MM1 for BM 201

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Marketing Management

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Questions

What is marketing?

What can marketers market?

What types of decisions do marketers

make?

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Marketing and Exchange

Marketing is an exchange between a firm

and customer

Company

CustomerThe customer seeksbenefits from the company,

and expects to pay.

The company offers

benefits to its customers,

and seeks profits.

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Discussion Questions

Why might an exchange NOT occur?

What is the long term benefit to having

satisfaction in an exchange?

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What Can We Market?

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What Can We Market?

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Orientations

Product/Production

Build a better mousetrap

Selling Orientation

Lets make a Deal

Marketing/Customer

Building relationships with the customer

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Holistic Marketing Dimensions

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Discussion Question

Assume you are marketing pens. Can

you describe how you would market

under a product orientation compared toa customer orientation?

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Core Marketing Concepts

Needs, wants, and

demands

Target markets,

positioning,

segmentation

Offerings and

brands

Value and

satisfaction

Marketing channels

Supply chain

Competition

Marketing

environment

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Marketing Framework

Start with a Situational Analysis using the 5Cs

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Marketing Framework

Customers

Who are they?

What are they like? Do we want to draw different customers?

Company What are our strengths and weaknesses?

What customer benefits can we provide?

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Marketing Framework

Context

What is happening in our industry that might

reshape our future business?

Collaborators

Can we address our customers needs while

strengthening our B2B partnerships?

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Marketing Framework

Competitors

Who are the competitors we must consider?

What are their likely actions and reactions?

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Marketing Framework

Proceed to Strategic Marketing Planning with STP

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Marketing Framework

Segmentation Customers arent all the same; they vary in

their preferences, needs, and resources

TargetingAttracting some of those customers makes

better sense than going after others

Positioning Communicate your benefits clearly to your

intended customers

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Purchase Decision Making

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Marketing Segmentation

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Why Segment?

Consumers needs and preferences vary

It is impossible for firms to satisfy

everyones needs with a single offering

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Discussion Question

Can you think of a single product that

satisfies everyones needs/preferences?

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What is Segmentation?

Segmentation

Breaking the heterogeneous market into

smaller, homogeneous markets

Segment

A group of customers who share similar

inclinations toward a brand

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Groups of Customers

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Groups of Customers

Mass MarketingAll customers are treated the same

Customer needs are not met Butless expensive to implement

One-to-one Marketing

Each customer serves as own segment More expensive to implement

Butcustomer needs are better met

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Groups of Customers

Marketing Segmentation Customers are broken into more

homogeneous groups

Groups are small enough that customerneeds are met

Butlarge enough to be profitable

Niche marketingA segment is broken into smaller customergroups with particular needs that thecompany can serve well Falls between segmenting and one-to one

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Segmentation Bases

Marketers segment markets by

identifying variables(s) that help them

determine whether or not customers willlike their product

Segmentation bases Factors that are utilized to group customers

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Bases for Consumer Segmentation

Demographic Easy to identify and commonly used

But be certain that variable helps determinecustomer needs/preferences

Examples: gender

age

household composition

lifestyle cycle

education

income, etc.

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Geographic

Easy to identify and commonly used

But be certain that variable helps determinecustomer needs/preferences

Examples

country

area of country climate

urban vs. rural, etc.

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Psychological Harder to identify but maybe more insightful

in determining customer needs/preferences

Examples attitudes

knowledge and awareness

wants and needs

affiliations, e.g., political party

traits, e.g., extraversion

expertise and involvement, e.g., hobbies

brand attributes sought, etc.

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Behavioral Cannot directly observe customers

psychology but can observe their behaviors grocery scanner data, etc.

Examples products purchased

user status

media habits

loyalty

frequency of usage, etc.

80/20: 80% of sales come from 20% of customers

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Discussion Question

If you are selling cologne to a segment of

women and sales are flat, how would

you determine which way to expand?

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Targeting

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Marketing Framework

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What Is Targeting & Why Do It?

What is Targeting?

Selecting a market(s) to pursue

Why do it?

Its difficult to be all things to all people

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How to Choose a Target

When choosing target market(s),

marketers should consider

1. The markets fit with the firms capabilities More subjective/challenging to assess

2. The profitability potential of the market

More objective

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SWOT Analysis

Internal Strengths

What do we do well?

Weaknesses

What do we not do well?

Assess firm relative tocompetitors

Utilize the customer point ofview

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SWOT Analysis

External Opportunities

What is occurring inthe external world thatis favorable to us?

Threats

What is occurring inthe external world that

is unfavorable to us?

Created by changes inthe 5 Cs

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Discussion Question

If your firm, represented by Us below, wantsto target the price sensitive market, which

competitor should it be most concerned with?

How would that competitor likely react to your

firm targeting this market?

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Positioning

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Marketing Framework

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What is Positioning?

Positioning: who you are in the

marketplace vis--vis the competition

Determine who you are in the market Then decide who you want to be

Positioning is important It involves all of the marketing mix variables

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Positioning Statement

Positioning statement

Succinctly communicates the parameters of

firms position to different audiences customers

employees

shareholders

general public, etc.

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Writing a Positioning Statement

Address positioning statements to a

target audience

Who are you trying to persuade? Alphatronics is the gym for the serious body

builder

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Writing a Positioning Statement

Keep the statement simple

Encapsulate multiple benefits with a single

word OR Prioritize your benefits and utilize the most

important and compelling in your statement

Be sure to focus on benefits

Ask yourself, why would a customer care?

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Surprising Positioning Statements

Volvo is known for safety but its

positioning statement is

We offer transport solutions to demandingcustomers around the world

Safety may already be so ingrained in

customers minds that it does not need to be

stated

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Dell has issues with customer service

but its positioning statement is

Dell Inc. listens to customers and deliversinnovative technology and services they trust

and value

Customer service is a goal the company is

seeking to attain

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Volkswagons positioning statement

explicitly states the target but not the

USP; it is implied in the statement Drivers Wanted

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Discussion Question

Can you utilize the following format to

develop a positioning statement for your

school? For customers who want(target), our

brandis the best at(USP)

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Marketing Framework

Advance to Marketing Tactics with the 4Ps

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Marketing Framework

Product

Will customers want what your company is

prepared to produce?

Price

Will customers pay what youd like to

charge?

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Marketing Framework

Place

Where and how will customers purchase

your market offering?

Promotion

What can you tell your customers or do for

them to entice them to purchase?

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The Four Ps

MM1 for BM 201

Documents

Transcript of MM1 for BM 201