Marketing Strategies UNIT 1 PDF

P OL ÍT ICA S DE MA RKE T IN G M A R K E T , E N V I R O N M E N T, A N D C O M P E T I TI ON. M A R K E T IN G STRATEGIES UNI T 1  MARKETING IN THE COMPANY TYPES OF MARKETING THE MARKET MARKETING STRATEGIES MARKET SEGMENTATION...

P OL ÍT ICA S DE MA RKE T IN G M A R K E T , E N V I R O N M E N T, A N D C O M P E T I TI ON. M A R K E T IN G STRATEGIES UNI T 1  MARKETING IN THE COMPANY TYPES OF MARKETING THE MARKET MARKETING STRATEGIES MARKET SEGMENTATION The terms commercialization or marketing are synonyms; they both refer to those company activities aimed at understanding customers’ needs and satisfying them. The importance of marketing for the company is that it makes the customers aware of the products or services, engages them, and helps them make the buying decision. In the market, there are exchanges of two opposing flows: one of goods and services and another in monetary form , generating income for the company. Marketing facilitates this exchange within the company through information flows. Within marketing, there are three main approaches: Production orientation: Marketing plays a limited and passive role, and direct communication between producer and consumer is virtually non-existent, as the company assumes that consumer needs are easily identifiable.  Sales orientation: In this approach, marketing plays a more active role, but it is more focused on achieving high sales figures than on consumer satisfaction, which can negatively affect the company’s sales in the long term. Marketing orientation: The company focuses on understanding and satisfying the needs of the consumer. Market research and communication play a major role. Strategic marketing aims to identify new potential markets, assess their potential, guide the company in seeking opportunities, and minimize the negative effects of external threats. Operational marketing focuses on marketing tactics that help achieve the company’s strategic goals, but acting on each product individually. This means decisions are made regarding marketing variables (the 4 P’s of marketing: product, price, promotion, and place). External marketing: those activities directed outside the company (product positioning, brand image among customers, strategies for choosing the distribution channel, perceived characteristics by our clients, etc.). On the other side, internal marketing seeks to integrate employees within the company, so they assimilate the company's philosophy and values. This increases employee satisfaction as they develop a sense of belonging, which boosts their motivation. Internal marketing is essential for retaining and motivating the best talent already working in the company and attracting top talent in the future. With relationship marketing, the company seeks to build long-term, stable relationships with its customers. The goal is not just to sell, but to build customer loyalty. The goal is a quality relationship with the customer, focused on the long term. Emotional marketing aims to capture people’s emotions and feelings, not just those of potential customers. The goal is for the audience to use emotions, not reason, when making decisions. We want a consumer who is loyal to our brand. Social marketing, on the other hand, is defined as "the design, implementation, and control of programs aimed at increasing the acceptability of a social idea or group practices." The entities that typically carry out this type of marketing are: Government institutions that seek to guarantee better and broader social welfare. Private non-governmental organizations that, non-profit, seek better standards of social welfare. Private companies that, through sponsorships or the creation of foundations, aim to improve the company's relationship with the social and economic environment in which they operate. a) Definition Search: Start by researching and clearly defining the difference between Social Marketing and Corporate Social Responsibility (CSR). Explain how they differ in purpose and implementation. b) Find Examples: Social Marketing: Find a company or organization that has implemented a social marketing campaign. Focus on campaigns aimed at promoting social well- being (e.g., environmental sustainability, health awareness, or social justice). Corporate Social Responsibility (CSR): Find a company that has a notable CSR program or initiative (e.g., reducing environmental impact, supporting local communities, or ethical sourcing). We can find several definitions of market. Among all of them, we can say that the market is the place or mechanism through which commercial exchanges occur. In other words, the market consists of the group of people and organizations that need a specific product or service, want to buy it, and have the economic means to acquire it. The environment in which a company operates refers to all external and internal factors that influence its activities. These factors shape a company’s ability to offer products or services successfully. There are two key categories: External environment: Factors outside the company, such as economic, political, legal, social, and technological conditions, as well as cultural trends and ecological factors. Companies must adapt to these forces to stay competitive.  Internal environment: Refers to factors within the company itself, such as the company’s resources, organizational culture, employees, and internal processes. The internal environment plays a crucial role in determining the company's capabilities and strategic direction Competition refers to other companies or organizations that offer similar products or services in the same market. Understanding competitors and their strategies is critical for any business to position itself effectively. Competitors can be classified into: Direct competitors: Companies offering the same or very similar products/services. Indirect competitors: Companies offering alternative products/services that satisfy the same customer need. Analyzing competition helps identify strengths and weaknesses, opportunities, and threats in the market, allowing a company to craft better strategies for differentiation.  Select a product from a company of your choice and identify two direct competitors and two indirect competitors. Compare the product’s strengths and weaknesses against each competitor in terms of price, quality, and customer satisfaction. Marketing strategies are the plans and actions that businesses use to attract customers and maintain a competitive edge. A well-crafted marketing strategy aligns with the company’s goals and market position. Internal and External Analysis Internal analysis: Involves assessing a company's strengths and weaknesses. Tools such as the SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) are useful for this process. External analysis: Focuses on identifying opportunities and threats in the external environment through tools like PEST analysis (Political, Economic, Social, Technological) and Porter’s Five Forces. Differentiation strategy: Offering unique products or services that stand out in the market, often allowing the company to charge premium prices. Differentiation strategy is nothing but an approach that pushes organizations to develop a unique product or service compared to their competitors. This strategy's primary goal is to gain a competitive edge and earn greater reputation in the target market. The business must know its strengths, weaknesses, and customer needs to accomplish this. In general, there are two ways to select a differentiation strategy, they are: Broad differentiation strategy: When a company wants to target a wide range of customers, it will adopt a broad differentiation strategy. This implies that the company intends to cover a large market with similar needs and develop similar products. They would also upgrade an existing product but with enhanced features. Focused differentiation strategy: A firm choosing this strategy targets a specific/niche segment of the market. They can target one or more market segments at the same time. But, they will have to produce custom products for different markets. Other than the two strategies mentioned, there are more specific types of differentiation strategies you must know. They are as follows: PRODUCT DIFFERENTIATION SERVICE DIFFERENTIATION PRICE DIFFERENTIATION DISTRIBUTION / CHANNEL DIFFERENTIATION RELATIONSHIP DIFFERENTIATION IMAGE DIFFERENTIATION Cost leadership strategy: Becoming the lowest-cost producer in the industry while maintaining acceptable quality, appealing to cost- conscious customers. It requires the vigorous pursuit of cost minimization techniques such as efficient utilization of scale of production, good purchasing strategy, modern technology, and producing quality products. Companies can develop a cost leadership strategy by analyzing existing operations, researching their competitors, identifying strategies to reduce costs, and keeping a track of progress. Specialization strategy: Focusing on a narrow market segment or niche, catering to the specific needs of that segment better than competitors. When a company focuses on a specific niche, it’s usually based on extensive market research. They know what their customers want and need. They can react quickly to feedback or trends because they understand what it takes to adjust their offerings  Leader strategy: The market leader focuses on maintaining and strengthening its position by innovating, expanding its market share, and setting industry standards. Follower strategy: Market followers adopt a more cautious approach, mimicking successful strategies of the leader but without the same level of risk-taking. Challenger strategy: Market challengers aggressively seek to displace the leader, often through bold innovations, disruptive marketing tactics, or aggressive pricing. Identify real-world examples of companies applying the strategies of a market leader, follower, and challenger. Instructions: 1.Leader Strategy: Find a company that is the dominant player in its industry. Analyze how this company maintains its leadership position through innovation, market expansion, or setting industry standards. 2.Follower Strategy: Find a company that adopts a more cautious approach, imitating the successful strategies of the leader but without the same level of risk-taking. Explain how the follower benefits from learning from the leader’s moves. 3.Challenger Strategy: Identify a company that aggressively competes to displace the leader. Explain how the challenger uses bold innovations or aggressive pricing to compete with the leader. Market segmentation involves dividing an entire market into smaller subsets or segments that share similar characteristics, needs, or behaviors. Segmentation aims to target each of these groups more accurately , responding to their specific needs. This results in more efficient marketing actions. A market segment is a broad group of customers with homogeneous characteristics who can be differentiated within a market and have similar needs, purchasing power, geographic location, buying habits, hobbies, or preferences. Market segmentation involves several phases: Study and analysis: Analyze the existing needs in the market the company is targeting to determine which are already covered by competitors, which are not, and which are only partially covered. Niches where the company can operate may also be discovered. Profile preparation: Define the characteristics that will shape each profile, highlighting the key characteristic of each segment. The three main factors that define segmentation modes are: Demographics: Includes Behavior: Refers to how consumers parameters such as age, gender, interact with the product (usage education level, income, and socio- frequency, expected benefits, purchase economic characteristics. frequency, etc.). Based on service or product usage levels, users can be: non-consumers Geography: Geographic previous consumers location. potential consumers first-time consumers occasional consumers frequent consumers Why segment the market? Improves the efficiency of communication actions Enhances product, service, or brand positioning in the market Reduces costs Helps discover new business opportunities Allows for customization of the product or service according to the market segment being targeted However, segmenting the market may also have some disadvantages: Increased marketing costs due to differentiated campaigns Higher production costs to adapt the product for different markets instead of offering a standardized product Potential losses if segmentation is incorrect When segmenting, three different strategies can be followed: Undifferentiated segmentation: Targets all potential customers in the market without making distinctions. This is appropriate when all customers share common characteristics or when launching a new product or service with minimal competition.  Differentiated segmentation: Products or services are offered to different customer groups based on their specific circumstances. Marketing actions must be personalized for each segment. Generally, more sales are achieved, but it requires a greater promotional investment. Concentrated segmentation: Despite the presence of various segments, the company focuses its efforts on the one offering the most economic return. The risk is that if the target group changes its consumption habits, the company could lose sales by not diversifying its clientele.