"Marketing Strategy is a long term plan for achieving a company’s goals by understanding the needs of customers and creating a distinct and sustainable competitive advantage.” Goals indicate what a business unit wants to achieve, strategy is a game plan for getting there.

1. UNIT 2
MARKETING STRATEGY
Rhema Joy Sharath

2. MARKETING STRATEGY
“Marketing Strategy is a long term plan for achieving a
company’s goals by understanding the needs of
customers and creating a distinct and sustainable
competitive advantage.”
Goals indicate what a business unit wants to achieve,
strategy is a game plan for getting there.

4. ELEMENTS OF MARKETING STRATEGY
Focus on Real customer
Establish marketing goals: Set practical objectives
Differentiating factors: Uniqueness – Find your niche
Clear Target
Strong message
Brand identity

5. MARKETING STRATEGY FORMULATIONS
Segmenting the market
Selecting the target market
Positioning the offer
Assembling the marketing mix

6. KEY DRIVERS OF MARKETING STRATEGIES
Competition
(Brand, Product,
Generic, Total
budget)
Economic growth
and stability
Political trends
Legal and
regulatory issues
Technological
advancements
Socio-cultural
trends

7. Essentials of Marketing Strategy
 Consistent
 Workable
 Suitable
 Non-risky
 Resource based
 Time Horizon

8. ANSOFF MATRIX
The company first considers whether it could gain more market share with its current products in their current
markets, using a market-penetration strategy. Next it considers whether it can find or develop new markets for its
current products, in a market-development strategy. Then it considers whether it can develop new products of
potential interest to its current markets with a product-development strategy. Later the firm will also review
opportunities to develop new products for new markets in a diversification strategy.

9. ANSOFF MATRIX

10. MARKET LEADER STRATEGIES
Expand the total market
strategy
Defending market share strategy
Expanding the market share
strategy

11. EXPAND THE TOTAL MARKET STRATEGY
The market-leader firms can gain the maximum when the total market expands. The focus of
expanding the total market depends on where the product is in the maturity stage.

12. DEFENDING MARKET SHARE STRATEGY
• Occupying the most desirable position in consumers’ mind and building
fortifications around that position.
Position defence
• An area where the company has yet to establish a strong position.
Flanks are the weaker regions and are prone to being attacked.
Flanking defence
• Company decides to attack competitors before it is attacked by them.
• For ex: TITAN launched more brands and sub-brands called Insignia
Collection.
Pre-emptive defence

13. DEFENDING MARKET SHARE STRATEGY
• Responding to competitors’ head-on attack by identifying the attacker’s weakness and then
launch a counter attack.
Counter-offensive defence
• This strategy involves the leader’s broadening and expanding its territories into new market
areas by diversifying. The leader takes innovation into new market areas by diversifying.
• E.g.: When ITC acknowledged growing curbs on cigarette smoking, they moved into FMCG
products.
Mobile defence
• The leader decides to give up weaker territories and reassigning resources to stronger ones.
• Eg: India’s TATA Group sold its soaps and detergents business units to Unilever in 1993
Contraction defence

14. EXPANDING THE MARKET SHARE STRATEGY:
Market leaders can improve their profitability through increasing their market shares. Market leaders are
successful at expanding their market shares through
• Heavy advertisements
• Improved distribution
• New products
• Mergers, takeovers, alliance etc.

15. Frontal Attack
Flank attack
Encirclement attack
MARKET CHALLENGER
STRATEGIES (offensive)
Bypass attack
Guerrilla attack

16. Frontal Attack: The firm launches direct attack against
the opponent on its strength
Flank Attack: Attack the enemy at its weak points or
blind spots
Encirclement attack: Attack the enemy at many fronts
at the same time
Bypass attack: An indirect attack by a challenger that
avoids opponents on direct fronts
Guerrilla attack: Consists of waging small, intermittent
hit-and-run attacks to harass and demoralize the
opponent and eventually seek permanent footholds.

17. MARKET-FOLLOWERS
STRATEGIES
Following Closely (Counterfeiter)
Follower appears to be challenger in many respects, but
doesn’t muster too great an effort so as to block direct
conflict.
Following at a distance (Cloner)
Follower parallels the leader’s general price levels,
product innovations and distribution at a distance
without thread to challenger.
Following selectively (Imitator)
Follower follows the leader quite closely in some ways, goes
its own way in other instances, and sometimes chooses not
to participate at all.
Adapter
Follower takes the leader’s products and adapts and
improves them

18.  Goal is to be a large fish in a small pond rather than the other way around
 Smaller firms can avoid larger firms by targeting smaller markets or niches that are of little or no interest to
the larger firms
 Intimately know their customers and better meet their needs
 Channel specialist - large size distribution network
 Service specialist - one or more services not available from other companies
 Product feature specialist- certain type of product or product features
 Product line specialist - only one product
 Geographic specialist - certain locality, region or area
 Specific Customer specialist - one or few major customers
 Customer size specialist - (Small or medium or large-size)
NICHERS STRATEGY

19. Rivalry Strategies
• Cost leadership Strategy
• Differentiating Strategy
• Product Flanking Strategy
• Confrontation Strategy
• Defensive Strategy
• Offensive Strategy
• De-marketing Strategy
• Remarketing Strategy
Growth Strategies
• For Existing Markets: Market
penetration, Product
Development
• Vertical integration (backward
and forward)
• Horizontal Integration
(acquisition, merger)
• For New Markets: Market
development, Market
Expansion, Diversification
(concentric, horizontal,
conglomerate)
Consolidation Strategies
• Retrenchment (reduce size)
• Pruning (reduce variety)
• Divestment (redirect)
• Liquidation (closure)
OTHER STRATEGIES

20.  Product Strategies
 Branding Strategies
 Brand Image
 Distribution Strategies
 Media Strategies
 Sales promotion Strategies
 Price Strategy
FUNCTIONAL STRATEGIES

21. COMPETITOR
ANALYSIS
Utilizing that information to
forecast the behaviour of
competitors.
COMPETITOR ANALYSIS is
a process of evaluating the
strengths and weaknesses
of present and potential
customers.
Attaining information
regarding the main
competitors

22. FORMS OF
COMPETITION IMMEDIATE OR
DIRECT
COMPETITION
RELATED OR
INDIRECT
COMPETITION
UNRELATED OR
BUDGETED
COMPETITION

23. COMPETITOR ANALYSIS FRAMEWORK
COMPETITOR’S
OBJECTIVES
COMPETITOR’S
ASSUMPTIONS
COMPETITOR’S
CURRENT
STRATEGY
COMPETITOR’S
RESOURCES
AND
CAPABILITIES

24. PORTER’S FIVE FORCE MODEL FOR COMPETITIVE
ANALYSIS

25. STEPS IN COMPETITOR ANALYSIS

26. BENEFITS OF COMPETITOR’S ANALYSIS
i. Identifies Competitive Information
ii. Provides Motivation
iii. Chooses Motivation
iv. Reveals hidden opportunities
v. Strategy implementation

27. INDUSTRIAL MARKETING (B2B)
 The marketing of products, services or solutions to firms like large organisations, government bodies
and other institutions is called industrial marketing.
 Industrial goods are defined as “those goods which are destined to be sold primarily for use in
producing other goods or rendering services as contrasted with goods destined to be sold
primarily to the ultimate consumers”
 They could be raw materials, manufactured items, equipments, spare parts, consumable supplies,
Industrial services etc.

28. TYPES OF INDUSTRIAL MARKET

29. INDUSTRIAL MARKETING
6 7 8 9 10
Buying is a
Group process
(rational buying
motive)
Supplier’s
reputation
Awareness of
Marketing process
Leasing is possible Short distributive
Channels
CHARACTERISTIC
S
1 2 3 4 5
Derived / Inelastic
Demand
Price-quality-
service mix
Few buyers
And massive
buying
Concentrated
Geographical
area
Vertical or
Horizontal
markets

30. PARTICIPANTS IN B2B BUYING PROCESS

31. IMPORTANCE OF ANALYSING INDUSTRIAL MARKET
ANALYSING
PERFORMANCE
• Major share of
revenue
• Less
expenditure
• Eg: Steel
TARGETING AND
POSITIONING
• Avoid wrong
target market
IDENTIFYING
O&T
• Opportunities
and threats
• Less
promotional
efforts
• Permanent
customers
INTERNAL
ANALYSIS
• Internal
marketing

32. STRATEGIES FOR INDUSTRIAL MARKETING
Segmentation and targeting
Porter’s model
Managing Buyer Relationship
Buyer Evaluation
Communication process or information flow
Relationship values
C.Negotiating a deal Tendering
Marketing intelligence
Customer Intelligence
Competitor Intelligence
Market Intelligence
C.Managing Payments

33. CONSUMER MARKETING (B2C)
 Consumer marketing targets every household and individual who acquires or purchases a particular
product or service for his/her own consumption and not meant for further sale.
 Consumer Goods are destined for use by ultimate consumers or households and in such form that they
can be used without commercial processing.
 They could be FMCG products, durable/non-durable goods, cosmetics, electronics, clothing, vehicle,
services etc.

34. CONSUMER MARKETING
6 7 8 9 10
Directly sold to
consumers –
Transaction
methods
Shifts in buying
powers
Long chain of
Distribution
Less capital and
window dressing
Constant threat
from change in
fashion
CHARACTERISTIC
S
1 2 3 4 5
Primary / elastic
demand
Large- Scale
Production,
Variety of products
Widespread area
and small
purchases
Huge number of
buyers and sellers
Horizontal
markets

35. Importance of analysing Consumer Market
• Performance evaluation of the product
• Making future predictions/decisions
• Product line/mix decisions
• New Product development (NPD)

36. STRATEGIES FOR CONSUMER MARKETING
Identifying
appropriate
pricing
Marketing
product
or service
Relationship
marketing
Create place
strategy
Develop
Promotion
Strategy
Undercover
and scarcity
marketing
Extraordinary
USP

37. PROMOTION STRATEGIES
a. Advertising
b. Public Relations
c. Events
d. Direct marketing
e. Internet marketing
f. Word-of-mouth
g. Affiliate marketing and alliances
h. Publicity campaigns
i. Online Advertising strategies
j. Publicity campaigns

38. DIFFERENCE BETWEEN INDUSTRIAL AND CONSUMER
MARKET

41. Service marketing
• A service is an act or performance that one party can offer to another
that is essentially intangible and does not result in the ownership of
anything. It’s production may or may not be tied to a physical product.
• Kinds of services
• Personal services (painting, domestic)
• Facility services (car, theatre)
• Business Services (consultancy)
• Customer Services (laundries, hotels)

42. Categories of Service Mix
Pure tangible good
Tangible good with
accompanying
services
Hybrid
Major services with
accompanying minor
goods and services
Pure service

43. Marketing excellence with services requires excellence in three
broad areas: external, internal, and interactive marketing.
• External marketing describes the normal work of preparing,
pricing, distributing, and promoting the service to customers.
• Internal marketing describes training and motivating
employees to serve customers well. The most important
contribution the marketing department can make is arguably to
be “exceptionally clever in getting everyone else in the
organization to practice marketing.”
• Interactive marketing describes the employees’ skill in
serving the client. Clients judge service not only by its technical
quality but also by its functional quality.

44. Nature of Services marketing
1 2 3 4 5
Intangible
(Providing tangibility
to the intangibility)
Low price
sensitivity
No inventory Value creation
process
Customer co-
production
6 7 8 9 10
Inseparability Perishable and
fluctuating Demand
Absence of certain
marketing
functions
Highly
Differentiated /
Lack of
Standardization
Long term
Customer
Relationship

45. Providing tangibility to the intangibility
• Visualisation
• Association
• Physical Representation
• Documentation
• Selling Services
• Tangibilising services through benefits
• Tangibilising through positioning

46. Marketing mix for services
• Marketing should occur at all levels
• Establish direct contact with the customers
• Use high-quality personnel for marketing job
• Creation of loyalty
• Ensure quick resolving of problems
• Brand the services offered
• Provision of improved services at lower cost

47. 7 P’s of services
marketing

48. Methodology of services marketing
• SERVQUAL: SERVQUAL stands for Service Quality, and it is a model that measures
the gap between customer expectations and perceptions of service quality. It was
developed by Parasuraman, Zeithaml, and Berry in 1988, and it consists of 22 items
that cover five dimensions of service quality: reliability, responsiveness, assurance,
empathy, and tangibles (RATER). The model assumes that service quality is a function
of the discrepancy between what customers expect and what they receive, and that
higher gaps indicate lower quality. SERVQUAL can help e-commerce businesses
identify the areas where they need to improve their service delivery and meet or
exceed customer expectations.
SQ = P − E
where;
SQ is service quality
P is the individual's perceptions of given service delivery
E is the individual's expectations of a given service delivery

49. 5 factors
1. Reliability—The ability to perform the promised service dependably and accurately.
2. Responsiveness—Willingness to help customers and provide prompt service.
3. Assurance—The knowledge and courtesy of employees and their ability to convey trust and
confidence.
4. Empathy—The provision of caring, individualized attention to customers.
5. Tangibles—The appearance of physical facilities, equipment, personnel, and communication
materials.

51. THE SERVQUAL MODEL

52. 5 gaps
1. Gap between consumer expectation and management perception
2. Gap between management perception and service-quality specification
3. Gap between service-quality specifications and service delivery
4. Gap between service delivery and external communications
5. Gap between perceived service and expected service

54. SERVPERF
SERVPERF stands for Service Performance, and it is a model that measures the customer
perceptions of service quality. It was proposed by Cronin and Taylor in 1992, and it is based on the
same 22 items and five dimensions as SERVQUAL, but it does not consider customer expectations.
The model assumes that service quality is a direct reflection of service performance, and that higher
perceptions indicate higher quality. SERVPERF can help e-commerce businesses evaluate the
effectiveness of their service delivery and enhance customer satisfaction.

55. Importance of Service Marketing
• Helps building Relationships
• Assists in Affecting Customer’s Perception
• Involves Customer’s Feedbacks
• Helps in differentiating the service organisation
• Offers higher customer retention

56. Challenges in Service Marketing
CREATING A NEED
EXTRA COMPETITION
MARKETING
INTANGIBLES
MAINTAINING
QUALITY
EMPHASIZING
SERVICE
INSTEAD OF
FEATURES
DEVELOPING
TRUST
PASSION
MOMENTUM
BETWEEN
MARKETING
AND SALES

57. BASIS FOR COMPARISON PRODUCT MARKETING SERVICE MARKETING
Meaning Product marketing refers to the process in
which the marketing activities are aligned to
promote and sell a specific product for a
particular segment.
Service marketing implies the marketing of
economic activities, offered by the business to
its clients for adequate consideration.
Marketing mix 4 P's 7 P's
Sells Value Relationship
Who comes to whom? Products come to customers. Customers come to service.
Transfer It can be owned and resold to another party. It is neither owned nor transferred to another
party.
Returnability Products can be returned. Services cannot be returned after they are
rendered.
Tangibility They are tangible, so customer can see and
touch it, before coming to the buying decision.
They are intangible, so it is difficult to promote
services.

58. Separability Product and the company producing it, are
separable.
Service cannot be separated from its
provider.
Customization Products cannot be customized as per
requirements.
Services vary from person to person, they
can be customized.
Imagery They are imagery and hence, receive quick
response from customers.
They are non-imagery and do not receive
quick response from customers.
Quality comparison Quality of a product can be easily
measured.
Quality of service is not measurable.