marketing

 What is marketing, and what are the main goals of marketing? ➢ Marketing is the science & art of exploring creating and delivering value to satisfy the needs of a target market at a profit (definition) _ identify, satisfy, retain clients

❑ Q3. What do you understand by a Situation Analysis ? ➢ A Situation Analysis looks at: ▪ External factors affecting the macro environment of a business in its → O or/and T ? ▪ Internal capabilities of the company → S or W (facing the environment) ▪ This Situation Analysis is often called a “SWOT“ analysis

Q4. Describe the main stages of the Marketing process and the questions/concerns each stage corresponds to. ➢ Marketing process moves from Analysis (where are we now?) to corporate/company strategy (where do we want to go?) to marketing strategy & mix (how are we going to get there?) & evaluation of execution of strategy (does it work?)

Q6. An essential step of the Pestel is the diagnosis. What does this refer to? ➢ After having identified these external forces, you diagnose each one as either Opportunity or/and Threat for the future development of the industry the company is operating in

Q1_What do you understand by « Market Intelligence »? • Market Intelligence is the practice of collecting and analysing external data about a specific market a company wishes to enter (also called Market Research)

Q5_What do you understand by the « analysis of the Microenvironment »? • Microenvironment relates to the study of: - The market itself = Key quantitative indicators + Market structure + Market attractiveness/growth potential /trends + Seasonality - The actors of Supply (competitors/distribution channels) - The actors of Demand (the consumer/end user of the product but also the one who decides, who buys/pays and influences)

Q6_When studying the « Market Structure » what type of information would you need to collect? • Market Structure : Level & form of competition + Accessibility/ease of entry + Type of business (B2B, B2C, C2C?) + Size & scope (mass or niche market?) + Dispersion of consumers (fragmented or concentrated?) + Types of distribution channels (physical stores? Ecommerce?)

Q7_What are the key Quantitative Indicators of a market? • Quantitative indicators: Sales (volume & value) and growth trends + Categories of products making up the market + Market share & evolution of competitors + Actual & potential demand + Penetration rate

Q3_What is competitor analysis? What do you include? • Competitors’ analysis looks at their key Strengths & Weaknesses relative to your own position. Typical criteria used to carry out this analysis are: Turnover, position on the market (leader, challenger, follower), market share, profit, resources (belonging to a large group?), geographical coverage, positioning (how they differentiate on the market), marketing mix (Product, Price, Place & Promotion which we will study 2nd sem)…

Q5_Define actual and potential demand • Demand is composed of Actual + Potential demand. Actual = existing customers; Potential = relative non consumers you need to prospect and persuade

Q6_What roles can an individual play in a buying situation? • Consumers may adopt different roles in a buying decision. ➢ Decider, buyer, end-user, influencer • These may be the same or different individuals

Q1_What are the main types of market research you know? Research can be primary or secondary, Qualitative or quantitative

Q1_What is Consumer behavior? What social sciences does it include? • Consumer behavior : inter-disciplinary social science that blends elements from psychology, sociology, social anthropology, marketing & behavioural economics.

Q2_Why is it important to understand Consumer behaviour? • Understand, explain, anticipate/ predict consumer behaviour • Brands must adapt their marketing activities to: ➢ Stand out of the crowd at every stage of the purchasing process to be the “lucky winner” at decision stage ➢ Use influencing factors to their advantage

Q3_What do you understand by social factors? (external factors) • Social factors include Culture (national identity, symbols, typical foods, sometimes typical religions), subculture (regional identities, ethnic origin) + Primary & secondary reference groups ❑ Q4_What do you understand by situational factors? (external factors) • Situational factors are external stimuli – buying task and the marketing environment which influence the consumer during purchase

Q5_What do you understand by personal factors? (internal factors) • Personal factors: age, family lifecycle stage, income, status, lifestyle and values, personality

• A need is a consumer’s desire for a product’s specific benefit, whether that be functional or emotional (e.g. dryness or sexiness for an anti perspirant) = Solution!

Q5_Name the different types of purchases and what characterises them • Low involvement = simple/low risks & routine purchase • High involvement = complex/high risks purchase • Impulse purchase = unplanned

Q8_What is the « knowledge set » and the « consideration set »? Why does for a brand/product be part of both sets? • Knowledge set = all the brands of the category I know/ I am aware of • Consideration set = the ones I consider buying.

Q1_ What do you understand by segmentation? • Market segmentation is about dividing a “total” market into smaller homogeneous groups of consumers (= segments) who share the same need and have similar characteristics/profiles

Q4_What is a « segmentation table », and why establish one? • It is a table which summarises the different segments’ profiles of the market, and describes their needs and characteristics. • It helps you to determine a target…or more if you can afford it !

Q5_What is targeting and why do it? What is the link to segmentation and positioning? What is a Persona? Targeting is about: • Evaluating the attractiveness of the segments identified on the market…and potential new ones ➢ Evaluation criteria: size/commercial value, growth, potential long term opportunities & risks, costs, benefits to enter the segment • Link to segmentation: Targeting is about choosing one consumer segment (or more if you can afford it) = your target(s) • Link to positioning (next session) : you will have to work out how you can serve your target consumer needs in a unique/superior way from the existing offers of competitors • A “Persona” is a sample individual (a personification) representative of your typical target consumer. It summarizes its profile based on salient segmentation variables.

Q6_What are the 4 targeting strategies that can be adopted? ❑ Q7_What are the main characteristics of each? • Undifferentiated /Mass = No segmentation! ➢ Mass population, identical needs, No/low differentiation products, one strategy, product suits all customers; • Differentiated /Multi-segment: ➢ Large population but distinct needs leading to distinct marketing strategies and product offerings • Concentrated / Niche marketing ➢ Focus on a small part of a segment with a very specific need, and become an expertof this niche • Micro /personalization ➢ Tailoring products (or certain parts of it) to suit the specific tastes of individuals (one product per consumer) ➢ « Mass customization » (e.g: Coca-cola or M&Ms)

Q8_How to choose between the different targeting strategy? Depends on: • Company resources (startups vs large or multinational companies) → If your resources are limited, it’s better to concentrate on one target • Degree of product or market variability: → If product vary a lot (e.g.: in design), you may need to sub-segment and differentiate your offer • Product life cycle: → At launch stage, focus on one version of product for your target → As the market grows you can introduce different versions of products catering for sub-segments needs

Q1_ What do you understand by positioning? • Positioning is the act of designing a company’s offering and image to occupy a distinctive place in the hearts & minds of the target market ➢ Underlying key question: what makes your product different & better? = DIFFERENTIATION ➢ Your positioning should communicate why your targeted consumers should select your offering over the competitors and how you deliver the benefits you promise ❑ Q2_What is a « positioning statement »? • A positioning statement is one sentence that concisely identifies the target market and what you want customers to think about your brand. ➢ The positioning statement formalizes/spells out your positioning 8 Key Q & A_Pods 17 & 18 ❑ Q3_ What are the 4 constituent parts of the positioning statement? • Target = the segment of consumers the brand has chosen), • Frame of Reference = the market or the product category in which the brand competes), • Benefits = the points of differentiation versus competitors • Reason to believe = the proof that the brand can deliver its promises ➢ A positioning statement is one sentence that formalizes your positioning, building on the 4 pillars/constituents above: For (target audience), (brand name) is the (frame of reference)that delivers the most (benefits/points of difference) because only (brand name) is (reason to believe) ❑ Q4_ What is the link between positioning and the marketing mix? • Positioning is a roadmap for everyone in the company to design a coherent & consistent marketing mix • The positioning is created through /concretized by the marketing mix (also known as the 4 Ps): ➢ What Product, at which Price, Place (= where = the distribution channels in which the product will be sold) and the Promotion (= the communication activities that will support your offering). → 2nd semester ➢ It is not a slogan, it is not designed to be read by the consumer, it is an internal tool 8 Key Q & A_Pods 17 & 18 ❑ Q5_ What are the steps to determine your positioning? 1. Analyze the Target audience, their needs and the value/benefits you can deliver; 2. Analyze the competitors’ positioning; (what makes them stand out?) 3. Find an empty territory; 4. Summarize your offering in 3 adjectives which best describe your will be the foundation of your positioning 5. Formalize your positioning in a compelling position statement

Q8_ What is a « me-too » product strategy? Why use it? • Deliberately copying the market leader to make use of their power/dominance to « piggyback » or be pulled along by them.