MS Notes (Guerilla Marketing, GE matrix, internet advertising)

[sagar sankhe]

Q. Guerrilla Marketing?

Ans:  Advertising strategy that focuses on low-cost unconventional marketing tactics that yield maximum results.

Use surprise and/or unconventional interactions in order to promote a product or service. Often relies on personal interaction and has a smaller budget, and it focuses on smaller groups of promoters that are responsible for getting the word out in a particular location rather than on wide-spread media campaigns

E.g.  Kingfisher vs Jet Airways. Jet Airways' hoarding saying “ We’ve Changed”. Kingfisher put their hoarding above saying "We made them change", to which Go Air conveyed that "they did not need to change" as they are still the cheapest airlines and the smartest way to fly

E.g. 2 Future Group vs Westside, Shoppers Stop, Lifestyle

3 catchy advertisements attacking directly it three competitors Westside, Lifestyle and Shoppers Stop.

> Keep West-aSide. Make a smart choice!

> Shoppers! Stop. Make a smart choice!

> Change Your Lifestyle. Make a smart choice!

Q. GE Matrix i.e McKinsey Matrix?

Ans:

In consulting engagements with General Electric in the 1970's, McKinsey & Company developed a nine-cell portfolio matrix as a tool for screening GE's large portfolio of strategic business units (SBU)

Similar to the BCG growth-share matrix but BCG matrix uses the market growth rate as a proxy for industry attractiveness and relative market share as a proxy for the strength of the business unit also GE matrix has nine cells vs. four cells in the BCG matrix, Industry attractiveness and business unit strength are calculated and multiplied by weighting factor, giving quantitative measure of industry attractiveness and the business unit's relative performance in that industry

Steps:

> Industry Attractiveness: (vertical axis) based on Market growth rate, Market size, Demand variability, Industry profitability, Industry rivalry, Global opportunities, Macroenvironmental factors (PEST)

> Business Unit Strength: (horizontal axis) based on Market share, Growth in market share, Brand equity, Distribution channel access, Production capacity, Profit margins relative to competitors

> Plot each SBU as a circle plotted on the matrix, with the information conveyed as follows:

Details:

> Market size is represented by the size of the circle.

> Market share is shown by using the circle as a pie chart.

> Expected future position of the circle is portrayed by means of an arrow.

Example:

The following is an example of such a representation:

Value 38% market share for SBU, Arrow direction means SBU expected to gain strength in future & become more attractive, Tip of the arrow indicates the future position of the center point of the circle

Strategic Implications:  Recommendations are grow, hold, or harvest 

> Grow strong business units in attractive industries, average business units in attractive industries, and strong business units in average industries.

> Hold average businesses in average industries, strong businesses in weak industries, and weak business in attractive industies.

> Harvest weak business units in unattractive industries, average business units in unattractive industries, and weak business units in average industries.

Another e.g. (showing 2 SBUS)

Q. Internet advertising?

Ans:

Uses the Internet to deliver promotional marketing messages to consumers. It includes email marketing (flipkart, snapdeal mails of discounts), search engine marketing (featured/sponsored listing on top and right side), social media marketing(online web campaigns (e.g. tweet #AfterWinning5lac #Cadbury), web banner (on regular websites on top banner or right side banner), pop up (matrimony advertisment)

Benefits of Online Advertising:

> Cost: least (infrastructure involves just a pc, network connection and software package to make a content), fb adds (e.g. lenskart.com gve millions impressions in less priced contracts)

> Measurability: Social media analytics helps you measure effectiveness of campaign

> Formatting: Software like adobe etc lets you format content and make more attractive or interactive

> Targeting: target specific audience using filters given by google adwords, fb adcampaigns

> Coverage: maximum reach compared to traditional methods

> Speed: within few mil-iseconds of creation it starts appearing to target audience

Concern:

> Banner blindness: too much of banners taught users to effectively ignore them (eyes directly bypasses them without even looking at them, so content is ignored entirely)

> Ad-Block Plugins: Ad-Blocker, Pop-up blocker (block advertisments)

> Malware/Adware threat

> Spam 

> Privacy Concerns (user data sharing)

Thanks & Regards,
Sagar Sankhe

Sagar Ramkrishna Sankhe

Ex-Employee: TATA CONSULTANCY SERVICES. (2009-2012)

MMS 2012-14

Consultancy & Entrepreneurship Committees Member at
Sydenham Institute of Management Studies, Research & Entrepreneurship Education (SIMSREE), Mumbai.
Contact No: 9773682257