Strategic Marketing for Oil and Gas Industries

Strategic Marketing for Oil and Gas Industries

Marketing strategies and tactics are concerned with taking decisions on a number of variables to influence mutually-satisfying exchange transactions and relationships. Typically, marketers have a number of tools they can use, these include mega marketing (Kotler,1996)   and   the   so-called   4Ps   of    arketing(McCarthy, 1995), among others. Marketing seems easy to describe, but extremely difficult to practice (Kotler and Connor, 1997). Organizational managers in many firms have applied the so-called marketing concept, which may be simple or complex. The marketing concept and variants like the total quality management concept for example, are essentially concerned with satisfying clients’ needs and wants beneficially. Developing and implementing efficient and effective marketing strategies which incorporate relevant dimensions of the marketing concept, involve the organic tasks of selecting a target market (customers/clients) in which to operate and developing an efficient and effective marketing ingredient combination. Marketing thought, with its practice, has been moving speedily into the service industry (Kotler and Connor, 1997). Literature, partly, centres on the discussion of whether physical product marketing is similar to, or different from, the marketing of service and concludes that the differences between physical product and service might be a matter of emphasis rather than of nature or kind (Creveling, 1995). Marketing is one of the salient and important organic functions which help to service organizations to meet their business challenges and achieve set goals and objectives (Kotler and Connor, 1997). The word “service” is used to describe an organization or industry that “does something” for someone, and does not “make something” for someone (Silvestro and Johnston, 1990). “Service” is used by companies or firms that meet the needs and wants of society, such organizations are essentially bureaucratic   (Johns, 1990). “Service” may also be described as intangible, its outcome being perceived as an activity rather than as a tangible offering. The question of the distinction between services and tangible products is based on the proportion of service components that a particular offering contains (Johns, 1990).

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Marketing Strategy of Lenovo

Marketing Strategy of Lenovo

In 1964, American Marketing expert, Boughton  (1964) produced the marketing mix concept, it is an integrated activity that marketing personnel comprehensively use and optimize the various controllable factors in order to achieve its goals of the marketing. A successful and complete marketing activity means with the appropriate products, the appropriate price, the appropriate channels and the appropriate means of promotion, enterprise products and services are devoted to a specific market. According to the marketing theory, we will pick up the following marketing strategies of the Lenovo based on the above case study.

Target Marketing Choice of Lenovo

At present, Lenovo considers the following factors when choosing target market:

1)  Strong brand awareness, city customers who have advanced concepts. In the personal computer market, the impact of  Lenovo  brand is comparative advantage, so choosing such target customers can cater to the needs of such customers.

2)  Cities customers who have the high level of education, higher on admission, and are aged below 45. Lenovo called this crowd high-end crowd, the crowd is conducive to high-end products sales.  

3)  Developed rural market, those customers have strong brand awareness. This crowd has formed part of purchasing power, Moreover, Lenovo early did the act of the "free movies for countryside" to develop the rural market, the activities have brought the brand impact, so choosing this part of the crowd as the target  customer group, apparently can quickly enter the rural market.

Market Position of Lenovo

Lenovo‟s marketing position mainly considers  the  following  three  factors: Take mainly to the high-end, middle and high-end combination of market positioning methods. Middle and high-end positioning can not only guarantee the consistency of  Lenovo  position in the market, also continue the image and status in consumer's mind, while the  computer industry‟ present status such as the profits decline also decides the only choice for high-end positioning, will it be possible to maintain the long-term favorable market competitive position  (Gan, 2002). Generally speaking, the high-end products‟ unit profits are 2  -3 times more than low-end products, in the pressure of the rising cost situation, low-end products have no guarantee of profits, the profits of enterprises is the key to taking the high-end route.

Low energy is not only the main consumer demand of IT industries, but also an image of the representatives of high-tech enterprise, therefore, choosing low energy consumption and market leading-edge technology positioning will enhance brand image. At present, the service content of Lenovo brand is mainly limited to the after-sales service in a timely manner, etc. such narrow  positioning can no longer meet the needs of the competitive market situation. Management master Michael Porter (2003) said, in the 21st century the multinational companies are unlikely to be manufacturing companies, but the service industry. The new economy is the services economy; the service is the competitive edge. Therefore, the service content of  Lenovo  should learn from the experience of DELL, it should provide more information on purchasing home computers, and after-sale service.

Customers‟ focus has changed from product quality and price gradually to control energy consumption, frequency and quiet technology  (Jack, Telaote, Lise, 2006). So Lenovo's market position should be made promptly converted to meet consumer demand. It is the origin of Lenovo to create the famous Chinese brand, and this existing connotation can continue exist and support Lenovo‟s strategy choice.

The Product Strategy of Lenovo

Lenovo‟s product strategy is the same as target market and positioning, mainly embodied as follows:

Middle and High End Market Positioning

Take Lenovo‟s  personal computer  as example, the market survey shows that its refrigerators mainly focus on middle and high end, Lenovo owns 70% market share in high end products, while the middle end count for 40-50% market share, the market share of low end product is lower than 10%.

Different Competition of Product Development

Through segmenting the market, tapping users‟ unmet demand, thereby pre-empt competitors to develop completely different products from the market, exclusive share the cake of segment market. Seen from the introduction of Lenovo‟s products in the past three years, we can see this development idea. In light of this situation, in 2001 Lenovo introduced the "ThinkPad" machines, which reaches not only to meet the needs of the users but also share the piece of cake alone.  

According to the Channels and the Difference of Segment Markets, Develop and Design Targeted Products

As for the supermarket channel, Lenovo has designed relatively low prices of mid-level products, while high-end products on the electrical chain and retail sales channels. For the rural market, Lenovo designs and develops products that have relatively simple functions, relatively low prices to meet the needs of the students market.

Price strategy of Lenovo

In recent years, the production capacity of IT enterprises seriously exceeds, and this causes to expand market share and the price war has become worse. As a large computer manufacturer, of course,  Lenovo  is subject to the impact  of the price war. However,  Lenovo was demonstrated most vividly in this price war,  Lenovo did not reduce price, while the corporate image enhanced, sales grew and market share expanded, the effective price strategy has enabled Lenovo to exceed in the economy of excessive capacity.

Based on different levels of consumers, Lenovo developed different prices, by creating differentiated products to meet different consumer groups, formulating differential price discrimination. Lenovo domestic market sales operator, Yang (2006) said, Lenovo's production line is continuity, so prices of their products are also of continuity, from more than 10,000 Yuan to more than 2000 Yuan. Almost every 500 Yuan there are two products to serve the different needs and purchasing power of consumers. Lenovo now has 19 species, 200 various models of products; Lenovo's exports and diversified product enable it to avoid involvement in domestic plague of the price war impact of its competitors.

We can see that Lenovo's price strategy can according to products in accordance with the best performance of the physical value, brand value, the value of service and other form of value make  Lenovo  establish an independent  cognitive value in the eyes of consumers, which can be the base of the price  of  Lenovo  products and achieve the relatively independent cognitive value system. This awareness of the value system is not set up like the prices can be as simple imitation. Such an independent value and the price of Lenovo model are built on years of accumulated brand and the concept of service. This created a core competitiveness of Lenovo brand and Lenovo is still invincible in the fierce competition.

Differentiation Strategy

A differentiation strategy is based upon persuading customers that a product is superior to that offered by competitors. The major benefits to Lenovo of a successful differentiation strategy are:

(1) Its products will command a premium price.

(2) Demand or its product will be less price elastic than that for competitors‟ products.

(3) Above average profits can be earned.

(4) It creates an additional barrier to entry new business wishing to enter the industry.

Lenovo is seeking to differentiate itself which will organize its value chain activities to help create differentiated products and to create a perception among customers that these offering are worth a higher price.

Focus Strategy

A focus strategy is aimed at a segment of the market for a product rather than at the whole market or many markets. The major benefits of Lenovo‟ focus strategies are: (1). It requires a lower investment in resources compared to a strategy aimed at an entire market or many markets.  (2). It allows specialization and greater knowledge of the segment being served. (3). It makes enter to a new market less costly and much simpler.

Since Lenovo‟s  is  regarded  to  adopt  cost  leadership  as  its  development  strategy which  share some features  of differentiation in the current by the author, the Lenovo‟s competent advantage is developed from differentiation and cost saving through value chain. Its core competence is illustrated:

· Improved supply chain;

· A cheaper price through lower transaction costs;

· Convenience and twenty-four-hour access;

· Good reputation among customers;

· Quick and efficient search capability;

· The personality of the service;

· Wide selection and one-stop shopping;

· First mover in the market stronger than average and well-known.

Lenovo  famous brand names makes  Lenovo  stay well in the fierce market competition,  Lenovo‟s  lot  of advertising budgets provided a strong guarantee for the material in order to maintain the competitiveness of  Lenovo brand. Over the years, Lenovo brand and Lenovo advertising leave a deep impression in people’s minds, enhancement of brand recognition, is actually the acceptance of Lenovo cultural diffusion.

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Developing Managerial Abilities of Top Managers

Developing Managerial Abilities of Top Managers

This article has argued that the application of individual “rationality”, or judgement, has a pivotal part to play in any model of what management is about. So, the ability to exercise sound judgement is a vital skill for all top managers, including those with responsibility for marketing. It has also argued that at very senior levels the nature of the management job is driven more by organization-wide issues than those more technical issues germane to, say, the marketing function. This might mean that the job of top marketing managers has more in common with the job of top financial, or operations managers, than it does with brand, or even marketing managers.

There seems to be good reason to suppose that, when managers transfer from one firm to another, they are unlikely to be effective until they learn the dominant way of seeing things, the recipe, or the dominant competence, of their new organization: when to see the emperor’s new clothes, and when to see his nudity. They will be successful at this to the extent that they have learned how to learn and are open to the preconceptions, or taken-for- granted notions of other executives. They will build up close relationships with those who are able to help them gain this insight, perhaps from being involved in the kind of projects that expose the newcomer to contexts and experiences from which he or she gain the necessary insights through learning. In this way they are likely to learn to exercise influence in their new context.

So top marketing managers need to be able to resolve uncertainty through the ability to exercise sound judgement. But what else do they need? On the basis of studying the responsibilities of managers in particular jobs, several writers on management have developed specific lists of the activities of managers and have used them to arrive at profiles of the qualities of successful managers. The management development work of Burgoyne and Stuart has led them to the following list of qualities, or attributes, which forms the basis of their recipe for successful management:

·         command of the basic facts;

·         relevant professional knowledge;

·         continuing sensitivity to events;

·         analytical, problem-solving, decision/ judgement-making skills;

·         social skills and abilities;

·         emotional resilience;

·         proactivity;

·         creativity;

·         mental agility;

·         balanced learning habits and skills; and

·         self-knowledge

Some marketing writers have studied the responsibilities of marketing managers as a way of profiling the skills that marketing managers must possess to discharge successfully their duties and responsibilities. Thomas lists these skills as:

·         planning skills;

·         environmental awareness;

·         organizational ability;

·         segmentation – product development skills;

·         behaviour analysis skills;

·         market research-commissioning skills;

·         information analysis skills;

·         innovative management skills;

·         strategic thinking skills;

·         sales and advertising management and productivity;

·         management skills;

·         marketing mix optimization skills;

·         interdepartmental co-operation and conflict resolution skills;

·         financial management skills;

·         systems thinking skills;

·         ability to comprehend the long-term interests of the firm;

·         ability to market “marketing” enthusiastically.

Where do these skills come from? Can marketing managers acquire good judgement or do they have to be born with it? There are no conclusive answers to these questions, just as there are no answers to similar questions about philosophers, football wizards or financiers; although those of us involved in sales and marketing training will readily recall painful episodes spent trying to dispell the myth, widely held among novices, that great salespeople and super-marketers are born, not made. To the newcomer the skill of the successful marketer might seem to be the decisions he or she takes; i.e. the outcomes of some process. The real skill, i.e. the judgements that he or she makes, is as invisible to the casual observer as that of the concert pianist.

Yet, most conscientious management and marketing teachers believe that something useful can be achieved through development and training. On the other hand, the research of Mangham and Silver leads them to argue that management performance is not simply related to training and that companies doing no training are as likely to be successful as those doing a great deal. Can we escape the implications of this research?

For many years, since the time of the ancient Greeks, there has been the feeling that experience is a better teacher of the practical arts of living than study. Is management about living and coping with life, or about applying specific professional knowledge? An airline captain has a detailed knowledge of navigation, aeronautics, weather, route-planning procedures, airport traffic conventions, etc. Learning to fly is largely a matter of experience, but it is not the same as taking a full Boeing 747 out over the Atlantic hoping to find America. There is also a flight-deck and a cabin staff to control. Clearly flying skills must be tempered with detailed knowledge. But how are managerial abilities developed?

Writers on management development and training agree that top managers develop on the job, facing the job’s specific difficulties, in ways that cannot be matched by what happens to them while they are on training or development courses. But what does experience teach? Does study produce the same effect, but less efficiently? These questions probe the what, when and how of management development in ways that become extremely serious at very senior marketing levels.

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Strategic marketing management in promoting e-commerce

Strategic marketing management in promoting e-commerce 

Strategic Marketing Management is an approach that integrates the marketing operation of an organization with all the other managerial functions in order to enable an organization to succeed in the market. Strategic Marketing Management is not only important for the success of organizations with physical infrastructure but also essential for the success of online organizations. Strategic marketing when adapted efficiently can help organizations promote their business and improve their profitability. Strategic marketing is hence indispensable to all organizations. This essay examines the impact of strategic marketing management in promoting E-commerce.

The market today has become dynamic due to advent of technology and the modes of transactions of business. Internet has become the most vital market places of today and electronic commerce has gained an importance among consumers and marketers all over the globe (Nijssen and Frambach R T, 2001). Hence it is not advisable for marketers to stick on conventional marketing strategies and tools. Organizations and marketers must alter their marketing strategies in such a way that they are in place with the changing market scenario. Strategic marketing management is a new concept that has emerged in the recent years. Strategic marketing approach mainly aims at customer satisfaction through competitive advantage. Strategic marketing management is very important for businesses that operate online. Strategic marketing management for electronic commerce consists of monitoring a set of activities like distributing, developing, promoting, pricing and delivering services and products to target market through internet or through digital tools such as smart phones and personal digital assistance. May (2000) argues that E-business is achieved in a better way with the help of strategic marketing. The application of strategic marketing concept to enhance the process of e-commerce helps organizations to lower the operational costs greatly and develop the satisfaction of customer by increasing the efficiency and speed of the marketing process.

Thus it is evident that efficient strategic marketing management promotes E-commerce to a great extent.

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