orgmktg segments mktgres (2)

8/2/2019 Orgmktg Segments Mktgres (2)

1/31

Business vs. Consumer Marketing

Fruit

Producers

Business Marketing Business Marketing Consumer Marketing

Fruit is grown

& harvested

Fruit is processed into

various forms

You

Brachs

(jelly beans)

Winn-Dixie(jams, jellies, etc.)

Kelloggs(Pop Tarts)

Processed fruit is

included as ingredients

in foods


2/31

From Industrial Product to

Commercial Consumer

Business

Marketer

Type of

Commercial

User

Purpose

Product

Serves

Electrical Equipment Manufacturer(Producer of Electrical Motors)

Appliance

Manufacturer

(OEM)

Electrical Supply

Dealer (Industrial

Distributor)

Food-Processor

Firm (User)

OEMsUsers

Electrical motors are

purchased and resold

to users and OEMs

Electrical motor used

in high-speed mfg

system of food proc.

Electrical motor incor-

porated directly into

product (e.g., washer)


3/31

Classifying Goods & Services

for the Business MarketEntering Goods Foundation Goods

Facilitating Goods

Raw Materials- Farm Products

- Natural Products

(e.g., iron ore, lumber)

Manufactured Materials/Parts- Component Materials

- Component Parts

(e.g., tires, microchips)

Installations- Buildings & Land Rights

- Fixed Equipment

Accessory Equipment- Light Factory Equipment(e.g., lift trucks)

- Office Equipment

Supplies- Operating Supplies

(e.g., lubricants, paper)

- Maintenance & Repair Items

(e.g., paint)

Business Services- Maintenance & Repair Services

- Business Advisory Services


4/31

The Supply Chain(the entire system for lawnmowers)

RawMaterials

Finished

Lawnmower

Manufactured

Materials Assembly ComponentParts

Purchase Order Copied, a facilitating product

Number, type, style of mowers determined by

research, a facilitating service

Transportation, a facilitating service


5/31

The Realm of Buyer-Seller RelationshipsSellers Motivation to Relate

Buyers

Motivation

to Relate

High

Low

No

Exchange

Discrete exchange(spot contracts)

Sellers

market

Buyer-maintained

relation

Joint relationship

maintenanceSeller-maintained

relation

HighLow

Buyers market


6/31

The Relationship Development Process

Relationship

Phase

1. Awareness

2. Exploration

3. Expansion

4. Commitment

0 Sellers dependence Buyers dependence 0

on buyer on seller

Phase

Characteristics1. No interaction

2. Interaction occurs;

testing, gradual increase

in dependence

3. One party makes a

successful request for

adjustment; more benefits

sought from current partner

rather than from others

4. Means of sustaining therelationship develop; social

ties, shared ownership, etc.

Disputes resolved internally

Shared values and decision-

making structures support joint

investment in relationship.

Enabling Subprocesses for Deepening Dependence

Communication

& BargainingAttraction

Power &

Justice

Expectations

Development

Norm

Development


7/31

Market Segmentation

Substantiality

Identifiability andMeasurability

Responsiveness

Accessibility

Criteria forSuccessful

Segmentation


8/31

Segmenting Consumer Markets

Usage Rate

Benefits

Psychographic

Demographic

Geographic

Bases forSegmentingConsumer

Markets


9/31

The Family Life CycleMiddle-aged

divorced

withoutchildren

Youngdivorcedwithoutchildren

Youngsingle*

Youngmarriedwithout

children*

Middle-agedmarried

withoutchildren

Youngmarried

with

children*

Youngdivorced

with

children

Middle-agedmarried

with

children*

Middle-ageddivorced

withchildren

Middle-agedmarriedwithout

dependent

children

Middle-ageddivorcedwithout

dependent

children

Oldermarried*

Olderunmarried*

Usual flowRecycled flowTraditional flow*


10/31

The VALS 2 Categories

Source: The VALS 2 Categories.Reprinted by permission of SRI

International, Menlo Park,California.

Abundant resources

Principle-

oriented

Status-

oriented

Action-

oriented

Fulfillers

Believers

Actualizers

Achievers

Strivers

Strugglers

Experiencers

Makers

Minimal resources


11/31

Geographic

Customer Type

Customer Size

Product Use

Segmenting Business Markets

BusinesstoBusiness

Purchasing Criteria

Purchasing Strategy

Importance

PersonalCharacteristics

Micro-segmentation

Macro-segmentation


12/31

Steps in Segmenting a MarketSelect Market or Product

Category

Choose SegmentationBases

Select SegmentationDescriptors

Profile/Analyze Segments

Select Target Markets

Design, Implement, MaintainMarketing Mix

Steps inSegmenting a

Market

SubsequentMarketingActivities


13/31

Strategies for Selecting Target Markets

ConcentratedStrategy

UndifferentiatedStrategy

MultisegmentStrategy


14/31

Multisegment Targeting

Costs

Production design costs

Production costs Promotion costs Inventory costs Market research costs Management costs Cannibalization

Benefits

Potentially greater sales volume Higher profits Larger market share Economies of scale in:

manufacturingmarketing


15/31

Positioning Bases

Positioning Bases

Attribute

Price and Quality

Use or Application

Product User

Product Class

Competitor


16/31

Marketing Research

Descriptive

Diagnostic

Predictive


17/31

The Marketing Research Process

CollectData

SpecifySampling

Procedure

Plan Design/Primary Data

DefineProblem

AnalyzeData

Prepare/PresentReport

Follow Up


18/31

Advantages/Disadvantages of Secondary Data

Advantages

Rapid availability

Inexpensive

May shed light on the problem

Disadvantages

Often doesnt provide asufficient answer

Quality of data sometimesdifficult to determine


19/31

Sources of Secondary Data

Source Description

Internal Information Sales Invoices, Accounting Records,Previous Market Research

Market Research Firms Companies Such As A.C. Nielsen,Arbitron, IMS International

Trade Associations Associations Such As NationalIndustrial Conference Board, NationalRetail Merchants Association

University ResearchBureaus, ProfessionalAssociations, Foundations

Variety of Nonprofit Organizations

CommercialPublications

Advertising Age, Sales Management,Product Marketing, Selling Power

Government Data Federal Government publications suchas Census of Housing, Census of

Manufacturers, Economic Indicators


20/31

Advantages/Disadvantages of Primary Data

Advantages

Answer specific questions

Current

Known source

Secrecy can be maintained

Disadvantages

Time-consuming

Expensive


21/31

Forms of Survey ResearchIn-Home

Mall Intercept

Telephone (Interviewer)

Telephone (Central)

Focus Group

One-Time Mail Survey

Mail Panel Surveys

Common

Formsof SurveyResearch


22/31

Consumer Products

ConvenienceProducts

ShoppingProducts

SpecialtyProducts Unsought

Products


23/31

Product Lines

EquivalentQuality

Efficient Salesand Distribution

StandardizedComponents

PackageUniformity

Advertising

Economies

Benefitsof

ProductLines


24/31

Gillettes Product Lines & Mixes

Blades and Writingrazors Toiletries instruments Lighters

Depth of Sensor Series Paper Mate Cricketthe product Trac II Adorn Flair S.T. Dupont

lines Atra ToniSwivel Right GuardDouble-Edge SilkienceSuper Adjustment Soft and DriLady Gillette FoamySuper Speed Dry LookTwin Injector Dry IdeaTechmatic Brush Plus

Three-PieceKnackBlades

Width of the product mix


25/31

Abbreviated Product MixKraft

Alpha-Bits

Fruit & Fiber

Grape-Nuts

Honeycomb

Pebbles

Post 40% Bran

Flakes

Post Raisin Bran

Post Toasties

Smurf-Berry

Crunch

Entenmanns

Hostess Snacks

Krema Candy

Orowheat

Country Time

Lemonade

Crystal Light

Kool-Aid

Sugar-Free

Kool-Aid

Tang

D

epth

ofProductLines

Width of Product Mix

Breakfast

Cereals

Baked

Goods

Beverages


26/31

Changing Product LinesKraftBreakfast

Cereals

Baked

Goods

Beverages

Alpha-Bits

Fruit & Fiber

Grape-Nuts

Honeycomb

Pebbles

Flintstones

Post 40% Bran

Flakes

Post Raisin Bran

Post Toasties

Smurf-Berry

Crunch

Entenmanns

Hostess Snacks

Krema Candy

Orowheat

Country Time

Lemonade

Crystal Light

Kool-Aid

Sugar-Free

Kool-Aid

Tang

Sweet Stuff

Depth

ofProductLin

es

Width of Product Mix


27/31

Adjustments to Items, Lines, & Mixes

ProductModifications

Repositioning

Product LineContractions

Product Line

Extensions

Strategiesfor Changing

ProductLines


28/31

Branding

Individual

Types ofManufacturers

Brands

Family

Co-Branding

Combination


29/31

Major Branding Decisions

Brand No Brand

ManufacturersBrand

PrivateBrand

Combination(family andindividual)

FamilyBrandIndividual

Brand

Combination(family andindividual)

FamilyBrand

IndividualBrand


30/31

Packaging

Contain and Protect

Functionsof

Packaging

Promote

Facilitate Storage, Use,and Convenience

Facilitate Recycling


31/31

MKTG 501

Marketing Rocks!

orgmktg segments mktgres (2)

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