Marketing Strategy, Opportunity Analysis, and Segmentation Flashcards
What is marketing?
The creation and satisfaction of demand for a product or service
What is strategy?
A set of ideas that outline how a product line or brand will achieve its objectives.
Target Market
groupof customers a company wishes to reach
The marketing mix
controllable variables the company uses to satissfy the target group
5 Cs customers
potential buyers with wants and needs that the company aims to fulfill with it’s offerings
-consumer - business buyer
-customer - non-business buyer
-customers are the focal point
5 Cs company
organization or business unit providing certain goods or services
-look internally to define positioning, messaging, differentiators, capabilities, etc.
-awareness of competition ( not mutually exclusive)
5 Cs Competitors
organizations that offer products or services that satisfy the same wants and needs to the same customers as the companies offering
-competitive matrix
-porters 5 forces
-attempting to create products and services that customers percieve as different from those provided by others
5 Cs Collaborators
External business entities that work with the company to create value for customers
ex:
-raw material suppliers
-distributors
-marketing agencies
-3rd party retailers
SUGAR
-supply nabisco, dr pepper, etc
TV
-depends on retailers like target, costco, etc
5Cs Context
environment in which the company operates and it’s associated elements
-regulations or laws
-economic conditions
-cultural norms
-technological factors
PESTEL Analysis:
Political, Economic, Social, Technological, Environmental and Legal Factors
Competitive Advantage
A marketing mix the target customer sees as better than the competition’s mix
Breakthrough Opportunities
Difficult to copy Profitable for a long time
Marketing-oriented Manager
sees everyone as different and practices “target marketing”
Production-oriented manager
sees everyone as basically similarand practices “mass marketing”
Market Penetration
-aimed at increasing a company’s share of existing products in its current market
Drive increased sales of currentproduct in existin gmarkets *Enhance customer relationship (LTV)
Product Development
-involves expanding into new markets with existing products.
-New/Unique benefits
-Create newmarket(s)
Customer Lifetime Values (LTV)
relationships that develop satisfied customers + time= return business
4 p’s price
-price objectives
-price flexibility
-price over the life cycle
-discounts and allowances
-geographic pricing terms
-competition
What are the 4 p’s of marketing
Product, Place, Price, Promotion
4 p’s Product
-physical characteristics
-warranties
-application benefits
4 p’s place
-get the right product, to the right consumer, in the right place, at the right time, in the right quantity, and in the right condition
4 p’s promotion ( 3 types)
Informing and selling the customer
-personal selling
-direct to consumer
-product service
mass selling
-advertising - paid
-publicity - unpaid
sales promotion
-stimulate interest
-encourage trial or purchase
External Marketing Environment
-cultural and social environment
-political and legal environment
-technological environment
-economic environment
PESTEL Analysis
Direct Marketing environment
-resources and objectives of the firm
-customers
-competitive environment
-PORTER Internal Analysis
what is swot and what is it used for?
In marketing, SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis is a strategic planning tool that helps businesses evaluate their current business model and identify areas for improvement.
monopoly
1 company serves entire customer base
-rare in us
Examples of Company resources
-financial strength
-production flexibility
-R&D
-channel relationships
-loyal customer base
-new product capability
monopolistic competition
companies use marketing and advertising to differentiate their products and increase profits
pure competition
large # of firms compete w/ similar or comodity type products
-price usually deciding factor b/c customers see little different between options
oligopoly
small # of companies control market
Key Economic forces
-global economy
-rapid change
-interest rates
Characteristics of political environment
-trade policy
-labor law
-political stability
Legal environment
-fda
-consumer product safety commission (cpsc)
Cultural and social environment
-health conciousness
-demographic data
What is segmentation?
An aggregating process that clusters people with similar wants and needs into a market segment
Segmenting vs combining?
-segmenting develops a different marketing mix for each segments
-combining aims at 2 or more submarkets with the same marketing mix
criteria for determining segments
- People in the segment are roughly alike, along some important consumer dimension(s).
- People in the segment are different from people in other segments.
- The segment is large enough to be profitable.
- The segmenting dimensions should be useful for identifying customers and designing the marketing mix.
- If chosen to pursue: the company has the resources available to adjust its marketing mix to appeal to each segment
Generic vs product
Generic - market w/ broadly similar needs and many different ways to satisfy them
product- very similar needs and similar options
What is a companies market?
a group of potential customers with similar needs that are willing to pay, and sellers offering various goods and services to satisfy them
Problems with product oriented approach
could focus too much on product and ignore customers. if they don’t buy want it doesn’t matter how good your product is
Broader market definitions
broadening market defitinitions can expand opportunities. too broad and you’re spread too thin
Demographic dimensions
-income
-sex or age
-family size or family life cycle
-occupation or education
-ethnicity or social class
Geographic dimensions
-region of world, country
-region of country
-size of cityB
Behavioral Dimensions
-needs
-benefits sought
-thoughts
-rate of use
-purchase relationship
-brand familiarity
-kind of shopping
-type of problem-solving
-information required
what factors are used when Segmenting business markets
-kind of relationship
-purchasing methods
-type of buying situation
-typeof customer
-demographics
-how customers will use the product
Qualifying dimensions
-relevant to including a customer type in a product market
-helep identify core benefits
Determining Dimensions
-affect the customers purchase of a product or brand
-can be further segmented
Analytical techniques for segmentation
-clustering
-customer relationship management (CRM)
What are the core components of marketing strategy?
target market, marketing mix
What are the 5 customer personas?
-Demographic
-Geographic
-Psychographic
-Behavioral
-RFM (Recency, Frequency,Monetary)
Single target marketing approach
-you have a single segment with a single marketing mix
Multiple target marketing approach
-multiple segments with multiple different marketing mix
Combined marketing approach
-you have mutliple submarkets with the same marketing mix
What types of activities are considered marketing?
-advertising
-researching which products are popular with consumers
-determining how much can be sold at what price points
-selling products to customers in person
What is Marketing?
the creation and satisfaction o fdemand for a product or service
Strategy
a set of ideas that outline how a product line or brand will achieve it’s objectives
tactic
a specific action or method that contributes to achieving a goal
external vs direct marketing environment
the external market influences the direct market, impacting how you can “do” marketing
what is marketing all about?
it’s about satisfying customer needs better than the copetition for the long term
Psychographics, or lifestyle analysis
-used to help assess personalities
-Activities identify what people do and are objectively observable
-Interests tend to create stronger drives that may pinpoint market opportunities.
-opinions are the ways in which people feel about things.
Quantitative Market Research / Analysis
is a technique to ask questions to the target audience in an organized manner using surveys, polls or questionnaires.
publicity
mass selling that avoids paying media costs
unpaid, non-personal presentation of ideas, goods, or services. It also includes creating and placing content on the web, for customers to find or pass along to others
Mass selling
communicates with large numbers of customers at the same time.
advertising
is a paid form of non-personal presentation of ideas, goods, and services by an identified sponsor.
You’ll often hear about earned media
-other entities, consumers, media outlets, and so forth, will begin to talk about the organization’s offerings.
Sales promotions
-promotion activities other than advertising, publicity, and personal selling that stimulate interest, trial, or purchase. -Oftentimes facilitated through discounts, free product trials, coupons, etch.
-the key is to stimulate interest, trial and purchase.
Personal selling
is direct, spoken communication between sellers and potential customers.
Sometimes this involves customer service, a personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase.
psychographic profiling
-lifestyle
-values
-attitudes
-personality
mass marketing
we’re offering a single marketing mix combination to everyone.
