Some Winning Marketing Objectives: Win Through Higher Quality!!!

Some Winning Marketing
Objectives
Marketing Objective No.1:
Win Through Higher Quality!!!

Companies with this objective strive to
maintain high quality of their products
They can, however, face four

problems:
3) Most companies are catching up to each other in quality in most

markets: When this happens, quality is no longer the determinant
of brand choice …
Copyright: Raja Shuja-ul-Haq (2009)

Objectives
Win Through Higher Quality!!!

maintain high quality of their products
They can, however, face four

problems:
4) Are there enough customers who are willing to pay a high price in
return of good quality?: Quality comes at a high price, and in some
markets, customers are not willing to pay more for better quality,
for example, portable power tool market (i.e. drill machines),
disposable razor market etc.

Objectives
Win Through Better Service!!!

maintain high levels of service for the
customers …
Even here, customers have different perceptions of good service:

For some customers of a restaurant, good service may be
“delivering food quickly” while other customers may think of it as
“rushing them on what otherwise should be a leisurely evening out”
… therefore, simply claiming “better service” isn’t enough

British Airways strives to win through
exceptional service standards. It provides
an interruption-free flight such that the
travelers can enjoy a peaceful sleep.
Pajamas are available as well as real
pillows once customer are on-board.
Breakfast, shower stalls, comfortable
dressing rooms and freshly pressed
clothes are also provided to the highly
valued customers …

Objectives
Win Through Lower Prices!!!

maintain lowest prices in the market …
Low price alone is not enough to build a viable business: What if

your competitor offers lower prices? A measure of quality and
service must also be present, so that customers feel they are buying
on value, not price alone …

Objectives
Win Through High Market Share!!!

win the highest share of the market …
Market share leadership has both advantages and disadvantages:

While on one hand, market leaders can enjoy economies of scale,
high brand recognition and the “bandwagon effect” (i.e. first time
buyers have more confidence in choosing the brand) … on the other
hand, most market leaders are not that profitable …

Objectives
Win Through Adaptation and

Customization!!!
modify their products and services to
specifically suit the requirements of
each individual customers
A business firm might want FedEx to pick up its daily mail at 7 pm

not 5 pm, or a hotel guest might want to rent a room for only part of
the day … such needs represent opportunities for some companies,
though the costs involved can be very high to practice “Mass
Customization” …

Objectives
Win Through Continuous Product

Improvement!!!
continuously improve / upgrade their
products
What needs to be understood here is that not all product

improvements are valued by customers … many products reach the
limit of their improvement possibilities, and the last improvement
doesn’t matter very much …

Gillette has improved its
shaving systems continuously
with the launch of every new
product
(Gillette’s latest launch,
Fusion Power, is a battery
operated 5 blade shaving
system, an ultimate shaving
machine)
Basic Gillette Model, the Sensor,

released in 1990

Objectives
Win Through Product Innovation!!!

continuously innovate and create their
own markets rather than serving
existing markets
Such companies are market-driving

rather than being market-driven.
However, the dilemma they face is that
if they stop innovating, they will be
“evaporate” and if they do innovate,
they face great risk since on average
80% of the new consumer products
(and 30% of the new industrial
products) fail to gain market
acceptance …
Apple is known for its
continuous product
innovations like the
IPod, IMac, Macbook,
IPhone etc.

Objectives
Win Through Entering High Growth

Markets!!!
enter high growth markets like solid-
state electronics, bio-technology,
robotics and telecom
Some market leaders (like IBM and Microsoft) have been very
successful in entering high growth markets; however the average
firm entering high growth markets most often fails. Another
disadvantage in such fast-growing markets is that products become
obsolete very fast (companies must invest continuously in R&D to
keep up) and companies hardly recover their profits from their last
product before they have to invest in developing its replacement …

The Honda Company has
recently entered the robotics
market with the launch of its
first humanoid robot, ASIMO
(Advanced Step in Innovative
MObility) …
Objectives
Win Through Exceeding

Customer Expectations!!!
exceed customer expectation, not just
meet them …
Such companies make effort to exceed customer expectation so as

to “delight” them rather than simply meet their expectations and
“satisfy” them … but a problem can be that if customer expectations
are exceeded at all times, the expectations will be higher the next
time and the task of exceeding higher customer expectations
becomes more difficult and more costly …

Nordstrom is one of America’s most
successful department stores with the
highest customer loyalty rating. We hear
of a man who came into Nordstrom with
an automobile tire, asking his money back.
Nordstrom gave him back his money.
The only catch is, Nordstrom doesn’t sell

tires!!!

Now that we have
discussed what are the
various marketing
objectives companies
pursue, we will move to the
next stage of the
marketing process:
Environmental Scanning
(Analyzing the environments in which
the company exists)
Scanning The Marketing Environment
Why do marketers scan the market environmen

All companies exist in an
environment and it is important
for them to change (evolve) with
the environment …
The market environment,

especially of the technology
markets, changes on a daily basis
…

“If the rate of change inside a
company is less than the rate of
change outside a company, then
the end is in sight”
Ex-CEO,-General Electric
Jack Welch

Lets talk about YOU first : The Environment in which
you Exist
People living
in your City
Your Reference Group
Your Family
You
University mates, peers,

friends, neighbours

Similarly …
The Marketing Environment Models for
Evaluation
Marco-
environment PESTEL
Analysis
Task
Environment
5-Forces
Model
Company
Customers-
Collaborators-
Competitors Model
Competitive (3Cs Analysis)
Environment

The Marketing Environment What to consider?
National Level Potentially

relevant forces
only*
Operational Level
Potentially
relevant forces
Company
only*
Potentially
relevant forces
only*
Industry Level
*Forces affecting a
company’s sales, costs and
profits
1. Macro Environmental
Analysis
Focus: National Level

The MACRO Environment
Using the PEST / PESTEL Analysis
Legal Ecologica
l
Economic ORGANISATIO Technologic

N al
Political Social

Some Possible PEST Factors (an
example)
Political / Legal Economic

• EU monopolies commission • Business cycle
•Taxation policy • Interest rates / inflation
• International trade policy • Unemployment level
• Joint ventures legislation • Raw material availability
• Disposable Income
Social / Technological
Ecological
• Population demographics • Government spending on research
(household size / number of cars etc.)
• Speed of take-up of new technology
• Income distribution
• Barriers to entry
• Level of environmental concern
• Impact of internet
• Attitudes to work and leisure
• Merging of unrelated sectors
• Education levels (for example, banks and telecoms)
Note: This is just an example and these factor will differ in case of each
geographic location

Emerging Political and Legal
s
 Political and legal forces can influence marketing decisions by

determining the rules by which companies can conduct business
 It is important to monitor political and legal environment so as to

maintain close ties with the government to counter pressure
groups (i.e. Cigarette manufacturer is the UK face a constant threat
from ASH – Action on Smoking and Health)
 Telecom companies in Pakistan are making efforts to strengthen

relations with concerned government bodies like PTA, Ministry of
IT, Ministry of Interior etc.
 TV Channels in Pakistan are affected by rules and regulations laid

down by PMRA (Pakistan Media Regulatory Authority)

Emerging Political and Legal Forces
 Government sets laws governing advertising to keep

advertising legal, decent, honest and truthful (i.e. no
cigarette adverts before 9 pm in Pakistan and health
warning after every advert or restriction on image of
women on billboards in Saudi Arabia)
 Monopoly Control Authorities are also owned by the

government with an assigned task of regulating anti-
competitive monopolies and mergers (i.e. Monopoly
Control Authority of Pakistan)

Emerging Environmental
s
 Use of biodegradable and natural ingredients (i.e. ICI have

developed Biopol, the first fully biodegradable commercial plastic,
after researching future environmental regulations in the UK)
 Recyclable and non-wasteful packaging (i.e. In Austria, used

batteries, PCs and refrigerators containing potentially dangerous
wastes have to be returned back to the retailer by the customers
for recycling)
 Animal testing of new products (i.e. The initial success of Body

Shop products in the UK was because of the fact that they were
not animal tested)
 Alternative Energy / Power Sources (i.e. Mercedes and Swatch

jointly researched the market and launched the “Smart Car” which
runs quite affordably on electricity instead of fossil fuel)

All Products in Europe which are not tested on animals carry this
symbol …

Emerging Technological
s
 Internet being a major source of disintermediation in all

industries and is increasing the sources of information
available for the customers (making customers evermore
sophisticated)
 3G, MNP and GPRS technologies in telecom industry
 Video-conferencing has enabled many companies to reduce

traveling costs; not at all a pleasant news for many airlines
packages targeting the business community
 Life-cycles of many technological products are shrinking by

the day due to high levels of industry innovation (i.e. change
of “market-driven” companies to “market-driving”
companies)
2. Competitive Environmental
Analysis
Focus: Industry Level

The MICRO Environment
Using the Five Forces Model
Who developed the “Five Forces Model”?
Professor Michael. E. Porter, the author of 17 books

and over 125 articles, is a leading authority on
competitive strategy and the competitiveness and
economic development of nations, states, and regions. He
received a B.S.E. with high honors in aerospace and
mechanical engineering from Princeton University in
1969, where he was elected to Phi Beta Kappa and Tau
Beta Pi. He received an M.B.A. with high distinction in
1971 from the Harvard Business School, where he was a
George F. Baker Scholar, and a Ph.D. in Business
Porters 1979 framework uses concepts from
Economics developed
Harvardin Industrial
UniversityOrganizations
in 1973. to derive 5
forces that determine the attractiveness of a market. They consist of those forces close
to a company that affect its ability to serve its customers and make a profit. A change in
any of the forces normally requires a company to re-assess the marketplace.
IMPORTANT
Measuring scale:
Low
Medium to low
Medium
Medium to high
High
IMPORTANT
IMPORTANT
Lets see what competitive
forces is the “PURPLE
GIANT” facing and with
what intensity?
Porter’s 5 Forces Model Example:
Applied to Mobilink in Pakistan
Customers
Weak Threat:
New Entrants
. Cost of license Strong Power:
. High barrier to entry
. Customers have
. Huge cost of 3G
many competing
Suppliers . New functions
offers; some
including free
Low Power: airtime . Low SMS
Nokia, Siemens,
Strong Rivalry: rates .
Burraq Telecom, . Ufone Interconnection calls
ZTE, Ericcson, . free
Comcept, DVCom Telenor . One-rupee-per-
… and many . Warid minute offers on
others. Also, . Zong selected numbers
many different .
call centers, “Djuice” and
media agencies Medium Threat: “UCircle” packages.
etc. .
. Landlines International
Substitutes . Wireless roaming discounts
technology (PTCL’s . Value-
V-phone) added services i.e.
Copyright: Raja Shuja-ul-Haq (2009) . Satellite phones ring-tone download,
sports updates
Impact of E-Business Solutions on Competitive
Environment:
Drawing from the Porter’s 5-Forces Model
Force System Competitive

Advantage
. Reduced entry
New entrants/ Internet cost
substitution E-commerce . New sales
channel
. New service
Suppliers (& Trade E-business .opportunities
Cost reduction
buyers) Logistics . Quick response
Buyers (consumers) Internet . New sale channel

E-business . Buyer
Information
Competitive Rivalry E-business . Cost leadership
. Differentiation

What do you think?
Why is customer bargaining power

increasing?
Customer
Company

 The growing proliferation of products and
competitors mean that there is no shortage of
products; there is a shortage of customers
 This makes the customer KING !!!
 The customer now has access to more information

than ever before ( … thanks to the Internet)
(a)The customers are now a click-away from checking the

prices of different sellers (which can vary as much as
20% in some cases)
(b)The customers can chat with the owners / users of the
product or read their comments (online forums)

 Companies selling exactly the same products or services
have now started to offer more value-added benefits and
incentives to the customer (Dominos will deliver a hot, 5 pound
pizza in 30 minutes)
 Companies are giving more lucrative offers to the

customers i.e. “buy one get one free” or “three for the
price of one”
 It is getting ever more easier for customers to switch

suppliers / service providers without incurring a penalty
(i.e. house mortgages and other banking products,
computers)
In short, customers are becoming

accustomed to exceptional levels of
service …

Some Winning Marketing Objectives: Win Through Higher Quality!!!

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Some Winning Marketing

Win Through Higher Quality!!!

They can, however, face four

3) Most companies are catching up to each other in quality in most

Copyright: Raja Shuja-ul-Haq (2009)

Win Through Higher Quality!!!

They can, however, face four

Copyright: Raja Shuja-ul-Haq (2009)

Win Through Better Service!!!

Even here, customers have different perceptions of good service:

Copyright: Raja Shuja-ul-Haq (2009)

Copyright: Raja Shuja-ul-Haq (2009)

Win Through Lower Prices!!!

Low price alone is not enough to build a viable business: What if

Copyright: Raja Shuja-ul-Haq (2009)

Win Through High Market Share!!!

Market share leadership has both advantages and disadvantages:

Copyright: Raja Shuja-ul-Haq (2009)

Win Through Adaptation and

A business firm might want FedEx to pick up its daily mail at 7 pm

Copyright: Raja Shuja-ul-Haq (2009)

Win Through Continuous Product

What needs to be understood here is that not all product

Copyright: Raja Shuja-ul-Haq (2009)

Basic Gillette Model, the Sensor,

Copyright: Raja Shuja-ul-Haq (2009)

Win Through Product Innovation!!!

Such companies are market-driving

Copyright: Raja Shuja-ul-Haq (2009)

Win Through Entering High Growth

Copyright: Raja Shuja-ul-Haq (2009)

Win Through Exceeding

Such companies make effort to exceed customer expectation so as

Copyright: Raja Shuja-ul-Haq (2009)

The only catch is, Nordstrom doesn’t sell

Copyright: Raja Shuja-ul-Haq (2009)

Why do marketers scan the market environmen

Copyright: Raja Shuja-ul-Haq (2009)

The market environment,

Copyright: Raja Shuja-ul-Haq (2009)

Copyright: Raja Shuja-ul-Haq (2009)

Your Reference Group

University mates, peers,

Copyright: Raja Shuja-ul-Haq (2009)

Copyright: Raja Shuja-ul-Haq (2009)

National Level Potentially

Focus: National Level

Copyright: Raja Shuja-ul-Haq (2009)

Economic ORGANISATIO Technologic

Copyright: Raja Shuja-ul-Haq (2009)

Political / Legal Economic

Copyright: Raja Shuja-ul-Haq (2009)

 Political and legal forces can influence marketing decisions by

 It is important to monitor political and legal environment so as to

 Telecom companies in Pakistan are making efforts to strengthen

 TV Channels in Pakistan are affected by rules and regulations laid

Copyright: Raja Shuja-ul-Haq (2009)

 Government sets laws governing advertising to keep

 Monopoly Control Authorities are also owned by the

Copyright: Raja Shuja-ul-Haq (2009)

 Use of biodegradable and natural ingredients (i.e. ICI have

 Recyclable and non-wasteful packaging (i.e. In Austria, used