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SCORPIO

Marketing Strategy

Group Members Dushyant Vatsa (061234) Grishma Aggarwal (061239) Nakul Tandon (061260) Raghav Sadhir (061275) Rohit Verma (061326)

Introduction
Identify the target market or niche
Options & selected market entry route
FAILURE !!

MONEY !!

Business objective & strategy (vision) Marketing Objective & strategy Products and services Operational marketing plans

Business Strategy
It is a long term plan of action designed to achieve a particular goal or set of goals or objectives. Strategy is management's game plan for strengthening the performance of the enterprise. It states how business should be conduct to achieve the desired goals.

Strategy and Marketing

Strategy and Marketing

Marketing strategy
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable

Adidas is the primary footwear company who had adopted an online e-commerce strategy to increase their sales and product awareness. Most importantly, companies like Adidas have invested heavily into online brand building and image development. Adidas launched their web site in the spring of 2000, which was later integrated with e-commerce capabilities during that summer. The web site served as a brand building tool for the company.

SCORPIO Marketing Strategy


Industry & Market
Organization
Systems & Culture The Customer

Openings & Market Entry

Positioning & Branding


Segmentation & Targeting

Retention Strategies

Industry & Market

Industry and Market


What business are we in? What business do we want to be in or should we be in? How does this define the market/customer needs we should be satisfying? Where/how should we be growing the business? What are the strategic opportunities & threats? What competition are we facing? What are the boundaries for effort?

Nokia is betting on markets such as India, where more than 10 million mobile connections are being added every month, at a time when global cellphone sales are falling as recession-hit consumers in emerging and developed markets rein in spending.

Effort made by Nokia to grow Business


The company which recently piloted a scheme in two states where it sold handsets on a weekly installment of 100 rupees over 25 weeks will now rollout the microfinance offer in 12 Indian states.

The company also announced the national roll-out of Nokia Life Tools services, which would eventually cover 17 States. Targeted at the rural customer, Nokia Life Tools provides useful information on weather conditions, farm inputs and market prices.

Nokia has announced that it will enter the netbook market


Nokia will bring its rich mobility heritage and knowledge to the PC world with the new, Windows based, Nokia Booklet 3G.

Powered by the efficient Intel Atom processor, the Nokia Booklet 3G delivers impressive performance with up to 12 hours of battery life, enabling people to leave their power cable behind and still be connected and productive

The Customer

THE CUSTOMER
The purpose of a business is to create and keep a customer The slogans "customer is king" or "customer is god or "the customer is always right" indicate the importance of customers to businesses

Identify The Customers: Know which customers have to be targeted in the market.
Check The Need Of The Customers: Work according to what the customer needs. Benefits Seeked From The Organization: Attract by giving some benefits. Customer Requirements: Check customer requirements and make sure you are up to the mark.

Unwanted Barriers Between The Organization And The Customer: Make sure there are no unwanted barriers between the organization and the customers.
Interference Of Customers With the Organization. Improvement Of Relationship: Make sure to keep good relations with customers.

LATENT NEEDS AND WANTS


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Segmentation & Targeting

SEGMENTATION & TARGETING


A market segment is a group of people or organizations sharing one or more characteristics that cause them to have similar product and/or service needs. A true market segment meets all of the following criteria:
1. 2. Distinction Homogeneous

SEGMENTATION & TARGETING


Check Existing Segments In The Market Identify Most Valuable Segments Adapt And Choose The Best Segments Target The Market Once All Segments Have Been Defined

ADVANTAGES OF SEGMENTATION
Better Targeting Efficient Promotion Higher And Better Production Quality Products Higher Pricing Clear Customer Propositions Clear Market Positioning Market Influence And Leadership Competitive Advantage Profitability

DISADVANTAGES OF SEGMENTATION
High Level Of Research Higher Costs Of Production Complicated Administration Inefficient Production System Changing Demands of The Customers

Positioning & Branding

Stand Out

Positioning
The process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market. Positioning is not what you do to a product. Positioning is what you do to the minds of the prospect For example; Mercedes, BMW, Rolex are positioned as luxury brands.

Positioning means being first


If you cant be first in a category,
set up a new category to be first in
For example Charles Schwab did not open a better brokerage firm; he opened up the first discount broker Dell is not the biggest computer company; it is the biggest computer company to sell their computers over the phone.

Branding
The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers. Brand resides within the hearts and minds of customers, clients, and prospects. Branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.

Marketing is not a battle of products, its a battle of perceptions

Brand is the sum total of experiences and perceptions of the customers. It is invaluable as the battle for customers intensifies day by day. Therefore it is important to spend time investing in researching, defining, and building your brand as it is the source of a promise to the customer.

Value Proposition
A statement that focuses business/marketing activities onto key elements that provide a significant differential within the customers decision process to favour/purchase the companys offering over a competitors. A customer can evaluate a company's valueproposition on two broad dimensions : Relative Performance Price

Openings & Market Entry

Openings and Market Entry


When an organization has to enter an overseas or a new market, there are a variety of options open to it. These options vary with cost, risk and the degree of control which can be exercised over them.

There are various strategies : Export - Direct or Indirect Licensing Joint ventures Wholly owned subsidiary per market/area Marketing subsidiary per market/area Regional subsidiaries

Introduction

Export
Exporting is the most traditional and well established form of operation in foreign markets. Although no direct manufacturing is required, significant investments in marketing are required.

Advantages: Limited investment; low risk, gives an opportunity to "learn" overseas markets before investing in bricks and mortar

Disadvantages: Higher unit cost to consumer Likely lower market share one can be at the "mercy" of external agents

For example, in the exporting of African horticultural products, the agents are in a position to dictate to producers.

Licensing
Contractual arrangement whereby one company makes the asset available to another company in exchange for royalties, license fees or some other form of compensation Licensing is "the method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor". Licensing involves little expense and involvement. The only cost is signing the agreement and policing its implementation.

It may be in the form of : Products Technologies and Process Innovation Trademarks (Disney)

Why Licensing?
Advantages
Relatively easy access to global markets Linkage of parent and receiving partner interests means both get most out of marketing effort Standard setting: failure to seize an opportunity to license can lead to negative consequences Apples Mac system

Disadvantages
Limited form of participation - to length of agreement, specific product, process or trademark Partner develops knowhow, Licensees become competitor

RETENTION STRATEGIES

Retention
The retention of customers through varying means and practices to ensure repeated trade from preexisting customers by satisfying requirements above those of competing companies through a mutually beneficial relationship.

How Customer Retention Can Cause Increase in Profitability ?


The cost of acquisition occurs only at the beginning of a relationship. Long-term customers tend to be less inclined to switch, and also tend to be less price sensitive. Customers that stay with you tend to be satisfied with the relationship and are less likely to switch to competitors. Regular customers tend to be less expensive to service.

Retention strategies also build barriers to Customer Switching


Product bundling ( fast food industry in which multiple items are combined into a complete meal.) Cross promotions(hp promoted windows vista with every purchase of hp laptops) Loyalty programs (loyalty card, rewards card, points card, advantage card)

Organizational culture
"the specific collection of values and norms that are
shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization."

Organizational culture Acc. to Edgar Schein


He described in three cognitive levels of organizational culture. 1. Level 1(Includes facilities, offices, furnishings, visible awards and recognition, members dress , interaction among the members). 2.Level 2( company slogans, mission statements and other operational creeds are often expressed. ) 3.Level 3 (At the third and deepest level, the organization's tacit assumptions are found.)

Case Study

Customers
Consumer Products Jenny Craig Kimberly-Clark Mary Kay Procter & Gamble Timex Corporation E-commerce AutoNation Boats.Net Hubert Company Kenko.com Manheim Auctions ShopNBC SmartHome Vermont Country Store Education Boise State University Temple University Boston University Texas A&M De Anza College Foundation Dominican University University of Florida Duke University University of Kansas Illinois State University University of Michigan New Jersey Institute of University of Vermont Technology New York University Oregon State University Pennsylvania State University Pepperdine University Rice University Seattle University Stanford University

Segmentation
Aerospace & Defense Media Professional Services Energy Telecom Transportation & Logistics

Education
Electronics Financial Services Government Healthcare High Tech Life Science Manufacturing

Positioning & Branding


It's been a decade since Sergei Brin and Larry Page set up Google Inc. in a California garage. The two founders had big plans for their company back in 1998, but even they would have been stunned to learn that 10 years later Google would become the biggest brand in the world. Its become the first hundred billion dollar company in the history !!!

Marketing students in the 80s learned their brand management from Coke, and Apple taught the key branding lessons in the 90s, so it's no surprise that Google provides the best branding lessons of this decade. Here are 5 of the most important, to celebrate Google's triumphant anniversary.

1. Don't be too keen on market research. 2. Who needs advertising? 3. The best brand architecture is a single branded house. 4. Branding is about change, not consistency. 5. Most future business comes from brand extensions.

Google's Organizational Culture "We try to provide an environment where people are going to be happy. I think
that's a much better use of money than, say, hundred-million-dollar marketing campaigns or outrageously inflated salaries." - Sergey Brin, Google co-founder, in March 2003.

Google Inc (Google) has been hailed as the one of the most successful Internet startup companies. Apart from the technological edge it had over its competitors, Google's success was also attributed to its ability to attract the best talent and retain these employees. And this was made possible by Google's organizational culture. During the dotcom boom in the late 1990s, Google was the only company that did not experience any employee turnover, while all other major tech companies experienced employee turnover rates of around 20-25%. They felt that Google was successful because it had removed unnecessary managerial hierarchies and gave its engineers a free hand to work.

Recruitment Google recruited people with diverse skills and . While recruiting, Google attached a lot of importance to academic excellence as revealed in grade scores in SAT and other graduate exams. To get an interview call from Google, a person had to be from a top-ranking university...

Retention Strategies
Innovation Free products and services Great customer experiences Ease of use Huge customer base Large product base

Openings & Market Entry


Brand disruption taking shape between Google and Microsoft for computing platform dominance. The heart of Googles challenge is a new domain-oriented platform (and potential brand context) called Google Apps Google Apps is aimed not at individual web surfers but at groups such as organizations, small businesses, enterprises and schools that share a domain. Far cheaper and easier to administer than Microsoft Windows, while being largely compatible with it.

If its reliable, costs far less, delivers equal or better productivity, doesnt force hardware upgrades, causes fewer headaches, and comes with painless updates, it may indeed usher in a computing sea change for customers.

Thank You