Marketing Strategy
Structural Concepts
Case Study
Amul
McKinsey – 7 S Model
Structure
Strategy
Systems
Shared
Values
Skills
Style
Staff
Structure of Market Share

PIMS


Profit Impact of Market Strategy
Variables associated with
Profitability

Market Share
Market Share and Profitability
35
30
25
Profitability (%)
20
15
10
5
0
Under 10 10 to 20
20 to 30
Market Share (%)
30 to 40
over 40
V – Shaped relationship
Profitability (%)
20
18
16
14
12
10
8
6
4
2
0
1
2
3
4
Market Share (%)
5
6
7
8
Optimal Market Share
35
30
25
Profitability (%)
20
15
10
5
0
0
10
20
30
40
50
Market Share (%)
60
70
80
90
100
Fallout of Higher Market share

Anti Trust actions
Cost of gaining / maintaining
share
Incorrect Mix to gain share

High Share = Higher profitability


Unit costs reduce with share
 Superior Quality costs offset by
premium pricing

Strategies to Gain Share




Developing new products
Improve (relative) Product
quality
Increase Marketing Spends
Reducing Prices not resulting in
share gains !
Marketing Strategy
B2B Markets
B2B vs B2C





Input for Profit
delivery
Measurable
Value
Customise
Product plus

Shorter, Direct
Channels




Personal
Consumption
Perceived
value
Standard (TG)
Product /
Service
Indirect
Channels
Who is the B2B Customer ?




Owner
Designer
User
Purchaser
Concept of DMU
Marketing Mix Elements

Branding
Across Touch Points
 Consistent Messaging


People impact
Testimonials to Support
 Advertising & Activity Support

Marketing Mix Elements

Product / Service
Core and Augmented
 Cost Saving
 Revenue Enhancing


Pricing
Price for Value
 Brand Premium
 Payment terms

Marketing Mix Elements

Promotions
Trade Shows
 Trade Magazines
 Events
 Internet
 Direct mailers


Place

Sales People
Marketing Strategy Elements

Industry Analysis


Porter framework
Internal Analysis
SWOT ; BCG
 Porter Value Chain




Product Life Cycle
McKinsey 7S Structure
PIMS concept