marketing strategy for bba and mba

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TRAINING REPORT

ON

"MARKETING STRATEGY"

Submitted to:-

MAHARISHI DAYANAND UNIVERSITY,ROHATAK

HARAYANA-122001

In partial fulfillment of the requirements

For the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

(INDUSTRY INTEGRATED)

(2nd Semester)

Submitted by:-

Name:

Regst. No.

Roll No:

Guru Gram Business School

Front of CCA School Dhanwapur road laxman Vihar,Gurgaon

Haryana-122001

July 2011



CERTIFICATE

This is to certify Dinesh Vishwakarma, a student of the Maharishi

Dayanand University, Rohtak, has prepared his training report entitled ³Marketing

Strategy´ at Continental Manufacturing Co. , under the guidance . He has fulfilled

the requirement leading to award of the degree of BBA (Industrial Integrated). This

report is the record of bonafide training undertaken by him and no part of it has

been submitted to any other University or Educational Institution for award of any

other degree /diploma/fellowship or similar titled or prizes.

I wish him all success in life.

Sign of Faculty guid

Name of Faculty guid

Designation

Qualification

Seal of ELC



DECLARATION

I hereby declare that Training Report conducted at

"CONTINANTAL MANUFACTURING CO."

353, MEHRALI ROAD, OPP. GOVT. COLLEGE,

GUEGAON-122001(HARYANA)

Under the guidance of

Mrs. Bhavana

Submitted in partial fulfillment of the requirement for the degree of Bachelor of

Business Administration (industry integrated)

To

MAHARISHI DAYANAND UNIVERSITY, ROHTAK

Is my original work and the same has not been submitted for the award of any

other degree/diploma/fellowship or other similar titled or prizes.

Place :Gurgaon Student's signature

Date: Name:

Regn. No.

Roll No.



Acknowledgement

I would like to acknowledge and extend my gratitude to the Mr. Pravin Kumar

(Marketing Manager) who have made the completion of this project possible:

First of all, I would like to thank my Project Guide Mrs. Bhavna for her

great help. As she is being my Project Coordinator she provided me very necessary

and important guidance and support until the submission of my project.

I would also like to thank Ms. Nancy (TPO) of Guru Gram Business

School (GGBS), to provide me such a very exiting opportunity and for their goodhelp to provide a better coordination and control among all the activities related to

completion of the project.

Lastly, I would like to be very thankful to the whole GGBS Faculty for

their continuous effort in making the whole Project Activity very much learning

and Interesting.

I delivered my special thanks to my family members and friends for their constant

support during the project.



CONTENT OF THE REPORT

1) General introduction about the sector.

2) Industry profile

i. Origin and development of industry.

ii. Growth present status of the industry.

iii. Future of the company.

3) ± Origin of organization.

4) ± Growth development and present status of the

rganization.5) ± Product and service profile of the company.

6) - Profile of the company.

7) ± Discussion on training.

8) ± Study of selected research problem

i. (Problem, objective, methodology)

9) - Summary and conclusion

10) Questionnaires

11) Bibliography



1. GENERAL INTRODUCTION ABOUT SECTOR



2 - INDUSTRY PROFILE

1. Origin and development of the industry:-

CONTINENTAL MANUFACTURING COMPANY establised in 1990 with the aim to

manufacture Precision and High Quality Plastic and Steel metal component. At

CMC, we have been serving OEM¶s in Gurgaon Fom very bigning and have made

good cutomer on base due to our industrial background sonce 1958. We have

specialization in manufacturing of deep draw components in seat metal and

injection molded plastic part with critical shape and size . A brief count of our

achievement and appritiation given by company¶s customer is given below



II. Growth and Present Status of the Industry:-

There is two axis one shows series 1 in which targets achieved is given in crores.

Second axis shows the year I which targets achieved.



III. Future of the Industry:-



3. ORIGIN OF ORGANIZATION

CONTINENTAL MANUFACTURING COMPANY establised in 1990 with the

aim to manufacture Precision and High Quality Plastic and Steel metal component.

At CMC, we have been serving OEM¶s in Gurgaon Fom very bigning and havemade good cutomer on base due to our industrial background sonce 1958. We have

specialization in manufacturing of deep draw components in seat metal and

injection molded plastic part with critical shape and size . We have two uit &

offices they are given below:-



4. GROWTH DEVELOPMENT AND PRESENT STATUS OF THE

ORGANIZATION.



5. PRODUCT AND SERVICE PROFILE OF THE COMPANY



6. PROFILE OF ORGNIZATION

Organizational structure

CEO



7. DISCUSSION ON TRAINING

7.1 Definition:-

M arketing 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

Developing a marketing strategy:-

Marketing strategies serve as the fundamental underpinning of marketing

plans designed to fill market needs and reach marketing objectives. Plans and

objectives are generally tested for measurable results. Commonly, marketing

strategies are developed as multi-year plans, with a tactical plan detailing specific

actions to be accomplished in the current year. Time horizons covered by

the marketing plan vary by company, by industry, and by nation, however, time

horizons are becoming shorter as the speed of change in the environment

increases. Marketing strategies are dynamic and interactive. They are partially

planned and partially unplanned. See strategy dynamics.

Marketing strategy involves careful scanning of the internal and external

environments which are summarized in a SWOT analysis. Internal environmentalfactors include the marketing mix, plus performance analysis and strategic

constraints. External environmental factors include customer analysis, competitor

analysis, target market analysis, as well as evaluation of any elements of the

technological, economic, cultural or political/legal environment likely toimpact

success. A key component of marketing strategy is often to keep marketing in line

with a company's overarching mission statement.

7.1.1 Types of strategies

Marketing strategies may differ depending on the unique situation of the individual

business. However there are a number of ways of categorizing some generic

strategies. A brief description of the most common categorizing schemes is

presented below:



Strategies based on market dominance - In this scheme, firms are classified based

on their market share or dominance of an industry. Typically there are four types of

market dominance strategies:

Leader

Challenger

Follower

Nicher

I. Porter generic strategies - strategy on the dimensions of strategic scope and

strategic strength. Strategic scope refers to the market penetration while strategic

strength refers to the firm¶s sustainable competitive advantage. The generic

strategy framework (porter 1984) comprises two alternatives each with two

alternative scopes. These are Differentiation and low-cost leadership each with a

dimension of Focus-broad or narrow.

Product differentiation (broad)

Cost leadership (broad)

Market segmentation (narrow)

II. Innovation strategies - This deals with the firm's rate of the new product

development and business model innovation. It asks whether the company is on the

cutting edge of technology and business innovation. There are three types:

Pioneers

Close followers

Late followers

III. Growth strategies - In this scheme we ask the question, ³How should the firm

grow?´. There are a number of different ways of answering that question, but the

most common gives four answers:



Horizontal integration

Vertical integration

Diversification

Intensification

Prospector

Analyzer

Defender

Reactor

IV. Marketing warfare strategies - This scheme draws parallels between

marketing strategies and military strategies.

Many architects make the mistake of thinking that marketing has only a peripheral

relationship to what their firm does. In fact, marketing works best when it is totally

integrated into the operations of your firm, when it¶s a part of everything you do.

You can¶t create a plan for how to improve your marketing and increase your

business without first considering your long-term goals²not just in terms of fee

revenue or winning work, but in terms of who you want to be and where you want

to go, both as a firm and as a professional. There are a number of ways strategic

planning

can help your firm:

_ Build a shared vision for the firm¶s future.

_ Articulate your vision so that it can be communicated to others.

_ Get approval and support for the vision from senior leadership and,

ultimately, your entire staff.

_ Create a framework for all future decision making.

_ Figure out (and agree on) how much you¶re going to spend onmarketing and other initiatives to make it happen.



7.1.2 Strategic Planning:-

Strategic planning is the process of developing a vision of who you are as a firm

and what your longterm goals are. It¶s about more than just marketing; it can

influence everything: human resources, finance, information technology,

operations, hiring, promotions strategy, design process, client relationships, the

design of your office, and absolutely anything else that affects your firm and its

performance. Firms typically engage in strategic planning at defining moments in

their practice, when the firm¶s leadership changes or when the practice undergoessome kind of profound transformation. The strategic planning process enables the

firm¶s leadership to build a shared vision for the firm¶s future, articulate the vision

so that it can be communicated, and create a framework for all future decision

making. Because strategic planning is a process, not a document or a report, it isn¶t

effective for a small group of leaders to issue a fat document as the strategic plan

for the firm. It will probably go unread. It will certainly not achieve approval and

support from the people who need to understand it and act on it. Strategic planning

is best conducted as an open process, one that involves all your firm¶s key leaders.To begin the process, set up a strategic planning meeting, either as a retreat outside

the office or as an extended in-house meeting. (You may want to bring in a

marketing consultant to help you with this.) Figure out who should be there to give

input to the vision for your firm¶s future. Keep the group as small as possible, but

don¶t leave anyone out. Ask everyone to commit half a day for the meeting (two

hours just isn¶t enough), and to come relaxed and prepared to focus on the firm¶s

strategic direction. Gather any existing documents that attempt to define the firm or

its vision, such as mission statements, a firm description, marketing materials,

articles that have been written about the firm, and so on



I. Markets for Industrial goods -

The market is the place where supply meets demand. Suppliers and customers

meet, discuss and evaluate the conditions for exchange of goods and services, and

exchanges take place. The conditions under which these exchanges occur,

especially that of price, are influenced by the characteristics and structure of the

market, for example, the number and market power of suppliers and customers.

Traditional economic analysis of markets presupposes that they are characterized

by certain basic features;' firstly, there is an assumption of free movement in themarket, and thus a customer will always buy where he obtains the best terms of

exchange at that moment; similarly, the assumption is that suppliers will move to

and from the market freely.' Thus, the market is portrayed as atomistic. Each unit

in the market is free and independent to do as it wishes. Also, as a result of this

free movement, the market is characterized by change, and stability is an

exception. Underlying these two assumptions is the further assumption that there is

little or no cost of transaction. In other words, it is assumed that there are no costs

in obtaining accurate information, or in negotiations, etc. One effect of thisassumption is that production costs are considered central and that sellers can be

simply represented by a production function.

The traditional economic theory of the market has of course been subject to

challenge and modification. However, it has influenced the models and principles

used in marketing management. The basic model that most of the literature in

marketing is built on is the marketing mix model. The key problems in marketing,

according to that model, are:

To allocate resources to different competitive means or mix elements.

To design each mean as well as possible within the firm's resource

limitations.

The market is often described in terms of response curves, each defined in relation

to a certain 'marketing decision variable' or to the whole mix of a company. The



assumption is of course that the market consists of many individual customers that

are affected by the marketer's variables in accordance with a certain statistical

distribution. The same kind of influence can also be identified in the purchasing

management literature. The focus here is largely on the management of a single

purchase. This does not give full consideration to the factors which havecontributed to the way this purchase takes place, or to the effects of this purchase

on the subsequent dealings with the supplying company.'

II. Marketing Management -

The models and principles for industrial marketing management that are given by

the literature are normally related to the marketing mix model. The problems

identified in these are the allocation of resources and the designing of competitive

means. However, marketers in for example, a highly concentrated industry may

find different problems. The issues associated with the handling of ten very large

customers are of totally different character from those of handling 1,000 small

customers. Thus, marketers in firms in concentrated markets have a lack of

accurate models for analyzing their marketing problems. They have also a lack of

relevant data expressed in a systematic way about the behaviour of other firms in

the same situation.

III. Marketing Organization

Overall Organization

Belter's sales operations are split into three areas as follows;

(i) Sales Manger ² UK responsible for 60²70 per cent of total sales. Four area

offices handling all accounts, except two major ones which are managed from the

Company's main office.

(ii) Sales Manager ² Middle East, Africa, Eastern Europe, accounting for

approximately 20 per cent of total sales. One manager plus two sales engineers.

The Company is currently building up an agency²distributor network for this

territory.



(iii) Sales Manager ² Western Europe, responsible for the remaining 20 per cent

of total sales. The sales manager is located in Brussels, with additional sales offices

in Germany, France, and Italy. The Brussels sales office is owned by Belter's parent group.

IV. Evolution of Marketing Organization -

Belter has often faced problems in the distribution of its products; in France, for

example, the Company had a combined agent and distributor operating until 1963.

Belter provided applications engineering but had no commercial involvement in

sales. The company found that it had no influence on pricing in the market and thisled to a rather artificial pricing structure and to a decreased market share. This

problem was not solved by the appointment of a second distributor. Mergers

amongst French suppliers have led to more competition in the market. The second

distributor did little to stimulate the first one or to improve the Company's overall

penetration.

In 1966 Belter separated out a number of products and major customers which

were not to be handled via distributors. These customers and products were to be

controlled by the UK sales operation. Also, from 1970, the Brussels office ceased

to have overall responsibility for sales to France and a Paris office was established.

The overall market situation faced in France (and in other European countries) is as

follows:

There are many actual and potential users for some products, which are not known

by the Company. Heavy competition exists especially on price, for large customers

who are often buying what they view as a commodity product. Belter's emerging

strategy has been to handle these large customers through its own sales offices.

The Paris office actively seek sales of large volume products as well as acting as a

`post office' for products specially developed for individual customers, which are

then handled from the Company's main office. Small customers and small volume

products are handled by the two French distributors. The development process in

Italy has been similar to that in France. Sales in Scandinavia do not justify a local



sales office; sales here are handled through a distributor from the Brussels office.

A small number of major accounts are, however, handled directly from the UK.

7.2 Buyer²Seller Relationships:-

A Customer Relationship -

The three aspects of the relationship which are studied are competition, technicaldevelopment, and personal contacts.

This customer is Belter's largest and is responsible for 20 per cent of its total

business. The Company operates in the aerospace industry at the limit of current

technology. The relationship involves considerable development liaison on wholly

new products.

Competition -

Competition for this customer comes primarily from American suppliers. Thecompetition is on price and reflects the spare capacity in the American industry.

Competition from UK companies is also on price and comes from companies

having a wider production spread than Belter.

Development -

This customer has always relied on Belter alone for development work in this

product area. However, they have looked to other sources of supply when

development has taken place. The development process for a new product can bestarted either by a government development contract or by an order from the

customer. Belter acknowledged that it has to stand the costs of this development in

the latter case. The customer has intimate knowledge of all of Belter's procedures.

Methods of manufacture are agreed in detail and even the particular production

machinery to be used is specified. The closeness of the relationship between the



two companies is indicated by the fact that the customer has approved Belter's

quality procedure and accepts their testing.

Contact Pattern -

Interpersonal contacts between Belter and its UK customer are summarized as

follows:

(1) Formal Contacts

Every six months Technical policy liaison meeting, jointly chaired by Belter's

Technical Director and the customer's Chief Materials Manager. Every six²nine

months Commercial meeting, Belter's Managing and Marketing Directors and

Sales Manager and the customer's Purchasing Director and Senior Purchasing

Staff.

Monthly Sales Manager visits customer's purchasing staff to discuss delivery and

order positions.

(2) Other Contacts

These can be studied according to the formally assigned responsibility. Personnel

who have full-time responsibility One sales office man has daily contact with the

customer. Additionally, one applications engineer is engaged on work for thiscustomer. Finally, one man determines market trends, and is in contact with the

customer's marketing personnel and customer's clients. Personnel with `half-time'

responsibility Four applications engineers also spend some of their time on the

customer's problems and are in personal contact with customer staff.



7.3 PURPOSE OF A MARKETING PLAN:-

The purpose of a Marketing Plan is to:-

Define the Market

Refine the Production Plan to market requirements

Develop a marketing strategy

Minimize risk

Marketing Plan covering each commodity based on their own study of the local

market.

I. Market demand and prices -An assessment based on published market

information , discussions with local extension staff, farmers, dealers and buyers of

the commodity of the likely demand and prices on offer during the year and during

any period of seasonal shortfall

II. Market Requirement- Varieties, size, grading, packaging, maturity demanded by the buyers in the particular market.

III. Yield /Price Assumptions- How much commodity will be available? How

much premium grade? Second grade? Losses? If the commodity /crop is aimed to

be produced for a particular period e.g. for a low supply period, while the price

assumptions (expectation) may be higher some reassessment of yield and cost of



production assumptions in the gross margin analysis or partial budgets is usually

necessary.

IV. Marketing Returns and Costs Calculate expected income and costs in

marketing

7.4 The Most Important Elements of Marketing:-

There are four important elements in the marketing process:

Prioritizing the customer: Marketing begins with the customer, not the

product. Knowing what the customer needs or wants is essential.

Process of selection: The farmer needs to know who to sell the product to.This will determine how and where the produce is marketed.

Promotion: The farmer is selling something that other people want to buy.

Naturally, it is helpful to let them know that the product is available and of

good quality. In thinking about these elements, farmers need to ask

themselves about the six Ps:

� people: Who are the customers? What do they want or need? Who is actually

going to market the product?

� plan: How is the product going to reach the selected customers? What are thesteps?

� product: What product is going to be marketed? Is the family producing what

the customer wants? What services (for example, a cooked product), if any,

are requested by the customer?

� place: Where is the product going to be marketed?



� price: What price will the product be offered on the market for?

� promotion: How are people going to be informed that the product is available?

7.5 Supply, Demand, and Price:-

I n a free market, prices for inputs and products are determined by supply and demand .

I. Supply -

The Law of Supply :-

Like the law of demand, the law of supply demonstrates the quantities that will be

sold at a certain price. But unlike the law of demand, the supply relationship shows

an upward slope. This means that the higher the price, the higher the quantitysupplied. Producers supply more at a higher price because selling a higher quantity

at a higher price increases revenue.

A, B and C are points on the supply curve. Each point on the curve reflects a direct

correlation between quantity supplied (Q) and price (P). At point B, the quantity

supplied will be Q2 and the price will be P2, and so on.



II . Demand

The Law of Demand :-

The law of demand states that, if all other factors remain equal, the higher the price

of a good, the less people will demand that good. In other words, the higher the

price, the lower the quantity demanded. The amount of a good that buyers purchaseat a higher price is less because as the price of a good goes up, so does the

opportunity cost of buying that good. As a result, people will naturally avoid

buying a product that will force them to forgo the consumption of something else

they value more. The chart below shows that the curve is a downward slope.

A, B and C are points on the demand curve. Each point on the curve reflects adirect correlation between quantity demanded (Q) and price (P). So, at point A, the

quantity demanded will be Q1 and the price will be P1, and so on. The demand

relationship curve illustrates the negative relationship between price and quantity

demanded. The higher the price of a good the lower the quantity demanded (A),

and the lower the price, the more the good will be in demand (C).

III. Price

A value that will purchase a definite quantity, weight, or other measure of a goodor service. As the consideration given in exchange for transfer of

ownership, price forms the essential basis of commercial transactions. It may be

fixed by a contract, left to be determined by an agreed upon formula at

a future date, or discovered or negotiated during the dealings between

the parties involved. In commerce, price is determined by what.



a buyer is willing to pay,

a seller is willing to accept

the competition is allowing to be charged.

7.6 Industrial or business to business (B2B) marketing

An organization seeks to build a new warehouse. After documenting requirements,

it obtains three proposals from suitable construction firms. After a long process of

evaluation and negotiation, it places an order with the organization that it believes

offers the best value for money.

An organization needs legal services and obtains submissions from two law firms.

Analysis of the proposals and subsequent discussions determines that there is no

price advantage to placing all of the work with one firm, and the organization

decides to split the work between the two firms based on an evaluation of each

firm's capabilities.

A sales representative makes an appointment with an organization that employs 22

people. He demonstrates a photocopier/fax/printer to the office administrator. After

discussing a proposal, the business owner signs a contract to obtain the machine on

a fully-maintained rental and consumables basis, with an upgrade after 2 years.

I. Main features of the B2B selling process are:

Marketing is one-to-one in nature. It is relatively easy for the seller to identify a

prospective customers and build a face-to-face relationship. Highly professional

and trained people in buying processes are involved. In many cases, two or threedecision makers must approve a purchase plan. Often the buying or selling process

is complex, and includes many stages (for example, request for proposal, request

for tender, selection process, awarding of tender, contract negotiations, and signing

of final contract). Selling activities involve long processes of prospecting,



qualifying, wooing, making representations, preparing tenders, developing

strategies, and contract negotiations.

II. Blurring between B2B and B2C

Industrial marketing can cross the border into consumer marketing. For example,

an electronic component seller may distribute its products through industrial

marketing channels (see channel (marketing)), but also support consumer sales.

Many products are equally desired by business and consumers²such as audio

products, furniture, paint, hardware, etc. Nonetheless, manufactures and service

providers frequently maintain separate industrial and consumer marketing

operations to reflect the different needs of the two channels.

III. Competitive tendering

Industrial marketing often involves competitive tendering (see tender, tendering).

This is a process where a purchasing organization undertakes to procure goods and

services from suitable suppliers. Due to the high value of some purchases (for

example buying a new computer system, manufacturing machinery, or outsourcing

a maintenance contract) and the complexity of such purchases, the purchasing

organization will seek to obtain a number of bids from competing suppliers and

choose the best offering. An entire profession (strategic procurement) that includes

tertiary training and qualifications has been built around the process of making

important purchases. The key requirement in any competitive tender is to ensure

that... The procurement process is agreed upon and it conforms with fiscal

guidelines and organisational policies. The selection criteria have been established.

A budget has been estimated and the financial resources are available.

A buying team (or committee) has been assembled.

A specification has been written.

It has been clearly established that a competitive tendering process is the best

method for meeting the objectives of this purchasing project. If (for example) it

was known that there was only one organisation capable of supplying; best to get

on with talking to them and negotiating a contract.



Because of the significant value of many purchases, issues of probity arise.

Organizations seek to ensure that awarding a contract is based on "best fit" to the

agreed criteria, and not bribery, corruption, or incompetence.

IV. Bidding process

Suppliers who are seeking to win a competitive tender go through a bidding

process. At its most primitive, this would consist of evaluating the specification

(issued by the purchasing organization), designing a suitable proposal, and

working out a price. This is a "primitive" approach because...

There is an old saying in industrial marketing; "if the first time you have heard

about a tender is when you are invited to submit, then you have already lost it."

While flippant, the previous point illustrates a basic requirement for beingsuccessful in competitive tendering; it is important to develop a strong relationship

with a prospective customer organization well before they have started the formal

part of their procurement process.

V. Non-tender purchasing

Not all industrial sales involve competitive tendering. Tender processes are time

consuming and expensive, particularly when executed with the aim of ensuring

probity. Government agencies are particularly likely to utilise elaboratecompetitive tendering processes due to the expectation that they should be seen at

all times to be responsibly and accountably spending public monies. Private

companies are able to avoid the complexity of a fully transparent tender process

but are still able to run the procurement process with some rigour.Beneficial

Developing a sales strategy/solution selling/technical selling

The "art" of technical selling (solution selling) follows a three stage process...

S tage 1: Sell the appointment: Never sell over the telephone. The aim of the first

contact with a prospective purchaser is to sell the appointment. The reason is

simple; industrial sales are complex, any attempt to sell over the phone will

trivialise your product or service and run the risk of not fully understanding the

customer's need.



S tage 2: Understand their needs: The best method of selling is to minimise the

information about your goods or services until you have fully understood your

customer's requirements.

S tage 3: Develop and propose a solution. The solution is (of course) developedfrom your (or the firm that you represent's) product or service offerings.

Marketing supports solution selling through methods like account-based

marketing²understanding a specific target organization's requirements as the

foundation of a marketing program. As research shows,[1]

sales success is heavily

weighted towards suppliers who understand the customer. In UK research, 77 per

cent of senior decision-makers believe new suppliers' marketing From cannon

fodder to preferred tenderer

VI. The key features of a successful industrial sales organization

In industrial marketing the personal selling is still very effective because many

products must be customized to suit the requirements of the individual customer.

Indicators such as the sales tunnel give information on the expected sales in the

near future, the hit rate indicates whether the sales organization is busy with

promising sales leads or it is spending too much effort on projects that are

eventually lost to the competition or that are abandoned by the prospect.



RESEARCH PROBLEM

1. Identify your target market.

Which businesses need cleaning services? Which ones can afford it and will payfor it? Why?

In this case, I would think that small businesses may not be an ideal client. But

then again, define "small business." Are this referring to sales volume or number of

employees.

this can help small business right now as a marketing consultant that has worked

with a wide variety of businesses, including small companies:

" Small businesses are very price sensitive and prefer to do more themselves rather

than pay someone else." (They hold this belief even if it would free up more time

to be more productive. Go figure?)

2. Determine their wants and needs.

These businesses never have walk-in traffic. They do not have customers visitthem. So naturally, there is far less of a concern for a "clean office." Sure it would

be nice to have, but since no revenue will be lost if their office is not spectacular

looking, they are not motivated to do anything about it.

However, seek out the businesses that do deal with customers directly, especially

professional services where they have very high end clients visit them. Now they

need a very presentable office or they risk losing out on a lot of revenue.

3. Determine the level and type of demand.

Primary Demand : If a business does not already use your TYPE of service and is

not currently considering doing so, you will need to create "primary demand."

Simply put, you will have to convince them first to even want your type of service



(or product) before you even get them to buy it from you.

S elective Demand : These businesses already use a service (or product) or are in the

market for it and are actively looking. In these cases you do not need to spend

much effort convincing them "why" they need it.

4. Develop a Hypothesis and a Solution to Match

After we know the target market, have defined their needs, and analyzed the

competitive picture (currently using or not currently using a service like mine

For example, start with business not currently using a cleaning service, but that

deal with customers or clients regularly at their location.

Develop a strong case for why they would be wise to invest in your cleaning

services. Show them on a break-even analysis that your fee will be well

compensated in either customer retention or converting a higher level of store

traffic or business appointments into paying customers/clients.

Then state your case why it is more cost effective and saves them valuable time to

outsource this to you rather than doing it themselves or paying an employee

overtime to do it. You can also emphasize that you are the "expert" at this, notsomeone's secretary so it is expected that you will do a far better job at it.

5. You must make AN OFFER.

Marketing message/sales offer to a business that does NOT currently use a

cleaning service

" If we have never considered using a cleaning service before, allow us to show

you how xyz Cleaning, Inc can make your store/office more presentable to

customers and how this newly improved appearance will affect your cash

register/bank statement.



6. Develop your marketing message

Once industry organization understand the true needs your potential clients have

and the unique and competitive solutions you can offer, only then should

organization develop company's marketing copy -- your sales pitch.

The two examples above incorporate great marketing copy with a strong, benefits

related offer. organization can then deliver this through direct mail, telemarketing,

or a combination of both.

Avoid the fax marketing altogether. It's quite annoying, ties up there fax line, and

unless people have already heard of you, they are more likely to toss your message

in the garbage.

Try sending direct mail to the decision makers of these target companies and

describe the benefits they will experience from using your services.

7. Follow up

Even after identifying the businesses that are most likely to need your services,

after organization have identified a solution, and even after you contacted themwith a compelling offer, you still have to follow up.

Chances are they loved the sound of it when they got it. They had every intention

of following up with organization . But then just got busy. So company's follow up

call can make all the difference in the world and get company's foot in the door ...

in a very big way. Then it's up to you to deliver on your promise.



8. ANALYSIS

M arket Analysis

The goal of a market analysis is to determine the attractiveness of a market and

to understand its evolving opportunities and threats as they relate to the

strengths and weaknesses of the firm .

Market size (current and future)

Market growth rate

Market profitability

Industry cost structure

Distribution channels

Market trends

Key success factors

M arket S ize

The size of the market can be evaluated based on present sales and on

potential sales if the use of the product were expanded. The following are

some information sources for determining market size: g overnment data

trade associations financial data from major players customer surveys



M arket Growth Rate

A simple means of forecasting the market growth rate is to extrapolate

historical data into the future. While this method may provide a first-

order estimate, it does not predict important turning points. A better

method is to study growth drivers such as demographic information and

sales growth in complementary products. Such drivers serve as leading

indicators that are more accurate than simply extrapolating historical

data.

M arket Profitability

While different firms in a market will have different levels of profitability,

the average profit potential for a market can be used as a guideline for

knowing how difficult it is to make money in the market. Michael Porter

devised a useful framework for evaluating the attractiveness of an

industry or market. This framework, known as Porter's five forces,

identifies five factors that influence the market profitability: y Buyer power

y Supplier power

y Barriers to entry

y Threat of substitute products

y Rivalry among firms in the industry



I ndustry Cost S tructure

The cost structure is important for identifying key factors for success. To

this end, Porter's value chain model is useful for determining where value

is added and for isolating the costs.

The cost structure also is helpful for formulating strategies to develop a

competitive advantage. For example, in some environments the experience

curve effect can be used to develop a cost advantage over competitors.

Distribution Channels

The following aspects of the distribution system are useful in a market

analysis:

Existing distribution channels - can be described by how direct they are to

the customer.

Trends and emerging channels - new channels can offer the opportunity to

develop a competitive advantage.

Channel power structure - for example, in the case of a product having

little brand equity, retailers have negotiating power over manufacturers

and can capture more margin.

M arket Trends

Changes in the market are important because they often are the source of

new opportunities and threats. The relevant trends are industry-

dependent, but some examples include changes in price sensitivity,demand for variety, and level of emphasis on service and support.

Regional trends also may be relevant.



Key Success Factors

The key success factors are those elements that are necessary in order for

the firm to achieve its marketing objectives. A few examples of such factors

include:

y Access to essential unique resources

y Ability to achieve economies of scale

y Access to distribution channels

y Technological progress



organizations. These organizations may range from small proprietary organizations

which operate locally to large multinational organizations with WATS line

interviewing facilities. Some organizations maintain extensive interviewing

facilities across the country for interviewing shoppers in malls.

Coding and data entry services include editing completed questionnaires,

developing a coding scheme, and transcribing the data on to diskettes or magnetic

tapes for input into the computer. NRC Data Systems provides such services.

Analytical services include designing and pretesting questionnaires, determining

the best means of collecting data, designing sampling plans, and other aspects of

the research design. Some complex marketing research projects require knowledge

of sophisticated procedures, including specialized experimental designs, and

analytical techniques such as conjoint analysis and multidimensional scaling. Thiskind of expertise can be obtained from firms and consultants specializing in

analytical services.

Data analysis services are offered by firms, also known as tab houses, thatspecialize in computer analysis of quantitative data such as those obtained in large

surveys. Initially most data analysis firms supplied only tabulations (frequency

counts) and cross tabulations (frequency counts that describe two or more variables

simultaneously). With the proliferation of software, many firms now have the

capability to analyze their own data, but, data analysis firms are still in demand.

Branded marketing research products and services are specialized datacollection and analysis procedures developed to address specific types of

marketing research problems. These procedures are patented, given brand names,

and marketed like any other branded product



Types of marketing research

Marketing research techniques come in many forms, including:

Ad Tracking ± periodic or continuous in-market research to monitor

a brand¶s performance using measures such as brand awareness, brand preference,

and product usage. (Young, 2005)

Advertising Research ± used to predict copy testing or track the efficacy of

advertisements for any medium, measured by the ad¶s ability to get attention

(measured with Attention Tracking), communicate the message, build the brand¶s

image, and motivate the consumer to purchase the product or service. (Young,

2005)

Brand equity research - how favorably do consumers view the brand?

Brand association research - what do consumers associate with the brand?

Brand attribute research - what are the key traits that describe the brand

promise?

Brand name testing - what do consumers feel about the names of the products?

Commercial eye tracking research - examine advertisements, package designs,

websites, etc. by analyzing visual behavior of the consumer

Concept testing - to test the acceptance of a concept by target consumers

Cool hunting - to make observations and predictions in changes of new or existing

cultural trends in areas such as fashion, music, films, television, youth culture and

lifestyle

Buyer decision processes research - to determine what motivates people to buy

and what decision-making process they use



Copy testing ± predicts in-market performance of an ad before it airs by analyzing

audience levels of attention, brand linkage, motivation, entertainment, and

communication, as well as breaking down the ad¶s flow of attention and flow of

emotion. (Young, p 213)

Customer satisfaction research - quantitative or qualitative studies that yields an

understanding of a customer's of satisfaction with a transaction

Demand estimation - to determine the approximate level of demand for the

product

Distribution channel audits - to assess distributors¶ and retailers¶ attitudes toward

a product, brand, or company

Internet strategic intelligence - searching for customer opinions in the Internet:chats, forums, web pages, blogs... where people express freely about their

experiences with products, becoming strong "opinion formers"

Marketing effectiveness and analytics - Building models and measuring results

to determine the effectiveness of individual marketing activities.

Mystery Consumer or Mystery shopping - An employee or representative of the

market research firm anonymously contacts a salesperson and indicates he or she is

shopping for a product. The shopper then records the entire experience. Thismethod is often used for quality control or for researching competitors' products.

Positioning research - how does the target market see the brand relative to

competitors? - what does the brand stand for?

Price elasticity testing - to determine how sensitive customers are to price

changes

Sales forecasting - to determine the expected level of sales given the level of

demand. With respect to other factors like Advertising expenditure, sales

promotion etc.

Segmentation research - to determine the demographic, psychographic, and

behavioural characteristics of potential buyers



Online panel - a group of individual who accepted to respond to marketing

research online

Store audit - to measure the sales of a product or product line at a statistically

selected store sample in order to determine market share, or to determine whether aretail store provides adequate service

Test marketing - a small-scale product launch used to determine the likely

acceptance of the product when it is introduced into a wider market

Viral Marketing Research - refers to marketing research designed to estimate the

probability that specific communications will be transmitted throughout an

individual's Social Network. Estimates of Social Networking Potential (SNP) are

combined with estimates of selling effectiveness to estimate ROI on specific

combinations of messages and media.

Marketing research methods

Methodologically, marketing research uses the following types of research designs:

Based on questioning:

Qualitative marketing research - generally used for exploratory purposes - small

number of respondents - not generalizable to the whole population - statisticalsignificance and confidence not calculated - examples include focus groups, in-

depth interviews, and projective techniques

Quantitative marketing research - generally used to draw conclusions - tests a

specific hypothesis - uses random sampling techniques so as to infer from the

sample to the population - involves a large number of respondents - examples

include surveys and questionnaires. Techniques include choice

modelling, maximum difference preference scaling, and covariance analysis.

Based on observations:

Ethnographic studies -, by nature qualitative, the researcher observes social

phenomena in their natural setting - observations can occur cross-

sectionally (observations made at one time) or longitudinally (observations occur

over several time-periods) ±



examples include product-use analysis and computer cookie traces. See

also Ethnography and Observational techniques.

Experimental techniques -, by nature quantitative, the researcher creates a quasi-

artificial environment to try to control spurious factors,

then manipulates at least one of the variables - examples include purchase

laboratories and test markets



10.Questionnaires

1. What are the objectives of the marketing strategy? Are they clearly stated? Are

they consistent with the objectives of the firm? Is the entire marketing mix

structured to meet these objectives?

2. What marketing concepts are at issue in the current strategy? Is the marketing

strategy well planned and laid out? Is the strategy consistent with sound marketing

principles? If the strategy takes exception to marketing principles, is there a good

reason for it?

3. To what target market is the strategy directed? Is it well defined? Is the market

large enough to be profitably served? Does the market have long-run potential?

4. What competitive advantage does the marketing strategy offer? If none, what

can be done to gain a competitive advantage in the marketplace?

5. What products are being sold? What is the width, depth, and consistency of the

firm's product lines? Does the firm need new products to fill out its product line?

Should any product be deleted? What is the profitability of the various products?

6. What promotion mix is being used? Is promotion consistent with the products

and product images? What could be done to improve the promotion mix?



7. What channels of distribution are being used? Do they deliver the product at the

right time and right place to meet consumer needs? Are the channels typical of

those used in the industry? Could channels be made more efficient?

8. What pricing strategies are being used? How do prices compare with similar

products of other firms? How are prices determined?

9. Are marketing research and information systematically integrated into the

marketing strategy? Is the overall marketing strategy internally consistent?

marketing strategy for bba and mba

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