Developing A Marketing Strategy Marketing Essay

1.0 Introduction

The purpose of this assignment is to investigate as a marketing manager that what is marketing & what is the process involved in developing market strategies .So we will also try to find out what are the different options available in developing marketing strategies .Marketing itself can be defined as group of customers, consumers, clients and the distinction between want and need, from the perspective of Product and service functionality, dependence and performance Perception, ownership and use Value and meaning Branding, brand value and competitive advantage Marketing communications Projection of ideas and concepts to target markets.So throughout the assignment as marketing manager we will try to find out how to develop marketing strategies.

Developing a marketing strategy

The development of marketing strategy is very demanding and exciting task .So developing product market strategy is also more challenging because it includes the development of new product & its launching into market.

Marketing itself can be defined as group of customers, consumers, clients and the distinction between want and need, from the perspective of Product and service functionality, dependence and performance Perception, ownership and use Value and meaning Branding, brand value and competitive advantage Marketing communications Projection of ideas and concepts to target markets.(Elsevier Ltd,2005)

Before developing a market strategy for products it is vital; to write a marketing plan for product. It should include the information about customers, targeted population, tools & techniques that will be used for market research .So marketing expert must start market plan by writing an effective sketch or a summary of market plan that will be helpful in collecting information & organizing all activities needed for the development of product market strategy.

1.2Outline of developing market strategy

1.2.1 Mission Statement

The first element of product development strategy is mission statement of the organization. Basically mission statement gives information about the nature of business, its products & customers.

1.2.2 Corporate Mission Statement.

It includes the overall all long term aims & objective of the organization. These are the long term or strategic objectives of the organization.

1.2.3 Manufacturing objectives

It concern with the manufacturing sector of the firm. Every organization have certain manufacturing objectives. These can be about what to produce & on which scale to produce. Manufacturing objectives can be short term & can be long term .Sometimes to get market share or meet customers demand firm can increase their production & vise versa. So we can say said manufacturing objective scan be changed according to the situations.

1.2.4 Product Development objectives

This is the main objective in developing marketing strategy .When old products loose their sales then the need arises for product development .At this stage the marketing manager can plan for the development of new product or can plan to improve the functionality of the existing products. marketing manager can develop product to gain market share .So we would like to say the objective for developing market product may vary from time to time.

1.2.5 Marketing objectives.

There can be number of marketing objectives for developing marketing strategies .The main reason for marketing objectives can be the competitors marketing strategies .As there are number of competitors in the market .Each competitors try to compete his competitors for competitive advantage .So due to this most of the organization change their marketing strategies time to time .So marketing manager should need to do a market search & should change their marketing strategies according to changing marketing environment.

1.2.6 Customers

It is very important to know who are the targeted customers .So before developing a new product strategy marketing manager should do market search to know who are their targeted customers .what are there preferences & taste, & also marketing manager should need to know about the size of the targeted customers.

1.2.7 Market Segmentation

It is the utmost duty of the marketing manager to have knowledge & information about the different market segments .Market segmentation based on needs & wants of customers .It also depend on the demographic & geographic of targeted population .Market segments are the population groups that the firms want to target for the sale of products .So marketing manager need to do market search & should decide which segment of the market to target & which not .So market segmentation can be done on the basis of the nature of the product .Customers preferences & taste & income level can also play a vital role in segmenting market.

SWOT analysis

SWOT analysis stand for strengths ,weaknesses, opportunities &

Threats .Before introducing new product or new market strategy firm need to do “SWOT” Analysis .The main purpose of SWOT analysis is to know what are the strength, weakness, opportunities & threats for the firm in the both internal & external environment of the firm.

1.4 Product Position

Product positioning mean the value give by the customers to any product .Or the perception of customers about the firm or the firm products .The main component of product positioning to differentiate its products from customers .So firm have an option to customize products according to the preferences of customers .It also includes telling customers about the features of the products .So firm need to give importance to customer’s at all level

1.5 Market testing

Firms have an option to do test marketing before introducing new products to the market .Some firms pay to customers for purchasing their products only because of they want to check customers trend toward their products .The main purpose of test marketing is to know customer response about the product .But it is some time risky because competitors can imitate products.

1.6 Other aspects of marketing strategy

It also include the promotional strategies of products .It also include to forecast sales, revenue & what will be the price which will be charge from customers etc .The main components are to know what will be the distribution channel for the delivery of products to customers .The firm also need to know the psychological needs of customers as well.

1.7Product.Mix

There are four popular 4ps known as product, price, place & promotion.

1.7.1 Product

The first component of product mix is product itself .So marketing manager should promote product & tell customers what are the features of the products .It is also the responsibility of marketing manager to tell customers about the nature of the product.

1.7.2 Price

Price mean the charge for use of or consumption of products from customers .So price of product must be legitimate .Customers must not be exploited by charging high price .So price must be suitable. It must be charge as cost + profit margin .So profit margin must be suitable & legitimate.

1.7.3 Place

Place mean the market or targeted segment where the product will be launched for sale .So the selection of market place must be suitable .The time of entry & market in which to enter are the most important aspects in marketing a product.

1.7.4 Promotion

It includes all different medium used for the promotion of the product .The main purpose of the promotion can be to create awareness among public about the product.

Marketing manager can use different medium for promoting product.

Local cable network

Magazines

TV

Internet

(Robert Winton, 2007)

2.0 Tools for strategic marketing plan

Strategic plans are always for long period of time .So there are number of strategic plan types the most important type of strategic plan is SWOT Analysis, PEST analysis & Porter five forces.

2.1 SWOT analysis

S=Strength

W=Weakness

O=Opportunity

T=threat

As world become global place no country can live separately so almost every country and their firms involve in business on international level. Countries and firms involved in competitions so if any firm wants to survive in the market must do SWOT analysis.

There are two types of environments one is internal and other is external .Strength and weakness belong to internal environment and threat and opportunity belong to external environment. If a corporation want to get success and want to remain in market for longer period of time they must do SWOT analysis of their firms.

Companies must also develop strategy formulation that aim to achieve long term objectives of the firm. It includes mission, vision, objectives and different strategies. The main purpose of environmental scanning is to identify strategic factors -those external and internal elements that will determine the future of corporation. We must also identify different obstacle to a firms external environment including economic, technological, political, legal and sociocultural. We must also scan societal environment and their participants including government, local community, suppliers, competitors, customers, creditors, employees, labour union and trade association. Some other factors that firms need to keep in touch with are as,

2.2 PEST ANALYSIS

It include to analyze different forces of Macro environment of the organization .These forces are political, economical, social & technological.

2.2.1 Political Trends

Political trends affect overall performance of the firm .So the impact of political factor can be positive & can be negative .So firm need to do market search before entering into any market .So this will help a firm in understanding the legal & political conditions of any country.

2.2.2 Economic

Every country has its own economies traits but due to globalization most of the countries going to merge .But here also any firm which want to enter into another country market need to do understand the overall market condition w.r.t to economy of that particular country .It also include the economic condition of the customers of that particular country.

2.2.3 Social Trends

A nation’s culture and social forces can restrict international business activities. Culture consists of a country’s general concepts and values and tangible items such as food, clothing, and building. Social forces include family, education, religion and customs. Selling products from one country to another is sometimes difficult when the cultures of the two countries differ significantly .When any Firm enter into another culture then it faces many social & cultural barriers because the social & cultural traits of these countries can be different from its home country.

2.2.4 Technological trends

Due to advancement in science & technology firms faces a number of challenges .Most of the firm failed due to advancement of the technology because those were not capable of adopting technological changes .So to cope with technological challenges firms need to do market research & should hire experts in IT .Otherwise they will not remain in the market .So to remain in the market & to compete its competitors firm should be pro-active to technology rather than re-active.(Christopher M, Payne A and Ballantyne,2005)

2.5 Portfolio analysis techniques

2.5.1 BCG growth share matrix

In this relative market share of a firm is determine against growth share of firm in the market. It contains four stages question mark, star, cash cow and dogs. Cash cow show the best positions of firms product market share but dog shows poor or fewer shares in the market.

2.5.2 Product life cycle

Each and every one product has a certain life or a product lifecycle. this tell or give information about the expected process through which a novel product is introduced, is slowly but surely accepted this stage called growth, sells well for a while this stage is maturity stage and is then gradually superseded & this stage is known as decline or dying stage of a product. the subsequent chart gives a sign of how sales determination differ because of a product or goods goes from side to side the a range of stages of product lifecycle.Product life cycle Source billyfire.com/plan.php

3.0 Marketing strategies options with examples

3.1 Global & International marketing strategies

There are number of global marketing strategies that are using by different firms while expanding its market from national to global.

3.1.1 Example

Tesco planned to continue its international expansion activity by opening a number of hypermarkets in Hungary, Poland, Czech Republic, China, Thailand and South Korea. (Bhavika, Madhav, 2005)

3.2 Glocalization strategy

This strategy introduces by Roland Robertson (1995).Initially when Tesco enter into French market then Tesco totally failed because French retail sector were very similar to UK market .So after that Tesco adopted Glocalization strategy its mean to adopt local & global traits. So using this strategy Tesco get success in many countries including Czech Republic, Poland, Switzerland etc. (Delaporte, Jurenova, Ren, Towers, 2006)

3.3 Aggressive pricing strategy

This is the core competency or core strategy of firms to offers low prices. When most of the firms start to operate on global scale they offers low prices .Most of the organizations produces 90% of the products in host countries .So through this these organizations gain benefit in the form of cost reduction & offers prices that suit to different customer’s income groups. (Delaporte, Jurenova, Ren, Towers, 2006)

3.4 Customer driven marketing strategy

The art and science of choosing target market and building profitable relationship with them. It includes the selection of customers to serve, choosing a value proposition, value proposition mean to promise customers to provide goods and services to satisfy their needs.

3.5 Integrated marketing plan

Integrated marketing program that will actually deliver the intended value to target customers .The marketing program builds customer relationship by transforming the marketing strategy into action(Kotler &Armstrong)

3.6 International strategy

Many Firms adopted international strategy through setting special criteria for entering into international market. Including under developed retail sector, customers with spending power, have a potential to be a market leader & opportunity to get growth in market.

3.6.1 Internationalization strategy

3.6.1.1 Example of Tesco Internationalization strategy

Tesco has entered its first and culturally most proximate markets with a fairly unchanged retail model (‘global’) but adopted a local strategy when it entered the East Asian markets. In Thailand, here transportation is expensive but labour is relatively cheap, Tesco adapted its logistics to this situation. It has developed small format skill, which also circumvent trading hour’s regulations. It has developed a low cost ‘value’ format for up-country expansion a hypermarket format surrounded by leased space for local fresh fruit and vegetable vendors which provides a vehicle for entry into neighboring economics (Wrigley, 2005). Tesco’s first ever hypermarket was built in Asia, not in the UK. Tesco’s expansion into the US is considered to take place under a different brand name. (www.andidas.com)

3.6.2 Focusing on market

Firms organized a special market research to understand the buying behaviors of different customers group according to their income. If a company produces a new product without keeping in mind the targeted customers or market then automatically product will be failed. But most of the firms do market research & target those areas of world that have potential customers.

3.6.3 Act local & understand host country culture

Most of the organizations operations are done locally .It mean that these organizations produce all required goods in the domestic or host country market in which organizations operates. Through this these organizations can provides goods & services according to customer’s local taste.

3.7 National strategies

3.7.1 Tesco example

Tesco is UK based retail sector firm & having the status of market leader in UK .Three are number of strategies adopted by Tesco through which Tesco becomes market leader in the UK .Now a days Tesco is operating into 14 countries of the world. Before entering into global market Tesco focuses on domestic market & pay full attention to its different operations & get success in running its domestic operations well. Tesco meet total quality management standards in its domestic UK market because Tesco want to become global market player. So before entering into global market Tesco pay attention to its domestic operations & take many steps to be ready for global market. (Dunn, Mason, Scarf, Towers, 2006)

3.7.2 Maximize local responsiveness

To response local environment many firms do market research & produce goods according to domestic taste & preferences of domestic customers. These firms also provide all its products according to domestic traits & also follow the social & cultural preferences. So these organizations design special products according to different customers group according to their income.

3.7.3 Aggressive pricing strategies.

At national level these organizations core competency is to be aggressive in charging prices. If they have customers in million the main reason of this is that’s why these organizations charges low prices. These organizations also try to maintain the quality of products & charge low prices & get benefit through economies of scale by reducing production cost.

(Dunn, Mason, Scarf, Towers, 2006)

3.7.3.1 Market penetration

In this pricing strategy price of products are kept below the competition. This pricing strategy used when firms want to get market share from other firms. Most of the time China uses this pricing strategy to achieve market share. Firms conduct special research abuts those markets where this pricing strategy can be used.

3.7.3.2 Skimming

In the light of market of research sometimes companies uses this pricing strategy. In this strategy High prices are charged in order to grab market share. When demands for goods or services are high this strategy is used by many firms.

3.7.3.3 Follower pricing

If research indicates that the price must be charges as by market leader then this follower strategy will be used

3.7.4 Reduce transaction cost

The main impact of information technology is to reduce transaction cost. Before the advancement of information technology there was a conventional link among supply chain entities. Always end user depends upon agent or middle man for delivery of goods. So producer and customers somehow face extra expenditures. After the advancement in technology producers can sell out his products online without using middleman. Customers also have online reached to purchase products that are cheap and satisfy customer’s needs. (Fasanghari, Roudsari, Kim, 2007)

3.8 Benefits of different strategies

3.8.1 Innovation & creativity

The main benefit of marketing strategies is Innovation & creativity. Because R&D help innovation & creativity in products & services. Often build on cutting-edge knowledge. To convert such knowledge into important innovations usually requires individuals in the organization to combine the knowledge with an understanding of the market, collectively use the results of the research to build a new product, and then work to commercialize it. (Jackson, 2003)

3.8.2 Targeted customers

Marketing strategies of product & services help to know about the targeted customers or group of customers. Without customers there is no concept of firms or firms product & services. So before the development of any product or service we should understand the taste & preferences of our customers.

3.8.3 Knowledge-Based Resources

R&D & marketing strategies help in creating Knowledge-based resources include all the intellectual abilities and knowledge possessed by employees, as well as their capacity to learn and acquire more knowledge. Thus, knowledge-based resources include what employees have mastered as well as their potential for adapting and acquiring new information. For several reasons, these resources are seen as being extremely important for sustaining competitive advantage in today’s environment.

3.8.4 Production costs

The main advantage of developing marketing strategies is to reduce production cost .If any firms get success to reduce average cost & get economies of scale then it will be the ideal situation for any firms. So R&D is helpful in reducing production cost.

3.8.5 Distribution

Marketing strategies development play a vital role in developing distribution channel .Distribution refers to the methods used to deliver products to the consumer. It is important to evaluate which method of distribution is used most successfully within the industry. You must also determine if new channels or methods of distribution are emerging.

3.9 Limitations

There may be certain limitations or hindrances in marketing strategies some of them are as .The budget or fund allocation for R& D also play a vital role .Also Firm must keep in mind two factors before entering into any country market that are industrial structure and income distribution. Also firm need to analyze that country law and order situation .If economic and political situations suit firm then the firm must enter into that market .Culture basically defined the targeted customer group values, norms; likeness and disliking so culture must be keep in the mind.WTO requirements sometimes also create obstacle in marketing strategies The general agreement on tariffs and trade is a 59 years old treaty designed to promote world trade by reducing tariffs and other international trade barriers also world trade organization monitor trade of countries and has certain rules and regulation for corporation who want to enter in international market. So before entering globally these factors must be keep in mind.

4.0 Current changes in the marketing environment for the organization

To access current changes in the marketing environment for the organization & marketing strategies we need to do market research. market research will be helpful in understanding overall market position & all causes of change in organization environment. there are customers in billion & also they are demographically & geographically scattered all over the world. nowadays there is fastest expansion in all over the world market .the main reason is globalization. so due et o globalization the conventional ways of doing businesses are changing & modern ways of business take place of conventional modes. the main reason behind is the changing environments from all aspects .whether it is legal, political, economic, ethnological et. on the other hand, extremely small is identified in relation to how world marketing environment is unfurling(to unroll or spread out something, or be unrolled or spread out),

4.1 Capital requirements

Due to recent world economic slump almost all organization effected. Many firms default due to this slump in economic activities & many are trying to survive in these tough environment .So Organization need to invest in less risky projects .The main reason of this economic slump was paper back economy .So if firms want to overcome this issue they need to promote commodity based economy.

4.2 Customer taste & preferences

There is no constant but change .With the passage of time customers taste & preferences are changing .Most importantly their buying behaviours in changing .So in recent era organizations are facing severe challenges due to changing customers taste & preferences .So firms or organization need to produce products according to customers taste & they must have a constant look over the market conditions & other changing social & cultural trends.

4.3 Product Differentiation

Nowadays customers like differentiated products .So if firm want to remain in the market then they should developed differentiated products .So to achieve main competency over his competitors is to have a large variety of products. Through differentiations firm can produces products in thousands & can sell them on internet .Firm or organization can sell out these products both online and offline. When customers find a large variety of products then they feel happy because of greater choice in purchasing products. If any firm will have such a large variety of products then firm can get competitive advantage.

Limitations

There are certain limitations for the organizations. These limitations can create hindrances for organizations in developing certain strategies.

5.0 Organization responds to changes

5.1 Change must involve the people change must not be imposed upon the people

to respond changes organization need to involve employees & must consult with key employees how to deal with the change .so any change of new policy must not be imposed over workers without their consolation .So before implementing any policy or before responding to any change firm need to consult wilt employees at all level .So we can say change must involve the people change must not be imposed upon the people.

5.2 SWOT ANALYSIS

S=Strength

W=Weakness

O=Opportunity

T=threat

To respond changes organization have number of options .To respond well to environmental changes organization have option of using SWOT analysis, porter five forces, scenario planning & also the ‘the Psychological Contract. To respond changes organization can use SWOT analysis .Because it give information about the strength, weakness, opportunities & threats of the organization .So it is the better medium of responding environment & other organizational changes.

As world become global place no country can live separately so almost every country and their firms involve in business on international level. Countries and firms involved in competitions so if any firm wants to survive in the market must do SWOT analysis.

There are two types of environments one is internal and other is external .Strength and weakness belong to internal environment and threat and opportunity belong to external environment. If a corporation want to get success and want to remain in market for longer period of time they must do SWOT analysis of their firms.

5.3 Scenario planning

Scenario planning merely explains resources of creating a diversity of probable potential scenarios. Organizations be capable of subsequently to act in response of one or of two conduct. Foremost or the primary way is , organizations possibly will scrutinize every one scenario & settle on whether the firms present plan, policy or strategy will assist organizations stay alive & achieve something in those circumstances .Otherwise, organizations can look at a preferred prospect condition & observe what they have to perform to obtain to that end. The reason of this development is to attempt to comprehend how the fundamental dynamics of an manufacturing or industry be able to and how the firm might most excellent act in response to a change that might come about or to make a preferred situation happen. Scenario planning is dissimilar on or after additional forms of strategic planning, like to forecasts and tendency psychoanalysis. Scenario planning indeed uses together of these techniques, other than as well identifies how these be able to be distress and therefore reason dissimilar results.

5.3.1 Example

Most of the time Toyota, Dell & General Electric use scenario planning

(Von Oetinger, Bolko, 2004)

5.4 The psychological contract

To respond in a well manner the organization need to establish well relation will employees at al level & also management should consult with employees in responding to any change. So management can use the psychological contract .It refer to “The Psychological Contract refers to the relationship between an employer and its employees, and specifically concerns mutual expectations of inputs and outcomes.”

Just, within a service background, the Psychological Contract is the evenhandedness or sense of balance. It is when employees respond to this so according to this two aspects must be there between employees & employers.

It should give the information about how the employees will be treated by the employer.

It should also tell about the role & responsibility of employees. (www.businessballs.com)

6.0 How functional areas help organization in achieving marketing objectives

Different functional areas help in achieving organization marketing objectives .There are number of functional areas of organization including production, human resources etc. The objectives set for marketing functional areas are influenced by pricing decision .There are four marketing objectives in which price play a vital role.

6.1 Four main objectives effected from prices

6.1.1 Return on investment (ROI)

It means that what portion of return will be achieved from investment. This height or level of return to the length of with an approximation of sales determination will help to evaluate suitable pricing levels desired to get together the return on investment (ROI) objective.

6.1.2 Cash Flow

Organizations could try to find to locate prices at a rank that determination gives a guarantee with the intention of sales revenue will at smallest amount wrap product & also production and marketing costs. This is a large amount probable to come about by means of new products where the managerial objectives permit a new product to merely get together its operating cost while hard work are made to create the product within the marketplace. This goal allows the marketer to be concerned a lesser amount of on the subject of product profitability and in its place directs energies to building a market intended for the product.

6.1.3 Market Share

The pricing pronouncement might be significant at what time the firm has an purpose of in advance a grasp in a novel market or retaining a definite percent of an obtainable market. intended for novel products beneath this purpose the price is set synthetically near to the ground in turn to incarcerate a considerable segment of the market and determination be greater than previous to as the product becomes supplementary acknowledged through the target market. Intended for obtainable products organization might employ price decisions to cover they keep hold of market share for example where there is a far above the ground level of market rivalry and competitor who are agreeable to contend on the base of price.

6.1.4 Maximize Profits

Those products which show Declining trend or which are old to market so these older products so as to application to a market so as to is no longer rising might have a organization purp