Marketing 3

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WELCOME

to

MARKETING MANAGEMENT

AL 366

MARKETING MANAGEMENT

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Session #3Session #3

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1. OPENING REMARKS (15 minutes)• Questions

2. DISCUSS MATERIAL ( 90 minutes)• Chapter Review

3. ***BREAK*** (15 minutes)

4. CONCLUDE DISCUSSION (30 minutes)

5. MARKETING CASE DVD (45 minutes) (Wal Mart)

6. DISCUSS NEXT WEEK (30 minutes)

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MARKETING MANAGEMENTMARKETING MANAGEMENT

7 7 Analyzing Business Analyzing Business

MarketsMarkets

Kotler Keller

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-4

Chapter Questions

• What is the business market, and how does it differ from the consumer market?

• What buying situations do organizational buyers face?

• Who participates in the business-to-business buying process?


Chapter Questions

• How do business buyers make their decisions?

• How can companies build strong relationships with business customers?

• How do institutional buyers and government agencies do their buying?


What is Organizational Buying?

Organizational buying refers to the decision-making process by which formal organizations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers.


Define A Business Market

The Business Market consists of all of the organizations that acquire goods and services used in the production of other products or services that are sold, rented or supplied to others.

Characteristics of Business Markets

• Fewer, larger buyers

• Close supplier-customer relationships

• Professional purchasing

• Many buying influences

• Multiple sales calls

• Derived demand

• Inelastic demand

• Fluctuating demand

• Geographically concentrated buyers

• Direct purchasing

Buying Situation

• Straight rebuy

• Modified rebuy

• New task

Review on Page 212

Marketing Memo

GUIDELINES FOR SELLING TO SMALL BUSINESS

Page 212

Roles in the Buying Process

10-11

• Initiators• Users• Influencers• Deciders• Approvers• Buyers• Gatekeepers

Page 214-215


Of Concern to Business Marketers

• Who are the major decision participants?

• What decisions do they influence?

• What is their level of influence?

• What evaluation criteria do they use?

Stages in the Buying Process: Buyphases

• Problem recognition• General need description• Product specification• Supplier search• Proposal solicitation• Supplier selection• Order-routine specification• Performance review

Marketing Memo

METHODS OF ASSESSING CUSTOMER VALUE

Page 226

Conjoint Analysis

Establishing Corporate Trust and CredibilityPage 228

• Expertise

• Trustworthiness

• Likability

Marketing Insight

Most Trusted Companies

Factors Affecting Buyer-Supplier Relationships

• Availability of alternatives

• Importance of supply

• Complexity of supply

MARKETING MANAGEMENTMARKETING MANAGEMENT

8 Identifying Market

Segments and Targets

Kotler Keller

ChapterChapter Questions

• What are the different levels of market segmentation?

• In what ways can a company divide a market into segments?

• What are the requirements for effective segmentation?

• How should business markets be segmented?

• How should a company choose the most attractive target markets?

Markets are not homogenous. A company cannot connect with all customers in large, broad or diverse markets. Consumers vary on many dimensions and often can be grouped according to one or more characteristics. A company needs to identify which market segments it can serve effectively. Such decisions require a keen understanding of consumer behavior and careful strategic thinking.

Core ConceptCore Concept

Effective Targeting Requires Marketers to…Effective Targeting Requires Marketers to…

• Identify and profile distinct groups of buyers who differ in their needs and preferences.

• Select one or more market segments to enter.

• Establish and communicate the distinctive benefits of the market offering.

Marketing our New YUMMY Ice Cream

Basic Market Preference PatternsBasic Market Preference Patterns

•How would you market ice cream to markets with these How would you market ice cream to markets with these preference patterns?preference patterns?

Flexible Marketing OfferingsFlexible Marketing Offerings

Naked solution– Product and service

elements that all segment members value

Discretionary options– Some segment

members value

– Options may carry additional charges

Ingredients at a fair cost Ingredients, recipes and cooking instructions at a fair cost

Experiential MarketingPage 245

CEM- Customer Experience Management…the process of strategically

Managing a customer’s entire

Experience with a product or

Company.

Marketing Insight

Segmenting Consumer MarketsSegmenting Consumer Markets

GeographicGeographic

DemographicDemographic

PsychographicPsychographic

BehavioralBehavioral

Geographic SegmentationGeographic Segmentation

Demographic SegmentationDemographic Segmentation

Age and Life CycleAge and Life Cycle

Life StageLife Stage

GenderGender

IncomeIncome

GenerationGeneration

Social ClassSocial Class

Classic Consumer Segment TargetingClassic Consumer Segment Targeting

Profiling American GenerationsProfiling American Generations

• MILLENIALS– 1979-1994

• BABY BOOMERS– 1946-1964

• GENERATION X– 1964-1978

• SILENT GENERATION– 1925- 1945

Behavioral SegmentationBehavioral SegmentationBuyers are divided on the basis their knowledge of, attitude toward, use of, or Buyers are divided on the basis their knowledge of, attitude toward, use of, or response to a productresponse to a product

Decision Roles• Initiator• Influencer• Decider• Buyer• User

Behavioral Variables• Occasions• Benefits• User Status

– Ex-users, non-users potential users, etc.

• Usage Rate– Light, Medium, Heavy

• Buyer-Readiness• Loyalty Status

– Hard-core loyals, Split loyals, Shifting loyals or Switchers

• Attitude

Segmenting for Business MarketsSegmenting for Business Markets

DemographicDemographic

Operating VariableOperating Variable

Purchasing ApproachesPurchasing Approaches

Situational FactorsSituational Factors

PersonalCharacteristics

PersonalCharacteristics

•Review Review page 230page 230

Effective Segmentation CriteriaEffective Segmentation Criteria

MeasurableMeasurable

SubstantialSubstantial

AccessibleAccessible

DifferentiableDifferentiable

ActionableActionable

Marketing DiscussionMarketing Discussion

IS MASS MARKETING DEAD?

Is there still a viable way for marketers to builda profitable brand through mass marketing or

will it ultimately be replaced by refined targetedsegmentation marketing?

Creating Brand Equity

•Marketing Management, 13th ed

•9


Chapter Questions

• What is a brand and how does branding work?

• What is brand equity?

• How is brand equity built, measured, and managed?

• What are the important decisions in developing a branding strategy?


Steps in Strategic Brand Management

• Identifying and establishing brand positioning

• Planning and implementing brand marketing

• Measuring and interpreting brand performance

• Growing and sustaining brand value


The Role of Brands

•Identify the maker•Identify the maker

•Simplify product handling•Simplify product handling

•Organize accounting•Organize accounting

•Offer legal protection•Offer legal protection


The Role of Brands

•Signify quality•Signify quality

•Create barriers to entry•Create barriers to entry

• Serve as a competitive advantage• Serve as a competitive advantage

•Secure price premium•Secure price premium


Brand Knowledge

• Knowledge

• Thoughts

• Experiences

• Beliefs • Images

• Feelings


Advantages of Strong Brands

• Improved perceptions of product performance

• Greater loyalty• Less vulnerability

to competitive marketing actions

• Less vulnerability to crises

• Larger margins• More inelastic

consumer response• Greater trade

cooperation• Increased marketing

communications effectiveness

• Possible licensing opportunities


BAV Key Components

•Differentiation

•Energy

•Relevance

•Esteem

•Knowledge


Figure 9.3 Brand Dynamics Pyramid

•Presence

•Relevance

•Performance

•Advantage

•Bonding

•Strong Relationship

•Weak Relationship


Aaker Model

• Brand Identity

• Extended Identity • Elements

• Brand Essence

• Core Identity• Elements


Figure 9.4 Brand Resonance Pyramid


Drivers of Brand Equity

• Brand Elements

• Marketing Activities

• Meaning Transference


Brand Elements

• Elements• Slogans

• Brand• names • URLs

• Logos

• Symbols• Characters


Designing Holistic Marketing Activities

• Personalization

• Integration

• Internalization


Figure 9.5 Secondary Sources of Brand Knowledge


Measuring Brand Equity

•Brand Audits•Brand Audits

•Brand Tracking•Brand Tracking

•Brand Valuation•Brand Valuation


Branding Terms

• Brand line• Brand mix• Brand extension• Sub-brand• Parent brand• Family brand

• Line extension• Category extension• Branded variants• Licensed product• Brand dilution• Brand portfolio


Brand Naming

•Individual names•Individual names

•Blanket family names•Blanket family names

•Separate family names•Separate family names

• Corporate name-individual name combo• Corporate name-individual name combo


Brand Roles in a Brand Portfolio

• Flankers

• Low-end

• Entry-level

• High-end

• Prestige

• Cash Cows

Marketing 3

Documents

Transcript of Marketing 3