The company is likely to pursue at any time a number

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The company is likely to pursue at any time a number of important objectives rather than one. For example, a company states that it seeks to provide a quality product that will maximize customer satisfaction, provide an adequate return, and increase the company’s total market share. these are admirable objectives but raise the question of whether they are all consistent. Sometimes the objectives are clearly inconsistent, as when management says that it wants “to maximize sales and profits”, or wants “to achieve the greatest sales at the least cost”, or want “to design the best possible produc t in the shortest possible time”. It must be recognized that these objectives are in a trade-off relationship. It is not possible to maximize simultaneously sales and profits. One can increase sales by lowering price, improving product quality, and increasing marketing effort, although these steps, beyond a point, are likely to reduce profit. A statement involving two basic objectives in a trade-off relationship is of no help as a management guide without further specification. DEVELOPMENT MARKETING STRATEGY Objectives are a statement of where a company wants to go; strategy is a grand design for getting there. Strategy is a battle plan fused out of marketing financial and manufacturing elements. Marketing strategy of a firm is the complete and unbeatable plan or instrument designed specifically for attaining the marketing objectives of the firm. The marketing objectives will tell us where the firm wants to go; the marketing strategy will provide the design for getting there. According to Michael E. Po rter, “Marketing strategy has mainly one aim -to cope with competition. There are five major and vital forces that decide the nature and intensity of competition the treat of new entrants, bargaining power of customers, bargaining of suppliers, threat of substitute products and the jockeying among the existing contestants. The collective strength of these forces determine the ultimate profit potential of an industry. And the strategist’s goal is to find a position in the industry where his company can best defend itself against these forces or can influence them in his company’s favour. Strategy can be viewed as building defences against the competitive forces”. Marketing strategy is the instrument leading to the attainment of the marketing objectives. It means that the burden of attaining the marketing objectives rests with marketing strategy. it is only logical them, that marketing strategy takes the direction and cue from the objectives and goals of the firm. FORMULATING THE MARKETING STRATEGY Formulation of marketing strategy consists of five main steps: Annamalai University
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33 1. Market Segmentation : Market segmentation is the basic recognition that every market is made up of distinguishable segments consisting of buyers with different needs, buying styles, and responses to offer variations. No one approach to the market will satisfy all buyers.
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