5. Marketing (40%) Flashcards
What is marketing?
Create something Unique and valuable and Convince people to buy it
an integrated system of activities designed to plan,
price, promote and distribute, want-satisfying goods and
services to present and potential customers
1 Key to successful marketing
- Understanding the customer
- provide a unique benefit that is wanted or needed by the customer (that the competition doesn’t provide+)
-This relates back the marketing definition: providing a want satisfying good or service
What is your target market?
determining your target market
- the group(s) of customers/customer segments to whom you wish to direct your product toward
- they are a group of customers whose needs have NOT been sufficiently met by the competition
What is the first step to locating a target market?
- Bases for segmentation
What are the bases of segmentation?
State of being:
Geographic -segmenting by region, population size, population density, climate
Demographic -segmenting by age, gender, income, education, household size, etc.
State of mind:
Psychographic -personality and lifestyle, AIO (activities, interests, opinions)
Product usage:
Volume -Usage rate, user status, readiness to buy
Benefits sought -benefits provided by the good or service. It is what the product Will Do for the consumer.
RECAP of steps to perform benefits segmentation
- segment on basis of benefits
- describe using other bases (demographics vs psychographics)
- name the other segments
Step 2 of locating a target market?
Perceptual Mapping and Preference Analysis
What is the purpose of perceptual mapping and preference analysis
-determine which of the segments will be the target market
-by finding the biggest gap between
how the customer perceives the competition meets their needs (perceptual map)
and what they really want (preference analysis)
-needs not met by competition
Steps
- draw axes representing important dimensions/criteria by which customers perceive and evaluate different offerings
- plot positions of competing products (according to customer perceptions) (perceptual mapping)
- locate each segment’s ideal product (preference analysis)
- determine the target market
Positioning
- find a distinct position for your product in the customers mind
- the position should communicate that the product provides a unique benefit
- position the product in the target’s mind (perception) as close to their ideal as possible (preference)
2 approaches to positioning
consumer approach: how well does your position fit with the target market’s ideal offering?
competitive approach: how does your offering compare to competitors?
2nd key to successful marketing
Convince the customer that the product provides that unique benefit, through your product, pricing, promotion, and distribution/place decisions
The 4 Ps are integrated/consistent system of activities
All parts of organization must have clear idea of unique benefit, the value proposition
-should be a clear concise statement of the products unique benefits-acts as a glue that keeps decisions consistent
What are the product classifications?
Convenience Good/service
Shopping good/service
Specialty good/service
Unsought good/service
What are convenience goods/services?
Staples -branding, max exposure, shelf position
Impulse -max exposure, shelf position, point of purchase
Emergency -near point of purchase, readily accessible
What are the types of shopping goods?
Homogenous -exposure for price comparison
Heterogeneous -exposure near similar products
Specialty goods/service
selective distinction for exclusivity (Rolex watch)
Unsought good/service
aggressive promo, personal selling (life insurance)
Implications of product classifications for market strategy
different markets classify products differently so it’s important to see your product as your customer does. For example, unsought goods can require heavy advertising, this might imply selective distribution
What is the Total Product Concept?
physical features needed to support Value Proposition, but not sufficient
remember: product as defined by value proposition is “what you offer…that helps customer complete either functional, social, or emotional jobsor helps them satisfy basic needs”
Its a total package of benefits as seen from the eyes of the consumer, the experience they have with the product
What is the total package of benefits that the customers experience the product through?
Brand Packaging Service Warranty Delivery Credit Atmosphere Image/reputation Accessibility Price
What is a brand?
- a collection of perceptions in the mind of the consumer
- a brand is built not only through effective communications or appealing logos
- it is built through the Total experience that the product offers
Brand names communicate value proposition
Creating Brand Insistence: the 5 drivers
Emotional connection: does your brand connect with people on an emotional level?
Value:
does your brand deliver good value for the price?
Accessibility:
Do customers and potential customers perceive your brand to be convenient?
