MODULE 2

Marketing strategies

MODULE 2

Marketing strategies - Value chain, BCG

Matrix, GE 9 Cell, Ansoff’s Matrix –

strategic alliances – Marketing information

System – Marketing organizations –

Marketing resource - Assessing Market

Demand – Statistical and non statistical

tools - Creating consumer value –

Customer equity & Lifetime Value -

classification of markets

Marketing Strategies

Marketing strategy is a process that can

allow an organization to concentrate its

limited resources on the greatest

opportunities to increase sales and

achieve a sustainable competitive

advantage.

A marketing strategy should be centred

around the key concept that customer

satisfaction is the main goal.

Value chain – Porter’s

Synthesis of Activities

Nine strategically relevant activities

Primary activities

• In bond logistics

• Operations

• Out bond logistics

• Marketing and sales

• Service

Support activities

• Procurement

• Technology development

• Human resource management

• Firm Infrastructure

BCG Matrix

StarsQuestion

Marks

Cash

Cows

Dogs

Relative Market Share

Industry

Growth

High 1-0.8 Low

High

Low

Characteristics of Cash Cows & Hogs

A cash cow business generates cash surpluses over and above what is needed to sustain its present market position

A business is a cash hog when its internal cash flows are inadequate to fully fund its need for working capital and new capital investment the parent company has to continually pump in capital to “feed the hog”

GE Nine-Cell Matrix

Low

High

Medium

AverageStrong Weak

• Market Size

• Growth Rate

• Profit Margin

• Intensity of Competition

• Seasonality

• Cyclicality

• Resource Requirements

• Social Impact

• Regulation

• Environment

• Opportunities & Threats

• Relative Market Share

• Reputation/ Image

• Bargaining Leverage

• Ability to Match Quality/Service• Relative Costs

• Profit Margins

• Fit with KSFs

Industry Attractiveness

Rating Scale: 1 = Weak ; 10 = Strong

6.7

3.3

10.0

1.0

1.03.36.7

Ansoff’s Matrix

Strategic Alliances

A Strategic Alliance is a formal

relationship between two or more parties

to pursue a set of agreed upon goals or to

meet a critical business need while

remaining independent organizations.

Marketing Information System

A Marketing information system consists

of people, equipment, and procedures to

gather, sort, analyze, evaluate, and

distribute needed, timely, and accurate

information to marketing decision makers.

10 useful questions for determining the

information needs of marketing managers.

1. What decisions do you regularly make?

2. What information do you need to make these decisions?

3. What information do you regularly get?

4. What special studies do you periodically request?

5. What information would you want that you are not getting now?

6. What information would you want daily? Weekly? Monthly? Yearly?

7. What magazines and trade reports would you like to see on a regular basis?

8. What topics would you like to be kept informed of?

9. What data analysis programs would you want?

10.What are the four most helpful improvements that could be made in the present marketing information system?

Marketing organizations

A destination marketing organization is

an entity or company, which is promoting a

tourist destination, in order to increase the

amount of visitors to this destination.

They promote the long-term development

and marketing of a destination, focusing

on convention sales, tourism marketing

and services.