Professional Documents
Culture Documents
Learning Objectives
LEARNING OBJECTIVES
Understand the types of industrial customers as
well as industrial goods and services.
Know the marketing implications for different
types of customers and products.
Understand the purchasing orientations and
practices of industrial customers.
Know types of environment and strategies to
manage external environment.
U S E R S
P U B L IC S E C T O R
U N IT S (B H E L )
G O V E R N M E N T
C U S T O M E R S
G O V T . U N D E R T A K IN G S
( R A IL W A Y S , D E F E N C E U N IT
IN D U S T R IA L /
B U S IN E S S
C U S T O M E R S P U B L IC IN S T IT U T IO N S
(G O V T . H O S P IT A L S )
IN S T IT U T IO N A L
C U S T O M E R S
P R IV A T E IN S T IT U T IO N S
(S C H O O L S , C O L L E G E S )
M A N U F A C T U R IN G
U N IT S (S U G A R , M IL K )
C O -O P E R A T IV E
S O C IE T IE S
N O N -M A N U F A C T U R IN G
U N IT S ( B A N K S , H O U S IN G )
F I G . T Y P E S O F I N D U S T R I A L / B U S I N E S S C
www.a2zmba.com By Prof. Havaldar
IM/2-3/10
(B) How are Industrial Products / Services Classified?
Classification into 3 Groups shown below.
R A W M A T E R I A L S ( I R
M A T E R I A LM S A N U F A C T U R E D M A
& P A R T S ( S T E E L , F U E L O I L )
( E N T E R P R O D U C T
C O M P O N E N T P A R T S
D I R E C T L Y )
S U B A S S E M B L I E S ( E
I N D U S T R I AC LA PI T A L I LT IE G M H S T E Q P T ( C O M P U
P R O D U C T ( SU S/ E D I N
H E A V Y E Q P T ( M A C H
S E R V I C E S P R O D U C T I O N /
O P E R A T I O P N L SA ) N T / B U I L D I N G ( F A
S U P P L I E S S / U P P L I E S ( L U B R I C A
S E R V I C E S
( T O S U P P O R T
O P E R A T I O S N E SR ) V I C E S ( L E G A L , C
F I G . C L A S S I F I C A T I O N / T Y P E S O F I N D U S T
E C O L O G I C A SL O L I D W A S T E D I S P O S A L
C O N S E R V I N G N A T U R A L R
W A T E R , P O W E R , T R A N S P O
P H Y S I C A L
L O W - C O S T , S K I L L E D M A N P
C O M P A N Y L O C A T I O N , I M A
E N V I R O N M E I NN TT E R N A L R & D & P R O D U C T I O N F A C
( S & W A N A L Y H S RI S )& F I N A N C I A L R E S O U R
M A R K E T I N G E F F E C T I V E N E
M I C R O C U S T O M E R S &
( A F F E C T S A
P A R T I C U L A R
F I R M ) S U P P L I E R S
E X T E R N A L
( O & T A N A L Y S I S ) E C O N O M I C
M A C R O T E C H N O L O G I C A
( A F F E C T S
G O V T . , P O L I T I C A
A L L F I R M S )
C U L T U R A L & S O
P U B L I C - P R E S S
H O L D E R S , I N V E
P U B L I C I N T E R E S
www.a2zmba.com By Prof. Havaldar
IM/2-9/10
(F) Strategies for Managing Changing
External
Environment.
(i) Independent Strategies.
(ii) Cooperative Strategies.
(iii) Strategic Planning. It Aims at keeping
thefirm
consistently successful in changing
marketing environment by market
oriented strategic management.
Learning Objectives
Understand Organizational buying objectives.
Gain knowledge of buying activities, including different
phases in buying decision process, types of buying situations;
buygrid framework & its analysis.
Identify members of buying centers.
Understand organizational buying behavior.
Know how industrial buyers choose and evaluate suppliers.
(B)3 Common
Buying typesSituations / Buyclasses
of purchases / buying situations
i. New Task / New Purchase :
Here, buyers have limited knowledge and experience of
the new product/service. Hence, more information is
obtained, more people are involved, risks are more, and
decisions take longer time.
ii. Modified Rebuy / Change in supplier :
This situation occurs when the firm is not satisfied with the
performance of existing suppliers, or there is a change in
product specs. Hence, the need for searching alternate
suppliers.
iii. Straight Rebuy / Repeat purchase :
Here, the buying firm places repeat orders on suppliers
who are currently supplying certain products/services.
Such decisions are routine, with less risks and less
information needs, and can be taken by junior executives.
D i f f e r e n Vc ea sr i a a b m l e o Ms n etg h t ha ot dD s e tu e s r e m d i n f oe
i n d i v i d u ai f l b b u u y y i ne gr sc od en fc l i cs it o r n e s i s o l u t i o
c a u s e d ab uy t of a n c o t om i r n os u j : o s i n o t r - d j o e i c n i ts :i o n
B a c k g r oA u ) n P d r o o d f u m c a t k S i pn ge c p i f r i oc c e s s
i n d i v i d u F a a l s c t ( o E r ds u : c a t i o n ,
r o l e & l i f T e i m s t e y l Pe ) r . Pe s r os bu lr e e m S o l v i n g
T h e i r i n f P o er m r c a e t i i v o e Pn d e rR s i u s a k Ss i uo pn p l i e r
s o u r c e s T. y p e o f B P a u r r g c ah i a n B s i n er ag n d C
A c t i v e S B e ) a C r co h m p P a o n l y i t i Sc kp i e n c g i f i c
P e r c e p t Fu a l c Dt o i r s s t o : r t i o n
S a t i s f a c C t i o o n m w p a i t nh y S i z e
p a s t p u r C c ho am s p e a s n y O r i e n t a t i o n
D e g r e e o f
C e n t r a l i s a t i o n
F i g . : T H E S H E T H M O D E L
www.a2zmba.com By Prof. Havaldar
W E B S T E R A N D W IN D M O D E L
IM/3-14/16
E n v ir o n m e n ta l V a r ia b le s
P h y s ic a l, T e c h n o lo g ic a l
E c o n o m ic , C u lt u r a l
P o lit ic a l a n d L e g a l
L a b o u r u n io n s
C u s t o m e r d e m a n d s
C o m p e t it iv e p r a c t ic e s
S u p p lie r in f o r m a t io n
O r g a n is a t io n V a r ia b le s
O b je c t iv e s a n d g o a ls
O r g a n is a t io n S t r u c t u r e
P u r c h a s in g P o lic ie s / P r o c e d u r e s
E v a lu a t io n & r e w a r d s y s t e m s
D e g r e e o f d e c e n t r a lis a t io n
B u y in g C e n t r e V a r ia b le s O r g a n is a t io n B u y in g D e c is io n s
A u t h o r it y , S iz e C h o ic e o f S u p p lie r s
K e y in f lu e n c e r s D e la y d e c is io n & g e t m o r e in f o r m a t io n
I n t e r p e r s o n a l r e la t io n s h ip M a k e , L e a s e o r b u y
C o m m u n i c a t io n D o n o t b u y
In d iv id u a l V a r ia b le s
P e r s o n a l G o a ls , V a lu e s
E d u c a t io n , E x p e r ie n c e
E x p e r t i s e , J o b P o s it io n
L if e s t y l e , I n c o m e
LEARNING OBJECTIVES :
Understand buyer sales rep. interactions.
Types/range of relationships between
buyer & seller firms.
Customer relationship management
(CRM) / relationship marketing.
Methods used to influence industrial
customers.
Special dealings between buyer & seller.
www.a2zmba.com By Prof. Havaldar
IM/4-02/11
INDUSTRIAL BUYER-SALES REP.
INTERACTIONS
Depend on their perceptions, behavior & roles.
Buyers have two major perceptions of sales reps.
(i) Stereotype – talkative, manipulative, excitable
(ii) Reputation of sales rep’s company.
Buyer Behavior towards sales rep depends on organizational needs /
objectives, buying centre interactions and personal needs.
Buyers are not always rational / logical in buying decisions.
Role / behavior of sales rep. depends on his personal needs, and
expectations of his boss, peers, customers.
C o m p a t Ii db el e a l / S u c c e s I s n f eu f l f i c i e n t
C o n t e n t T r a n s a c t i o nT r a n s a c t i o n
I n c o m p a t Ii nb el e f f i c i e n t N o
C o n t e n t T r a n s a c t i o nT r a n s a c t i o n
P a r t n e r i n g /
T r a n s a c t i Vo an l a u l e - A d d C e od l l a b o r a t i v e
R e l a t i o n s Rh ei p l a t i o n s h R i ep l a t i o n s h i p
and resources.
d. Regular frequency of concessions are important and
not
the size of concessions.
e. Be responsive to corrections, if needed.
f. Avoid legalistic approach.
g. Be polite and humble.
h. Importance should be on “end results” and not on
“means”.
SUMMARY OFRELATIONSHIP
BUYER – SELLER CHAPTER - 4
Industrial buyer and sales rep.’s interactions depend on their
perceptions, behavior, & roles.
Interaction between two persons (buyer & seller) is called
Dyadic, with various types of transactions, as per Dr. Sheth’s
framework.
Buyer and seller firms have various types and range of
relationships: transactional, value added and partnering /
collaborative.
Customer relationship management (CRM) and relationship
management (RM) are conceptually same. Both aim at
collaborative / partnering long – term relationship for mutual
benefits of both parties.
Sales promotion and negotiation are the major methods
used to influence industrial buyers.
Reciprocity and dealing with customers’ customers are the
special dealings between a buyer & a seller.
LEARNING OBJECTIVES :
1. Know Nature and Scope of
Industrial Marketing research.
2. Examine the Marketing Research
Process.
3. Understand Industrial Marketing
Intelligence System.
www.a2zmba.com By Prof. Havaldar
IM/5-3/6
SCOPE OF INDUSTRIAL
MARKETING RESEARCH
Scope is vast. Some of the areas are :
i. Market share analysis .
ii. National and Geographical area-wise
market potential.
iii. Competitors’ analysis.
iv. New product acceptance and potential
M a r k e t i n g
R e s e a r c h
s t u d i e s
I n d u s t r i a l
S e c o n d a r Dy e c i s i o n
M a r k e t i n g M a r k e t
D a t a S u p p o r t
I n t e l l i g e n c e R e s p o n c e
S o u r c e S y s t e m
ResarMkt ingch
studie s
Industr ial
DSeco InteligMark DecisonSuprt RespoMark atndry ngice ncet
So System System urce
S y s t e m
LEARNING OBJECTIVES :
1. Know the Procedure followed for
segmenting industrial markets.
2. Identify the Variables (bases) used for
segmenting business markets.
3. Evaluate and select the target market
segments and strategies.
4. Develop effective positioning strategies.
1.0
.A1 0.8
0.6
.D
.C 0.4
- 0.6
. - 0.8
A
- 1.0
Learning Objectives
1.Define an Industrial Product.
2.Understand Changes in the product strategy.
3.Know Product Life cycle (PLC) Theory and its application.
4.Develop Product strategies for existing products.
5.Understand new product development.
6.Know impact of technology and high-tech marketing.
7.Learn Marketing of industrial services.
R u p e e s
I n d u s t r y
P r o f i t s
M a t u r i Dt y e c l i n e
www.a2zmba.com By Prof. Havaldar
APPLICATION OF PRODUCT LIFE –IM/7-5/20
CYCLE THEORY TO MARKETING
STRATEGY
C o m p a n y S D a e l ec sl i n e S t a b l e G r o w t h
P r o f i t a B b e i ll io t yw
I n d u s M t r ay r k e t T a r g eA t b o v B e e l o T w a r g eA t b o Bv e l o T w a r g eA t b o v e
S a l e s S h a r e T a r g e t T a r g eT ta r g e t T a r g Tea t r g e t T a r g e t
D o m i n a n t P
G r o w A t hv e r a g e
M a r g i n a l
D o m i n a n t
S t a b l Ae v e r a g e
M a r g i n a l S
D o m i n a n t
D e c l i An ve e r a g e
M a r g i n a l
H i g h P r i c e
H i g h L o w
Q u a l i t y Q u a l i t y
*
A
1 *A
C
L o w P r i c e
B e t t e r H i g h - t e c h
H i g hM o u s e t r M a pa r k e t i n g
T e c h n o l o g i c M a al r k e t i n g
U n c e r t a in t y
L o w - t e c Hh i g h - f a s h i o
L o w M a r k e t i nM g a r k e t i n g
L o w H ig h
M a r U k en tc e r t a in t y
D e e p G a p
3 4 %
I n n o v a 1
t 3o ½
r s% 3 4 %
E a r l y 1 6 %
2 ½ % A d o p t e r s L a g g a r
T i m e o f A d o p t i o n o f
www.a2zmba.com By Prof. Havaldar
IM/7-16/20
M a t e r i a l Ps e r s o n H a o l t e l s
C o m p o n C e on mt s p u t f eo r r s G o o d
( S t e e l , B a l l B e a rC i n o gn s f e ) Tr e r an nc se ps o r t a t i o n
P u
r e P u
r e
T a n g i b l e i n t a n g
P r o d u c t s e r v i c
M a j o r E q u a l M a j o r
P r o d u cP t r , o d u cS t e r v i c e ,
M i n o r & M i n o r
S e r v i c S e e r v i c Pe r o d u c t
1 . I n t a n g i b i l i t y B u y e r s s e e e v id e n c e o f s eM r va i nc ae g q e u m a el i tn y t
( c a n n o t b e s e e n /
f e lt , b e f o r e b u S y ei n l lg e ) r s t a n g i b ilis e t h e i n t a nC g o i bn ls e u l t a n c y & E D
2 . I n s e p a r a b i l i t y E f f e c t iv e in t e r a c t io n d e p e nR d e po an i r s s e tr ov i cm e a c h i n
( P r o d u c t i o n &
c o n s u m p t io n a p t r to h v e i d e r s . & C o u r ie r s e r v ic e
s a m e t im e ) R e q u ir e s e f f e c t iv e r e c r u it i n g a n d t r a in in g
o f s e r v i c e p r o v id e r s .
3 . V a r i a b il i t y U n if o r m q u a l i t y i s d i f f i c u l t M a n a g e m e n t
( S e r v ic e q u a l i t Fy o c u s o n q u a lit y & a u t o m e ad t ui o c n a t i o n & m a r k e
v a r ie s )
r e s e a r c h .
4 . P e r i s h a b i l it y D e m a n d f lu c t u a t e s . A ir lin e s s e a t s &
( C a n n o t b e s t o r e d )
U s e m e t h o d s t o m a t c h d eW m a ar en hd o &u s e s p a c e .
c a p a c it y .
5 . N o n - o w n e r s h i pA d v a n t a g e s o f n o n - o w n e r Hs ho i t p e l : a n d c a r r e n
( B u y e r u s e s a
s e r v i c e , b u t c ar e n d n u o c t t i o n in c o s t s & f l e x i b i sl i et y r v i c e s .
o w n it )
Learning objectives
1. Understand alternative channel structures.
2. Know types of industrial intermediaries.
3. Understand steps involved in designing a channel.
4. Learn how to manage channel members.
5. Understand concepts of supply chain management,
Logistics, and business logistics system.
6. Learn the tasks of physical distribution and total
distribution cost.
S a le s R e v e n u e - T o t a l P h y
=
C a p i t a l I n v e s t m e n t
S a l e s L a r g e M a j o r N a t i o n a l
P o t e n t i a l A c c o u n tA c c o u n t
o f D y a d i c M i n o r
S
C u s t o m e r m a l l
I n t e r a c t i oA n c c o u n t
S i m p l e C o m p l e x
Complexity of customer
www.a2zmba.com By Prof. Havaldar
IM/9-10/12
P r o m Po tr i i o n n t T a M r l a e d d e C i a s h h a o r w iD t s a i r b e l c e S t a m l e as i c
M e d Bi a u s i n E e x s hs i d b o i t n i oa nt i Ts o e n l s e m S a a r l e- s
& P u b l i c C a a t i t o a n l A o s gd u o ep k s t e i tn i gn p g r e s e n
S u p p T o r r at s d Se a l e s v i C l l oa ng es O es n n t - s l i T n e e a m
J o u r n P a rl s o m C o t o i mo n m m a a l u r n k i e tR yt i e n l ag t i
I n d u n s o t vr ie a l r tl sie e l sa t ( i g o i n f t s s ) m a r k e t
d i r e c t So er mi e s i n N a e r w s s i t e m i n
D e m p o rn e s s t sr a t i o n
P r o m T o e t c i ho n ai c l a l
l e t t e r as r t i c l e s i n
E n t e j r o t u a ri n n m a l e s n t
Learning Objectives
1. Understand the special meaning of price.
2. Know the factors that influence pricing
decisions, i.e. price determinants.
3. Understand pricing strategies for different
product/market situations.
4. Examine the pricing policies for various
types of customers.
5. Understand the role of leasing.
www.a2zmba.com By Prof. Havaldar
IM/11-2/ 29
SPECIAL
Some businessMEANING OF PRICE
customers follow “Value-based pricing” by
evaluating, suppliers’ offerings based on the concept of the
suppliers offering equal to the difference between the
perception of value (or benefits) and the cost to the buying
firm. These are “value buyers”, and marketers should
attempt to have value added relationship, if suppliers have
“purchasing orientations”.
Perception of value in value-based pricing is made up of
several elements like customers perceptions of product
quality / performance, reliable delivery, warranty / after-sales
service, reputation of the supplier, etc which are enhanced
and augmented properties.
F R A M E W O R K O
B e f o r e t a k ( i i n) g P r p i c r ii nc gi n o
d e c i s i o n s , a ( i b i ) u C y ui n s tg o mf i e
f i n d " p r i c e ( d i i ei ) t e C r o m s t i na na
( i . e . f a c t o r s ( i tv h ) a C t o i mn f p l eu t
p r i c i n g d e ( cv i) s Gi o o n v s t .) r e
P r i c i n g s t r a t e g Pi e r si c i n g p o l i c i e s
D i s c o u n t s
G e o g r a p h i c a
p r i c i n g
S e t t i n g a p r i c e
( p r o d u c t / m a r k e t
s i t u a t i o n s )
I n i t i a t i n g a
p r i c e c h a n g e
R e s p o n d i n g t o a c o m p e t i t o r 's
p r i c e c h a n g e
L e a s i n g
www.a2zmba.com By Prof. Havaldar
IM/11-6/ 29
PRICE DETERMINANTS OR FACTORS
INFLUENCING PRICING DECISIONS
1. Pricing Objectives
Are derived from corporate and marketing
objectives.
Some of the pricing objectives are survival,
maximum short – term profits, maximum short –
term sales, maximum sales growth, product quality
leadership, etc.
% c h a n g e i n q u a n
=
% C h a n g e in p
Q u a n t i t y P r o d u c e d p e r y e a r
C o s t Ex p e r i e n c e /
p e r L e a r n i n g
U n i t
C u r v e .
A v . C o s t R e d u c
= 1 0 - 3 0 %
A c c u m u l a t e d P r o d u c t i o n
www.a2zmba.com By Prof. Havaldar
IM/11-10/ 29
B r e a k - E vi s e nu s Ae f n u al lt yo s c i so n
p r i c e s ( P 1 , P 2 , P 3 ) , a n d i t s
S a l e s R e v
S a l e s
&
C o s t s S a l e s R e v
S a l e s R e v
T o t a l C o s t
F i x e d C o s
S a l e s V o l u m e
www.a2zmba.com By Prof. Havaldar
4. Analyzing Competition
IM/11-11/ 29
Many marketers have “competitive level” Pricing as a
pricing objective.
Marketers should get “Competitors’ prices, discounts,
costs, product quality, service, etc for cost/benefit
analysis, pricing and positioning strategy.
Competitors’ information can be obtained from various
sources.
5. Government Regulation/Policies
Govt. regulations are necessary to ensure fair play and to
protect consumers and small scale suppliers.
Price-fixing / price cartels, price discrimination (e.g.
different discounts to distributors/dealers), and predatory
pricing (e.g. dominant firm aiming to finish competitors)
are not permitted (illegal as per MRTP act, for example)
4 5 0 3 5 0 3 6 0 0 . 0 0 1 0 0 0
4 3 0 3 5 0 3 6 0 0 . 1 5 8 0 1 2 . 0 0
4 1 0 3 5 0 3 6 0 0 . 4 0 6 0 2 4 . 0 0
4 0 0 3 5 0 3 6 0 0 . 5 0 5 0 2 5 . 0 0
3 8 0 3 5 0 3 6 0 0 . 7 2 3 0 2 1 . 6 0
3 6 0 3 5 0 3 6 0 0 . 9 0 1 0 0 9 . 0 0
3 4 0 3 5 0 3 6 0 0 . 9 5 ( 1 0 ) ( 9 . 5 0 )
3 3 0 3 5 0 3 6 0 1 . 0 0 ( 2 0 ) ( 2 0 . 0 0 )
Rs.60 corers tender from Dept. of Telecomm. (DOT) for underground cable jointing kits. The company ghosted
Rs.400/- per kit (expected maximum profit). Tender opening revealed, it was L4.L1 was Rs. 330/-, L2=350,
L3=Rs 380/- The company estimates of B and P(A) were incorrect.
S i z e o f e a Y c eh a r l y T
o% t a Ql u a
P u r c h a s o er o P r u d r e c r h a s eD i s c o u
L e s s t h a n o 5 r n L o e s s . s, t h a n ,R s . 5 , N0 0 i l0
5 - 1 0 n oo s r . , R s . 5 , 0 0 0 -, 1 0 , 0 u 0 p0 t o 3
1 1 - 1 5 n oo s r . , R s . 1 0 , 0 0 0 , - 1 5 , u0 p0 0t o 6
> 1 5 n o s .o , r > R s . 1 5 , ,0 0 0 u p t o 1 0
SUMMARY OF CHAPTER – 11
In business marketing, price has a special
meaning. For value buyers, value based pricing
is appropriate.
Factors that influence pricing decisions (or price
determinants) are: (i) pricing objectives, (ii)
customer analysis, (iii) competition analysis, (iv)
cost analysis (v) government regulations/policies
Pricing strategies for different product-market
situations are: (a) competitive bidding in
competitive markets, (b) new product pricing (c)
pricing across product life – cycle.
CHARACTERISTICS OF MARKET –
ORIENTED ORGANISATIONS
Firms achieve market – orientation by
managing the following factors.
(i) Shared values.
(ii) Organization structure, policies and
culture.
(iii) Strategic Planning.
(iv) Needs or expectations of stakeholders.
O r g a n i s a t i o On a r l g a n i s a t i o S n t ar la t e g y h
L e v e l s S t r u c t u r e ( T y p e o f M
C o r p o r a t e C o r p o r a t e D i v i s i o n
O f f i c e B u s i n e s s
D i v i s i o n a l / ( S t r a t e g i
B u s i n e s s U n i t M a n a g e m
/ S B U S B U S B U S B U
I I I I I I
F u n
c t i o n
F u n c t i o n a l S t r a t e g y
( O p e r a t i o
P r o d u M c ta i r o k n F e it ni n a g n cM e a n a g e m
www.a2zmba.com By Prof. Havaldar
IM/12-4/19
The earlier figure shows hierarchy of strategies and
organization structure of a large company.
Strategic management gives a direction to the firm
and focuses on developing strategies to achieve long –
term objectives & goals
A Strategic business unit (SBU) consists of an
independent business or related business that has its
own competitors and specific markets. In some large
companies there are (product ) divisions and each
division has a divisional plan. Each SBU is headed by a
manager who is responsible for strategic planning and
performance of the SBU.
Operational Management maintains the direction
given by strategic management, and concentrates on
day-to-day issues of costs, revenue and profits.
C o r p o r T t eo g i v e i n f o r m a t i o n
C o r p o r t e
M a r k e t t i on g e n s u r e c u s t o m e r o
c o r p o r a t e LCo
Co
Div
UnBu
Fun
s t r a t e g y
NameFor R
d e
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velmpany
isonal/
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itlevsn
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eting
T o c a r r y o
u t c u s t o m e
D i v i s i o S n t a r l a t/ e g a i n
c
a l y s i s , f o r d e v e l o p
B u s i n eM s s a r k e t s i t r
n g
a t e g y , i n c l u d i n g c o
U n i t l e v e l a d v a n t a g e , s e g m e n t i n
p o s i t i o n i n g s t r a t e g i e s
T o d e v e l o p s h o r t - t e
M a r k e t i n g
F u n c t iM o n a a n l a g e p m l a n
e n t
a n d s t r a t e g y , c o
r e s o u r c e a l l o c a t i o n .
S t a r s Q u e s t i o n m a r k s
5
R a p id
6 4
M a rk e t G ro w th R a te
3 8
C a s h C o w D o g s
S lo w
1 2 7
L a r g e S m a l l
R e l a t i v e M a r k e t S
www.a2zmba.com By Prof. Havaldar
IM/12-8/19
GE Model : Business Screen Matrix
B u s i n e s s S t r e n g t h
5 H i g h M e d i u m L o w 1
S e l e c t i v
H i g h
E a r n i n g
M e d i u m
L o w
1
www.a2zmba.com By Prof. Havaldar
IM/12-9/19
Major Business Strength factors : Market
share, product quality, unit costs, R&D
performance, brand reputation, share growth.
Major Market Attractiveness factors :
Overall market size, annual market growth
rate, historic profit margin, competitive
intensity, technological requirements.
A S t r a t e g i
S a le s
P l a n n i n g
B
P r o je c t e d S a le s
0 T i m e ( Y e a r5 s )
www.a2zmba.com By Prof. Havaldar
IM/12-11/19
The strategic planning gap can be filled by three alternative
strategies : (A) Diversification growth, (B) Integrative growth,
(C) Intensive growth
(C) Intensive Growth Strategy. Corporate management
should first review existing business, using Ansoff’s product-
market expansion grid, shown hereafter :
C u r r e n t P rNo de wu c tP s r o d u
C u r r eM n ta r k e t P Pe nr o e dt r u a c t it o d n e v
M a r k S e t tr s a t e g y S t r a t e g y
N e w M a r k e t d e ( v D e l i ov pe mr s i e f n i c t a
M a r kS e t r t as t e g y S t r a t e g y )
www.a2zmba.com By Prof. Havaldar
IM/12-12/19
( B) Integrative Growth Strategy
includes increase in a firm’s sales and
profits by integrating backward, forward, or
horizontally within that industry.
L o w - c o s
I n d u s t r y O v e r a l l c
D i f f e r e n t il ae ta i do en r s h i
w i d e
P a r t i c u l a r
s e g m e n t o n l y F o c u s
Marketing Plan
1. Situational analysis. Market, competitive, product,
and macro – environmental analysis.
2. SWOT and Issues analysis
3. Marketing Objectives and goals
4. Marketing Strategy. Selection of target market
segments, positioning, marketing mix, customer
service and marketing research.
5. Action plans / Tactics
6. Marketing Budget
7. Implementation and control. Building marketing
organization and control process.
8. Contingency plan.