What is Marketing : The word Marketing in narrow sense is used as the sum up of selling process. Now a days marketing is considered as managing profitable customer relationships. Hence, we define marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Here the figure
1. 1 presents a simple five step model of the marketing process. In the first four steps companies work to understand consumers, create customer value and build strong customer relationships.
In the final step companies reach the reward of creating superior customer value. By creating value for customers , they in turn capture value from customers in the form of sales, profits, and long term customer equity. In the face of today’s changing business , to success , this expand model of marketing is very much helpful. All steps of this marketing process is important. As a first step, marketers need to understand customers needs and wants and the market place within which they operate.
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Once its fully understood , consumers and marketplace, Marketing management design a customer driven marketing strategy. In the next steps, marketers construct a marketing program that actually deliver superior value through building profitable customer relationships by capturing value from customers. Here we will focus on customer driven marketing strategy of launching a product or service.
Customer – driven marketing strategy and marketing management orientations that guide marketing strategy: To design a winning marketing strategy , the company must first decide who it will serve.
It does this by dividing the market into segments of customers(market segmentation) and selecting which segments it will cultivate(target marketing). Next , the company must decide how it will serve targeted customers(how it will differentiate and position itself in the marketplace). Marketing management wants to design strategies that will build profitable relationships with target consumers. There are five alternative concepts under which organizations design and carry out their marketing strategies. These are :-
- Product concept
- Selling concept
- Marketing concept
- Social marketing concept roduction concept
The philosophy that consumers will favor products that are available and highly affordable, and that management should therefore focus on improving production and distribution efficiency product concept: The idea that C'l will favor products that offer the most quality, performance and features, and that the organisation should therefore, devote its energy to making continuous produce improve merits selling concept: The idea that consumers will not buy enough of the organisation's products unless the organisation undertakes large-scale selling and promotion effort arketing concept .The marketing management philosophy which holds that achieving organizational goals depends on determining the needs and wants qf target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. societal marketing concept: The idea that the organization should determine the need, want and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a ay that maintains or improves the consumer's and society's well-being.
There is no hard and fast rule to strictly follow any particular concept. These concept are followed by different companies as their convenience as their business mission. This may vary for different companies beside some companies may follow the combination of these orientation. Marketing mix The set of controllabletactic-id marketing tools- product, price, place and promotion - that tlivfirm blends to producethe response it wants in che target market 'functional chewing and bubble gums'
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want. It includes physical objects, persons organizations and ideas, price. The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service. place. All the company activities make the product or service available to target customers. promotion Activities that communicate the product or service and its 'merits to target customers a persuade them to buy.
The SWOT analysis section draws from the market audit. It is a brief list of the critical success factors in the market, and rates strengths and weaknesses against the competition. The SWOT analysis should include costs and other non marketing variables. The outstanding opportunities and threats should he given. If plans depend upon assumptions about the market, the economy or the competition. SWOT analysis draws the critical strengths, weaknesses, opportunities and threats (SWOT) from the strategic audit.
The audit contains a wealth of data of differing importance and reliability. SWOT analysis distils these data to show the critical items from the internal and external audit. The number of items is small for forceful communications, and they show where a business should focus its attention. The STP Process The growing use of the STP process has occurred as a direct result of the prevalence of mature markets, the greater diversity in customer needs, and the ability to reach specialized or niche segments.
As such marketers are increasingly segmenting markets and identifying attractive segments (i. e. who to focus on and why? ), in order to identify new product opportunities, develop suitable positioning and communications strategies (i. e. what message to communicate), and effectively allocate resources to key marketing activities (i. e. how much should we spend and where? ). Organizations will often commission segmentation research when they want to re-scope their marketing strategy, investigate a declining brand, launch a new product, or restructure their pricing policy.
Organizations operating in highly dynamic environments seek to conduct segmentation research at regular intervals, to keep in touch with changes in the marketplace. STP refers to the three activities segmentation, targeting, and positioning Key benefits of the STP process include:
- Enhancing a company’s competitive position by providing direction and focus for marketing strategies such as targeted advertising, new product development, and brand differentiation. For example, Coca-Cola identified through market research that its Diet Coke brand (also marketed as Coca-Cola Lite) was egarded as ‘girly’ and ‘feminine’ by male consumers. As a direct result the company developed a new product, branded Coke Zero, which is targeted at the health-conscious male segment of the soft drinks market.
- Examining and identifying growth opportunities in the market through the identification of new customers, growth segments, or new product uses. For example Arm & Hammer was able to attract new customers when existing consumers identified new uses for their baking soda (Christensen, Cook, and Hall, 2005).
Lucozade also changed the positioning and targeting from its original marketing strategy positioned for sick children and rebranded to target athletes as an energy drink.
- More effective and efficient matching of company resources to targeted market segments promises the greatest return on marketing investment (ROMI).
For example, financial institutions like HSBC and Barclays and large retailing multinationals such as Tesco and ASDA Wal-Mart are utilizing data-informed segmentation strategies to effectively target direct marketing messages and rewards to customers they have classified as offering long-term value to the company, i. . they are profitable customers. Market Create values for customers and build customer relationship An expanded model of the marketing process Marketing Strategy Target consumers are at the centre of the marketing strategy. The company identifies the total market, divides it into smaller segments, selects the most promising segments and focuses on serving them. It designs a marketing mix using mechanisms under its control: product, price, place and promotion.
The company engages in marketing analysis, planning, implementation and control to find the best marketing mix and to take action. The company uses these activities to enable it to watch and adapt to the marketing environment. We will now look briefly at e;ieh factor in the marketing process and say where it is developed elsewhere in this book. The Concept of Market Segmentation Market segmentation is the division of a market into different groups of customers with distinctly similar needs and product/service requirements.
Or to put it another way, market segmentation is the division of a mass market into identifiable and distinct groups or segments, each of which have common characteristics and needs and display similar responses to marketing actions. Market segmentation was first defined as ‘a condition of growth when core markets have already been developed on a generalised basis to the point where additional promotional expenditures are yielding diminishing returns’ (Smith, 1956). There is now widespread agreement that they form an important foundation for successful marketing strategies and activities (Wind, 1978; Hooley and Saunders, 1993).
The purpose of market segmentation is to leverage scarce resources; in other words, to ensure that the elements of the marketing mix, price, distribution, products and promotion, are designed to meet particular needs of different customer groups. Since companies have finite resources it is not possible to produce all possible products for all the people, all of the time. The best that can be aimed for is to provide selected offerings for selected groups of people, most of the time.
This process allows organizations to focus on specific customers’ needs, in the most efficient and effective way. As Beane and Ennis (1987) eloquently commented, ‘a company with limited resources needs to pick only the best opportunities to pursue’. The market segmentation concept is related to product differentiation. If you aim at different market segments, you might adapt different variations of your offering to satisfy those segments, and equally if you adapt different versions of your offering, this may appeal to different market segments.
Since there is less competition, your approach is less likely to be copied and so either approach will do. Market consists of buyers and buyers differ in one or more ways. They may differ in their wants ,resources, locations, buying attitudes and buying practices. Through market segmentation , companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products services that match their unique needs.
In this section we discuss four important segmentation topics: segmenting consumer markets, segmenting business markets, segmenting international markets, and requirements for effective segmentation. Segmenting Consumer Markets There is no single way to segment a market. A marketer has to try different segmentation variables, alone and in combination, to find the best way to view the market structures.
By going after segments instead of the whole market, companies can deliver the just the right value proposition to each segment served and capture more value in return. Requirements for Effective Segmentation: Clearly, there are many ways to segment a market, but not all segmentations are effective. For example, buyers of table salt could be divided into blond and brunette customers. Target Markets The second important part of the STP process is to determine which, if any, of the segments uncovered should be targeted and made the focus of a comprehensive marketing programme. Ultimately, managerial discretion and judgement determines which markets are selected and exploited and which others are ignored.
Kotler (1984) suggested that in order for market segmentation to be effective, all segments must be: • Distinct—is each segment clearly different from other segments? If so, different marketing mixes, to use the traditional approach to marketing, will be necessary.
Accessible—can buyers be reached through appropriate promotional programmes and distribution channels? • Measurable—is the segment easy to identify and measure?
Profitable—is the segment sufficiently large to provide a stream of constant future revenues and profits? This approach to the evaluation of market segments is often referred to by the DAMP acronym, making it easier to remember.
Another approach to evaluating market segments uses a rating approach for different segment attractiveness factors, such as market growth, segment profitability, segment size, competitive intensity within the segment, and the cyclical nature of the industry (e. g. whether or not the business is seasonal, e. g. retailing, or dependent on government political cycles as some large-scale defence contracts are). Each of these segment attractiveness factors is rated on a scale of 0–10 and loosely categorized in the high, medium, or low columns, based on either set criteria, or subjective criteria, dependent on the availability of market and customer data and the approach adopted by the managers undertaking the segmentation programme. [pic] ? Six steps in market segmentation, targeting and positioning
Differentiation & Positioning Strategies Marketers can follow several positioning . strategies. These strategies use associations to change consumers' perception of products. Product attrilmtes position many technical products. The positioning of Ericssons EH237 mobile phone is its Low weight and number $ features, while much of BMW's advertising promotes individual technical items- like fresh air filters. In the exclusive watch market Breitling. Baume & Mercier and Audemars Piguet's positioning are on their mechanical movements. Some of their designs leave the mechanisms exposed and one ad argues 'Since 1735 there has never been a quartz Rlanepain. And there never will be. '
The benefits they offer or the needs they fill position many products - Crest toothpaste reduces cavities. Aim tastes good and Macleans Sensitive relieves the pain of sensitive teeth. In the confectionery industry, Italian Gaci and Ferrero Rocher are gifts, while Mars and Snickers bars satisfy hunger. Huhtamaki is Finland's largest industrial company but LEAF, its confectionery division, is only ten in size worldwide. It developed competitive advantage Marketing Services to remain flexible has also led to firms hiring services that provide use without ownership. Finally, an increasing number of firms are keen to focus on their core competences.
They are beginning to contract out non-core activities, such as warehousing and transportation, thus stimulating the growth of specialist business service organizations. All these developments have, in turn, led to a growing interest in the special problems of marketing services. Brand Positioning: Marketers need to position their brands clearly in target customers minds. They can position brands at any of three levels. Branding poses challenging decision. *Sample of marketing strategy of stock market consulting firm Finance Hauler Lead life less tension Our company is an service providing company. The goal of our company is to provide service , provide information about stock market in exchange of a particular fee. Ours is an unique company, so far.
We are targeting specific segments in the consumers and business markets, taking the opportunity of current situation of stock market. The primary objective is to serve in Rajshahi, shaheb bazaar, then it will be scattered in the whole country, where broker houses stands. In business there is a chance of loss and also profit, we will try to make profit from the first year. Question may arise why this type of consultancy firm? The answer is the present condition of stock market. The main reason behind this is lack of proper knowledge about stock market. Investors doesnt know where to invest and when to invest. Our duty is to make him clear. As Bangladesh is a capital deficiency country, so the capital we have need to invest properly.
As we are the student of Finance & Banking , our duty is to analyze the stock market, that’s why we have planned to open such type of firm. At present some brokerage house & ICB some provide information to their investors un officially. These informations are not so profitable. But there is no specialized firm who provide proper information about stock market, that’s why we intended to open such a consulting firm. By describing the targeted segments in detail, it can be said that our firm will satisfy the customers need, want, and their demand , as we have planned to scatter it in the every city of Bangladesh. Bangladesh is a capital defficiency country.
As peoples save less consumption more , so we need to invest the savings into right sector, We will provide information to invest in the profitable sector. So at a time the economy of Bangladesh will be increased. The standard of living of common people will be raised. The growth and development of our country will be accelerated. As we will open a firm we need specialised employees by recruiting whom we will help them to lead a better life. Features of our service : A product or service need three characteristics 1. Unique 2. Price 3. Availability According to these characteristics our service or product is perfect. Its unique.
By our effort and efficiency it will be available in the whole country after a year or two year, As it is a era of globalization , anyone can get our service by using internet or telephone service from anywhere. We will take a minimum fee for registration and membership which will be easy to pay by the clients. Marketing planning aims and objectives Behind the corporate objectives, which in themselves offer the main context for the marketing plan, will lie the "corporate mission," which in turn provides the context for these corporate objectives. In a sales-oriented organization, the marketing planning function designs incentive pay plans to not only motivate and reward frontline staff fairly but also to align marketing activities with corporate mission.
This "corporate mission" can be thought of as a definition of what the organization is, of what it does: "Our business is …". This definition should not be too narrow, or it will constrict the development of the organization; a too rigorous concentration on the view that "We are in the business of making meat-scales," as IBM was during the early 1900s, might have limited its subsequent development into other areas. On the other hand, it should not be too wide or it will become meaningless; "We want to make a profit" is not too helpful in developing specific plans. Abell suggested that the definition should cover three dimensions: "customer groups" to be served, "customer needs" to be served, and "technologies" to be used.
Thus, the definition of IBM's "corporate mission" in the 1940s might well have been: "We are in the business of handling accounting information [customer need] for the larger US organizations [customer group] by means of punched cards [technology]. " Perhaps the most important factor in successful marketing is the "corporate vision. " Surprisingly, it is largely neglected by marketing textbooks, although not by the popular exponents of corporate strategy - indeed, it was perhaps the main theme of the book by Peters and Waterman, in the form of their "Superordinate Goals. " "In Search of Excellence" said: "Nothing drives progress like the imagination. The idea precedes the deed. If the organization in general, and its chief executive in particular, has a strong vision of where its future lies, then there is a good chance that the organization will achieve a strong position in its markets (and attain that future). This will be not least because its strategies will be consistent and will be supported by its staff at all levels. In this context, all of IBM's marketing activities were underpinned by its philosophy of "customer service," a vision originally promoted by the charismatic Watson dynasty. The emphasis at this stage is on obtaining a complete and accurate picture.
Needs and corresponding features/benefits of Finance Hauler :
- Targeted segment
- Customer need
- Corresponding feature
- Time saving and Holiday scheme
Usually professionals are busy so they need time less consuming scheme and information, (consumer market) and in holiday they will get informations. . Students have less money so they need fast moving but less price share information, as | |Students |. Seminar and money saving |they know less they will get free seminar discussion. |(consumer market) |scheme . Lazy money investment scheme . They need to secure their retirement pension money, from which they will get fast profit Retired person | |and stable market. |(consumer market) . Special scheme . Women are totally unaware about stock market but they can make a great contribution in Women country economy by investing their small savings into stock market.
We have a special | |(consumer market) | |scheme and care for women. | Competitive review: As our firm is new and unique, so far no competitor in our sector. This type of business is unavailable in our country. At future there may be competitor but now no one. Distribution review : Distribution review needs distribution channels for a product. As our service is unique so there is no better distribution channel. We have to advertise through television , radio , news paper etc. And most importantly through brokerage house. We will distribute handbills and posters.
SWOT analysis: Strengths :
- Our strengths depends on the followings
- Innovative service
Pricing Weakness :
Weakness are internal elements that may interfere with the company’s ability to achieve its objectives. The weakness of our firm is only the brand awareness.
- Increased public demand
- Lower technology cost.
At present no competitor so far but near future there may be competitor then there will rise our threat.
Short run objectives :
- First we will open our firm in Rajshahi to provide service.
- Try to increase member
- Profit maximization
Long run objectives :
- Scatter our services all over the country
- Wealth maximization Issues : In relation to the service launch; issue is the ability to establish a well regarded brand name linked to a meaningful positioning.
We must invest heavily in marketing to create a memorable and distinctive brand image projecting innovation, quality and value. Marketing Research & Development: In this segment how marketing research will be used to support development, implementation and evaluation of strategies and action programs. As our service on stock market, we mainly focus on capital market, economic conditions, performance of companies’ research & development. Action programs: Action programs should be coordinated with the resources and activities of other services. The first action is to know about the capital market to the people. Then make a positive concept about stock market and how to gain in the market in short run and long run. Budgets:
Budgets serve two main purposes: one is to project profitability and another to help managers plan for expenditures ,scheduling and operations related to each action program. In our services We need a flat for our office purchasing furniture, equipments and other elements.
Controls help management assess results after the plan is implemented identify any problems or performance variations and initiate corrective action. We are developing contingency plans to address fast-moving, new technology and new competition. Build profitable relationships and create customer delight Construct an integrated marketing program that delivers superior value Design a customer-driven marketing strategy
Understand the market place and customer needs and wants Customer relationship management: build strong relationships with chosen customers Product and service design: build strong brands Select customers to serve market segmentation and targeting Research customers and the marketplace Pricing: create real value Manage marketing information and customer data Decide on a value proposition: differentiation and positioning Customer relationship management build strong relationships with chosen customers Distribution: manage demand and supply chains Partner relationship management: build strong relationships with marketing partners Promotion: communicate the value proposition
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