Important Concepts

BCG MATRIX SERVICE MARKETING GREEN MARKETING RURAL MARKETING RED OCEAN AND BLUE OCEAN STRATEGY CUSTOMER PYRAMID TYPE OF CUSTOMERS INTERNET MARKETING
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1. BCG Matrix
History of the BCG Matrix
--1960s diversification of businesses

Need for universal management tool

First implementation in 1969 by Boston

Consulting Group
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Portfolio Analysis
Strategic Business Unit (SBU) Definition
Single independent operation of a company Has its own competitors One manager responsible for performance

Allocation of resources over all SBUs Goals

Set benchmarks Create generalized descriptions of strategic situations

The BCG Matrix

Relative Market Share High Low High Product Sales Growth Rate Low

 STARS( HIGH MARKET SHARE, HIGH INDUSTRY GROWTH) CASH COWS(HIGH MARKET SHARE, LOW INDUSTRY GROWTH) QUESTION MARKS(LOW MARKET SHARE, HIGH INDUSTRY GROWTH) DOGS (LOW MARKET SHARE, LOW INDUSTRY GROWTH)
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Strategy Recommendations
Investment
Further Growth Maintain Market Position

Cash flow
Self-sustaining: Fund their own growth Require funds from other SBUs (Cash Cows)

Assure the future of the company Grow into Cash Cows

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Strategy Recommendations
Investment
Increase market share Selectively develop into Stars

Cash Flow
Require funds from other SBUs (Cash Cows)

Unrealized future opportunities

Strategy Recommendations
Investment
Maintain market share Maintain capacity

Cash Flow
Positive cash flow Provides funding to support Stars and ?

No potential for profit growth

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Strategy Recommendations
Investment
Divestiture strategy Reduce capacity to free up resources

Cash Flow
Goal of Positive Cash Flow Negative Cash Flow = Divestment

No real growth opportunities

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The BCG Matrix for ITC Ltd.

Stars Hotels Paperboards/ Packaging. Agri business. Cows FMCG-Cigarettes ? FMCG- Others

Dogs Maybe ITC Infotech.

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Conclusion
As long as management understands that the BCG Growth/Share Matrix generates options which require further analysis and validation, this tool can greatly enhance strategic decision making

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2. SERVICE MARKETING
7Ps of Service marketingA. Product (service) B. Price C. Promotion D. Place E. People F. Process G. Physical Evidence
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 Service is intangible offering like car rentals, insurance Service is one part of product- service mix being offered to customers like restaurants Sometimes attached with the tangible product like car services Services are intangible, inseparable, perishable
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3. GREEN MARKETING
- Promoting Green Ideas, producing green Goods and services. -The idea is that we will not allow the corporates to pollute our environment. -A free society needs both high standard of individual wealth and clean environment. -Ecological concerns -McDonalds and Nirulas using paper bags.
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4. RURAL MARKETING
Rural Markets offer growth opportunities to firms caught in intensive inter firm rivalry in urban and metro markets. Significant change drivers in rural India is the spread of Information Technology. The project e- choupal launched by ITC in Madhya Pradesh called for setting up of an Internet Kiosk for giving information about crops, prices and soil conditions
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5.RED OCEAN and BLUE OCEAN

RED OCEAN MARKETS ARE ALREADY TAPPED AND EXPLORED. BLUE OCEAN MARKETS ARE YET TO BE EXPLORED AND ARE POTENTIAL MARKETS AND CREATING UNCONTESTED SPACE IN THESE MARKETS.

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6. Customer Pyramid

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 The main premise of the Pyramid of Customer Loyalty is that you build your most profitable and long lasting business relationships when you are able to devote more time to really understanding what your customers value. By doing this the nature of your relationship will go from vendorcustomer, implying just a financial relationship open to outside competitors, to trusted partner/valued advisor. This is where your customers view you as important to their business, and in fact become your biggest supporters inside and outside of their organizations, bringing you leads without you asking them to do so. This is great stuff, but it can only happen if you can put the time in to focus on how to deliver what's important to them. And in order to do this, you must find ways to automate the routine and time consuming processes of finding and catching new customers.

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 Using the latest tools like blogging, wikis and the like to extend your reach and provide richer communications channels to showcase your knowledge and expertise can be a great lowcost, effective way to do just that. And if you use the web to generate and determine good leads from deadbeats, you'll free up time to turn customers into clients, and clients into advocates and partners. That may make it worthwhile to do a little light blogging.
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7.CUSTOMER TYPES FOR ADOPTION OF PRODUCTS

1. INNOVATORS: About 10 percent 2. EARLY ADOPTERS: About 13.4 percent 3. EARLY MAJORITY: About 34 percent 4. LATE MAJORITY: About 34 percent 5. LAGGARDS: About 16 percent

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8. INTERNET MARKETING
Internet marketing refers to the marketing of goods and services over internet. It is also known as online marketing. B2B MARKETING B2C MARKETING C2C MARKETING C2B MARKETING
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