of products or he might have
the wrong process or the wrong people in place. All this can be improved
upon giving you a better marketing mix and therefore a competitive
advantage in the market .
2.2.6 Alternative Marketing Mix Prepositions
The world is full of uncertainty and challenges including climate change,
poverty and inequality
 One thing that today is need of hour is sustainable business strategy.
 The general goal of a sustainable business strategy is to positively
impact the environment, society, or both, while also benefiting
shareholders.
 One common way to understa nd a business’s sustainability efforts is
using a concept known as the triple bottom line which includes Profit,
People and Planet.
 The triple bottom line is a business concept that posits firms should
commit to measuring their social and environmental imp act—in
addition to their financial performance —rather than solely focusing on
generating profit, or the standard “bottom line.”
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52 The Triple Bottom Line Concept (TBL) framework or theory broadens the
focus of the business on social and environmental factors and not only on
the financial bottom line. The triple bottom line measures a company’s
degree of economic value, social responsibility and its impact on
the environment .
The phrase was coined and introduced in the year of 1994 by John
Elkington and later used in his 1997 book “Cannibals with Forks: The
Triple Bottom Line of 21st Century Business.
One of the key challenges with the Triple Bottom Line Concept is the
difficulty of measuring the social and environmental bottom lines, which
necessitates the three separate accounts being evaluated on their own
merits and related factors affecting them.
TRIPLE BOTTOM LINE MEANING:
Normally, a company’s bottom line on its income statement is its net
income, i.e., its profits but in the case of Triple Bottom Line Concept it is
intended to advance the objective of sustainability in the overall business
pract ices, in which the focus of companies is extended beyond just higher
sales and profits and includes social and environmental issues to measure
the total cost of doing business.
The company t hat intends to pursue the Triple Bottom Line Concept must
consciously consider the social and environmental factors, in addition to
the economic bottom line, in making investment and business decisions.
Deploying money and other resources, such as labor to a project or an
investment can either contribute to all these three goals or focus on profit
at the expense of one or both of the other two.
Some of the repercussions that have come about from ignoring the concept
in the name of profits include the destruction of the rainforest, exploitation
of labor, and damage to the ozone layer amongst other such crucial effects
on the environment and human resources.
The concept has actually changed the way businesses, n onprofits, and
government organizations measure the factors of sustainability and
the performance of projects or policies. Beyond the foundation of
measuring sustainability on three fronts —people , planet and profits —the
flexibility of the concept allows the organizations to apply the concept in a
manner suitable to their specific needs and requirements and as per the
merit of the case.
Though there are certain challenges to putting the Triple Bottom Line
Concept into the actual practi ce. The challenges include measuring each of
the three categories, finding applicable data, and calculating a project or
contribution to sustainability. However, keeping these challenges aside,
the framework allows organizations to evaluate the consequence s of their
decisions from a truly long -term perspective.
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53

Source:https://www.researchgate.net/figure/The -interconnection -of-the-
elements -of-the-Triple -Bottom -Line-concept_fig1_3291854
 PEOPLE:
In the triple bottom line concept, the “people” refers to all p o s s i b l e
stakeholders. This includes the company’s employees and
shareholders, as well as its customers, affected communities and
people at every stage of the supply line. It even includes future
generations that may feel the impact of the company’s doing s. The
people, planet and profit theory holds that a business must ensure that
all people affected by it will benefit in some way.

Employees are acclaimed as the assets of any organization.
a) Your labours,
b) the community in which you work and
c) the hu man capital that you utilize need some assurance that you are
not only using them but also giving something in return to them.

You can return them in terms of equal opportunity employer, fair
distribution of labor wages, and resolving health and poverty i ssues.

It has been widely recognized and reported that the companies who
ignore their people and social good are subjected to higher economic
costs and lower profits.

The value in focusing on the people goes beyond the workplace
because modern consumers are more interested in supporting
companies that align with their beliefs. The importance of doing
something for the people is crucial as millennials take over the mantle
as the core demographic and the biggest spenders in the market.
Millennials will have spent $1.4 trillion by the end of 2020 and much
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54 millennials will only s upport brands that fit their values, which include
how companies take care of their employees, community, and the
environment. If doing something for the people is important to the
biggest segment in the market, it should also be important for your
busines s

 PLANET:

A company can also demonstrate its commitment to people, planet and
profit by reducing waste, using post -consumer recycled materials and
even partnering with suppliers that have established eco -conscious
policies.

Companies are using natural resources and raw materials for the
manufacturing and production of products all the time. Thus, it is also
their duty to pay attention to the conditions of our planet.
If the use of energy resources is not efficient

If greenhouse gas emissions are pollut ing the environment If oil spill
accidents are contaminating the sea, oceans, and lands, and
If an ecological system gets disturbed because of business operations,
then who is responsible?

In contrast, if we perform sustainable activities for the sake of our
environment, it gives us an upper hand over our competitors .

PROFIT:

Your organizational activities are also playing some part in maintaining
the economic system, not for today only but for future generations as
well. So, you can’t make it without earning profits for your company.
After all, who wants to earn loses!

One of the famous examples is IKEA , a renowned Swedish furniture
company. Ikea raised its sales to 37.6 billion dollars in 2016, but it
didn’t swallow all the profit, it turned the profits in recycling the waste
material like the remnants of the tree and exploited that wastage in
making some of its top-sellin g products . IKEA’s annual revenue
increased from $44 billion in FY2019 to $46.7 billion in FY2020,
which is impressive, given the uncertainties in the market throughout
the period. The company has been attaining high profits even after
increasing its investment in renewable energy and sustainable sources
of raw materials.

Now, it is recognized as the company that adds “zero waste to landfill.”

Hence, the salient point is your economic value promotes and supports
the people of tomorrow when you perform all your business operations
with the inclusion of the environmental sustainability aspect. The
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55 attain e ach goal. It has invested more in the production of renewable
energy to match its consumption, strives to ensure 90% of its home
furnishing products are more sustainable, and seeks to source 100% of
its wood, paper, and cardboard from more sustainable sour ces. In 2020,
the furniture brand successfully phased out single -use plastic and
replaced it with renewable or recyclable options, which is one of th e
commitments it made in June 2018. Also, it replaced disposable cups,
cutlery, bowls, plates, and straws for all IKEA restaurants and cafés
with items made with materials from renewable sources. IKEA is closer
to meeting all its sustainability goals and c ontinues to make profits
along the way.

2.3 MARKETING PLAN

Planning is deciding in advance what to do, how to do it, when to do it
and who is to do it. Planning is simply a rational approach to
accomplish an objective. It bridges the gap from where we ar e & where
we want to go. Planning is the first management function to be
performed in the process of management. It governs survival, growth
and prosperity of any enterprise in a competitive and ever changing
environment.
Planning is an analytical process which covers:

1. Analysis of the situation or environment,
2. Assessment of the future opportunities and threats,
3. Determination of objectives and goals in the light of the future
environmental forces and
4. Selection of the best strategy or the course of action from among the
alternative strategies to achieve the objectives.

Planning is the first and the foremost function of management.
Planning precedes all the functions. Marketing planning is the starting
point of all marketing and business activitie s of an enterprise.

Marketing planning is the process of anticipating future events and
developing strategies to achieve organisational objectives. It involves
designing activities relating to marketing objectives. Marketing
planning of an organisation is planning for that organisation’s revenue -
generating activities.

It must begin with setting down the corporate plans and should be
followed through with plans for each separate function:

1. The first step in marketing planning process is setting down
marketing objectives and policies.

2. The second step is designing the marketing system. In the marketing
system, a company has to design/define each function with its
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56 3. The third step is to develop separate objectives, programmes, and
strateg ies of each function, so that they can be assessed for the target
purpose and the broad objectives. If any function cannot meet its
objectives, have to be modified for that functional area.

4. The fourth step is drawing of detailed plans for each function for a
shorter period, i.e., a quarter, half a year or a year. It will be helpful
in defining responsibilities, timing and costs needed to achieve the
short -term objectives.

5. The fifth step is merging the marketing plans into organisational
plans.

2.3.1Marketing Plan Importance

A business firm has to make various marketing decisions. These
decisions actually emerge from the complex interaction of a large
number of persons carrying out diverse responsibilities in the marketing
organisation. Being part a nd parcel of the over -all management, the
marketing executives are deeply involved in the process of planning.
Marketing planning defines the role and responsibilities of marketing
executives in such a way as to achieve the goals of the firm.

It lays emph asis on the allocation of marketing resources in the best
and most economical way. It gives an intelligent direction of marketing
operations. Marketing planning involves the preparation of policies,
programmes, budgets etc., in advance for carrying out the v a r i o u s
activities and functions of marketing to attain the marketing goals.

According to American Marketing Association, “marketing planning is
the work of setting up objectives for marketing activity and of
determining and scheduling the steps necessar y to achieve such
objectives.” Planning is the first management function to be performed
in the process of management. It governs survival, growth and
prosperity of any enterprise in a competitive and ever -changing
environment.

The connecting link of mark ets to marketing is the process and the
function of marketing management. Marketing management is the
blending factor of markets and marketing. Today the consumer is a
complicated, emotional and confused individual. His buying is based
on subjectivity and not often backed by objectivity. The introduction of
innumerable brands of toilet soaps, talcum powders is examples.

Every company must look ahead and determine where it wants to go
and how to get there. Its future should not be left to chance. To meet
this need, companies use two systems a strategic planning system and
marketing planning system. Strategic planning provides the route -map
for the firm. Strategic planning serves as the hedge against risk and
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57 Marketing has been described as the ra ilway engine which pulls all the
other departmental carriages along. Marketing planning is the interface
between the enterprise and its market. We had explained that marketing
places the consumer at both the beginning and the end of the business
process.

Any firm practising marketing in the proper sense has to identify
correctly the needs of the consumer, translate the needs into suitable
products and services, deliver those products and services to the total
satisfaction of the consumer and through the pr ocess generate profits
for the firm.
Importance of Marketing Planning:

Marketing planning is a systematic and disciplined exercise to
formulate marketing strategies. Marketing planning can be related to
the organisation as a whole or to strategic business u n i t s ( S B U ) .
Marketing planning is a forward looking exercise, which determines the
future strategies of an organisation with special reference to its product
development, market development, channel design, sales promotion and
profitability.

The various importance of marketing planning are :

1. To Face Future Uncertainties:

As the future is always clouded with risk, it is only pertinent that
measures are taken as protection against unforeseen risks. An expert
marketing manager makes marketing forecast on the basis of careful
analysis of present circumstances and trends, and then sets the
objectives for the future.

He also takes into account any situation that is likely to arise in the
future which may have an impact on the company’s marketing plans.
For example, a marketing manager may take into consideration the
probable entry of new competitors in the same product line while
making plans.

2. Provides Focus to Marketing Activities:

Efficient marketing planning helps in focusing the various activities ,
programmes and operations of the department towards the same
direction - achieving the goals of the marketing department in a way that
is aligned with the overall business success.

3. Best Utilization of Opportunities:

The future is not just fraught wit h risks, but it is also full of viable
opportunities. Marketing planning helps the organization to identify the
opportunities that may arise in future and seize them before the
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58 light on a number of emerging consumer needs and wants which can be
successfully converted into marketing ideas.

4. Determination of the Right Marketing Mix:

The marketing mix is the combination of the various marketing
elements like product, price, place, promot ion, people, physical
evidence, etc. which is used by an organization to influence the demand
for its products or services. A good marketing plan helps to determine
the appropriate proportion of the various aspects of the marketing mix
to create the maximu m appeal to customers.

5. Better Coordination:

Marketing plans are basically formulated for the marketing department,
but they are aligned with the overall objectives of the company.
Therefore it helps to coordinate the activities of all the departments so
that coordination is achieved in the performance of the marketing
department.

6. Satisfaction of the Customer:

The business exists because of the customer and can operate profitably
only through the satisfaction of his wants. Marketing planning entail s
the study of the customer wants and directs all marketing efforts
towards the satisfaction of these needs. A marketing plan which is
based on extensive consumer research lays the maximum emphasis on
customer satisfaction.

2.3.2 Types

Marketing Plannin g provides the framework of the advertising and
marketing efforts made for the business. It describes the role and
responsibilities of a marketing manager to accomplish the objectives of
the company. It gives prominence to the distribution of marketing
resources pleasantly and economically and provides a creative direction
for marketing operations.

Marketing planning consists of the policies, programs, budgets,
marketing mix , histor ical data, current market position and future
predictions of the business. However, a good marketing plan also
requires a solid marketing strategy as without a proper marketing
strategy marketing plan cannot become useful for the business .

Marketing planning can be divided into short -term and long -term. Let’s
discuss both to give you a more comprehensive unders tanding of which
one (or both) is right for your business objectives.
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59
Source: https://theinvestorsbook.com/marketing -planning.html

1. Long -Term Marketing Planning
Long range planning involves tentative determination of the
enterprise’s broad goals to be achieved and the strategies to be adopted
for the purpose over a long period of time. LTMP covers a time which
is long enough to provide the marketing management with an
opportunity to anticipate future problems and thus to have a greater
freedom of act ion to resolve them in an orderly manner.

According to Peter F. Drucker, “long range planning is not master -
minding the future. It does not deal with future decisions. It deals with
the futurity of present decisions. It is not an attempt to eliminate risk .
Rather it seeks to raise the capacity to take risks.” These have great
relevance’ to a long term planning for marketing also. The goals
generally relate to sales, market share, the range of new products,
markets to be pursued, the lines of business which the enterprise should
go in etc.

Long -term marketing is a strategy that outlays more general objectives
for the next 10 years. Although short -term marketing is easier to
conceptualize as it focuses on the now; once you have announced a new
merger or hera lded a new acquisition, what comes next?

Every company needs to have a long -term marketing plan that keeps the
brand fresh and relevant in the eyes of the customers. Long term
marketing is beneficial to improve on existing messaging, figure out
what works and what doesn’t and optimize leads and conversions.

Examples of long-term marketing include:
Public Relations (PR)
Social media
Paid search engine optimization (SEO)

2. Short –Term Marketing Planning
Short -term marketing, also known as operational or tactical marketing,
is a plan for up to one year. This method is typically implemented to
promote sales and promotions, new products and services and other
events foreseen in the next month to 12 months
STMP has two objectives:
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60 (a) Implementation of LTMP through programmes and budgets and
(b) Improvement of operating performance.

The plans are normally sub -divided into monthly or weekl y plans for
control purpose. Mostly short term plans are in the form of budgets.
Periodically, the budgeted figure is compared with the actual
performance, variations are considered for corrective steps.

Short -term marketing, also known as operational or tactical marketing,
is a plan for up to one year. This method is typically implemented to
promote sales and promotions, new products and services and other
events foreseen in the next month to 12 months.

Short -term marketing includes a detailed action pla n of the type of
marketing (online, print, paid, organic, etc)., who will carry out the
strategies, a budget, a sales forecast and expected reach and profit.

Examples of short -term marketing include:
Price promotions
Discounts to certain groups (military, teachers)
Trade shows

2.3.3 Content of Marketing Plan
A marketing plan is the first step in creating a successful marketing
progra m for your new business . Fortunately, it doesn’t have to be
complicated in order to work. Here are the ten basic components of a
marketing plan.

You started a company and now you’re thinking about developing a
marketing program, you need to begin with a marketing plan. Having
been in marketing for more than a decade, I have seen my share of
marketing plans. Some are short and to the point, others are hundreds of
pages thick and cost thousands of dollars to produce.

The irony is that many of the expensive marketing plans end up on a
shelf and rarely get implemented. The simple plans, if researched and
implemented effectively, have the greatest impact.

Regardless of the scope of your marketing plan, you must keep in mind
that it is a fluid document. Every business needs to begin with a well
structured plan that is based in thorough research, competitive
positioning and attainable outcomes. Your plan sho uld be the basis for
your activities over the coming months. However, you should always be
willing to enhance or redirect your plan based on what proves
successful.




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61 The various elements of Marketing Plan are:

1. Market Research
Collect, organize, and wr ite down data about the market that is
currently buying the product(s) or service(s) you will sell. Some areas
to consider:
 Market dynamics, patterns including seasonality
 Customers – demographics, market segment, target markets, needs,
buying decisions
 Product – what’s out there now, what’s the competition offering
 Current sales in the industry
 Benchmarks in the industry
 Suppliers – vendors that you will need to rely on

2. Target Market
Find niche or target markets for your product and describe them.

3. Product
Describe your product. How does your product relate to the market?
What does your market need, what do they currently use, what do they
need above and beyond current use?

4. Competition
Describe your competition. Develop your “unique selling proposition.”
What makes you stand apart from your competition? What is your
competition doing about branding?

5. Mission Statement
Write a few sentences that state:
 “Key market ” – who you’re selling to
 “Contribution” – what you’re selling
 “Distinction” – your unique selling proposition

6. Market Strategies
Write down the marketing and promotion strategies that y o u w a n t t o
use or at least consider using. Strategies to consider:
 Networking – go where your market is
 Direct marketing – sales letters, brochures, flyers
 Advertising – print media, directories
 Training programs – to increase awareness
 Write articles, g ive advice, become known as an expert
 Direct/personal selling
 Publicity/press releases
 Trade shows
 Web site

7. Pricing, Positioning and Branding
From the information you’ve collected, establish strategies for
determining the price of your product, where y our product will be
positioned in the market and how you will achieve brand awareness. munotes.in

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62 8. Budget
Budget your dollars. What strategies can you afford? What can you do
in house, what do you need to outsource.

9. Marketing Goals
Establish quantifiable market ing goals. This means goals that you can
turn into numbers. For instance, your goals might be to gain at least 30
new clients or to sell 10 products per week, or to increase your income
by 30% this year. Your goals might include sales, profits, or customer ’s
satisfaction.

10. Monitor Your Results
Test and analyse. Identify the strategies that are working.
 Survey customers
 Track sales, leads, visitors to your web site, percent of sales to
impressions

By researching your markets, your competition, and deter mining your
unique positioning, you are in a much better position to promote and
sell your product or service. By establishing goals for your marketing
campaign, you can better understand whether or not your efforts are
generating results through ongoing r eview and evaluation of results.

As mentioned earlier, be sure to use your plan as a living document.
Successful marketers continually review the status of their campaigns
against their set objectives. This ensures ongoing improvements to your
marketing i nitiatives and helps with future planning.

2.3.4 Strategic Business Unit

If a large organization adopts the SBU strategy, it forms fully functional
departments to manage specific products, services, customers or a
geographical area. These departments ar e independent and set up with
the objective of increasing profits.

A strategic business unit is a term used to represent such an
independent, specialized department or a sub -unit that focuses on a
given objective. It has its own vision, course and mission . Planning for
a strategic business unit is done separately, its goals are different from
that of the parent organization and it focuses on long -term business
performance.

An SBU strategy provides working independence to these sub -units, but
they’re requi red to submit status reports on performance and processes
to the parent organization. Some SBUs may have the power to make
crucial business decisions but most have to report to the head office.

One such case is LG, which has a long list of products manage d by
separate divisions. Each strategic business unit has to not only
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63 manage investments. This way the parent organization can focus on
tracking income, costs and profits.

Over the year s, organizations like LG and Coca -Cola have redefined the
meaning of strategic business units by showing us that SBUs don’t have
to be small projects. They can be large businesses with strong support
functions. They can control marketing, human resource ma nagement,
training and development. A strategic business unit can be extremely
beneficial for an organization in the long run, especially if it has
multiple product structures. Organizations that consider SBU in
strategic management can quickly and effecti vely respond to shifts in
the market.

Definition: A strategic business unit, popularly known as SBU, is a
fully -functional unit of a business that has its own vision and direction.
Typically, a strategic business unit operates as a separate unit, but it is
also an important part of the company. It reports to the headquarters
about its operational status.

Strategic Business Unit Characteristics:

The SBU structure adopted by an organization should play to its
strengths and make good use of the opportuniti es in the industry. Let’s
look at the characteristics of strategic business unit:

As the meaning of a strategic business unit suggests, it’s a strategy to
set up a separate unit of business or a group of businesses that are
allowed to plan autonomously.

The strategy deals with a homogenous set of markets to minimize
diversity. It allows a manager to formulate and implement internally
consistent and coherent business strategies

Responsibilities of profitability, strategic planning and performance lie
with the heads of the respective business units

Each SBU offers unique products and services. No two SBUs within a
firm should compete with the same products for the same customers.
Organizations avoid duplication of products and effort to maximize
economies of scale within the SBUs

2.3.5 Structure of Strategic Business Unit
A strategic business unit structure has independent operating units that
function as autonomous businesses. Within the structure, top corporate
officials assign responsibilities to divis ion owners for business unit
strategy and regular operations. The parent officers are tasked with
developing and executing comprehensive strategies and managing
SBUs with financial and strategic controls. Senior executives make
decisions for each unit as t he SBU structure connects the units with the
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There are three levels in a strategic business unit structure:

At the top sits the corporate headquarters that monitors performance
and process

The next level has SBU groups that carry their status

At the bottom are divisions assembled according to the similarities with
SBUs



Source: https://businessjargons.com/strategic -business -unit.html

From a strategic viewpoint, each strategic business unit is an
independent business. In this system, a single SBU is considered a
profit center led by corporate officials. Parent supervisors don’t focus
on operational control as it allows divisions to quickly respond to
changing industry environments.

Features of Strategic Business Unit

 Strategic Business Unit utilizes a product -market strategy.

 SBU is a part of the organizational structure.

 It is regarded as organizational units that are devoid of individual
and independent legal personality.

 They perform activities that are considered the utmost crucial and
significant for the entire organization concerning decision
making.

 It has a divisional structure determined by its size of production,
accounting processes, research and development activities, and
marketing function.
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65  Strategic Business Unit decision -making autonomy comprises
production, laboratory testing, finance, production preparation,
accounting, and marketing.

 They enable the organ ization to enjoy autonomous planning
functions.
 It is responsible for functions like strategic planning,
performance, and profitability of the division.

 Strategic Business Unit has a set of own competitors.

Need of SBU

Following are the needs of SBUs :
1) To ensure that each product or product line of the hundreds offered
by the company would receive the same attention as if it were
developed, produced and marketed by an independent company.

2) To provide assurance that a product will not get lost amo ng other
products (usually those with larger sales & profits) in a large
company.

3) SBU's makes the organization in organized form . The first princip le
of time management is to get organized. Similarly, one of the first
things an owner got to do is to see his organization clearly.

4) To ensure that a certain product or product line is promoted and
handled as though it were an independent business.

5) Dividing products into SBU's helps you stay in touch of the market
separately for each and every product. Thus a marketing
manager/sales manager may be assigned one product at a time and
will be responsible for that product itself. Thereby he may give
valuable contribution in maintaining the STP of a product in the
target market.

6) SBUs propagates the correct decision making. The decisions can be
at the micro level ( managing STP, strategies ) or it can be at the
macro level (investments from the corporate fund, whether to
continue investing?).

7) By micro managing eac h and every product and dividing it into
SBU's, an owner can obtain a holistic view of the organization. This
view is also used in preparing the financial statements as well as to
keep tabs on the investments and returns for the organization from
each SBU. Thus the overall profitability of the firm can be decided.

8) The best reference for investments in SBU's can be the BCG matrix .
In the BCG matrix, the SBU's are divided as per their market share
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66 type of investments which each product needs can be decided. T his
is possible only if each product is treated as a completely different
SBU. This SBU may be a composition of one category of product
(such as shampoo) or in case of larger organizations it may even be
one single type of product (such as LED or LCD telev isions).



Source : https://www.thepowermba.com/en/blog/bcg -matrix

9) Naturally once the organization is organized, the management can
micro manage things. For example, large companies like HUL and
P&G (the best examples of multi product organizations) have at
least 30 different products at all times. Each of them requiring
separate manpower, strategies, expenses and returns. Thu s this
needs micro managing of the highest aspect. Micro managing helps
the management to focus on each and every product separately.

Advantages of Strategic Business Units
The advantages of SBUs are as follows:

1) Decentralization of Authority:
Decentr alization of authority is caused because it reduces the span of
control. Decentralization has its own effect on the organizational
effectiveness and motivation system. The juniors feel more honoured
and empowered.

2) Better Co -ordination:
There is perfect co-ordination between different divisions because they
are similar strategic units. There will be more complementary than
competition.
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67
3) Fast Formulation and Effective Implementation of Strategies:
The strategy formulation is rendered easier and cosier as similar SBUs
are under one manager who reports back to General Manager and the
CEO. The message that comes from CEO leads to effective
implementation. Each division has the participation in both planning
and implementation.

4) Assured Accountability:
Each division that comes under a SBU manager is accountable for its
performance under, normal or over. Similarly each SUB is accountable
to the general manager and so on.

Disadvantages of Strategic Business Units

The disadvantages of SBUs are as follows:

1) Increase in Operating Costs:
The operation costs increase because this structure increases one more
layer in the organizational structure. Admini strative overheads paid-up.

2) Gap between Divisions and Head Office:
This gap is created because extra layer that comes in between the head
office and the SBUs. This gap reduces direct links with the divisions.
This delays the communication process which is a must for twoway
flow of information for decision -making and assessing the performance.

3) Reduced Flexibility:
In order to achieve one thing anot her is to be sacrificed in part it not in
goal. The decentralization dilutes the degree of flexibility which
encourages slow movement of information.

4) Dirty Politics and Unwanted Competition:
Under this structure SBUs are at the top where there is going t o b e
clamour for resources and foul play of politics because all SBUs are not
cash cows or stars or dogs or even question marks. This categorization
leads unhealthy competition.

2.3.6 SWOT Analysis

SWOT is an acronym for Strengths, Weaknesses, Opportun ities and
Threats. By definition, Strengths (S) and Weaknesses (W) are
considered to be internal factors over which you have some measure of
control. Also, by definition, Opportunities (O) and Threats (T) are
considered to be external factors over which yo u have essentially no
control.

SWOT Analysis is the most renowned tool for audit and analysis of the
overall strategic position of the business and its environment. Its key
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68 business mo del that will best align an organization’s resources and
capabilities to the requirements of the environment in which the firm
operates.

In other words, it is the foundation for evaluating the internal potential
and limitations and the probable/likely opp ortunities and threats from
the external environment. It views all positive and negative factors
inside and outside the firm that affect the success. A consistent study of
the environment in which the firm operates helps in
forecasting/predicting the chang ing trends and also helps in including
them in the decision -making process of the organization.




Source:http://www.cbpp.uaa.alaska.edu/afef/swot_analysis.html

An overview of the four factors (Strengths, Weaknesses, Opportunities
and Threats) is given below -

1. Strengths - Strengths are the qualities that enable us to accomplish
the organization’s mission. These are the basis on which continued
success can be made and continued/sustained.

Strengths can be either tangible or intangible. These are what you are
well-versed in or what you have expertise in, the traits and qualities
your employees possess (individually and as a team) and the distinct
features that give your organization its consistency.

Strengths are the beneficial aspects of the organizat ion or the
capabilities of an organization, which includes human competencies,
process capabilities, financial resources, products and services,
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69 strengths are huge financial resources, broad p roduct line, no debt,
committed employees, etc.

2. Weaknesses - Weaknesses a r e t h e q u a l i t i e s t h a t p r e v e n t u s f r o m
accomplishing our mission and achieving our full potential. These
weaknesses deteriorate influences on the organizational success and
growth. Weaknesses are the factors which do not meet the standards we
feel they should meet.

Weaknesses in an organization may be depreciating machinery,
insufficient research and development facilities, narrow product range,
poor decision -making, etc. Weaknesse s are controllable. They must be
minimized and eliminated. For instance - t o o v e r c o m e o b s o l e t e
machinery, new machinery can be purchased. Other examples of
organizational weaknesses are huge debts, high employee turnover,
complex decision making process, n arrow product range, large wastage
of raw materials, etc.

3. Opportunities - Opportunities are presented by the environment
within which our organization operates. These arise when an
organization can take benefit of conditions in its environment to pla n
and execute strategies that enable it to become more profitable.
Organizations can gain competitive advantage by making use of
opportunities.

Organization should be careful and recognize the opportunities and
grasp them whenever they arise. Selecting th e targets that will best
serve the clients while getting desired results is a difficult task.
Opportunities may arise from market, competition, industry/government
and technology. Increasing demand for telecommunications
accompanied by deregulation is a gr eat opportunity for new firms to
enter telecom sector and compete with existing firms for revenue.

4. Threats - Threats arise when conditions in external environment
jeopardize the reliability and profitability of the organization’s
business. They compoun d the vulnerability when they relate to the
weaknesses. Threats are uncontrollable. When a threat comes, the
stability and survival can be at stake. Examples of threats are - unrest
among employees; ever changing technology; increasing competition
leading to excess capacity, price wars and reducing industry profits; etc.

Advantages of SWOT Analysis

SWOT Analysis is instrumental in strategy formulation and selection. It
is a strong tool, but it involves a great subjective element. It is best
when used as a guide, and not as a prescription. Successful businesses
build on their strengths, correct their weakness and protect against
internal weaknesses and external threats. They also keep a watch on
their overall business environment and recognize and exploit n ew
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70
SWOT Analysis helps in strategic planning in following manner -
 It is a source of information for strategic planning.

 Builds organization’s strengths.

 Reverse its weaknesses.
 Maximize its response to opportun ities.

 Overcome organization’s threats.

 It helps in identifying core competencies of the firm.

 It helps in setting of objectives for strategic planning.

 It helps in knowing past, present and future so that by using past
and current data, future plans c an be chalked out.

 SWOT Analysis provide information that helps in synchronizing
the firm’s resources and capabilities with the competitive
environment in which the firm operates.
EXAMPLE
SWOT Analysis of Google
Introduction:
Google is probably the world’ s best -known company for pioneering
the search engine revolution and providing a means for the internet
users of the world to search and find information at the click of a
mouse. Further, Google is also known for its work in organizing
information in a con cise and precise manner that has been a game
changer for the internet economy and by extension, the global
economy because corporations, individuals, and consumers can
search and access information about anything anywhere and
anytime.
Strengths
 Market Lead er in Search Engines
Perhaps the biggest strength of Google is that it is the undisputed
leader in search engines, which means that it has a domineering and
lion’s share of the internet searches worldwide. Google has more
than 65% of the market share for i nternet searches and the
competitors do not even come close to anywhere that Google does.




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71  Ability to Generate User Traffic
Google is a household brand in the world, its ability to drive
internet user traffic is legendary, and this has helped it becom e one
of the most powerful brands in the world. Indeed, Google averages
more than 1.2 Billion hits a month in terms of the unique searches
that users perform on the site. This gives it an unrivaled and
unparalleled edge over its competitors in the market.
 Revenue from Advertising and Display
Its revenue model wherein it garners humungous profits through
partnerships with third party sites has held the company in good
stead as far as its ability to mop up resources and increase both its
top-line as well as b ottom -line is concerned. This is another key
strength of the company that has helped it scale greater heights.
 Introduction of Android and Mobile Technologies
The last of the strengths discussed here relates to its adoption of
Android and Mobile technologi es, this has resulted in it becoming
a direct competitor of Apple as far as these devices, and operating
systems are concerned.
Weaknesses
 Excessive Reliance on Secrecy
Google does not reveal its algorithm for searches or even its basic
formula as far as i nternet searches are concerned leading to many
experts slamming the company for being opaque and hiding behind
the veneer of secrecy. However, in recent years, Google has taken
steps to redress this by providing a bare bones version of its unique
search en gine algorithm.
 Falling Ad Rates
In recent years and especially in 2013, the company has been faced
with declining revenues from ads and as a result, the profitability of
the company has taken a hit. This is partly due to the ongoing
global economic slowdo wn and partly because of competitors
snapping at its heels in a more aggressive manner. Indeed, Apple
has already taken steps to garner search engine revenues in its
devices and hence, Google must be cognizant of the challenges that
lie ahead.
 Overdependen ce on Advertising
Google’s business model relies heavily on advertising and the
numbers reveal that it gets more than 85% of its revenues from ads
alone. This means that any potential dip in revenues would cost the
company dearly (literally as well as meta phorically). The point
here is that Google has to devise a more robust business model that
embraces e -commerce and mobile commerce along with its current
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72  Lack of Compatibility with next generation devices
Another weakness for Google is that it is not compatible with many
next generation computing platforms including mobile and tablet
computers and this remains an area of concern for the company.
Opportunities
 Android Operating System
Perhaps the biggest opp ortunity for Google lies in its pioneering
effort in providing the Android OS (Operating System) which has
resulted in its becoming a direct competitor to Apple and Samsung.  Diversification into non -Ad Business Models
As discussed earlier, the company has to diversify into non -ad
revenues if it has to remain profitable and current indications are
that it is adapting itself to this as can be seen from the push towards
commercial transactions using its numerous sites like Google
Books, Google Maps etc.
 Google Glasses and Google Play
The introduction of Google Glasses and Google Play promises to
be a game changer for Google and this is a significant opportunity
that the company can exploit. Indeed, this very aspect can make the
company take the next evolutionar y leap into the emerging world
of nano -computing.
 Cloud Computing
Cloud Computing remains a key opportunity for Google as it is
already experienced in providing storage and cloud solutions.
Indeed, if not anything, it can move into the enterprise market
using the cloud -computing paradigm.
Threats
 Competition from Facebook
The advent of Social Media has seriously threatened Google’s
dominance in the internet world and the company has to pull an ace
to deal with the increasing features available on Facebook a nd
Twitter.
 Mobile Computing
Another threat to Google is from the emerging area of mobile
computing that threatens to pass the company by as newer
companies seize the opportunity to ramp up their mobile
computing presence.


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73 2.4 DEFENSIVE MARKETING STRAT EGIES
Defensive marketing strategy began to be used in the late 1990”s, and has
been considered as a better alternative to offensive marketing, based on the
traditional saying that precaution is better than cure.
Speaking about defensive marketing sounds like a war strategy , and it is
not far from th e truth. Every time a new product is launched, four to five
brands / firms must prepare to defend their share of the market . The
defensive marke ting strategy can be described as a set of tactics and
actions being used by the leader of an industry, or the top market
shareholders in an industry, to protect their own market share , profitability ,
product positioning and mind share against emerging competito rs.
It applies to any kind of industry where we have a leader in the market and
possible new entrants aiming to compete for the top position. Defensive
marketing can also be used by the second or third highest market share
holder. Any company which has its market share threatened by a
competitor, can use defensive marketing strategies.
Defensive marketing tactics depend on the category of the products where
they are applied. For example, if we speak about products that are
purchased frequently such as FMCG, cosmetics, personal hygiene, etc,
then defensive strategy will mostly target existing customers via a flurry of
different tactics.
However, in the case of products which are purchased less frequently such
as electronics, clothes, etc, than defensive strategy will be more long term
and will address both, existing as well as potential new customers.
The basic question related to defensive marketing strategy is, how should
companies react to the launch of a competitive new brand ? Once you
acknowledge that the re is a potential new entrant in the market who will
eventually compete for the same position as you, you can take several
measures as part of a defensive strategy.
However, first you have to decide the intensity of competition. If the new
company, or a co mpany which is a close competitor, is really innovative
and soon to take over your market share, then you need to start using
defensive marketing strategies
Employed by market leaders, defensive marketing strategies are
implemented any time a new threat to market share appears. The type of
industry doesn’t matter. For example:
Google is the market leader in “cloud” technology services. To stay ahead
of new competitors, the company actually attacks itself by producing new
products that force their old ones i nto obsolescence. It thus presents a
moving target for new competitors, who end up competing primarily
against the old Google products
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74 Tesco was the market leader in general merchandising when Wal -Mart
began to move in, threatening to attract their custom ers with lower prices.
Tesco responded with lowering the price on many items, while
simultaneously improving the personalization of coupons and promotions.
In so doing and despite Wal -Mart’s ongoing success, Tesco kept hold of
its customer base in many cit ies.
Tylenol was the market leader for non -aspirin pain relievers when Datril
tried to challenge them. Tylenol’s response was so massive and effective
that it actually awoke a “sleepy” market for aspirin alternatives. As a
result, Tylenol is now the market leader for all OTC pain relievers,
including aspirin.
Starbuck s was not the first coffee shop or restaurant to offer free Wi -Fi,
and to promote that fact to customers; but it started doing so in order to
protect its market share from other businesses that were doing just that.
Facebook, the market leader for social media, updated their options for
friends’ lists as a direct response to the “circles” offered on Google+. This
allowed users to establish different levels of involvement in their social
media co ntacts.
In a free -market economy, industry leadership can quickly change, and
even long -established companies can be displaced. So any company with a
dominant market share must constantly be on its guard for new
competition, and be quick to respond with th e right strategy

2.4.1 Importance
It is unnecessary to discuss the need for defensive marketing. The
following are some points that will give you a sense of how crucial
marketing is.
1. When a company has a big market share in an industry and multiple
competitors are continually challenging the leaders, this marketing is
essential.
Leaders cannot disregard their competition, no matter how little, in
today's volatile business environment.
Any new competitor joining the sector puts everyone's market sha re in
jeopardy, not just the leaders. That is why a defensive marketing
strategy is crucial.
2. "Change is the only constant," says an adage. As a result, client
expectations are rapidly evolving. This is why marketing is so
important for businesses since they want to stay relevant by meeting
their customers' requirements
3. For an established company with a wide customer base, defensive
marketing focused on position defense is a useful strategy. The
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75 its products and can simply reinforce its product messages with
consumers. A well -built reputation through quality products makes it
difficult for a new competitor to enter the market and attack the
established company's customer base. The es tablished company simply
uses its defensive marketing to reinforce customer confidence in its
products and swat the newcomer away.
4. Defensive marketing allows the company to improve the product,
increase customer loyalty, maintain its market share, and m ay more.
5. Primary Purpose is to make possible attacks unattractive or discourage
competitors.
6. It is a developed to protect market share, position and profitability.
7. It is a strategy that can be used to keep up top position in local and
existing m arket.
8. This strategy is most successful to keep up the customer’s confidence
which no new competitor can disturb.
9. The purpose of Defensive Strategy is to make a possible attack
unattractive and discourage potential challengers from attacking
anothe r firm.
10. Incumbents try to shape the challenger’s expectations about the
industry’s profitability and convince them that the return on their
investment will be so low.
11. Incumbent needs to take timely action to discourage a challenger from
making an y substantial commitment
2.4.2 Types of Defensive Marketing Strategies
The means used by companies in market leadership positions to defend
their market share from attacks by challengers; six common defence
strategies are position defence, flanking defenc e, pre -emptive defence,
counter -offensive defence, mobile defence and contraction defence
1. Position Defence
The existing position of the respective company in the market is to be
maintained at any cost. One of the most important strategies applied is the
deepening of all old bonds catering to customer satisfaction . This one is
more prone to be the victim of offensive players.
Mostly, a single best -selling product is set as the focus. Acc ordingly, other
parameters are modified to suit the economic conditions while building the
brand name continuously.
Example of Position Defence
The automobile giant Mercedes prefers to stick to the same routine,
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76 On the other hand, Apple does not focus on increasing the RAM of iOS
devices by copying other brands. This helps the tech -savvy people rely
on the quality .
Ultimately, the standards remain high and the position does not plummet at
all.
2. Mobile Defence
A lot of changes are made in the direction of “ not losing the current
position ”. The steps taken are mostly for backing up t he company so that
the diversity in products helps in compensating at all levels. The changes
include broadening the target market, enhancing promotional mechanisms,
adding more products to the catalog, and altering market segments each
time.
Example of Mo bile Defence
The widely known Indian Tobacco Company (popularly abbreviated as
ITC) forms the best example for this category of developmental defense
marketing. ITC has spread its sco pe to food ventures (the daily essential
Aashirvaad wheat), and other significant commodities. Agribusiness is
also a new inclusion , leading to even more profits with the increase in
demand .
3. Counter -Offensive Defence
It is not just an exclusive type of marketing, but also another way of
promoting defensive strategies. The simplest way to defend the position is
to nullify the various downgrading attempts made by attacking
companies. Mainly , the attack is dodged in such a way that it turns
beneficial for the recipient company. Prices are reduced and products are
improved.
Example of Counter -Offensive Defence
Almost all beauty brands have incorporated organic products in order to
suppress the increasing popularity of purely organic brands. This increases
the range and helps them grow at the same time. If the organic companies
begin including synthesized products to tackle this attack, this would be
regarded as a counter -offensive move in the direction of probable profits.
4. ContractionDefence
The contraction defense is the least desirable defense because it involves
retreating frommarkets. If a business doesn’t believe it can s uccessfully
defend those markets, however, then itcan be the best option. This allows
redeploying the resources into other areas.
For example, imagine that you manufacture two products: liquid soap and
bar soap. If youfind that you can no longer compete in the bar soap market,
then it makes sense to retreatfrom that market and focus on liquids .
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77 5. Flanking defence
Flanking marketing is a type of marketing in which one company tries to
displace its competitors in a peripheral market and try to capture the
market segment, which is not well served by the competitor.
The company performing flanking marketing try different strategies to
perform the same, and outperform their competitors.
In can also be said as an indirect market strategy aiming to capture the
market share and segment of its competitors.
The company does this by attacking the weak aspects of the competition
and trying to gain an advantage my performing better on those points.
Example:
Absolut v. Smirnoff – Absolut went into the Vodka market pricin g
themselves almost 50% more than their rivals Smirnoff and flanked the
competition in the premium vodka space.
6. Premptive defence:
A Pre -emptive Defense Strategy is an approach businesses can take when
they sense a threat from a competitior. The idea is to launch an attack on
that company before it is able to attack you.
A more aggressive action, in this case first attacked the
competitor.Another is to achieve broad market envelopment that signals
competitors not to attack.
Pros and Cons of Defensive Mar keting
Pros of Defensive Marketing
The quality is top -notch due to reduced modifications.
Customer satisfaction is ensured at all levels.
The scope of devaluation is increased.
Cons of Defensive Marketing
It is difficult to match up with the emerging trend s.
The strategy might backfire due to lack of funds .
Customers might switch over to newer ventures in search of someth ing
novel
2.4.3 Offensive V/S Defensive Marketing Strategies
Offensive Marketing Strategies:
The offensive marketing strategy is employed when more than one
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78 company only receives a percentage of all sales of that category of
product. Each company has a market share and any company that takes
extra ordinary efforts to gain more market share against competition by
directly attacking the competitors business plan, and taking away its
market is actually descri bed as the offensive marketing strategy .
One of the most successful examples of offensive marketing in history is
the fight of Harley Davidson against Japanese manufactured motorcycles,
so as to gain massive market share in USA. In the 1960’s, Harley
Davidson emerged from near bankruptcy to dominate the market with an
aggressive business strategy based on cheaper, faster bikes from foreign
manufacturers. The company has turned the image of a tough looking
leather clade man on a motorcycle into an icon for the company itself.
They managed to do this by concentrating on the unique features of
its products while pointing out what the competitors product lacked.
Example of offensive marketing – Burger king taking on McDonald’s
directly in this print ad As Americans were using Japanese products which
were described as sleek, fast and cheap, the Harley Davidson company
initiated an offensive marketing maneuver and decid ed to focus selectively
on their own unique selling proposition and gain the market share without
focusing on cheaper alternatives. Thus, Harley Davidson directly attached
We can see the offensive marketing plan especially in politics when there
are new elections and not only in the business sector. In politics,
candidates are continuously trying to plot attacks against their competitors
in order to gain the votes of their opponents.
Any ty pe of company can use this strategy, whether it is small -medium
sized companies or large corporations. The only requirement is that an
organization has to be in direct competition with another one, in order to
be able to employ this strategy. Moreover, the strategy is focusing on
reaching customers who already prefer a competing company or customers
who are undecided which products they become loyal to.
This strategy can be seen a s a complex strategy as it has to communicate
the appeal of its own products but must also understand the strengths and
weaknesses of the competitor’s products / offerings. Therefore, the first
step in pursuing this kind of strategy is to identify competit or’s advantages
and disadvantages.
In order to analyze the effects of the strategy upon their own business,
business should closely monitor the effects of offensive marketing
campaigns and survey the customers for their views of the campaign.
Besides the H arley Davidson example of company successfully employing
the offensive marketing strategy, there are plenty of other such examples
such as Samsung versus Apple , Pepsi versus Coca Cola
The strategy also implies the use of both direct and in direct attacks. In the
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79  Frontal attack: Attack with similar products, price quality
promotions and distribution . It is considered to be highly risky unless
attacker has a clear advantage. Likewise, it is focused on competitor’s
strengths rather than weaknesses.
 Flank attack: Attacking the competitor o n the weak point or blind
spot. It is less risky than the previous kind of attack as it follows the
path of least resistance where competitor is incapable of defending.
 Bypass attack: Also known as the leap frog strategy, it involves
overtaking the competi tors by introducing new strategies as well as
diversifying the products.
 Guerilla attack: Small hit and run attacks to destabilize the
competitor. The attacks can take various forms.
The above strategies are very similar to Market challenger strategies . The
main purpose of the offensive strategy is to destabilize the leader, acquire
market share and realize a boost in sales.
Difference between Offensive and Defensive Marketing Strategies:
Offensive and defensive marketing strategies have distinct benefits,
depending on the status of your small business and how successful you are
in your local market. An offensive strategy pro vides a means for your new
business to hit the market strong and establish a presence, whereas a
defensive strategy can help keep you at the top of your local industry.
Each type of marketing requires careful planning and resource allocation
to reach the l argest number of consumers.
 Responds to Challengers
A defensive marketing strategy is largely reactive to the competition or
perceived occurrences in the market, according to the website for
the Massachusetts Institute of Technology. A defensive strategy seeks to
counter product claims made by the competition or to stem the tide of a
perceived competitor advantage. A company that highlights the
effectiveness of its pro ducts in the wake of competitor claims of product
inferiority is using a defensive marketing strategy.
A company may also seek to introduce products into the market that are
better than its existing offerings as part of a defensive marketing strategy.
Anot her ploy is to emphasize distinctive qualities of a popular product that
sets it apart from competitors. For example, Tylenol fended off
competitors by differentiating itself as the most gentle analgesic. Excedrin
positioned itself as the most effective pa in reliever and Bufferin found a
niche in the middle
 Defends Product Position
For an established company with a wide customer base, defensive
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80 doesn't have to actively work to generate customer interest in its products
and can simply reinforce its product messages with consumers. A well -
built reputation through quality products makes it difficult for a new
competitor to enter the market and attack the established company's
customer base. The established company simply uses its defensive
marketing to reinforce customer confidence in its products and swat the
newcomer away.
 Launches Aggressive Business Strategy
An offensive marketing strategy seeks to attack the market by targeting the
weak nesses of the competition. Offensive approaches emphasize the
company's strengths in comparison. Offensive marketing does not seek to
challenge an industry leader's strengths since that would only play to the
leader's defensive marketing capabilities.
Offensive strategy attacks the industry leader where the company is at its
most vulnerable. An offensive marketing strategy may target an
established industry leader's shaky product safety record by emphasizing
the safety of its own products, for instance.
Many high powered companies routinely wage offensive strategies. For
example, behemoth Walmart takes on all potential competitors by
undercutting prices and dominating markets. When Harley Davidson was
losing market shares to smaller, sleeker Japanese imports , the company
embraced its heavy weight reputation and became the motorcycle of
choice for burly, rugged bikers around the world.
 Exploits Competitor Weakness
The marketing attack from an offensive -minded company must be as
focused as possible. A focused a ttack hammers home the company's
product message to consumers and casts doubt on the industry leader's
weakest areas.
A marketing attack that is too broad risks its message losing focus with
consumers. This may also mean a company using an attacking strate gy
will introduce only one product at first to clearly establish it as a
challenger to the industry leader's own product. Emphasis is placed on
superior qualities that distinguish their brand from subpar products of
rivals.
Offensive Marketing Strategies Defensive Marketing Strategies
Offensive strategy is focused on
achieving competitive advantage. Defensive strategy is focused on
attacking/responding the competitor
in order to take him off
Primary Purpose is to make possible
attacks unattractive or disc ourage
competitors Improving own position by taking
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81
It is a developed to protect market
share, position and profitability. Involves direct & indirect attack
It is a strategy that can be used to
keep up top position in local and
existing market. Retaliatory in nature
Example McDonalds v. Burger King
or Coke v. Pepsi Example – Samsung vs. Apple

2.4.4 POSITION DEFENSE STRATEGY
When a company adopts a Position Défense Strategy, they are focused on
keeping a firm hold on their strong brand perception within the market.
This strategy is focused on customer loyalty and consumer awareness. It’s
about maintaining and defending your position in the minds of your
customer base and prospects in the face of a competitor threat.

Source:https://getlucidity.com/strategy -resources/position -defense -
strategy -guide/
The position defense is the simplest defensive strategy.
o It simply involves trying to hold your current position in the market.
o To do this, you simply continue to invest in your current markets and
attempt to build your brand name and customer loyalty.
o Only negative aspect of this strategy is that it can make you a target for
new entrants to the market
When Would You Use a Position Défense Strategy?
This can be an effective defense strategy when you firmly occupy the best
position in the minds of your audience. If you’re highly regarded by
consumers in your market and have built up a strong brand perception and
loyalty, then that is potentially one of your strongest assets an d defending
it to the hill is a good plan.
When you are the premier brand in the market, a challenger company is
going to have a job on their hands to unpick the way customers think about
your business, organization or product/service, and then an even big ger job
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82 If you are choosing to adopt a Position Defense Strategy, you are
recognizing the importance of a strong brand perception and putting the
focus in place to ensure nothing derails that. You are building a fortr ess
around your brand.
Example:
The UK supermarket giant Tesco deployed an effective Position Defense
Strategy when Walmart made a challenge to their dominance in the UK
market. Tesco launched defensive marketing initiatives that included
highly personaliz ed discount offers and rewards to their customers based
on their extensive customer data.
This level of data on their customers was a clear strategic advantage for
Tesco and by taking action on those insights they were able to offer their
customers a level of service that Walmart, or indeed any new player to the
market, could not compete with.
They undertook a new and concerted effort to reinforce their customer
loyalty in the face of a threat from Walmart.
2.5 SUMMARY
The marketing mix refers to the set of actions, or tactics, that a company
uses to promote its brand or product in the market. The 4Ps make up a
typical marketing mix - Price, Product, Promotion and Place. However,
nowadays, the marketing mix increasingly includes several other Ps like
Packagi ng, Positioning, People and even Politics as vital mix elements.
To successfuly implement any marketing plan , there is need of marketing
strategies to survive in the business and outcast competitors by using
several defensive or offensive marketing strate gies.
2.6 EXERCISE
Fill in the blanks
1.The concept of the marketing mix was developed by_________.
a. N. H. Borden
b. Philip Katter
c. Stanton
d. W. Anderson
Answer: a

2.In SWOT analysis, which one is internal factor?
a) Technology
b) R & D
c) Custome r trends
d) Industry/market structure
Ans: b

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83 3.A marketing plan does not have to be _____
a. Simple
b. Clear
c. Complex
d. Lengthy
e. Both (a) and (b)
f. Both (c) and (d)
Ans: f

4.Short -range marketing plans cover
a. four years or less.
b. three years or less.
c. two years or less.
d. one year or less.
Ans : d

5.A runner -up firm that wants to hold it73 % share in an industry without
rocking the boat
a. Market leader
b. market follower
c. market niche
d. market challenger
Ans : b

Match the col umn
Column A Column B
Product Mix The strategy that a company will use
to market its products to customers
SBU Multi product businesses
Marketing Mix Product, place, price and promotion
Marketing plan position defence, flanking defence,
pre-emptive d efence, counter -
offensive defence, mobile defence
and contraction defence.

Defensive marketing strategy Product assortment

True and false
1. The Marketing process is continous in nature. True.
2. Marketing mix refers to the marketing variables that co mbine to sell a
product to the target market. True.
3. Philip Kotler popularized the concept of 4ps in his book “Basic
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5. Marketing mix is not influenced by environmental factors. Fal se.
Short notes
1. Short note on marketing plan.
2. Write a short note on position marketing strategies.
3. Short note on SWOT analysis.
4. Write a short note on Offensive marketing strategies
5. Short note on product, price , place and promotion.
Answer in brief
1. Define SBU. What are characteristics and advantages of SBU?
2. Explain Marketing mix with an example.
3. What is SWOT analysis? Explain with the help corporate example.
4. Differentiate between offensive and defensive marketing strategies wit h
suitable examples.
5. What do you understand by long term plan and shortterm plan? Explain
marketing plan importance.
2.7 REFERENCE
1. Philip Kotler (1987) Marketing: An Introduction . Prentice -Hall;
International Editions.
2. Ramaswamy, V.S., 2002, Marketing Management, Macmilan India,
New Delhi.
3. https://www.marketing91.com/
4. https://www.marketing -schools.org/types -of-marketing/defensive -
marketing/#section -1
5. https://www.futurelearn.com/info/courses/sustainable -
business/0/steps/78339


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85 Module III
3
MARKETING ENVIRONMENT TRENDS
AND BUILDING CUSTOMER VALUE
Unit Structure
3.0. Objective
3.1. Introduction
3.2. Environmental Analysis
3.3. Customer Value
3.4. Customer Loyalty
3.5. Summary
3.6. Exercise
3.7. Reference
3.0. OBJECTIVE
After stu dying the unit the students will be able:
1. To understand the concept of marketing environment
2. To discuss the internal and external environment analysis
3. To discuss various theories of Environment scanning i.e Porters five
forces, VRIO analysis, PESTLE analys is
4. To understand concept and importance of Customer value, Customer
relationship management and thereby customer satisfaction
5. To examine the consumer buying behaviour and its process.
3.1. INTRODUCTION
A company's marketing system is influenced by a range of external forces.
Some of them are under your control, while others are beyond your power.
It is the marketing manager's obligation to adapt the company's policies to
the changing environment. The term "market environment" is used in
marketing. It refers to the variables and dynamics that influence a
company's capacity to develop and maintain strong customer connections.
A marketer's profession requires them to stay one step ahead of their
customers. It is critical to appreciate the marketing environment in order to
comprehend the worries and motivations of consumers and to change the
product to meet their needs. Marketers employ marketing environmental
scans, a procedure that continuously gathers data about events occurring
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86 3.2. ENVIRONMENTAL ANALYSIS
The marketing environment encompasses all internal and external aspects
that influence the organization's marketing decisions, either directly or
indirectly. An organ ization's internal factors are under its control; but,
external factors are outside its control. Government, technological,
economic, social, and competitive pressures are examples of external
elements; internal aspects include an organization's strengths, limitations,
and capabilities. Marketers study the marketing environment to predict
changes that may occur in the future. These changes may pose both a
threat and an opportunity to the company. Marketers continue to adjust
their strategies and plans in re sponse to these shifts.
The marketing environment is full of opportunities as well as dangers.
Successful businesses understand how critical it is to continually match
and adapt to the changing environment. The marketers of a corporation are
in charge of s potting significant changes in the environment. Marketers,
more than any other group in the firm, must be trend spotters and
opportunity searchers. Although every management in an organisation
must keep an eye on the outside world, marketers have two disti nct
abilities! They follow a set of rules. 2 marketing intelligence and
marketing research 2 or the gathering of marketing -related information
3.2.1. DEFINITION OF MARKETING ENVIRONMENT
According to Philip Kotler:“A company’s marketing environment consists
of the internal factors & forces, which affect the company’s ability to
develop & maintain successful transactions & relationships with the
company’s target customers.”
Growth in terms of sales and market penetration is dependent on
marketing operations, which are in turn dependent on the marketing
environment. The marketing environment is made up of forces that are
outside an organization's control but have an impact on its marketing
efforts. The marketing climate is ever -changing.
As a result, a business must stay current to adapt its marketing efforts to
the needs of the marketing environment. Any change in the marketing
environment is both a threat and an opportunity for the company. An
examination of these changes is necessary for the organization's lo ng-term
sustainability.





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87 Marketing environment


Micro Environment Macro Environment
1. Customers 1. Economic Environment
2. Suppliers 2.Demographic Environment
3. Marketing Intermediaries 3. Political and legal Environment
4. Compeititors 4. Technological Environment
5. Socio Cultural Environment
The following types of environments commonly make up a marketing
environment:
I. Micro Environment
II. Macro Environment
A. MICRO ENVIRONMENT
The micro environment is the environment that is intimately related to the
company and has a direct impact on its operations. There are two types of
environments: supply side and demand side. Suppliers, marketing
intermediates, and co mpetitors who provide raw materials or goods make
up the supply side environment. Customers who consume things, on the
other hand, make up the demand side environment. The internal or task
environment is another name for the micromarketing environment. It
includes all internal environmental aspects that are directly relevant to the
business. As a result, it has a direct impact on the business.
The forces of Micro Environment are as follows :
Customers:
Customers buy the product of the organization for final consumption. The
main goal of an organization is customer satisfaction. The organization
undertakes research and development activities to analyze the needs of
customers and manufacture products according to those needs.
Competitors:
It helps an organizat ion to differentiate its product to maintain its position
in the market. Competition refers to a situation where various
organizations offer similar products and try to gain market share by
adopting different marketing strategies.

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88 Marketing Intermediarie s:
It assists businesses in developing a relationship with their clients. They
assist in product promotion, sales, and distribution. The following are
examples of marketing intermediaries:
I. Resellers: They buy things from businesses and resell them to
customers.
Wholesalers and retailers are examples of resellers.
II. Distribution Centers: These facilities assist businesses in storing their
goods. A distribution centre is an example of a warehouse.
III. Marketing Agencies: They promote an organization's p roducts by
informing clients about their benefits. A marketing agency, for example, is
an advertising agency.
IV. Financial Intermediaries: These companies provide funding for
business transactions. Banks, credit organisations, and insurance
companies are examples of financial intermediaries.
Suppliers:
They supply raw materials for the manufacture of goods and services.
Because the price of raw materials dictates the final price of the product,
suppliers might have an impact on an organization's profit. Or ganizations
must monitor suppliers on a frequent basis in order to be aware of supply
constraints and changes in input prices.
For example: For a car manufacturer, the micro environment will consists
of Car dealers (Marketing Intermediaries), Potential buy ers who want to
buy car (Customers), and suppliers like Tools and spare part vendors, tyre
manufacturers etc.
B. MACRO ENVIRONMENT
A macro environment involves a set of environmental factors that is
beyond the control of an organization. These factors infl uence
organizational activities to a significant extent. Macro environment is
subject to constant change. The changes in macro environment bring
opportunities and threats in an organization.
The following elements of Macro Environment are given below:
DEMO GRAPHIC ENVIRONMENT:
The scientific study of the human population in terms of characteristics
such as age, gender, education, occupation, income, and location. It also
takes into account the growing role of women and technological
advancements. Demographi c variables are another name for these factors.
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89 I. Individuals' interests and inclinations
II. purchasing behaviours,
III. Location of Buyers
Which ar e influenced by their demographic context. Changes in the
demographic environment lead a company to update its marketing
techniques to meet changing client needs. For Example, For a toy
manufacturer, age group of customers is very important who arekids and
tiny toddlers . In rural markets, mostly the agriculture is predominant
occupation, so the marketers sell agricultural inputs like chemical
fertilizers, irrigation based tools etc.
ECONOMIC ENVIRONMENT
The economic environment is another facet of the macr o environment.
This refers to potential customers' purchasing power and how they spend
their money. The economic environment is made up of macro -level
variables such as means of production and distribution that have an impact
on an organization's business. There are two types of economies in this
area: subsistence and industrialised. Agriculture is more important in
subsistence economies, and they eat their own industrial production.
Markets in industrial economies are diversified and carry a wide range of
products. Each is significant to the marketer since they have vastly diverse
spending patterns and wealth distributions. In short, it is a sum total of:
 Economic Policies of the Government
 Economic System of the country
 Economic Condition prevailing in the market.
For example, economic environment will encompass inflation, GDP,
Interest rates etc .
TECHNOLOGICAL ENVIRONMENT:
A country's economic progress is aided by technology. It has become an
unavoidable part of our daily routine. In today's competitive ma rket,
organisations that fail to keep up with ongoing technology advances will
struggle to thrive. Technology is a continually evolving force that provides
marketers with new opportunity to gain market share. Marketers may use
technology to build and offer items that fit their clients' lifestyles. As a
result, marketers must keep track of evolving technological trends.
The technical advancements that affect the marketing environment are
explained in the following points:
a. The rate of technological change: It causes quick product obsolescence.
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90 does not evolve at a rapid rate, the company does not need to make regular
improvements to the product.
b. Research and Development: This contributes to an organization's ability
to grow. To bring innovation to their products, many companies have
created a dedicated R&D staff. Many marketing companies put a lot of
money into res earch and development.
c. Regulations : This refers to government restrictions that prohibit the sale
of dangerous products. Marketers should be aware of these rules in order
to avoid breaking them. The Drugs Controller of India, which sets the
criteria fo r drug manufacture, requires approval from every
pharmaceutical company.
SOCIO -CULTURAL ENVIRONMENT:
The socio -cultural environment is made up of forces like society's
fundamental values, attitudes, perceptions, and behaviour. These forces
aid in understa nding what kind of products clients prefer, what factors
influence their buying attitude or choice, which brand they prefer, and
when they acquire the products. The characteristics of the society in which
the organisation exists are explained by the socio -cultural environment.
An investigation of the socio -cultural environment aids in the
identification of dangers and possibilities in a company. Women are now
seen as contributing members of the family who work. When all members
of a family are employed, the family has less time to go shopping. This
has resulted in the growth of shopping malls and supermarkets, where
people can acquire everything they need under one roof and save time.
for example, People’s Lifestyles are always changing in urban cities
based on social mobility, increase in standard of living.
THE POLITICAL AND LEGAL ENVIRONMENT :
It is made up of legal bodies and government agencies that influence and
limit organisations and individuals. Every company should be conscious
of the fact that ma rketing activities should not jeopardise a country's
political and legal climate. The political and legal environment of a
country has a significant impact on its economic environment.
3.2.2. THEORIES OF ENVIRONMENT SCANNING
A. PESTLEANALYSIS
A PESTLE anal ysis is a framework or method for analysing and
monitoring the external environment aspects that affect a company. The
outcome is used to identify threats and vulnerabilities, as well as strengths
and opportunities, all of which can be examined or employed in a SWOT
analysis.
PESTLE is an acronym for the several factors that are used to assess the
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91 T – Technological , P – Political , E – Economic , S – Social ,
T – Technological
L – Legal E- Environmental
i. Political Environment
All of this has to do with how and to what extent the government
intervenes in the economy. Government policy, political stability or
instability in foreign markets, foreign trade policy, tax policy, labour
legislation, environmental l aw, trade restrictions, and so on are all
examples of this. Political issues clearly have an impact on organisations
and how they do business, as evidenced by the list above. Organizations
must be able to modify their approach and policy in response to cur rent
and expected future legislation.
ii. Economic Environment
Economic variables have a big influence on how a company runs its
business and how profitable it is. Economic growth, interest rates,
exchange rates, inflation, consumer and business disposable income, and
so on are all factors. These elements are fur ther divided into
macroeconomic and microeconomic aspects. Macroeconomic
considerations are concerned with how demand is managed in a given
economy.
iii. Social environment
They are the areas that incorporate the population's shared beliefs and
attitudes, and are also known as socio -cultural aspects. Population
increase, age distribution, health consciousness, career preferences, and
other factors are among them. These variables are particularly int riguing
since they have a direct impact on how we see customers and what
motivates them.
iv. Technological Environment
We're all aware of how quickly the technological world changes and how
this affects how we conduct business. Technological elements influ ence
how we conduct business in a variety of ways, including new methods of
creating and delivering goods and services, as well as new ways of
interacting with target customers.
v. Environmental factors
These issues have just recently gained prominence in the last fifteen years
or so. They have become more important as a result of increasing scarcity
of raw materials, pollution targets, conducting business ethically and
sustainably, and government -set carbon footprint targets (this is a good
example of a fa ctor that can be classified as both political and
environmental). These are just a few of the problems that business leaders
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92 expecting that the things they buy be supplied ethically and, if feasible,
sustainably.
vi. Legal environment
Health and safety, equal opportunity, advertising standards, consumer
rights and regulations, product labelling, and product safety are all legal
considerations. It is obvious that in order to trade successf ully, businesses
must understand what is and is not lawful. When a company deals
internationally, this becomes a very difficult topic to master because each
country has its own set of rules and regulations.
Example:
PESTLE analysis of Ola Cabs will include :
Political and Legal factors includeRoad traffic management rules of
country, Drivers insurance and authenticity, Minimum wages act of
country etc.
Social Factors include user friendly rides, Quick pick up, Cordial
behaviour of drivers .
Economic factors include Affordable fares, Job opportunities and self
employements
Technological factors include Mobile apps and website interface, Usage of
social media for promotion of rent a car service.
B. VRIOANALYSIS
VRIO Analysis is a powerful analytical technique for assessing a
company's resources and, as a result, its competitive advantage. VRIO is
an acronym from the initials of the names of the evaluation
dimensions: Value , Rareness , Imitability , Organization .
The VRIO Analysis was developed by Jay B. Barney as a way of
evaluating the resources of an organization (company’s micro -
environment) which are as follows:
Financial resources
Human resources
Material resources
Non-material resources ( informatio n, knowledge )
VRIO is ideal for assessing the company's resources. Knowing your
resources will help you better grasp your competitive advantages and
disadvantages. The VRIO evaluat es the following questions (called
evaluation dimension) for each type of resource, both for your
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Value - How much does the resource cost, and how easy is it to get it (buy,
lease, rent, etc.)?
Rareness - What is the resource's rarity or scarcity?
Imitability - How hard is it to duplicate the resource?
Is the resource supported by any current arrangements, and can the
organisation use it properly?
A VRIO analysis can be used in conju nction with a PESTLE analysis
(which assesses the macro -environment). VRIO is used to examine the
situation within an organisation (enterprise) - its resources, their
competitive implications, and possibilities for improvement in a specific
area or a certa in resource. Such an evaluation is then employed, for
example, in the strategic management of development in various sectors,
or in making decisions about the benefits of an external or internal
process, as well as in securing service (e.g. outsourcing dec ision).
For example: Amazon E commerce business enjoys core competency as
brand name, distribution network, human resource management factors are
valuable, Rare, Inimitable, and organized.
C. PORTERS COMPETITIVE MODEL
Any company seeking to grow and profit in its current market, or
exploring diversification into a new industry, must carefully analyse its
prospects. Then, to attain its objectives while maintaining a defendable
market position, a competitive strategy to shape developing competition
forces mus t be devised.
Businesses make money by outperforming competitors in terms of
generating and delivering value to customers over time. True success
necessitates that the company:
1. Provides good value for money;
2. Maintains a competitive edge in deliveri ng that value; and
3. Runs smoothly
The short -term balance of supply and demand for a product, as well as the
long-term structure of an industry, will determine its profit potential.
Long -term profitability will be determined by the strength of five
funda mental competitive forces that influence the distribution of the firm's
added value.
Michael Porter, in his books Competitive Strategy (1980) and Competitive
Advantage (1985), provided the five -forces model of industry structure.
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Figure 3.1 The five -forces model Source: Adapted from M.E. Porter,
Competitive Strategy, The Free Press, 1980: # The Free Press/Macmillan
If marketers are to profitably utilise their competitive environment, they
must first comprehend it. They m ust determine what drives competition
and understand that the combined strength of these five elements will
determine the current and future level of market competitiveness. This will
decide the industry's profit potential, though each participating firm w ill
aim to position itself to gain the most competitive edge possible. This
technique, unlike market structure models, offers marketers with a
foundation for analysing the complexities of their unique industry
situation. Although the method is less rigorou s, it may be more useful in
determining the impact of structural and environmental change over time.
Inter -rivalry
Rivalry can range from non -existent (for example, a powerful monopoly
position protected by high entry hurdles) to a price war. Between
gentlemanly understandings (collusive oligopoly) and standard marketing -
based cut and thrust, which often involves advertising and promotion, new
product development, and customer service enhancements, are located
gentlemanly understandings (collusive oligopol y). Rivalry may either
succeed in extending the total market and profitability by attracting new
consumers or increasing the amount purchased, or it may fail to do so by
diminishing margins or raising marketing expenditures while merely
redistributing stat ic sales among the fighters.
Threat of substitutes
An industry is a collection of businesses that produce goods or services
that are almost identical. In actuality, substitutability is complicated, as a
plethora of very disparate offerings fights for a fin ite amount of
discretionary purchasing power that can only be spent once at any one
time. Package vacations compete with conservatories and new computer
systems in the transportation fleet upgrade. The threat could take many
different forms, such as new ma terials, alternative technology, or a new
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95 replaced by cassette tapes, which have been replaced by compact discs,
which are now threatened by digital mini discs and the Internet (despite
recent efforts by US record labels to file lawsuits against 'pirates' who
illegally download and share copyrighted music). Another example is e -
business, which provides electronic connectivity to a large number of
potential suppliers.
Relative price/perfor mance ratio of the substitute (e.g. glass v metal v
plastic containers).
Switching costs for customers to the substitute (e.g. switching from branch
to home banking).
Buyer willingness to search out substitutes.
The rule of thumb to apply here is the hig her the price and profitability,
the greater the incentive to search for and develop substitutes
Threat of new entrants
If major entry occurs, long -term profitability and market share will be
harmed. Increased supply capacity will put downward pressure on
margins, while increased competition for inputs will bid up costs. Any
prosperous industry is vulnerable to this threat, especially if its profits
have recently improved. The competitive process' characteristics ensure
that forces are set in action to fina lly return profitability to levels that are
no longer attractive to new entrants. However, as Porter noted, there are
circumstances that may cause this conclusion to be delayed or even
prevented, which are referred to as barriers to entry. Their capabiliti es will
differ depending on the industry. The threat of entry will be modest if
barriers are high (e.g. nuclear reprocessing), but the threat will be constant
if they are almost non -existent. The following are some of the factors to
think about:
i. Economi es of Scale: Scale economies are a type of economy that occurs
when a large number of people work together to Due to capital costs (e.g.,
a modern microprocessor plant costs $1 billion), research and
development expenditure (e.g., pharmaceuticals), or prom otional
spending, an entrant's minimum economic scale or break -even point will
be high (e.g. branding in detergents). Bulk discounts, spreading fixed
expenditures (such as advertising) over big sales volumes, and hiring
specialists are all examples of mark eting economies.
ii. Brand loyalty and product differentiation - For incumbent businesses,
promotional spending over time creates goodwill and consumer loyalty. A
proliferation of products could also fill the available product space. It
becomes difficult t o position a new entrant's brand, and significant
investment is necessary to build a fresh brand image.
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operating system, for example, the customer must evaluate retraining
expenses, equipment and knowledge redundancy, inconvenience, time
lags, as well as the dangers associated with adopting an untested product
and supplier connection. These expend itures must be countered by
potential advantages.
v. Access to distribution channels - Existing businesses may have a
monopoly on certain channels (e.g. longterm contracts).
vi. Absolute cost advantages — Established companies have more
experience and may own good locations, patents, or crucial talents.
Potential competitors must carefully consider this high -risk strategy,
especially in areas where start -up losses are large and reactions are
unpredictable. Existing businesses can strengthen entry barriers a nd lessen
competitiveness by merging, as GlaxoWellcome and SmithKlineBeecham
did in the pharmaceuticals industry for £107 billion. Because of the high
obstacles to entry, new entrants into concentrated markets are not as
common as you might imagine. Cross -entry by a well -funded business in a
nearby industry or one using similar techniques and distribution channels
is the most serious threat. Another option is for a foreign corporation to
buy an existing company and use it as a foundation for future market s hare
expansion.
Bargaining Power of Suppliers
The rate of profit in an industry will be squeezed where suppliers' relative
power is significant and their behaviour hostile. The capacity to establish
some commensurate control over supply, on the other hand, will
strengthen the hand of industry businesses. The following are the primary
factors that influence relative power:
 The number of suppliers and their proportional size.
 The ability to switch to competing suppliers and the associated costs.
 The value of insignificance — the lower the supply cost as a
percentage of overall cost, the greater the bargaining power.
 The threat of forward integration by suppliers, such as Kuwait's Q8
retail gasoline brand.
Bargaining power of Buyers
Buyer power has a tendency t o reduce profitability, and it is influenced by
two main factors:
1. Price responsiveness – This price elasticity of demand is determined by
factors such as (a) the product's importance as a percentage of the buyer's
total purchases; (b) the buyer's emphas is on product differentiation and
branding; and (c) the buyer's profitability, which may dull (or vice versa)
their price sensitivity.
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97 2. Buyer leverage – This is influenced by a number of factors, including:
(a) Buyer concentration and size (b) Purchase volume and importance to
the seller (c) Practicality and costs of switching to alternative suppliers for
the buyer (d) Market knowledge and information available to buyers (e)
Existence of substitutes and/or threat of backward vertical integration
Strategi c and marketing implications of Porters’ five Forces model
A five -force analysis is useful to the marketer as
1. A means of determining the attractiveness of an industry and its
ultimate profit potential
2. A framework for examining relationships in their micro -environment
3. An evaluation of the probable degree of rivalry, now and in the future
4. A justification for continuous monitoring of the micro -environment
5. The basis for formulating strategy.
As Kotler suggests ‘companies succeed as long as th ey have matched their
products or services to today’s marketing environment’.
Strategy is the match an organization makes between its own
resources/competences and the risks and opportunities created by its
external environment.
Competitive strategy is a search for sustainable advantage through a
favourable market positioning which achieves above average profitability
over time. Porter saw a choice of generic strategies between the following:
o Broad cost leadership – But with parity or proximity in prod uct features.
Such a strategy would emphasize efficient scale of operations and tight
control of costs and margins, for example Ryanair, the largest of Europe’s
50þbudget airlines.
o Broad differentiation – With proximity in cost terms. This creates a
product or service perceived as unique and desirable by customers in
terms of design (e.g. Gucci), brand image (e.g. Coca -Cola) and/or
customer service (e.g. Virgin Airlines). High marketing costs are offset by
insulation from rivalry and mitigation of buyer power, while high margins
cushion supplier power.
o Cost or differentiation focus – On a narrow segment that is least
vulnerable to competition. This strategy is vulnerable to imitation or
structural decline in demand. Broaderbased competitors may overwhe lm
the segment, for example in -store specialists within multiple grocers and
their pressure on W H Smith/Boots.

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98 D. CUSTOMER PERCEIVED VALUE
The set of benefits that customers expect from a product or service is
known as customer value. Customers purchas e things that they believe
provide the best value to them. They are maximizers of value. The
perceived visible and intangible benefits and costs to the customer are
reflected in the value. It can be thought of as a combination of three
factors: quality, se rvice, and price. The customer value trinity is what
Kotler refers to it as (QSP). Quality and services add value to a product,
whereas pricing detracts from it. A major marketing notion is a value.
Marketing can be defined as the process of identifying, c reating,
communicating, delivering, and tracking customer value.
MEANING
The importance of value in the marketing process cannot be overstated. It
is the customer’s perception of value that matters, not the company’s. As a
result, a company’s customer anal ysis is critical in determining the client’s
worth. Customers frequently estimate felt value rather than correctly and
objectively judging value and cost.
“Customer perceived value is a customer’s assessment of the difference
between all of a marketing off er’s benefits and expenses in comparison to
those of rival offers.” – Kotler, Philip
The bundle of concrete and intangible benefits that a consumer
considers/imagines in a product/offer is referred to as customer perceived
value.
For example, while buying a mobile gadget, the customer perceived values
will be its battery power, memory limit, appearance and styling, other
mobile features etc.
Components of Customer Values
There are two types of customer value components: tangible (quantifiable
values) and i ntangible (unquantifiable benefits) (non quantifiable and
psychological values).
A. Tangible Benefits The following are examples of tangible values:
1. Functional Values refer to the basic component of the product and its
capacity to meet a specific clien t requirement. To boost their functional
merits, marketers frequently employ variables such as reliability,
usability, durability, performance, resale value, and upkeep.
2 .Aesthetic/Sensory Values refers to the product’s artistic, visual aspect
that appea ls to the customer.
3. Convenience values pertain to the product’s easy availability, usability,
and application. Microsoft’s success was attributed to their Windows
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99 4. Economic values are those that ar e thought to benefit the client due to a
pricing advantage.Intangible Values
The following are examples of intangible values:
1. Social Values refer to the value of a product that reflects a product that
is socially desired and acceptable. Environmentall y friendly items are
frequently associated with social value.
2. Status Values refer to a product’s ability to meet the esteem and
prestige of its clients. The majority of products aimed at the luxury
market place a premium on the product’s status worth in order to
increase consumer value.
3. Sentiment Values refer to a product’s ability to elicit certain feelings,
emotions, or memories when used.
4. Belief Values are the values that the product expresses following the
beliefs and sentiments of the customer . Anchor toothpaste’s’vegetarian’
claim helps people believe in the brand.In the process of establishing
customers’ perceived value, both tangible value and intangible
perception are equally crucial.
5. Service Values refer to the perceived value of a serv ice’s promptness
and quality.
3.3. CUSTOMER VALUE
Customer value is the respect that something is held in; it is the
importance, worth, or utility of anything. Merit, worth, utility, practicality,
advantage, desirability, benefit, gain, profit, good, servi ce, help,
helpfulness, assistance, effectiveness, efficacy, avail, importance,
significance, point, sense are synonyms.
Customer Value refers to how much a customer thinks a product or service
is worth in comparison to other options. Worth refers to whethe r the
customer believes he or she received more benefits and services for the
money paid.
3.3.1. APPLYING CUSTOMER VALUE
Customers buy a product which they perceive or expect to havethe highest
customer value. Value reflects and includes the tangible and i ntangible
benefits in comparison to the cost of the product. Marketing involves
following events for applying customer values:
 Creation of value: It involves all product related strategies like product
mix, product design, packaging decisions, branding an d labeling,
product positioning etc.
 Capturing value: It involves basically pricing strategies, taking into
consideration pricing factors, pricing methods etc.
 Communicating value: It includes Advertising, promotion, publicity
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warehousing functions, inventory management and material handling
and customer order processing.
 Monitoring value: It includes Satisfaction surveys, Sugg estions
schemes and Customer focussed groups for a feedback mechanism.
3.3.2. CUSTOMER SATISFACTION
Consumer satisfaction is a metric that measures how well an
organization’s whole offering meets a set of customer requirements. It’s a
metric for how custom ers rate a company’s performance. – Alexander and
Hill
Customer satisfaction refers to a person’s feelings of happiness or
disappointment as a result of comparing a product’s perceived
performance to expectations. – Kotler, Philip
Customer expectations are influenced by: • previous purchases (product
and service performance) • experience • friends’ recommendations and
influence
• Information and promises from marketers and competitors
• Customer retention
In the words of Peter Drucker, “The objective and pu rpose of every firm
should be to serve the customer.” A delighted customer provides the
organisation with a number of advantages. The following are the details:
1) They are less price sensitive
2) Attitude toward goods purchases that is positive
3) Promote the comp any and its products to others in a positive light.
4) Improving your image
5) Increasing your profits
Customer satisfaction is a marketing aim as well as a goal for achieving
the goals. Customer satisfaction must be measured in order to be
effectively managed. If you can’t measure it, you can’t manage it, as the
saying goes. Customer satisfaction measurement aids in the provision of
trustworthy data, the monitoring of performance, and the facilitation of
successful decision -making.
Measuring Customers’ satisfac tion: Measuring customer satisfaction is
required for achieving goals and it provides reliable data and results in
choosing right strategies which are customer oriented. Following are the
ways of measuring it:
 Client satisfaction survey: Customer satisfac tion surveys are a good
way to track customer satisfaction. Customer satisfaction is measured
using a self -completion questionnaire based on a representative sample
at the point of sale or consumption.
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101  Internal benchmarking: Internal benchmarking can aid in the
appropriate interpretation of survey results. Internal benchmarking aids
in the discovery of accurate information on the company’s actual
performance. Survey findings mostly represent customer perceptions,
and internal benchmarking aids in the disco very of trustworthy
information on the company’s actual performance. It aids in
determining whether the low ratings are due to genuine issues or
misunderstandings.

 Mystery shopping: Mystery shopping is a technique used in the retail
industry to track con sumer satisfaction. A mystery shopper is a
researcher who dresses up as a regular consumer and purchases goods
and services. The main goal is to keep track of the staff’s behaviour and
friendliness, which has an impact on customer happiness, as well as to
report on the shopping experience when purchasing the company’s and
competitors' items.

 Complaints: Complaints are a good way to track client satisfaction.
They are a reflection of customer feedback. It serves as a warning sign
that consumer happiness is declining. It is critical to encourage
customers to communicate with the company about their performance,
whether positive or poor.
3.3.3 . CUSTOMER RELATIONSHIP MANAGEMENT
CRM is all about acquiring, developing, and keeping happy, loyal
consumers, as well as driving long -term growth and adding value to a
company's name. CRM enables businesses to better understand, build, and
nurture long -term brand relationships, as well as retain existing customers.
The most significant step a company can take toward CRM i s to build an
inter-disciplinary team to assess how it communicates with each client and
determine ways to deepen and expand the relationship.
Shorter sales cycles, integrated customer evaluations, improved contact,
response, customer knowledge, higher eff icacy, better customer
monitoring, enhanced customer satisfaction, and increased loyalty are just
a few of the benefits CRM provides.
3.3.4. DEFINITION
According to Philip Kotler and Gary Armstrong, 'CRM is concerned with
managing detailed information abou t individual customers and all
customer “touch points” to maximize customer loyalty.
In 1954 Peter Drucker's, The Practice of Management, he stated that “The
purpose of a business is to create and keep a customer” which is a great
definition of Customer Re lationship Management (CRM)
3.3.5. CONCEPT
The idea is simple. CRM is a framework that allows a firm to better
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102 dependable communication structures and procedures with customers and
strengthens customer connections.
The method assists the company's assimilation of data on customers, sales,
marketing efficiency, response, and market trends. Data is frequently
utilised to acquire insight into consumer behaviour and the value of
retaining those customers.
The entire operation is designed to cut expenses and increase profits by
maintaining client happiness.
The aspects of Customer Relationship Management (CRM) are as follows:
 Identifying and targeting new clients, maintaining marketing tacti cs,
and creating high -quality leads are all tasks that need to be
completed.
 Streamlining existing procedures and improving information
communicated by multiple corporate personnel (for example,
accepting orders using mobile devices) to improve telesales,
account, and revenue management.
 Enabling the development of personalised client relationships in
order to boost customer satisfaction.
 Providing employees with the resources and procedures they need to
get to know their customers, consider and identify th eir interests,
and build effective relationships between the company, its
consumers, and distribution partners.
Customer Relationship Management (CRM) goals include:
• To make the marketing and sales process easier.
• To make call centres more efficient.
• To improve the level of service provided to customers.
• To find new customers and increase revenue from existing ones.
• To boost the efficiency of cross -selling products
3.3.6. IMPORTANCE OF CRM
1) Facilitates discovery of new customers
CRM systems are us eful in identifying potential customers. They keep
track of the profiles of the existing clientele and can use them to determine
the people to target for maximum clientage returns. New customers are an
indication of future growth. However, a growing busine ss utilizing CRM
software should encounter a higher number of existing customers versus
new prospects each week. Growth is only essential if the existing
customers are maintained appropriately even with recruitment of new
prospects.
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103 2) Increases revenue:
CRM data ensures that marketing campaigns are coordinated effectively.
It's feasible to filter the data so that promotions don't get to people who
have already bought certain things.

Businesses can also utilise the information to create loyalty programmes
that help them retain more customers. No company appreciates offering a
similar product to a consumer who has recently purchased it. Customer
data is coordinated by a CRM system, which ensures that conflicts do not
arise.

3) Assists the sales team in closing d eals more quickly.
By permitting faster and more efficient replies to customer leads and
information, a CRM system aids in the closing of speedier deals. When
customers receive timely responses to their enquiries, they are more likely
to convert their inqu iries into sales. Organizations that have adopted a
CRM system successfully have seen a significant reduction in response
time.

4) Increases the effectiveness of product cross -selling and up -
selling.
Cross -selling is providing clients with complementary prod ucts based on
their previous purchases. Upselling, on the other hand, entails providing
premium products to customers in the same category. Cross -selling and
up-selling can be accomplished in minutes using a CRM system by cross -
checking accessible data. Ap art from allowing staff to make faster offers
to clients, the two types of selling assist staff in obtaining a better grasp of
the demands of their customers. They may always anticipate connected
purchases from their customer as time goes on.

5) Processes of sales and marketing are simplified.
A CRM system makes it easier to create more effective communication
channels. Websites and interactive voice response systems are examples of
technological integrations that can make sales people' and the
organization's jobs easier. As a result, firms that use CRM may give a
variety of services to their clients.

6) Customer loyalty is improved.
CRM software can help you measure customer loyalty at a lower cost. In
the vast majority of cases, devoted consumers become profe ssional
recommendations for the company and its services. As a result, the
company can use testimonials from satisfied consumers to market their
services to prospective customers. In many cases, testimonials are more
persuasive than giving theoretical fram eworks to prospective prospects.
With CRM, it might be challenging to elicit loyal customers and make
them feel valued for their unwavering support.

7) Creates a foundation for efficient internal communication.
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104 internet, which improves teamwork. Working independently with no
connections across corporate departments is preferable to this method. It
improves the profitability of the company because employees no longer
have to physically move around while looking for essential consumer data
from other departments.

8) Facilitates optimized marketing
CRM allows a company to better understand its consumers' requirements
and behaviours. This enables them to determine when the best time is to
sell their items to buyers. Sales reps can use the software to get ideas for
the most profitable customer groups. This type of data is useful for
identifying certain prospects who are likely to benef it the company.
Optimized marketing makes the most of a company's resources.
3.3.7. TECHNIQUES OF CRM
a. Customer Data management:
Every firm relies on customer data. Through an in -depth understanding of
customers, the firm's sales, service, and marketing te ams may target
specific customers with accurate customer information. It's crucial to
conduct a thorough and consistent study of client interaction points. Take,
for example, a retail store. Customers' data is collected by retailers through
an ever -increas ing number of technologies. Due to the large number of
customers and their continuously changing personal and transactional
information, managing customer data is tough for retailers. For data to
stay of high quality and useful to the business, it must be managed on a
regular basis.

Effective data management has a number of commercial advantages,
including increased sales due to a better understanding of client needs, by
removing duplication and unnecessary data collecting, business operations
have become more efficient, Increased compliance and data security as a
result of data standardisation and centralization. Effective customer data
management doesn’t require a massive master data management platform.
Customer Data Management (CDM) is a subset of Maste r Data
Management (MDM) that refers to the practice of synchronizing and
standardizing customer data. Effective CDM is not just about having
integrated, clean customer data, it’s about leveraging data to increase
revenue and profitability

1) Data Mining:
The process of uncovering genuine, new, potentially helpful, and
eventually understood patterns in data is called data mining. Organizations
are experiencing information overload as a result of the extensive usage of
databases and their tremendous expansion in size. For all businesses, the
difficulty of successfully utilising these large volumes of data is becoming
a big issue. Traditionally, we've used data to query a dependable database
repository through a well -defined application. While this kind of
engag ement is suitable for a wide range of applications, there are a
number of others that require exploratory data analysis. Data mining
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105 seeks out patterns and trends in data and infers r ules based on these
patterns. Data mining began when corporate data was first kept in
computers and technologies were developed to allow users to traverse
through the information.

2) Data Warehousing:
A data warehouse is a computer database programme that co llects,
combines, and saves data for an organisation in order to produce accurate
and timely information management and support for analysis techniques
such as data mining. It is a data repository for an organisation, where the
organization's informational assets are stored and maintained to support
various activities such as reporting, analysis, and decision -making, as well
as other activities such as support for organisational operational process
optimization.

An enterprise data warehouse is the only his torical record of almost all
transactions and significant operational events that occur during the life of
a company. This information is eventually saved and catalogued for
immediate and future use in a variety of ways, such as application
deployment.

3) Suggestions Schemes:
Marketers might create recommendation schemes to help improve a
product or service. For example, one store that implemented a "mistake
pointer" programme that rewarded consumers for pointing out product or
service errors not only improve d service but also increased customer
loyalty. Customers were overjoyed to find that the errors they had pointed
out were quickly corrected.

4) Special Gifts and offers on special occasions:
Some firms will give their frequent clients special presents on cer tain
occasions, such as a birthday cake or greeting. For example, the Quinn
supermarket chain (mentioned previously) keeps a database of regular
customers' birthdays. When a regular customer checks out and the
computer detects that it is his or her birthda y, a signal appears on the
display panel. The word gets out that a birthday cake with the customer's
name on it will be delivered to the customer's door after he or she leaves.

5) Premium Offers:
Some marketers may provide premium deals on occasion to entice
customers away from competitors. Premium deals include free additional
quantities of the same product. This is feasible, particularly in the case of
fast-moving consumer goods such as toiletries, food, and other similar
commodities. Premium deals, on the other hand, may not excite clients if
the majority of competitors follow suit at the same time.

6) One-to-One Marketing: One -to-one marketing is used by some
businesses. Customers are treated as partners by such companies,
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106 companies invent new items or improve existing service. If a customer
becomes involved with the company, he is more likely to stay with it.

7) Loyalty Programs: To keep customers, businesses can use a
number of loyalty programm es. Airlines, for example, may provide a
particular rate to frequent flyers. Customers that are loyal to a company
may receive gifts and other rewards. However, not all lucrative customers
must be loyal, and not all loyal customers must be profitable. As a result,
the company must be selective. To improve marketing effectiveness, a
company must determine which of its clients are worth keeping and which
are not; which consumers should be given special attention. In other
words, the company must identify the worth of its consumers and focus on
MVCs as a result.

8) After -Sale-Service: Nowadays, great after -sale-service aids in
gaining a competitive edge and maintaining excellent client relationships.
In terms of technology, the majority of items are now standardi sed. As a
result, providing effective after -sale support, particularly in the case of
durables, office equipment, and machinery, can make a significant
difference.

To provide outstanding after -sale support, a corporation must engage in
the following activ ities:

• Finding the right people to provide after -sales service.
• Providing after -sale-service workers with training to improve their skills.
• Providing timely and suitable incentives to motivate after -sale service.

9) Sales Force Automation:
Organizatio ns compete intensely for customers in today's global
marketplace. Technology is becoming increasingly vital in the acquisition,
servicing, and retention of clients. Sales -related technology is being used
by executives looking to improve sales processes and increase profits
within the broader landscape of strategic information management. As a
result, in order to satisfy corporate growth targets, there is an increasing
focus on sales success measures. For many sales firms, sales force
automation (SFA) tools have become the backbone. SFA encompasses a
wide range of sales and information technology -related tasks. "Sales force
automation entails transforming manual sales activities to electronic
processes via the use of various combinations of hardware and softw are
applications," according to the most generally accepted definition.
3.4. CUSTOMER LOYALTY
In today's competitive market, the king of the market is the customer, and
in order to keep him, the whole supplier's value package must better match
the client's requirements than anything given by competitors.

Getting a new customer is expensive while maintaining an existing
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107 businesses, resulting in the introduction of loyalty programmes. Bonus
points, prizes, and other incentives may be offered as part of loyalty
programmes. Among the techniques to improve loyalty are:

1. Provide a product guarantee
2. attainable goals
3. pay attention to client issues and respond quickly
4. Continually develo p new goods
5. Establish a positive relationship with your customers. Relationship
marketing is the key to retaining customers. Customer retention will be
increased if customer happiness is maximised.

3.4.1. DEFINITION
Customer loyalty is described as t he proclivity for customers to stick with
one firm over competing offers.

3.4.2. IMPORTANCE
Attracting new clients is projected to cost five times as much as keeping
existing customers pleased.

1. Profit: The primary motivation for running business is to make money.
Customers are willing to spend more for a product that meets their needs.
A devoted consumer is more likely to make repeat purchases, suggest the
product or service to others, and has lower price sensitivity. It is critical to
understand and e xecute well in areas that are most important to customers.

2. Higher prices: Satisfied and loyal clients are generally willing to pay a
higher price for a service or product they trust, rather than risking non -
performance or product deterioration by makin g tiny savings.

3. Lower advertising costs: Satisfied and loyal consumers are the most
cost-effective. They can spread word of mouth which is in one sense is
publicity without charges.

4. Reduces customer complaints : Because loyal customers are often
satisfied, there are less complaints. Customer happiness increases when
customer complaints decrease, resulting in increased customer loyalty.

5. Less exposed to rival moves : Satisfied and loyal customers are less
likely to notice any competition moves. They are confident in their current
products and services, which they believe will suit their long -term needs.

6. Improves the firm's reputation: Loyal consumers help to improve the
brand image and, as a result, the firm's reputation. Harley Davidson is a
famous example of customer loyalty, with customers acting as
ambassadors for the company's products. Dissatisfied Customers not only
move their business elsewhere, but they are also likely to tell others about
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108 7. Increased market share: Loyal consumers help the company grow its
market share not just by promoting the product to others, but also by
expanding their own share of wallet. As a result, businesses should devote
more resources to retaining customer s, increasing customer loyalty, and
increasing their share of purchase.

8. Assists in the introduction of new items: For a corporation with a
reasonable base of devoted customers, introducing new products is less of
a burden because it is easily accepted by the customers and also cost
effective.

3.4.3. CONSUMERBEHAVIOUR
The study of how individual customers, groups, or organisations pick, buy,
use, and dispose of ideas, commodities, and services to meet their needs
and wants is known as consumer behaviour . It refers to the consumer's
actions in the marketplace and the motivations behind those actions.

Marketers expect to be able to decide which products are needed in the
marketplace, which are outmoded, and how best to offer the commodities
to consumers b y understanding what motivates people to acquire specific
goods and services.

Consumer behaviour refers to an individual's psychological, social, and
physical characteristics that influence his purchasing decisions and
purchasing style.

3.4.4. DEFINITION
Prof. Philip Kotler defines Consumer behaviour as “ the study of how
individuals, groups and organisation select, buy, use and dispose of
goods and services, ideas or experiences to satisfy their needs and
wants .”

Consumer buyer behaviour is considered to be an inseparable part of
marketing and Kotler and Keller (2011) state that consumer buying
behaviour is the study of the ways of buying and disposing of goods,
services, ideas or experiences by the individuals, groups and organizations
in order to satisf y their needs and wants.

3.4.5. FACTORS AFFECTING CONSUMER BEHAVIOUR
a) PERSONAL FACTORS -
(i) Age-A person's age has a significant impact on his purchasing
behaviour since he perceives demand for different products at
different ages.

(ii) Occupation -A person's occupation has a significant impact on his
purchasing decisions.

(iii) Life Style -A person's life style refers to how they live, spend their
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109 (iv) Income -A person's purchasing power is determined by his or her
income. As a result, every individual considers his or her economic
level while making purchasing decisions.

(v) Situation - • Physical Conditions - Physical conditions can sometimes
influence purchasing decisions. The weather, for example, influences
a person's d ecision to buy an umbrella or a shawl.

• Time: Time has a number of effects on purchasing behaviour. For
example, time may be required to learn about a product; a product
may be purchased on a working day or during a vacation; and
sufficient time may be r equired to acquire a product.

• Purpose —A person's purchasing behaviour may be influenced by the
purpose for which a thing is being purchased. The character of a
product for personal use, for example, may differ from that of a
presentation.

• Previous pu rchase history —When making a purchasing decision, a
buyer may think about his previous purchases.

b) SOCIAL FACTORS
(i) Family -A family's purchasing decisions are made by the members of
the family. In our country, the family's head of household may make
the purchasing decision alone or jointly with his wife.

(ii) Reference groups -A reference group is any group that has a direct or
indirect influence on a person's attitude, values, or behaviour. Every
person has multiple reference groups for various topics that influence
his purchasing behaviour in various ways.

(iii) Roles and Status -A consumer's buying behaviour is influenced by his
or her role and status. Every individual purchases a product in order to
fulfil a specific job, and while doing so, he cons iders his social status.

c) CULTURE
(i) Culture - Culture is a set of taught ideas, values, attitudes, practises,
habits, and patterns of behaviour that are shared by the people of a
society and passed down from generation to generation.

(ii)Sub -culture – Each culture is made up of smaller sub -cultures that offer
individuals with distinct identification and socialisation.

(iii)Social Class -In contemporary society, there are primarily three social
classes. There are three classes: upper, medium, and lower. The
socioeconomic class to which a person belongs influences their
purchasing habits.


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110 d) PSYCHOLOGICAL FACTORS
A variety of psychological factors influence customer purchasing
decisions.

(i) Motivation -It is a driving force that propels a person to a ct in order to
meet his or her requirements. In other words, motivation influences
people's purchasing decisions. The saying from Maslow's hierarchy
of needs theory can be mentioned in this connection. According to
this hypothesis, a person feels higher le vel needs after satisfied a
lower level need. That is, consumers make purchasing decisions
based on the hierarchy of requirements.

(ii) Perception -The ability to see, hear, or become aware of anything
through the senses is referred to as perception. At th e same time,
various people view the same object in different ways. Because of
these differences in perceptions, different people make various
purchasing judgments.

(iii) Learning -Consumers gain knowledge about various items through
commercials, salespeop le, acquaintances, and family. As a result,
this knowledge influences their purchasing decisions in a variety of
ways.

(iv) Attitudes -Attitudes have a substantial impact on consumer behaviour.
A consumer with a strong unfavourable attitude about a product , for
example, not only avoids purchasing the goods but also encourages
his friends and relatives to do so.

(v) Personality -Personality has an impact on customer purchasing
behaviour since each consumer chooses products based on his or her
own personality .

(vi) Self-concept -Self-concept refers to a person's thoughts or feelings
about himself or herself. It also has an impact on consumer
purchasing decisions.

(vii) Risk and uncertainty -Risk and uncertainty is one of the most
important psychological elemen ts influencing consumer buying
behaviour, since many customers evaluate risk and uncertainty while
making purchasing decisions.

3.4.6. STAGES IN CONSUMER BUYING DECISION BEHAVIOUR
1. Need Arousal or Problem Recognition -The source of the problem is
people' s needs, and unmet demands produce tension and discomfort in the
thoughts of customers. Consumers can obtain and consume goods and
services to meet their requirements. For example, need for food arises
when hunger strikes.

2. Information/ Knowledge Search - When a consumer's demand is great
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111 needs, but in many circumstances, the aroused consumer will go in search
of information.

(a) Improved attention -In this scenario, the consumer be comes more
responsive to information about the product that may meet his
demands. The hunt for information is passive in this case.

(b) Active information search —In this case, the consumer is the
information seeker, and he gathers information from a varie ty of
sources. For example, information search is little in case of buying
pizza than buying a computer.

3. Alternatives Evaluation - At this stage, the consumer will compare and
contrast different products or brands based on alternative product
qualities that have the ability to provide the benefits the customer is
looking for.

4. Purchasing choice - After assessing several items or brands based on
various product qualities, the consumer makes a purchase decision
based on his or her preferred brand. The ch oice of brand is dependent
on various factors such as quality, price etc.

5. Post-purchasebehaviour: The consumer may be satisfied or
unsatisfied with the product after acquiring it. The buyer's happiness or
dissatisfaction is determined by the buyer's ex pectations and the
product's perceived performance.


Source: Philip KotlerThe five stage model in consumer behaviour’
Kotler (2012)
3.5. SUMMARY

The marketing environment encompasses all internal and external aspects
that influence the organization's m arketing decisions, either directly or
indirectly. An organization's internal factors are under its control; but,
external factors are outside its control.

The micro environment is the environment that is intimately related to the
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112 A macro environment involves a set of environmental factors that is
beyond the control of an organization.
A PESTLE analysis is a framework or method for analysing and
monitoring the external environment aspects that affect a com pany. VRIO
is an acronym from the initials of the names of the evaluation
dimensions: Value , Rareness , Imitability , Organization .
The set of benefits that customers expect from a product or service is
known as customer value. Customers purchase things that they believe
provide the best value to them. They are maximizers of value. The
perceived visible and intangible benefits and costs to the customer are
reflected in the value.

Consumer satisfaction is a metric that measures how well an
organization’s whole offering meets a set of customer requirements.

CRM is a framework that allows a firm to better understand the
expectations and behaviours of its customers. It provides dependable
communication structures and procedures with customers and strengthens
customer connections.In today's competitive market, the king of the
market is the customer, and in order to keep him, the whole supplier's
value package must better match the client's requirements than anything
given by competitors.

Getting a new customer is expensive while maintaining an existing
customer is cost -effective. This reality has been recognised by more
businesses, resulting in the introduction of loyalty programmes.
Consumer behaviour refers to an individual's psychological, social, and
physical c haracteristics that influence his purchasing decisions and
purchasing style so marketers study the process of consumer buying
behaviour in order to know consumers’ needs and wants at various stages.

3.6. EXERCISE

FILL IN THE BLANKS
1. The ______environment is made up of forces like society's
fundamental values, attitudes, perceptions, and behaviour. ( a.
Technological b. Legal c. Socio Cultural)

2. ____ component of VRIO analysis depicts the duplicability of
resources. ( a. Rare b. Imitability c.Value)

3. ______ takes place when product performance matches customer
expectations. (a. CuatomerLoyalty b. Customer value c. Customer
satisfaction)

4. Providing rate concession to frequent or regular buyers is example
of _____ technique of CRM. ( a. Da ta Management c. Cross
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and Building Customer Value
113 5. At ____ stage, the consumer will compare and contrast different
products or brands based on product qualities ( a. Need arousal
b. Evaluation of Alternatives c. Purchase decision)
Answers: (1 - c, 2 - b, 3 -c, 4 -c, 5 -b)

MATCH THE COLUMNS

A B
1. Micro Environment a. Michael Porter
2. PESTLE analysis b. Suppliers
3. Five forces model c. Tangible benefits
4. Customer value d. Data mining
5. CRM e. External factors

( i-b, ii -e, iii -a, iv-c, v -d)

TRUE OR FALSE
A. R stands for rareness in VRIO analysis.
B. Minimum wages act is example of Political environment
C. Age and Occupation is the Personal factor influencing consumer
behaviour. .
D. CRM aims at decreasing sales.
E. High bargaining power may be due to more buyers.
True: A, C
False: B, D, E
SHORTS NOTES
i) PESTLE analysis
ii) Michael porter’s Forces Competency model
iii) Techniques of CRM
iv) Customer Perceived value
v) Factors influencing consumer behaviour

ANSWER IN BRIEF
 Explain the Elements of Macro Environment .
 Discuss VRIO analysis
 Write a note on Customer satisfaction.
 Discuss the importance of CRM
 What are the stages of Consumer buying behavior process with
relevant examples?




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3.7. REFERENCES
 Baker, M. J. (2014). Marketing Strategy and Mana gement. United
Kingdom: Palgrave Macmillan.
 Keller, K (1998) Strategic Brand Management, Building, measuring
and managing brand equity, Kogan Page, London
 Kotler, P, Armstrong, G, Saunders, J and Wong, V, (2001), Principles
of Marketing: Third European Edi tion, Prentice Hall, Harlow
 Kotler, P. and Armstrong, G. (1997) Marketing An Introduction.
Fourth Edition. New Jersey. Prentince Hall International
 Kotler, P., Armstrong, G., Saunders, J. and Wong, V. (1999) Principles
of Marketing, 2nd Edition, New Jersey : Prentice Hall
 Oldroyd, M. (2006). CIM Coursebook 06/07 Marketing Environment
(1st ed.). Routledge. https://doi.org/10.4324/9780080501253
 Worthington, I., Britton, C., Thompson, E. (2018). The Business
Environment PDF EBook. United Kingdom: Pearson Educat ion.
 Ziethmal, & Bitner, (2003) Services Marketing: integrating customer
focus across the firm, McGraw Hill, chapters 1,3 and 6



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115 Module IV
Recent Trends in Marketing Strategies

4
EMERGING STRATEGIES

Unit Structure
4.0 Objectives
4.1 Introduction
4.2 Emerging Strategies
4.3 Summary
4.4 Exercise

4.0 OBJECTIVES

After studying this unit, you will be able to
 Explain the Marketing Strategy significance
 Outline the 21st Century Marketing Strategy Trends
 Compare the Global Marketing Strategies
 Comprehend the role of Marketing Strategies in exploring the
Emerging Markets

4.1 INTRODUCTION

Marketing is a discipline that involves a comp any's attempts to recruit
customers and maintain relationships with them. Thank you notes, golfing
with prospective clients, swiftly returning phone calls and emails, and
meeting with clients for coffee or a meal are all examples of networking
with future or shifts in consumer.

At its most fundamental level, marketing tries to match a company's
products and services with people who want to use them. Product -to-
client matching ensures profitability. Marketing is a corporate function
that encompasses creatin g, supplying, and conveying value to customers,
as well as managing customer relationships, all of which benefit the
company and its stakeholders .

Marketing is also the science of identifying target markets through market
analysis and segmentation, as wel l as a thorough understanding of
purchasing behaviour, with the goal of providing the best customer value.
Marketing, on the other hand, is only effective when an organization's
mission, vision, tasks, and ability to harness technology are all in sync and
complement one another, as well as the business as a whole.
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116 Although marketing is often regarded as a measure of a company's
success, this is a question of perception.

4.1.1 MARKETING STRA TEGY
The term 'strategy' has made its way into the management are a from the
military services, where it refers to the application of forces against an
opponent in order to win a war. The word "strategy" is derived from Greek
words “strategos,” which means “general”.

"The art of so moving or positioning the instrument o f warfare as to
impose onto the opponent, the place, time, and conditions for combat by
oneself," according to the dictionary definition of strategy.

In management, the term "strategy" is used in a broader sense. In simple
terms, strategy is determining w hat the organisation wants to become in
the long run and putting in place a plan to get there.

It is both an art and science to develop a strategy. Strategy is an art
because it takes creativity, critical thinking, and the ability to envision the
future, as well as the ability to motivate and link individuals who will
implement the strategy. Strategy is a science because it necessitates
analytical abilities, the ability to organise and analyse data, and the ability
to make well -informed decisions. An organ isation is useless and
vulnerable to changes in the business environment without a plan. A
company's strategy serves as a form of road map for its continuing
development. The company's strategy gives it a sense of direction and tells
it what it needs to do to survive, expand, and profit.

4.1.2 CONCEPT AND SIGNIFICANCE OF MARKETING
STRATEGY:
Marketing strategy means the game plan’ that the market will use in
attaining the objectives of the business.

“Basically, a company’s overall marketing strategy is it s competitive
posture in the market place. Formulating an overall marketing strategy
requires integration of all dimensions of the marketing effort”. — Cundiff,
Still and Govoni

“Marketing strategy is the basic approach that the business unit will use to
attain its goals and which comprises of elaborate decisions (strategies) on
largest markets, market positioning and mix and marketing expenditure
allocation. Moreover, the marketer should take care of the other two
strategic aspects, viz., expected environ ment and competitive conditions
while determining the marketing strategy”. — Prof. Philip Kotler

In its most basic form, marketing strategy is a plan to sell services or
products in such a way that any firm can achieve long -term profitable
growth. It func tions as a road map for any brand, indicating where it
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117 used by successful firms to provide their services to clients and make a
lasting impression.

As a result, "Marketing Strategy" is defined as "an organization's strategy
that unifies all of its marketing objectives into a single complete plan."

It provides a roadmap for reaching these marketing goals. Every
marketing plan starts with a marketing strategy. A effective marketing
plan involves in -depth market research and a focus on the optimal product
mix to reach maximum profit potential and maintain the business. A
marketing strategy helps a business focus its limited resources on the most
promising opportunities in order to meet i ts objectives.

How to build marketing strategy?
To develop a marketing strategy that benefits your company, you should
concentrate on the following factors:

1. Choosing the appropriate target market: Choosing the target market
refers to the possible purc hasers of a company's specialised products or
services. Not all market niches are advantageous to a company. While
some market niches can ensure quick profits, others may have a lot of
potential yet have significant entry hurdles. As a result, the company must
make a thorough selection. To do so, the company must conduct in -depth
marketing research to discover the buyer's characteristics and specific
needs, as well as those of the target market.

2. Gathering the marketing mix: The marketing mix refers to h ow the
company wants to offer its goods or services. The organisation should do
this by combining the four P's of marketing (described below) in the
appropriate order.
The Marketing Mix, often known as "The Four P's," is a set of four
components that make up a marketing strategy.












1.Product – Products and their packaging must maintain a brand's
position. To communicate product profits, design and functionality must
be carefully examined and developed.

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118 2. Price - Organizations providing a premium product might set prices that
are higher than the average. To gain a competitive advantage, brands that
wish to be known as pricing leaders should provide lower costs.

3. Location - The distribution channel chosen must be consistent with the
brand's posit ioning. To improve product value, a high -end product must be
coupled to a high -end distribution channel.

4. Promotion – The brand's USP is included into all of the messaging in
the promotion strategy. All of the brand's marketing objectives should be
inclu ded, and specific measures should be developed to counteract them.
This includes things like key communication point recall, brand
awareness, preference shifts, and more.

Significance of Marketing Strategy

1. Helps Win over the Market
A marketing strate gy can assist a business in gaining a competitive
advantage in the marketplace. Using the right marketing strategy,
businesses can get an advantage over competitors and even newbies
wanting to build a name for them in the industry.

With a well -defined mar keting strategy, businesses may promote their
brand's USPs, as well as the features and benefits of their products and
services. Businesses can demonstrate how their brand and offerings are
superior to those of their competitors by employing inventive, int elligent,
and well -thought -out approaches. By implementing a comprehensive and
consistent marketing plan, brands may establish a distinct identity in an
ever-changing, competitive industry.

2. Raise Public Awareness
People remember what they find interest ing and unique, so having a well -
curated market strategy that interacts directly with the consumer will help
them remember your brand. Start by emphasising and advertising your
USPs, qualities, and legacy, then move on to your products and services.

3. Ex pand Your Customer Base Each and every time
What is your major goal as a business? To enhance your sales by
attracting more clients. True! To do this, each company's marketing team
must comprehend the significance of marketing strategy.

Brands may learn a bout their customers' interests, requirements, and other
demographics such as income, location, and age by developing the correct
marketing plan. All of this data aids them in improving their services and
attracting new clients through regular advertising efforts.

4. Make a marketing budget plan.
As you may be aware, every department in any organisation is given a
budget for a specified period of time or for all of the tasks required in
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119 strategy, you can ensure that the budgeted funds aren't wasted on
ineffective promotional efforts that yield little or low returns. It also assists
you in ensuring that you are utilising your money efficiently and
effectively in order to achieve your marketing as well as company goals
and objectives.

5. Ensure that everyone is on the same page.
This is an important part of any marketing strategy. It means that a
company's marketing plan should be understood by all departments. Your
social media depart ment will be responsible for daily social media
postings, while your Facebook paid advertisements team will be in charge
of preparing the weekly campaign.

An organization's ability to successfully utilise the skills of its employees
and even stakeholders is enhanced when everyone is on the same page. It
also saves your time and money by preventing you from wasting time and
money on inefficiently performing daily duties (duplication).

When everyone in your company is on the same page, everything works
together, including your traditional and digital marketing campaigns.

In a nutshell, a marketing plan is crucial because:
 It gives a company a competitive advantage.
 It assists in the development of products and services with the greatest
profit potential.
 Assists in the development of an organisational plan to meet client
needs.
 It aids in identifying the areas impacted by a brand's expansion.
 It aids in determining the appropriate price for an organization's
services.
 Assists you in making the most of your resources in order to deliver a
sales message to your target market.
 It aids in the Aids planning of the advertising budget.
 It helps in the development of a method to determine the scope of the
marketing plan.

4.1.3 TYPES OF MARKET ING STRATEGY
There are four main categories of Marketing Strategy,
Horizontal Integration Marketing Strategy
Aggressiveness Strategies
Market Dominance Based Marketing Strategy
Innovation Based Marketing Strategy

1. Horizontal Integration
The ownership and control paradigm und erpins horizontal integration.
This technique is used by a company that tries to sell a single type of
product in multiple markets. A number of smaller subsidiary companies
are being formed for this purpose. Each subsidiary company sells the
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120 Horizontal integration is the term used to describe the entire process. In
horizontal integration, the company has a number of plants in several
places that create identical products. Horizontal market ing is carried out
in the same way as horizontal production is carried out. The following are
examples of horizontal integration.

Vertical Integration
Vertical integration is based on a theory that describes how people own
and control things. For all the hierarchically combined organisations, there
is a single common owner. Each member of the hierarchy produces
different types of products in order to meet a common demand. Vertical
integration is further subdivided into the three types listed below.

Backwa rd Vertical Integration, in which those subsidiaries are combined
with the organization that provides inputs to the organization for the
manufacturing of its product.

Forward Vertical Integration, in which those subsidiaries are linked with
the organizati on that markets, distributes or even uses the product of the
organization by them.

Balanced Vertical Integration, in which those subsidiaries are combined
with the organization that both distribute the product as well as provide the
inputs.

2. Aggressive ness Strategies
The degree of aggressiveness serves as the foundation for categorising the
company's tactics. Product innovation, risk propensity, marketing
assertiveness, speed of decision making, financial leverage, and
organisational metrics of aggressi veness are used to grade aggressiveness
methods. Normally, aggression strategies are divided into the following
categories.

Prospector Strategy
Prospector Method is the most aggressive strategy for new markets. It
involves expanding active programmes to c reate new prospects.
Additional market share can be gained by aggressively challenging
competitors and producing new items. With analysis or study, a firm that
uses an aggressive prospector strategy responds quickly to any market
change. New markets and pr oducts account for a significant amount of the
company's revenue. The likelihood of market rejection and product failure
is relatively significant. Sales promotion, advertising, and personal selling
are the primary sources of revenue.

Defender Strategy
The organisation does not seek the market actively with this strategy. The
organisation strives for and maintains a safe and reasonably steady market
in defence strategy. The following tactics are used by the organisation to
maintain a stable market.
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121
 Keep prices low
 Lowering the advertising & other promotional costs
 Engage in vertical integration
 Offer better quality products
 Offer a limited range of products

Analyser Strategy
The analyst is sandwiched between the defence and the prospector. They
make fewe r mistakes and take less risks than prospectors. However, the
analyser’s commitment to stability is weaker than the defender's. By
repositioning themselves as a second or third entity in the industry, many
organisations are falling into the analyser catego ry. As a result, these
businesses expand their operations beyond their established core
competencies. By analyser, current markets are typically extended rather
than completely new markets. Furthermore, firms in this category
maintain a well -balanced produ ct selection.

Reactor Strategy
For reactors, there is no proactive plan. The reactors react as the event
unfolds. Most of time macro environmental pressures drive reactors to
respond in some way. Reactor methods are lacking in direction and focus.
Because of this, they are less effective than the others.

3. Market Dominance Strategies
The following criteria are used to categorise market dominance tactics.

Market Leader
The company with the largest market share is the market leader. A high
number of distr ibution channels with merchants and a large market share
are among the advantages of the market leader. New product and business
model innovations are frequently initiated by the market leader. Although
the market leader has some influence on price and out put. When it comes
to designing this marketing strategy, the market leader is the most adaptive
in the industry. Some of the options available to the market leader are as
follows.

 New uses and users of the product for expansion of market
 Increased usage o f product on every occasion for expansion of market
 New ideas of product development for securing an existing market
share
 Improving customer service for securing an existing market share
 Improvement in effectiveness of distribution for securing an existin g
market share
 Cost reduction for securing an existing market share
 Targeting competitors for expanding market share
 Keep safety from the regulations of the government in the process of
expansion of market share.
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Market Challenger
The market follower is a company that has a strong position in the sector
and uses an aggressive strategy to gain market share. The market
challenger primarily targets the industry's market leader, although it can
also attack smaller businesses. The market challenger, on the ot her hand,
adheres to the following key concepts.

The strength of the targeting competitor is assessed by market challengers.
Single competitor is targeted by the organization at one time.

 The weakness of the target is ascertained so that the weak point c an be
attached.
 The attack is kept in front and narrower.
 Also the attachment is launched quickly & soon after which
consolidation is made.
 Moreover, the market challenger has the following options.
 Price cutting or price discounts
 Introduction of new prod ucts
 Improve services
 Line extensions
 Changing of distribution channels
 Reduction in the quality of product
 Improvement in the quality of product.
 Boosting the promotional activity

Market Follower
 When the organization tries to maintain its existing stro ng position in
the industry is called the market follower. Some of the advantages
associated with the marketing strategies of market followers are as
follows:
 Avoiding expensive Research and Development failures
 Avoiding risk of bad business model
 Establis hing best practices in advance
 The capitalization of the promotional activities of the market leader
 Reduction in the risk of being attacked by the competitors
 Saving money by avoiding war with the market leader

Market Niche
Market niche refers to enterp rises of a smaller scale that focus on one or
more market areas. The market niche employs the concentrating strategy,
which involves tailoring the marketing mix to the specific needs of only
one or two sectors of the market. In this approach, the market ni che
outperforms its larger competitors in terms of satisfying its target
customers. As a result, the market niche's most distinguishing trait is its
modest size, which protects it from competitor attacks while still allowing
it to become lucrative. As a re sult, the market niche gains a competitive
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123 of the features of the market niche: High margins of profits are obtained
through serving as a value -added organization

 Specific market se gment is focused by the market niche
 Premium pricing strategy is used by market niche by marketing high
end products
 The operating expenses are reduced by less spending on advertising,
R&D and personal selling

4. Innovation Strategies
Innovation strategie s are marketing strategies that are based on new
product development as well as an innovative company strategy. The
company that implements this set of strategies will be at the forefront of
innovation and technology. The types of organisations that use th ese
tactics are listed below.

Pioneers
 Close Followers
 Late Followers
 Aside from the marketing tactics described above, there are a few
additional essential strategies that firms use successfully.

Cost Leadership Strategy
In this form of marketing strate gy, efficiency is stressed in a cost
leadership plan in which the firm manufactures a huge volume of standard
items. As a result, the primary goal of this strategy is to take advantage of
economies of scale as well as the implications of the experience cur ve.
This method, on the other hand, is best suited to a company that provides a
simple product at a low cost. Further, for a large number of consumers, in
increasing quantity. As a result, by producing large quantities of product,
the cost is decreased. As a result, this strategy necessitates tight access to
inputs such as raw materials and labour, as well as a substantial market
share. Some of the advantages of this effective method are listed below.
Possession of engineering skills

The manufacturing ease ment is focused during the designing of the
product
 Labour is closely supervised
 Cost is tightly controlled
 The quantitative targets provide the basis for incentives
 Inexpensive capital is accessed.

Differentiation Strategy
The organisation produces the unique product in this form of marketing
strategy. Furthermore, the company provides unique features or benefits
with its products that might assist provide higher value to clients. When
customers examine the unrivalled & unequal attributes of the
differen tiated product, brand loyalty is boosted by a drop in price elasticity
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124 As a result of the increased expenses, the premium pricing strategy is
effective for this category of items. As a result, the following are the
prerequisites for a successful implementation of this marketing approach.

 The research & development Skills required to be stronger
 Stronger skills of product engineering
 Stronger skills of creativity and marketing
 The di stribution channels should be effectively co -operated
 The subjective measures should provide the basis for incentives
 Creative & highly skilled people should be attracted
 The characteristics of the differentiating products can be
communicated effectively
 There should be strong emphasis on continuous improvement &
innovation.

4.2 EMERGING STRATEGIES

Marketing strategy has played very important role in the growth and
development of the product and services. Marketing manager has assigned
a team of experts who look after the development of best and effective
marketing strategy. With help of the selected marketing strategy marketer
can be effectively positioned their prospective product or services to the
target customers and able to achieve desired objective s.

4.2.1 21st Century Marketing Strategies

SOCIAL NETWORKS AND VIRAL MARKETING
The purpose of social media marketing is to give people with useful
content that they will want to share throughout their social networks,
increasing visibility and traffic. Shared content, videos, and photos on
social media can aid SEO by enhancing relevancy in search results on
social media platforms such as Facebook, Twitter, YouTube, and
Instagram, as well as search engines such as Google and Yahoo.

PAID MEDIA ADVERTISI NG
Paid media is a strategy of increasing website traffic through the purchase
of adverts. One of the most prevalent methods is to use pay -per-click
(PPC) links. When people search for terms related to a company's product
or service, the firm buys or "sponso rs" a link that appears as an ad in
search engine results (this process is commonly known as search engine
marketing, or SEM). For each visitor who clicks on the ad, the company
pays a small fee to the search engine (or another third -party host site) — a
literal "pay per click."

INTERNET MARKETING
Internet marketing, often known as online marketing, involves promoting
and driving e -commerce sales through the use of the internet and email.
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125 advertise products and services. Traditional advertising media such as
radio, television, and print are commonly coupled with these initiatives.
Online evaluations and opinions have a lot to offer as well. Individuals
who have positive things to say about y our product or service have
nothing to gain from spreading the word, so word -of-mouth advertising is
free, natural, and incredibly powerful. A referral from a friend, co -worker,
or family member has built -in credibility, and it can produce dozens of
prospe cts eager to have a positive experience with your business.

EMAIL MARKETING
For nurturing and converting customers, email marketing is a strong tool.
It is not, however, a game of chance whether or not your communication
gets captured in spam filters. Ema il marketing, on the other hand, is a
computer -assisted technique for influencing individual prospects and
consumers' purchasing decisions. Because open rates and click -through
rates are used to gauge the effectiveness of email marketing, strategy is
cruci al, especially when it's part of a larger internet marketing effort.

DIRECT SELLING
Direct selling is exactly what it sounds like: it markets and sells products
to individuals directly. In this strategy, sales representatives build face -to-
face relationsh ips with consumers by demonstrating and selling products
outside of retail settings, usually at the customer's home. (e.g., Amway,
Avon, Herbalife, and Mary Kay).

POINT -OF-PURCHASE MARKETING ( POP)
POP marketing (Point -of-Purchase Marketing) sells to a cap tive audience
of shoppers who are already in the store and ready to buy. Product
displays, on -package coupons, shelf talkers touting product benefits, and
other attention -getting "sizzle" can impact shelf purchases by making an
offer simply too tempting — and too obvious — to pass up.

COBRANDING, AFFINITY , AND CAUSE MARKETIN G
A marketing technique in which two or more organisations collaborate to
advertise and sell a single product or service is known as co -branding.
When companies lend their collective re putation to increase perceptions of
the product or service's worth, consumers are more likely to purchase and
willing to pay more at retail. Co -branding, on the other hand, may deter
private label manufacturers from duplicating the product or service.
Affinity marketing, on the other hand, is a collaboration between a
corporation (supply) and an organisation that brings together people who
share like interests, such as a coffee shop that sells goods from a local
bakery.

There are plenty of co -branding alli ances out there, but a few recent
instances stand out, like the daring GoPro and Red Bull, the elegant BMW
and Louis Vuitton, and the fashion -forward Alexander Wang and H&M.


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126 CONVERSATIONAL MARKE TING
Conversational marketing is just that: a conversation. Using a Chabot or
live chat to communicate with prospects and customers in real time puts
the correct information in front of them at the right time, allowing them to
self-serve and get questions answered quickly. Personalised, relevant
engagement improve s the user experience significantly. B2C companies
benefit from conversational marketing because it scales customer service
and decreases the amount of time customers spend in the sales funnel.
Conversions happen more quickly because relationships are buil t more
quickly.

Because it is conversational, conversational marketing is effective:
 Provides a true, personal consumer experience by removing
impersonal lead collection levels.
 Encourages clear communication - because the request is
contextualised, cust omers may express their needs more clearly, and
businesses can better understand and assist.
 Bots can also recommend new materials or items to clients based on
their previous behaviour, which helps to improve relationships.

EARNED MEDIA/PR
Earned media (s ometimes called "free media") is publicity that is earned
without the use of paid advertising. Earned media can take many forms —
a social media testimonial, word -of-mouth, a television or radio mention, a
newspaper storey or editorial — but one thing is c onstant: it is unpaid and
can only be acquired organically. Traditional advertising cannot be
purchased or possessed in the same manner.

STORYTELLING
To generate emotional responses from customers, brand storytelling
leverages a well -known communication s tructure. Rather than simply
repeating statistics and figures, storytelling allows you to tell a captivating
storey about what your company is, what it does, how you solve problems,
what you value, and how you interact with and contribute to your
community and the general public.

4.2.2 Introduction to Global Marketing Strategies

'Think globally, act locally,' is the favourite Marketing strategy phrase and
it indicates a common technique that is becoming increasingly important
in a worldwide environment wh ere there are no barriers to the flow of
commodities or the provision of global marketing services? It is now clear
that corporations can no longer protect themselves from global marketing
competition by sticking to their home markets or a few select areas .

McDonald's, Coca -Cola, Domino's Pizza, Red Bull energy drink, KFC,
Nike, and StarBucks are just a few of the global brands that have done it
successfully. Because the four P's – Product, Price, Place, and Promotion –
are relevant in every market, global marketing follows the same process as
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127 It is not always possible or desirable to implement a global marketing plan
that completely globalises all marketing activities (differentiated
globalization). Global marketing strategies were thought to be of one type
alone in the early stages of development, giving the same marketing
approach all over the world. Many more forms of global marketing tactics
emerged as marketers gathered more experience. Some of them were far
less difficult, exp osing only a small part of a marketing plan to
globalisation. A more usual way is for a corporation to localise
distribution and marketing communication while globalising its product
strategy (product lines, product designs, and brand names).

Integrated G lobal Marketing Strategy
Most parts of a marketing plan have been globalised when a corporation
adopts an integrated global marketing strategy. Not only the product, but
also the marketing strategy, price, and distribution, as well as strategic
components like segmentation and positioning, are all part of
globalisation. Companies that deal with truly worldwide consumers may
benefit from such an approach. It also implies that the way a given
industry operates is remarkably consistent across countries, allowi ng a
corporation to implement its strategy in a consistent manner. Coca -Cola is
one corporation that exemplifies an integrated global marketing strategy to
a considerable extent. That corporation has developed a global marketing
strategy that encompasses p ractically all aspects of its marketing
programme, including segmentation, positioning, branding, distribution,
bottling, and advertising.

Completely integrated worldwide marketing strategies will continue to be
the norm, according to reality. However, th ere are many other types of
partially globalized marketing strategies; each may be tailored to specific
industry and competitive circumstances.

Global Product Category Strategy
The global product category strategy is maybe the least integrated sort of
global marketing strategy. Leverage can be achieved by competing in the
same category in multiple countries, and it can take the shape of product
technology or development costs. When a corporation chooses a global
product category, it means that the company will explore targeting
different sectors within that category or changing the product, advertising,
and branding to meet local market demands. Companies operating in the
multi -domestic mode usually use a global category strategy and leverage
market experti se without pursuing standardisation. When there are major
disparities between markets and only a few segments are present in each
area, this technique works best. Several classic multinational firms have
been transitioning towards the global category after decades of pursuing a
multi -domestic marketing approach, customising marketing strategies to
local market conditions and allocating management to local management
teams.
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128 Nestle, Unilever, and Procter & Gamble are three big international
consumer goods fi rms involved in the food and household goods
industries.

Global Segment Strategy
A global segment strategy is used by a corporation that decides to target
the same segment in multiple countries. The corporation may have a better
grasp of its consumer base and use that knowledge all around the world.
When a corporation develops an in -depth grasp of a niche or segment in
the consumer or industrial industries, important knowledge is gained.
Even if some standardisation is expected, a pure global segment appro ach
will allow for diverse items, brands, or advertising. The options could
include always competing in the top or middle section of a consumer
market or for a specific technological use in an industrial segment. In the
world of global marketing, segmentat ion tactics are relatively new.

Global Marketing Mix Element Strategies
These strategies focus on individual marketing mix factors including
pricing, distribution, location, promotion, communications, and product to
achieve globalisation. They are partial ly globalised marketing tactics that
allow a business to tailor other components of its marketing strategy. The
most essential strategies are global product strategies, global advertising
strategies, and global branding strategies, while other sorts of str ategies
may be used. Those marketing mix parts that are exposed to particularly
powerful global logic factors are typically globalised by firms. When
faced with strong global purchasing logic, a company's account
management techniques or pricing approach m ay be globalised. Another
company that faces strong global information logic will need to globalise
its communications strategy.

Global Product Strategy
A corporation that pursues a global product strategy has largely globalised
its product offering. Whil e the product may not need to be totally
standardised over the world, critical parts or modules may be. Product use
conditions, expected features, and required product functionalities must be
generally same throughout all global product strategies, with li ttle
differences or revisions required. Companies interested in pursuing a
global product strategy want to take advantage of the fact that all of the
necessary investments for producing and developing a product have
already been made. Global strategies wil l generate more volume, making
the initial expenditure more justifiable.

Global Branding Strategies
Global branding strategies consist of using the same brand name or logo
worldwide. Companies want to leverage the creation of such brand names
across many markets, because the launching of new brands requires a
considerable marketing investment. Global branding strategies tend to be
advisable if the target customers travel across country borders and will be
exposed to products elsewhere.
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129 When target clients are exposed to advertising from all around the world,
global branding strategies become even more vital. This is frequently the
case for industrial marketing consumers who read international trade and
industry periodicals. Global branding is becoming incr easingly significant
for consumer products, as cross -border advertising via foreign TV
channels is becoming more popular. Even before the liberalisation of the
economies in the early 1990s, many customers in some countries, such as
Eastern Europe, were fam iliar with Western European brands. A
company's global branding allows them to capitalise on existing goodwill.
Luxury goods marketers, for example, who often face a substantial fixed
outlay for the worldwide promotion of a product, may pursue global
brand ing tactics.

Global Advertising Strategy
The usage of the same brand name all around the world is commonly
connected with globalised advertising. However, a business can desire to
employ different brand names for historical reasons. Many multinational
corporations have undertaken acquisitions in other countries, leading in
the creation of a slew of local brands. These regional brands have their
own distinct market, and changing their names could be harmful. Instead,
the corporation might seek to capitalise on a specific subject or advertising
strategy that was produced as a consequence of some global customer
research. When a company wants to sell to customers that are looking for
similar benefits all over the world, global advertising themes are the best
option. When the purchasing reasons are found to be similar, a common
theme can be developed to address them.

Composite Global Marketing Strategy
The previous descriptions of numerous global marketing models give the
idea that businesses are only employing one of the general strategies.
However, reality reveals that few businesses stick to a single strategy over
time. Companies are more likely to adopt multiple general worldwide
strategies and run them in parallel. A corporation may pursue a global
brand st rategy for one aspect of its business while operating local brands
in other areas. Many businesses are a mash -up of many methodologies,
hence the term composite.

Competitive Global Marketing Strategies
We are particularly interested in two types of method s. For starters, there
are a number of heavily contested global marketing battles in which two
companies compete across the entire global chessboard. The second game
sets a worldwide corporation against a local company, which is a scenario
that occurs freq uently in many markets.

The war for market supremacy between Coca -Cola and PepsiCo, the
world's two major soft drink firms, is one of the most long -running
conflicts in global rivalry.
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130 Global corporations might use their expertise and market position in one
area to help another. As a result, a worldwide firm is frequently a more
formidable opponent than a local corporation.

Despite their greater resources, multinational corporations often become
rigid after a number of successful market entrances and pre fer to stick to
typical approaches when flexibility is required. In general, the strongest
local competitors of global corporations are those who keep a close eye on
them and learn from their manoeuvres in other nations. Local competitors
in some areas can take advantage of such advance warning by developing
defences or launching a pre -emptive attack on the same segment, as some
global corporations require several years before a product is offered in all
markets.

4.2.3 STRATEGIES FOR ENTERING THE EMERGIN G
MARKETS
The term "emerging markets" refers to an economy that has had
significant economic growth and has some, but not all, of the features of a
developed economy. Emerging markets are countries that are in the
process of changing from "developing" to "de veloped" status.

Characteristics of Emerging Markets
The features of emerging markets are depicted in the diagram below.
1. Market turbulence

Political unrest, external price changes, and/or supply -demand shocks
caused by natural disasters all contribut e to market volatility. It exposes
investors to the risk of exchange rate and market performance variations.

2. Potential for growth and investment
Foreign investors are often drawn to emerging countries because of the
high rates of return they may provid e. Due to a lack of indigenous capital,
countries that are transitioning from an agriculture -based economy to an
industrialised economy sometimes require a huge injection of capital from
foreign sources.

Taking advantage of their competitive edge, such co untries concentrate on
exporting low -cost items to richer countries, which enhances GDP growth,
stock prices, and other economic indicators.

3. High rates of economic growth
Emerging market governments are more likely to pursue policies that
promote indu strialisation and rapid economic expansion. Lower
unemployment, higher disposable income per capita, increased
investments, and improved infrastructure are all benefits of such policies.
Developed countries, on the other hand, such as the United States,
Germany, and Japan, have modest rates of economic growth due to early
industrialization.

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131 4. Income per capita
Due to their reliance on agricultural industries, emerging markets typically
have a low -middle income per capita in comparison to other countries.
Income per capita rises in tandem with GDP as the economy pursues
industrialization and manufacturing activity. Lower average incomes also
act as a motivator for increased economic growth.


Fig 1.6.1 Brazil, Russia, India, China, and South Africa are t he biggest
emerging markets in the world

MARKETING STRATEGIES FOR THE EMERGING MARKETS:
Enter Low and Middle End Segments of the Market
Many multinationals have discovered that catering to the lower and middle
market sectors is where they locate their swe et spot in emerging nations.
In other words, contrary to popular belief, multinational corporations have
discovered that selling to various sectors is far more profitable than
focusing solely on the top segment. A case in point is the experience of
Japanes e corporations that focused on the top segment in numerous
emerging economies and discovered that they were not successful. As a
result, Japanese automakers have turned their attention to the lower and
middle market segments in a number of Asian countries, notably India,
where they have had significant success.

Take the Merger and Acquisition Route:

The restrictive bureaucracy and political involvement in many emerging
economies deter Western multinationals, making them hesitant to expand
their businesses . In this instance, they can form partnerships with local
businesses and merge or acquire local enterprises. This makes sense
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132 because local company executives are familiar with the local bureaucracy,
and their familiarity and knowledge may be used to deal with policy
paralysis and the logjam that many emerging economies have experienced
in recent years. Another benefit of this method is that multinational
corporations can develop inorganically when organic growth is no longer
practicable.

Display Commitmen t and Send Senior Talent:
Many multinational corporations do not treat emerging areas with the
same seriousness that they do industrialised countries. This means they
don't send high -potential employees or senior executives to run their
operations in these countries. As a result, they are short on talent to
manage their operations in these countries. Of course, many Western
expats find it challenging to work and live in growing markets such as
India, Brazil, and Russia. This should not, however, stop them f rom
demonstrating dedication. When it comes to commitment, many
multinationals lose interest in emerging markets after a few years,
especially if the returns aren't up to par. Many western multinationals are
pulling out or selling their assets in countries where political risk and
societal hurdles are limiting their expansion. The crucial point here is that,
because western companies have vast coffers, they can afford to do so.

Multinationals have little choice but to expand into emerging markets, as
the d eveloped world's growth has slowed to approximately 2%, while even
the most underperforming emerging nations are growing at 5%. As a
result, multinationals should employ a combination of the techniques
outlined above, as well as a greater focus on the next "Breakout Nations,"
such as Vietnam, Algeria, and Mexico. It will be interesting to examine
how effectively western multinational corporations adapt to the local
conditions in these countries.

Case Study: Life’s Good for LG
LG Electronics India’s market share dropped in January 2005 —for the
first time since the company was set up in 1997. But Managing Director
Kwang -Ro Kim isn’t worried. “The dealers must have met their targets in
December itself, so they took it easy in January,” he explains. Were it any
other company, the managing director’s insouciance would appear to
border on foolhardiness. But this is LG, a company that can afford to take
it easy. Even after the blip in sales in January —LG’s market shares in
refrigerators fell fractionally from 28.6 per cent the previous month to
28.1 per cent —the Korean consumer electronics brand is still the preferred
white goods brand in India —across categories and sub -categories.
Whether it is refrigerators, air -conditioners, washing machines or colour
televisions — LG’s dominance over the white goods market is complete.

In volume terms, LG is No. 2 player.
Refrigerators 27.22 - 1.2 (Whirlpool)
Colour TVs 25.5 - 15.1 (Samsung)
Microwave ovens 41.4 - 19.7 (Samsung)
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133 That’s pretty decent going for a company whose first experience in the
Indian market was nothing short of disastrous. In its earlier avatar, the
Korean company came to India as Lucky Goldstar.

This was in the early 1990s, and the rules at th e time didn’t permit foreign
companies to start independent ventures. So Lucky Goldstar took on not
one, but two joint venture partners. The first partnership ended
acrimoniously while the second one never got off the ground.

In 1997, the Foreign Investm ent Promotion Board finally gave the Korean
company permission to set up its own factory to make washing machines
and refrigerators. Re -christened LG Electronics, the new company —a 100
per cent subsidiary of the Korean chaebol —swung into action and set up a
state-of-the-art manufacturing facility at Greater Noida, Uttar Pradesh.

There’s been no looking back since then. In October 2004, LG set up a
second manufacturing facility at Ranjangaon, near Pune, which makes
white goods as well as cellular phones — the first GSM handset
manufacturing facility in India.

Another facility, exclusively for GSM handsets, is being set up and will
start operations in August. Turnover is also on the upswing: starting from `
150 crore in 1997, LG registered a turnover of ` 6, 500 crore last year and
is targeting ` 9,000 crore in 2005.

So, what went right?
Perhaps the most important step was to leave behind the baggage of the
past.

As Lucky Goldstar, the company’s biggest fault was that it did precisely
what other white good s brands of the 1990s were doing: some half -hearted
advertising and pushing the products only when the consumer entered the
store.

Activities that “pulled” potential buyers into showrooms were conspicuous
by their absence. Once it got the permission to o perate as a wholly owned
subsidiary, though, all that changed. Within just five months, LG products
were available across the country compared to the average two years
competitors took for a nationwide launch.

An advertising blitzkrieg followed. And the momentum hasn’t let up
since. LG is one of the most aggressive advertisers in the white goods
industry, spending close to 5 per cent of its revenue on marketing
activities —that’s ` 130 crore last year.

A close tie up with cricket ensured the brand buildin g exercise would
score well on consumer recall —apart from signing on leading Indian
cricketers, LG also launched a cricket game on one of its television
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134
Importantly, for LG, a nationwide launch meant just that. A penetrative
distribution strategy ensured that products were available even in smaller
towns and cities, breaking the chain of urban dependency that plagues
whitest goods manuf acturers.

More than 65 per cent of last year’s ` 6,500 crore revenue came from non -
urban sources; up from under 60 per cent the previous year. And what was
the industry average? It was between twenty -five to 30 per cent. Add the
fact that the rural marke ts accounted for a remarkable 30 per cent of total
sales and it’s clear that LG’s strategy is working. “We push rural
marketing,” agrees Kim.

How does it do that? LG reaches into the hinterland through a pyramidal
sales structure. Branch offices in larger cities set up central area offices
(CAOs) in smaller towns; these in turn reach out to even smaller towns
and villages through remote area offices (RAOs) —at last count, the
company had 51 branch offices, 87 CAOs and 78 RAOs.

Each RAO has servicing, mark eting and sales teams at its disposal and an
individual budget for marketing activities in its territory. The executive in
charge has independent decision -making powers —he can decide the tenor
and scale of brand promotions in his area, without having to cr oss check
every little detail from the head office.

Technology, too, is being used to the hilt to ease their jobs. The RAOs and
CAOs are all electronically connected through a V -SAT and Intranet
network.

And where earlier decisions about putting up larg e hoardings could be
approved only after a visit from the head office, LG has provided all its
branch managers digital cameras — now they just click images of suitable
locations and get them approved electronically.

For customers, though, the direct appro ach is preferred. The advantage of
an extended distribution network is that marketing executives can keep a
finger on the pulse of the market. Promotions and finance schemes are
designed to suit the needs of local customers.

In a small town in Uttar Prad esh, for instance, last year LG offered select
households a free 15 -day trial of a 50 -inch flat screen television during the
cricket season. The TV set costs close to ` 1 lakh, but several families took
the bait and considered buying the TV —at which point the showroom
staff offered them carefully planned finance schemes.

Of course, it’s not just the finance schemes that are tailor -made. LG has
been careful right from the start to offer customers a “value -plus”
proposition.
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135 Explains KSA Technopak Princip al Harminder Sahni, “LG has always
taken the stand that “We’re selling the AC, not the remote. The remote
comes as part of the package.” “Whichis why, he adds, the company does
not qualify as a “budget “models company.” “LG does Notes not sell no -
frills pr oducts; it gives you all the bells and whistles,” Sahni says.

LG recognised the need to do that early on. Kim —who’s been with LG
India since 1997 — points to a basic characteristic of Indian consumers:
“They are very price sensitive. They want the best qua lity at reasonable
prices.” Accordingly, LG introduced its economy range in the country,
which Kim predicted would be “easily accepted”.

The company was ready to do battle on two flanks: it offered modern,
features -packed products, at the same time keepi ng its margins wafer -thin.
Even competitors accept the merit of the tactic.

“LG has been a price warrior while retaining its brand equity,” points out
Ajay Kapila, vice president, sales and marketing, Electrolux India. “Our
success is the result of hard w ork and commitment. There’s no miracle
involved,” says Kim.

The hard work was on the features, which were carefully chosen —and
adapted —to appeal to Indian audiences. For instance, Kim points out that,
consumers in southwest India prefer big sound and big bass outputs.

Accordingly, LG India created Ballad, a flat screen television model that
sells only in the subcontinent and comes equipped with 2,000 watt
speakers.

Similarly, refrigerators in India have smaller freezers and big vegetable
compartments — Indians prefer fresh food and a significant proportion are
vegetarian. Colours, too, are chosen keeping market preferences in mind.
White refrigerators, for instance, don’t sell well in Kolkata and Punjab —
while the sea air in Bengal corrodes the paint, the masalas used in Punjabi
cooking discolour the fridge.

So LG offers a range of bright colours in these markets. The cricket game
in TV sets wasn’t the only “go local” innovation: LG also offered on -
screen displays in five languages and large capacity sem i-automatic
washing machines that would suit Indian families.

The research for these adaptations and innovations is done in -house. LG
invests significantly in local R&D —last year the company spent over `
100 crore on research.

“We want to be independen t of Korea,” states Kim. It’s working towards
that: already 70 per cent of its product line is produced locally, with the
rest imported from China, Korea and Taiwan. In refrigerators, 95 per cent
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136 But that was in the past. “Economy” and “value -for-money” are no longer
going to be the cornerstones of LG’s India strategy. In the next five years,
says Kim, the company will concentrate on building itself as a premium
brand, targeting 10 p er cent of its earnings from super -premium products.
That includes products like the Whisen range of wall -mounted air -
conditioners (` 50,000 and above), Dios refrigerators (` 65,000 and above)
and X -canvas plasma TVs (` 1 lakh and above).

LG has already set up 75 exclusive showrooms for these products, which
were launched earlier this year, with more in the pipeline. This year it will
spend upward of ` 20 crore promoting the super -premium sub -brands.
“High -end products need high -end outlays,” smiles Kim.

Perhaps, but industry analysts have their doubts whether exclusive
showrooms for such big -ticket items will bring in the bucks. “When it
comes to consumer durables, people prefer comparison shopping. I will be
surprised if the stores make money,” comment s KSA’s Sahni. Meanwhile,
there’s the imminent departure of the man who built up LG India to its
present height. Kim, who was last year promoted as head of LG South
West Asia, is likely to move up within the parent organisation sometime
soon. “I am prepari ng to leave,” he admits. Will that make a difference to
LG’s growth curve? Kim doesn’t think so.

“The system is working, so things will continue as they are,” he says. That
thought finds an echo in Sahni, who points out “Kim may be leading from
the front , but LG couldn’t have achieved what it has without a strong
team.”

The challenge now will be to integrate the new incumbent’s working style
with the existing culture of the organisation —and work on the new
marketing strategy. If LG meets that head on, t hen, like its tagline says,
Life’s Good.

Questions
1. Study the case and identify significant issues.
2. Conduct a SWOT analysis of LG.
3. What marketing strategies did LG adopt to be so successful in India?

Source: www.bsstrategist.com April 5, 2005.

4.3 SUMMARY

Marketing strategies has been drastically changed. To be survive and grow
in the present scenario of market, marketer need to acquire and
accommodate new marketing strategies. In the traditional marketing
period big hoardings, pamphlets, ban ners are used in large scale for
dissemination of product or services but in the 21st century internet has
changed whole pattern of marketing. If one has decide to stay away or in
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137 may only survive but could not grow as compare to the fellow marketers
product or services. To enter in the world market and sustain in the
competition from the similar product or services, marketer need to
strategically adopt the emerging marketing strategies .

4.4 EXERCISE

Short Answers:
1. Define the concept of Vertical Integration Strategy. State the advantages
associated with the Vertical Integration.
2. What are Emerging Markets? State its characteristics.
3. Why marketing strategies plays an important role in defining Brand
equity for the organization?
4. Enumerate the steps to build the Marketing Strategies.
5. Discuss the classification of the Market Dominance Strategies.

Long Answers
1. Why marketing Strategy is called as a Game Plan?
2. How 21st Marketing Strategies are different from the traditional
marketing Strategies?
3. Give the explanation for any 5 Global Marketing Strategies.
4. Describe the significance of entering in the Emerging Market by the
Global Organization?
5. Explain the different types of Marketing Strategies.

B. MULTIPLE CHOICE QUESTIONS

1. __________ strategy is used by a company that tries to sell a single type
of product in multiple markets.
 Horizontal Integration
 Vertical Integration
 Aggressiveness Integration
 Market Domina nce Integration

2. Defense strategy is suitable for the organization that wants to
_____________
 Increase Market Share
 Maintain steady market share
 Decrease Market Share
 Tap new market

3. Stronger skills of product engineering is a pre -requisite for
 Cost Leadership Strategy
 Market Challenger
 Market Follower
 Differentiation Strategy

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138 4. What involves tailoring the marketing mix to the specific needs of only
one or two sectors of the market?
 Market Propagator
 Market Leader
 Market Niche
 Market Bumper

5. In __________when keywords linked to a company's product or service
are searched, a corporation buys or "sponsors" a link that displays as an ad
in search engine results.
 SEO
 SEM
 POP
 Co-Branding

Answers: 1 – a; 2 – b; 3 – d; 4 – c; 5 – b;

C: Fill in the b lanks
1. An organisation is useless and vulnerable to changes in the business
environment without a ___________.

2. ____________is a plan to sell services or products in such a way that
any firm can achieve long -term profitable growth

3. To gain a ______ ______, brands that wish to be known as pricing
leaders should provide lower costs

4. ___________ may create a distinct identity in the ever -changing,
competitive market by following a comprehensive and consistent
marketing strategy.

5. _____________ is a computer -assisted procedure that targets individual
prospects and consumers in order to influence their purchasing decisions.

Answers: 1 – plan; 2 - marketing strategy; 3 - competitive advantage, 4 –
Brands; 5 - Email marketing

D. State whether the fol lowing given statements are True ‘T’ or False ‘F’.

1. To maximise brand visibility and promote products and services, social
media networks may be included in the Internet Marketing.

2. The corporation pays a heavy charge to the search engine (or another
third -party host site) for each visitor who clicks on the ad – a literal
"pay per click."

3. Conversational marketing is particularly beneficial for B2C
organisations because it scales customer service and reduces the
amount of time consumers spend in th e sales funnel.
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139 4. Earned media is publicity generated with the use of paid advertising.

5. A global segment strategy is used by a corporation that decides to
target the same segment in same countries

Answers: 1 – T; 2 – F; 3 – T; 4 – F; 5 – F;


E. Match The following:
A B
1. The distribution channel a. Brand Story Telling
2. Sell a single type of product in
multiple markets b. Global Brand Strategy
3. Marketing strategy in which two
or more companies collaborate to
promote and sell a single pro duct or
service c. Co -Branding
4. Employs a well -known
communication structure to elicit
emotional responses from customers d. Location
5. Strategies that use the same brand
name or logo worldwide e. Horizontal Integration

Answers: 1 – d; 2 – e; 3 – c; 4 – a; 5 – b


 
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140 5

E- MARKETING

Unit Structure

5.0 Objectives

5.1 Introduction

5.2 E-Marketing

5.3 Social Marketing

5.4 Summary

5.5 Exercise

5.0 OBJECTIVE

After studying this unit, you will be able to
 Explain the significance of E -Marketing for business organiza tion
 Outline the features of Digital Marketing
 Explain the concept of Social Marketing
 Discuss the Barriers of Social -Marketing

5.1 INTRODUCTION

Technology is becoming increasingly vital in today's corporate sector.
With the passage of time, the corporat e sector becomes more
technologically advanced. Business lives on innovation, and since
technology facilitates it, we could say that businesses require technology
to thrive.

Every aspect of how businesses operate has been altered by technology,
and firms today run at a breakneck speed. How can your business keep up
with the latest technology developments? The foundation of your business
does not need to be rewritten. Now all you have to do is figure out how
technology affects your business (for better or w orse) and how to take
advantage of it. Technology's role in business cannot be emphasised. In
recent decades, technology has ushered in a new and improved approach
to corporate management, making transactions faster, more efficient, and
more convenient. As a result of technological improvements, accounting,
data collection, logistics, and other business sectors are all changing.

Advances in communication and information technology have enabled
businesses to be connected at all times, boosting their efficie ncy,
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141 optimise management and output regardless of your industry, business
size, or core activity. Thanks to technical equipment and digital tools,
small businesses may now compete wit h larger firms in terms of
operational efficiency. Technology assists us in keeping critical data
secure and less vulnerable to attacks. Technology has aided the growth of
e-commerce, which has given the globalisation of enterprises a new
dimension. The gr owth of information technology has made
manufacturing networks less expensive and easier to manage, and it has
been critical to economic globalisation. International trade has increased
as a result of the increased speed of global communications, which has
enabled real -time commerce and collaboration.

5.2 E- MARKETING

E-marketing is a broad phrase that encompasses a wide range of Internet -
related activities. Website creation and promotion, consumer
communications, e -mail marketing, and newsgroup advertisi ng are all
examples. However, during the last decade, the word "e -marketing" has
come to embrace a far broader variety of activities, one of the most
prominent of which is the use of social media to advertise online. The
strategic process of generating, di stributing, promoting, and pricing items
for targeted clients in the virtual world of the Internet is referred to as e -
marketing. E -marketing is best understood as a wide notion that has
expanded in recent years with the introduction of smart phones and ta blets
like the iPad.As a result, "e -marketing" is best defined as "the production,
distribution, promotion, pricing, and communication of things over the
entire Internet and the vast array of platforms that presently comprise the
Internet."

5.2.1 E -MARKET ING ADVANTAGES
Advantages of E – Marketing are as follows:
1. Immediate response : Internet marketing has a rapid response rate; for
example, if you upload something, it goes viral almost immediately.
Then, in a matter of hours, it would reach millions of people.

2. Cost -Efficient: It is substantially less expensive than other forms of
advertising. If you use the free methods, you will spend almost little
money.

3. It's less dangerous: What one has to lose when the cost is low and the
instant rate is large. There is no danger at all.

4. Improved data collection: You'll be able to collect a broad variety of
items this way.

5. Interactive: One of the most crucial features of internet marketing is
how engaging it is. People can write comments, which can provide you
with feedback from your target market.
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142 6. Achieving Personalized Marketing : With the correct preparation and
marketing approach, clients can be made to feel as if the advertisement
is speaking directly to them.

7. Product will be exposed to a larger audience. Going viral with a single
post can help your product or service gain more exposure.

8. Accessibility. The beauty of the internet and e-marketing is that it can
be accessed from anywhere on the planet.

5.2.2 DISADVANTAGES OF E -MARKETING

Some of the disadvantages of the E -Marketing are as follows:

1. Reliant on technology . E-marketing is fully reliant on technology and
the internet; even a minor outage might damage your entire operation.

2. Global Competition. Because your product is acces sible from
everywhere, you will face worldwide competition when you offer it
online.

3. Privacy and Security Concerns Because your data is accessible to
everyone, privacy and security concerns are significant; as a result, one
must be extremely cautious about what they post online.

4. Price Competition and Greater Transparency When privacy and
security concerns are strong, being transparent requires a significant
investment. With more transparency, there is also more price competition.

5. The cost of maintenance In today's fast-changing technical
environment, you must always advance with the pace of technology, and
maintenance costs are very costly.

5.2.3 DIGITAL MARKETI NG:
Digital marketing refers to any marketing campaign that uses an electronic
device or the internet. Businesses use digital platforms such as search
engines, social media, email, and their websites to communicate with
current and future customers. Making the right connections with the right
people at the right time has always been at the heart of marketing. That
means you'll have to meet them online, where they already spend a lot of
their time. Enter digital marketing, which encompasses all forms of
internet advertising. Digital marketing is defined as the use of a multitude
of digital t actics and platforms to communicate with customers where they
spend the majority of their time: online. Digital marketing encompasses a
wide range of tactics, from the website itself to a company's online
branding assets - digital advertising, email market ing, online brochures,
and more.

For Example: Nike #MakeItCount Campaign
In early 2012, Nike introduced its #MakeItCount on social media website,
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143 subscribers Casey Neistat and Max Joseph launc hing a YouTube video,
where they traveled 34,000 miles to visit 16 cities in 13 countries. They
promoted the #makeitcount hashtag, which millions of consumers shared
via Twitter and Instagram by uploading photos and sending tweets. The
#MakeItCount YouTube video went viral and Nike saw an 18% increase
in profit in 2012, the year this product was released. It was a voyage that
included stops in Zambia, Doha, Bangkok, and many other places.
















Source: http://www.footy -boots.com/files/2012/01/nike -make -it-count -
rio-ferdinand.jpg
Figure 5.3 Nike#MakeitcountCampaign

5.2.4 FEATURES OF DIGITAL MARKETING:
Segmentation:
The behaviour in terms of choices and preferences in Social Media is
explored in Digital Marketing, which focuses on a more precise approach.
The advertisement is tailored to certain segments of the audience based on
demographic factors.

With just a few clicks, a firm or organisation may sel l its products or
services all over the world. A PPC ad campaign, for example, can simply
target a certain city, state, or country anywhere on the planet.

Cost:
When compared to traditional marketing, digital marketing provides a
significantly better retu rn on investment. Digital Marketing is preferred by
small businesses in particular because of its cost effectiveness and
increased return on investment.

Advertising on television, radio, billboards, and mailers is far more
expensive than advertising on so cial media, blogging, and content
marketing. Furthermore, not only are these solutions cost -effective, but
they are also permanent; they will remain in place until you remove them.


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144 Defining the Target Audience
Advertisers can use digital marketing tact ics to offer their items to a
specific audience depending on a range of characteristics.

Pay Per Click and Social Media Ads can be tailored to a certain
demographic based on their age, gender, location, interests, choices, and
preferences. People that lea rn about a company through strategies like
content marketing and SEO will go online and look for related keywords.

Buying intent
On the other hand, digital marketing seeks to target potential clients based
on their preferences. This means that people who find your product or
service on the internet are there because they are ready to buy or are
actively looking for a solution to their problem at the time.
As a result, digital marketing has a far greater conversion rate than
traditional marketing.

Custome r Engagement
The goal of digital marketing (online marketing) is to start a dialogue that
is valuable initially. Digital marketing is an unbounded technique that
attracts customers to a company. When we're trying to reach out to a
younger demographic who uses social media and other online channels,
digital marketing is a good option.

Longevity
There are a variety of digital marketing tactics, such as Search Engine
Optimization and Email Marketing, that can be beneficial to your
organisation in the long run. Video marketing, social networking,
blogging, and content creation are all tools that can help you grow your
online presence and, eventually, your business.

Because the majority of these internet strategies have a cumulative effect,
your website or business will continue to attract new visitors and
consumers for months, if not years.

Measuring Profitability:
All social media and corporate websites nowadays employ tools and
plugins to track visitors and determine what they came for and what
actions t hey took.

Google Analytics is a service that allows you to track overall customer
behaviour. By assessing the impact of a certain ad or any marketing
approach, digital marketing will offer you with enough data to better
understand your customer.

5.2.5 EX PERIMENTAL MARKETING :
Experiential marketing, often known as engagement marketing, is a
marketing technique that immerses or deeply involves customers in a
product. In a nutshell, experiential marketing allows customers to not only
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145 unique experiences generate emotional connections between the brand and
the consumer. Experiential marketing not only entails client engagement,
but it also frequently improves it.

5.2.6 FEATURES OF EXPERIMEN TAL MARKETING:
1. It Finds People Where They Happen to Be
Assume you operate a company that sells organic pet treats. People and
their pets may sample your product without having to travel out of their
way by setting up a pop -up store at a local animal cha rity function.

You avoid "interrupting" consumers by placing experiential consumer
marketing in strategic locations at key times. This allows you to engage
them where they are.

2. Partnerships can provide excellent opportunities for experiential
marketi ng.
Consider collaborating with other brands for an immersive marketing
campaign. Perhaps you sell document control solutions to businesses,
while another business in your building sells accounting software. What if
you rented out a local café for a day to give "advisory speed dating" to
assist local businesses in locating key business services? Both brands and
consumers, as well as the venue, profit.

3. It may include both online and offline components.
Because individuals are more likely to share their experiences online, it's a
good idea to think about how experiential marketing may combine the
online and offline worlds. You may hand out business cards with a QR
code that users can scan with their phones to complete a survey and
receive a voucher when h anding out free samples of a new product.
Similarly, allowing participants to share their experiences by setting up
a"selfie booth" can help you get your message out wider than if the event
was entirely offline.

4. It can be used by small businesses and B2B firms.
While many of the experiential branding achievements you read about are
from larger B2C businesses, smaller businesses and B2B businesses can
also benefit from experience consumer marketing. When a brand
experience teaches customers anything in a fun and engaging way, it may
have a big impact.

5. It's Still Important to Set Goals and Track Results
Experiential marketing can be entertaining and engaging, but it must be
profitable. As a result, it's critical for brands to define specific goals and
determine how they'll track achievement before embarking on an
experiential marketing campaign. If you want to "increase brand
awareness" through an immersive consumer marketing campaign.

For example, you may track your brand's social media activity in t he days
leading up to and following the campaign.
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146 Tracking results not only ensures a successful consumer marketing
campaign, but it also makes executive buy -in for the next one easier.

5.2.7 HOSPITALITY MAR KETING MANAGEMENT:
A solid marketing plan is es sential for any business to develop a strong
brand and engage customers. It's no different in the hospitality sector.
Customer loyalty is frequently critical to success in restaurants and hotels,
as many hospitality businesses rely on repeat customers and brand
advocates for the majority of their revenue. Repeat customers can account
for as much as 40% of a store's or hotel brand's income.

A hospitality marketing strategy, like any other promotional endeavour,
can encompass a wide range of activities, from digital assets such as
content marketing to direct advertising efforts. Many hotel companies
blend their offline and internet marketing efforts. For example, a
restaurant might conduct an online campaign offering loyal consumers a
special discount when th ey purchase a specific dish from one of their
physical locations.

Customers are sold "experiences" by hospitality firms above all else. This
necessitates the use of experience -based advertising in their marketing
initiatives. If businesses can demonstrate that they can create the most
memorable moments, they will succeed in the hospitality industry.
The important reasons for companies to have the right hospitality
marketing plans are as follows:

1. Enhance word -of-mouth marketing
Many hospitality firms wi ll have a customer base made up of previous
clients and guests to some extent. Modern businesses, on the other hand,
may ensure that they're making the most of their prospects by using the
right hospitality marketing and advertising techniques.

For examp le, social media advocacy campaigns can encourage past hotel
guests to submit evaluations on a social media outlet that attracts new
visitors. Customers can leave reviews in local review forums and on Yelp
pages. For years, hospitality businesses have depe nded primarily on word -
of-mouth marketing and social proof to fuel their growth. The fires of
these already -successful campaigns are stoked by a hospitality marketing
approach.

2. Outshine the competition
Companies need a fresh approach to identify themse lves and outshine the
competition as the hospitality business transforms with smartphone apps,
Airbnb, and UberEats, among other things. Hospitality marketing is a
wonderful approach to highlight your company's unique selling
characteristics. You may, for example, use case studies and reviews from
your most satisfied customers to demonstrate to your consumers that you
provide the greatest possible customer service.
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147 You may even tour people around your premises with an offline marketing
campaign, allowing t hem to see first -hand how they'll have an outstanding
time with you. For example, an online competition to win a free hotel stay
gets people talking about your business while also providing you with
some great user -generated content in the form of a review from the
winner.

3. Adapt to the changing landscape
Businesses who can remain ahead of the curve will thrive as digital
marketing trends continue to advance. Developing a hospitality marketing
plan forces companies to evaluate their current promotional a ctivities and
make adjustments depending on what they know their customers want.
You may improve your strategy and ensure that your marketing initiatives
are long -lasting with a competitive analysis and insight from a
professional branding firm.

For examp le, approximately 6 out of 10 clients choose their hotel based on
information found on the internet. Any of your clients' pressing inquiries
could be answered with the help of content marketing methods. However,
if you remain silent online, you may be incr easing the likelihood that your
target audience may seek lodging elsewhere.

When it comes to great hospitality marketing management, there are a few
things to keep in mind.

1. Start with a sensational site
It's quite rare that your marketing approach doe sn't already include a
digital component. However, if you don't, you'll be missing out on a huge
pool of potential clients. Building a website that communicates to your
target audience is the first step in "getting digital." The goal is to make a
website t hat is as warm and appealing as your hotel. Guests must be able
to envision the delectable meal they will enjoy at your establishment, or
they will not return.

Include as much branded images as you can, and invest on a professional
video tour if you can. Remember that your website must do more than
simply "look" good; it must also function properly. Make sure your
content is clear, consistent, and simple to navigate.

2. Develop a great social presence
In practically every industry, social media has become an integral aspect
of many marketing efforts. It's especially critical to have a good social
media presence in the hotel industry, since the connections you build with
your clients are crucial.

Determine which channels your clients like to use. Visual ch annels such as
Pinterest and Instagram are especially effective for hospitality firms such
as hotels and restaurants since they allow you to showcase your meals,
rooms, and other interesting events. Take a look at Airbnb's Instagram
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148
3. Manage your reputation
As previously said, many clients in today's digital age rely on word -of-
mouth and evaluations to determine which hospitality companies they
should partner with. When it comes t o picking an experience that's right
for them, customers are more likely to believe the opinions of other
individuals with whom they connect.

While you have no influence over what others say about your company,
you can manage and preserve your reputation. Check out what others are
saying about you on review sites, and reply to bad feedback by offering to
fix the problems your customers are describing. Don't forget to urge your
satisfied customers to post positive evaluations as well, so that any
negative f eedback is drowned out by positive feedback.

4. Educate your guests with content marketing
Content marketing is without a doubt one of the most beneficial methods
to include in your hospitality marketing strategy. You can enthuse and
engage your audience with content while also increasing your chances of
higher rankings in search engine result pages. Making sure you distribute
the proper content is crucial to your success. The best way to increase your
chances of selling is to create keyword -rich, insightf ul content that speaks
directly to your target audience.

Just have a look at the Hotel Indigo in Durham's blog page. Interviews
with hotel directors, recommendations for which art museums to visit
while in Durham, and more can all be found on the site.

Just keep in mind that content marketing is a long -term plan, and you
shouldn't expect to see immediate results. If you want to succeed, you'll
need to stick to a regular posting schedule for blogs, videos, and other
content.

5. Optimise for search engines
Finally, check to see if your digital hospitality marketing approach is
search engine friendly. While there are numerous methods to engage with
hospitality clients in today's technologically enhanced world, establishing
a strong organic presence is one of the most vital. After all, when your
consumers are looking for somewhere to dine or stay, they will most likely
use their computer or smartphone to search for possibilities.

When people search for words and phrases that are linked to you, search
engine o ptimization is your means of ensuring that you appear near the top
of the search results.

According to research, the top Google result receives approximately 33%
of all clicks. There are numerous strategies to improve your SEO
approach, including:
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149 Obtain ing relevant company backlinks: Reach out to relevant people in
your industry and request a link back to your company or a link back to
yourself via a guest post on their website.

Choosing the appropriate keywords: The use of a mix of long and short -
form keywords that mirror your target audience's language increases your
chances of getting good search results.

Improving the look of your website: A quick website with interesting
pages that persuade visitors not to leave shows Google and other search
engine s that you are deserving of a top ranking.

Example:

Four Seasons: Online magazine
For businesses of all sizes, blogs and articles are a traditional type of
content marketing. An online magazine can be a terrific approach to attract
the attention of clien ts seeking for ideas on which restaurant to visit or
where to go on their next trip in hospitality marketing.

The Four Seasons digital magazine is an interactive web campaign packed
with helpful information to help you plan your trip. You may learn about
the best meals in different regions of the world, as well as read stories
from brave people. With a simple call -to-action button in the top right -
hand corner, you can book a hotel reservation for any destination that
catches your eye as you read through th e magazine.

Marriott: Films (video marketing)

Finally, video marketing has become an important component of many
advertising campaigns in recent years, and it is especially beneficial to the
hospitality business. There are plenty of fantastic experiences that you
may show off through film with businesses that run hotels, recreational
facilities, and restaurants. When Marriott Hotels debuted their short film
promotion, they took advantage of this aspect.

Marriott was able to show guests what to expect fro m their hotel stays
while also emphasising the unique quality of their brand personality
through short films. Similarly, films may be used for everything from
behind -the-scenes tours to one -on-one interviews in the hotel industry.

5.3 SOCIAL MARKETING

Social marketing is the use of marketing to effect social change. Social
marketing can be used to attain particular societal behavioural goals by
utilising various marketing and advertising tactics. Social marketing is the
application of marketing and its st rategies to benefit the general public
rather than the firm. Environmental issues, health, safety, ethics, law,
human rights, peace, and other causes that have benefited society as a
whole have all benefited from social marketing.
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150 The systematic applicati on of marketing, together with other concepts and
approaches, to attain specified behavioural goals for a social good is
known as social marketing. For example, urging people not to smoke in
public places, requiring them to wear seat belts, or requiring th em to
adhere to speed restrictions are all examples of this.

The major goal of social marketing is ‘social benefit,' whereas the primary
goal of commercial marketing is 'money gain.' This isn't to say that
commercial marketers can't help people achieve so cial good.

5.3.1 DEFINITION
The International Social Marketing Association definition states:
“Social Marketing seeks to develop and integrate marketing concepts with
other approaches to influence behaviour that benefit individuals and
communities for the greater social good.

Social Marketing practice is guided by ethical principles. It seeks to
integrate research, best practice, theory, audience and partnership insight,
to inform the delivery of competition sensitive and segmented social
change programme s that are effective, efficient, equitable and
sustainable”.

To "sell" healthy behaviours, social marketing employs the same set of
tactics that are used to "sell" jeans. Commercial marketing is based on
four fundamental principles. They're known as the " 4 Ps.".

P1 - Product is the thing you're trying to sell. A behavior change or a shift
in attitude is the product of social marketing. A campaign might be created
to encourage adolescents to use condoms or to persuade them that
spreading rumors is bad or d angerous.

P2 - Price is the cost. Price is the cost of altering behavior in social
marketing. When an individual commit to a new habit that has been
described as uncomfortable, time consuming, and embarrassing, it is
difficult to quantify the personal cos ts of using a condom. The purpose of
social marketing is to reframe the recommended behavior change so that
the consumer sees that the advantages outweigh the effort or cost of
change.

P3 - Place is the location and method of reaching the prioritized
demo graphic. Place in social marketing refers to any efforts to make
changing a consumer's behavior as simple as feasible. It could entail
providing free or low -cost condoms at handy locations (such as schools,
pubs, or restrooms) or rescheduling a clinic to a ccommodate busy
students.

P4 - Promotion is the method of informing the public about the change
messages. One way to attain this goal is through advertising. In order to
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151 comprises inserting me ssaging about the required behaviour change into
all current community initiatives.

P5 - The goal of policy is to influence policy that isn't punitive but
promotes positive behaviour change.

5.3.2 Importance of Social Marketing

Social marketing aims to achieve a number of goals, including educating
society about a particular topic, raising awareness, providing solutions,
influencing behaviour, highlighting current issues, raising awareness about
assistance schemes, and spreading the word about social org anizations.
Negative social marketing initiatives that raise public awareness about
issues are also quite effective, such as the use of images of oral cancer and
ulcers on tobacco boxes in India to reduce smoking usage. The basic
human nature is to do good to nature and society, and social marketing
capitalizes on these emotions to resurrect the thoughts and feelings of
doing good to society It employs a variety of statistical tools to forecast
and analyses demand and consumption patterns for specific produ cts and
services, consults experts to develop marketing strategies for campaigns,
employs public funds and has relevant cost analysis and return on
investment in terms of behaviour influence, and employs media tools to
broadcast the message to the general public.

Both social marketing and social media marketing are distinct marketing
ideas that should not be conflated. While social media may or may not be
utilized for monetary gain, social marketing is purely for charitable
purposes.


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152 Both social marketing and social media marketing are distinct marketing
ideas that should not be conflated. Social marketing is strictly for
charitable purposes, whereas social media may or may not be utilised for
monetary gain.

One of the most effective strategies to persuade people to take social
action and work on behavioural change is through social marketing.
Various social marketing efforts can quickly capture the public's interest.
With the tactics used for social marketing, one can easily target their target
audience.

Audience perceptions are positively influenced by social marketing. Social
marketing is most effective when programmes for the target audience are
tied to their understanding of society, which is not only more productive
but also more effective.

Social marketing is beneficial to businesses since it raises brand awareness
among the general public. A firm may explain social marketing to a big
audience by having a competent social marketing plan, which will not
only build curiosity among people but also increase advertising.

Social marketing is more cost -effective than conventional forms of
marketing since target audiences may be easily identified based on their
public performances. Through social marketing, one m ay easily reach
their target audiences. In comparison to other forms of social marketing,
there will be less research and development.

Social marketing, like commercialization, plays an important function in
influencing individuals. And commercialization is incomplete without
social marketing, as every company must engage in social marketing in
order to communicate to the public that their purpose is to improve
society.

Social marketing is one of the most accessible marketing initiatives, as it
allows one to readily reach out to the general population. They can simply
encourage societal changes and ensure that the things they are promoting
support our desire to the general public.

People are influenced to choose a fit and healthier lifestyle by social
marketing, which promotes proper health care. It also informs people that
they must be conscious of societal behavioural changes and live a quality
life in the community. By promoting it on numerous channels such as
social media, posting images, blogs, and vi deos, social marketing can
swiftly reach amazing advertising.

Social media is quickly becoming one of the most important aspects of
digital marketing, offering incredible benefits that allow businesses to
reach millions of customers around the world. And if you're not taking
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153 marketing opportunity, as it makes it simple to get the word out about your
product and mission .

Improved brand awareness
One of the most stress -free and profitab le digital marketing tools for
increasing your company's visibility is social media. Create social media
profiles for your company and begin networking with others to get started.
You may greatly boost your brand recognition by implementing a social
media strategy. Over 91 percent of marketers reported that their social
media initiatives considerably boosted their brand visibility and
heightened user experience by spending only a few hours each week.
Having a social media presence for your brand can undoubt edly benefit
your business, and with regular use, it may quickly generate a large
following for your company.

Cost -effective
Social media marketing is possibly the most cost -effective technique to
implement an advertising strategy. Almost all social netwo rking platforms
offer free registration and account creation. However, if you decide to
employ paid social media advertising, start modestly to have a sense of
what to expect. Being cost -effective is vital since it allows you to achieve
a higher return on investment and allocate more funds to other marketing
and company expenses. You may greatly enhance your conversion rates
and, as a result, earn a return on investment on the money you initially
invested by simply investing a little money and time.

Engage with your customers
Customers can be engaged and interacted with through social media. The
more you communicate with your audience, the more likely it is that they
will convert. Set up a two -way communication channel with your target
audience so that you can easily understand their needs and cater to their
interests. Furthermore, communicating and engaging with customers is
one of the most effective ways to capture their attention and express your
brand message. As a result, your brand will reach a larger audience and
establish itself without difficulty.

Improved brand loyalty
When you establish a social media presence, you make it simple for your
clients to find you and engage with you. If you connect with your
customers on social media, you're more likel y to enhance client retention
and loyalty. Because building a loyal customer base is one of the most
important aims of almost any business. Customer satisfaction and brand
loyalty are often linked. It's crucial to keep in touch with your clients on a
regul ar basis and establish a relationship with them. Social media is not
only a terrific way to showcase your products, but it's also a great area to
launch promotional campaigns. Customers see these platforms as service
channels through which they can interac t directly with the company.


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154 Healthier customer satisfaction
Social media is a crucial tool for networking and communication. With the
use of these platforms, you can give your company a voice that will help
you build your entire brand image. When cust omers post comments on
your page, they like to receive a personalised answer rather than a generic
statement. A company that cares about its customers takes the time to
create a personalised statement that is organically positive.

Marketplace awareness
Instead of directly connecting with your clients, market awareness is one
of the finest ways to learn about their needs and goals. It is also recognised
as the most valuable benefit of social networking. By looking at the
activity on your profile, you can se e what consumers are interested in and
what they think, something you wouldn't know otherwise if you didn't
have a social media presence. Social media can help you obtain
information and gain a better understanding of your business as a
supplement to tradi tional research. You can use different tools to explore
your consumers' various demographics once you've built up a big
following.

More brand authority
Brand loyalty and customer satisfaction are crucial aspects in business
growth, but it all comes down t o communication. Clients build a positive
mental image of you when they see your business on social media,
especially when they see you reacting to their questions and providing
original material. Interacting with customers on a regular basis shows that
you and your firm are concerned about them. Once you have a few
satisfied customers who are vocal about their wonderful purchasing
experience, you may consider allowing genuine clients who appreciated
your product or service to do the advertising for you.

Increased traffic
Another benefit of social media is that it helps to increase the traffic to
your website. If you share your content on social media, users will be
more inclined to visit your website. The more high -quality content you
share on social media , the more inbound traffic you'll receive and the more
prospects for conversion you'll have.

Enhanced SEO rankings
In establishing rankings, the presence of social media is becoming
increasingly crucial. In order to attain a high position, SEO requirement s
are always evolving. As a result, just optimising your website and
regularly updating your blog is no longer adequate. Businesses who
publish their content on social media provide a signal to search engines
about their brand's authenticity, integrity, an d consistency.

5.3.3 BARRIERS OF SOC IAL MARKETING
1. Failure to develop a strong strategy:
Not having a clear strategy is one of the most dangerous and fundamental
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155 You'll need to know what your mission is, what your goals are, and what
you want to achieve along the route. Many social media marketers begin
with such zeal that they neglect the finer points of the industry. As a result,
there are even more marketing obstacles.

2. Not knowing what is the target Demographic:
You'll want to know who you'll be speaking with ahead of time. What are
the interests of your target audience? What issues are significant to the
people you're talking to?

Marketing automation can also be used to customise your marketing. This
automation software is effective and assists you in staying in touch with
your target market. It also allows you to devote more time to promoting
your business or cause.

3. Engaging in the same manner on all social platform:
You'll need reliable methods for determining whether or not your social
media approach is effective. Should you use the same criteria to see if
your Facebook approach is successful as it is with Instagram? What might
be the differences?

Different social media sites have different functions. Make sure you'r e
familiar with the main platforms, which include:
Twitter, Pinterest, Instagram, Facebook, Blogging
.
4. Creating yourself as the centre of everything:
We might sometimes get into the trap of focusing too much on our own
points of view as writers and mar keters. While there is a time and place
for no -holds -barred honesty, you'll generally want to sidestep this
marketing challenge by being politer. Remember to consider your target
audience's needs and talk to them.

Case Study
Nutella – Incredible content that makes you salivate
Each post makes you want to eat Nutella. There are a lot of people
(including me) who take photos of their food before they eat it. Nutella
does the same and it works. Nutella isn’t afraid to be fun and creative with
different ingred ients. Nutella is just a chocolate spread yet they manage to
have fun with it. Do you, or could you, have a bit more fun with your
brand?

Here are some ideas for having fun with your brand:
Are you on different social media channels? If you’re B2B you mig ht not
think that Instagram is for you, but it can be a great way to demonstrate
your brand values by telling a story. Fedex is a great example of this,
showing images of their trucks always on the move. This tells a story that
they are always delivering a nd that is the key message we take away.
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156 Key influencers/bloggers can be a great way to different types of content
and to see how they have fun with your brand (if this is new to you, read
our post on the rise of the social media influencer ).

Instead of posting behind -the-scenes photos at your head office, can you
encourage your followers to share their experiences with your brand?
Maybe host an event or go out and meet them.

Source: https://ostmarketing.com/5 -outstanding -social -media -marketing -
case-studies/

5.3.4 TRENDS IN MARK ETING PRACTICES IN I NDIA AND
ACROSS GLOBE

In July 1995, Amazon.com launched as the "world's largest bookstore." It
promised to revolutionise commerce when it was founded by Jeff Bezos as
a virtual bookstore with no physical book s. To achieve the same goal,
Amazon constructed individualised storefronts for each consumer,
delivering more relevant information and options than a conventional
neighbourhood bookshop. It made a name for itself as an online
marketplace. It is frequently updated, has excellent material, and a wider
audience. It focuses mostly on the platform's technological aspects and
numerous products.

In the list of current marketing trends, digital marketing is undoubtedly the
most essential and notable. This trend ha s quickly grabbed on to reach out
to diverse communities relevant to virtual marketing for an organisation.
Companies are always developing new, innovative, and eye -catching
methods. New ones are made by the hour, and old ones are replaced or
altered befor e they have had enough of the day's light. Digital marketing is
the trend of the future, thanks to the expansion of e -commerce and
technological advancements. Its reach will expand as the user base grows
at an exponential rate, thanks to its capacity to tr anscend geographic and
financial restrictions.

The youngsters place a high value on the digital realm. It is a certain
approach to reach out to them in ways that are tailored to the users' needs
and interests. Some of them work on a multi -dimensional leve l and
overlap within the sub -categories. The number of subcategories under this
heading is rising by the day, therefore compiling an entire list is
impossible. The opportunities for integrated trends are also prospering
within the digital trends. Integrati on of social media with a company's
website, integration of blogs and social media, and so on.

The following are some of the most important and consistent digital
marketing trends:

Online Marketing
Online advertising, internet marketing, online advertisi ng, and e -marketing
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157 and promotion of items or services. For instance, blogs, online banners,
search engine results, social network advertising, e -mail marketing, and
online classif ied advertising are all examples.

In internet marketing, the tactics stated above, as well as many others, are
used on an integrated platform. Facebook, MySpace, and other social
media sites are included.

The following are just a few examples of differen t methods of online
marketing:

Email marketing is the use of electronic mail to target customers (email).
Email marketing, which is often coupled with data mining, can be used to
influence customers in a variety of ways. Email marketing, in general, is a
more advanced, digital version of traditional direct mail marketing. Email
marketing is a type of direct marketing that involves sending commercial
or fundraising messages to a target audience via email. Every email sent to
a potential or current consumer might be considered email marketing in
the broadest sense. Your overall marketing strategy and business plan
should include an email marketing strategy.

Email Service: There are a variety of companies that provide email
services. By focusing on the most p opular, marketers can increase the
success of their initiatives. The following email clients are ranked by the
number of times their emails are opened.

iPhone - 20% ,Outlook - 18% , Yahoo Mail - 13% , Apple Mail - 8%,
Hotmail - 8% , iPad - 8% , Android - 7% , Gmail - 5% , Web Version -
5% , Windows Live - 3% , Other - 3% , AOL - 1%

Provider of well -known e -marketing services

Over the last 15 years, the email marketing sector has expanded.
Companies spent $1.51 billion in 2011 on email marketing. To capit alise
on this trend, a number of organisations have begun to offer email
marketing services to both large and small enterprises.

Some of the most well -known service providers are as follows:
1. Contact, Benchmark Email , Constant Contact , Pinpointe, Get Response,
Mailgen .

2. Display advertising: Companies utilise banner ads, web banners, and
other forms of advertising on websites that allow it. The goal here is to
get people to go to their (advertiser's) website from this one.

3. Affiliate marketing: In t his strategy, a company pays an affiliate for
each visitor or customer acquired through the affiliate's marketing
efforts.
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158 4. Content marketing: It is a strategy of creating specialised content like as
blogs, eBooks, articles, and infographics, among othe r things. The
material piques people's curiosity and drives traffic.

5. Video marketing: In this case, videos are developed and posted in order
to attract customer viewers and persuade them to purchase a product or
service adding fresh content videos shou ld be used from time to time to
generate more engaging ideas with clients in order to maintain their
loyalty.

6. SEM (Search Engine Marketing): It's a simple sort of web marketing in
which businesses try to boost their visibility when visitors use search
engines to find them.

This can be accomplished through techniques such as paid placement,
contextual advertising, and so on.

Blog -
Using Blogging as a Tool for Marketing
Although the world of blogging has evolved over the years, the format
remains a he lpful and relevant marketing tool. Being current in your
blogging techniques and marketing initiatives requires staying on top of
the latest developments. Blogging tactics and strategies grow in the same
manner that digital marketing practises do to match new expectations.

Investigate the latest trends in the blogosphere before launching a
successful internet marketing strategy. Once we know which blogging
methods are current and effective, we can fine -tune our digital marketing
campaigns to incorporate wh at we've learned.

The term "blog" refers to a web log. It is the gathering, displaying, and
debate of information on a variety of themes chosen by the blogger and
the visitors. The blogger is the person who developed the blog, regularly
updates it with ne w content, and allows internet visitors to view and
comment on it. The majority of the time, each blog discusses a specific
topic. As a result, blogs can cover as many topics as feasible. The Content
Marketing Institute provides a list of the top blogs and the topics they
cover. As a result, the top -rated blog has been identified as Convince and
Convert.

MABs, or Multi Author Blogs, are professionally edited and created with
input from various authors. Newspapers, professionals, universities, and
other sou rces are all possibilities.

Visitors to blogs can offer their ideas in the form of comments, questions,
and admiration, among other things. Anyone who wants to create and
write a blog can do so and fill it with information relevant to their
interests. Tra ffic refers to the number of people who visit a website. The
more visitors there are, the more traffic there will be.
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159 Different types of blogs can be stated as follows:
Personal blogs are created by individuals who write about whatever they
wish. Individu als can choose their own subjects.

Corporate Blogs: A corporate blog is one that is produced for a company.
They can be created for either internal or external use. Internal blogs are
mostly used for staff communication and engagement, whereas external
blogs are primarily used for marketing, customer contact, public relations,
branding, and other purposes.

Microblogging is the practise of publishing little amounts of digital
content on the internet. Text, images, videos, and other media are used to
create the content. In this category, Facebook is a good example.

Media blogs, blogs by genre, blogs by device, and reverse blogs are just a
few examples.

Mobile marketing -
It refers to all activities that use mobile devices and networks to link
advertisers with consumers. Phones, PDAs, media devices, portable game
consoles, tablet computers, and, of course, devices that serve as all of the
above are all considered mobile devices. Some mobile devices enable only
a few advertising channels (for example, a basi c cell phone can receive
text messages), while others support many more, such as mobile Internet
access, video messaging, and the ability to actively initiate and interact
with advertising (for example, by scanning a QR code).

Reliance Fresh, for example, will send text alerts about the newest
bargains on veggies, snacks, hygiene care, and other products sold in the
store. This allows the customers to quickly gain in any offers they find
relevant form time to time.

Marketing on Social Media
Companies like Facebook dominate the social media sector by providing a
virtual platform that allows users to engage with an entire community at
the same time.

Due to customer acceptability and creative user interface technologies
introduced for the purpose, this inter net marketing trend has grown in a
relatively short period of time. The goal of this marketing technique is to
increase website traffic or attention by using social media networks.
Anyone with an internet connection can simply access it. Organizational
communication improves brand recognition and, in many cases, customer
service. Furthermore, social media provides a relatively low -cost platform
for businesses to launch marketing efforts.

Advertisers on social media employ communication methods that are bot h
accessible and scalable. If the communication is web -based, it can even be
turned into an interactive mobile communication.
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160 The popularity of social media can be attributed to the fact that
smartphones and tablets have made it easier to use and have sim plified the
user interface. According to research, over 38 million people use their
mobile phones to access social media. The trend indicates that mobile
devices have surpassed PCs in terms of usage.

The five characteristics listed below help to illustrat e the complicated
concept of social media:

1. Participation: Users should be able to participate in chats, online
activities, and any other feature of the system that keeps it together.

2. Accessibility: People of all interests must be able to access it whenever
and wherever they choose, regardless of geographic or time constraints.

3. Interactive: A platform must be accessible and participatory in order to
be interactive. The ability to communicate and collaborate among many
parties on the medium employ ed is referred to as interactive.

4. Digital space: Digital space encompasses all of these characteristics.
That is, it must take place through the internet.

5. Connectivity: Interested parties must be able to access the internet and
engage regardless of their location.
Social media includes blogs, podcasts, forums, microblogging, and
networks, among other things. The following is an explanation of how
social media works, grows, and is important:

1. It offers a one -of-a-kind approach to learn what custom ers genuinely
think about a product, service brand, or company.

2. It enables widespread communication via a digital platform.

3. Its low expenses have allowed even tiny businesses to enter this arena in
order to acquire visibility and stay in touch with their customers.

4. It aids in the projection of newer approaches that will be necessary in
the future to keep up with present events.

5. It enables marketers to understand and assess how change is induced in
real time.

6. It not only enables one to co mprehend what marketers are attempting to
promote, but it also provides insight into what the market requires.

Viral Marketing -
What is the definition of word -of-mouth marketing?
The most powerful media on the earth is Word of Mouth Marketing
(WOMM). It 's the act of two or more consumers giving their thoughts
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161 brand ambassadors. Marketers, CEOs, and entrepreneurs consider it the
golden standard since it has the power to create or ki ll a product. Its
success is due to its honesty and naturalness.

What is viral marketing and how does it work?
Viral marketing is an attempt to spread a marketing message among
consumers fast and exponentially. These days, it's usually in the form of
an email or a video. Viruses aren't bad, contrary to popular belief. It isn't
unnatural or dishonest. It's word -of-mouth enabled at its best, and it's just
another interruptive commercial message at its worst.

Viral marketing is a type of promotion that relie s on the free spread of
ideas through word of mouth. When you like something, it's natural to
want to tell someone you like about it. You enjoy sharing something cool
you've discovered with others, whether it's with friends, relatives, or co -
workers. Those with whom you share something will, in turn, share it with
their network of friends.

The ultimate goal of marketers who want to create successful viral
marketing programmes is to create viral messages that appeal to people
with high social networking pot ential (SNP) and that have a high chance
of being presented and spread by these people and their competitors in
their communications with others in a short amount of time.

Characteristics of viral marketing:
Distribution: Viral material spreads like a vir us, in an ever -expanding loop
that may never stop. Spreading content endlessly from person to person is
a superior way for a web marketer to promote content at a fraction of the
time and cost required by traditional marketing techniques.

Reach: A effectiv e viral marketing campaign can exponentially enhance
the reach of your communications by putting you in touch with thousands
of prospects who would otherwise go unnoticed if you used standard
communication methods.

Awareness:More individuals who see your material will be aware of who
you are, what you do, and what services you can provide to clients. Not
only will you establish yourself as an authority in a given industry by
sharing knowledge on that topic, but people will naturally come to you for
guidanc e and recommendations.

Cost: Viral marketing is reasonably inexpensive because you do not need
to set aside a large budget to promote your products or launch campaigns
that cater to all of your potential clients' wants. When your content goes
viral, your supporters become your most effective marketing agents.

GUERRILLA MARKETING -
It's a marketing approach that focuses on low -cost, non -traditional
marketing tactics that get the best outcomes. Jay Conrad Levinson created
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162 generally referred to as a Guerrilla Marketing guru. Guerrilla marketing is
a word inspired by guerrilla warfare, a type of irregular warfare in which
armed people deploys small strategy methods. Ambushes, sabotage, raids,
and ele ments of surprise are all used in several of these techniques.
Guerrilla marketing, like guerrilla warfare, employs similar methods in the
marketing profession.

Guerrilla marketing is all about surprising the customer, leaving an
indelible impression, and generating a lot of social chatter. In comparison
to more traditional types of promotion and marketing, it leaves a
considerably more positive impact on customers. This is because most
guerrilla marketing efforts want to connect with customers on a more
intimate and memorable basis. Guerrilla marketing has a number of
advantages, one of which is that it is unexpected. It takes a customer off
surprise and elicits an emotional response, such as laughter, astonishment,
or despair. It’s simple to see why marke ters would prefer their customers
didn't know how they're utilising guerrilla marketing. They may simply
cease responding if they are aware of their secrets.

Guerrilla marketing began as a strategy geared at tiny enterprises with
limited resources, but th is hasn't stopped large corporations from adopting
the same philosophy. To supplement their advertising operations, larger
corporations have turned to unusual marketing. Guerrilla marketing
strategies can also be considerably riskier for a large corporatio n. Their
guerrilla stunts can sometimes backfire and turn into a public relations
nightmare. Smaller firms aren't as vulnerable because most people will
dismiss it as another unsuccessful stunt.

Advantages of Guerrilla Marketing:
i. Execution is inexpensi ve: Guerrilla marketing is far less expensive than
traditional advertising, whether it's done with a basic stencil or a large
sticker. Guerrilla marketing offers a significant benefit to small
enterprises on a limited budget.

ii. Makes it possible to thin k creatively: Guerrilla marketing necessitates a
high level of creativity and inventiveness. Originality and never -before -
seen concepts are always beneficial in this form of marketing.

iii. Increases as a result of word -of-mouth: Guerrilla marketing is ma inly
reliant on word -of-mouth marketing, which is often regarded as one of
the most effective marketing tools. It only suits the business's purpose
when individuals start talking about a product/service promotion on
their own.

iv. Publicity has the potent ial to snowball: Some particularly noteworthy
or innovative guerrilla marketing tactics will be picked up by local (and
perhaps national) news outlets, resulting in a powerful PR effect that
marketers lust after.

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163 Cons of Guerrilla Marketing:
i) Involvem ent of the authorities: Some types of guerrilla marketing, such
as no permission public graffiti, might cause authorities to become
irritated.

ii) Unpredicted obstacles: Many guerrilla marketing strategies are
vulnerable to inclement weather, miscalculate d timing, and other little
mishaps that can rapidly derail a whole campaign.

iii) Potential backlash: Businesses that are employing guerrilla marketing
tactics that they don't approve of may be called out by savvy
audiences. This is especially true in co vert marketing campaigns: be
prepared to face the consequences if you're caught.

GREEN MARKETING -
The term 'green' denotes purity in this situation. Green denotes high
quality and fairness or justice in dealings. Green advertising, for example,
refers t o advertising that has no negative impact on society. The term
"green message" refers to facts that have been matured and are free of
hyperbole or ambiguity. Green marketing is a hotly disputed topic among
everyone from laypeople to professionals.

Definit ion:
Definition according to American Marketing Association - "Green
marketing is the marketing of products that are presumed to be
environmentally safe."

The concept of green marketing is concerned with environmental
protection. Many issues have arisen as a result of modern marketing.
Rapid economic growth, mass production using advanced technology, a
comfortable and luxurious life, style, fierce competition, the use of
unhealthy marketing tactics and techniques to attract customers,
exaggeration in adve rtising, liberalisation and globalisation, the creation of
multinational companies, retailing and distribution by giant MNCs, and
other factors all contributed to several other issues.

Department stores, specialty stores, and shopping malls are bursting a t the
seams with both needed and useless items. All of these causes have put
people's well -being and ecological equilibrium at jeopardy. Giant
factories, in particular, have been a source of several pollutions. Many
products have negative environmental con sequences during their
production, usage, and disposal.

Excessive pollution has aroused Nature, causing it to behave in unnatural
ways (in the form of global warming vs. global cooling, copious rains vs.
draught, and other natural disasters such as freque nt earthquakes and
tsunamis, cyclones, diseases, and so on). Economic growth based on
production and consumption endangers human existence on the planet.
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164 environment (nature) by producing, co nsuming, and discarding
environmentally friendly items.

Green marketing is primarily concerned with three aspects:
1. Encourage the creation and consumption of pure/high -quality goods.
2. Dealing with consumers and society in a fair and reasonable manner,
and
3. Protection of ecological environment.

Global ecological imbalance and global warming (also known as global
cooling) have prompted environmentalists, scientists, social organisations,
and concerned citizens to take tangible steps to prevent further
environmental degradation. The World Bank, the SAARC, the United
Nations, the World Health Organization, and other globally powerful
organisations have begun to advocate and implement green marketing.
The world environment conference in Copenhagen (2009) was a huge
event that demonstrated the gravity of the ecological imbalance.

The 5th of June has been declared as World Environment Day to raise
awareness. Green marketing emphasises the protection of customers' and
society's long -term welfare through the development and use of pure,
useful, and high -quality products that have no negative impact on the
environment. The media has begun a crusade to safeguard the
environment from further deterioration. Natural water resources are being
conserved around the wo rld.

As a result, green marketing is a marketing strategy that encourages the
manufacture and sale of pure (environmentally friendly) products while
maintaining ecological balance. Green marketing entails a variety of
actions. Green marketing promotes the creation of pure products using
pure technology, energy saving, environmental preservation, minimal use
of natural resources, and the consumption of natural foods rather than
processed meals. Green marketing refers to people's, social organisations',
businesses', and governments' activities in this area.

Green marketing speaks out against the manufacture, consumption, and/or
disposal of items that affect consumers, society, and the environment in
some way. It is critical that businesspeople and consumers avoid
dangerous items.

Impacts or Importance of Green Marketing:
Green marketing has a good impact on people's health and the
environment. People are aware of pure items as well as pure
manufacturing, use, and disposal procedures. It also fosters collabor ative
efforts for purity in both production and consumption.

1. People are now demanding pure products based on organic farming,
such as edible items, fruits, and vegetables. Vegetarian cuisine is
becoming increasingly popular.

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3. Increased use of herbal items rather than processed foods.

4. Leafs should be used instead of plastic pieces, and jute and cloth bags
should be used instead of plastic carrying bags.

5. Increasing the use of bio -fertilizers (produced from agro -waste and
wormy -composed) rather than chemical fertilisers (i.e. organic farming)
and reducing pesticide use.

6. Efforts to recycle garbage from consumer and industrial items around
the world.

7. More herbal medicines, nat ural therapy, and yoga are being used.

8. Strict safeguards for forests, flora and fauna, as well as pollution -free
rivers, lakes, and seas

9. International bans on the manufacturing and use of hazardous weapons,
as well as atomic tests, etc. Many organi sations from various countries
have drafted provisions to safeguard the ecological balance.

10. Producers' social and environmental accountability should be
emphasised more.

11. Imposing strict pollution control regulations. When giving IS), ISO
9000, or ISO 14000 certificates and other accolades, pollution control
initiatives and eco -technology are taken into account.

12. The 5th of June has been declared as World Environment Day.

13. Strict legislative restrictions on duplication and adulteration.

14. Establishing a number of national and international institutions to
monitor business firms' efforts and actions in regard to pollution
management and the creation of environmentally friendly products.

CHALLENGES IN GREEN MARKETING

Need for Standardizat ion:
It has been discovered that only 5% of marketing statements from "Green"
efforts are totally factual, and there is a lack of standardisation to verify
these claims. There are no standards in place to verify these assertions.
There is currently no norm in place for certifying a product as organic.
There will be no verifiable means unless certain regulatory agencies are
involved in issuing the certifications. For such labelling and licencing, a
standard quality control board is required.

The public is d ubious of green claims to begin with, and if a green claim is
revealed to be incorrect or contradicted by a company's other products or
practises, it can substantially harm a company's brand and sales.
GREENWASHING is the practise of portraying a product o r service as
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166 to save the environment. This isn't correct. As a result, it's a case of
greenwashing.

New Concept :
Due to the different demands, economic situations and political dilemmas,
unhealthy lifestyles, unstable governments, and selfish interests of large
corporate houses/ economy, the concept faces challenges in reaching out
to all. Green products are becom ing more popular among literate and
urban consumers. However, for the general public, it is still a novel
concept. Environmental threats must be taught and made known to the
customer. The new green movements will need to reach out to the
majority, which wi ll require time and effort.

Patience and perseverance:
Investors and corporations must regard the environment as a big long -term
investment opportunity, while marketers must consider the long -term
benefits of the new green movement. It will take a lot of patience and
there will be no quick results. Because it is a novel notion and idea, it will
go through its own time of acceptance.

Avoiding Green Myopia:
The first guideline of green marketing is to concentrate on customer
advantages, or the main reason w hy people buy particular things in the
first place. If you do it well, you may persuade customers to switch brands
or even pay a premium for the greener option. It won't help if a product is
developed that is completely green in every way but fails to meet customer
satisfaction criteria. Green myopia will result as a result of this.
Furthermore, if green products are priced too costly, they may lose market
acceptance.

EXAMPLES OF GREEN MARKETING IN INDIA:

i. Indian Railways' Digital Tickets - The Indian R ailways Catering and
Tourism Corporation (IRCTC) has permitted its customers to carry the
PNR number of their E -Tickets on their laptops and mobile phones.
Customers are no longer required to carry their printed tickets.

ii. No Polythene carry bags for fr ee: -The Forest and Environment
Ministry of India has instructed retail stores such as Big Bazar,
Pantaloons, More, Central, D -Mart, and others to only supply polythene
carry bags to clients who are willing to pay for them.

iii) Wipro's Green Machines: - Wipro InfoTech was the first firm in
India to introduce eco -friendly computer peripherals. Wipro has
introduced Wipro Green ware, a new line of desktops and laptops for the
Indian market. These products comply with the RoHS (Restriction of
Hazardous Substa nces) directive, reducing e -waste in landfills.Wipro's
Green Machines: - Wipro InfoTech was the first firm in India to introduce
eco-friendly computer peripherals. Wipro has introduced Wipro Green
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167 products comply with the RoHS (Restriction of Hazardous Substances)
directive, reducing e -waste in landfills.

DE-MARKETING
De-marketing is a strategy or tool used to lower or limit demand for a
specific product or service, either permanently or temporarily. De -
marketing can be used to lower or eliminate total demand, as well as
specific sorts of demand and applications, in relation to a specific stage of
supply. As a result, de -marketing can be used for both corporate and
public sector objective s. Manufacturers and distributors may occasionally
advertise harmful products to consumers. As a result of this fact, the
government and private sector must apply a de -marketing strategy to deal
with these circumstances.

Efforts aimed at reducing (rather than eliminating) demand for a product
that (1) a company cannot sell in large enough numbers (2) does not want
to supply in a particular region where high distribution or promotion costs
enable only a small profit margin.

For example, many airlines raise ticket prices during peak periods such as
the December holidays, causing consumers who are more price -conscious
to book their vacations during off -peak times.

For example, Indian oil companies (HPCL, BPCL, Indian Oil) do not
advertise much since managing demand at the low price they sell it for
would be difficult. The more fuel they sell (petroleum, diesel, and
liquefied petroleum gas), the greater losses they experience. As a result,
they employ De Marketing tactics.

REMARKETING
According to research, k eeping an existing customer is significantly easier
than finding a new one. It's also budget -friendly. Another intriguing
finding from the research is that customers frequently discover new
aspects or uses of a product/brand that are not advertised.

In re action to diminishing sales, businesses take steps to reintroduce a
product or service to the market. The corporation remarkets the product as
improved in order to rekindle interest and, hopefully, increase sales. For
example, if a newer system is offered in the market, a technology
company may remarket their machine with new features in order to boost
sales. The success of remarketing is determined by what factors caused the
shift in demand and how the organization responds to it.

5.4 SUMMARY

"The creati on, distribution, promotion, pricing, and communication of
things via the entire Internet and the vast array of platforms that make up
the Internet today" is how "e -marketing" is best defined." Unit has been
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168 marketing has changed whole perspective of marketer. Social marketing
now become a word of every mouth its far reach impact could not be
negated, there are advantages as well as disadvantages of the same. Global
trend of marketing has drastically changed. Development of new age
technologies e.g. 5G, metaverse has been widen marketing avenues as
well as challenges so its required more cautious decision about the
selection of best out of the increase choices of marketing tools.

5.5 EXERCISE

A. DESCRIPTIVE QUESTIONS:
Short Answers:
1. Explain Hospitality Marketing Management.

2. Discuss the features of Digital marketing.

3. What are the different types of E -Marketing?

4. Why Technology is considered as an accelerator for today’s business?

5. State the reason for Social Media being the popular mode of Digital
Marketing.

6. Define Social Marketing.

7. Discuss “ Social media marketing is the most cost -effective technique
to implement an advertising strategy”.

8. Write a note on Social media is a crucial tool for networking and
communication

9. What do you mean by Remarketing?

10. Explain - Importance of Green Marketing

Long Answers

1. Discuss the role of E -Marketing.

2. Write a note on Digital Marketing.

3. How technology has impacted the Hospitality Sector?

4. Justify Digital marketing empowers a company or an organization to
market its business globally with a few clicks.

5. Compare the advantages and disadvantages of the E -Marketing.

6. Explain some of the digital marketing trends.

7. What do you mean by Blog? Also discu ss the various types of blogs.

8. What is Viral marketing? Explain its characteristics.

9. Explain the Pros and Cons of Guerrilla Marketing. munotes.in