Marketing Strategy | Customer Relationships | Integrated Marketing Mix | Chapter 2 B | Lecture 5 Video Lecture | Understand Marketing Strategy: Grow your Business - Sales

all right friends welcome back we
continue in Chapter two and in this
chapter I wanted to continue with the
BCG growth-share matrix now the star are
high growth and high share businesses or
products requiring heavy investment okay
let's talk about this in terms of
investment to finance rapid growth okay
so don't take the star easily that's
what they're trying to say you have to
keep investing in it because it's going
to definitely return you your investment
they will eventually turn into cash cows
okay so stars should be able to turn
into cash cows cash cows are low growth
high share businesses or products that
are established and successful as we use
that is strategic business units
requiring less investment to maintain
market share and this is what you want
you don't want to keep putting money in
to get money out you want to be able to
maintain it in such a way that it keeps
returning money so it becomes a cash cow
question marks are low share business
units and high growth markets require
the Lord of cash to hold assure
maintenance is a very very tricky
business here and growth rate is also
high provided you put in a lot of money
dogs have low growth low share
businesses and products that may
generate enough cash to maintain
themselves but not promised large
sources of cash okay so these are all
the strategic decisions that you need to
take before you can work on any kind of
extra products extra product lines extra
service lines etc all right next we have
company-wide strategic planning problems
and matrix approaches so what we have
here is problems with matrix approaches
of a matrix like the previous one that
you saw
all is being used commonly but there are
problems with the approaches for example
difficulty in defining s be use and
measuring market share and growth okay
time-consuming expensive focus on
current businesses nor future planning
so as we use grocery market metrics are
not very you know feasible so they are
feasible for certain areas but not
feasible for others so you need to be
able to work on them
next you have company-wide strategic
planning in company-wide strategy
planning you develop some strategies for
growth and downsizing product market
expansion grid is a portfolio planning
tool for identifying company growth and
opportunities through market penetration
market development product development
and diversification product market
expansion grid is another matrix that
you can use and it helps in these areas
here ok so let's look at that developing
strategies for growth and downsizing so
market penetration is a growth strategy
increasing sales to current market
segments without changing the product
market development is a growth strategy
identifying and developing new market
segments for current products so market
segment is the section of the community
that is your target market and market
penetration is increasing sales in these
market segments by many other methods
for example you know if you must have
seen you know in if you go to any store
if you see the sales people outside the
store offering you you know physically
offering you something to try out for
example you know a cake or something and
to encourage you to come inside the
market and check out and give out
coupons or give out any kind of you know
offers they are physically outside to
bring you inside the store so such
efforts would help in market penetration
which means that you're not changing the
product or so
inside the store you are just increasing
the sales from the target market market
development is a growth strategy
identifying and developing new market
segments for current products so you
have new market segments okay which
means that you have more people more
market segments and you are trying to
develop new products for those segments
okay we have product development which
is a growth strategy through offering
new or modified products to current
market segments which means that you
have you offer new or modified products
okay which means that you improve the
product line you talk to the people
there you talk to the current company
community you talk to this market
segment and ask them what they need if
they need something you develop that and
if they ask for improvements you provide
that in your current products now
versification is a growth strategy
through starting up or acquiring
businesses outside the company's current
products and markets so you know
diversification is usually offering
something completely new completely
different okay and diversification helps
you improve your market and helps you
increase your customer share okay next
you have downsizing downsizing is the
reducing of business portfolio by
eliminating products or businesses
business units that are not profitable
or that no longer fit the company's
overall strategy so that's called
downsizing which means that you get rid
of products and services that do not
help you in your growth okay and many
people they do that you must have seen
signs like going out of stock or
something like that so that is what's
known as downsizing then you have
partnering with other company
departments value chain is a series of
departments that carry out
are you creating activities to design
produce market deliver and support or
forms products so within an organization
you may have several creative
departments that actually add value to
your products some of them would be
responsible for advertising some of them
would be responsible for tech based
marketing and many other things so these
value chain departments they offer
unique strategies and unique methods to
improve your current business value
delivery network is made up of the
company suppliers distributors and
ultimately the customers who partner
with each other to improve performance
of the entire system so this is a value
delivery network is the entire business
internal and external environment
including the customer that will improve
the business if you look at the
marketing mix as I mentioned at the
beginning of the chapter the marketing
mix or marketing strategy these two
terms are the most important
terminologies in any business or
marketing course marketing mix it is
composed of product price place and
promotion okay and targeting
differentiation and positioning
segmentation these are the marketing
strategies okay and marketing strategy
involves two-way questions which
customers will serve segmentation and
targeting and how will we create value
for them differentiation and positioning
then the company designs a marketing
program the four PS these are the four
PS product price place and promotion
that delivers the intended value to
target consumers okay at its core
marketing is all about creating customer
value and profitable customer
relationships so that's all you need to
create customer value and relationships
okay consumers are
always at the center the goal is to
create value for customers and build
profitable customer relationships
next comes the marketing strategy okay
the marketing logic by which the company
hopes to create this customer value and
achieve these profitable relationships
the company decides which customer it
will serve which is called segmentation
and targeting and how differentiation
and positioning that's what it means
which customers and how okay it
identifies the total market then divides
it into smaller segments selects the
most promising segments focuses on
serving and satisfying the customers in
these segments guided by marketing
strategy the company designs an
integrated marketing mix an integrated
marketing mix up mix made up of factors
under its control product price place
and promotion find the best marketing
strategy and makes the company engages
in marketing analysis planning
implementation and control through these
activities the company watches and
adapts to the actors and forces in the
marketing environment okay let's see
what happens how you can bring this all
together let's look at the definitions
of each of these words that we worked on
in the previous slide market
segmentation is the division of a market
into distinct groups of buyers who have
distinct needs characteristics or
behavior and who might acquire separate
products or marketing mixes so that is
known as market segmentation it is
dividing your immediate or service
community the community that you're
going to serve in two different groups
okay is the division of a market in two
distinct groups of behaviors who have
distinct needs characteristic
or behavior and who might require
separate products or marketing mixes
market segment is a group of consumers
who respond in a similar way to a given
set of marketing efforts for example you
know it could be all ladies who are in
their 40s and whose children are usually
grown up and they are alone at home in
the mornings these are housewives and
this is a market segment and if you
create a product for them all of these
women with these same characteristics
would respond positively which means
that they would buy the product okay
next you have market targeting market
targeting is the process of evaluating
each market segments attractiveness and
selecting one or more segments to enter
for example the h40 group and then if
you have something similar with the say
at home retired people so these are like
similar markets maybe some products that
are provided to stay at home retire
people you can also provide to stay at
home housewives okay so these are
similar market segments that can respond
similarly if given a product okay
and this is known as market targeting
market positioning is the arranging of a
product to occupy a clear distinctive
and desirable place relative to
competing products in the minds of the
target consumer so you position your
product for example you know a face
cream product you will position it next
to the leading face creams so the
customer has the a very clear image of
your product or service that you know
they should have a product to compare it
with okay and if they are using that
product currently they should be easily
able to switch it from this product and
move to your product okay marketing
is the set of controllable tactical
marketing tools product price place and
promotion that deform blends to produce
the response it wants in the target
market
it's a controllable tactical marketing
tools for example product price place
and promotion product face cream price
$20 place next to the leading face cream
that's new to China for example Nivea
and promotion how you can promote it
are you using Facebook Twitter Instagram
or you are using other forms of
marketing for example advertisement on a
local bus or stuff like that so this is
how you create a marketing mix okay
let's look at the four PS in detail the
four PS of the marketing mix are product
price promotion place and all of them
are to towards target customers and
intended positioning so you have product
which has variety quality design
features brand name and packaging
services then you have price it's a list
price discounts allowances payment
period rank query terms all of these are
associated with price then you have
channel's coverage assortments locations
inventory transportation logistics all
of these elements related to place then
you have promotion advertising personal
selling sales promotion and public
relations all of these are related to
promotion it is a twisting to ask how to
make froakie's more customer-centric
which means that how can you create
product price place and promotion more
closely related to the customer
ok this leads to redefining of the four
PS to the four C's which means customer
centric so product customer solution
price customer cost place convenience
promotion communication so that's what
it means if you have a product you must
think in terms of providing a solution
to the customer face cream okay this is
for the winter for example it's winter
and the skin is dry so it's providing
moisturizing in the winter months price
customer costs okay price is $20 and
customer is also willing to pay $20 for
their price place convenience it is
distributed across all drug stores and
grocery stores so it's easy for the
customer to buy the product and then
promotion how are you going to
communicate the benefits of the product
or service how are you going to
communicate the benefits of the product
or service how are you going to market
the product or service all right let's
take this a step further in the next
topic and up next I am going to talk to
you more about product price place and
promotion but the only thing is that we
are going to be talking about how you
can manage your market effort if you are
promoting a product how you can manage
it so that you know the promotion's may
continue and then we are at a higher
quality they are able to reach the
target audience okay let's pause this
video here and let's get back to chapter
2 again chapter 2 see in the next video
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