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

Welcome to MT- 219Marketing

Welcome to MT- 219Marketing

Unit 4- SeminarProfessor: Dr. Nardi

Unit 4- SeminarProfessor: Dr. Nardi

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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

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.

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?

Review from Last Week

• Customer Behavior• The Marketer’s responsibility with Quality

• Customer Perceived Value (CPV)• What influences Consumer’s Behavior

What Influences Consumer Behavior?

Cultural FactorsCultural Factors

Social FactorsSocial Factors

Personal FactorsPersonal Factors

Reference Groups

Membership groupsMembership groups

Primary groupsPrimary groups

Secondary groupsSecondary groups

Aspirational groupsAspirational groups

Dissociative groupsDissociative groups

Model of Consumer Behavior

Types of buying behavior

• Routinized response behaviorfrequently purchased, familiar, lost cost items

• Limited Problem Solving behaviorunfamiliar brand in familiar category

• Extended Problem Solvingunfamiliar, expensive or infrequently purchased

items

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

Kodak offers services that streamline

processes for hospital

administrators

Aramark successfully services institutional and government

markets

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Any Questions??

Strategic Planning

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

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.

SWOT Analysis

• Internal

- Strengths - Weaknesses

• External

–Opportunities

–Threats

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.

Marketing Plan

– The central instrument for directing and coordinating the marketing effort.

– The marketing plan operates on two levels:

1. The strategic marketing plan lays out target markets and the value proposition.

2. The tactical marketing plan specifies the product, promotion, merchandising, pricing, sales channels, and service.

Levels of a Marketing Plan

• Strategic– Target marketing decisions

– Value proposition– Analysis of marketing opportunities

• Tactical– Product features– Promotion– Merchandising– Pricing– Sales channels– Service

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Any Questions??

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.

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.

Marketing Plan Contents

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls

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Any Questions??

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.

Mature consumers

are a rapidly growing market

Target Market Segmentation Process

• 1. Identify appropriate strategy2. determine segmentation variables3. develop segment profiles4. evaluate segments5. select specific segments

Criteria for Effective Segmentation

1. Large enough with profit potential2. Heterogeneous need for product3. Segments must be identifiable and divisible4. Segments must be reachable

5. Segments should be open to comparison

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Any Questions??

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.

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

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Any Questions??

Levels of Segmentation

• Mass Marketing• Segment Marketing • Niche Marketing• Local Marketing• Customerization

Ford’s Model T Followed a Mass Market Approach

Click Here

Segment Marketing

Targeting a group of customerswho share a similar set of

needs and wants.

Niche Marketers

Enterprise Rent-a-Cartargets the insurance-replacement market

Click Here

Examples of Market Customization

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Any Questions??

Segmenting Consumer Markets

GeographicGeographic

DemographicDemographic

PsychographicPsychographic

BehavioralBehavioral

Geographic Variable

•Climate•Terrain•City size•Urban/rural values•Market Density•Geodemographic Segmentation•Micromarketing

Demographic Variables – closely related to needs and

measurable• Age• Gender• Race• Ethnicity• Income• Education

• Occupation• Family size• Family life cycle• Religion• Social class• Sexual orientation

Demographic Segmentation

Age and Life CycleAge and Life Cycle

Life StageLife Stage

GenderGender

IncomeIncome

GenerationGeneration

Social ClassSocial Class

Profiling American Generations

• GI Generation– 1901-1924

• Silent Generation– 1925-1945

• Baby Boomers– 1946-1964

• Generation X– 1965-1977

• Generation Y– 1978-1994

• Millenials– 1995-2002

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

Psychographic Variables

• Social class• Lifestyle

– Achievers– Strivers– Survivors

• Personality– Compulsive– Romantic– Authoritarian– Enthusiastic

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

Behavioral Segmentation

Decision Roles• Initiator• Influencer• Decider• Buyer• User

Behavioral Variables

• Occasions• Benefits• User Status• Usage Rate• Buyer-Readiness• Loyalty Status• Attitude

Psychographic Variables

• Personality• Motivation• Lifestyle

– Activities– Interests– Opinions

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Any Questions??

Which Segment Variables to Use?

• Marketers are not likely to use just one segment variable

• Market segments often combine multiple variables together to create a desirable target segment

• Which variables might be combined to create a segment for-– Harley Davidson Motorcycles/– Prada Shoes?

Positioning• Where the product lives in the mind of the consumer as it relates to the competition

• Identify and select appropriate competitive advantages for the product

• Combine competitive advantages to develop an overall positioning strategy– More for More– More for the same– More for less– The same for less– Less for much less

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Any Questions??

Segmenting for Business Markets

DemographicDemographic

Operating VariableOperating Variable

Purchasing ApproachesPurchasing Approaches

Situational FactorsSituational Factors

PersonalCharacteristics

PersonalCharacteristics

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Any Questions??

What is a Product?Anything that is offered to a market to fulfill a need or want

goodserviceideaplaceperson

Classifying Consumer Products

• Convenience – relatively inexpensive, frequently purchased items with many substitutes. Don’t confuse with a convenience store.

• Shopping – items for which buyers are willing to spend considerable effort to compare and purchase. Don’t confuse with what you buy when just shopping

• Specialty - products with unique characteristics for which consumers are willing to expend effort

• Unsought – items people do not know of or do not think about buying. Many times due to emergency needs. Also, many impulse items.

Services Intangible products involving a deed, performance, or effort that cannot be physically possessed

•Haircuts•Concerts•Tax preparation•Annual doctors’ physicals

Nature of Services• Intangibility• Inseparability• Variability• Perishability

Let’s look at these individually

Issues related to service intangibility

• Difficult for customers to evaluate

• No physical possession• Difficult to advertise and display

• Pricing is problematical and subjective

• Service process not always protected by patents

Issues related to service inseparability• Does not allow for mass production

• Customer participation required• Other customers can affect process

• Difficult to distribute

Issues related to variability

• Quality difficult to control• Standardization is a problem• Services vary from provider to provider

• Services can vary from the same provider

• Reputation is crucial• Franchises try to emphasize service homogeneity

• Reason for grading rubrics

Issues related to service perishability

• Services cannot be stored or inventoried

• Unused capacity is lost forever• Demand may be time sensitive• Balancing supply and demand is difficult

Branding- Brand Equity

The marketing and financial value associated with a brand’s strength in a market

brand name awarenessbrand loyaltyperceived brand qualitybrand associations

Selecting a Brand Name

• Easy to pronounce, spell and remember

• Trademarkable• Distinctive• Conveys brand benefits• Travels globally- Big concern today

Types of Brands

• National (Manufacturer’s) brands

• Store (Private) brands

• Licensing

Brand Development

Line extensions- new forms, sizes, fragrances, etc are created in

existing product line

Brand extensions – use of existing brand on a new category, such as extending from a rock singer into

acting

Multibrands- use of different brand names by one company. Nestle or

Proctor and Gamble

New Brands- Creating entirely new brands

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Any Questions??

Instructor’s suggestions for Unit 4 Readings

Chapter 6 and Chapter 7 Make sure you understand the major segmentation variables?: Demographic, Geographic, Psychographic

and Behavioristic Variables.

Discussion Graded Assignment Watch the Discussion Introduction Video

This week we’ll Discuss the characteristics or variables that could be used to segment the market.

Take a look at the P&G site and the following product categories: Deodorant, Baby Care, Health Care, Bodywash & Soap, Oral Care, Household Cleaners, Haircare,

Shaving, Pet Nutrition.

Question: Discuss the characteristics or variables that could be used to segment the market. Be sure to

discuss some characteristics from each of the four major variable groupings. Provide a brief explanation for your choices and use specific examples where appropriate.

Using the assigned products listed in the Discussion Introduction; discuss the characteristics or variables that could be used to segment the market. Be sure to discuss some characteristics from each of the four major variable groupings. Provide a brief explanation for your choices and use specific examples where appropriate.

1 Response & 2 peer to peer comments. Post on 3 days. (for full points). Primary post by Saturday (for full points). Response - 100 Words (minimum)

Assignment

Umpqua Bank Watch the "Umpqua Bank" Video Case.

The video will take approximately 5 minutes to view.

Visit Umpqua Bank at www.umpquabank.com

Template Available: Answer the questions in a double spaced paper, no more than three pages long, and submit it to the Dropbox.

This Assignment must be completed in Microsoft Word format.

For some of the questions in this Assignment, you will have to review your reading from Unit 3.

Simulation

Segmentation Simulation Theory Application. In this simulation, you need to select the segmentation variable or variables that are being used in each situation.

As you will see, sometimes only one is being used, but there are sometimes multiple variables that need to be selected.

You will be using this knowledge in your Research Project in Unit 6 when you segment the market for the brand you selected in Unit 2.

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Any Questions??

Wrap Up

• Do your readings. • Discussion: Remember you have to Answer ALL

questions / elements of the Question.– Do NOT Neglect the Peer-to-Peer comments.

• Remember you have assignments due this week.– Due on Tuesday by 11:59 PM E.T.– Discussion, Simulation & Written Assignment

Contact you can contact me through my email: nnardi@kaplan.edu , through AOL Instant Messaging my AOL IM name is nknardi, (put me on your buddy list) my AOL IM “Office hours” are: Tuesdays 8:00-10:00 pm Eastern Time

or through the “Instructor’s Office” link under the

Course Home page

Thanks

• Thank you for Attending!!!!

• See you in the Discussion Thread Questions and in Next Week’s Seminar

Marketing Shoptalk Discussion:

What is the best type of Marketing Research?