Marketing And business Strategy Flashcards
Kotler-importance of mkt:
Getting the right product to the customer at the right price and at the right time.
Strategic mkt Vs Tactical mkt
- Strategic-tied in with corporate strategy by identifying which products and markets the company wishes to operate in(eg waitrose in a new wealthy area)
- Tactical -focused on short term ànd on particular elements of mkt mix
Role of Mkt: (Pg 296 nb)
Marketing :
- Identify
- Anticipate
- Supply
satisfactions (customer needs+orgs obj) to facilitate mutually beneficial exchanges.
Brassington and Pettit-Marketing concept:
A belief system.
It can be incorporated into the culture of the org.
Culture involves beliefs and patterns of behaviour.
Customer oriented-often found in mission statement-little basis .
Real customer focused-seeks out gaps in the market-produces products where the org or the competitors fail to meer customers needs.
Brassington and Pettit-
Marketing orientation VS product orientation
- Product orientation-max quality ,min cost.Main task of Mgt is to pursue :improved production and distribution efficiency .
- Mkt orientation:approach to business that centres its activities on satisfying the needs and wants of its customers-actual practices.
Mkt orientation vs Product orientation
-
Mkt orientation
1. Determine customer needs
2. Invest resources
3. Make product
4. Market the product
5. Market feedback -
Production orientation
1. Determine whether goods can be made/serv delivered
2. Invest resources
3. Make product
4. Sell the product
Sales orientation
- Make the product and actively and agressively sell it.
- Good sales force can sell anything to anybody.
Pull Vs Push Mkt:
- Push-goods are pushed to resellers and consumers.Product promotion is by the final seller in the value chain .
- Pull-produce a product that consumer s demand will pull into retail outlets.Promotion between manufact and final seller.
3 dimensions of Mkt:
- culture-focus on customer
- Strategy- markets and products
- Tactics -7ps of mkt mix
Mkt environment-factors on performance of the business(3).
- Macro environment(pestel)-out’of org s control
- Micro environment-factors specifically related to the org such us suppliers and customers.
- Internal environment-factors within the org ( assets ,empl,finance)
Pestel factors -impact markets and customers.
POLITICAL(change gvt/policies-instability)➡️consumer s conf/buying pow/rights)
ECONOMIC (gdp, inflation,interest rates,exchange rates,prosperity to save)➡️uncertainty more saving than buying
SOCIAL/CULTURAL(values/beliefs
/composition of population)➡️demographic factors-purchasingnpower/products-high status@culture important acceptance for mkt messages)
TECHNOLOGICAL(products processes working methods ways of distrib,communication methods)
ECOLOGICAL(organic prod/disasters)
LEGAL FACTOrs-customer s rights
Using a Swot analysis-2 ways
- Develop resource based strategies-enable company to extend use of strengths (common in retailing)
- Develop positioning based strategies-identify available opportunities and what the firm has to do to exploit them
Relation of coorporate planning-mkt strategy pg 198 ob
- set objectives {org as a whole vs products and market}
- Internal appraisal(strengths and weeknesses) [effectiveness of different aspects of org vs mkt audit]
- External appraisal(opp threats) {peste factors vs environmental factors affect consumers markt products}
- Gaps(desired obj-forecastvs less well in particular markets focus on growth)
- Strategy-{diversifying enrering new markeys VS resources allocation and identification ,target market,customer needs products ,match products with customers}
- Implementation [delegate to dpts vs Action eg advert space]
- Control{review results and act vs market obj achieved?}
Mkt definition-chartered institute of Mkt
- Management process which Identifies anticipates and supplies Customer requirements efficiently and profitably
(Wide scope-stresses customer satisfaction)
Kotler-Mktg Plan
It must be consistent with the corporate strategy :
- Executive summary (main goals -recommendations)
- Situation analysis-(Swot anal and forecasts)
- Objectives and goals(what it needs to achieve in terms of market share)
- Mkt startegy(target markets,mkt mix,mkt exp) 5.Strategic mkt plan(3-5 y or more/scope of product and market activ,match activ to distinctive competences of the org)
- Tactical Mkt plan(1y ,existing mark -prod,mkt mix issues)
- Action plan-how the strategies are to be achieved 8.Budgets
- Controls-progress of the plan and the budget
Marketing elements and corporate planning elements (pg 304 nb) -cycle
@Corporate startegy -elements
- competitive environment-int and ext factors 2.mission
- coorporate objectives
- startegy dvt/market specific strat/resourc allocation *position audit
@Mkt strategy
- Mkt objectives
- Mkt mix @ Mkt expenditure
- Tactical implementation
- sales Obj-sales force strat-tact implement 6.Advertising obj-adv str-Tact implem *Mkt audit
What is market research?
Process of :
- gathering,
- recording,
- analysing
- reporting data and info related to company s market,customers and competitors.
Typically used to: Determine the characteristics of markets,suggest opportunities for products and selling approaches and suggest segments.
Market research plan-steps
- Defining the issue (Eg explain fall in sales,potential demand for product,attitudes to the brand,consumer needs)
- Developing hypothesis to be tested and the purpose of the research.
- Collecting data
- Analyse and interpret data
- Report the findings
Secondary data
- Not for a specific research purpose-
- cheaper to collect
- guide primary research
SOURCES
- Internal:
- existing IS
- accounting data
- customer databases
- data produced by other dpts
2.External:
- Published statistics from government-
- review of journals-
- by market research agencies
Primary data
- Questionnaires
- Experiment (beta,samples)
- Observation
- Unstructured interviews
- Depth interviews(attitudes and motives unconscious)
- Projective techniques(unconscious motives-inkblot test -word association-thematic apperception tests)
- Focus groups
(He questioned the unstructured experiment by observing in depth with projective focus.)
Forecasting Current demand-factors
- Total market potential
- Area Market potential
- Total industry sales
- Relative market shares
Forecasting sales(income) demand (step by step):
- Macroeconomic forecast
- industry sales forecast(based on 1)
- company sales forecast-expectations on market share
- Demand forecast based on 3 types of info:
- customers doing in the market (industry +company sales data)
- customers intentions(surveys ect)
- past sales analysis
5.Income forecast(based on info above)
Intentions of customers,how do we find out?
- Market tests
- Survey of buyers intentions
- Sales force opinions(might forecast low sales to lower their targets in cotrast to mkt execs)
- Expert opinions
Past sales analysis
- trends
- seasonal or cyclical factors patterns
- likely competitor activity
- sales and mkt campaigns
Sales potential
- essentiality
- overall mkt size
- competition
- delay purchasing(luxury items)
- price
- promotional expenditure(broaden the mkt)
Market segmentation-definition ,reason:
Reason Market-potential buyers with different needs and different buying behaviours.
Definition market segmentation-
- subdividing the market Into distinct and homogeneous subgroups of customers where any subgroup can be selected as a target market to be met with a distinct mkt mix.
Bases for segmentation:
- Sometimes 2 or more bases may be used
- One segmentation variable superior to another
- Simple segmentation:
- Age
- Gender
- Ethnicity
- Nationality
- Religion
- Geographical area
- Education
- Occupation
- End use(work or leisure)
- Level of income
- Social class
- Buyer behaviour 13.Lifestyle(motivation,culture,personality)
Lifestyle categories:
- Upwordly mobile-ambitious(affluent lifestyle,more interesting job,higher material standards,will try new products)
- Traditional and sociable (conformity to group norms -social approval and reassurance)
- Security and status seeking(status -income-security-strong and well known brands)
- Hedonistic preference(now better than future)
Segment validity-is it worth designing and developing a unique mkt mix?
General rule: substantial accessible measurable
- Can the segment be measured?(by market research-eg conservatism?)
- Is the segment big enough?
- Can it be reached?(via promotion and distrib channels)
- Do segments respond differently?
- Can the segment be reached profitably? (Needs cost less than cost to satisfy)
- Is it suitably stable?
Benefits of market segmentation:
- New mkt opportunities-better understanding of customer needs
- Specialists can be used for major segments (Effective mkt systems)
- Optimised ROI-total mkt budget allocated proportionally to the likely return
- Small adjustments to products and promotional aspects(efficient use of resources)
- Dominate particular segments-comp advant
- Product range-reflect differences in customer needs
(A specialist product range with small adj and promo ,Dominated with Optimised Roi bringing new market opportunities)
Target markets-policy options
- Mass -single product-ignore segmentation(cost leaders,differentiation strategy with a single market)
- Concentrated mkt-ideal product for a single sengment-a focus strategy by cost or differant)
- Differentiated mkt-several product versions at different market segment(-mkt and production costs-multi focus strategy)
Positioning-definition-positioning variables
Definition: how customers perceive a brand or product relative to other brands or products. Companies want to achieve a clear unique positive position(cheapest supermarket ).
- products similar-key is distinction in customer s mind
- positioned in relation to competing products and companies.
- People remember number 1-product should be positioned as number 1 in relation to a positioning variable:
- Attributes(size)
- quality/price
- user
- application/use
- benefits
- product category
- image
Developments in market segmentation and product positioning:
- growing awareness that users should be segmented according to purpose of segmentation.
- growing interest in customer database analysis-data mining
- growing Emphasis on segm by soft data (Attitudes and needs and lifestyles)
- sub segmentation or hybrid segmentation
- Computer models are used-discover suitable additions to a product line
Ansoff matrix-risks attached to each strategy:
- Market penetration -Increase sales in exising prod in Existing markets
- Market development-Expansion in to new markets using existing products
- Product dvt-redesign /repositioning or introduction of completely new ones in existing markets
- Diversification-New products in new markets
What is Marketing?
Is the process of planning and executing the concepts of pricing,promotion,distribution of :
- ideas
- goods
- services
in order to satisfy ind and org objectives.
Industrial segmentation
- Location
- Ordering characteristics(frequency,size)
- Company characteristics(type,marker,size)
- Expectations(reliability,quality ect)
Porter’s potential positioning strategies:
- Cost leadership : Low cost ,broad market
- Differentiation: High cost,broad market
- Cost focus: Narrow target,low cost
- Differentiation focus: Narrow target,High cost
Perceptual mapping( pg 316 nb)-what does it involve?
- Using customers perception of brands to map out how the market is currently serviced.
- Any gaps in the market could be used to deploy new products or reposition existing ones.
- Critical success factors :price and quality
