Welcome to MT- 219 Marketing Seminar

1. Welcome to MT- 219Marketing Seminar Dear Students, The Seminar will start promptly at the Schedule Time. Remember that the system saves a transcript of everything in the Chat, if you wish to talk among yourselves you may do so, or you may use the Private Chat Option. Dr. Nardi

2. Welcome to MT- 219Marketing ……… Unit 4- Seminar Professor: Dr. Nardi

3. Agenda • Greeting & Welcome Back • Review – last week • This week’s Topic: • Marketing Planning, Research and Segmentation • Strategic Planning • SWOT Analysis • Nature and Content of a Marketing Plan • Marketing Plan Criteria • Marketing Research Process • Measuring Marketing Productivity • Segmentation • Levels • Segmenting Customer Markets • Bases for segmenting Business Markets • Market Targeting • Marketing Roundtable • This week’s Question: • “What is the best type of Marketing Research?” • Wrap Up: Q&A Session

4. Announcements • Quiz - Review • Will close on Tuesday at 11:59PM • Mid-Term Survey • Opens on Monday. • Mid-Term Grades • Average of Unit 1-3 Grades • Available to you On Wednesday after Unit 4 Ends.

5. Review of Unit 3 • How did Unit 3 go? Questions or concerns? • Instructor suggestions for Unit 4- Pay particular attention to segmentation for the Unit 6 Research Project • Questions?

6. Review from Last Week • Customer Behavior • The Marketer’s responsibility with Quality • Customer Perceived Value (CPV) • What influences Consumer’s Behavior

7. What Influences Consumer Behavior? Cultural Factors Social Factors Personal Factors

8. Reference Groups Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups

9. Model of Consumer Behavior

10. Types of buying behavior • Routinized response behavior frequently purchased, familiar, lost cost items • Limited Problem Solving behavior unfamiliar brand in familiar category • Extended Problem Solving unfamiliar, expensive or infrequently purchased items

11. 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

12. Kodak offers services that streamline processes for hospital administrators

13. Aramark successfully services institutional and government markets

14. ? Any Questions??

15. Strategic Planning • The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan.

16. Another Look at: Strategic Planning • long-term plans based on the organizations overall business objectives. • Strategic plans are typically multiple years and reach out 5 or 10 years (or more) using Scenarios or other planning methods that identifies Assumptions, Risks, and Environmental factors.

17. Internal - Strengths - Weaknesses External Opportunities Threats SWOT Analysis

18. SWOT - Examples • Strengths • Patents, good brand name, good reputation among customers, good lead times, etc • Weakness • Lack of patent protection, poor reputation among customer, lack of access to key distribution channels, etc. • Flipside of a Strength. • Opportunities • An unfulfilled customer needs, arrival of new technologies, loosening of regulations, etc • Threats • Shifts in customer tastes away from the company’s products, emergence of substitute products, new regulations, increased trade barriers, etc.

19. Marketing Plan • The central instrument for directing and coordinating the marketing effort. • The marketing plan operates on two levels: • The strategic marketing plan lays out target markets and the value proposition. • The tactical marketing plan specifies the product, promotion, merchandising, pricing, sales channels, and service.

20. Strategic Target marketing decisions Value proposition Analysis of marketing opportunities Tactical Product features Promotion Merchandising Pricing Sales channels Service Levels of a Marketing Plan

21. ? Any Questions??

22. Sources of Marketing Opportunities • First is to supply something in short supply. • Second is to supply an existing product or service in a new or superior way. • Third is a totally new product or service.

23. Product Planning • Each product level (product line, brand) must develop a marketing plan for achieving its goals. • A marketing plan is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives.

24. Marketing Plan Contents • Executive summary • Table of contents • Situation analysis • Marketing strategy • Financial projections • Implementation controls

25. ? Any Questions??

26. Customer Driven Marketing Strategy • Four stage process that segments, targets, differentiates and positions a product • Segmentation- Basic Process: Heterogeneous Market  Segmentation  Homogeneous Sub-Markets • Targeting- Selecting the best segments to focus on • Differentiating- Create unique benefits for target segments • Positioning- Placing product into customer’s minds compared to competition.

27. Mature consumers are a rapidly growing market

28. Target Market Segmentation Process • 1. Identify appropriate strategy2. determine segmentation variables3. develop segment profiles4. evaluate segments5. select specific segments

29. Criteria for Effective Segmentation 1. Large enough with profit potential 2. Heterogeneous need for product 3. Segments must be identifiable and divisible 4. Segments must be reachable 5. Segments should be open to comparison

30. ? Any Questions??

31. Effective Targeting Requires… • 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.

32. Major Segmentation Strategies • Undifferentiated– single product and single strategy for entire market – requires homogeneous market • Concentrated – Single segment , one strategy * major advantages include specialization and the ability to compete * major disadvantage – “all eggs in one basket” • Differentiated – two or more segments each with its own marketing mix * major advantages include potentially higher sales and absorption of excess production capacity * Major disadvantage is cost

33. ? Any Questions??

34. Levels of Segmentation • Mass Marketing • Segment Marketing • Niche Marketing • Local Marketing • Customerization

35. Ford’s Model T Followed a Mass Market Approach Click Here

36. Segment Marketing Targeting a group of customers who share a similar set of needs and wants.

37. Niche Marketers Enterprise Rent-a-Car targets the insurance- replacement market Click Here

38. Examples of Market Customization

39. ? Any Questions??

40. Segmenting Consumer Markets Geographic Demographic Psychographic Behavioral

41. Geographic Variable • Climate • Terrain • City size • Urban/rural values • Market Density • Geodemographic Segmentation • Micromarketing

42. Age Gender Race Ethnicity Income Education Occupation Family size Family life cycle Religion Social class Sexual orientation Demographic Variables – closely related to needs and measurable

43. Demographic Segmentation Age and Life Cycle Life Stage Gender Income Generation Social Class

44. GI Generation 1901-1924 Silent Generation 1925-1945 Baby Boomers 1946-1964 Generation X 1965-1977 Generation Y 1978-1994 Millenials 1995-2002 Profiling American Generations

45. More on American Generations - Links • America Generations: • http://www.timepage.org/time.html • http://crab.rutgers.edu/~goertzel/generations.htm • http://poptop.hypermart.net/generation.html

46. Psychographic Variables • Social class • Lifestyle • Achievers • Strivers • Survivors • Personality • Compulsive • Romantic • Authoritarian • Enthusiastic

47. Behavioral Segmentation Variables • Most Powerful Variables • Underlies all other segmentation variables • These relate most directly to consumer desires • How the product benefits the consumer directly • Examples- • Occasions • Loyalty • Usage rates

48. Decision Roles Initiator Influencer Decider Buyer User Behavioral Variables Occasions Benefits User Status Usage Rate Buyer-Readiness Loyalty Status Attitude Behavioral Segmentation

49. Psychographic Variables • Personality • Motivation • Lifestyle • Activities • Interests • Opinions

50. ? Any Questions??