mm lecture 4 am

8/22/2019 MM Lecture 4 AM

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Unit IMarketing Strategy and

the Marketing Mix

Prof. Arun Mishra

[email protected]

9893686820



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



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.



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



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



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



Market SegmentationBases for Segmenting Business Markets

Bases

for Segmenting

Business

Markets

Basesfor Segmenting

Business

Markets

DemographicsPersonalCharacteristics

SituationalFactors

OperatingCharacteristics

PurchasingApproaches



Segmenting Business Markets

• Segmentation by customer size or

geographic location

• Four segments of business customers

– Programmed buyers

– Relationship buyers

– Transaction buyers

– Bargain hunters



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



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.



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



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.



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



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



Developing Competitive Differentiation

ProductProduct ServiceService

ImageImage PeoplePeople

Areas for Competitive

Differentiation

Areas for Competitive

Differentiation



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



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



Marketing MixDeveloping an Integrated Marketing Mix



Managing the Marketing Effort




Marketing Analysis – SWOT Analysis




Market Planning—Parts of a Marketing Plan




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




Marketing Department Organization




• 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



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)



Marketing Strategy and the Marketing Mix

mm lecture 4 am

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