Marketing Strategies Foundation
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Transcript of Marketing Strategies Foundation
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Introduction to MarketingStrategies
Chapter
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Marketing- set of processes for creating,communicating, and delivering value to customers andfor managing customer relationships in ways that benefitthe organization and its stakeholders.
Marketing begins with discovering unmet customer needs andcontinues with researching the potential market; producing a goodor service capable of satisfying the targeted customers; andpromoting, pricing, and distributing that good or service.
Throughout the entire marketing process, a successful organizationfocuses on building customer relationships.
The best marketers not only give consumers what they want buteven anticipate consumers needs before those needs surface.
Exchange process- activity in which two or more partiesgive something of value to each other to satisfy
perceived needs.
What Is Marketing?
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Utility: power of a good or service to satisfy awant or need
Create time utility by making a good or serviceavailable when customers want to purchase it.
Create place utility by making a productavailable in a location convenient for customers.
Create ownership utility through an orderlytransfer of goods and services from the seller tothe buyer.
How Marketing Creates Utility
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Evolution of the Marketing Concept
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Marketing concept- company-wideconsumer orientation to promote long-runsuccess.
Firm starts with analysis of customers needsand works backward to offer products thatfulfill them.
Explained by shift from sellers marketin
which goods and services are relativelyscarce tobuyers marketin which they arerelatively plentiful.
Emergence of the MarketingConcept
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20 million not-for-profits exist worldwide.
Apply marketing tools to reach audiences, securefunding, improve their images, and accomplishtheir overall missions.
Not-for-profit organizations operate in both public
and private sectors.
Sometimes partner with a profit-seeking companyto promote a message.
Not-for-Profit Marketing
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Non-Traditional Marketing
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1. Study and analyzepotential targetmarkets and choose
among them.
2. Create a marketing
mix to satisfy thechosen market.
Developing a Marketing Strategy
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Target market- group of people toward whom anorganization markets its goods, services, or ideaswith a strategy designed to satisfy their specificneeds and preferences.
Types of Markets
consumer (B2C) product: good or service that ispurchased by end users
business (B2B) product: good or service purchased to beused, either directly or indirectly, in the production ofother goods for resale
Selecting a Target Market
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Marketing Mix blends the four strategies to fit theneeds and preferences of a specific target market.Product strategy involves the nature of the product and its
package design, brand names, trademarks, and productimage.
Distribution strategy ensures that customers receive theirpurchases in the proper quantities at the right times andlocations.
Promotional strategy blends advertising, personal selling,
sales promotion, and public relations to achieve its goals ofinforming, persuading, and influencing purchase decisions.
Pricing strategy is setting profitable and justifiable prices forthe firms product offerings, sometimes subject to government
scrutiny.
Marketing Mix
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Standardization- offering the same marketingmix in every market.
Adaptation- developing a unique marketing
mix to fit each markets local competitiveconditions, consumer preferences, andgovernment regulations.
Mass customization- allows a firm to mass
produce goods and services while addingunique features to individual or small groups oforders.
Marketing Mix for InternationalMarkets
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Marketing research the process of collecting andevaluating information to support marketing decisionmaking. AC Nielson Consumer Research
Secondary data Previously published data from tradeassociations, advertising agencies, marketing researchfirms, and other sources.
Primary data Data collected through observation,surveys, and other forms of observational study.
Data mining computer searches of customer data todetect patterns and relationships.
Business intelligence activities and technologies forgathering, storing, and analyzing data to make bettercompetitive decisions
Marketing Research
http://en-us.nielsen.com/content/nielsen/en_us.htmlhttp://en-us.nielsen.com/content/nielsen/en_us.htmlhttp://en-us.nielsen.com/content/nielsen/en_us.htmlhttp://en-us.nielsen.com/content/nielsen/en_us.htmlhttp://en-us.nielsen.com/content/nielsen/en_us.htmlhttp://en-us.nielsen.com/content/nielsen/en_us.htmlhttp://en-us.nielsen.com/content/nielsen/en_us.html -
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Market Segmentation Market segmentation the process of dividing a total
market into several relatively homogeneous groups.
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How Market Segmentation Works
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Geographic Segmentation Divides market into homogeneous groups on the basis of their
locations.
Demographic Segmentation
Divides market on the basis of various demographic or socioeconomic
characteristics: gender, income, age, occupation, household size,stage in the family life cycle, education, and ethnic group
Psychographic Segmentation
Divides consumer market into groups with similar psychologicalcharacteristics, values, and lifestyles. (VALS)
AIO statementspeoples verbal descriptions of various attitudes, interests,and opinions
Product-Related Segmentation
Divides market based on buyers relationship to the good or service.
based on benefits sought by buyers, usage rates, and loyalty levels
Segmenting Consumer Markets
http://www.strategicbusinessinsights.com/vals/presurvey.shtmlhttp://www.strategicbusinessinsights.com/vals/presurvey.shtml -
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Geographic segmentation targetsgeographically concentrated industries.
Demographic, or customer-based,
segmentation a good or serviceintended for a specific organizationalmarket (i.e. healthcare).
End-use segmentation focuses onthe precise way a B2B purchaser willuse a product.
Segmenting Business Markets
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Product- a bundle of physical, service, andsymbolic characteristics designed to satisfyconsumer wants
Product Categories: Convenience products- items the consumer seeks to purchase
frequently, immediately, and with little effort
Shopping products- typically purchased only after the buyer has
compared competing products in competing stores Specialty products- items a purchaser is willing to make a
special effort to obtain
Product Strategy
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Product Classification
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Capital versus Expense Items Installations- major capital items such as new factories,
heavy equipment and machinery, and custom-madeequipment
Accessory equipment- includes less expensive andshorter-lived capital items than installations and involvesfewer decision makers
Component parts and materials- become part of a final
product Raw materials- farm and natural products used in
producing other final products
Supplies- expense items used in a firms daily operations
that do not become part of the final product
Classifying Business Goods
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Different from Goods
Intangible
Perishable
Difficult to standardize
Service provider is the service
Services
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Brand recognition- consumer is aware of the brand butdoes not have a preference for it over other brands
Brand preference- consumer chooses one firms brandover a competitors
Brand insistence- consumer will seek out preferred brandand accept no substitute for it (the ultimate degree of brand
loyalty)
Brand Loyalty
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Brand equity- added value that a respected andsuccessful name gives to a product
Brand awareness- product is the first one thatcomes to mind when a product category ismentioned
Brand Equity
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Distribution channel: path through whichproductsand legal ownership of themflowfrom producer to consumers or business users
Physical distribution: actual movement ofproducts from producer to consumers or
business users
Distribution Strategy
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Distribution Channels
Di t ib ti Ch l U i
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Direct Distribution Direct contact between producer and customer.
Most common in B2B markets.
Often found in the marketing of relatively expensive, complexproducts that may require demonstrations.
Internet is helping companies distribute directly to consumermarket.
Distribution Channels Using Marketing Intermediaries Producers distribute products through wholesalers and retailers. Inexpensive products sold to thousands of consumers in widely
scattered locations.
Lowers costs of goods to consumers by creating market utility.
Distribution Channels UsingMarketing Intermediaries
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Marketing Intermediaries
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Direct responseretailing
Internet retailing
Automaticmerchandising
Direct selling
Non-Store Retailing
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Promotion is the function of informing,persuading, and influencing a purchasedecision.
Integrated marketing communications (IMC)is the coordination of all promotional activities
media advertising, direct mail, personal selling,sales promotion, and public relationstoproduce a unified, customer-focused message.
Promotion
Objecti es of Promotional
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Objectives of PromotionalStrategies
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Advertising Media Pie
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Sales promotionconsists of forms of
promotion such ascoupons, productsamples, and rebatesthat supportadvertising andpersonal selling.
Sales Promotion
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A person-to-person promotional presentation toa potential buyer
Many companies consider personal selling the key to
marketing effectiveness. A seller matches a firms goods or services to the
needs of a particular client or customer.
Today, sales and sales-related jobs employ about 16
million U.S. workers. Businesses often spend five to ten times as much on
personal selling as on advertising.
Example: Selling to the government or military.
Personal Selling
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The Sales Process
Pricing Objectives in the
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Pricing Objectives in theMarketing Mix
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Skimming pricing Setting an intentionally high price relative to the prices of competing products
Helps marketers set a price that distinguishes a firms high-end product fromthose of competitors
Penetration pricing
Setting a low price as a major marketing weapon Often used with new products
Everyday low pricing and discount pricing Maintaining continuous low prices rather than relying on short-term price-cutting
tactics such as cents-off coupons, rebates, and special sales
Discount pricing - businesses hope to attract customers by dropping prices for aset period of time
Competitive pricing Reducing the emphasis on price competition by matching other firms prices
Concentrating marketing efforts on the product, distribution, and promotionalelements of the marketing mix
Alternative Pricing Objectives
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Price-quality relationships
Consumers perceptions of quality closely tied
to price
High price = prestige and higher quality
Low price = less prestige and lower quality
Odd pricing
Setting prices in uneven amounts or amountsthat sound less than they really are
Example: $1.99 or $299
Consumer Perceptions of Price