mm lecture 4 am
Post on 08-Aug-2018
214 Views
Preview:
TRANSCRIPT
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 1/28
Unit IMarketing Strategy and
the Marketing Mix
Prof. Arun Mishra
arunjimishra@gmail.com
9893686820
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 2/28
Marketing Strategy
• Market segmentation is the division of a
market into distinct groups of buyers who have
distinct needs, characteristics, or behavior andwho might require separate products or
marketing mixes
• Market segment is a group of consumers who
respond in a similar way to a given set of
marketing efforts
Customer-Driven Marketing Strategy
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 3/28
Requirements for Effective Segmentation
• Size, purchasing power, profilesof segments can be measured.
• Segments can be effectively reached and served.
• Segments are large or profitableenough to serve.
Measurable
Measurable
Accessible
Accessible
Substantial
Substantial
Differential
Differential
Actionable
Actionable
• Segments must responddifferently to different marketingmix elements & programs.
• Effective programs can bedesigned to attract and serve
the segments.
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 4/28
Steps in Segmentation, Targeting &
Positioning
1. Identify Basesfor Segmenting the Market
2. Develop Profiles
of Resulting Segments
3. Develop Selection Criteria
4. Select TargetSegment(s)
5. Develop Positioningfor Each Target Segment
6. Develop MarketingMix for Each Target Segment Market
Positioning
MarketTargeting
Market Segmentation
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 5/28
Market SegmentationLevels of Market Segmentation
Mass MarketingSame product to all consumers
(no segmentation)
Mass MarketingSame product to all consumers
(no segmentation)
Segment MarketingDifferent products to one or more segments
(some segmentation)
Segment MarketingDifferent products to one or more segments
(some segmentation)
MicromarketingProducts to suit the tastes of individuals and locations
(complete segmentation)
MicromarketingProducts to suit the tastes of individuals and locations
(complete segmentation)
Niche MarketingDifferent products to subgroups within segments
(more segmentation)
Niche MarketingDifferent products to subgroups within segments
(more segmentation)
Local Marketing
Tailoring brands/ promotions
to local customer groups
Individual Marketing
Tailoring products/ programs
to individual customers
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 6/28
Market SegmentationBases for Segmenting Consumer Markets
Geographic
Demographic
Age, gender, family sizeand life cycle, or income
Psychographic
Social class, lifestyle,or personality
Behavioural
Occasions, benefitssought, user status,
usage rate, loyalty
Nations, states,regions or cities
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 7/28
Market SegmentationBases for Segmenting Business Markets
Bases
for Segmenting
Business
Markets
Basesfor Segmenting
Business
Markets
DemographicsPersonalCharacteristics
SituationalFactors
OperatingCharacteristics
PurchasingApproaches
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 8/28
Segmenting Business Markets
• Segmentation by customer size or
geographic location
• Four segments of business customers
– Programmed buyers
– Relationship buyers
– Transaction buyers
– Bargain hunters
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 9/28
Marketing Strategy
• Market targeting is the process of evaluating
each market segment’s attractiveness andselecting one or more segments to enter
• Market positioning is the arranging for a
product to occupy a clear, distinctive, and
desirable place relative to competing productsin the minds of the target consumer
Customer-Centered Marketing Strategy
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 10/28
Market TargetingEvaluating Market Segments (developing selection criteria)
• Segment Size and Growth – Analyze sales, growth rates and expected profitability for
various segments.
• 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.
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 11/28
Market TargetingMarket Coverage Strategies
Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
CompanyMarketing
Mix
Company
MarketingMix
CompanyMarketing
Mix
CompanyMarketing
Mix
Company
Marketing Mix 1
Company
Marketing Mix 1
Company
Marketing Mix 2
CompanyMarketing Mix 2
Company
Marketing Mix 3
Company
Marketing Mix 3
MarketMarket
A. Undifferentiated Marketing
B. Differentiated Marketing
C. Concentrated Marketing
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 12/28
Positioning for Competitive Advantage
• Product’s Position - the way the product isdefined by consumers on important attributes- the place the product occupies inconsumers’ minds relative to competingproducts.
• Marketers must:
– Plan positions to give their products the greatestadvantage in selected target markets,
– Design marketing mixes to create these plannedpositions.
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 13/28
Positioning for Competitive Advantage:
Strategies
Against a
Competitor
Against a
Competitor Usage
Occasions
Usage
Occasions
Away fromCompetitors
Away from
Competitors
Product
Attributes
Product
AttributesProduct
Class
Product
Class
BenefitsOffered
Benefits
Offered
User ClassUser Class
BB
AA
EE
DD
CCH
HGG
FF
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 14/28
Steps to Choosing and Implementing a
Positioning Strategy
• Step 1. Identifying Possible Competitive Advantages:Competitive Differentiation.
• Step 2. Selecting the Right Competitive Advantage:
Unique Selling Proposition (USP).
• Step 3. Communicating and Delivering the ChosenPosition.
• Step 4. Support the positioning strategy with a uniquemarketing mix
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 15/28
Developing Competitive Differentiation
ProductProduct ServiceService
ImageImage PeoplePeople
Areas for Competitive
Differentiation
Areas for Competitive
Differentiation
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 16/28
Selecting the Right Competitive
Advantages
Criteria
for Determining
WhichDifferences
to Promote
Criteria
for Determining
WhichDifferences
to Promote
AffordableAffordable Superior Superior
ProfitableProfitable
Pre-emptivePre-emptive
DistinctiveDistinctive
ImportantImportant
CommunicableCommunicable
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 17/28
Marketing Mix
• The term 'marketing mix' was first used in 1953by Neil Borden, in his American Marketing
Association presidential address, took the recipe
idea one step further and coined the term
"marketing-mix". A prominent marketer, E.Jerome McCarthy, proposed a 4 P’s classification
in 1960, which has seen wide use.
• Marketing mix is the set of controllable tacticalmarketing tools—product, price, place, and
promotion—that the firm blends to produce the
response it wants in the target market
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 18/28
Marketing MixDeveloping an Integrated Marketing Mix
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 19/28
Managing the Marketing Effort
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 20/28
Managing the Marketing Effort
Marketing Analysis – SWOT Analysis
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 21/28
Managing the Marketing Effort
Market Planning—Parts of a Marketing Plan
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 22/28
Managing the Marketing Effort
Implementing is the process that turns
marketing plans into marketing actions to
accomplish strategic marketing objectives• Successful implementation depends on how
well the company blends its people,
organizational structure, decision and reward
system, and company culture into a cohesive
action plan that supports its strategies
Marketing Implementation
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 23/28
Managing the Marketing Effort
Marketing Department Organization
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 24/28
Managing the Marketing Effort
• Controlling is the measurement and
evaluation of results and the taking of
corrective action as needed• Operating control
• Strategic control
Marketing Control
M i d M i
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 25/28
Measuring and ManagingReturn on Marketing Investment
Return on marketing investment (Marketing
ROI) is the net return from a marketing
investment divided by the costs of the
marketing investment. Marketing ROI provides
a measurement of the profits generated by
investments in marketing activities.
Return on Marketing Investment (Marketing ROI)
8/22/2019 MM Lecture 4 AM
http://slidepdf.com/reader/full/mm-lecture-4-am 26/28
Marketing Strategy and the Marketing Mix
top related