goca matović

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Welcome

MARKETING STRATEGY AND MARKET RESEARCH

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Program of the week-day by day:

• Monday: Marketing strategy and marketing environment

• Tuesday: Marketing strategy and business plan

• Wednesday: Market research

• Thursday: Marketing mix: definition and creation

• Friday: Marketing management and marketing plan

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Programme for Monday

Agenda – topic of the day: Marketing strategy: definition, form, content,

different types Objective of the day: 1. To learn how to define marketing strategy:

segmentation, differentiation and positioning2. To learn how to conduct SWOT, PEST Working hours 16:00 – 20:00 Individual counselling 20:00 – 21:00 Reflexion form

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Is Marketing = Sale?

Is Marketing = Promotion?

NO!!!

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MARKETING is:

• having the right product • on the right place• in the right time

... satisfying consumers needs, in relation to competition, with accomplishing business profitability.

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Company orientations in relation to market

• Production concept

• Selling concept

• Marketing concept

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Market segmentation ...

... is process of market partition on particular parts or groups according to mutual criterions, with aim to identify target groups.

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Market segments:

Market segments Business market segments

– ....– ....– ....– ....

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Steps:

Market segmentation 1. Identify basis for segmenting market2. Develop segment profiles

Market Targeting3. Develop measure of segment attractiveness4. Select target segments

Market positioning5. Develop positioning for target segment6. Develop marketing mix for each segment

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Geografical segmentation

• World, region or country• City • Density of climate

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Demographical segmentation

Dividing the market into groups based on variables such as:– Age– Gender– Family size or life cycle– Income– Occupation– Education– Religion– Race– Generation– Nacionality

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Psychografic segmentation

Divides customers into groups depending on:

• Social class• Lifestyle• Personality

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Behavior segmentation

Divideng the market into groups based on variable such as:

• Occasions• Benefits• User status• User rate• Loyalty status• Readiness stage• Attitude toward product

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Targeting• First step – segmentation• Second step – targeting

Mass marketingDifferentiated marketing strategy Concentrated marketing

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Mass Marketingsame product to all consumers(no segmentation, i.e. Coca Cola)

Segment marketingdifferent products to one or more segments

(some segmentation, i.e. Marriot)

Niche marketingdifferent products to subgroups within segments

(more segmentation, i.e. Standard or Luxury car)

Micro marketingproducts to suit the tastes of individuals and locations

(complete segmentation)

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Differentiation through:

• Product

• Services

• Image

• Personnel

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Positioning Strategy

…the way the product is defined by potential consumers - the place the product occupies in consumers minds relative to competition

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Choosing a positioning strategy

• Step 1: Identify list of your competitive advantages

• Step 2: Select right competitive advantage of your products/services

• Step 3: Comunicate with the market and present the position of your company

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Making positioning strategy

• depends on market conditions, on position of competition

• “me too”

• “far away of competition”

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Identifying competitive advantages...

• Key to winning and keeping customers is to understand their needs better than competition.

• Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits.

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More competitive advantages...

Product diferentiation

i.e: features, performance, Style, design, attributes

Services

differentiation

i.e: Delivery, instalation, repair services, customer training services

Image differentiation

i.e: symbols, atmospheres, events

Personel

diferentiation

i.e: hiring, training better people than competitiors do

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Exercise: Segmenting Your market!

Time: 60 min

15 min. – preparing

10 min. – for presenting of each group

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Break/networking18:00-18:20

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Marketing environment and competitor analysis

• PEST analysis

• SWOT analysis

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PEST analysis

• Political factors• Economic factors• Socio-cultural factors• Technological factors

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Political/legal

• Legislation

• Environmental protection laws

• Taxation policy

• Employment laws

• Government policy

• Others

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Economic factors

• Inflation• Employment• Disposable income• Business cycles• Energy availability and cost• Others

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Socio-cultural factors

• Demographics

• Social mobility

• Lifestyle changes

• Levels of education

• Others

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Technological factors

• New discoveries and innovations• Speed of technology transfer• Rates of obsolescence• Internet• Information technology• Others

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SWOT analysis

• Strengths (internal)

• Weaknesses (internal)

• Opportunities (external)

• Threats (external)

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Strengths:

• experience in production • wide assortment of products • high level of capacity utilization • high quality of product • quality services • location• qualified management team

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Weaknesses:

• hang-over technology • small production capacity • high costs of human resources • uncompetitive product • poor design and packaging • poor quality system • location

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Opportunities:

• revival of economy activities

• regulations modifications

• tendency of consuming product growth

• market development – via internet

• bigger purchasing power of population

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Threats:

• new competitor on domestic market

• price war with competitors

• competition has new product/service

• new technology development

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Exercise: SWOT analysis

Time: 50 min.10 min. – preparing10 min. – for presenting each group

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Thanks for your attention• Final remarks • If you want to speak on your own business

idea: 20:00 hours is the time (max 21:00 hours)

• Tomorrow’s theme is Marketing strategy and business plan

• See you tomorrow 16:00 hours

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Welcome


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Programme of the week-day by day:• Monday: Marketing strategy and marketing

environment• Tuesday: Marketing strategy and business

plan• Wednesday: Market research• Thursday: Marketing mix: definition and

creation• Friday: Marketing management

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Programme for WednesdayAgenda – topic of the day:

Market researchObjective of the day:

1) To understand the importance of market research

2) To learn how to conduct market researchWorking hours 16:00 – 20:00Individual counselling 20:00 – 21:00Reflexion form

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Market research Market research is process of gathering and

analyzing information about customers, competitors and market, in order to develop best possible product/service for customers.

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Research help You determine:

• Target market• Location• Sales projections • Demanded product and service • Pricing strategy • Appropriate advertising • Credit policy

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• The purpose of market reseach is to help companies make better business decisions about the development and marketing of new products.

• Market research represents the voice of the consumer in a company

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A list of questions that can be answered through market research:

• What is happening in the market?• What are the trends?• Who are the competitors?• How do consumers talk about the products in the

market?• Which needs are important?• Are the needs beign met by current products?

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Types of market research:

• Primary research (collecting original data)

• Secondary research (using already made research)

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Primary research

• Quantitative research– Surveys– Observation– Experimentation

• Qualitative research– Personal in-dept interviews– Focus groups– Projective techniques

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Where to find information?

• Republic Statistical office• Government of Republic of Serbia• Chamber of Commerce• Newspapers• Computer databases• Trade associations• Internet

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Lack in secondary research

• Expired information

• Questionable data

• Data is rarely available in requested form

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Research instruments

• Questionnaires– Open-ended questions– Close-ended questions (yes/no)

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The Market research process

1. Defining the problem and research objectives

2. Developing the research plan for collecting information

3. Implementing the research plan and analyzing the data

4. Interpreting and reporting the findings

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1. Defining the problem and research objectives

- Exploratory research (gathers preliminary information that will help define the problem)

- Descriptive research (describe things as market potential, consumer attitudes etc.)

- Casual research (cause and effect relationships)

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2. Developing research plan

Research plan development follows these steps:

- Determining specific information needs

- Gathering secondary information

- Planning primary data collection

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Planing primary data collection

• Preparing sampling plan– Sampling unit– Sample size– Sampling procedure

• Choise a data Collection Method– Personal interviews– Telephon research– Mail research– E-mail research

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Personal interviewing

• Advantages:– Easier to get and hold attention > more questions can be

asked– Permits question clarification– Can be supplemented by personal observation

• Disadvantages:– Most expensive– Technical and administrative planning and supervision

needed– May allow interviewer bias– May allow respondent bias

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Surveying by telephone

• Advantages:– Quick– Permits question clarification– Can be cheaper than mail, if restricted to local

area• Disadvantages:

– Restricted to telephone owners– Must be short and not too personal– May allow interviewer bias

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Direct mail

• Advantages:– No interviewers bias– Economical for large geographic area– Respondent anonymous > more truthful responses

• Disadvantages– Require simple and clearly worded questions– Return rate low and/or slow (can introduce a bias)– Need good and up-to-date mailing list

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3. Implementing the research plan

COLLECTING THE DATA

PROCESSING THE DATA

ANALYZING THE DATA

RESEARCH

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Collect data

Questionary should consist:• Demografic information (age, gender, occupation, income

range, etc)

• Confirmation that the respondent uses the product /services you are testing

• Which brand is used• How often brands are used• Importance of different brand images• Purchase intention on a five-point scale (definitely, maybe,

indifferent, maybe not, definitely not)

• What could be done to change existing product

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When you prepare questionary:

• be short • be careful if you ask about personal

information • use close-ended questions • use standard language • do not use negative questions • do not ask more than one question in the

same time

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Survey Questions and Answer Tipes

a) The Dishotomous question (Yes/No)

Example:

Have you ever purchased a product or service from our web-site?

1. Yes

2. No

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b) Multiple choice questionsExample:How did you hear about our web site?1. TV2. Radio3. Newspaper4. Word of the mouth5. Internet6. Other (please specify) ....................

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c) Rank Order ScalingExample:Based upon what you have seen and experienced,

please rank the following brands according to their reliability. Place “1” next to the brand that is most reliable, and so on. Remember no two cars can have same ranking._ Honda_ Toyota_ Mazda_ Ford

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d) The Rating scaleExample:Which of the following categories best describe

your last experience purchasing a product or service on our website? Would you say that your experience was:

• Very pleasant• Pleasant• Neither pleasant nor unpleasant• Unpleasant• Very unpleasant

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4. Interpreting/reporting the findings

STEP 1. INTERPRET THE FINDINGS

STEP 2. DRAW CONCLUSIONS

STEP 3. REPORT TO MANAGEMENT

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Consumer preferences according to packaging type

52%

22%

12%

14%plastic bag

plastic jars

glass package

no preferences

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Consumer preferences according to packaging volume

58%24%

5%10% 3%

less than 250 gr

251-500 gr

501-750 gr

751-1000 gr

more than 1000 gr

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Write a Research Report

Keep reports short and precize, that is use the concept:

Hypothesis-analyses-results

Example:

H: Most probably, customers know your brand

A: A questionary was submitted to 100 people at the shoping centre xx

R: 45% knew our brand

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Break/networking

18:00-18:20

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Exercise: Role playing

Research your colleges and describe what they like/dislike

Time: 50 min.20 min. – Questionnaires20 min. – Presentation

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Exercise:

Research Serbian market in the field of manufacturing ..................

Time: 50 min. 15 min. for preparing 8 min. for each group for presenting

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Thanks for your attention

• Final remarks

• Tomorrow’s theme is Marketing mix

• See you tomorrow at 16:00 h

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Welcome


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Program of the week-day by day:



• Wednesday: Market research• Thursday: Marketing mix: definition and


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Programme for Thursday Agenda – topic of the day:

The Marketing mix: definition and creation Objective of the day: 1. To provide basic understanding how to create appropriate

marketing mix according to marketing strategy2. To set up right price, place and promotion for selected

segments/niches

Working hours 16:00 – 20:00 Individual counselling 20:00 – 21:00 Reflexion form

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The Marketing mix

Is the mix of controllable variables that the firm uses to reach desired sales

level in target market, including price, product, place and promotion – 4P`s

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4 P`s ...

• Product• Price• Place• Promotion

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+3P

• PeopleStaff selection, motivation,training and customer service

• Physical evidenceThe decor and ambience are very much part of the product offer – as are costumer testimonials and celebrity endorsement.

• Process The efficiency of the process is what provides benefits for the costumer. It could be measured in many ways, for example by surveying the buyers

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Marketing mix – Product

Product life cycle

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Summary of Product Life Cycle Strategies

Introduction Growth Maturity Decline

Strategies

Product Offer a basic product

Offer product extensions, services, warranty

Diversity brands and items

Phase out weak models

Price Charge cost-plus Price to penetrate market

Price to match or best competitors

Cut price

Distribution Build selective distribution

Build intensive distribution

Build more intensive distribution

Go selective phase out unprofitable outlets

Advertising Build product awareness among early adopters and dealers

Build awareness and interest in the mass market

Stress brand differences and benefits

Reduce to level needed to retain hard-core loyals

Sales Promotions

Use heavy sales promotion to entice trial

Reduce to take advantage of heavy consumer demand

Increase to encourage brand switching

Reduce to minimal level

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Marketingstrategy

development

Businessanalysis

Productdevelopme

nt

Markettesting

Commercialization

Conceptdevelopmentand testing

Idea screening

Ideagenerating

New product development process

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Reasons for new product failure

• failing to offer a unique benefit• underestimating the competition• product design not as good as it could be • product development costs are higher than

expected• slow or poor timing in product introduction

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Marketing mix – Product

Tree levels of the Product

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Marketing mix – PRICE

• Price is the sum of all the values that consumers exchange for the benefits of having or using the product or service.

• Price is sometimes the major factor affecting buyer choice;

• Price is the only element in the marketing mix that produces revenues; all others represent costs.

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What is the right price?

• Right for You

• Right for Your customer

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Right price for customers

• Your customers will maybe be ready to pay only very low price, and you wont be able to make profit

• That could be right price for customer, but is it for You too?

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Right price for You

• How big profit you want?• How much sales you can make?• How fast you want to grow?• What part of the market you want to take

over?• What kind of quality picture you want to

project?

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Right price for You and customers

2 basic points for observation:

• DEMAND – what customers are ready to pay

• OBJECTIVES – what YOU want to achieve with your business

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How important is to form the right price?

• Small price change could make big change in profit

• It is IMPORTANT to form the right price!

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Factors affecting pricing decision

Internal factors:

1. Marketing objectives

2. Marketing mix strategy

3. Costs

External factors:

1. Nature of the market and demand

2. Competition3. Other factors

(governemnt regulation)

Pricing decision

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Internal factors Affecting Pricing Decision

• Marketing objectives:– Company must decide on its strategy for the

product – General Objectives: Survival, curent profit

maximization, market share leadership, and product quality leadership.

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Internal factors Affecting Pricing Decision

Costs• Fixed Costs:

– Costs that do not vary with production or sales level

• Varible cost:– Costs that vary directly with the level of

production

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External factors Affecting Pricing Decision

The market and demand:

• Costs set the lower limit of prices

• The market and demands set the upper limit

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Competition:

• Direct competitor price

• More than competitor

• Less than competitor

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Other External Factors

• Economic condition (affect production costs)

• Government may restrict or limit pricing options

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Cost-plus pricing

• Adding a standard markup to the cost of the product

• Popular because:

- Sellers more certain about cost than demand- Simplifies pricing- When all sellers use, prices are similar and competition is minimized- Some feel it is more fair to both buyers and sellers

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Value-based pricing

• Uses buyers perceprtion of value, not the product cost, as the key to pricing

• Measuring perceived value can be difficult

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Product Cost Price Value Customer

Customer Value Price Cost Product

Cost-Based and Value-Based Pricing

Cost- based pricing

Value-based pricing

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Mark-ups and Mark-up chain

• Mark-up per cent is the percentage of the selling price that is added to the cost to get the selling price

• Products may be marked up several times through the distribution channels

• High mark-ups do not always mean high profits

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Discount policies

CashQuantity

FuncionalSeasonal

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Pricing strategies

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Marketing mix - PLACE/CHANELL

• Make your product/service available to target market for purchasing

• Channel of distribution

All in chain – from producer to final user or buyer

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Types of Channel Intermediares:

Verticalmarketingchannel

Manufacturer

Retailer

Conventionalmarketingchannel

Consumer

Manufacturer

Consumer

Retailer

WholesalerWholesaler

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Marketing mix - PROMOTION

How you could say to customers about your product/service?

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Overview of Eight Steps to Effective Communication

• Identify target audience• Determine objectives• Design the message• Select communication channels• Establish communications budget• Develop communications mix• Measure results• Effectively manage the process

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• PROMOTION MIX (sinergy)

Marketing

communication

SaleSale promotionpromotion AdvertisingPublic

Relations

E-marketing

DirectMarketing

GerillaMarketing

Publicity

Personal sale

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Identifying Target Audience

Specific publicsSpecific publics

Potential buyersPotential buyers

General publicGeneral publicCurrent usersCurrent users

Deciders andinfluencers

Deciders andinfluencers

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Buyers pass through these stages:

– Cognitive stage (think)– Affective stage (like)– Behavior stage (do)

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Designing the Message

ction

nterest

esire

ttention

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All products have 2 characteristics:

1. “feature” – what it is

2. “benefit” – what is offered to buyerPeople buy BENEFIT not CHARACTERISTICS

Sell BENEFIT

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Advertising media

• newspapers

• television

• direct mail

• radio

• magazines

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The Five Ms of AdvertisingMissionMission

MoneyMoney

MessageMessage MediaMedia

MeasurementMeasurement

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Other forms of advertising

• Office material:

– Business cards– Invoices– Envelopes– Memos

• Logo• Vehicles• Business gifts• Work uniforms• Packaging• Movable adverts

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Personal Communication Channels

• Identify influential people – and cater to them– Use influential people in testimonials

• Establish electronic forum

• Develop referral channels

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Marketing Budget

Some common methods of budgeting are:

– Affordable– Percentage of sales (expected sales)– Competition role– Objectives and tasks

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Measuring and Monitoring Results

• What are some ways to measure the impact of marketing communication?

• For what measuring should be used?– Analyses and perception of business activity

– Influence on positioning

– Costs justification

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Break/networking

18:00-18:20

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Exercise:

Creating marketing mix by groups!

Time: 18:20 – 19:00

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Guest speaker

Panell discussion about media plan

19:00 - 19:50

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Thanks for your attention• Final remarks • If you want to speak on your own business

idea: 20:00h is the time (max. 21:00h)• Tomorrow’s theme is Marketing Management • See you tomorrow at 16:00h

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Welcome


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Programme of the week - day by day:



• Wednesday: Market research• Thursday: Marketing mix: definition and


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Programme for Friday

Agenda – topic of the day:Marketing managementObjective of the day: 1.To learn about marketing management

importance2 To learn how to set up control process3.To learn how to prepare marketing planWorking hours 16:00 – 20:00 Individual counselling 20:00 – 21:00Reflexion form

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Marketing management process

Market planning Set objectives

Evaluate opportunities Plan marketing strategies Develop marketing plans

Develop marketing program

Control marketing plans and programs Measure results

Evaluate progress

Implement marketingplans and programs

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Marketing mix planning

Why is the 4 Ps idea helpful?

• provides an organizing framework• helps to bring many, more detailed

decisions together in a logical fashion• focuses thinking on the idea that ALL

marketing decisions must work together as a whole

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The Marketing plan

Marketing plan: a written statement of a marketing strategy and the time-related details for carrying out the strategy

• Spells out, in detail:– What marketing mix is offered – To what target market– For how long– What resources (costs) are needed and at what rate– What results are expected– What control procedures will be used

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• Mission• Product market• Customer analysis• Competitor analysis• Analysis of their

aspects of external environment

• Company analysis• Marketing information

requirements

• Product strategy• Place strategy• Price strategy• Promotion strategy• Implementation

problems to be overcome

• Forecast and estimates• Timing

The marketing plan includes…

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Marketing management

Setting goals

Selecting strategies

Forecasting

Implementing

Controlling

Planning

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Controlling the marketing plan

1. Find out WHAT happened

2. Find out WHY it happened

3. Decide WHAT to do about it

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The Marketing Control Proces

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There are many approach to control:

• Market share analysis• Sales analysis• Quality controls• Budgets• Ratio analysis• Marketing research• Customers satisfaction

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There are many approach to control:• Customer Relationship Management

systems• Cash flow statements• Distributor support• Performance of any promotional activities• Market reaction /acceptance to pricing

policy

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Types of reports

• To aspect of time: – monthly– on three months – on six months– annual

• To aspect of income level:– internal– external

• To aspect of decision importance:– tactical moves – strategic moves

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Never:• Assume what customer wants• Ignore the competition• Try to be competitive only with prices• Rely on small group of customers• Try to grow too fast• Become satisfied with what You offer and

never ignore innovation of Your product/service

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Break/networking

18:00-18:20

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Exercise: MARKETING PLAN

Time:

Completion: 40 min.

Presentation: 50 min. (12 min. for each group)

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End of Module

• Complete Reflexion form and action plan• Complete evaluation form• If you want to speak on your own business idea:

20:00 hours is the time (max. 21:00 hours)• Availability for questions - [email protected]

Good luck with your company

Thanks!

goca matović

Business

market segmentation

marketing environment

marketing mix

market research

segmenting market

mass marketing

market conditions

step segmentation