Marketing? When we think about marketing some images comes through our minds like some kind of advertisement or brochures and buying and selling of commodities or services in the local or international market. But in actual Marketing is more then buying and selling because it is a complete process from where today’s companies or organization sell and purchase products with identifying the customer needs and gain satisfaction of customers. In the simple marketing, once the customers comes to the producer or seller for some product or service and then if both are agree then consumer gives money to seller and then buy product or service from seller. There is no doubt that every company/organization whatever they are producing products or providing services to people the main aim is profit excluding non-profit organizations and retaining & achieving satisfied customers.
Company’s Introduction & Profile:
Two things are very important for today’s business first one is communication and second is technology. When we mix these both things communication and technology it makes communication by cell phones, internet, fax and etc which are different technological ways to communicate with each other. Telephony industry is a growing up industry now a day. As like many other companies there is a company named Warid Telecom. This company is a joint venture between Abu Dhabi Group and SignTel Group. These two groups invested jointly in Pakistan in the telephonic industry and make a revolution in the market before Warid there were three companies in the Pakistan (1) Mobilink (2) Ufone (3) Telenor and then Abu Dhabi Group and SignTel Group introduce a new company in July 2007 name as Warid Telecom. Because of the international investment of both companies and SignTel Group previous experience in the same field they cover Pakistani telephonic market in very short of time by introducing new plans and by implementing different strategies. And this was not the first investment of Abu Dhabi group in the Pakistan because they have their own bank named Bank Alfalah Limited, Shares in United Bank Limited, Alfalah Insurance Company Limited and many other companies all over the world and also biggest foreign investor in Paksiatn. And the best thing is the 30% of equity is invested by SignTel which know well about communication and telephonic technology. The Chairman Person of Warid Telecom is His Highness “Sheikh Nahayan Mabarak Al Nahayan” and he is a member of Royal Family of Abu dhabi and minister for higher studies and chancellor of the University of Al Ain. His highness is also a chairman and director of other Abu Dhabi Group investments worldwide. And the warid telecom is a first brand who offers postpaid tariffs in Pakistan in very low prices and security deposits and this was the basic marketing strategy which they use for getting customers.
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Every organization has their own aims and objectives, and for achieving these aims and objectives organizations do some strategies and it happens same in the marketing, organizations make marketing strategies for achieving marketing objectives. For this purpose firstly we should have to know what the marketing strategy is. Marketing strategy directly relates with the marketing functions which are buying, selling, transporting, storing, standardizing and grading, financing and risk taking etc. and if these marketing functions are fit with the organization’s main strategies so it can be a marketing strategy of the organization. For example if the organization wants to increase their sale so for this purpose organization should have to grow up their product range and by expanding area of their target market to increase market share.
And after understanding the definition of marketing strategy the question comes into minds that how we can make a marketing strategy? For it organizations describes their target market that who are our customers, nature of the customers, liking and disliking of the customers, after what time they’ll in need to buy the same product again, religious issues, environmental change and much more things. After this organizations plan about product positioning and sale, this is very important to examining the position of the product and making aim of selling decided amount of product in the targeted market.
Now the next step is making understanding with the Planning, Market Planning and the levels of marketing planning. So for this purpose we organizations have two types of planning:
It is a process of developing and maintaining a strategic fit between the organizational goals and capabilities and its changing marketing opportunities is called strategic planning. The simple is that it is only concerned with that what the organizations want to do and what they are doing and the organizations with non effective planning are in actual planning for fail. And for effective strategic marketing planning the marketing functions helps organizations very effectively because they provide information to prepare a successful organizational strategic plan.
Tactical planning is concerned with the translating the general goals and plans into objectives that are more specific. And these decisions are can be for short term and long term. And in this we should highlight some very important points which include the price of the product, positioning and branding, product features, promotion and budget, merchandising, sales channel and services.
Before making a marketing plan we should have to keep in mind some important components of marketing plan for strategic or tactical marketing planning. In this may be first step is marketing research, in this we collect, organize and write down the current situation of the market like current sale of the product which we are going to sell if it is already in the market, suppliers, customers etc. and then the Target market in which we are going to launch our products or services. Product is very essential component in the marketing plan that what our product is, what ratio of need is, currently use and beyond use. Competition is also a key point in the marketing plan that what make us a stand apart from our competitors. After these components how we can forget about financial matters which are price of the product or service, budget and profit. From the external analyzes of market we’ll able to determine the price of the product and setting the budget that what strategies are affordable for marketing of oncoming product launching.
Marketing strategies and the planning process are based on the SWOT analysis and it’s mean to analysis external and internal environment. In the external environment scan we analyze the opportunities and threats and in internal environment scan we analyze the strengths and weakness of the company.
In the internal environmental scan organizations found their strengths. It could be the organizational capabilities and resources for developing comparative advantages i.e. company’s patents and strong brand names, goodwill, location, quality etc. It describes what we have and in which sector organization is strong then their competitors.
In the internal environmental scan we also know about organizational weaknesses and the lack of some strength is called weaknesses of the company. In this analysis we know in what areas organization is weak and need more intention, where the control is not good and what sectors we should have to improve for development and achieving our organizational goals. Weaknesses comes into existence due to poor reputation among the customers, poor quality of products, weak brand names, lack of patent protection, high cost structure etc.
When we do the external environmental scan we know about the opportunities in the market for growth and profit. It is very important for the organization to look and take advantage from the available opportunities in the market. It can be the technological change in the environment, unsatisfied customer, vacant markets, and competitor’s weakness.
In the external environmental scan we also analyze threats on the organization it includes the factors which are not in the control of organization. These threats can put business in the high risk and affect the company’s strategies. It can be due to change in the customers taste and buying behavior, substitute products in the market, trading barriers, changing of government policies and taxes, trade barriers etc.
When we analyze these four factors of SWOT analysis then the time comes how to improve and cover our weakness because if the organization not improve and change with time then they will not compete in the market.
Once the SWOT analysis have done we can put it into our strategy development and there are some conversions we can use in the development process,
Change our weakness into our strengths
Changing our threats into our opportunities
Applying internal strengths to make external opportunities
Marketing objectives are very important factor in the field of business, these are the goals or targets which firm set themselves to achieve in the future and these settled goals and targets helps the organization to make organizational decision and give them a exact way towards success. And these objectives are must be definable, quantifiable, measurable and specific because of that we can achieve desirable results with them. Strategic objectives are should be addressed that which product is to be sold in which segment of market.
Marketing Objectives have two dimensions:
In this dimension of marketing objective we know about what product we are going to sale and in which market we are focusing. Marketing segmentation plays very important in the business because with the help of it we become able to know what product is suitable for what market.
Marketing penetration means that all things remain same that organization does not change market or it’s customers but they do some promotions of the products and repositioning the brands in the market. And in this, organizations not interested in to make or seek in the new customers and it’s a business rule that retaining of old customer is better then to make new customers.
In this sector of marketing thrust organizations change one sector which is market. In the market development organizations put their old products in a new market and in the market development organization’s main aim is to do marketing of product to new people and making new customers.
Product Development in the marketing thrust means that organizations put their new products in the existing market where they already have customers. Sometimes this strategy requires development of new competencies and sometimes business requires modified products.
In the diversification organization take some risks mostly the new organization because in this part of strategic thrust organizations put their new products in a new market and the chances are 50% on both sides that sometimes organizations earn heavy profits but sometimes due to lack of information of market and people living around their organizations bear heavy losses.
As same in the strategic thrust strategic objectives are requires in order to support what product have to sale in what market and the decision is also directly related to the strategic thrust. But we have four alternatives:
Build objective means building sales and market share (customers) because it can be relevant to the new product and services.
Hold objective describes to retaining the existing market sales and marketing share but it can be a threat from other competitors that the organization is not changing with the time.
In the Harvest objectives organization may fall down the sales and market share but the aim is must be increasing the profit. It can be a chance to make new market share and increasing the sales.
Divest objective means to drop off or sell all products or services. And the reason for doing this may be related to the finance of the company or some external events.
Core Marketing Strategic:
Core marketing strategy has three sub components:
Target Market is defined as the market in which we want to sell our products of services. To targeting a market it is very important for organization to clear about what customers needs in the market. Because the needs of customers may be different in the other group or segment. Segmentation plays an important role in the targeting market because due to segmentation we can divide customers in sub markets and can full fill their needs as we want. And we should have to keep in our minds about these things when we offer specific product or services to customers for doing most effective marketing. And these segments can be based on geography, sector and organizational type.
In this component of core marketing strategy we identify the compotators who are already prevailing in the market and they can be new for the organization. For doing business in the same market of competitors organization should have to understand who the compotators are and what the organizational needs to compete with them.
Organization should have to understand that how they will stand against the competitors in the target market and there are four most important options for achieving the competitor’s advantages which are:
By giving better quality of service (after or before selling the product or service)
by answering and satisfying the customers needs as quickly as compotators
by building friendly nature working relationships with customers
by giving them best value of price
Testing Core Strategy:
According to Jobber we have six ways to test out core strategy:
Does it clearly defines target customers and needs,
Does it creates a competitive advantage,
Does it incur acceptable risk,
Are the resources managerially supportable,
Is it delivered to achieve product and marketing objectives,
Is it internally consistent?
Managing Marketing Risk:
When organization create a marketing plan then they also think about the risks involve in the marketing plan because world is changing every minute so whenever the money is involved then the risk must be their. And these same things happen in the marketing plan and there are some bigger risks which may occur:
Sometimes it happen when the organization found conflict between the individuals because every person has their own point of view and they may feel that they will lose out as a result of the marketing planning process. Every individual in the organization have their own rights, responsibilities and power so question arises and they challenge the marketing plan.
Perception of Planning:
In the organizations some individuals look the marketing plan as it is being unproductive so they lose their concentration and due to that it results as limited effort they perform.
Sometimes marketing plan just hit by the short term focus because when organization success in the short term marketing and after that organization do not give a necessary priority to marketing.
Knowledge is power:
Sometimes too many knowledge becomes our enemy, as a part of the organization some persons believe that they are linked to the power and they just relies on the information which they have.
It depends that what culture the organization adopts because when the culture clash arises in the organization it affect the marketing planning process and some people forget the responsibilities.
This is a common risk in the marketing planning process because it requires discussion between all of the managers of the organization but sometimes as a result some we just found disagreements between them.
It can be a lack to marketing planning skills of individuals within the organization.
Product or service:
What you are selling? And the answer is simple that is a product or service. A product can be a tangible or intangible (service) thing which sellers sell against the sum of money or reward. Product is a very important factor of the marketing mix. First of all the marketers identify the customers need and then provide them a product or service which can fully satisfy the customer’s needs. And the best thing is the right product for the right customer because some products can fulfill the demands of some customers but not all of the customers so the organizations analyze the market and demands of the customers and then organization design a product to satisfy demands correctly. If any organization produces something which can not satisfy the demand of customer then it can not be prevail in the market. And product has a directly relation with the sales and profit of the company.
Product Life cycle:
Every product has a life cycle (PLC). That in the introductory level the cost of the product is high and sales & profit are low, in the growth level it increases the level of profit, in the maturity level the sales reached at their peak and in the end at decline level when demands, sales and profit drop off.
The Boston Matrix:
It is a tool which develop my the Boston consulting Group to identify the product port folio and this matrix has been divided into four categories of products based on market share and market growth. The classifications are:
Cash Cow ƒ low growth, high market share
Star ƒ high growth, high market share
Question marks ƒ high growth, low market share
Dog ƒ low growth, low market share
Need investment to get market share and to deal with threats and competitors
Try to grow selected products
hold the market share as long as possible
Try and recover what you can in terms of sales
Price is a value of money which a seller charge from the customer when they are both agreed to buy and sell a service or product. Prices of commodities are varying for example some products or services are cheap but some may expensive and on the other hand sometimes a price of the same product or service may different in the different market segments. But it depends on the quality of the product or service that is the customers happy to pay the value of money exchange of this product or service. And this is the thing in which we can calculate our revenue upon products or services.
There are some internal and external factors which may influence the decision of deciding price.
Marketing Mix strategy
Organization for pricing
Nature of the market and demand
Economy, Resellers and Government (Other Factors)
Place is a something like location it may be a sales outlet, distribution point of products or services, warehouses, shops and Tele Marketing. Place is where customers can easily buy products or services, it must be convenient and easy to access and appropriate. This is very important that product must be in the right place at the right time in right quantity.
Another factor is this that most of the manufacturers or producers can not sell their products directly to the final consumer but they use some agents or third parties to sell it. And for this organizations use two types of strategies,
In this strategy organizations use a sales force to encourage intermediaries to carry the products and promote it to sell to the final consumer.
In this strategy organizations advertise and promote the products and tell the final consumer to ask about it with intermediaries.
The promotion is a way that how organization communicate with the people about what they are going to offer in the market. To do promotions organizations have many ways e.g. advertising, branding, offers and exhibitions etc. By doing these promotion organizations main aim is to attract people towards their products or services.
People are the persons or public who can have impact on organization or can be affected by the organization. They can be inside of the organization and also can be outside of the organization. These are the human who sell or buy the organizations commodities and organization affect on the positively or negative. And these people are the maker of the brands and revenue.
Organizational process is a culture within the organization that how the day to day processes are going and how organizations are developing and retaining customers satisfaction and keeping customers happy. Recruiting right staff for the right job and looking forward on the customer’s feedback and opportunities etc.
7. Physical Evidence:
When customers buy services, they are not sure about the quality and certainty of the service because it is intangible thing.
The 4C’s framework
Actually customers not by the product or services, customers always buy what they think and make an idea about the product and services and after but what it will do.
Cost has a close relation with the price of the product but there is only one difference is that, are the customers are ready to pay the price of offering product or service. And in actual prices are always determined by the customers.
As I explained earlier that communication is very important for any organization and it is two ways in which customer’s feedback is valued and encourage.
This sector explained that how it is easy for the customers to do business with organization and how easily customers can access your product for example tele and online business.
It is a type of a plan in which organizations discuss about big marketing tasks, how to manage these tasks and how to apply such tasks, who will apply and when it’ll be beneficial for applying these tasks.
Structure of marketing plan:
It is a summery of the current plan for a quick review for management.
Current Marketing Situation
To show what is going on reports, products, competitors, issues etc
Organizational Strength, weakness, opportunities and threats.
Objective and Issues
What are the organizational objectives, products, area of sales and market share
Defining the current marketing strategy for reaching the target and how to get marketing objective.
Identifying what will be done, who, when and cost to doing this.
The cost summary of this plan.
How the processes are indicates and monitored.
In discussing the action programs four basic questions comes into our minds are:
What will be done?
When it will be done?
Who will be responsible for doing it?
How much it will cost the organization?
Measuring the activities:
New Product Programmes
In this organizations decide the trial rate and the repurchase rate of the product or services
And in this managers discuss on contribution margin and % of sales
Contribution of regional sales, % of margin sales, accounts and travelling
In this organization discuss upon advertising
In this organization discuss upon promotion of product or services
And in this organizations discuss on price elasticity of demand etc
No. of distributors who are carrying out the product
What is the purpose of developing of action plan only if you are going to sale or launch a product or services.
You must have to use a template form of the action plan to develop it.
The main aim is must be to make an effective action plan.
You should have to know that you are making progress or going down and also what are the benchmarks.
How you will know that the desired results has been achieved or not.
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