Strategic Issues-Marketing and Management Challenges

7/31/2019 Strategic Issues-Marketing and Management Challenges

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Strategic Issues: Marketing and

Management Challenges

Dr Pramod Pathak


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The two scenarios

Pre Globalisation

Different economic order

Customers wanted you

Demand > supply (fewsuppliers)

Few options

Monopolistic market

Producer / manufacturerorientation

Post Globalisation

New economic order

You want customers

Supply > Demand (moresuppliers)

More options

Oligopolistic market

Customer orientation


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The strategy then

Product concept- Quality oriented, high price,less distribution,

Production concept- Quantity oriented, lessprice, high distribution

Selling concept sales oriented, push strategy

company centric world view / producer is the

king / sellers market


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The strategy now

Marketing concept customer satisfaction andcustomer delight are the objectives

Customer gaining preeminent position Social marketing concept inclusive growth, triple

bottom line, green consciousness leading to CSR

Stakeholder centric world view / customer is the king /buyers market


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What lead to all this?

The LPG regime

- Liberalisation and globalisation led to

privatisation

- Increased competition as entry barriers

eased.

- The grammar of business changed from salesoriented to marketing oriented


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What is Marketing?

Marketing is managing profitable

customer relationshipsAttracting new customers

Retaining and growing current

customers Marketing is NOT synonymous with

sales or advertising


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What is Marketing?

A social definition:Marketing is a social and managerial process

by which individuals and groups obtain whatthey need and want through creating andexchanging products and value with others.


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Goods

Services Experiences

Events

Persons

Places

Properties Organizations

Information

Ideas

Anything Can Be Marketed


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Needs, wants,and demands

Marketing offers:

includingproducts, servicesand experiences

Value andsatisfaction

Exchange,

transactions andrelationships

Markets

Understanding Core Concepts


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How to face?

Customer Management:Marketers select customers that can

be served well and profitably.

Demand Management:

Marketers must deal with differentdemand states ranging from no

demand to too much demand.


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Marketing Challenges

Technological advances, rapid

globalization, and continuing socialand economic shifts are causingmarketplace changes.

Major marketing developments canbe grouped under the theme ofConnecting.


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Via technology

With customers

With marketingpartners

With the world

Advances in computers,telecommunications,video-conferencing, etc.

are major forces. Databases allow forcustomization ofproducts, messages andanalysis of needs.

The Internet Facilitates anytime,

anywhere connections Facilitates CRM Creates marketspaces

Connecting


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Selective relationshipmanagement is key.Customer profitability

analysis separateswinners from losers.

Growing share ofcustomer

Cross-selling and up-selling are helpful.

Direct sales to buyersare growing.

Connecting

Via technology

With customers


With the world


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Partner relationshipmanagement involves:

Connecting inside thecompany

Connecting withoutside partners

Supply chainmanagement

Strategic alliances

Connecting

Via technology

With customers


With the world


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GlobalizationCompetitionNew opportunities

Greater concern forenvironmental andsocial responsibility

Increased marketing by

nonprofit and public-sector entitiesSocial marketing

campaigns

Connecting

Via technology

With customers


With the world


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The modern tool

CRM Customer relationshipmanagement. . .

is the overall process of building

and maintaining profitable customer

relationships by delivering superior

customer value and satisfaction.


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CRM

It costs 5 to 10 times MORE to attract anew customer than it does to keep a

current customer satisfied.

Marketers must be concerned with thelifetime value of the customer.


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CRM

Attracting,retaining and

growing customers

Building customerrelationships and

customer equity

Customer value/satisfaction Perceptions are key Meeting/exceeding

expectations createssatisfaction

Loyalty and retention Benefits of loyalty

Loyalty increases assatisfaction levels increase

Delighting consumers should

be the goal Growing share of customer

Cross-selling

Key Concepts


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CRM

Customer equity

The total combinedcustomer lifetime

values of all

customers.

Measures a firmsperformance, but in a

manner that looks to

the future.

Key Concepts


growing

customers Building customer

relationships and

customer equity


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CRM

Customer relationshiplevels and toolsTarget market typically

dictates type ofrelationship

Basic relationships Full relationships

Customer loyalty andretention programs

Adding financial benefits Adding social benefits Adding structural ties


growing

customers Building customer

relationships and

customer equity

Key Concepts


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The strategic challenges

Quality

Production

Service

Human Resources

R&D

Price

Distribution

Promotion


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The solution

Attitude change

Technology change

Practice change

HRD as the means

Documents

Strategic Issues-Marketing and Management Challenges