S2: MARKETING PROCESS AND STRATEGY

Marketing Management:
Section E (2013-14)
Prof. Avinash Mulky
Quick review of Session 1
Marketing
Customer acquisition, customer retention, building strong brands,
customer advocacy
Basic Marketing concepts
Needs, wants, value, satisfaction, segmentation, brand, brand image,
differentiation
Involvement: Enduring, situational, low involvement, high involvement
Consumer buying behaviour: picking, habit, variety seeking, impulse
buying, extended problem solving, dissonance reduction
Marketing excellence:
Success principles; execution
Why do consumers buy something?...Benefits USER
Utilitarian benefits (or value)
Tangible consequences of using the product
Physical consequences or effects in the physical world
Social benefits (or value)
Helps to manage consumers social world
Fitting in with the group, projecting a good image
Ego/Identity benefits (or value)
Helps structure self concepts, sense of ego, ideas of who we are
Recreational (or Hedonic) benefits (or value)
Removes boredom, fatigue, stimulates the senses and mind
Why do consumers buy something2 Motivation
Motivation
Drive to do something
Human drive to attain a goal (or goal object)
Drive
Force that impels us to act
Goal object
Something whose achievement or attainment will bring happiness by
reducing our current discomfort
Why do consumers buy something2 Emotions
Emotions
Sudden surge of feelings
A sudden surge of feelings can act as a strong drive
Most emotions are non-verbalizable (although our faces and body
communicate our feelings)
Classifying emotions
Joy, Acceptance, Fear, Surprise, Sadness, Disgust, Anger, Anticipation
Moods
Emotions felt less intensely
Moods too have impact on consumer behaviour
Motivation
Actual state
Desired state
Tension
(Felt
discomfort)
Drive
(Energy)
Goal object
(Something
that reduces
discomfort)
Source: Mittal et al (2008)
Motivations
Emotions
Needs
Swagruha Foods: Some questions
What is the companys orientation toward the marketplace?
Production? Product? Selling? Marketing? Holistic marketing?
What is the original business idea? Company mission?
What are the strengths and weaknesses of Swagruha? What
are the companys opportunities and threats?
What are the growth strategies available to Swagruha?
Suggest Marketing Strategy for Swagruha
Original business
idea and defining
the companys
mission
Strategic
objectives and
growth
strategies
Major strategies
Operations
Marketing
Finance
People
Managing day to
day and long
term
Swagruha: Entrepreneurial growth
Swagruha Foods : Defining the company mission
Company Product-oriented definition Market-oriented definition
Google We provide the worlds best
online search engine
We help you organize the
worlds information and make it
universally accessible and useful
Nokia We sell mobile phones We connect people
Hindustan
Unilever
We make soaps, detergents,
personal care and food products
We meet everyday needs for
nutrition, hygiene and personal
care with brands that help
people feel good, look good and
get more out of life.
Swagruha Foods
Strategic objectives and growth strategies
Internal
External
Positive Negative
Strengths:
Internal capabilities
that help a company
reach its objectives
Weaknesses:
Internal limitations
that may prevent a
company in reaching
its objectives
Opportunities:
External factors that
the company may
exploit to its
advantage
Threats:
Current and emerging
external factors that
may challenge the
company
SWOT Analysis
Strategic objectives and growth strategies
New
markets
Existing
markets
Existing
products
New
products
Market
penetration
Market
development
Product
development
Diversification
Developing marketing strategy
Ideas
1. Market
penetration
2. Product
Development
3. Market
Development
4. Diversification Is this wise given mission and available resouces?