MARKETING STRATEGY: AN OVERVIEW
Marketing Strategies Are Largely Shaped By a Number of Factors That Include -
• penetration levels of products
• position or market share of the company
• competitor’s strategies
• changes in the consumer buying behavior
• changes in consumer’s perceived needs
• changes which occur in technology
A commonly used and highly successful marketing strategy is to make available to consumers such product and service features that mark them as different from the rest. Companies need to position their products to various segments separately as each segment will have a different need and will require different features to satisfy these needs.
Competition is forcing many companies to stop shouting hoarse about USPs (Unique Selling Propositions) that only they can believe will sell, and peddle product-benefits. As long as there were 4-5 products competing for the consumer's attention in a category, each could spin its own intangible differentiation around lifestyles, values, and attitudes.
This approach became impractical with entry of many more. Customers find it difficult to distinguish between competing brands that tried to associate themselves with similar aspirations. The simplest way to cut through the clutter is an emphasis on product benefits. Not only does this approach bestow brands with strong tangible benefits, it ensures a sufficient bang for promotion. Discounts will work only if the consumer is convinced about the product. Evidently, an increasing number of companies are realizing that 'Consumers seek product benefits and tend to remember brands that (claim to) fulfill that promise'.
M.K. Electronics’ strategy includes developing non-traditional channels of selling even while it continues to strengthen its retail sales network.
The company has banded together small teams of people to be attached to its branch offices to carry out brand promotions in smaller cities and towns.
Electrolux follows its multi-pronged strategy, which includes aggressive product launches, focus on quality and increased rural reach. The company is focusing on building a strong market for its 35-year old brand -- Kelvinator. The company plans to offer a range of solutions for its washing machines segment. Electrolux plans to introduce low-end top loading, twin-tub machines; a fully automatic machine and a range of front-loading washing machines from Italy's Portrayals.
The company has launched a new model washing machine --1045 model -- that provides four rinses as against three rinses of all other washing machines. The fourth rinse removes the dirt and soap residues completely from the fabric. Electrolux is organizing demonstrations/road shows at retail outlets and apartment complexes to explain the four-rinse mechanism through a four-bucket test.
The group has outlined a multi-brand marketing strategy aimed at customers at the high-end, upper end and middle income and lower segments. The company will have different marketing strategies for different customer segments. The focus will also be on the price-sensitive rural markets. In fact, to push the products, the dealers are trained such that they are able to explain the value-addition to prospective customers.
At the top-end, the company's products are priced higher than the competitors. The company is getting direct and fast and its strategy for growth this year includes consolidation of its existing operations and entering new product segments. Electrolux has put the Internet on the forefront of its sales strategy.
With 'Market based Management' being the guiding principle, Roma's strategies to achieve its 'Millennium Leap-15bn' target include:
In its attempt to position its products as an ‘elite’ product and improve brand visibility, companies have sponsored TV programmes on various channels. Roma, M.K., CHARMS and Electrolux sponsored movies on the Star Movies network; Roma and CHARMS, for instance, sponsor the Saturday and Sunday night premieres. M.K. has lately sponsored the most talked about programme on Star Plus, Kaun Banega Crorepati?, hosted by the famous Bollywood star Amitabh Bachchan.
CUSTOMER SERVICING:-
A business area, which assumes much importance in this sector, is that of customer servicing. The word ‘customer’ will include both the external (i.e. the customer to whom the company sells the products) as well as the ‘internal’ customer which is nothing but the dealer – an important constituent of the value chain.
In order to distinguish one’s offerings from that of the others, firms are trying to add more value-added services in their product portfolio. Anchor, for example, has succeeded in etching out a name in the customer’s mind by paying serious attention to customer services. It intends to leverage its formidable distribution strength (6000 dealers and 6000 distributors) for the purpose. There are two aspects to their service leverage: one, use it to help support their current product range and two, to develop it as a business in it’s own right. The new plans to be implemented in this regard are:
Introduction of service technician vans so that more spare parts can be carried to the homes of the people who register complaints.
Setting up Intelligent Care Centers to create a centralized system for registering consumer complaints/queries. This helps in keeping track of the all the complaints and assigning jobs to the service personnel accordingly.
Effect calls registration on complaints by providing a ticket number, thus making service processing easier. It also helps to build up a database of customers for direct marketing as the details of the customers can be used for cross selling to them (For selling other products)
Train freelance technicians, especially in smaller towns and give them a Anchor authorized status. Franchising the services to expand reach. Offering a Anchor customer card, which entitles the buyer to avail of special gifts on purchases of any Anchor product.
New entrant M.K. Electronics has decided to give a strong push to strengthening its service network. A string of consumer promos like free service weeks, annual maintenance plans, loyalty programs, special offers to last year buyers and honeymoon packages for newly wedded couples are in the pipeline.
Roma, on the other hand, has gone hi-tech in order to please its customers. Each Roma service center has been made on-line to its head office in Delhi, which in turn is linked to its headquarters in Seoul. Software keeps a comprehensive record of all service calls attended—customer history, nature of the complaint, time taken to respond, spare parts used etc.
Marketing Strategies Are Largely Shaped By a Number of Factors That Include -
• penetration levels of products
• position or market share of the company
• competitor’s strategies
• changes in the consumer buying behavior
• changes in consumer’s perceived needs
• changes which occur in technology
A commonly used and highly successful marketing strategy is to make available to consumers such product and service features that mark them as different from the rest. Companies need to position their products to various segments separately as each segment will have a different need and will require different features to satisfy these needs.
Competition is forcing many companies to stop shouting hoarse about USPs (Unique Selling Propositions) that only they can believe will sell, and peddle product-benefits. As long as there were 4-5 products competing for the consumer's attention in a category, each could spin its own intangible differentiation around lifestyles, values, and attitudes.
This approach became impractical with entry of many more. Customers find it difficult to distinguish between competing brands that tried to associate themselves with similar aspirations. The simplest way to cut through the clutter is an emphasis on product benefits. Not only does this approach bestow brands with strong tangible benefits, it ensures a sufficient bang for promotion. Discounts will work only if the consumer is convinced about the product. Evidently, an increasing number of companies are realizing that 'Consumers seek product benefits and tend to remember brands that (claim to) fulfill that promise'.
M.K. Electronics’ strategy includes developing non-traditional channels of selling even while it continues to strengthen its retail sales network.
The company has banded together small teams of people to be attached to its branch offices to carry out brand promotions in smaller cities and towns.
Electrolux follows its multi-pronged strategy, which includes aggressive product launches, focus on quality and increased rural reach. The company is focusing on building a strong market for its 35-year old brand -- Kelvinator. The company plans to offer a range of solutions for its washing machines segment. Electrolux plans to introduce low-end top loading, twin-tub machines; a fully automatic machine and a range of front-loading washing machines from Italy's Portrayals.
The company has launched a new model washing machine --1045 model -- that provides four rinses as against three rinses of all other washing machines. The fourth rinse removes the dirt and soap residues completely from the fabric. Electrolux is organizing demonstrations/road shows at retail outlets and apartment complexes to explain the four-rinse mechanism through a four-bucket test.
The group has outlined a multi-brand marketing strategy aimed at customers at the high-end, upper end and middle income and lower segments. The company will have different marketing strategies for different customer segments. The focus will also be on the price-sensitive rural markets. In fact, to push the products, the dealers are trained such that they are able to explain the value-addition to prospective customers.
At the top-end, the company's products are priced higher than the competitors. The company is getting direct and fast and its strategy for growth this year includes consolidation of its existing operations and entering new product segments. Electrolux has put the Internet on the forefront of its sales strategy.
With 'Market based Management' being the guiding principle, Roma's strategies to achieve its 'Millennium Leap-15bn' target include:
In its attempt to position its products as an ‘elite’ product and improve brand visibility, companies have sponsored TV programmes on various channels. Roma, M.K., CHARMS and Electrolux sponsored movies on the Star Movies network; Roma and CHARMS, for instance, sponsor the Saturday and Sunday night premieres. M.K. has lately sponsored the most talked about programme on Star Plus, Kaun Banega Crorepati?, hosted by the famous Bollywood star Amitabh Bachchan.
CUSTOMER SERVICING:-
A business area, which assumes much importance in this sector, is that of customer servicing. The word ‘customer’ will include both the external (i.e. the customer to whom the company sells the products) as well as the ‘internal’ customer which is nothing but the dealer – an important constituent of the value chain.
In order to distinguish one’s offerings from that of the others, firms are trying to add more value-added services in their product portfolio. Anchor, for example, has succeeded in etching out a name in the customer’s mind by paying serious attention to customer services. It intends to leverage its formidable distribution strength (6000 dealers and 6000 distributors) for the purpose. There are two aspects to their service leverage: one, use it to help support their current product range and two, to develop it as a business in it’s own right. The new plans to be implemented in this regard are:
Introduction of service technician vans so that more spare parts can be carried to the homes of the people who register complaints.
Setting up Intelligent Care Centers to create a centralized system for registering consumer complaints/queries. This helps in keeping track of the all the complaints and assigning jobs to the service personnel accordingly.
Effect calls registration on complaints by providing a ticket number, thus making service processing easier. It also helps to build up a database of customers for direct marketing as the details of the customers can be used for cross selling to them (For selling other products)
Train freelance technicians, especially in smaller towns and give them a Anchor authorized status. Franchising the services to expand reach. Offering a Anchor customer card, which entitles the buyer to avail of special gifts on purchases of any Anchor product.
New entrant M.K. Electronics has decided to give a strong push to strengthening its service network. A string of consumer promos like free service weeks, annual maintenance plans, loyalty programs, special offers to last year buyers and honeymoon packages for newly wedded couples are in the pipeline.
Roma, on the other hand, has gone hi-tech in order to please its customers. Each Roma service center has been made on-line to its head office in Delhi, which in turn is linked to its headquarters in Seoul. Software keeps a comprehensive record of all service calls attended—customer history, nature of the complaint, time taken to respond, spare parts used etc.