Designing the Environmental Strategy
Environmental Strategy is the ‘game plan’ that the marketer will use in attaining the objectives of the business. It is a broad concept of how resources are to be deployed to achieve market success. A marketer has to keep options available to him when he is formulating a suitable marketing strategy. The basic tested methods include increasing the average price of all units, increasing the overall sales volume and selling more of the higher price units which are related to the increase in market growth and market share.
The content of a marketing strategy comprises the proposed key features of the firm’s offering (product, price, promotion and distribution) are intended to achieve the firm’s objectives. Coherence: Do all the sub-strategies fit together in focusing on the market Consistency: Are there any inconsistencies among the individual elements? Contribution: Does each sub-strategy or element of the strategy make a distinct contribution? Relative significance: Has the relative significance of each of the various strategies been determined?
Product: Options, models to be marketed, modifications for specific target market, product simplification, invention, service and warranty system, spare parts. Price: Skimming vs. penetration, price relative to current and potential competition. Promotion: Budget, theme, media, timing. If major resources
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Margins, promotional allowances (if any). Short-terms vs. long-term commitments. CONSUMER TASTE Consumer taster is the study of why, how, what, when, where, and how often do consumers buy and consume different products and services. Knowledge of consumer taste is helpful to understand the needs of different consumer segments and developing appropriate marketing strategies for each. It is also useful for understanding of how consumers respond to the various stimuli, which he provides in terms of the product, price, promotion and place.
If he can correctly identify those stimuli that evoke a positive response in the consumer he can very easily design effective strategies using these stimuli. The study of consumer taster also provides an insight into how consumers arrive at the purchase decision and the variable which influences their decision. Once the influencing variables have been identified, the organizations can manipulate them so as to induce in consumers a positive purchase decision. Man is a many faceted, complex psychological being.
His taste is influenced by his motives, perceptions, attitudes and learning. Each of these psychological factors provides a unique mental framework for each consumer – which he makes his decisions. Federal and State regulation of Business In the area of the product the Federal control may affect decision-making with regard to product-line expansion, product quality and safety, provision of adequate and efficient services, branding, sizes and, information to be given with regard to sponsorship, performance characteristics, warranty or guarantee provisions .
The decisions that may get affected in the context of regulation of pricing practices by the state regulation may concern collusive price fixing agreements, resale price maintenance and agreements for price control to eliminate competition, or competitors and also excessive, deceptive, bargain or bait pricing. The other decision areas concern the use of deceptive or confusing trade marks, use of advertisements to cause the ignorant consumer to resort to self-medication. The organizer must ensure that his decision in all these fields conforms to the relevant Provisions of the various Acts and Statutes. of. State Regulation.