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Report
On
Chapter Reviews of Strategic Marketing
(Based on the Study of Strategic Marketing)
Report
On
Strategic Marketing (Course: 512)
Topic: Chapter Reviews of Strategic Marketing
Prepared for:
Dr. Abu Naser Ahmed Ishtiaque
Associate Professor
Department of Marketing
Faculty of Business of Studies
University of Dhaka
Prepared by:
“Elegant (VI)”
Section: A
Department of Marketing (14th
)
Faculty of Business Studies
University of Dhaka
Date of Submission: 13th October, 2012 eng.
Group Profile:
“Elegant (VI)”
No. Name Roll Designation E-mail Address
1 Md. Abdur Rakib 041 Member rakibrashed@gmail.com
2 Rumana 087 Member jaf.khan98@yahoo.com
3 Md. Al Amin 089 Member duamin_mkt@yahoo.com
4 Anjuman Ara 139 Member anjuman8964@yahoo.com
5 Md. Moben Ahmed 151 Member ms.du.mkt@gmail.com
6 Chowdhury Omor Faruque 173 Leader omor173@yahoo.com
Letter of Transmittal:
13th
October, 2012
Dr. Abu Naser Ahmed Ishtiaque
Associate Professor
Department of Marketing
University of Dhaka
Dear Sir,
Here is the report on the topic of Chapter Reviews of Strategic Marketing and the outlines of it
(Based on the Study of Strategic Marketing) that you asked us to conduct.
Our study of analyzing as well as learning each & every chapter contents, illustrations, idea, core
values of topic will help us know about strategic marketing deeply.
We appreciate your choosing this report on chapter reviews. If you need any additional
information or assistance in the overview of our report, please ask us.
Sincerely Yours,
“Elegant (VI)”
Section: A
Department of Marketing (14th
)
Faculty of Business Studies
University of Dhaka
Table of Contents:
No. Particulars Page No.
1 Executive Summary v
2 Chapter 1: Imperatives for Market-Driven Strategy 1-3
3 Chapter 2: Markets & Competitive Space 4-8
4 Chapter 3: Markets and Competitive Space 9-11
5 Chapter 4: Strategic Customer Relationship Management 12-15
6 Chapter 5: Capabilities for Learning about Customers and Markets 16-19
7 Chapter 6: Market Targeting and Strategic Positioning 20-22
8 Chapter 7: Strategic Relationships 23-26
9 Chapter 8: Innovation & New Product Strategy 27-29
10 Chapter 9: Strategic Brand Management 30-32
11 Chapter 11: Pricing Strategy 33-37
12 Chapter 12: Promotion, Advertising, and Sales Promotion Strategies 38-42
13 Chapter 13: Sales Force, Internet, and Direct Marketing Strategies 43-46
14 References 47
Executive Summary:
The report is made on the chapter reviews from the strategic marketing book 9th
Edition by
David W. Cravens & Nigel F. Piercy. 12 chapters are taken for making reviews for the report.
Strategic marketing in companies around the world is confronted with unprecedented challenges
and exciting opportunities in the 21st
century. Driven by demanding customers with complex
value requirements, aggressive global competition, turbulent markets, rapid emergence of
disruptive new technologies and global expansion initiatives, marketing strategy has become an
enterprise-spanning responsibility with major bottom-line implications. Central to the
opportunities generated by these challenges is a critical need to improve executives’
understanding of markets and competitive spaces, customer value delivery, innovation culture,
and processes, and effective organizational design.
However, reviewing chapters will enrich the knowledge about strategic marketing; markets,
segments, and customer value; designing market-driven strategies & market-driven program
development.
Chapter 1
Imperatives for Market-Driven Strategy
Market-Driven Strategy:
All business strategy decisions should start with a clear understanding of markets, customers,
and competitors.
The market and the customers that form the market should be the starting point in shaping
business strategy.
Characteristics of a Market-Driven Strategy:
1. Becoming Market-Orientation
2. Determining Distinctive Capabilities
3. Customer Value/Capabilities Match
4. Achieving Superior Performance
Characteristics of Market Orientation:
 Customer Focus: What are the customer’s value requirements?
 Competition Intelligence: Importance of understanding the competition as well as the
customer
 Cross-Functional Coordination: Remove the walls between business functions
 Performance Consequences: Market orientation leads to superior organizational
performances
Becoming a Market-Oriented Organization:
 Information Acquisition
 Cross-Functional Analysis of Information
 Shared Diagnosis and Coordinated Action
 Delivery of Superior Customer Value
Market Orientation:
1. Information Acquisition
 Gather relevant information on customers, competition, and markets
 Involve all business functions
 Intuit’s Quicken
2. Inter-functional Assessment: Share information and develop innovative products with people
from different functions
3. Shared diagnosis and action
4. Deliver superior customer value
Market –Driven Strategies:
Distinctive Capabilities:
“Capabilities are complex bundles of skills and accumulated knowledge, exercised through
organizational processes that enable firms to coordinate activities and make use of their assets.”
Market Driven Initiatives:
 Market Sensing Capabilities
 Effective processes for learning about markets
 Sensing: Collected information needs to be shared across functions and interpreted to
determine proper actions.
 Customer Linking Capabilities:
 Create and maintain close customer relationships
Market-Driven Strategy Process:
Markets,
Segments
And Value
Designing
Market-Driven
Strategies
Market-Driven
Program
Development
Implementing
and Managing
Market-Driven
Strategy
Chapter 2
Markets & Competitive Space
Corporate, Business and Marketing Strategy
Corporate Strategy:
 Deciding the Scope and Purpose of the Business
 Business Objectives
 Actions and Resources for Achieving Objectives
Organizational Change:
Corporate Strategy Components:
 Management’s long-term vision for the corporation
 Objectives
 Assets, skills, and capabilities
 Businesses in which the corporation competes
 Structure, systems, and processes
 Creation of value
Business and Marketing Strategy:
 Developing the strategic plan for each business
 Business and marketing strategy relationships
Vertical
Disaggregation
Internal
Redesign
New
Organizational
Forms
Strategic Marketing:
Developing a vision about the markets of interest to the organization, select market target
strategies, setting objectives, and developing, implementing and managing the marketing
program positioning strategies designed to meet the value requirements of customers in each
market target
Marketing Strategy Process:
1. Situation Analysis
2. Designing Marketing Strategy
3. Marketing Program Development
4. Implementing and Managing Marketing Strategy
Marketing Plan Outline:
I. Strategic Situation Summary
Summarize the key points from your situation analysis (market analysis, segments,
industry/competition) in order to recount the major events and provide information to better
understand the strategies outlined in the marketing plan.
II. Market-Targets and Objectives
The market target may be defined demographically (key characteristics only),
geographically, or in social/economic terms. Each market target should have needs and wants
that differ to some degree from other targets. These differences may be with respect to types
of products purchased, use situation, frequency of purchase, and other variations that indicate
a need to alter the positioning strategy to fit the needs and wants of each target.
An objective is a quantified goal identifying what is expected when. It specifies the end
results expected. The objectives should be written for each target market. Objectives should
also be included for the following program components:
1. Product,
2. Price
3. Distribution
4. Promotion (salesforce, advertising, sales promotion, and public relations), and
5. Technical services.
III. Positioning Statements
Write statements that describe how you want each market target to perceive each product
relative to competition. State the core concept used to position the product (brand) in the
eyes and mind of the targeted buyer. The positioning statement should describe: (1) What
criteria or benefits the customer considers when buying a product along with the level of
importance, (2) What we offer that differentiates our product from competition, and (3) The
limitations of competitive products
IV. Market Mix Strategy for Each Market Target
A. Product Strategy
Identify how each product fits the market target. Other issues that may be addressed would
be new product suggestions, adjustments in the mix of existing products, and product
deletion candidates.
B. Price Strategy
The overall pricing strategy (I.e., competitive, premium-priced etc.) should be identified
along with a cost/benefit analysis if applicable. Identify what role you want price to play,
i.e., increase share, maintenance, etc.
C. Distribution Strategy
Describe specific distribution strategies for each market target. Issues to be addressed are
intensity of distribution (market coverage), how distribution will be accomplished, and
assistance provided to distributors. The role of the sales force in distribution strategy should
also be considered.
D. Promotion Strategy
Promotion strategy is used to initiate and maintain a flow of communication between the
company and the market target. To assist in developing the communications program, the
attributes or benefits of our product should be identified for each market target. How our
product differs from competition (competitive advantage) should be listed. The sales force’s
responsibilities in fulfilling the market plan must be integrated into the promotion strategy.
Strategies should be listed for
(1) Personal selling, (2) Advertising, (3) Sales promotion, and (4) Public relations
E. Marketing Research
Describe the market research problem and the kind of information needed. Include a
statement which addresses why this information is needed. The specific market
research strategies can be written once the above two steps have been followed.
V. Coordination with Other Business Functions
Indicate other departments/functions that have responsibilities for implementing the
marketing plan.
VI. Sales Forecasts and Budgets
VII. Contingency Plans
Indicate how your plans should be modified if events should occur that are different from
those assumed in the plan.
Chapter 3
Markets and Competitive Space
Markets and Strategies
 Markets and Strategies are Interlinked
 Value Migration Challenges
 Forming a Shared Vision
Value Migrations:
 Customers shift purchasing to new business designs with enhanced value offering
 Beware of disruptive technologies
 Market sensing and organizational learning are essential
Matching Needs with Product Benefits:
A product – market matches people with needs to the product benefits that satisfy those needs.
“A product – market is the set of products judged to be substitutes within those usage situations
in which similar patterns of benefits are sought by groups of customers.”*
 Product – Market Boundaries and Structure
 Determining Product-Market Structure
Three Characteristics of Markets:
1. Functions or uses of the product
2. The enabling technology of the product
3. Customer segments in the product-market
Defining and Analyzing Markets:
Identifying and Describing End-Users:
 Illustrative buyer characteristics in consumer markets: Family size, age, income,
geographical location, sex, and occupation
 Illustrative factors in organizational markets:
 Type of industry
 Company size
 Location
 Type of products
Buying Decision Process:
 Problem recognition
 Information search
 Alternative evaluation
 Purchase decision
 Post-purchase behavior
Environmental Influences:
 External factors influencing buyers’ needs and wants:
 Government, social change, economic shifts, technology etc.
 These factors are often non-controllable but can have a major impact on purchasing
decisions
Building Customer Profiles:
 Start with generic product – market
 Move next to product- type and variant profiles >>increasingly more specific
 Customer profiles guide decision making (e.g. targeting, positioning, market
segmentation etc.)
Key Competitor Analysis:
 Business scope and objectives
 Management experience, capabilities, and weaknesses
 Market position and trends
 Market target(s) and customer base
 Marketing program positioning strategy
 Financial, technical, and operating capabilities
 Key competitive advantages (e.g., access to resources, patents)
Developing a Strategic Vision about the Future:
 Industry Boundaries Blurring and Evolving
 Competitive Structure and Players Changing
 Value Migration Paths
 Product Versus Business Design Competition
 Firms are Collaborating to Influence Industry Standards
Chapter 4
Strategic Customer Relationship Management
CRM-Customer Relationship Management
CRM is a cross-functional core business process concerned with achieving improved shareholder
value through the development of effective relationships with key customers and customer
segments.
Customer Lifetime Value
Customer lifetime value (CLV) calculates past profit produced by the customer for the firm – the
sum of all the margins of all the products purchased over time, less the cost of reaching that
customer
The Steps in Developing a CRM Strategy:
Gain enterprise
commitment
•Everyone in the firm needs to be supportive of the CRM
initiative beginning with top management.
Build a CRM
project team
•The cross-functional team is the centre of the decision
analysis & action for the CRM process.
Business needs
analysis
•Each company requirements concerning customer
relationships need to be examined.
Define the CRM
strategy
•There are 5 components of CRM strategy that indicates
how different customer segments can be formed &
managed.
Component of CRM Strategy:
Implementation Dangers:
 Implementing Without Developing a Customer Strategy
 Failing to Initiate Necessary Organizational Change
 Allowing Technology to Dominate the CRM Process
 Focusing on the Wrong Customers
CRM
STRATEGY
Enterprise
Transformation
Plan
Other
Stakeholders
Value
Proposition
Business
Case
Customer
Strategy
Value Creation Process:
CRM and Value Chain Strategy:
The Perfect Customer Experience:
The perfect customer experience which must be affordable for the company in the context of the
segments in which it operates and its competition is a relatively new concept. This concept is
now being embraced in industry by companies such as TNT, Toyota’s Lexus, Oce, and Guinness
Breweries, but it has yet to receive much attention in the academic literature. Therefore, multi-
channel integration is a critical process in CRM because it represents the point of co-creation of
customer value. However, a company’s ability to execute multi-channel integration successfully
is heavily dependent on the organization’s ability to gather and deploy customer information,
from all channels and to integrate it with other relevant information.”
The Value
Exchange
Value
Received by
the
Organization
Successful
Value
Exchange
Value
Received by
the
Customer
CRM and Strategic Marketing:
From the perspective of strategic marketing, there are several reasons why CRM is important and
why there should be extensive marketing involvement in decisions about CRM. Importantly, an
organizational perspective is needed in guiding the CRM strategy.
CRM
STRATEGIC
MARKETING
Chapter 5
Capabilities for Learning about Customers and Markets
Market Orientation and Organizational Learning:
 Market orientation perspective includes all relevant sources of knowledge and ideas
 Characteristics of the learning organization
 Learning and competitive advantage
Learning about Markets:
Open-
minded
inquiry
Synergistic
information
distribution
Mutually
informed
interpretations
Keeping and
gaining access
to prior
learning
Types of Marketing Information:
 Marketing research studies
 Standardized information services
 Management information systems
 Database systems
 Decision support systems
 Customer relationship management (CRM) systems
 Competitor intelligence systems
Strategies for Obtaining Information:
Strategy
Alternatives
Collect existing
information
Internal Data
Published
information
Use standardized
research services
Subscription
Single purchase
Conduct
research study
Exploratory
Full-scale
Advantages and Limitations of Questioning Methods:
Advantages Limitations
Personal Interviews
Most versatile and flexible
Long questionnaires handled more easily
Presence of interviewer allows more
flexibility in procedure
More enjoyable for respondents
Fewer refusals
High cost
Possibility of interviewer bias
Possibility of cheating by interviewer due
to lack of supervision
Project time often lengthy
Telephone Interviews
Fewer interviewers needed
Relatively inexpensive
Rapid method of data collection
Can reach large number of households
More control over interviewers
More noncommittal answers
Some households overrepresented
Lengthy and detailed questions often not
Feasible
Mail Surveys
Higher-quality information
Better for collecting information on
possibly embarrassing subjects
Relatively cheaper to conduct
No interviewer bias
Questionnaire cannot be changed
Complex
Can be completed by person other than
intended
Follow-up expensive
Response often slow in coming
Special Research Studies:
Problem
Definition
Information
Required
Research
Method
Sampling
Plan
Questionnaire
Design
Data
Collection
Analysis and
Report
Chapter 6
Market Targeting and Strategic Positioning
 Market Targeting Strategy
 Targeting in Different Market Environments
 Positioning Strategy
 Developing the Positioning Strategy
 Determining Positioning Effectiveness
Market Targeting Strategy:
Market Targeting and Strategic Positioning
 Core dimensions of market-driven strategy: deciding which buyer’s to target and how to
position the firm’s products
 Effective targeting and positioning strategies are essential in gaining and sustaining
superior performance
Targeting Strategy
 Single target or a few broad segments
 Growth Market
 Buyer Diversity
Three Possible Strategies
 Extensive market coverage by firms with established businesses in related markets
 Selective targeting by firms with diversified product portfolios
 Very focused targeting strategies by small organizations serving one or a few market
segments.
Positioning in Perspective:
 Objective
–Match the organization’s distinctive capabilities with the customer value requirements in each
market target (How do we want to be perceived by targeted buyers?)
 Desired result
–Gain a relevant, distinct, and enduring position that is considered important by the targeted
buyers
 Actions by the organization
–Design and implement the positioning strategy (marketing program) for the market target.
Developing the Positioning Strategy
 The positioning concept applies to a specific brand rather than all the competing brands that
compose a product classification
 The concept is used to guide positioning decisions over the life of the brand
 Multiple concepts are likely to confuse buyers and may weaken the effectiveness of
positioning actions
Customer and Competitor Research:
 Research Studies
 Preference Maps
Test Marketing:
 Generates information about commercial feasibility and marketing program
 Provides market (sales forecasts) and effectiveness measures
Positioning Models:
 Incorporates research data into formal models of decision analysis
Positioning Errors:
 Under-positioning – customers have only vague ideas about the company and do not
perceive anything distinctive about it
 Over-positioning – Customers have too narrow an understanding of the company, product, or
brand
 Confused positioning – Frequent changes and contradictory messages confuse customers
 Doubtful positioning – claims made for the product or brand are not regarded as credible
Chapter 7
Strategic Relationships
Strategic Relationships:
 The rationale for inter-organizational relationships
 Types of organizational relationships
 Developing effective relationships between organizations
 Global relationships among organizations
Strategic
Relationship
Suppliers
Customers
Intermediate
Customers
Competitors
Distribution
Channels
Internal
Partnering
Alliances
Joint
Ventures
Types of Organizational Relationships:
Motives Underlying Entry of Firms into Strategic Alliances:
Market entry and market position-related motives
Product-related motives
Product/market-related motives
Market structure modification-related motives
Market entry timing-related motives
Resource extension- and risk-reduction related motives
Focal
Firm
Supplier
Relationship
Lateral
Partnership
Customer
Relationship
Internal
Partnership
Drivers of Inter-organizational Relationships:
How Strategic Relationships Enhance Value
Improved market vision and learning by pooling the knowledge and experience of the
partners
Enhanced customer value by integrating the partner’s unique competencies
Joint analysis of what is required to create superior customer value for specific market
segments
Capitalizing on value migration opportunities that are not feasible for a single organization
Reforming organization structure to gain efficiencies and greater adaptability to change
THE
RATIONALE
Value
Enhancing
Opportunities
Environmental
Turbulence &
Diversity
Competitive
Strategy
Skill and
Resource
Gaps
Strategic Relationship Issues:
 The role of strategic relationships in market-driven strategy
 Moving from hierarchies to process driven structures
 Fit of relationship strategy with organizational design
 Marketing and organizational change
Chapter 8
Innovation & New Product Strategy
Planning For New Products:
 Importance of New Products
 Customer Driven Process
 Steps in New Product Planning
 Idea Generation
 Screening/Evaluating/and Business Analysis
 Product and Process Development
 Marketing Strategy and Market Testing
 Commercialization
 Variation in the Generic Planning Process
Importance of New Products:
 Innovation at top of potential value drivers (Ernst & Young)
Innovation initiatives extend beyond new goods and services to include ideas, processes, and
business practices
 Organizations must build a culture of innovation
Matching Capabilities to Customer Value Opportunities
 Fit between capabilities and product offering
 Transformational Innovations :“new-to-the-world” ideas
 Customers not always the best guides
Characteristics of Successful Innovations:
The Innovation Strategy Spells out Management’s Priorities for New Product Opportunities
 Coordination of new product activities by a high-level general manager
 Inter-functional coordination by a team of new product planning representatives
 Creation of a project task force responsible for new product planning
 Designation of a new products manager to coordinate planning between departments
 Formation of matrix structure for integration new product planning with business
functions
 Creation of a permanent design center
Product Development Process:
 Product Specifications
 Industrial Design
 Prototype
 Use Tests
 Process Development
 Collaborative Development
Marketing Strategy and Market Testing
 Marketing Strategy Decisions
 Market Targeting
 Positioning Strategy
 Market Testing Options
 Simulated Test Marketing
 Scanner – Based Test Marketing
 Conventional Test Marketing
 Testing Industrial Products
 Selecting Test Sites
 Length of the Test
 External Influences
Commercialization:
 The Marketing Plan:
 Complete marketing strategy
 Responsibilities for execution
 Cross – functional approach
 Monitoring and Control
 Real – time tracking
 Role of the Internet
 Include product performance metrics with performance targets
Chapter 9
Strategic Brand Management
A product is anything that is potentially valued by a target market for the benefits or satisfaction
it provides, including objects, services, organizations, places, people, and ideas
Responsibility for Managing Products:
 Product/Brand Management: Planning, managing, and coordinating the strategy for a
specific product or brand
 Product Group/Marketing Management: Product director, group manager, or marketing
manager
 Product Portfolio Management:
 Chief executive at SBU
 Team of top executives
 Tracking Product Performance
Product Life Cycle Analysis:
Relevant issues in PLC analysis include:
 Determining the length and rate of change of the PLC
 Identifying the current PLC stage and selecting the product strategy that corresponds to that
stage
 Anticipating threats and finding opportunities for altering and extending the PLC
Product Grid Analysis:
 Management’s performance criteria
 Strengths and weaknesses relative to portfolio
Brand Positioning Analysis:
 Perceptual maps for brand comparison
 Buyer preferences
Other Product Analysis Methods:
 Information Services
 Research studies
 Financial analysis
Strategies for Improving Product Performance:
 Brand-Building Strategies
 Developing the brand identification strategy
 Coordinate identity across the organization
 Brand Revitalization
 Find new uses for mature brands
 Add products related to heritage
 Strategic Brand Vulnerabilities
 Brand equity can be negative
 Retailer private brands compete with manufacturer brands
 Major shifts in consumer tastes
 Competitive actions
 Unexpected events
Product Mix Modifications:
Motivation for changing the product mix:
 Increase the growth rate of the business
 Offer a more complete range of products to wholesalers and retailers
 Gain marketing strength and economies in distribution, advertising, and personal selling
 Leverage an existing brand position
 Avoid dependence on one product line or category
Chapter 11
Pricing Strategy
Role of Price in Positioning Strategy:
Signal to the Buyer
Marketing
program
Consideratio
ns
Improving Financial
Performance
Instrument
of
Competition
Pricing Strategy for New and Existing Products:
Analyzing the Pricing Situation:
Guide to Cost Analysis:
Determinants of Pricing Flexibility:
Price Positioning:
Competitive Pricing Issues:
Competitive
Pricing
Issues
Diplomacy
rather than
force
Target
segments
instead of
volume
Signaling
Select
competitive
confrontatio
ns
Illustrative Pricing Strategy:
Establishing Pricing Policy and Structure:
 Policy
 Discounts, allowances, returns, and other operating guidelines
 Pricing Structure
 Product mix and line pricing relationships
 How individual items in the line are priced in relation to one another
Low-
active
strategy
High-
active
strategy
Low-
passive
strategy
High-
passive
strategy
Low relative
price
Passive
strategy
High relative
price
Active
strategy
Chapter 12
Promotion, Advertising, and Sales Promotion Strategies
Promotion Strategy:
 The Composition of Promotion Strategy
 Developing a Promotion Strategy
 Communications Objectives
 Deciding the Role of the Promotion Components
 Determining the Promotion Budget
 Promotion Component Strategies
 Integrating and Implementing the Promotion Strategy
 Effectiveness of Promotion Strategy
Promotion Strategy:
Initiating and maintaining a flow of communications between a company (brand) and its market
targets.
Composition of Promotion Strategy:
Developing the Promotion Strategy:
Promotion
Components
Advertising
Personal
Selling
Sales
Promotion
Direct
Marketing
Interactive/
Internet
Marketing
Public
Relations
Market Targeting And Positioning Strategies
Communication Objectives
Role Of Promotion Components
Promotion Budget
Promotion Component Strategies
Integrate And Implement Promotion Component Strategies
Evaluate Effectiveness Of Promotion Strategy
Budgeting Methods:
Advertising Strategy:
Objective
and Task
Percent of
Sales
All You
Can
Afford
Competiti
ve parity
Target
Audience
Advertising
Objectives
Advertising
Budget
Creative
Strategy
Advertising
Media and
Programmi
ng
Schedules
Implement
and
Evaluate
Strategy
Effectivene
ss
Determining Advertising Objectives
1. Does the advertising aim at immediate sales?
2. Does the advertising aim at near-term sales?
3. Does the advertising aim at building a long-range consumer franchise?
4. Does the advertising aim at helping increase sales?
5. Does the advertising aim at some specific step that leads to a sale?
6. How important are supplementary benefits of advertising?
7. Should the advertising impart information needed to consummate sales and build
customer satisfaction?
8. Should advertising build confidence and goodwill for the corporation?
9. What kind of images does the company wish to build?
Creative Strategy:
Sales Promotion Activities and Targets:
Activities include trade shows, specialty advertising, contests, displays, coupons, recognition
programs, and free samples.
Consumer
Buyers
Industrial
Buyers
Channel
Members
Salespeople
Chapter 13
Sales Force, Internet, and Direct Marketing Strategies
Sales Force Strategy:
Determine the role of the
sales force in promotion
strategy
Define the selling process
(how selling will be
accomplished)
Decide if and how
alternative sales channels
will be utilized
Design the sales
organization
Recruit, train, and manage
salespeople
Evaluate performance and
make adjustments where
necessary
Role of Selling in Promotion Strategy
Emphasis devoted
to personal selling
relative to other
promotional tools
The firms mkt.
objectives,
Strategy,
& resources
The target
market
Product
Characteristics
Distribution
policies
Pricing policies
Communicati
ons tasks to
be
accomplished
the
promotion
mix
Account
managem
ent
policies
Specific
Personal
Selling
Activities
required
Strategy Development:
The first step is to determine the role of the internet in the organization’s business and marketing
strategies. The role may involve:
Deciding Internet Objectives:
The capabilities of the internet fall into two broad categories:
 A communications medium
 A direct response medium
The communications features include:
 Creating Awareness and Interest
 Information Dissemination
 Obtaining Research Information
 Brand Building
 Improving Customer Service
Separate business model
A value chain channel
A marketing communication tool, or
advertising medium
Reasons for Using Direct Marketing:
Socio-economic
Trends
Time
Constraints
Convenience
Low Access Costs
Much lower
costs
Enables
selective
targeting
Data Base
Management
Facilitates direct
marketing
initiatives
Value
An attractive
bundle of value
References:
 www.wikipedia.org
 Strategic Marketing 9th
Edition, David W. Cravens & Nigel F. Piercy
 Mc Graw-Hill Education
 www.google.com

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Report on Strategic Marketing Chapter Review [Elegant (VI)]

  • 1. Report On Chapter Reviews of Strategic Marketing (Based on the Study of Strategic Marketing)
  • 2. Report On Strategic Marketing (Course: 512) Topic: Chapter Reviews of Strategic Marketing Prepared for: Dr. Abu Naser Ahmed Ishtiaque Associate Professor Department of Marketing Faculty of Business of Studies University of Dhaka Prepared by: “Elegant (VI)” Section: A Department of Marketing (14th ) Faculty of Business Studies University of Dhaka Date of Submission: 13th October, 2012 eng.
  • 3. Group Profile: “Elegant (VI)” No. Name Roll Designation E-mail Address 1 Md. Abdur Rakib 041 Member rakibrashed@gmail.com 2 Rumana 087 Member jaf.khan98@yahoo.com 3 Md. Al Amin 089 Member duamin_mkt@yahoo.com 4 Anjuman Ara 139 Member anjuman8964@yahoo.com 5 Md. Moben Ahmed 151 Member ms.du.mkt@gmail.com 6 Chowdhury Omor Faruque 173 Leader omor173@yahoo.com
  • 4. Letter of Transmittal: 13th October, 2012 Dr. Abu Naser Ahmed Ishtiaque Associate Professor Department of Marketing University of Dhaka Dear Sir, Here is the report on the topic of Chapter Reviews of Strategic Marketing and the outlines of it (Based on the Study of Strategic Marketing) that you asked us to conduct. Our study of analyzing as well as learning each & every chapter contents, illustrations, idea, core values of topic will help us know about strategic marketing deeply. We appreciate your choosing this report on chapter reviews. If you need any additional information or assistance in the overview of our report, please ask us. Sincerely Yours, “Elegant (VI)” Section: A Department of Marketing (14th ) Faculty of Business Studies University of Dhaka
  • 5. Table of Contents: No. Particulars Page No. 1 Executive Summary v 2 Chapter 1: Imperatives for Market-Driven Strategy 1-3 3 Chapter 2: Markets & Competitive Space 4-8 4 Chapter 3: Markets and Competitive Space 9-11 5 Chapter 4: Strategic Customer Relationship Management 12-15 6 Chapter 5: Capabilities for Learning about Customers and Markets 16-19 7 Chapter 6: Market Targeting and Strategic Positioning 20-22 8 Chapter 7: Strategic Relationships 23-26 9 Chapter 8: Innovation & New Product Strategy 27-29 10 Chapter 9: Strategic Brand Management 30-32 11 Chapter 11: Pricing Strategy 33-37 12 Chapter 12: Promotion, Advertising, and Sales Promotion Strategies 38-42 13 Chapter 13: Sales Force, Internet, and Direct Marketing Strategies 43-46 14 References 47
  • 6. Executive Summary: The report is made on the chapter reviews from the strategic marketing book 9th Edition by David W. Cravens & Nigel F. Piercy. 12 chapters are taken for making reviews for the report. Strategic marketing in companies around the world is confronted with unprecedented challenges and exciting opportunities in the 21st century. Driven by demanding customers with complex value requirements, aggressive global competition, turbulent markets, rapid emergence of disruptive new technologies and global expansion initiatives, marketing strategy has become an enterprise-spanning responsibility with major bottom-line implications. Central to the opportunities generated by these challenges is a critical need to improve executives’ understanding of markets and competitive spaces, customer value delivery, innovation culture, and processes, and effective organizational design. However, reviewing chapters will enrich the knowledge about strategic marketing; markets, segments, and customer value; designing market-driven strategies & market-driven program development.
  • 7. Chapter 1 Imperatives for Market-Driven Strategy Market-Driven Strategy: All business strategy decisions should start with a clear understanding of markets, customers, and competitors. The market and the customers that form the market should be the starting point in shaping business strategy. Characteristics of a Market-Driven Strategy: 1. Becoming Market-Orientation 2. Determining Distinctive Capabilities 3. Customer Value/Capabilities Match 4. Achieving Superior Performance Characteristics of Market Orientation:  Customer Focus: What are the customer’s value requirements?  Competition Intelligence: Importance of understanding the competition as well as the customer  Cross-Functional Coordination: Remove the walls between business functions  Performance Consequences: Market orientation leads to superior organizational performances Becoming a Market-Oriented Organization:  Information Acquisition  Cross-Functional Analysis of Information
  • 8.  Shared Diagnosis and Coordinated Action  Delivery of Superior Customer Value Market Orientation: 1. Information Acquisition  Gather relevant information on customers, competition, and markets  Involve all business functions  Intuit’s Quicken 2. Inter-functional Assessment: Share information and develop innovative products with people from different functions 3. Shared diagnosis and action 4. Deliver superior customer value Market –Driven Strategies: Distinctive Capabilities: “Capabilities are complex bundles of skills and accumulated knowledge, exercised through organizational processes that enable firms to coordinate activities and make use of their assets.” Market Driven Initiatives:  Market Sensing Capabilities  Effective processes for learning about markets  Sensing: Collected information needs to be shared across functions and interpreted to determine proper actions.  Customer Linking Capabilities:  Create and maintain close customer relationships
  • 9. Market-Driven Strategy Process: Markets, Segments And Value Designing Market-Driven Strategies Market-Driven Program Development Implementing and Managing Market-Driven Strategy
  • 10. Chapter 2 Markets & Competitive Space Corporate, Business and Marketing Strategy Corporate Strategy:  Deciding the Scope and Purpose of the Business  Business Objectives  Actions and Resources for Achieving Objectives
  • 11. Organizational Change: Corporate Strategy Components:  Management’s long-term vision for the corporation  Objectives  Assets, skills, and capabilities  Businesses in which the corporation competes  Structure, systems, and processes  Creation of value Business and Marketing Strategy:  Developing the strategic plan for each business  Business and marketing strategy relationships Vertical Disaggregation Internal Redesign New Organizational Forms
  • 12. Strategic Marketing: Developing a vision about the markets of interest to the organization, select market target strategies, setting objectives, and developing, implementing and managing the marketing program positioning strategies designed to meet the value requirements of customers in each market target Marketing Strategy Process: 1. Situation Analysis 2. Designing Marketing Strategy 3. Marketing Program Development 4. Implementing and Managing Marketing Strategy Marketing Plan Outline: I. Strategic Situation Summary Summarize the key points from your situation analysis (market analysis, segments, industry/competition) in order to recount the major events and provide information to better understand the strategies outlined in the marketing plan. II. Market-Targets and Objectives The market target may be defined demographically (key characteristics only), geographically, or in social/economic terms. Each market target should have needs and wants that differ to some degree from other targets. These differences may be with respect to types of products purchased, use situation, frequency of purchase, and other variations that indicate a need to alter the positioning strategy to fit the needs and wants of each target. An objective is a quantified goal identifying what is expected when. It specifies the end results expected. The objectives should be written for each target market. Objectives should also be included for the following program components:
  • 13. 1. Product, 2. Price 3. Distribution 4. Promotion (salesforce, advertising, sales promotion, and public relations), and 5. Technical services. III. Positioning Statements Write statements that describe how you want each market target to perceive each product relative to competition. State the core concept used to position the product (brand) in the eyes and mind of the targeted buyer. The positioning statement should describe: (1) What criteria or benefits the customer considers when buying a product along with the level of importance, (2) What we offer that differentiates our product from competition, and (3) The limitations of competitive products IV. Market Mix Strategy for Each Market Target A. Product Strategy Identify how each product fits the market target. Other issues that may be addressed would be new product suggestions, adjustments in the mix of existing products, and product deletion candidates. B. Price Strategy The overall pricing strategy (I.e., competitive, premium-priced etc.) should be identified along with a cost/benefit analysis if applicable. Identify what role you want price to play, i.e., increase share, maintenance, etc. C. Distribution Strategy Describe specific distribution strategies for each market target. Issues to be addressed are intensity of distribution (market coverage), how distribution will be accomplished, and
  • 14. assistance provided to distributors. The role of the sales force in distribution strategy should also be considered. D. Promotion Strategy Promotion strategy is used to initiate and maintain a flow of communication between the company and the market target. To assist in developing the communications program, the attributes or benefits of our product should be identified for each market target. How our product differs from competition (competitive advantage) should be listed. The sales force’s responsibilities in fulfilling the market plan must be integrated into the promotion strategy. Strategies should be listed for (1) Personal selling, (2) Advertising, (3) Sales promotion, and (4) Public relations E. Marketing Research Describe the market research problem and the kind of information needed. Include a statement which addresses why this information is needed. The specific market research strategies can be written once the above two steps have been followed. V. Coordination with Other Business Functions Indicate other departments/functions that have responsibilities for implementing the marketing plan. VI. Sales Forecasts and Budgets VII. Contingency Plans Indicate how your plans should be modified if events should occur that are different from those assumed in the plan.
  • 15. Chapter 3 Markets and Competitive Space Markets and Strategies  Markets and Strategies are Interlinked  Value Migration Challenges  Forming a Shared Vision Value Migrations:  Customers shift purchasing to new business designs with enhanced value offering  Beware of disruptive technologies  Market sensing and organizational learning are essential Matching Needs with Product Benefits: A product – market matches people with needs to the product benefits that satisfy those needs. “A product – market is the set of products judged to be substitutes within those usage situations in which similar patterns of benefits are sought by groups of customers.”*  Product – Market Boundaries and Structure  Determining Product-Market Structure Three Characteristics of Markets: 1. Functions or uses of the product 2. The enabling technology of the product 3. Customer segments in the product-market
  • 16. Defining and Analyzing Markets: Identifying and Describing End-Users:  Illustrative buyer characteristics in consumer markets: Family size, age, income, geographical location, sex, and occupation  Illustrative factors in organizational markets:  Type of industry  Company size  Location  Type of products Buying Decision Process:  Problem recognition  Information search  Alternative evaluation  Purchase decision  Post-purchase behavior Environmental Influences:  External factors influencing buyers’ needs and wants:  Government, social change, economic shifts, technology etc.  These factors are often non-controllable but can have a major impact on purchasing decisions
  • 17. Building Customer Profiles:  Start with generic product – market  Move next to product- type and variant profiles >>increasingly more specific  Customer profiles guide decision making (e.g. targeting, positioning, market segmentation etc.) Key Competitor Analysis:  Business scope and objectives  Management experience, capabilities, and weaknesses  Market position and trends  Market target(s) and customer base  Marketing program positioning strategy  Financial, technical, and operating capabilities  Key competitive advantages (e.g., access to resources, patents) Developing a Strategic Vision about the Future:  Industry Boundaries Blurring and Evolving  Competitive Structure and Players Changing  Value Migration Paths  Product Versus Business Design Competition  Firms are Collaborating to Influence Industry Standards
  • 18. Chapter 4 Strategic Customer Relationship Management CRM-Customer Relationship Management CRM is a cross-functional core business process concerned with achieving improved shareholder value through the development of effective relationships with key customers and customer segments. Customer Lifetime Value Customer lifetime value (CLV) calculates past profit produced by the customer for the firm – the sum of all the margins of all the products purchased over time, less the cost of reaching that customer The Steps in Developing a CRM Strategy: Gain enterprise commitment •Everyone in the firm needs to be supportive of the CRM initiative beginning with top management. Build a CRM project team •The cross-functional team is the centre of the decision analysis & action for the CRM process. Business needs analysis •Each company requirements concerning customer relationships need to be examined. Define the CRM strategy •There are 5 components of CRM strategy that indicates how different customer segments can be formed & managed.
  • 19. Component of CRM Strategy: Implementation Dangers:  Implementing Without Developing a Customer Strategy  Failing to Initiate Necessary Organizational Change  Allowing Technology to Dominate the CRM Process  Focusing on the Wrong Customers CRM STRATEGY Enterprise Transformation Plan Other Stakeholders Value Proposition Business Case Customer Strategy
  • 20. Value Creation Process: CRM and Value Chain Strategy: The Perfect Customer Experience: The perfect customer experience which must be affordable for the company in the context of the segments in which it operates and its competition is a relatively new concept. This concept is now being embraced in industry by companies such as TNT, Toyota’s Lexus, Oce, and Guinness Breweries, but it has yet to receive much attention in the academic literature. Therefore, multi- channel integration is a critical process in CRM because it represents the point of co-creation of customer value. However, a company’s ability to execute multi-channel integration successfully is heavily dependent on the organization’s ability to gather and deploy customer information, from all channels and to integrate it with other relevant information.” The Value Exchange Value Received by the Organization Successful Value Exchange Value Received by the Customer
  • 21. CRM and Strategic Marketing: From the perspective of strategic marketing, there are several reasons why CRM is important and why there should be extensive marketing involvement in decisions about CRM. Importantly, an organizational perspective is needed in guiding the CRM strategy. CRM STRATEGIC MARKETING
  • 22. Chapter 5 Capabilities for Learning about Customers and Markets Market Orientation and Organizational Learning:  Market orientation perspective includes all relevant sources of knowledge and ideas  Characteristics of the learning organization  Learning and competitive advantage Learning about Markets: Open- minded inquiry Synergistic information distribution Mutually informed interpretations Keeping and gaining access to prior learning
  • 23. Types of Marketing Information:  Marketing research studies  Standardized information services  Management information systems  Database systems  Decision support systems  Customer relationship management (CRM) systems  Competitor intelligence systems Strategies for Obtaining Information: Strategy Alternatives Collect existing information Internal Data Published information Use standardized research services Subscription Single purchase Conduct research study Exploratory Full-scale
  • 24. Advantages and Limitations of Questioning Methods: Advantages Limitations Personal Interviews Most versatile and flexible Long questionnaires handled more easily Presence of interviewer allows more flexibility in procedure More enjoyable for respondents Fewer refusals High cost Possibility of interviewer bias Possibility of cheating by interviewer due to lack of supervision Project time often lengthy Telephone Interviews Fewer interviewers needed Relatively inexpensive Rapid method of data collection Can reach large number of households More control over interviewers More noncommittal answers Some households overrepresented Lengthy and detailed questions often not Feasible Mail Surveys Higher-quality information Better for collecting information on possibly embarrassing subjects Relatively cheaper to conduct No interviewer bias Questionnaire cannot be changed Complex Can be completed by person other than intended Follow-up expensive Response often slow in coming
  • 26. Chapter 6 Market Targeting and Strategic Positioning  Market Targeting Strategy  Targeting in Different Market Environments  Positioning Strategy  Developing the Positioning Strategy  Determining Positioning Effectiveness Market Targeting Strategy: Market Targeting and Strategic Positioning  Core dimensions of market-driven strategy: deciding which buyer’s to target and how to position the firm’s products  Effective targeting and positioning strategies are essential in gaining and sustaining superior performance Targeting Strategy  Single target or a few broad segments  Growth Market  Buyer Diversity Three Possible Strategies  Extensive market coverage by firms with established businesses in related markets  Selective targeting by firms with diversified product portfolios  Very focused targeting strategies by small organizations serving one or a few market segments.
  • 27. Positioning in Perspective:  Objective –Match the organization’s distinctive capabilities with the customer value requirements in each market target (How do we want to be perceived by targeted buyers?)  Desired result –Gain a relevant, distinct, and enduring position that is considered important by the targeted buyers  Actions by the organization –Design and implement the positioning strategy (marketing program) for the market target. Developing the Positioning Strategy  The positioning concept applies to a specific brand rather than all the competing brands that compose a product classification  The concept is used to guide positioning decisions over the life of the brand  Multiple concepts are likely to confuse buyers and may weaken the effectiveness of positioning actions Customer and Competitor Research:  Research Studies  Preference Maps Test Marketing:  Generates information about commercial feasibility and marketing program  Provides market (sales forecasts) and effectiveness measures
  • 28. Positioning Models:  Incorporates research data into formal models of decision analysis Positioning Errors:  Under-positioning – customers have only vague ideas about the company and do not perceive anything distinctive about it  Over-positioning – Customers have too narrow an understanding of the company, product, or brand  Confused positioning – Frequent changes and contradictory messages confuse customers  Doubtful positioning – claims made for the product or brand are not regarded as credible
  • 29. Chapter 7 Strategic Relationships Strategic Relationships:  The rationale for inter-organizational relationships  Types of organizational relationships  Developing effective relationships between organizations  Global relationships among organizations Strategic Relationship Suppliers Customers Intermediate Customers Competitors Distribution Channels Internal Partnering Alliances Joint Ventures
  • 30. Types of Organizational Relationships: Motives Underlying Entry of Firms into Strategic Alliances: Market entry and market position-related motives Product-related motives Product/market-related motives Market structure modification-related motives Market entry timing-related motives Resource extension- and risk-reduction related motives Focal Firm Supplier Relationship Lateral Partnership Customer Relationship Internal Partnership
  • 31. Drivers of Inter-organizational Relationships: How Strategic Relationships Enhance Value Improved market vision and learning by pooling the knowledge and experience of the partners Enhanced customer value by integrating the partner’s unique competencies Joint analysis of what is required to create superior customer value for specific market segments Capitalizing on value migration opportunities that are not feasible for a single organization Reforming organization structure to gain efficiencies and greater adaptability to change THE RATIONALE Value Enhancing Opportunities Environmental Turbulence & Diversity Competitive Strategy Skill and Resource Gaps
  • 32. Strategic Relationship Issues:  The role of strategic relationships in market-driven strategy  Moving from hierarchies to process driven structures  Fit of relationship strategy with organizational design  Marketing and organizational change
  • 33. Chapter 8 Innovation & New Product Strategy Planning For New Products:  Importance of New Products  Customer Driven Process  Steps in New Product Planning  Idea Generation  Screening/Evaluating/and Business Analysis  Product and Process Development  Marketing Strategy and Market Testing  Commercialization  Variation in the Generic Planning Process Importance of New Products:  Innovation at top of potential value drivers (Ernst & Young) Innovation initiatives extend beyond new goods and services to include ideas, processes, and business practices  Organizations must build a culture of innovation Matching Capabilities to Customer Value Opportunities  Fit between capabilities and product offering  Transformational Innovations :“new-to-the-world” ideas  Customers not always the best guides
  • 34. Characteristics of Successful Innovations: The Innovation Strategy Spells out Management’s Priorities for New Product Opportunities  Coordination of new product activities by a high-level general manager  Inter-functional coordination by a team of new product planning representatives  Creation of a project task force responsible for new product planning  Designation of a new products manager to coordinate planning between departments  Formation of matrix structure for integration new product planning with business functions  Creation of a permanent design center Product Development Process:  Product Specifications  Industrial Design  Prototype  Use Tests  Process Development  Collaborative Development Marketing Strategy and Market Testing  Marketing Strategy Decisions  Market Targeting  Positioning Strategy
  • 35.  Market Testing Options  Simulated Test Marketing  Scanner – Based Test Marketing  Conventional Test Marketing  Testing Industrial Products  Selecting Test Sites  Length of the Test  External Influences Commercialization:  The Marketing Plan:  Complete marketing strategy  Responsibilities for execution  Cross – functional approach  Monitoring and Control  Real – time tracking  Role of the Internet  Include product performance metrics with performance targets
  • 36. Chapter 9 Strategic Brand Management A product is anything that is potentially valued by a target market for the benefits or satisfaction it provides, including objects, services, organizations, places, people, and ideas Responsibility for Managing Products:  Product/Brand Management: Planning, managing, and coordinating the strategy for a specific product or brand  Product Group/Marketing Management: Product director, group manager, or marketing manager  Product Portfolio Management:  Chief executive at SBU  Team of top executives  Tracking Product Performance Product Life Cycle Analysis: Relevant issues in PLC analysis include:  Determining the length and rate of change of the PLC  Identifying the current PLC stage and selecting the product strategy that corresponds to that stage  Anticipating threats and finding opportunities for altering and extending the PLC
  • 37. Product Grid Analysis:  Management’s performance criteria  Strengths and weaknesses relative to portfolio Brand Positioning Analysis:  Perceptual maps for brand comparison  Buyer preferences Other Product Analysis Methods:  Information Services  Research studies  Financial analysis Strategies for Improving Product Performance:  Brand-Building Strategies  Developing the brand identification strategy  Coordinate identity across the organization  Brand Revitalization  Find new uses for mature brands  Add products related to heritage  Strategic Brand Vulnerabilities  Brand equity can be negative  Retailer private brands compete with manufacturer brands  Major shifts in consumer tastes
  • 38.  Competitive actions  Unexpected events Product Mix Modifications: Motivation for changing the product mix:  Increase the growth rate of the business  Offer a more complete range of products to wholesalers and retailers  Gain marketing strength and economies in distribution, advertising, and personal selling  Leverage an existing brand position  Avoid dependence on one product line or category
  • 39. Chapter 11 Pricing Strategy Role of Price in Positioning Strategy: Signal to the Buyer Marketing program Consideratio ns Improving Financial Performance Instrument of Competition
  • 40. Pricing Strategy for New and Existing Products: Analyzing the Pricing Situation:
  • 41. Guide to Cost Analysis: Determinants of Pricing Flexibility:
  • 42. Price Positioning: Competitive Pricing Issues: Competitive Pricing Issues Diplomacy rather than force Target segments instead of volume Signaling Select competitive confrontatio ns
  • 43. Illustrative Pricing Strategy: Establishing Pricing Policy and Structure:  Policy  Discounts, allowances, returns, and other operating guidelines  Pricing Structure  Product mix and line pricing relationships  How individual items in the line are priced in relation to one another Low- active strategy High- active strategy Low- passive strategy High- passive strategy Low relative price Passive strategy High relative price Active strategy
  • 44. Chapter 12 Promotion, Advertising, and Sales Promotion Strategies Promotion Strategy:  The Composition of Promotion Strategy  Developing a Promotion Strategy  Communications Objectives  Deciding the Role of the Promotion Components  Determining the Promotion Budget  Promotion Component Strategies  Integrating and Implementing the Promotion Strategy  Effectiveness of Promotion Strategy Promotion Strategy: Initiating and maintaining a flow of communications between a company (brand) and its market targets.
  • 45. Composition of Promotion Strategy: Developing the Promotion Strategy: Promotion Components Advertising Personal Selling Sales Promotion Direct Marketing Interactive/ Internet Marketing Public Relations Market Targeting And Positioning Strategies Communication Objectives Role Of Promotion Components Promotion Budget Promotion Component Strategies Integrate And Implement Promotion Component Strategies Evaluate Effectiveness Of Promotion Strategy
  • 46. Budgeting Methods: Advertising Strategy: Objective and Task Percent of Sales All You Can Afford Competiti ve parity Target Audience Advertising Objectives Advertising Budget Creative Strategy Advertising Media and Programmi ng Schedules Implement and Evaluate Strategy Effectivene ss
  • 47. Determining Advertising Objectives 1. Does the advertising aim at immediate sales? 2. Does the advertising aim at near-term sales? 3. Does the advertising aim at building a long-range consumer franchise? 4. Does the advertising aim at helping increase sales? 5. Does the advertising aim at some specific step that leads to a sale? 6. How important are supplementary benefits of advertising? 7. Should the advertising impart information needed to consummate sales and build customer satisfaction? 8. Should advertising build confidence and goodwill for the corporation? 9. What kind of images does the company wish to build? Creative Strategy:
  • 48. Sales Promotion Activities and Targets: Activities include trade shows, specialty advertising, contests, displays, coupons, recognition programs, and free samples. Consumer Buyers Industrial Buyers Channel Members Salespeople
  • 49. Chapter 13 Sales Force, Internet, and Direct Marketing Strategies Sales Force Strategy: Determine the role of the sales force in promotion strategy Define the selling process (how selling will be accomplished) Decide if and how alternative sales channels will be utilized Design the sales organization Recruit, train, and manage salespeople Evaluate performance and make adjustments where necessary
  • 50. Role of Selling in Promotion Strategy Emphasis devoted to personal selling relative to other promotional tools The firms mkt. objectives, Strategy, & resources The target market Product Characteristics Distribution policies Pricing policies Communicati ons tasks to be accomplished the promotion mix Account managem ent policies Specific Personal Selling Activities required
  • 51. Strategy Development: The first step is to determine the role of the internet in the organization’s business and marketing strategies. The role may involve: Deciding Internet Objectives: The capabilities of the internet fall into two broad categories:  A communications medium  A direct response medium The communications features include:  Creating Awareness and Interest  Information Dissemination  Obtaining Research Information  Brand Building  Improving Customer Service Separate business model A value chain channel A marketing communication tool, or advertising medium
  • 52. Reasons for Using Direct Marketing: Socio-economic Trends Time Constraints Convenience Low Access Costs Much lower costs Enables selective targeting Data Base Management Facilitates direct marketing initiatives Value An attractive bundle of value
  • 53. References:  www.wikipedia.org  Strategic Marketing 9th Edition, David W. Cravens & Nigel F. Piercy  Mc Graw-Hill Education  www.google.com