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In an organization various decisions are made and some are related to the product and the goods that a company manufactures. A good marketing strategy will help in promotion of these products effectively in the market .it is basically a strategy based on how will you satisfy the customer. Marketing strategies are used to improve sales, promote the product, and launch new product and ways to help company generate maximum profits. Marketing strategy helps in determining to choose form various market segments, how and where to position the product and allocation of resources.
The five P's related to marketing mix are product, place, price, packaging and promotion. The company should know as to what product is currently in demand in the market , at what price the product should be made available to the customer and its publicity should be done such that people will get attracted towards the product and that product should be rightly available at right time in the market when its demand is high. Also the product should be packed such that it should appeal the people and they willingly buy the product. This will be more effective when the firm has its own strategy which will define how the firm will help in engaging the customers and how it will face its competitors in the arena of marketing.
All strategies require a proper construction and good implementation of the marketing mix. Guidelines should be used throughout the organization for effective implementation of corporate marketing strategy. It should also include branding of company and its logos. When management at senior level involves in marketing of company's products and services, it is usually identified by the customers as to from which company the product comes from. A good marketing strategy will form base of marketing plan. A plan consists of well defined actions that require to be implemented in a systematic way and should be able to give an overall picture to the audience as to what they want from the company. A strategy includes various actions like advertising, marketing, public relations and publicity which ideally forms the foundation of marketing plan to be able to satisfy the wants and needs of the customer. Not all marketing strategies are same. for any organization who wants to be successful in the market should develop well planned and advanced strategy that when implemented in a successful manner will help in achieving the goal that the company ha set and will in turn help generating profit for the company Depending upon different market situations the strategies will also differ. Strategies are based on dominance of market and how much market share does it hold. The different types of market dominant strategies are:
Innovation strategies: this is basically the ability of the firm to produce new and innovative products that are required by the customer. For this skilled manpower, advanced technology and technical knowledge is required which help the firm produce new and wide range of products. The three type of innovation strategies are
Global financial crisis
In the year 2007-2010, there was a shortfall of liquidity in United States which led to financial crisis. This happened because big financial institutions collapsed, national government had to do bailout for the banks and crashing of the stock market around the world. this was considered as worst financial crisis since great depression of 1930's.major business failed, there was constant fall in wealth of consumer in billions of U.S. dollars because of which all the financial commitments made by the government failed and this resulted in downfall of economic growth and activity.
Global financial crisis affecting companies marketing.
Recession is a phenomenon in which there is a downfall in the demands of raw material, goods and services. Its start, development and end depend upon the methods used by different researchers and various operational measures taken by agencies. for example in united states ,when gross national product falls down for two continuous quarters or when the leading economic indicators fall for 3 constant month at that time it is said that recession has occurred. The marketing managers must try to find what ha gone wrong with its strategies that led to recession and they need to take immediate measures in order to stay profitable and to get good response from the customers. They should either change the strategy or change the target market.
There are many chances that the effect of recession on different companies may differ and this can be because the company operates in different economic environment. This makes it necessary for the marketing managers to take strategic measures to exploit the environment as different companies will be affected in different manner as per their size and sectors in which they operate. The effects of recession on a small scale business include lower revenue, more strict lending conditions or more money required for cost of operation. many companies also fail during recession as they are not able to survive the effects and changes caused by recession while some company take the advantage of the new change in the market , they grow and then flourish.
For example: the backbone of America's economy is small scale business. These businesses generate more employment and because of recession if small business is suffered they are likely to lay off the employees form their work resulting to rise in the rate of unemployment. Some business take the advantage of the situation and flourish more like they change their product line thus adapting themselves to the new changes in the environment.
Normally small scale business will try to cut down on its marketing cost when they hear the news about recession, used for the benefit of the company in making profits or to store away the extra profits generated in times of crisis, this tactic often helps to be useful. many businesses feel that because of recession other business will slow down on its sales, so for them following the current marketing plan will be more better .thus when major business slow down at that time only few of them make effort o survive in the market and they make lot of news in the newspapers and media and they are in the minds of potential customers. in the first half of 2006 when the house prices began to fall at that time financial crisis were triggered and in USA many lenders went bankrupt by march 2007.this caused high arte of unemployment and low generation of revenue, consumer credit in bad debts made the economic situation even more deteriorating. People changed their lifestyle and buying needs in the times of crisis and they were more concerned with their jobs rather than spending a lavish lifestyle.
They thought of saving money and using it wisely. Now if the customers are changing their buying behavior and trying to adapt to the new situation the companied will also have to change their marketing strategies in order to meet the new standards and preference laid down by the customer. For this the companies should develop a proper a strong and concrete plan as to how to reach there. As the environment change even the marketing strategies will change and for this the companies need to find the right kind of strategies with proper marketing mix. The organizations will have to adapt to the new situations and they should have the ability to change fast and thus have a firm grip in the market by strengthening its position.
As a result of this market share will also vary and the company must develop such strategies which give them a firm competitive edge. It aims in how the company will use its strength and its capabilities that will match with the new desire and wants in the market. This strategy should be such that it should have good impact on the people and have a positive response towards the changing market conditions. The market segments should be well defined and the product should be positioned such that it should target the market at the right place. The companies should have their own strategies and not based on the strategies relating to other companies and their events, but they should create new strategies each time new challenges are faced by them. Financial crisis will affect people personally as they will start worrying about what the future will hold for them and they will not enjoy their present. They will think twice before spending huge amount of money on anything even though they can afford it because they become more money minded. They will focus only on the day today goods that to which they can get at much cheaper rates though they will have to compromise on the quality of goods that they use.
Example of company known as Carrefour's marketing strategies in the times of financial crisis
Retailers followed the policy based on private brands and Carrefour's policy was very much effective even in the times of crisis. The promotions offered were:
Buy back - new electrical products can be purchased in exchange of the old product given for recycling to the company.
Cross promotions - the clients would sell off the products that are not much necessary. Promotions will reach their objectives if they offered to the clients by the means of supermarket their various innovative ideas will be used to sell product whose sale is less. For example buy 2 get 1 free or some combo offers or scratch card offers etc.
When financial crisis occurs it affects people financially in the form of less money available to use and psychologically in the form of stress and tension as to what the future will hold without money. When going for shopping people will switch over to cheaper brands of goods even though they have money and this money they will use only to buy products of daily necessities. During recession, companies use different types of marketing strategies. One is maintaining a standard quality of the products by charging high range products with normal and minimum price. In this way the market share will also remain stable and the company will adapt to the new changes in the market. Whenever there are economic crisis, a proper communication with the customer is important and that to in the right ay in order to satisfy the customer. The company should be able to create trust and win confidence of the people by giving them the product hat they have promised to the customer with right quality and right price.
The result of this study is to show that the company must be well prepared with its strategies with a proper marketing mix such that even in the times of crisis the company should have the ability and capacity to change with the change in the environment along with the ability to satisfy the customers with the product they want with good quality and right price. Only the company that can change with the changing times can survive against all odds and can stabilize itself in the market.