Marketing Strategies

• A Strategic planning process consists of a system of;

• Setting objectives
• Setting plans
• Allocation of resources for achieving objectives through the plans
• Always ready to respond to changes in marketplace
• Strategic planning is done at three levels;
1. Corporate level – deciding which markets to compete in,
establishing corporate objectives, acquiring resources and
allocation of resources to achieve objectives
2. Business level – How and what basis the company will
compete in the market. It provides guidance to coordinate
various functional areas (e.g. Production, Marketing, R & D,
Finance, HR)
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3. Functional level – development of short term strategies to

implement and execute the plans made at corporate and
business level
Strategic Planning of Industrial Products
• Though basic principles are the same as with consumer products,
some differences are;
1. Distribution – whereas consumer products are marketed
through one or two channels and the similar channels are used
in all markets, in the case of industrial products, channels differ
from one market to another markets as also the products are
tailor-made to customers’ requirement. The customers also
sometimes need to be dealt differently for the same product.
2. Marketing Mix – Consumer Marketing is normally contained
with Advertising and Sales Promotions, Selling, Product
Management etc. while Industrial Marketing involves different
approach since it may involve engineering, manufacturing,
technical services, specially for custom made items
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3. Organisation / Functional Involvement

• Organisation design has to be different than consumer
products
• Overall service levels have to be much higher than
consumer products
• Functional involvement is much higher at all levels than
in consumer products
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Role of Marketing in Strategic Planning Process

1. Role at both corporate and business levels
2. Generate ideas for new product development
3. To assess the present conditions prevailing in the
market and give analysis of the forces that are likely to
impact these in future i.e. to realistically assess the
market continuously and give the feedback to
management
4. Set Marketing objectives – sales volumes, market share,
margins and profitability or the ROI / Payback Period
5. Formulate Marketing Strategies
a. Analysis of existing business
b. Diversification plans
c. New Product planning
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A successful strategy is therefore ability to;

• Identify
• Analyse and
• Evaluate attractive market segments

Segmentation
• Market segmentation is the process of dividing markets into
distinctive groups of buyers, whose response to products,
requirements of marketing mix is same or similar
• Thus by segmentation you can;
1. Make group/segment of the markets
2. Develop profile of each segment
3. Evaluate attractiveness of each segment
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In industrial marketing grouping may be little difficult as;

• Each buyer has different set of criteria of product
specifications
• Quality standards
• Different buyers / influencers involved into the process
but the process still has some distinctive advantages;
• Seller can find and compare opportunities better
• Can create different approach / strategy for different buyers
• Budgeting is more realistic and can be done for each
customers depending upon the type and needs of the
customers
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One must however ensure that the variables used for study and
analysis of segmentation must be;
• Measurable – the information being gathered must be
measurable
• Relevant – to the objectives and product of the company
• Operational – must be operational with respect to pricing,
distribution and approach to customers
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Basis of Segmentation
Segmentation is done on the following basis;
• Macro Analysis
• Size of customer
• Its plant’s size / age / technology used
• Economic factors affecting the customers’ industry
• Competition between the customer and its competitors
• Suppliers and their competitive strengths
• The buyer having individual unit buying or centralised buying
etc.
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• Micro Analysis
• The stage of buying e.g. New Task / Modified Task / Straight re-
buy
• Dependence on suppliers and its (suppliers’) technologies
• Innovative or a follower
• Technical and Financial capability
• Cost and capital requirement
• Durability of business
• Inventory systems
• Buying systems – wants bids and offers every-time it buys or
wants to develop stable and long term relations
• Who are the key buyers and influencers in the organisations
• What is the PLC stage
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• Evaluating the segments – done in two steps;

1. Segment profitability –
• What is the market potential
• What is the sales potential
• Expected profitability by estimating the revenue and
cost of servicing and maintaining the customers
2. Competitors analysis – do a SWOT analysis
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Target Marketing
• With proper analysis of segmentation, the next step would be to finalise
which markets to be targeted
• It may not be possible to take all the segments in one go
• While starting with a new product, it is always better to start with one
segment or market and then slowly go into other segments after the
product is established
• The company may however use any or a combination of the following
strategies for targeting;
1. Undifferentiated
2. Differentiated
3. Concentrated
4. Niche marketing
• However in the case of Industrial Product, targeting should be on the
basis of findings of the segmentations, the segments selected and the
strengths of the organisation viz. a viz. the requirements of the customers
and the competition
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Product Positioning
• The companies must position its products in the markets
that they select to serve
• The variables for developing positioning strategies are;
1. Product (its features, reliability, quality, price etc)
2. Superiority over other competitors with respect to Pre &
Post Sales Service
3. Approach to solving customers’ problems
4. Guidance, teaching and help to customers in using the
product or its technology
5. Development of new product and
6. Introduction of new technology

A COMMITMENT TO ALL ABOVE IS VERY NECESSARY