Marketing strategy consists of the analysis, strategy development, and implementation activities in: “Developing a vision about the market(s) of interest to the organization, selecting market target strategies, setting objectives, and developing, implementing, and managing the marketing program positioning strategies designed to meet the value requirements of the customers in each market target”. Strategic marketing is a market-driven process of strategy development, taking into account a constantly changing business environment and the need to deliver superior customer value. The focus of strategic marketing is on organizational performance rather than a primary concern about increasing sales. Marketing strategy seeks to deliver superior customer value by combining the customer-influencing strategies of the business into a coordinated set of market-driven actions. Strategic marketing links the organization with the environment and views marketing as a responsibility of the entire business rather than a specialized function. Because of marketing’s boundary orientation between the organization and its Continue reading
Marketing Concepts
Strategic Pricing
Pricing is a key factor in business innovation. Strategic pricing involves aligning the pricing strategy with corporate strategy. The price must be chosen carefully after considering various scenarios and possible implications. Is the price attractive enough to capture the mass of target buyers? Can the company make the offering at the target cost and still earn a healthy profit margin? Can the company profit at a price that is affordable to the target buyers? Strategic pricing is a key component of Blue Ocean Strategy pioneered by Chan Kim and Renee Mauborgne. To have strong revenue flowing, the strategic price must be set. This procedure will ensure that consumers will want to buy and will have the compelling ability to achieve it. It is fundamental, from the start, to know the price that will bring mass of target consumers. The strategic price defined must not only attract customers but also retain Continue reading
Various Aspects of International Advertising
Advertising is one of the most visible forms of communication. Because of its wide use and its limitations as one-way method of communication, advertising in international markets is subject to a number of difficulties. Advertising is often the most important part of the communication mix for the consumer goods, where there is a large number of small volume customers who can be reached through mass media. International advertising entails dissemination of a commercial message to target audiences in more than one country. Target audiences differ from country to country in terms of how they perceive or interpret symbols or stimuli, respond to humor or emotional appeals, as well as in levels of literacy and languages spoken. International advertising can, therefore, be viewed as a communication process that takes place in multiple cultures that differ in terms of values, communication styles and consumption patterns. International advertising is also a business activity Continue reading
Marketing’s Impact on Individual Consumers and Society
Marketing is offering significant benefits to organizations and to society, while the fact that marketing is a business function operating in close contact with the public where extensive criticism is subjected to this functional area, some of this criticism is justified: much is not. The function and practice of marketing has been criticized because it is claimed that it creates partial truths about products and services by emphasizing the gap between a person’s reality and their expectations in such a way that people feel lacking in either self esteem so that they feel compelled to close the gap by unnecessary spending. The philosophy of Milton Freidman and the belief that the “ends justifies the means” endorses the marketing way or its aim. In other words businesses are accountable to shareholders and shareholders alone where marketing is the tool. Social critics claim that certain marketing practice hurts individual consumers and society Continue reading
Publicity – Meaning, Areas and Vehicles
Public relations are often confused with publicity, which in simple terms mean making things public or bringing things to the public notice. Many tools including word of mouth to the mass media to advertising to the Internet are used for publicizing information. However, publicity is only one part of public relations. Many marketing experts put public relations under publicity. Thus, publicity is an important part of public relation. Many tools are used for publicizing information and facts. The major and most effective ones are the mass media. Publicity coverage could be in the form of news stories, news analyses, interviews, features, articles, and editorials in printed media and in news bulletins, interviews, discussions or special programmes on radio and television. Another form of publicity is the paid variety. This basically involves advertising for which the organization has to pay to the media for the amount of space and time. Yet Continue reading
Improve, Adapt, Buy or Drop a Product – Strategic Marketing Decisions
If a product is not showing profitable performance, the company may consider one of the alternatives, viz., improve, adapt, buy or drop the product. Improve If the firm continues to make the product, it may be required to make improvement in its production or distribution so as to yield adequate return. Improvement may mean re-designing the product or producing it at a lower cost. Product improvement is particularly necessary when the existing product has become apparently obsolete or out of fashion. Indian companies need to continuously upgrade their products and technology to withstand the pace of change in their business environment and to meet the challenges thrown up by the emergence of a buyer’ market. Product improvement is very important in durable goods, for example, automobiles, refrigerators, etc. This explains the development of a camera with a built-in coupled exposure meter, which proved to be a Continue reading