Download - Managing Marketing Processes_Seminar 4
Seminar 4
Managing Marketing Processes----Identifying Market Segments and Targets: Exploring Segmentation, Targeting, and Positioning
Robin TeiglandMaster of General ManagementStockholm School of Economics
September 10, 2013
Seminar 4 Overview
Marketing Plan Group Assignment
Aqualisa Quartz Case
STP
2
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
2-3
What is a Marketing Plan?
A marketing plan is the central instrument for
directing and coordinating the marketing effort.
It operates at a strategic and tactical level.
McDonald, M. (2006) Strategic Marketing Planning: Theory and Practice, The Marketing Review, 6, 375-
418.
A marketing plan ≠ A business plan
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Wide overview of business, eg
mission, goals, strategy, staff,
operations, location,
marketing, financial
Often used as financial tool to see if business
viable
Business Plan
Marketing Plan
Details actions to fulfill mission and goals. Identifies
business price points, target markets, and
competition and explains how business generates customers
http://smallbusiness.chron.com/difference-between-marketing-business-plan-1682.html
But they are interdependent
!
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Levels of a Marketing Plan
Strategic Target marketing
decisions Value proposition Analysis of
marketing opportunities
Tactical Product features Promotion Merchandising Pricing Sales channels Service
Marketing Plan Contents
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Executive Summary Table of Contents Situation Analysis Marketing Opportunity Assessment Marketing Strategy Financial and Marketing Goals and Budgets Implementation and Controls References
Marketing Plan Group Assignment Assume role of a “marketing manager” and
select an existing Swedish company within a specified industry
Develop a marketing plan for a product or service not currently offered by your company to be launched on the Swedish market Completely new-to-the-world or can be new just to
your company. Write a comprehensive marketing plan
profiling the competitive strategy to bring that product or service to the Swedish market.
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75–80%75–80% of new products being launched fail. Common reasons are:
The idea is good, but the market share is The idea is good, but the market share is overratedoverrated..
The product itself is not developed enough.
The new product is badly positioned on the market, not well-known enough, is priced too high or has the ”wrong” packaging.
The management wants to see their favourite ideas become products against all market research.
Developing costs are higher than anticipated.
Competitors put up more of a fight than anticipated.
GfK 2012
Marketing Plan Teams
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MGM MARKETING - MARKETING PLAN
FALL 2013
GROUPS PREFERENCES COMPANY
DRAGON B2C (Fortune 500) Product H&M
OPERATION BRAHMA B2B SME (<250) Product VETROLIFE
ORANGE B2C SME (<250) Product ASSESSIO
PEAK PERFORMANCE B2B SME Service TENANT & PARTNER
THE MOJITOS B2C (Fortune 500) Service SPOTIFY
THE TRANSFORMERS B2C SME Services LINAS MATKASSE
Presentations
September 13, 9:15-12:00 Initial Presentation Max 10 minute presentation by each Team 5 minutes for discussion by Feedback Team Upload Feedback1_Team#.doc to Courseweb and
email to respective team by September 13, 17:00 September 26, 9:15-13:00 Final Presentation
Max 10 minute presentation by each Team 5 minutes for discussion by Feedback Team Upload Feedback2_Team#.doc (3 page max Word
doc) to Courseweb and email to your respective team by September 27, 17:00
Passport Gmid
Euromonitor International Global Market Information Database
Market statistics on industries, countries and consumers (8 million +) Market reports, company reports and country reports (18 000 +)
Excellent resource!!
Final Report – October 4, 17:00 15 pages Plan + 3 pages Accounting Appendix in MS Word Doc
Not including title page, executive summary, table of contents, references or other appendices
Single-spaced, 12 Times Roman, numbered pages, 2.54 margins All sources documented in proper manner
See www.plagiarism.org for more information on how to cite and document sources.
The marketing plan is evaluated according to three criteria: Professional Written and Oral Communications Critical Thinking Involving Analysis and Understanding of Theoretical
Concepts and Frameworks that Build Your Argument Creative and Original Content yet Feasible Plan
Integration with Using Accounting Reports Separate 3 page Appendix evaluating financial consequences of proposed
marketing plan: detailed month-to-month analysis of impact on company’s financial statements and quantitative evaluations of the proposed investment using capital budgeting techniques covered in “Using Accounting Reports”.
Each group member contributes to the assignment in fair proportion 12
Independent Research – Get Started Now
Start researching Use library’s databases and library staff Determine what data you need to collect and how
Databases, Qualtrics, focus groups, interviews, etc. Contact any relevant people
Follow related topics on twitter: marketing, industry product, etc.
Blog, tweet, post, etc. about what you find #SSEMGM2013
Share with one another!
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Swedish Company and Industry Info
International: Orbis and Factiva Swedish specific (In Swedish): Retriever and
Affärsdata Under Company Databases in library Company information, e.g., annual reports for past
10 years Similar in number of companies in database Retriever is more user friendly than Affärsdata
Own sector classification vs SIC for Affärsdata Can filter search better Creates reports in PDF or Excel
Both have extensive news/article database Affärsdata has better coverage, e.g., Veckans Affärer Retriever has Svenska Dagbladet och Dagens Industri 14
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Friday Assignment – Marketing Plan
What do you think the marketing plan needs to accomplish in order to lead the company closer to its strategic goals?
Develop an initial idea for a product/service that you would like to launch for this company on the Swedish market. Motivate your choice of this product.
What do you need to do to develop an understanding of the markets and potential customers of your product? What market research do you need to conduct? What steps will you take to do this?
What are your initial ideas for STP for this product? What are your next steps in order to plan the direction,
objectives, and marketing support for the marketing plan?
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Seminar 4 Overview
Marketing Plan Group Assignment
Aqualisa Quartz Case
STP
17
Aqualisa What is the Quartz value proposition to plumbers? To
consumers? Why is the Quartz shower not selling? Aqualisa spent three years and €5.8 million
developing the Quartz. Was the product worth the investment? Is Quartz a niche product or a mainstream product?
What should Harry Rawlinson do to generate sales momentum for the Quartz product? Should he change his marketing strategy to target consumers directly, target the DIY market, or target developers? Should he lower the price of the Quartz? Or should he do something different altogether?
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Seminar 4 Overview
Marketing Plan Group Assignment
Aqualisa Quartz Case
STP
19
http://en.wikipedia.org/wiki/Henry_Ford
Ford’s Model T: Mass Market Approach
Any customer can have a car painted any color that he wants so long as it is black.
-Ford in his autobiography
CHP: 8&10-21
Segmentation, Targeting, and Positioning
Market Segmentation1. Identify bases for segmenting market2. Develop segment profiles
Market Segmentation1. Identify bases for segmenting market2. Develop segment profiles Market Targeting
3. Develop measure of segment attractiveness4. Select target segments
Market Targeting3. Develop measure of segment attractiveness4. Select target segments
Market Positioning5. Develop positioning for target segments6. Develop marketing mix for each segment
Market Positioning5. Develop positioning for target segments6. Develop marketing mix for each segment
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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What is a Market Segment?
A market segment consists of a group of customers who share a similar set of needs and wants.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Approaches to Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
1. Descriptive: Start with consumer
and then look at needs
2. Behavior & Attitudes:Start with product and
then look at descriptives
Geographic Segmentation
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Demographic Segmentation
Age and family size, lifecycle Gender Income Occupation Education Religion Race Generation Social class Nationality, race and culture
Age and Lifecycle Stage
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Gender and Income
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Generational Influences
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Nationality, Race and Culture
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Psychographic Segmentation: the VALS (Values, Attitudes, Lifestyles) Framework
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Divide into different groups based on psychological/personality traits•Lifestyle
• E.g., culture, sports, outdoor•Personality
• E.g., compulsive, authoritarian
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Approaches to Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
1. Descriptive: Start with consumer
and then look at needs
2. Behavior & Attitudes:Start with product and
then look at descriptives
Rising Interest in Ethnography
“Ethnography or observational research has drawn significant attention recently,
not only in the market research and marketing fields but in the mass media as well …all starts by doing something simple – keenly watching consumers, fact to face, knee to knee and listening, with ears, eyes, heart, brain and your intuitive sixth sense.”
Procter & Gamble
ex-CEO A.G. LafleyTesco: http://www.youtube.com/watch?
v=fGaVFRzTTP4
CHP: 8&10-33
Behavioral Segmentation
Decision Roles Initiator Influencer Decider Buyer User
Behavioral Variables Occasions Benefits User Status Usage Rate Buyer-readiness Loyalty Status Attitude
CHP: 8&10-34
Behavioral Segmentation Breakdown
GFE Associates: Analysis of Attitudinal Clusters in U.S. Television Households
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CHP: 8&10-36
Segmenting for Business Markets
Demographic segmentation– Industry, company size, location
Operating variables– Technology, usage status, customer
capabilitiesPurchasing approaches
– Purchasing-function, power structure, nature of existing relationships, general purchase policies, purchasing criteria
Situational factors– Urgency, specific application, size of order
Personal characteristics– Buyer-seller similarity, attitudes toward risk,
loyalty
CHP: 8&10-37
Size, purchasing power, profiles of segments can be measured. Segments can be effectively
reached and served.
Segments are large or profitable enough to serve.
Measurable Measurable
Accessible Accessible
Substantial Substantial
Differential Differential
Actionable Actionable
Segments must respond differently to different marketing mix elements & programs.
Effective programs can be designed to attract and serve the segments.
Effective Segmentation Criteria
CHP: 8&10-38
Segmentation, Targeting, and Positioning
Market Segmentation1. Identify bases for segmenting market2. Develop segment profiles
Market Segmentation1. Identify bases for segmenting market2. Develop segment profiles Market Targeting
3. Develop measure of segment attractiveness4. Select target segments
Market Targeting3. Develop measure of segment attractiveness4. Select target segments
Market Positioning5. Develop positioning for target segments6. Develop marketing mix for each segment
Market Positioning5. Develop positioning for target segments6. Develop marketing mix for each segment
CHP: 8&10-39
Market TargetingEvaluating Market Segments Segment Size and Growth
Analyze current 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 (five forces).
Company Objectives and Resources Company skills & resources needed to
succeed in that segment(s). Look for Competitive Advantages.
CHP: 8&10-40
Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing Mix 1
CompanyMarketing Mix 1
CompanyMarketing Mix 2
CompanyMarketing Mix 2
CompanyMarketing Mix 3
CompanyMarketing Mix 3
MarketMarket
A. Undifferentiated Marketing
B. Differentiated Marketing
C. Concentrated Marketing
Market TargetingMarket Coverage Strategies
Targeting Strategies
41http://www.globalspec.com/reference/47105/203279/undifferentiated-concentrated-and-differentiated-targeting-strategies
CHP: 8&10-42
Patterns of Target Market Selection
CHP: 8&10-43
Segmentation, Targeting, and Positioning
Market Segmentation1. Identify bases for segmenting market2. Develop segment profiles
Market Segmentation1. Identify bases for segmenting market2. Develop segment profiles Market Targeting
3. Develop measure of segment attractiveness4. Select target segments
Market Targeting3. Develop measure of segment attractiveness4. Select target segments
Market Positioning5. Develop positioning for target segments6. Develop marketing mix for each segment
Market Positioning5. Develop positioning for target segments6. Develop marketing mix for each segment
Diffusion of Innovation - Rogers
44http://en.wikipedia.org/wiki/File:DiffusionOfInnovation.png
Crossing the Chasm - Moore
45http://www.10xfactor.com/Bookstore_Ten_Best_Book5.html
Seminar 4 Overview
Marketing Plan Group Assignment
Aqualisa Quartz Case
STP
46