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LETS LEARN MARKETING

MARKETING IS FUUUUUUUUUUUUUUUUUNNNNNNNNNN

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You see a gorgeous girl at a party. You go up to her and say: "I am very rich. Marry me!" That's Direct Marketing You're at a party with a bunch of friends and see a gorgeous girl. One of your friends goes up to her and pointing at you says: "He's very rich. Marry him." That's Advertising You see a gorgeous girl at a party. You go up to her and get her telephone number. The next day, you call and say: "Hi, I'm very rich. Marry me." That's Telemarketing

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You're at a party and see gorgeous girl. You get up and straighten your tie, you walk up to her and pour her a drink, you open the door (of the car) for her, pick up her bag after she drops it, offer her ride and then say: "By the way, I'm rich. Will you marry me?"

That's Public Relations

You see a gorgeous girl at a party. You go up to her and say: "I am very rich. Marry me!" She gives you a nice hard slap on your face. That's Customer Feedback

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You see a gorgeous girl at a party. You go up to her and before you say: "I'm rich, Marry me!" Your wife arrives. That's restriction for entering new markets

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BASICS OF MARKETING

Market Segmentation MBA

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Introduction

Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers.

A customer group within the market that has special characteristics which are significant to marketing strategy

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Need and Benefits of Segmentation

Better matching of customer needs Enhanced profits for business Better opportunities for growth Retain more customers Gain New Clients

Steps in Segmentation, Targeting, and Positioning

6. Develop Marketing Mix for Each Target Segment 5. Develop Positioning for Each Target Segment 4. Select Target Segment(s) 3. Develop Measures of Segment Attractiveness 2. Develop Profiles of Resulting Segments 1. Identify Bases for Segmenting the Market

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Market Positioning

Market Targeting

Market Segmentation

Step 1. Market Segmentation

Levels of Market Segmentation
Mass Marketing
Same product to all consumers (no segmentation)

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Segment Marketing
Different products to one or more segments (some segmentation)

Niche Marketing
Different products to subgroups within segments ( more segmentation)

Micromarketing
Products to suit the tastes of individuals or locations (complete segmentation)

Step 1. Market Segmentation

Bases for Segmenting Consumer Markets
Geographic
Nations, states, regions or cities

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Demographic
Age, gender, family size and life cycle, or income

Psychographic
Social class, lifestyle, or personality

Behavioral
Occasions, benefits, uses, or responses,Loyalty

Using Multiple Segmentation Bases: Geodemographics

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Step 1. Market Segmentation

Bases for Segmenting Business Markets

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Personal Characteristics

Demographics

Situational Factors

Bases for Segmenting Business Markets Purchasing Approaches

Operating Characteristics

Step 1. Market Segmentation

Bases for Segmenting International Markets

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Industrial Markets

Geographic

Economic

Political/ Legal

Cultural

Intermarket

Step 1. Market Segmentation

Requirements for Effective Segmentation
Measurable Accessible Substantial Differential Actionable

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Size, purchasing power, profiles of segments can be measured. Segments must be effectively reached and served.

Segments must be large or profitable enough to serve.

Segments must respond differently to different marketing mix elements & actions.

Must be able to attract and serve the segments.

Step 2. Market Targeting

Evaluating Market Segments Segment Size and Growth
Analyze sales, growth rates and expected profitability.

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Segment Structural Attractiveness

Consider effects of: Competitors, Availability of Substitute Products and, the Power of Buyers & Suppliers.

Company Objectives and Resources

Company skills & resources relative to the segment(s). Look for Competitive Advantages.

Step 2. Market Targeting

Market Coverage Strategies
Company Marketing Mix
A. Undifferentiated Marketing

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Market

Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 3

B. Differentiated Marketing

Segment 1 Segment 2 Segment 3

Company Marketing Mix

Segment 1 Segment 2 Segment 3

C. Concentrated Marketing

Step 2. Market Targeting

Choosing a Market-Coverage Strategy
Company Resources

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Product Variability
Products Stage in the Product Life Cycle Market Variability Competitors Marketing Strategies

Step 3. Positioning for Competitive Advantage

Products Position - the place the product occupies in consumers minds relative to competing products; i.e. Volvo positions on safety. Marketers must:

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Plan positions to give products the greatest advantage Develop marketing mixes to create planned positions

Step 3. Positioning for Competitive Advantage: Strategies

Product Class Away from Competitors Product Attributes Benefits Offered
C

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G H

Against a Competitor

D E B F

Usage Occasions

Users

Steps to Choosing and Implementing a Positioning Strategy

Step 1. Identifying a set of possible competitive advantages: Competitive Differentiation.

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Step 2. Selecting the right competitive advantage. Step 3. Effectively communicating and delivering the chosen position to the market.

Developing Competitive Differentiation

Product

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Service

Areas for Competitive Differentiation

Personnel

Image

Selecting the Right Competitive Advantages

Important

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Profitable

Affordable

Criteria for Determining Which Differences to Promote

Distinctive

Superior

Preemptive

Communicable