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Marketing Strategies and Plans 31 3 7 M.Com. PART -I BUSINESS MANAGEMENT GROUP - PAPER -II MARKETING STRATEGIES AND PLANS (Revised Syllabus w.e.f Academic Year 2014-15) © UNIVERSITY OF MUMBAI Dr.SanjayDeshmukh Vice Chancellor, University of Mumbai Dr. Dhaneswar Harichandan Professor -Cum- Director IDOL, Universityof Mumbai Course and Programme : Ms. Madhura Kulkarni Co-ordinator Asst. Prof. - Cum Asst. Director, University of Mumbai IDOL Course Writer : Dr. Sandeep Poddar S. P. D. T. College of Arts, Commerce & Science, J. B. Nagar, Andheri (E), Mumbai : Prof. Sayali Yadav G.N. Khalasa College of Arts, Commerce and Science, Matunga, Mumbai : Prof. Sushmita Mukarji Alkesh Dinesh Mody Institute of Management Studies, University of Mumbai Editor : Dr. Paras Jain M. D. College, Parel, Mumbai November, 2014 M. Com. Part - I, Business Management Group - Paper - II, Marketing Strategies and Plans Published by : Professor cum Director Institute of Distance and Open Learning , University of Mumbai, Vidyanagari, Mumbai - 400 098. DTP Printed by : CONTENTS Unit No. Title Page No. 1. Introduction to Strtegic Marketing 1 2. Marketing Plan 14 3. Marketing Environment Analysis and Mis 25 4. Industry Attractveness and Marketing Research 40 5. Connecting with Customers 54 6. Customer Satisfaction 67 7. Dealing with Competition 81 8. Brands and Branding 97 9. Product Strategies and Consumer Adoption Process 112 10. New Product Development 122 11. Pricing 134 12. Marketing Intermediaries 147 13. Integrated Market Communications 160 14. Marketing Communication and Promotion Tools 180 15. Recent Trends In Marketing - Part 1 199 16. Recent Trends In Marketing - Part 2 I SYLLABUS M.COM PART I BUSINESS MANAGEMENT GROUP - PAPER II MARKETING STRATEGIES AND PLANS (w.e.f ACADEMIC YEAR 2014 – 15 in IDOL) SECTION I Learning Outcomes: 1) Understand the meaning and importance of strategic marketing and planning. 2) Appreciate the need for understanding the marketing environment and analyze how the environmental factors impact the marketing practices and performance of organizations. 3) Understanding the need and importance of creating value for customers. 4) Gain insights into the impact of competition, how companies deal with competition and brand related concepts. MODULE I Understanding Strategic Marketing and Planning a. Marketing Strategy - Definition, significance and conditions for the success of Marketing Strategy. b. Three strategy levels (Corporate / business / functional level strategies). c. Steps in developing marketing strategies and plans. d. Contents of a marketing plan. MODULE II Marketing Environment Analysis a. Understanding Marketing Environment, macro trend analysis (demographic, socio-cultural, technological, regulatory and natural environment) and internal micro analysis. b. Assessing industry attractiveness with Porter’s five forces model. c. Components of modern MIS. d. Marketing research-meaning and process. II MODULE III Connecting with Customers a. Creating Customer Value, Satisfaction and Loyalty, Customer Perceived Value (CPV), Customer Life Time Value, Total Customer Satisfaction and measuring customer satisfaction. b. Steps in customer value analysis. c. Way of increasing value of the customer base. d. Process of attracting and retaining customers. e. Marketing activities for building loyalty. f. Customer Relationship Management - Meaning, benefits and challenges. MODULE IV Dealing with Competition and Building Strong Brands a. Competitive forces, process of identifying and analyzine competitors. b. Strategies of market leaders, challengers, followers and nichers. c. Brands and branding : Definition, Role of Brands, Brand Loyalty, Brand Preference. d. Brand Equity - meaning and importance. e. Brand elements - meaning and criteria for choosing brand elements. SECTION II Learning Outcomes: 1) Understand the strategies adopted for managing products through the life cycle and the basics of new product development and adoption. 2) Gain insights into how companies price their products. Understand types and role of marketing intermediaries and the basics of logistics. 3) Understand the process of marketing communications and management of Integrated Marketing Communication. 4) Understand the recent trends in marketing and appreciate the need for and types of marketing control. III MODULE V Product Strategies and New Market Offerings a. Designing Product strategies and managing through the life cycle. b. New product development process. c. Factors contributing to new product development. d. Challenges in new product development. e. Consumer adoption process. MODULE VI Pricing and Marketing Intermediaries a. Pricing Strategies. b. Steps in setting the price. c. Initiating price cuts and price increases - reasons and impact on competitors’ pricing and buyers. d. Retailing - meaning and types of retailers. e. Wholesaling - meaning and functions of wholesalers. f. Logistics - meaning and market - logistics decisions (order processing, warehousing, inventory and transportation). MODULE VII Marketing Communication and Integrated Marketing Communication (IMC) Marketing communication - Meaning and the process of developing effective marketing communications. a. Integrated Marketing Communication-meaning and managing the IMC process. b. Managing communication and promotion tools - the recent trends and tools used in advertising, PR, sales promotion, personal selling and direct marketing. MODULE VIII Managing Marketing for the Long Run and Marketing Control a. Recent trends in marketing practices: use of technology in marketing, socially responsible marketing, new consumer capabilities and company capabilities. b. Steps involved in creating a market and customer focused company. c. Organising the marketing department. d. Types of marketing control. IV Recommended Books: 1. Philip Kotler, Kevin lane Keller, Abraham Koshy and Mithileshwar Jha (2009). Marketing Management - A South Asian Perspective: Thirteenth Edition. New Delhi : Pearson Education. 2. V. S. Ramaswami and S Namakumari (2009). Marketing Management - Global Perspective Indian Context : Fourth Edition. New Delhi : Macmillan India. 3. Rajan Saxena (2010). Marketing Management : Fourth Edition. New Delhi : Tata McGraw - Hill. 4. Blakeman Robyn (2010). Integrated marketing Communication Creative Strategy From Idea to Implementation. New Delhi : pinnacle. 5. William Station, Etzel Michael J, Walker Bruce & Stanton William (2004). Marketing : thirteenth Edition. New Delhi : Tata McGraw-Hill. 6. Philip Kotler (2002). Framework for Marketing Management. New Delhi : Person Eduction. 7. Michael Porter (1985) Competitive Advantage : Creating & Sustaining Superior Performance. New York : Free Press. 8. Free R. David. Strategic Management : Concept & Cases New Delhi : Prentice Hall. 9. Azhar Kazmi (2008). Strategic management & Business Policy : Third Edition. New Delhi : Tata McGraw - Hill. 10. Francis Cherunilam (2010). Business Policy and Strategic management : Third Edition. Mumbai : Himalaya Publishing House. 1 1 INTRODUCTION TO STRTEGIC MARKETING Unit Structure 1.1 Objectives 1.2 Meaning and definition of marketing strategy 1.3 Significance of marketing strategy 1.4 Conditions for a successful marketing strategy 1.5 Three strategy levels 1.6 Summary 1.7 Questions 1.0 OBJECTIVES After studying the unit the students will be able: x To understand the concept of marketing strategy x To study the role of marketing strategy in business functioning x To discuss the essentials of a successful marketing strategy x To understand the different strategy levels 1.1 INTRODUCTION At the heart of any business strategy is a marketing strategy. A marketing strategy is something that every single business; no matter how big or small, needs to have in place. Businesses exist to deliver products that satisfy customers. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services. A marketing strategy is composed of several interrelated components called the marketing mix. The Marketing mix consists of answers to a series of product and customer related questions. 1.2 MEANING AND DEFINITION OF MARKETING STRATEGY A marketing strategy is a written plan that includes marketing topics like product development, promotion, distribution and pricing 2 approach. It identifies company's marketing goals and explains how company can achieve those goals. Marketing strategies help in identifying strengths and weaknesses of the company and that of its competitors. Marketing strategy helps to identify the areas on which the company has to focus its marketing tactics. A strategy is a long-term plan to achieve certain objectives. A marketing strategy is therefore a marketing plan designed to achieve marketing objectives. For example, marketing objective may relate to becoming the market leader by delighting customers. The strategic plan therefore is the detailed planning involving marketing research, and then developing a marketing mix to delight customers. Every organization’s needs to have clear marketing objectives, and the major route to achieving organizational goals will depend on strategy. Developing a strategy involves establishing clear aims and objectives around which the framework for a policy is created. Having established its strategy, an organization can then work out its day-to-day tools and tactics to meet the objectives. Marketing can thus be seen as the process of developing and implementing a strategy to plan and coordinate ways of identifying, anticipating
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