Ms Farha Hassan Lecture - 1

What is a Market? What are the types of Markets? Resource, Govt, Consumer, Manf, Intermediary What is Marketing? Identifying and meeting human and social needs Meeting needs profitably What can be Marketed?

What is a Strategy? "Strategy is the direction and scope of

an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations". Johnson and Scholes

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage

There are four types of market dominance strategies: Leader Challenger Follower Nicher

(Cars, handsets, etc)

Serves as an instrument for value delivery (value selection, creation and

communication)

Realises the units marketing objectives (Dabur foods) Realises the units targeted income and profit

What position the unit will seek in the industry?

 GE Capital / market leader

What markets to serve and product offers are to be made?

 ICICI / urban, Nokia / mobile for all, etc

Who are the firms competitors?  Who to compete with and whom to avoid?
 Ford GM / Ford Maruti

What is the growth path?

 Market penetration?  Market development?  Product development?

 What is the growth path of Maruti

Udyog ?  What is the growth path of Microsoft?

On what differentiation strength to compete?

 Product superiority  Brand power  Attractive price  Distribution strength  Service

On what competitive advantages will the fight be based?

 Videocons heavy IMF

What are the resources?

 Money, people and facilities

ST P

Marketing Mix

segmenting

targeting

positioning

Maruti Zen Hyundai Santro pg 176,Ramaswamy Wagon R , pg 184

Price oriented

Differentiation oriented

Blend of both

A firm opting for the price route should be enjoying an overall cost leadership in the given industry The lower cost should enable it to secure above average returns
Maruti 800

What are the down sides of this strategy??

A firm seeks to be unique in some dimensions valued by the buyers It selects one or more attributes that buyers perceive as important and positions itself uniquely to meet those attributes Different possibilities  Strategies with emphasis on
Product Place Promotion Pack size Service Experience

Correct sizing up of competitive forces Possession of relevant competitive strategies Price and differentiation routes cannot remain mutually exclusive The firm has to be value competitive