It refers to the design, implementation and control of programs to increase the acceptability of a social cause or practice among people e.g. It refers to providing additional services by way of innovative offerings and benefits to the customers to increase his level of satisfaction e.g.
Marketing through various advertising media that interact directly with consumers, generally calling for the consumer to make a direct response, e.g. Marketing through creating, maintaining and enhancing strong long-term relationships with customers in order to win his loyalty e.g.
It is applying the concepts, tools and techniques of marketing to services like banking, insurance, retailing, educational etc. It consists of activities undertaken to create, maintain or change attitudes or behavior towards particular people like politicians, sports stars, film stars, professionals to promote their careers and income.
It consists of activities undertaken to create, maintain or change attitudes and behavior of target audiences towards an organisation. Place marketing involves activities undertaken to create, maintain, or change attitudes and behavior towards particular places e.g. A market-coverage strategy in which a firm decides to target different markets through different strategies or offers e.g.
It refers to balancing the fluctuations in irregular demand for a product due to seasons, timings etc, through flexible pricing, promotion and other incentives e.g. Marketing strategies to reduce demand temporarily or permanently, not to destroy demand but only to shift it e.g. Yuvraj Singh Reveals What Andrew Flintoff Said Before He Hit 6 Sixes, Sledging At Its Best! Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Describe the different types of product strategies and market entry strategies that companies pursue. ObjectivesobjectivesWhat organizations want to accomplish (the end results) in a given time frame.
Objectives help guide and motivate a companya€™s employees and give its managers reference points for evaluating the firma€™s marketing actions. A firma€™s marketing objectives should be consistent with the companya€™s objectives at other levels, such as the corporate level and business level. Firms often use multiple strategies to accomplish their objectives and capitalize on marketing opportunities. A marketing planmarketing planA document that is designed to communicate the marketing strategy for an offering. The different types of product and market entry strategies a firm can pursue in order to meet their objectives. Market penetration strategiesmarket penetration strategySelling more of existing products and services to existing customers. Product development strategiesproduct development strategyCreating new products or services for existing markets. Market development strategiesmarket development strategySelling existing products or services to new customers.
New markets can include any new groups of customers such as different age groups, new geographic areas, or international markets.
Firms can also licenselicenseSell the right to use some aspect of the production process, trademark, or patent to individuals in foreign markets., or sell the right to use some aspect of their production processes, trademarks, or patents to individuals or firms in foreign markets. The front of a KFC franchise in Asia may be much larger than KFC stores in the United States. FranchisingfranchisingGranting an independent operator the right to use your companya€™s business model, techniques, and trademarks for a fee.
Contract manufacturingcontract manufacturingWhen companies hire manufacturers to produce their products in another country.
Joint venturesjoint ventureAn entity that is created when two parties agree to share their profits, losses, and control with one another in an economic activity they jointly undertake.
Diversification strategiesdiversification strategyOffering products that are unrelated to other existing products produced by the organization. The strategic planning process includes a companya€™s mission (purpose), objectives (end results desired), and strategies (means). Pricing can be defined as the process of determining what a company will receive from its customers in exchange for the products or services it sells. Following are some types of pricing strategies that can be adopted by a company to achieve its goals in accordance with its business nature. Many companies design new products or often some sorts of services first time in the market. Skimming pricing strategy adopted by a company which enters into the market with a new and innovative product. The best example is manufacturers of digital watches who used a skimming approach in the 1970s. Cost of production should be low so company can generate revenue after offering high prices. Penetration pricing strategy is adopted by a company who is heading towards the launch of a new product that is already available in the market. In Premium Pricing Strategy the company produces a high quality product or unique brand and offers at a highest price. This pricing strategy treats generic or economy-type brands with a low price but for quality products.

This approach is adopted by a company wants the customers to respond on an emotional basis, rather than rational basis. Geographical pricing is adopted by a company while setting prices for different geographical location in a country or in different parts of the world. Summing up all a company should thoroughly analyze its product, its buyers, its competitors (and possible actions and reactions of these factors), and its market before company decide which pricing strategy would best-fit for the company products or services.
If a company will adopt effective pricing strategies, it will become able to secure better market shares and enhanced profits. Hindustan Unilever offers different types and qualities soaps for different markets and customers. Super stores may offer no discounts on Saturdays, Sundays and holidays to reduce over­crowd. Although many organizations publish their mission statements, most for-profit companies do not publish their objectives. An example of a marketing objective for PepsiCo might be a€?to increase by 4 percent the market share of Gatorade by the end of the year.a€? The way firms analyze their different divisions or businesses will be discussed later in the chapter.
For example, in addition to pursuing a low cost strategy (selling products inexpensively), Walmart has simultaneously pursued a strategy of opening new stores rapidly around the world.
The purpose of the plan is to influence executives, suppliers, distributors, and other important stakeholders of the firm so they will invest money, time, and effort to ensure the plan is a success. Many companies, including PepsiCo and Hyundai, have entereda€”and been successful ina€”rapidly emerging markets such as Russia, China, and India.
Licensing is a popular strategy, but firms must figure out how to protect their interests if the licensee decides to open its own business and void the license agreement. It is very important for a company to manage its pricing strategies in allegiance with the requirements of industry in which company operates, the markets in which company supply its products, the customers with whom company transact and the objectives that company wants to achieve. Price skimming allows a company to market its new or innovative product at a reasonably high price, as initially company does not have competitors' concerns.
After entrance of other manufacturers in the market as watches were produced at a lower per unit cost, other marketing strategies and pricing approaches are implemented by initial manufacturers. This pricing strategy is commonly used for luxury items or high end and high value goods, like expensive jewelry, boats, planes, estates, Savoy Hotel rooms, Cunard Cruises, and first class air travel. Company approach to economy pricing strategy must be rooted in a low cost structure, minimal promotion, minimal features, but still solid (not extravagant) benefits.
So there is a variation in price for same product of a company in different parts of the world.
Product life cycle and the change in the competitive environment always have great impacts on Pricing Strategies of a particular company.
Pricing, if managed effectively by a particular company may also lead it towards market leadership. In order for you to see this page as it is meant to appear, we ask that you please re-enable your Javascript!
In addition to being accomplished within a certain time frame, objectives should be realistic (achievable) and be measurable, if possible.
Accomplishments at each level of the organization have helped PepsiCo meet its corporate objectives over the course of the past few years. Successful strategies help organizations establish and maintain a competitive advantage that competitors cannot imitate easily.
Many companies develop marketing strategies as part of their general, overall business plans.
Companies often offer consumers special promotions or low prices to increase their usage and encourage them to buy products. A new product can be a totally new innovation, an improved product, or a product with enhanced value, such as one with a new feature.
Exporting, licensing, franchising, joint ventures, and direct investment are methods that companies use to enter international markets. As FigureA 2.12, a€?Product and Market Entry Strategiesa€? shows, there are different ways, or strategies, by which firms can enter international markets.
The French luggage and handbag maker Louis Vuitton faced this problem when it entered China. Franchisees pay a fee for the franchise and must adhere to certain standards; however, they benefit from the advertising and brand recognition the franchising company provides. The manufacturers are provided specifications for the products, which are then manufactured and sold on behalf of the company that contracted the manufacturing. For example, In Bev, the Dutch maker of Becka€™s beer, was able to capture market share in the United States by purchasing St.
Firms that have little experience with different markets or different products often diversify their product lines by acquiring other companies. Every company sell either a product or a service, and all companies have to choose the price to sell their products or services at, which is difficult choice than most people realize. Ultimately every company exists to make money, so the general aim of pricing strategies is to maximize the profit that the company can make. However, skimming pricing is a short- term pricing strategy because competitors gradually enter in the market with their substitute products. So penetration pricing allows a company to market its product at such a lower competitive price, through which company can secure some of the market share and also exploit the loyal customers of its competitors. Company can only use this pricing strategy if its product's value is recognized by customers (market) as being a premium or luxury good.
In economic pricing strategies usually adopted when the customers of the company or brand are those who seek quality (quality conscious) and those who seek lower price (prices conscious).

Surplus price is also a best example of psychological price for example I student is going to appear in an exam and near the examination hall there is one stationery shop now if he need a pen or clip board he is willing to pay more for a pen or clip board than usual or normal price. So, company also needs to review its pricing strategy on a regular basis to make sure that the fit remains the best. PepsiCoa€™s business units (divisions) have increased the number of their facilities to grow their brands and enter new markets. PepsiCo attempts to sustain its competitive advantage by constantly developing new products and innovations, including a€?mega brands,a€? which are eighteen individual brands that generate over $1 billion in sales each.
When Frito-Lay distributes money-saving coupons to customers or offers them discounts to buy multiple packages of snacks, the company is utilizing a penetration strategy.
Cell phones that allow consumers to charge purchases with the phone or take pictures are examples of a product with enhanced value. Competitors started illegally putting the Louis Vuitton logo on different products, which cut into Louis Vuittona€™s profits. Contract manufacturing may provide tax incentives and may be more profitable than manufacturing the products in the home country. Some countries such as China often require companies to form a joint venture with a domestic firm in order to enter the market. Diversification can be profitable, but it can also be risky if a company does not have the expertise or resources it needs to successfully implement the strategy.
The different product market strategies firms pursue include market penetration, product development, market development, and diversification. But companies face some difficulties to set the price for its products and services for the first time.  Top level management of the company considers many factors and decides either to go with marketing skimming price or market penetrating price. Then company needs to initial high price of the product needs adjustment in allegiance with the make adjustments allegiance with the market conditions, for maintaining its market share. This strategy is effective in gaining the market share and helps in attracting a large number of buyers.
Consumers might practice a decision avoidance approach when buying products in an unfamiliar market, like if in summer you entered in a new market and want to eat ice-cream, what you would like, an ice cream at USD 7, USD 12 or 20? In some countries tax more on alcohol or petrol in order to increase revenue, so price will be high.
You have probably set objectives for yourself that you want to achieve in a given time frame. PepsiCoa€™s beverage and snack units have gained market share by developing healthier products and products that are more convenient to use. Wea€™ll overview marketing plans here and discuss them more completely in ChapterA 16, The Marketing Plan. The marketing plan also helps the firm allocate resources and divvy up the tasks that employees need to do for the company to meet its objectives. The Campbell Soup Company gets consumers to buy more soup by providing easy recipes using their soup as an ingredient for cooking quick meals. A new product can also be one that comes in different variations, such as new flavors, colors, and sizes. For example, during the recent economic downturn, manufacturers of high-end coffee makers began targeting customers who go to coffee shops. Firms can simply exportexportSell products to buyers in foreign markets., or sell their products to buyers abroad, which is the least risky and least expensive method but also offers the least amount of control. Examples of products where contract manufacturing is often used include cell phones, computers, and printers.
After entering the market in a partnership with a domestic firm and becoming established in the market, some firms may decide to separate from their partner and become their own business. A direct investment strategy involves the most risk and investment but offers the most control. Warner Music Groupa€™s purchase of the concert promoter Bulldog Entertainment is an example of a diversification attempt that failed. This approach was initially used by Sky TV and France Telecom as they offered free telephones or satellite dishes at discounted or lower rates in order to attract more people for their services. Geographical prices can be noticed when you do travel overseas you will amaze to see that some goods are much cheaper, or much expensive then your region.
For example, your objectives might be to maintain a certain grade point average and get work experience or an internship before you graduate.
The different components of marketing plans will be discussed throughout the book and then discussed together at the end of the book. The manufacturers are hoping to develop the market for their products by making sure consumers know they can brew a great cup of coffee at home for a fraction of what they spend at Starbucks. Other companies such as advertising agencies may want to invest and develop their own businesses directly in international markets rather than trying to do so via other companies.
Next, leta€™s take a look at the different types of basic market strategies firms pursue before they develop their marketing plans. For example, just after Starbucks announced it was cutting back on the number of its lunch offerings, Dunkina€™ Donuts announced it was adding items to its lunch menu. The venture combined the Japanese company Sonya€™s electronic expertise with the Swedish company Ericssona€™s telecommunication expertise.

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