Journal of Research in International Business Management (ISSN: 2251-0028) Vol. 2(4) pp. 84-88, April 2012.
Available online @http://www.interesjournals.org/JRIBM
Copyright ©2012 International Research Journals
Full Length Research Paper
Impact of future trends on marketing strategy
1
R.K. Srivastava and Suresh 2Tulshiram Salunke
1
Director General at Sterling Institute of management Mumbai, Professor Emeritus and PhD guide of Mumbai University
General Manager –Engineering and Bus Development, NRB Bearings Ltd, A-506, Phoenix, Hiranandani Estate Ghod
Bunder Road, Thane (W) – 400607,Maharashtra State, India
2
Accepted 09 April, 2012
This paper describes how impact of product range, price level, product positioning and technological
change can help in formulating optimal business strategy for automotive manufacturers. A key aspect
of identifying future trend of market is the key gradient to formulate proper marketing strategy - Mr.
Andrew Young, 1(2008). The purpose of the study is to see the underlying theory of the product
sustainability from business prospective. The identification of the marketing characteristics, marketing
objectives and the application of marketing strategies within each phase of the developing business
process for Bearing Industries in Asia.
Keywords: Market Strategy, Product, Price, Volume and Management.
INTRODUCTION
This paper examines how widely held market images
affect attitudes towards the products and services and
ability to attract customer for future growth. It assesses
the role of articulation of marketing strategy to fine tune
business trends in promoting the product image and
attractiveness, Heinz Weihrich (2006).
Basically product features are easily copied by reverse
engineering, and brands have been established in a
market. Therefore major tool for creating innovation
highway for product differentiation is emerged as an
important tool to be competent in market Jose M.
3
Labeaga,
(June 2005). In the process of identifying
future trends, a combination of brand name and brand
significance has become a core competitive asset in
business strategy.
The success of a new business implies the process
from the generation of an idea to the commercializing of
the new product within the defied strategic process of
product life cycle management used to maintain or
increase market share.
The success factors for a new product such as, Unique
features, Low selling cost, Meet customer requirements
better than products by competitors, Relative high quality,
return on investment within the estimated time
frame and Enhanced brand equity.
LITERATURE SURVEY
Developing Channels to Distribute Product/Service:
For domestic and global customers, the industry needs
deep and wide channels for distribution of products as
4
argued by Jobber, D (1998). There is a scope to conduct
and publish surveys to get the media’s attention. Conduct
a survey about trends in the industry and align the market
strategy.
Advertise in unique Places
As recommended by StylusInc, (© 2005), the main
reason to eliminate the competition needs to advertise in
order to get attention of its customers. Advertise by taking
advantage of free advertising space, and innovative
solutions from the advertising department.
Marketing Planning Process
*Corresponding Author E-mail: sure1406@hathway.com
;sure1406@gmail.com; Tel: 022-25308257 or 09821182725
As suggested by Kotler, (1991), Coherent marketing plan
is increasingly important for the marketing team due to
Srivastava and Salunke 85
expanding market opportunities, the growing risk of
allocating substantial resources into new innovations,
with high R and D costs and the increasing complexity of
a firm's international marketing operations. Successful
strategic marketing plan within an organization can:
a)
Determine where to place efforts,
b)
Identify which markets to segment or target,
c)
Provide a measure for assessment,
d)
Create business case with advantage(s).
As the product life saturates, a variety of products will be
narrowed down as per the manufacturing system
designed for Continuous flow.
The purpose of “Trend of Production System” is used
in the discussion for the initial stage of new product
development [NPD] and for ramp up and formulation of
production plan for two, three, four and five years.
Impact of total range of product
Time Perspective
As argued by Jobber. D 1 (1998) demands address long
term planning which verify and track broad market trends,
sets major organizational strategies, and deploys
resources to fulfill these strategies for two, three and five
years. Therefore, organizations work towards more
focused short-term targets, which set out clear tactical
approaches in the marketing mix and draw up viable action
plans to fulfill clear short-term objectives. In the current
competitive environment in which firms operate, greater
flexibility is necessary in the planning process to permit
adequate and timely adjustment of both short term and
long term planning.
•
Customer Perspective: As per Gerald B. White
and Wen-fei L. Uva (2000) requirement of a global
application in engineering to support and clearly capture
the customer perspective and pin point the seed of
innovation. The main aim is to identify new and emerging
customer needs.
•
Requirement of survey on estimated size &
potential of valid customers Mackie, (2004). Identification
of economic drivers at customer markets and to find out
strengths and weaknesses of competitors.
•
Advertise in unique Places: As recommended
by StylusInc, (© 2005), the main reason to advertise
where nobody else involved in the bearing industry
advertises by taking advantage of free advertising space,
and innovative solutions from the advertising department.
Price Level
As argued by Robert G. Cooper 7 (2001p.357-389),
identifies process for future trend of pricing arenas for
new market strategy in three dimensions.
Customer function served - It consists of a large
list but few are application support, services, convenient
in usage and many more.
Technology utilized - Innovation and investment
are required to develop and supply consistent quality
products. Process of amortizing development cost,
specific customer requirement and impact of economical
lot size and life cycle of product.
Above guideline covers pricing for total product group
as recommended by Robert G. Cooper [2001].
Trend of Production System for ideal marketing
strategy
As suggested by John Miltenburg, (2005, p.303-305), the
production systems are based on the products life cycle.
The Figure 2 below elucidates different types of
production systems from the concept creation stage to
the end of product life cycle.
Product and volumes are linked with the sales forecast.
The risk involved at the developmental stage is low
because the investments are carefully spent on the
production system for small and large batches
considering the product life cycle.
PROPOSED HYPOTHESIS
Exploratory Research
Research is exploratory because no earlier model with a
basis of study on the success of new products in an
industrial market is available. The first reasons to invent
paper, not restricting the description to the topics that
have been documented in earlier studies. The reason is
to find processes and strategies for new product success,
which existing theories are the main criteria to discuss.
In a new approach marketing planning process will be at
the Business and product level and these steps are
outlined in the process below:
Business Level
Establishing the Business Mission, Undertaking a
Marketing Audit, Formulating a SWOT Analysis,
Generation and evaluation of strategic alternatives, Setting
Marketing objectives
Product Level
Developing core strategy, Outlining marketing mix
decisions, Organizing and implementing plans, monitoring
and control of plans.
86 J. Res. Int. Bus. Manag.
How: Technologies
require to design,
develop, product
ionization cost, cost of
infrastructure, suppliers
development cost,
internal development
costs, cost of
atomization, product
life...etc
What: Applications where
customer need to be satisfied.
Who: Customer Groups to be
served (market or segment
market like OEM, Industrial
or after market ... etc.
Home base
for product
pricing
FIG-1 NEW PRODUCT PRICING ARENAS [Source:
Robert G. Cooper 7 [2001], Winning At New Products,
(p.377), New York, ISBN-13 978-0-7382-0463-5]
PRODUCTS and VOLUME
LAYOUT and MATERIAL FLOW
Very
many
productone or
few
each
Functional layout;
flow extremely varied
Cellular layout; flow
varied with pattern
Line flow-Operatorpaced; flow mostly
regular
Many
products
- low
volume
Much
products
medium
volume
Several
product
-high
volume
s
One
product
- very
high
volume
Job
Shop
Batch
Flow
Operator-Paced
Equipment-Paced
Line
FMS
Line flow-equipmentpaced; flow regular
Continuous-Flow
Continuous flow; flow
rigid
Product Life Cycle and the Production System. [Source: John Miltenburg, 8 (2005, p.303)
Figure 2. Product life cycles (PLC) and the production system.
Srivastava and Salunke 87
DISCUSSION and RESULTS
Impact of future trend on marketing Strategy
“I find the great thing in this world is not so much where
we stand , as in which direction we are moving: To reach
the port of heaven, we must sail sometimes with the wind
and sometimes against it but we must sail, and not drift,
and not lie anchor”….Oliver Wendell Holmes, The
Autocrat of the Breakfast Table,1858.
Phenomenological studies make detailed comments
about individual situations, which do not lend themselves
to direct generalization or conclusion. The development
of general theories from phenomenological findings
needs transparency, if it is to have the validity to verify
how research has arrived at individual interpretations.
As Robert Y Kin(2009,pp 127-162),case study guide
line.
•
First by using general strategy based on
theoretical proposition, reduced potential analytical
difficulties
•
Second, to achieve high quality case studies
research five techniques used- Pattern matching,
explanation building, time series analysis, logic models,
and cross case synthesis.
Winning factors for the success of the product
Considering the importance of a new product for the
business performance of an organization, it is vital to
identify critical success factors and measures.
Criteria for customer satisfaction
It is a well-known fact that no business can exist without
customers. Select tips that will make your clients feel
valued, wanted and loved.
Impact of total range of product:
Possible to capture market globally in all continents
where automotive manufacturers exist as per technology
management technique Angela Clarke 11, April (2006).
Industrial equipments are available and an alternative to
competitor will be present in the aftermarket requirement.
Technological Change
This topic addresses the aspect of technological change
from the generation of idea based on the personal
discussion with Dr. Robert G. Kooper6 on 15th September
2008 at Mumbai that can be a potential trend that can
affect marketing strategy. The process can set from a
holistic and a complete lifecycle perspective to product
conception and development and this too is right from the
first stage of customer awareness to the final disposal.
The aim is to plan for a product for at least three
generations ahead and the time will vary depending upon
the organization and the product.
Differentiating and Creating Visibility
For specific product it needs to stand out from its
competitors based on price or value or developing a
niche in the market to become a dominant player.
That is possible to become more visible to each of the
customer groups and its competitors serve by developing
a marketing communications strategy and branding
strategies will help do this.
Learning from competitors
Observe the marketing methods that are successful for
your competitors, improve on them to suit business, and
incorporate these methods into your own marketing
program. The broad characteristics of innovative products
from competition prospect are as under.
Possibility of eliminating steps at application
point- Way to simplify customer needs to accomplish.
Next step required at the customer level is to
validate the performance of the product. The Entire
ecosystem within which the product is used and furthers
the exploration of opportunities for service innovation.
Identify whether too much of creativity is killing the
system of innovation.
Rational benefits of innovative productCheaper, higher life than standard product, faster acting,
cleaner, easy in handling and using, protecting other
parts, sting free, manageable, less noise, trying toward
zero warranty etc.
Emotional benefits of innovative productAttractive, cheaper, self assured, soothing, flattering,
sophisticated, environmental.
CONCLUSION
• International marketing will increase the portfolio for
expansion of business.
• Future trends on marketing strategy influenced
by the total range of the product, pricing level, production
facility, technological change and competitor behavior.
Finally, strategy will be customized based on the
customer situation of that particular business scenario.
88 J. Res. Int. Bus. Manag.
•
Need of a good marketing strategy for the
success of a product is based on uninterrupted review &
augmentation of business and marketing strategies.
Moreover, the identification of best customers, capability
to overcome on strong competitors, potential of
elimination of commoditization, importance of product
range are important parameters to drive towards a vision
of organization .
FURTHER WORKS
The impact of incremental, substantial and break through,
innovations ought to be interesting since these can create
greater impact on firms and industries. The present
system in this research can hopefully support the future
research results that can transfer to practicable
implementation in all three areas of innovation
ACKNOWLEDGEMENT
Special thanks to my faculty member - Professor Dr. R.K
Srivastava from SIMSR and Mr. Andrew Young Warwick UK for their endearing support & insightful
guidance while mentoring me for this module.
Special thanks to auto component manufacturer who
provided me with substantial and valuable information
without which this paper would not be possible to
accomplish.
I am overwhelmed to have had a chance to work with
selfless, humble and intellectual individuals from whom I
have learnt so much and who have encouraged me to go
beyond my aims.
I would like to thank all those who do not find a mention
here, without whom this work would not have been
completed.
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