penetrating the market with long range golf clubs

8/2/2019 Penetrating the Market With Long Range Golf Clubs

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What is marketing?

Marketing is themanagement process

through which goods andservices move formconcept to the customer,as well as it is based onthinking about businessin terms of customer

needs and theirsatisfaction ,Companiesestablish their marketingplan for a long term or ashort term.


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What is marketed?? Goods: cars

Services: hotels

Events: trade shows Experiences

Persons: celebrities

Places: cities

Properties: real state agents/investment companies andbanks

organization

Information: schools universities magazines

ideas


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Where dose marketing occur?

Marketplace: physical stores,

departments. Market space: digital

online.

Meta market:

both physical anddigital.


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How can you market ??Through advertisementon:

1-radio2-TV3-social media (facebook,twitter, create a blog)4-banners on other

websites5-telemarketing


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What motivates a consumer to take

action??

Note: marketing is managing of profitablerelationships and satisfying their needs.

Amarketers must differentiate between needswants and demand:

1-need: state of felt deprivation for basic itemssuch as food and clothing and complex needs

such as for belonging.i.e. I am thirsty


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Continued..

2-wants: form that a human need takes as shaped

by culture and individual personalityi.e. I want a coca-cola

3- demands: human wants backed by buyingpower

i.e. I have money to buy a coca-cola


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short term vs. long term marketing:

Short term marketing:

1-Short-term marketing efforts tend to causesudden sales spikes which rarely last.

2-These sharp sales increases are usually theresult of a targeted marketing campaign or time

limited offer.3-It must be for less than 5 years.


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Continued..

Long term marketing:

1-long term of an organization intend to beachieved over a period of 5 years or more also

2- it usually include specific improvement in theorganization competitive position ,technology

leadership profitability return on investmentemployee relations productivity and corporateimage.


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The marketing process:

Analyzing marketing opportunities

Selecting target markets Developing the marketing mix

Managing the marketing effort


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What is market analysis:

The goal of a market analysis is to determine

the attractiveness of a market and to understandits evolving opportunities and threats as theyrelate to the strengths and weaknesses of thefirm.


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David A. Aaker outlined the following

dimensions of a market analysis:

Market size (current and future)

Market growth rate

Market profitability

Industry cost structure

Distribution channels

Market trends Key success factors


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Target market

Target Marketing involves breaking a marketinto segments and then concentrating yourmarketing efforts on one or a few key segments.

target marketing can be the key to a smallbusinesss success. The beauty of target marketing is that it makes

the promotion, pricing and distribution of yourproducts and/or services easier and more cost-effective. Target marketing provides a focus toall of your marketing activities.


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Positioning (marketing)

In marketing, positioning has come to mean the process by whichmarketers try to create an image or identity in the minds of their

target market for its product, brand, or organization. Re-positioning involves changing the identity of a product,

relative to the identity of competing products, in the collectiveminds of the target market.

De-positioning involves attempting to change the identity of

competing products, relative to the identity of your own product, inthe collective minds of the target market.


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Product positioning processGenerally, the product positioning processinvolves:

D

efining the market in which the product orbrand will compete (who the relevant buyersare)

Identifying the attributes (also called

dimensions) that define the product 'space' Collecting information from a sample of

customers about their perceptions of eachproduct on the relevant attributes


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Continued..

Determine each product's share of mind.

share of mind :is the amount of attention that is required bysomething and the time that is actually spent thinking about the

something. Determine each product's current location in the product space

Determine the target market's ideal vector and determine theposition of your product in the relation to the ideal vector

Examine the fit between:

The position of your product The position of the ideal vector

position


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What is Market segmentation

Market segmentation is the identification of

portions of the market that are different fromone another. Segmentation allows the firm tobetter satisfy the needs of its potentialcustomers.


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The need for marketsegmentation: The marketing concept calls for understanding

customers and satisfying their needs better thanthe competition. But different customers havedifferent needs, and it rarely is possible to satisfyall customers by treating them alike.

Target marketing on the other hand recognizes

the diversity of customers and does not try toplease all of them with the same offering. Thefirst step in target marketing is to identifydifferent market segments and their needs.


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Continued.. Mass marketing refers to treatment of the market as a homogenous

group and offering the same marketing mix to all customers. Massmarketing allows economies of scale to be realized through mass

production, mass distribution, and mass communication.Thedrawback of mass marketing is that customer needs and preferencesdiffer and the same offering is unlikely to be viewed as optimal by allcustomers.

If firms ignored the differing customer needs, another firm likelywould enter the market with a product that serves a specific group,

and the incumbent firms would lose those customers.


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Requirements of Market Segments In addition to having different needs, for segments to

be practical they should be evaluated against thefollowing criteria:

Identifiable: the differentiating attributes of thesegments must be measurable so that they can beidentified.

Accessible: the segments must be reachable through

communication and distribution channels.


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Continued..

Substantial: the segments should be sufficiently large to justify theresources required to target them.

Unique needs: to justify separate offerings, the segments mustrespond differently to the different marketing mixes.

Durable: the segments should be relatively stable to minimize thecost of frequent changes.

note: a good market segmentation will result in segment membersthat are internally homogenous and externally heterogeneous; that

is, as similar as possible within the segment, and as different aspossible between segments.


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Bases for Segmentation in ConsumerMarkets

Consumer markets can be segmented on the

following customer characteristics. Geographic

Demographic

Psychographic

Behavioralistic


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Geographic SegmentationThe following are some examples of geographic variablesoften used in segmentation.

Region: by continent, country, state, or even

neighborhood Size of metropolitan area: segmented according to size of

population

Population density: often classified as urban, suburban,or rural

Climate: according to weather patterns common tocertain geographic regions


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Demographic SegmentationSome demographic segmentation variables include:

Age

Gender

Family size

Family lifecycle

Generation: baby-boomers, Generation X, etc.

Income

Occupation

Education


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Continued..

Ethnicity

Nationality

Religion

Social class

Many of these variables have standard categories fortheir values. For example, family lifecycle often is

expressed as bachelor, married with no children(DINKS: Double Income, No Kids), full-nest, empty-nest, or solitary survivor. Some of these categories haveseveral stages, for example, full-nest I, II, or IIIdepending on the age of the children.


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Psychographic Segmentation Psychographic segmentation groups customersaccording to their lifestyle. Activities, interests, andopinions (AIO) surveys are one tool for measuringlifestyle. Some psychographic variables include:

Activities

Interests

Opinions

Attitudes

Values


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Behavioralistic SegmentationBehavioral segmentation is based on actual customer

behavior toward products. Some behavioralisticvariables include:

Benefits sought

Usage rate

Brand loyalty

User status: potential, first-time, regular, etc.

Readiness to buy

Occasions: holidays and events that stimulate purchasesBehavioral segmentation has the advantage of using

variables that are closely related to the product itself. Itis a fairly direct starting point for market segmentation.


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Bases for Segmentation in IndustrialMarkets In contrast to consumers, industrial customers tend to be fewer in

number and purchase larger quantities. They evaluate offerings inmore detail, and the decision process usually involves more than

one person. These characteristics apply to organizations such asmanufacturers and service providers, as well as resellers,governments, and institutions.

Many of the consumer market segmentation variables can beapplied to industrial markets. Industrial markets might besegmented on characteristics such as:

1-Location

2-Company type

3-Behavioral characteristics


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Location In industrial markets, customer location may be

important in some cases. Shipping costs may be apurchase factor for vendor selection for products having

a high bulk to value ratio, so distance from the vendormay be critical. In some industries firms tend to clustertogether geographically and therefore may have similarneeds within a region.


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Company

Type

Business customers can be classified accordingto type as follows:

Company size

Industry

Decision making unit

Purchase Criteria


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Behavioral CharacteristicsIn industrial markets, patterns of purchase

behavior can be a basis for segmentation. Suchbehavioral characteristics may include:

Usage rate

Buying status: potential, first-time, regular, etc.

Purchase procedure: sealed bids, negotiations,

etc.


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The Marketing Mix

(The 4 P's of Marketing)

Marketing decisions generally fall into thefollowing four controllable categories:

Product

Price

Place (distribution)

Promotion


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The marketing mixThese four P's are theparameters that themarketing manager can

control, subject to the internaland external constraints ofthe marketing environment.The goal is to make decisionsthat center the four P's on the

customers in the targetmarket in order to createperceived value and generatea positive response.


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The four Ps vs. Cs

*product

price

place

promotion

Customer solution

Customer cost

convenience

communication


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Product Decisions The term "product" refers to tangible, physical productsas well as services. Here are some examples of theproduct decisions to be made:

Brand name

Styling and design

Quality and variety

Safety

Packaging

Repairs and Support

Warranty

Accessories and services


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Price Decisions Some examples of pricing decisions to be made include:

Pricing strategy (skim, penetration, etc.)

Income(gross, disposal)

Value based pricing and ,loss leader, by product pricing,cost plan.

Cash and early payment discounts

Seasonal pricing

Bundling

Going rate(gold)

complementary


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Distribution (Place) Decisions Distribution is about getting the products to the

customer. Some examples of distribution decisionsinclude:

Distribution channels Market coverage (inclusive, selective, or exclusive

distribution)

1-inclusive distribution: convenience good (yogurt)

2-selective distribution: shopping goods(clothes)3-exlusive distribution: specialty goods(lexus)


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Promotion Decisions In the context of the marketing mix, promotion

represents the various aspects of marketingcommunication, that is, the communication of

information about the product with the goal ofgenerating a positive customer response. Marketingcommunication decisions include:

sponsoring

Advertising

Branding(national brand, generic brand, private labelbrand)

Sales promotions

Public relations & publicity


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Managing marketing effort

The company wants to design and put intoaction the marketing mix that will best achieveits objectives in target markets. This involvesfour marketing management functions. The fourfunctions are: analysis, planning,

implementation, and control


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Product life cycle

like human beings, products also have an arc. From birthto death, human beings pass through various stages e.g.

birth, growth, maturity, decline and death. Asimilar life-

cycle is seen in the case of products, The product lifecycle goes through multiple phases, involves manyprofessional disciplines, and requires many skills, toolsand processes. Product life cycle (PLC) has to do with thelife of a product in the market with respect to

business/commercial costs and sales measures.


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To say that a product has a life cycle is

to assert three things:

1-Products have a limited life.

2-P

roduct sales pass through distinct stages, eachposing different challenges, opportunities, andproblems to the seller,

3-Products require different marketing, financing,

manufacturing, purchasing, and human resourcestrategies in each life cycle stage.


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Product life cycle


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1. Market introduction stage1-costs are very high

2-slow sales volumes to start

3-little or no competition4-demand has to be created

5-customers have to be prompted to try theproduct

6-makes no money at this stage


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2.G

rowth

stage1-costs reduced due to economies of scale2-sales volume increases significantly

3-profitability begins to rise

4-public awareness increases5-competition begins to increase with a few new

players in establishing market

6-increased competition leads to price decreases


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3. Maturity stage1-costs are lowered as a result of production volumes

increasing and experience curve effects

2-sales volume peaks and market saturation is reached

3-increase in competitors entering the market4-prices tend to drop due to the proliferation of competing

products

5-brand differentiation and feature diversification isemphasized to maintain or increase market share

6-Industrial profits go down


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4. Saturation and decline stage1-costs become counter-optimal

2-sales volume decline

3-prices, profitability diminish4-profit becomes more a challenge of

production/distribution efficiency thanincreased sales


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Assigning growth opportunities:

Market penetration strategy:

1-encourage current customers to buy more.

2-attract competitors customers

3-attract non-users

Market development strategy:

1-expand to new markets2-have additional distribution channels

3-sell in new locations


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Product development strategy:By adding new features

Diversification strategy: to produce productswith new unique features.


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The marketing environment

Factors and forces outside of marketing's directcontrol.

Affect management ability to develop andmaintain

Successful transactions with target customers


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microenvironment

Forces close to the company

That affect its ability to serve customers

1- the company

2-suppliers

3-marketing intermediaries

4-cusomter

5-competitors6-publics


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Macroenvironmnet

Larger, societal forces that affect theorganizations microenvironment

1-demografic forces

2-econimic forces

3-natural forces

4-technological forces5-political forces

6-cultural forces


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penetrating the market with long range golf clubs

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