Marketing management depends on analysis, planning, implementation and controlling of varied programs designed to influence the target market for achieving organizational objectives. For a deep understanding of this topic, Procter & Gamble (P&G) Co. has been taken. It has around 300 established brands that generates up to 95% of profits for them, requires extensive marketing management to compete with diligence in this competitive era. This report makes an extensive analysis of different factors which form a part of overall marketing management of P&G.
a)Vision of company: it desires to be identified as one of the best consumer product and services providing company in the world.
Mission of company:
- Providing branded products and services that possess supreme quality and value that enhance customer's life across the world.
- With a motive to get rewarded by customers that leads to higher sales, profit and value creation (Dahlén, Lange and Smith, 2010).
- Permitting their employees, shareholder and different communities where it lives and work ahead to prosper in this field.
Corporate Strategy of P&G:
- Global standardization strategy is being pursued by P&G group. They look on standardizing their product to gain economies of scale and lowering their cost of product.
- They also focus on pursuing product differentiation strategy, with an aim to dominate marketplace by extensive advertisement and product recognition.
P&G group have directed their marketing strategies toward accomplishing their vision, mission and corporate strategy. It has expanded its operations all over the world (except Cuba) to mark its presence among their customer (Mohr, Sengupta and Slater, 2009). It has also been successful in dominating marketplace by highlighting their stock of products in daily lives of their consumers. Creating hype for its product through celebrity endorsements and social media marketing has lastly justified their motive of Vision, Mission and Corporate strategy.
a)It is a careful analysis of organization's internal and external environmental factors which help in early detecting opportunities and threats which have the potential to affect present and probable future plans. Tools that can help in clear analysis of market environmental are-
- SWOT analysis- SWOT is an abbreviation used for Strength, Weaknesses, Opportunities and threats. This tool can assist the organization in identifying both internal and external factors which affect the organization (Coman and Ronen, 2009). While, internal factors affecting organization can be depicted from Strengths and weaknesses, the external factors are basically opportunities and threats which are impacting the company.
- PESTLE analysis- This factor assist organization when it is operating beyond their domestic barriers. Full form of PESTLE is Political, Economic, Social, technology, legal and Environment. Evaluation of this will help the company in undertaking a smart move and thus avoiding any type of consequences arising from them.
- Porter's five forces- The respective tool help the corporate in analyzing overall market in which it operates (Solomon and et.al., 2014). The five forces that help in intensive analysis of an industry are-
- Intensity of rivalry
- Threat of new entrants
- Threat of substitutes
- Power of buyers
- Power of suppliers
P&G market is focusing on introducing new product in the same marketplace that can help it in capturing a greater market share. For this purpose, it may utilize PESTLE model for effectively launching of its new product-
In order to re-launch an existing product of P&G it is important that, company evaluates overall industry for this it may consider Porter five forces-
Intensity of rivalry
Having a diversified portfolio is very difficult for new competitors to compete with them.
Threat of new entrants
Since, it has been established into different fields it becomes difficult for new competitors to establish diversified product range for their business.
Threat of substitutes
Looking at different emerging substitutes, company still manages in overcoming drawback with its enhanced quality (Phan, Thomas and Heine, 2011).
Power of buyers
As it deals in daily household equipment, it is able to capture its share of sales even at the time of recession period.
Power of suppliers
Having a mutually dependent relationship with its supplier has enabled to curb the problem of enhanced power of its suppliers.
b)The first and foremost thing that a company looks upon is to determine the ways towards which customers are heading and to serve them with the products that best meet their needs on this way
- ECONOMIC MODEL-Here, a consumer specifically divide his income in rational manner to fulfil its needs.
- LEARNING MODEL- Behavior can be manipulated with the help of different drives and stimulus (McCartan-Quinn and Carson, 2003). The response of a consumer to different marketing situation is evaluated.
- PYSCHOANALYTICAL MODEL- Consumer has a motive behind every purchase which drives him to whether to buy a specific product or not.
- SOCIOLOGICAL MODEL- A consumer is driven by social motives and purchases accordingly..
A consumer is likely to get driven by perceptions where an individual makes a clear selection, organizes and interpret the information so drafted to form a meaningful picture in front of world. Consumer makes sound decisions after carefully going through the information. During perception, a consumer is likely undertake any of the below 3 decisions-
- Pays attention to the information so reflected, or
- Makes distortion, or
- Undertakes retention
Business market research is the process of gathering information in order to determine the product which will satisfy the need and wants of consumer and at the same time to become competitive enough to survive in the industry (Savaskan and Van Wassenhove, 2006). Through effective marketing research, it will be able to gain worthy information in relation to different competitors and consumer behaviour.
Market research can help the organization to make crucial customer decision-making and identify potential customer which are in the existing market. It also provides information regarding current competitors and their moves. It helps business to keep a tap on its competitors that ensure sustained growth. While conducting decisions, market research help in recognizing the areas where problems are occurring and accordingly draft their decision to minimize their effects (Sheth and Sisodia, 2005).
Launching of new product
P & G
Strategic market analysis
Developing Product portfolio
Greater proportion of Market share
Aggressive promotion strategy
Re launch of existing product
P & G
Strategic marketing analysis
Porter's Five Forces
Developing brand image
d)The competitor analysis helps in evaluating strength and weakness of present and potential competitors lying within the industry (Cova and Cova, 2002). In order to compete effectively it is important to make effective analysis of competitors move to overcome impact of them on company's marketing strategy.
Five key question which provides information about competitors-
- What is current competitor strategy to acquire greater market sales?
- What are the key factors that they employ which has resulted in its overall success?
- What type of technology is being used by competitors?
- What are the new products that are to be launched by competitors?
- What is the pricing strategy that competitor follows?
Issues arising when undertaking competitive analysis are-
- Information is at times presumed and one cannot totally rely on such presumptions.
- Too much of information on different competitors move might lead to confusions.
It is not easy to evaluate competitor’s strategy. It is mostly held in confidential form. Scanning of competitor will provide business with an advantage to effectively hold its strategic position in the market (Weiner, 2000).
e)P&G is seeking to establish its strategic marketing objective of launching and re-launching which will impact on its growth.
The different type of strategic marketing objectives are niche, hold, harvesting and divest. Company to launch its new product can adopt niche strategy for targeting consumers whose needs are unmet until now. For re-launching of the product, it can undertake harvesting strategy by making modification in current product so that, it can be sold in the current market.
Type of growth strategies are intensive, integrative and diversified strategy. In order to target niche market, the firm can follow diversification growth strategy by adding a new but related product to its portfolio (Vadivu, 2015). For re-launching and enhancing harvesting objective, the company can follow intensive growth strategy, where it can seek increased market share for present product in current market.
f)Competitive advantage is achieved when a company is able to outperform others at a higher level in the same industry. For this, it is important that, the company gains attributes such as access to more resources, specialized skills and enhanced technologies. Competitive advantage is a prime determinant which assures superior performance and more chances of survival in the industry.
Michael Porter's theory of competitive advantage is a tool that is used for analyzing intensity of competitiveness. According to him, competitiveness is a function of four determinants-
- Factor conditions- This refers to resources that affect competition in an industry.
- Demand conditions- Type of goods that are to be produced i.e., decisions related to production are dependent on varied need of consumers.
- Related and supporting industries- Source of competitive advantage must not be taken in isolation rather it must be inclusive of those industries which are directly related to one’s own industry.
- Firm strategy, structure and rivalry- Apart from the factors that determine existence of competitive advantage, it is important to look into strategies, goals and objectives formulated by the company to maintain its competitive edge in industry (Koufaris, 2002).
By considering these will help Procter & Gamble (P&G) Co. to sustain its competitiveness in the industry.
g)When a consumer makes a final purchase, he is likely to get driven by various factors that impel him to make a selection. Factors that influence consumer behaviour are-
- Cultural factor- It is has the strongest impact on consumer behaviour. Consumer with their growth in terms of age has a tendency to develop a unique set of buying pattern in light of cultural values and standards. It is important for a marketer to get himself acquainted with buyer norms and values before undertaking a strategy and campaign.
- Social-Buyer belonging to a group makes a decision on the basis of buying preferences of the group. Group may consist of family and friends (Kotler and Armstrong, 2007).
- Personal Factor- The personal characteristic like occupation, age, lifestyles, economic condition etc. are likely to influence buying pattern of an individual.
- Psychological- Each individual is driven by some psychological characteristic which influences its buying behaviour like motivation, learning, attitude and beliefs etc.
h)Market Segmentation is to evaluate potential consumers who are interested in buying one's product. It is important for P&G Co. while launching a new product to identify that segment which is most fruitful for the company. Through targeting, one can optimize its efficiency in relation to overall advertising investments. It can use behavioural segmentation so that, the company can target those consumers who are health conscious and introduce its new washing product that have user friendly ingredients harming the least to skin (Warner, 2010).
On the other hand, product differentiation implies the way in which one's product is different from another which is competing in same market from same customers. It is important to spread the word to public about quality and different benefits that a product serves along-with recognition of uniqueness of product among customers. In order to re-launch the product, P&G Co. must differentiate its product from other competitors by customizing design and adding unique features to its existing product. It can re-launch its new range of Head &Shoulder shampoo which not just clean scalp but also reduces occurrences of split ends and damages caused to hair.
I)The purpose of carrying out market segmentation is to choose one segment and then aggressively target the segment by using different strategies. There are mainly 3 type of targeting strategies-
Spreading the same promotional message to all.
Drafting promotional message that communicates benefits that are desired by a specific segment (Polonsk and Wood, 2001).
Drafting more than one promotional message with each message communicating varied benefits.
For the purpose of launching new product, company can seek to adopt concentrated strategy. But for re-launch of Head &Shoulder shampoo it can use differentiation strategy.
j)Positioning is about how one can look up to differentiate their product and enhancing its value in the market. With the help of positioning, P&G co. can effectively create an image which will further help in capturing attention of the potential customer's. Key elements that affect and enhance positioning of a company are-
- Brand communication- marketer invests their time, efforts and money towards building the brand position among selected target market. Perceptual mapping is one technique that helps in building brand position. Perceptual mapping reflects differentiation of P&G co. product among others products which creates differentiation image in customer's mind (Tsai and Shih, 2004).
- Physical Attributes- It helps in defining a particular product that affect consumer buying decision. These attributes maybe further bifurcated into tangible and intangible attributes. Tangible specifies product characteristic on basis of size, weight, colour and touch. On the other hand, intangible attributes depicts the product characteristics such as price, quality and reliability.
- Customer's Perception- The customer verdict before making a purchase is considered as customer perceptions. Customer awareness, consciousness and impression about a companies' product and its offerings reflect overall perception derived by a customer.
a)Marketing mix is a marketing tool employed by a company to produce desired responses from its overall target market.
Quality, varieties, designing, features, packaging and labelling, brand name, services etc.
List prices, special discounts, payment terms, credit period, allowance etc.
Channel of distribution, inventories, logistics, locations etc.
Personal selling, Advertisements, sales promotions, PR
The combination of all 4 P's will help in effective accomplishment of marketing strategy. By employing of the above 4P's, company is able to meet their marketing objectives by providing customers with desired value (Laros and Steenkamp, 2005).
b)Product development is a process through which company either creates an entirely new product or add onto its existing product line or occupy the niche market or modifies by updating its existing product. Inclusion of product developments helps the organization in applying its innovation which is an essential element in assuring business success. New product development also helps the company to grow, flourish and sustain its competitiveness with the ability to anticipate changes in their technology.
Branding is way beyond than just logo or graphical symbols; it is in fact about the complete customer experience. It is crucial for the organization to be aware about its brand experience and adopt a plan to create brand experience which a company desires to have. Branding enhances recognition, company strive to build their image in industry and provide them with competitive advantage. Branding is consistent and it becomes easier for customers to recognize company brand while purchasing. In all, it boosts up the sales and revenue of the company.
c)Where, products having similar core feature, but are produced by different companies, competition is likely to appearing this situation. Costing and pricing decisions are highly driven by competition persisting in the industry. Greater product features can provide an added advantage to company for charging higher prices than its competitors. Before, finalizing the price of a product, it is important to make extensive research on the overall intensity of competition that persists for a product in a particular industry (Jobber and Ellis-Chadwick, 2012).
With effective analysis of competitor pricing strategy, it will help the company to effectively determine present price range for its product. Comparison of company's product on basis of price becomes easier. By carefully analyzing, company can undertake its pricing decisions which will assist in gaining competitive advantage.
d)Marketing communication refers to specific method used by company to promote its product among targeted customer. Marketing communication belongs to the last P of marketing mix i.e., Promotion. Ways through which marketing communication can be made are-
- Public Relationship
- Sales promotional
- E-marketing through social media
Marketing communication helps in moulding customer behaviour through aggressive promotion of products. This helps the organization to spread their ideas and thoughts to the masses in less time.
e)Establishment of marketing channel is necessary for transferring of goods from producer to consumer. It is important for the organization to ensure that goods were delivered in time, for effective distribution it can keep marketing channel short by directly selling product from vendor to consumer; or it may include different intermediaries like wholesalers, agents, distribution and retailers (Sakmann, 2013).
Distribution is among the primary factors that is involved in a marketing-mix and which help in determining how and where it can respond to beat the competition from others. Company can gain competitive advantage by following a streamlined process of marketing channels. In order to gain this advantage, the firm can evaluate its overall process and activities that are involved in effective promotion and distribution of goods.
a)Marketing strategies in the below 3 sectors-
- Commercial organization-These companies are classified as profit making organizations. Belonging to a highly competitive market, it is important to make bold decisions to have a strong position that can help in enhancing economic situation. These organizations target consumers to maximize their overall profits (Koufaris, 2002).
- Not for profit organization- Such firm promotes social cause and objective and aim at building awareness in public. These focuses on achieving their social objective than financial rewards.
- Public organization-These organizations are formed with a motive to provide services to the community. Profit making is one of the objectives but not the only objective. It aims at providing dual benefits, social and economic benefits.
Marketing techniques that can be employed by these sectors are-
- Internet marketing- Where organization makes use of internet and social media for promotion of its business objectives.
- Digital Marketing- Television, radio and other media may be used here for promotion
- Print media- This involves promotion through magazines, newspapers, pamphlets, brochure etc.
b)Marketing has both positive and negative impact on society. Positive impact is that, customer problems are quickly solved than before, now consumers can be approached globally, brand recognition and technology is the driving force in all. Negative impact is that, people are making undue advantage by harming other people interests at times (Sheth and Sisodia, 2005).
Marketing is now expanding itself globally and this has increased the overall GDP growth of economy in which company is currently registered. In order to gain more revenue country government have liberalized their rules and regulations that has paved the path for flexible marketing in the country.
From this report it can be concluded that, P&G co. has adopted PESTLE and Porter five forces to analyse competitiveness which company faces globally. The different models that influence consumer buying decisions are Economic, learning, psychoanalytical and socialistic. Impact of price product, place and promotion helps in providing competitive advantage to company. It shows the role of different sectors and techniques which are employed by them for marketing such as internet, print media and digital marketing.
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