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EDIInternational Training Programme on Women Empowerment

through Entrepreneurship Development

Marketing:

Concept, Need, Tools & Techniques

By

Padmin Buch

March 10,2015

For academic discussions only. Details, data & assumptions are indicative

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Market Analysis and Marketing

Market Study :Define the nature of the product and

identify who may be willing and able to buy it.

Marketing :How to approach the MarketPlan, Strategy and mechanism

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Marketing : Tools & TechniquesMarketing : Tools & Techniques

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Marketing Strategy

A plan for achieving Market share &

Penetration

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Why Marketing Strategy

Mere awareness ( by potential customers) about the product / service is not sufficient

Necessary to convince them of its utility

Also to facilitate to acquire it This is marketing

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Marketing Strategy

MS-a plan for approaching & securing the target market

In the face of competition

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Develop Marketing Strategy

Analysis of collected information pertaining toCustomer needsCompetitorsMarket environment

Leads to a set of Market related decisions

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Current marketing situationCurrent marketing situation

Market situation Competitive situation Distribution situation Macro environment

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Market Strategy : Basis required

Demand-Supply Gap Consumer needs Competitors’ strategy External environment

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Strategy :Understand Global Trade Environment ( GTE)

An international marketer is required to understand, evaluate and work out various parameters before venturing in to any country.

These parameters are called environmental factors.

They determine the Strategic components :direction &purpose

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GTE (Contd..)

Major Environmental factors

Political Economic Socio-cultural Competitive

Financial Legal Technological Infrastructural Labour related

Are these Risk Factors ? ? ?

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GTE GTE (Contd.)(Contd.)

Environment-factors vary from country to country

Even region specific variation Also from product to product Focused analysis of dynamics of

these factors crucial To formulate business strategies Lack of such analysis have affected

even large and resourceful MNCs

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Economy FactorsEconomy Factors

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Economic Factor

Home Country Economy : Policies and regulations

Host Country Economy : Size of market, Indutrialisation , Banking , FE mechanism, Purchasing power, Economic diversity

Global level Economy : Global trade bodies & Schemes

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Global Trade Finance :Global Trade Finance :

International OrganisationsInternational Organisations

Set up to maintain orderly international financial conditions

To Provide Capital To provide guidance & direction Particularly for economic

development in developing countries

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Political EnvironmentPolitical Environment

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Political EnvironmentPolitical Environment

More applicable in politically unstable countries

Home countryHost countryMix of Economic, Legal &

Socio-cultural elements

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TechnologyTechnology

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TechnologyTechnology

Technology : Computerization, R & D, Automisation, etc.

The need of the business / project for technology inputs

Prevailing level of technology as a whole in Home & Host countries

Receptivity and Comfort zone in the Host country

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Legal Environment

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GTE : Legal FrameworkGTE : Legal Framework

Developed Countries: System approach Developing countries: Linked with

political status Least Developed : Non-existent Home Country & Host Country International Trade Loans Global Trade organizations

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Competitive Environment

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GTE : Competitive EnvironmentGTE : Competitive Environment

From home as well as host country Level & Nature of Competition Linked with economic & socio-

cultural status of host country Technological factors Global Trade :Competition an integral

component Market-research required

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Socio-Economic Environment

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Socio-Cultural FactorsSocio-Cultural Factors

Demography Values & Beliefs Languages Religion Sensitivity to

issues

National tastes/preference

Female workforce Buyer behavior Mixed population Holidays

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Environmental Factors Influencing Global TradeEnvironmental Factors Influencing Global Trade

Entity Environment Activation End Result

International Firm

Economic

Political

Socio-cultural

Legal

Technological

Competitive

Manufacturing

Investment

Trading

Marketing

International Destinations

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Market identification, Segmentation &Market identification, Segmentation & Demand assessment Demand assessment

Understand own product Identify & locate Direct / indirect

customers Segments

User segmentsGeographical segmentsEconomic segmentsAge / Gender specific segments

Consumption : quantum, pattern, Exports : existing & potential

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Market & MarketingMarket & Marketing

Four ‘P’s of MarketingProductPricePromotionPlace

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Develop Market Strategy : Market related decisions

Product featuresPackagingProduct mix

Pricing Promotion

Branding

Distribution channels Servicing

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Classification Features Product Mix Brand Policy Packaging Substitute / Alternate

products

Product /ServiceProduct /Service

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Pricing : ApproachesPricing : Approaches

Cost-based Buyer based Competitor based Channel price build

up Statutory or

Regulatory

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Pricing : StrategiesPricing : Strategies

Rapid skimming Rapid penetration Slow penetration Psychological Discriminatory Loss leader

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PromotionPromotion

Trade shows / Expositions Media advertisement Free / No-Risk Trials Lobbying Warranty service Technical services Public relations

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DistributionDistribution

Nature of the ProductConsumer segmentsCostServicing channel membersHome baseRegulatory aspectsCompetitors’ practices

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MARKET PLANNING MARKET PLANNING GUIDEGUIDE

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Major Questions For Major Questions For Market Planning GuideMarket Planning Guide

Marketing Overview:What business are you in ?What are your marketing goals for

next year ? Your sales and profit goals?

What might keep you from achieving these goals ?

What is your marketing budget ?

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MAJOR QUESTIONS FOR MARKET MAJOR QUESTIONS FOR MARKET PLANNING GUIDEPLANNING GUIDE

Products and Services: What are the benefits of your products/services? What is special about your products/services?

Customers and Prospects: Who are you current customers ? What are their buying habits ? Why do your customers buy your goods/ services ? What is your market share ? Is your market share growing, shrinking or stable?

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Major Questions Major Questions For Market Planning GuideFor Market Planning Guide

Competitive Analysis: Who are your competitors ? What do your competitors do better than you ? What do you do better than your competitors ? What is your competitive position ?

Price, Location and Sales Practice: How do you establish prices ? How does your location affect you ? What are your sales practices ?

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Major Questions Major Questions For Market Planning GuideFor Market Planning Guide

Strengths and Weaknesses: What is your business strong at ? What is your business weak at ?

Advertising and Promotion: What is your advertising and promotion

budget ? What are your advertising and promotion

objectives ? How do you promote your business ?

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Major Questions Major Questions For Market Planning GuideFor Market Planning Guide

Strategic Marketing:What marketing problems have

you discovered so far ?

How do you plan to solve these

problems ?How do you plan to achieve these

goals ?

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In Conclusion . . .In Conclusion . . .

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Integrated ApproachMarket, Production & Plant Capacity

Market analysis Demand estimate Estimation of Market share Market Strategy to achieve this share Market Programme to execute Provides estimates on Quantum , Timing

& Financial aspects Production programme Plant capacity & Inventory decisions

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THANK YOU !THANK YOU !

. . . . . . Padmin BuchPadmin Buch

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For academic discussions only. For academic discussions only. Details, data & assumptions are indicativeDetails, data & assumptions are indicative