MTKG 181 complete midterm review

Market Segmentation - Definition

group with similar needs and will have similar reactions to marketing strategies

Market Segmentation - Types

geographical, demographic, psychographic, behavioral

Segmenting Strategies

• One product multiple market segments

• Multiple products and multiple market segments

• Mass customization

Organizational Synergy

Different business units or departments produce a greater result than if each worked independently.

Cannibalization

When new product eats into the sales of one of its existing products instead of increasing overall sales.

Steps to Segmenting and Targeting

1. Group potential buyers into segments

2. group products to be sold into categories (bundling)

3. Develop a market product grid and estimate size of market

4. Select target market

5. Take marketing action to reach target markets

Steps to Segmenting and Targeting - Step 1: Group potential buyers into segments

• must be cost effective

• increase profit

• similar needs within segment

• different need from other segments

• potential for marketing action

Steps to Segmenting and Targeting - Step 2: Group products to be sold in categories

Bundling

Steps to Segmenting and Targeting - Step 4: select target markets

• market size

• expected growth

• competitive position

• cost of reaching segment

• compatibility with company objectives and resources

Steps to Segmenting and Targeting - Step 5: Take marketing action

• Marketing synergy - one segment many product

• Product synergy - one produce many segments

• balance synergy

• keep an eye on competition

Product Position

define important attributes

• head to head vs differentiation

• repositioning

Perceptual Maps

• identifies two important attributes

• discover how customers rate competing products

• rate yourself

• reposition as needed

Marketing Research Process

1. Define problem

2. Develop research plan

3. Collect relevant infomration

4. Develop findings

5. Take marketing actions

Marketing Research Process - Step 1 define problem

• set research objectives

• identify possible marketing actions

Marketing Research Process - Step 2 develop research plan

• specify constraints

• identify dad needed

• determine how to collect data

Marketing Research Process - Step 3 collect relevant information

• primary data

• secondary data

Marketing Research Process - Step 4 develop findings

analyze and present findings

Marketing Research Process - Step 5 take marketing action

• make action recommendations

• implement action recommendations

• evaluate results

Types of Research Designs

1. Exploratory - little is known about the problem

2. Descriptive - problem somewhat clear, get the who what wen where and how

3. Causal - get the why

Business-to-Business Marketing (B2B)

Marketing to companies, governments, or non-profits

Organizational Buyers

Manufactures, wholesalers, retailers, service companies, government agencies that buy goods/services for their own use or resale

Types of Organizational Markets

1. Industrial (reprocess markets)

   1. Ex: starbucks

2. Reseller

   1. Wholesales and retailers

   2. Ex: Walmart

3. Government

NAICS Codes

Classify8ing business data related to US economy

Business Markets Characteristics

• Few but larger buyers

  • buyers and sellers dependent on each other

• Business derived by customers

Characteristics and dimensions of organization buying behavior

• more technical and formal

• many people involved to evaluate and influence

• online buying is widespread

• price negotation

Online Buying

• timely information

• reduce costs (processing and markeing

• e-marketplaces - online trading communities

Auctions

• Traditional

• Reverse - many sellers, one buyer

Consumer Buying Behavior

Actions a person takes in purchasing a product/service

Consumer Decision Process

1. Problem Recognition

2. Information Search

3. Alternative Evaluation

4. Purchase Decision

5. Post-purchase Behavior

Consumer Involvement Types

1. Extended problem solving, high value, lots of consideration

2. Limited, some consideration

3. Routine, no consideration, low importance

Influences on Buyer Behavior

Influence customer purchase process

1. Marketing Mix

2. Psychological Influences (values, lifestyle, motivations)

3. Situational Influences (surroundings, temporal effect, emotional state, task)

4. Socioculture influences (family, class, references, personal)

Types of Decision Makers

1. Initiation (info gatherer)

2. Influencer

3. Decider

4. Buyer

5. User

Types of Organizations

1. For-profit

2. Non-profit

3. Government agency

Organizational Structure

1. Board of Directors - big picture decisions, not really day to day

2. Corporate-level - what the company as a whole will focus on

3. Business unit-level - focuses on how to compete within a specific industry or market

4. Functional - departmental

Vision vs. Mission

Vision: Future

Mission: Current purpose

Goals Requirements

S - Specific

M - Measurable

A - Attainable

R - Relevant

T - Timely

Business Portfolio Analysis

Collection of business and products that make up the company

Strategic Business Units (SBUs)

division, product line, or single product/brand

Boston Consulting Group (BCG) - Strategic Analysis Framework Definition

• Quantify performance measures and growth targers

• SBUs as different investments

• Growth share-matrix

  • Relaive Market Share and Market growth rate

Boston Consulting Group (BCG) - Measures

1. Stars - high market share, high growth potential (High/High)

2. Question Marks - low market share, high growth potential (Low/High)

3. Cash Cows - high market share, low growth potential (High/Low)

4. Dogs - low market share, low growth potential

Diversification Analysis Framework - Definition

Helps identify, evaluate, and select market growth opportunities

Diversification Analysis Framework - Measures

1. Market Penetration - existing product, existing market

2. Product Development - new product, existing market

3. Market Development - existing product, new market

4. Diversification - new product, new market

Marketing Strategy Process

1. Planning (SWOT, Marketing Strategy, Marketing Program)

2. Implement

3. Evaluation

Strategic Marketing Process, Planning - Market Strategy Focus

Segmentation, Targeting, Positioning, Differentiation

Strategic Marketing Process, Implementation

1. obtain resources

2. design marketing organization

3. define precise tasks, responsibilities, and deadlines

4. execute marketing program

Environmental Forces

1. Social

2. Economic

3. Technological

4. Competitive

5. Regulatory

Environmental Scanning

Process of collecting information on environmental forces

Environmental Forces - Social

Demographics - age, gender, race

Culture - values, ideas, attitudes

Environmental Forces - Social, Cultural Beliefs

Core Beliefs - passed from parents, reinforced by schools and organizations

Secondary - beliefs open to change

Environmental Forces - Economic

Pertains to income, expenditures, and recourse that affect the cost of running a business ($$)

Consumer Income

Gross - total amount earned

Disposable - total amount earned less taxes

Discretionary - total amount earned less taxes and necessities

Environmental Forces - Technologial

Ex: AI, E-commerce, Internet of things, authentication

Framework for Ethical Behavior

1. Societal culture and norms

2. Business culture and industry practices

3. Corporate culture and expectations

Ethical marketing behavior

Competition

• espionage and corruption

Code of Ethics

• formal statement of ethics

Top management and co-workers

• whistle-blowers

Social Responsibility

1. Profit responsibilty

2. Stakeholder responsibility

3. Societal responsibility

Sustainable Marketing - Green Marketing

Focuses on protecting the environment or promoting eco-friendly products and practices.

Sustainable Marketing - Cause Marketing

Focuses on social causes or charitable activities to help people or society.

Marketing Definition

Activity for creating, communicating, and delivering offerings that create value for consumers

Marketing Process

1. Understand marketplace and customer needs

2. Design customer marketing strategy

3. Implement

4. Satisfy customer needs and build relationships

5. Generate profit and increase equity

Physiological needs

Type of Demand

• Ex: food, air, water, shelter, sleep, etc

Safety Needs

Type of Needs:

• Ex: personal security, health, employment, propery

Social Needs

Type of Need

• Ex; friendship, intimacy, family, connection

Esteem Needs

Type of Need

• Respect, self esteem, status, freedom

Five Types of Needs

1. Self-acutalization

2. Esteem

3. Social

4. Safety

5. Phsyiological

Marketing Mix

• Product

• Price

• Placement

• Prommotion

Marketing Program

A plan that integrates the marketing mix to provide a good, service, or idea to prospective

buyers.

• Integrates the 4Ps

Marketing Strategy

The means by which a marketing goal is to be achieved, usually characterized by a

specified target market and a marketing program to reach it.

Difference between Marketing Strategy and Marketing Program

• Marketing strategy: identifies the target market and the overall approach to reach it.

• Marketing program: puts that strategy into action through the marketing mix (4 Ps).

Utility

The benefit or customer value received by users

Customer Value

Unique combinations of benefits received by target buyers

• Ex: quality, price, convenience

Environmental Factors/Forces

Outside marketer’s control that can impact marketing strategy

• Social (ex: trends/opinions)

• Economical

• Technological

• Competitive

• Regulatory

Societal Marketing Concept

Organizations should satisfy the needs of consumers in a way that provides for society’s well being