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Transcript of MB0030 marketing management -MBA sem 2-sanjeev
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MBA II SEM Marketing Management - MB0030 Set 1
NAME SANJEEV SAH
ROLL NO 540911466
MBA SEM 2SUBJECT CODE MB 0030 /SET 1
SUBJECT MARKETING MANAGEMENT
CENTER DUBAI
Q1. Explain the meaning of marketing and its importance in business?
AMA 2004 defines -Marketing is an organization function & a set of process for creating
,communicating & delivering value to customers & for managing customer relationships in ways that
benefit the organization & its stake holders. Marketing consists of all activities designed to create
exchanges which satisfy human or organizational needs or wants in a way that brings profit or growth
for the firm. Marketing performs the task of both identifying & satisfying customer needs. This helps
business enterprises in anticipating customer demand & creating satisfied customers through
conception, production, promotion & physical distribution of goods & services. Customer focus is the
very essence of marketing & the customer view point is taken into consideration while making
marketing decisions. Rapidly emerging forces of globalization have compelled firms to market beyond
the borders of their home country making International marketing highly significant and an integral part
of a firm's marketing strategy.[1]
Marketing managers are often responsible for influencing the level,
timing, and composition of customer demand accepted definition of the term. In part, this is because
the role of a marketing manager can vary significantly based on a business' size, corporate culture, and
industry context. For example, in a large consumer products company, the marketing manager may act
as the overall general manager of his or her assigned product[2]
To create an effective, cost-efficient
Marketing management strategy, firms must possess a detailed, objective understanding of their
own business and the market in which they operate.[3]
In analyzing these issues, the discipline of
marketing management often overlaps with the related discipline of strategic planning.
Core concept are needs & wants, demand, product & services, target market, marketing management
& value satisfaction. The delivery of goods & services from producers to their ultimate consumers or
users includes many different activities. Some of the most important functions are Marketing research &
information management , advertising & sales promotion, product planning & management, selling,
physical distribution & pricing. Marketing research function is concerned with gathering , analyzing &
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interpreting data in a systematic & scientific manner. The types of market information could be analysis
of market size & characteristics, consumer taste & preference changes in them from time to time,
channel of distribution communication & their effectiveness , economic, social, political & technological
environment & changes therein. A company can procure such information from specialized market
research agencies or by self. Advertising & sales promotion is a mass media tool used to inform
,persuade or remind customers about products or services. It is impersonal message targeted at a
chosen group through paid space or time.Product planning & management identifys needs & wants of
consumers ,develop suitable product /services & make them available. Selling is concerned with
transferring of products to the customer ,sales force management includes recruitment
,training,supervision,compensation& evaluation of salesman.Physical distribution are for order
processing,inventory management,warehousing & transportation.Pricing the factors for marketing to
consider is competition,company marketing policy & buying capacity of the target market.
Importance of marketing in business:
Marketing analysis was structured into three areas: Customer analysis, Company analysis, and
Competitor analysis (so-called "3Cs" analysis). More recently, it has become fashionable in some
marketing circles to divide these further into certain five "Cs": Customer analysis, Company analysis,
Collaborator analysis, Competitor analysis, and analysis of the industry Context.
Department analysis is to develop a schematic diagram for market segmentation, breaking down the
market into various constituent groups of customers, which are called customer segments or market
segmentations. Marketing managers work to develop detailed profiles of each segment, focusing on any
number of variables that may differ among the segments: demographic, psychographic, geographic,
behavioral, needs-benefit, and other factors may all be examined. Marketers also attempt to track these
segments' perceptions of the various products in the market using tools such as perceptual mapping.
The firm's collaborators may also be profiled, which may include various suppliers, distributors and
other channel partners, joint venture partners, and others. An analysis of complementary products may
also be performed if such products exist
Marketing management employs various tools from economics and competitive strategy to analyze the
industry context in which the firm operates. These include Porter's five forces, analysis of strategic
groups of competitors, value chain analysis and others. Depending on the industry, the regulatory
context may also be important to examine in detail.
In Competitor analysis, marketers build detailed profiles of each competitor in the market, focusing
specially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing
managers will examine each competitor's cost structure, sources of profits, resources and
competencies, competitive positioning and product differentiation, degree of vertical integration,
historical responses to industry developments, and other factors. Marketing management often finds it
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necessary to invest in research to collect the data required to perform accurate marketing analysis. As
such, they often conduct market research (alternately marketing research) to obtain this information.
Marketers employ a variety of techniques to conduct market research, but some of the more common
include:
Qualitative marketing research, such as focus groups
Quantitative marketing research, such as statistical surveys
Experimental techniques such as test markets
Observational techniques such as ethnographic (on-site) observation
Marketing managers may also design and oversee various environmental scanning and competitive
intelligence processes to help identify trends and inform the company's marketing analysis
Though marketing is tied to Sales it continues to be an expenditure that is hard to l ink to growth in sales.
Given the economic down turn many world economies or companies are facing... how would a function
like marketing justify itself as a necessary expenditure so it would not be cut... budget or as a
department. In a downturn, marketing becomes even more important to the company's bottom line,
making a profit. A marketing plan is key to establishing the dimensions of your market, where you fit
according to your product and identifying where a company should focus its marketing budget to
achieve the best overall results. In a downturn, marketing helps to identify new markets, target new
customers and determine the value of the product. If the product that is currently in production does
not have a substantial customer base of support, if sales are slipping and competition is securing your
former market share. Marketing helps to identify the need for a product revitalization or reinvention.
The firm's collaborators may also be profiled, which may include various suppliers, distributors andother channel partners, joint venture partners, and others. An analysis of complementary products may
also be performed if such products exist.
Marketing management employs various tools from economics and competitive strategy to analyze the
industry context in which the firm operates. These include Porter's five forces, analysis of strategic
groups of competitors, value chain analysis and others. Depending on the industry, the regulatory
context may also be important to examine in detail.
For a company in any business , marketing is considered to be most important activity. It helps an
organization to keep abreast of changes taking place in the market & consumer tastes & preferences
through market research. Marketing provides an effective channel of communication to the company
with its consumers by way of advertising & sales promotion. Marketing thus brings revenue & earns
goodwill for the company.
In business successful operation of marketing activities creates , maintains & increases the demand for
goods & services in the economy.This in turns increases the national income, which is beneficial to the
economy. Increase in marketing activities brings employment in large numbers.
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Q2.Explain the relevance of BCG matrix and GE matrix with examplesAns. This model is used to identify companys SBUs position in the market. This model identifies the
SBUs strengths weaknesses, opportunities and threats on the basis of market growth rate and relative
market share. This model is also known as growth share matrix. The origin of the Boston Matrix lies with
the Boston Consulting Group in the early 1970s. It was devised as a clear and simple method for helping
corporations decide which parts of their business they should allocate their available cash to. Today, this
is as important as ever because of the limited availability of credit.
However, the Boston Matrix is also a good tool for thinking about where to apply other finite resources:
people, time and equipment. Market share is the percentage of the total market that is being serviced
by your company, measured either in revenue terms or unit volume terms. The higher your market
share, the higher proportion of the market you control. The Boston Matrix assumes that if you enjoy a
high market share you will normally be making money (this assumption is based on the idea that you will
have been in the market long enough to have learned how to be profitable, and will be enjoying scale
economies that give you an advantage).
The question it asks is, "Should you be investing your resources into that product line just because it is
making you money?" The answer is, "not necessarily." This is where market growth comes into play.
Market growth is used as a measure of a market's attractiveness. Markets experiencing high growth are
ones where the total market is expanding, which should provide the opportunity for businesses to make
more money, even if their market share remains stable.
By contrast, competition in low growth markets is often bitter, and while you might have high market
share now, what will the situation look like in a few months or a few years? This makes low growth
markets less attractive
Axis components:
Market Growth rate: the rate at which market is growing.
Relative Market Share: market share of the SBU dived by the market share of the largest competitor.
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Model Components:
These groups are explained below:
Dogs:
Low Market Share / Low Market Growth. In these areas, SBUs market presence is weak, so it's going to
take a lot of hard work to get noticed. Also, you won't enjoy the scale economies of the larger players,
so it's going to be difficult to make a profit.
Cash Cows:
High Market Share / Low Market Growth Here, SBUs are well-established, so it's easy to get attention
and exploit new opportunities. However it's only worth expending a certain amount of effort, because
the market isn't growing and your opportunities are l imited. here we can say cash cow can be milked.
Stars:
High Market Share / High Market Growth Here SBUs are well-established, and growth is exciting! These
are fantastic opportunities, and you should work hard to realize them.
Question Marks (Problem Child)
Low Market Share / High Market Growth These are the opportunities no one knows what to do with.
They aren't generating much revenue right now because you don't have a large market share. But, they
are in high growth markets so the potential to make money is there. Here there are two choices, either
to invest heavily to bring it to star position or divest or liquidate from that position. Question Marks
might become Stars and eventual Cash Cows, but they could just as easily absorb effort with little
return. These opportunities need serious thought as to whether increased investment is warranted.
Key Points
The Boston Matrix is an effective tool for quickly assessing the options open to you, both on a corporate
and personal basis. With its easily understood classification into "Dogs", "Cash Cows", "Question Marks"
and "Stars", it helps you quickly and simply screen the opportunities open to you, and helps you think
about how you can make the most of them.
BCG matrix for Agthia beverage (Taken from GULF news business report on 23rd
July 2010)
Agthia group , a leading Abu Dhabi based food & beverage group reported net sales of Dh
477.4million compared to Dh 456 million in first half 2009 , a growth of 5% year on year .This result
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was driven by particular strong performance in the company water & juice division which achieved a
36% sales growth year on year.
SBU FMCG :
FMCG growth rate = 12% growth in 2009 (Food & beverage magazine 2010)
Agthia group =5% growth in 2009
Agthia SBU(water & juice division)= 36% sales growth in 2009.
Agthia market share = 6% (Water & juice division)
Leading competitor share Al Ain industries = 38%
Relative market share =0.157
BCG analysis: Relative market share is 0.157 Agthia water & juice SBU is in high growth & low relative
market share. ? Question mark position .Agthia can convert its SBU to star category if it decides to
invest heavily to gain higher market share then eventually to cash cow.
Limitations:
As any other marketing theories in the field, the BCG matrix model is not perfect either. There are
according problems of this theory. Some limitations concerning the particular use of BCG include:
1. Only two dimensions market share and product or service growth rate, are employed. These are the
first limitations.
2. How to define market and how to get data about market share are also problems.
3. High market shares dont always necessarily lead to profit at all times. It is not the only success factor.
4. Low share or niche businesses can be profitable too, which means in the real world some Dogs can be
more profitable than cash Cows.
5. The model cannot reflect the growth rates of the general market and market growth is not the only
indicator for market attractiveness.
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6. The model also neglects the effects of synergy between different business units.
The GE screen matrix is essentially a derivation of the Boston Consulting Groups Boston growth matrix.
It was developed by McKinsey and Co. for General Electric as it had been recognized that the Boston
Consulting Group matrix was not flexible enough to take broader issues into account .
Management can use the GE business matrix to classify SBU on the basis of two factors
a. Market attractiveness : Market size, entry barriers ,competitors,technology & profit margin .
b. Buisness position : Market share ,SBU size,R&D capabilities & cost controls.
Each cell in the model represented by particular strategy namely ,invest strategy,protect
strategy,harvest strategy & divest strategy.
Invest strategy:
a.Should receive ample resources
b. Should be supported by well financed marketing efforts
Protect strategy:
a. Allocate the resource selectively
b. Develop stragies which help in maintain its market position.
c. Generate cash needed by other SBU.
Harvest strategy:SBU should not receive substantial new resources & if required ,sell them
Divest strategy: SBU sell or shut as early as possible.
Market attractiveness Business position
HIGH MEDIUM LOW
INVEST INVEST PROTECT
INVEST PROTECT HARVEST
PROTECT HARVEST DIVEST
The GE matrix cross-references market attractiveness and business position using three criteria for each
high, medium and low. The market attractiveness considers variables relating to the market itself,
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including the rate of market growth, market size, potential barriers to entering the market, the number
and size of competitors, the actual profit margins currently enjoyed, and the technological implications
of involvement in the market. The business position criteria look at the businesss strengths and
weaknesses in a variety of fields. These include its position in relation to its competitors, and the
businesss ability to handle product research, development and ultimate production. It also considers
how well placed the management is to deploy these resources. The matrix differs in its complexity
compared with the Boston Consulting Group matrix. Superimposed on the basic diagram are a number
of circles. These circles are of variable size (see Figure 22). The size of each represents the size of each
market. Within each circle is a clearly defined segment which represents the businesss market share
within that market. The larger the circle, the larger the market, and the larger the segment, the larger
the market share.
Q3. What to do mean by MIS? Explain its benefits, types and components?
Ans. A management information system (MIS) is a system or process that provides information neededto manage organizations effectively . Management information systems are regarded to be a subset of
the overall internal controls procedures in a business, which cover the application of people,
documents, technologies, and procedures by management accountants to solve business problems such
as costing a product, service or a business-wide strategy. Management information systems are distinct
from regular information systems in that they are used to analyze other information systems applied in
operational activities in the organization.[2]
Academically, the term is commonly used to refer to the
group of information management methods tied to the automation or support of human decision
making, e.g. Decision Support Systems, Expert systems, and Executive information systems.[2]
MIS as
System: MIS is a system, which makes available the right information to the right person at the right
place, at the right time, in the right form & at the right cost.
At the start, in businesses and other organizations, internal reporting was made manually and only
periodically, as a by-product of the accounting system and with some additional statistic(s), and gave
limited and delayed information on management performance. Previously, data had to be separated
individually by the people as per the requirement and necessity of the organization. Later, data was
distinguished from information, and instead of the collection of mass of data, important, and to the
point data that is needed by the organization was stored. Early on, business computers were mostly
used for relatively simple operations such as tracking sales or payroll data, often without much detail.
Over time these applications became more complex and began to store increasing amounts of
information while also interlinking with previously separate information systems. As more and more
data was stored and linked man began to analyze this information into further detail, creating entire
management reports from the raw, stored data. The term "MIS" arose to describe these kinds of
applications, which were developed to provide managers with information about sales, inventories, and
other data that would help in managing the enterprise. Today, the term is used broadly in a number of
contexts and includes (but is not limited to): decision support systems, resource and people
management applications, ERP, SCM, CRM, project management and database retrieval application. An
'MIS' is a planned system of the collecting, processing, storing and disseminating data in the form of
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information needed to carry out the functions of management. In a way it is a documented report of the
activities that were planned and executed. According to Philip Kotler "A marketing information system
consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed,
timely, and accurate information to marketing decision makers."[3]
The terms MIS and information
system are often confused. Information systems include systems that are not intended for decision
making. The area of study called MIS is sometimes referred to, in a restrictive sense, as information
technology management. That area of study should not be confused with computer science. IT service
management is a practitioner-focused discipline. MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision
support. Any successful MIS must support a businesses Five Year Plan or its equivalent. It must provide
for reports based up performance analysis in areas critical to that plan, with feedback loops that allow
for titivation of every aspect of the business, including recruitment and training regimens. In effect, MIS
must not only indicate how things are going, but why they are not going as well as planned where that is
the case. These reports would include performance relative to cost centers and projects that drive profit
or loss, and do so in such a way that indentifies individual accountability, and in virtual real-time.
Benefits
1. Improves personal efficiency
2. Expedites problem solving(speed up the progress of problems solving in an organization)
3. Facilitates interpersonal communication
4. Promotes learning or training
5. Increases organizational control
6. Generates new evidence in support of a decision
7. Creates a competitive advantage over competition
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8. Encourages exploration and discovery on the part of the decision maker
9. Reveals new approaches to thinking about the problem space
10. Helps automate the Managerial processes.
Decision Support Systems (DSS) are a specific class of computerized information systems that supports
business and organizational decision-making activities
Definition: Management Information Systems (MIS) is the term given to the discipline focused on the
integration of computer systems with the aims and objectives on an organisation. It does the following
function .
sub serves managerial function
collects stores , evaluates information systematically and routinely
supports planning and control decisions
Includes files , hardware , software , software and operations research models It Facilitates planning In
Minimizes information overload MIS Encourages Decentralization It brings Co ordination It makes
control easier MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information
Types
Management information systems are those systems that allow managers to make decisions for the
successful operation of businesses. Management information systems consist of computer resources,
people, and procedures used in the modern business enterprise. The termMIS stands for management
information systems. MIS also refers to the organization that develops and maintains most or all of the
computer systems in the enterprise so that managers can make decisions. The goal of the MIS
organization is to deliver information systems to the various levels of corporate managers. MIS
professionals create and support the computer system throughout the company. Trained and educated
to work with corporate computer systems, these professionals are responsible in some way for nearly all
of the computers, from the largest mainframe to the desktop and portable PCs.
Management information systems can be used as a support to managers to provide a competitive
advantage. The system must support the goals of the organization. Most organizations are structured
along functional lines, and the typical systems are identified as follows:
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Accounting management information systems: All accounting reports are shared by all levels of
accounting managers.
Financial management information systems: The financial management information system provides
financial information to all financial managers within an organization including the chief financial officer.
The chief financial officer analyzes historical and current financial activity, projects future financialneeds, and monitors and controls the use of funds over time using the information developed by the
MIS department.
Manufacturing management information systems: More than any functional area, operations have
been impacted by great advances in technology. As a result, manufacturing operations have changed.
For instance, inventories are provided just in time so that great amounts of money are not spent for
warehousing huge inventories. In some instances, raw materials are even processed on railroad cars
waiting to be sent directly to the factory. Thus there is no need for warehousing.
Marketing management information systems: A marketing management information system supports
managerial activity in the area of product development, distribution, pricing decisions, promotional
effectiveness, and sales forecasting. More than any other functional area, marketing systems rely on
external sources of data. These sources include competition and customers, for example.
15
Transforming Data Into Information
Data Inputs Information Outputs
Capture
Manipulation
Storage
Provision of Access
at User Location
ExternalData
InternalData
Information System
Query Response
Decision Outcome
Expert-System Advice
Transaction Document
Report
Organization
Environment
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Human resources management Information systems:
Human resources management information systems are concerned with activities related to workers,
managers, and other individuals employed by the organization. Because the personnel function relates
to all other areas in business, the human resources management information system plays a valuable
role in ensuring organizational success. Activities performed by the human resources managementinformation systems include, work-force analysis and planning, hiring, training, and job assignments.
Q4. Suppose you need to conduct a small marketing research in your
neighborhood regarding the purchase & use of toothpaste ,what will
be your approach in the process?
Ans : My approach will be to have knowledge & study about the following :
y Neighborhood needs
y Attitudes
y Buying behavior
y Marketing programs
y Demographic segmentation of age, sex, occupation, race, social class,
culture
y Psychographic segmentation consumer life style, attitudes, behavior,
personality
How To Identify A Target Market And Prepare A Customer Profile
Get the message to the people who need and want what I have to offer! We need tomake customer profile to better channel the marketing effort.
What You Should Know Before Getting Started
y Types Of Markets
Identifying Your Markety Step One: Identifying Why a Customer Would Want to Buy Your Product/Service
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y Step Two: Segment Your Overall Market
y Step Three: Research Your Market
Sample of a Customer Profile and Analysis
Choose the Segmented Target Market(s) You Will Send To
Checklist
Resources
y Targeting neighborhood market is simply defining who your primary customer willbe. The market should be measurable, sufficiently large and reachable.
y
Neighborhood Population who usetoothpaste
Market size
Area 1 200 adult/100 child 300
Area 2 150 adult/100 child 250
Area 3 75 adult/45 child 120
Area 4 80 adult/30 child 110
Area 5 87 adult/40 child 127
Area 6 200 adult/50 child 250
Market size:
In terms of population : total =1157 persons
Adult: 792
Child: 365
Considering one person uses 100 gm of toothpaste per month
then the toothpaste market is for 1157 toothpaste tubes of 100
gm per month .
Identifying Your Market :
y Step One: Identifying Why a Customer Would Want to Buy Your Product/Service
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Toothpaste has a stain-removing formula. The benefit to the customer, however, iswhiter teeth. People use pan & have stained teeth so they will prefer to use toothpaste,to have better oral hygiene.
Features: Benefits:
1.Remove stains from teeth 1. improves oral hygiene
2.Removes bad breadth 2. improves oral hygiene
3.Face looks brighter 3. improves self confidence
4.Easy to use & available 4. saves time & gives benefit
Step Two: Segment Your Overall Market
demographic characteristics of your market.
Consumer Market
Age
Income,Gender, Profession, Education, Family Size , Homeowner , MaritalStatus
Business Market
Geographic location : Neighborhood
Size of Company: small scale
Annual revenue:10 lacs
Number of Branches:1
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Number of Employees: 2
Industry:fmcg
Age of Company:one year
psychographic variables. Identify the characteristics of your target market.
Consumer market
Lifestyle: middle class
Fun-Seeking: no
Family Stage: Mixed
Trendy: conservative
Hobbies: tv,study
Status Seeking: yes
Sports Enthusiasts: yes
Conservative: yes
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Forms of Entertainment: Tv, playing cricket,gossip
Socially Responsible: yes
Publication
Environmentally Conscious: yes
Influencer : elder
Family Oriented: yes
Business Market
Business Style : Kiranawala ,one man shop
Management Style: ownership propriety
Behavioristic.
Products and services are purchased for a variety of reasons
Answer the following questions regarding your market.
Reason/occasion for purchase? To clean teeth
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Number of times they'll purchase? Monthly
Timetable of purchase, every week, month, quarter, etc.? Monthly
Amount of product/service purchased? 1157 toothpaste /month
How long to make a decision to purchase? Day ,first week after salary
Where customer purchases and/or uses product/service?
Take a moment to decide which segmentation criteria will be most helpful to you insegmenting your target market:
geographic _____Yes _____No
demographic _____Yes _____No
psychographic _____Yes _____No
behavioristic _____Yes _____No
Next, identify what is important to your customers and rank these on a scale of high,medium, low or not at all. Are they price sensitive? Are they looking for the highestquality? Is great customer service important? Or, is location a deciding factor?
High Medium Low Not At All
Price y
Quality y
Brand Name y
Variety of services y
Salespeople y
Customer Service y
Special Offers y
Promotional Campaign y
Packaging y
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Convenience of Use y
Convenience of Purchase y
Location y
Guarantees y
Store/Office Decor y
Payment Terms y
Other y
Step Three: Research Your Market
Some or all these reference tools can be found in the reference collection of any publiclibrary or college library that supports local business or a business school:
Sample Of A Customer Profile And Analysis
Customer Profile:use & purchase of the tooth paste
Gender:
48% Female 52% Male
Age:
30% 1-18 30% 18-40 20% 41-55 20% 56-& above
Income:
25% 30-40K 25% 40-50K 50% 50-75K
Marital Status:
70% Married 30% Single
Level Of Education:
60% Bachelor's degree 40% Master's degree
Occupations:
10% Health Care 20% Financial
30% Marketing/Advertising 40% Hi-Tech Fields
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Toothpaste use & purchase
70% Same toothpaste everytime 30% Try New
1. improves oral hygiene
2. improves oral hygiene
3. improves self confidence
4. saves time & gives benefit
Psychographic Summary: This segment closely associates oral hygiene with self-esteem.
Choose The Segmented Target Market(s) You Will Sell To [top]
After identifying and defining the possible segments within your target market, you mustface the critical question of whether it would be profitable and feasible for you to pursueeach identified segment, or choose one or two. To make this decision, you must answerthe following questions:
y What is the financial condition of my firm? If you have limited resources at thistime, you may want to direct your marketing efforts to only one segment. Aconcentrated advertising campaign to reach one market segment is likely to bemore effective than a diffuse campaign attempting to reach two.
y What segments are my competitors covering? Are they ignoring smallersegments that I can possibly exploit? The printing company previously mentionedmay decide to pursue small magazine publishers because there are manycompetitors currently serving the needs of larger publishers. Or, Career Optionsmay discover that since in their geographic location there are several firms thatspecialize in helping professionals in transition, they should specialize in therecent college graduate market.
y Is the market new to your firm? If so, it may be better for you to concentrate onone segment for now, and expand to others when your initial segment has been
successfully penetrated. Developing new markets takes a greater commitment oftime, money and energy.
Important Considerations:y If you pursue one segment of your target market and the demand for your
product decreases, so will your financial strength. In essence, you are putting allyour eggs in one basket.
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y When your firm becomes well established in a particular market segment, it maybe difficult for you to move to another segment. This may occur due to yourmarket reputation or popularity.
For example, if Career Options becomes known for helping college graduates
find jobs, unemployed professionals may perceive them as only having theexpertise to serve that market.
y After you have mastered one particular segment, you can then begin to developanother. Directing your firm's marketing efforts at more than one market segmentby developing a marketing mix for each specific segment is known as multi-segment strategy. An example of a product that was traditionally targeted atwomen and is now being targeted with variations in strategy at men is haircoloring.
The marketing mixes for multi-segment strategy may vary by product feature, price,promotional material and distribution methods. If product variations requires additionalwork, you may incur higher production costs. Additionally, different promotional plansand distribution efforts will result in higher marketing costs. Plan carefully, to make surethe costs don't outweigh the benefits.
Now Thinking about All The Characteristics You Have Identified And Start FormulatingThe Promotional Campaign That Will Best Address
This Specific Target Market. : 1157 toothpaste of 100gm /month
=if one toothpaste is Rs 40 then 1157x40= Rs 46280/month
Start To Formulate A Picture Or Description Of Your Ideal Customer.
y Ideal customer is one who brushes his teeth two times a day which is presentlyone time per day .This habit can be taught to the children who are 365 out of1157 .
y Growth is with targeting the children & educating them to the benefit of improvingoral hygiene.
y
How many brands are available : six
What kind of shops have stock of toothpaste : grocery
How people buy the toothpaste /fluoride/normal/salted/aquafresh/mouthfresh? Cash
Whether promotion improves sales: yes door to door campaign.
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conscience.
y The egoorthe control device thatmaintainsa balance betweenthe id & the superego. tismostsuperficial portionofthe id. tismodified by the influence ofthe outside world. tsprocessesare entirely conscious because itis concerned with the perceptionofthe outside
world.
The basic theme ofthe theory isthe beliefthata personis unable tosatisfy all hisneedswithinanindividual which have to be repressed.Such represented tensionisalwayssaidto existinthe subconscious & continuestoinfluence consumerbehavior.
4.The sociological model:
y Individual buyer is influenced by society orintimate groupsas well associal classes.Hisbuying decisionsare nottotally governed by utility ,he hasa desire to emulate ,follow &fit with hisimmediate environment.
5.The Nicosia model:
y These are systemmodel where the human beingisanalysed asasystem with stimulias
the inputtothe system & behaviorasthe outputofthe system.Francesco Nicosiaanexpertin consumermotivation & behaviorputforward hismodel ofbuyerbehaviorin
1966. The model triesto establish the linkage betweenafirm & its consumerhow theactivitiesofthe friminfluence the consumer& resultin his decisionto buy. The message
fromthe firmfirstinfluence the pre dispositionofthe consumertowardsthe product.Hedevelopsa certainattitude towardsthe product. fthese steps have a positive impacton
him,itmay resultina decisionto buy.Nicosiamodel group activitiesintofourbasic fields
y Field one hastwosub fields hastwosub fieldsthe firmsattribute & consumerattribute.Advertisingmessage fromthe firmreachesthe consumerattributes.Depending
onthe way the message isreceived by the consumera certainattribute may develop &this becomesthe inputforfield two.
y Field twoisthe areaofsearch & evaluationofthe advertised product & otheralternatives. fthis processresultsinamotivationto buy, it becomesthe inputforfieldthree.
y Field three consistsofthe actofpurchase.
y Field four consistsofthe use ofthe purchased item.