25470009 Marketing Process

8/8/2019 25470009 Marketing Process

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Marketing processMarketing process


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Marketing processMarketing process


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1. Marketing strategies and

objectives

1. Marketing strategies and

objectives

The company first identifies its strategic aims and developvision and mission accordingly, they then decide which

marketing strategies to go for and more specifically, what

objectives are then needed to achieve those strategies

effectively.


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2. Scanning micro and macro

environment

2. Scanning micro and macro

environment Micro environment: The actors close to the company thataffect its ability to serve its customers --- the company, the

suppliers, marketing intermediaries, customer markets,

competitors and publics.

Macro- environment: The larger societal forces that affectthe micro- environment --- demographic, economic, natural,

political and legal, technological and cultural environment.


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Pest Analysis- Political and Legal

environment

Pest Analysis- Political and Legal

environment The political and legal arena has a huge influence upon the

regulation of businesses, and the spending power of

consumers and other businesses. You must consider issues

such as:

1.How stable is the political environment?

2.Will government policy influence laws that regulate or tax

your business?

3.What is the government's position on marketing ethics?

4.What is the government's policy on the economy?

5. Does the government have a view on culture and religion?

6. Is the government involved in trading agreements such as

EU, NAFTA, ASEAN, or others?


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Pest analysis: Economic

Environment

Pest analysis: Economic

Environment

Marketers need to consider the state of a trading economy in

the short and long-terms. This is especially true whenplanning for international marketing. You need to look at:

1. Interest rates.

2. The level of inflation, Employment level per capita.

3. Long-term prospects for the economy Gross DomesticProduct (GDP) per capita, and so on.


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Pest analysis: Socio cultural

Environment

Pest analysis: Socio cultural

Environment The social and cultural influences on business vary fromcountry to country. It is very important that such factors are

considered. Factors include:

1.What is the dominant religion?

2.What are attitudes to foreign products and services?

3.Does language impact upon the diffusion of products onto

markets?

4.How much time do consumers have for leisure?

5.What are the roles of men and women within society?

6.How long are the population living? Are the older

generations wealthy?

7.Do the population have a strong/weak opinion on green

issues?


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Pest analysis: Technological

Environment

Pest analysis: Technological

Environment Technology is vital for competitive advantage, and is a majordriver of globalization. Consider the following points:

1. Does technology allow for products and services to be made

more cheaply and to a better standard of quality?

2.Do the technologies offer consumers and businesses more

innovative products and services such as Internet banking,

new generation mobile telephones, etc?

3.How is distribution changed by new technologies e.g. books

via the Internet, flight tickets, auctions, etc?

4.Does technology offer companies a new way to

communicate with consumers e.g. banners, Customer

Relationship Management (CRM), etc?


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3. Marketing intelligence and

marketing research

3. Marketing intelligence and

marketing research Marketing intelligence: The systematic collection and

analysis of publicly available information about competitors

and developments in marketing environment.

Marketing research: The systematic design, collection,analysis and reporting of data relevant to a specific marketing

situation facing an organization. Such as evaluation of

customer satisfaction, retention, loyalty, buying behavior of

customers etc.


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The marketing research processThe marketing research process

Defining the

problems and

research

objectives

Interpreting and

reporting the

findings

Implementing

the research

plan---collecting

and analyzing

the data

Developing the

research plan for

collecting

information


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Defining the problems and

research objectives

Defining the problems and

research objectives Marketing managers and researchers must work closely to findout and then write problem statements and objectives of the

study.

The marketing manager may know that something is wrong

without knowing the specific causes.

After the problem is clearly identified, the manager with

researcher then set the research objectives.

The objectives can be met by using three types of research

-- Exploratory research (to gather preliminary information to help defineproblems and suggest hypothesis)

-- Descriptive research (to describe marketing problems, situations or

markets e.g. potential for a product or the demographics and attitudes of

customers.

-- Causal research (to test cause and effect relationships)


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Developing the research plan

collecting and analyzing data


collecting and analyzing data After clearing defining goals and objectives, the next step isto find ways to collect and analyze the information needed.

Two ways can normally be used to collect the required

information.

1. secondary information

2. primary information

Secondary information: The already available informationcan be used to meet the research objectives. Companys

internal databases and many external sources i.e business

information providing organizations, government agencies,

internet data etc can be used to know about the demographic

changes, buying patterns, preferences and behavior etc.


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collecting and analyzing data


collecting and analyzing data Primary information: if the information collected isnt

sufficient, managers usually go for primary data collection i.e.

to collect data that doesnt exist before and you get it first

hand.

Research

approaches

--- observation

--- survey

--- experiment

Research

instruments

--- Questionnaire

--- Interview

--- focus groups

Sampling plan

--- sampling unit

--- sampling size

--- sampling

procedure

Contact methods

--- Mail

--- Telephone

--- Personal

--- online


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Implementing the research planImplementing the research plan

The next step is to put the research plan into action by

collecting the secondary and primary data.

The researcher and marketing manager must understand and

avoid the problems that can cripple the research in any way.

The problem can occur in data collection as the respondents

may give the biased opinion that can lead to falsified results.

The information collected must be analyzed, tabulated and

passed through certain statistical tests.


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Interpreting and reporting the

findings

Interpreting and reporting the

findings

The market researcher must then interpret the findings, draw

conclusions and report them to show to the management.

The management must then analyze its reliability, correctness

and must avoid biased and what we expected results.

The true picture can actually leads towards effective decision

making


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4. Analyzing consumer behavior4. Analyzing consumer behavior

The buying behavior of final

consumers-individuals and households

who buy goods and services forpersonal consumption.


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The Consumer Buying Decision

Process

The Consumer Buying Decision

Process

Need

recognition

Post

purchase

behavior

Purchase

decision

Evaluation

of

alternatives

Information

search


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The consumer buying decision

process

The consumer buying decision

process Need recognition: The first stage of the buyer decision process in which

the consumer recognizes a problem or need.

Information search: The stage of the of the buyer decision in which theconsumer is aroused to search for more information.

Alternative evaluation: the stage of the buyer decision process in whichthe consumer uses information to evaluate alternative brands in the choice

set. CPV

Purchase decision: The buyers decision about which brand to purchase

Post purchase behavior: The stage of the buyer decision process in which

the consumers takes further action after purchase based on theirsatisfaction or dissatisfaction.


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5. Market segmentation, target

markets and positioning

5. Market segmentation, target

markets and positioning

Companies today recognize that they cannot appeal to all

buyers in the market place, or at least not to all buyers in the

same way. Buyers are too numerous, too widely scattered and

too varied in their needs and buying behavior. Moreover, the

companies themselves vary widely in their abilities to servedifferent segments of the market.

Thus most of the companies are moving from mass marketing

toward target marketingidentifying market segments,selecting one or more of them and developing products and

marketing programs tailored to each.


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Steps in market segmentation,

targeting and positioning

Steps in market segmentation,

targeting and positioning

SegmentationDivide the total market

into smaller segments

Positioning

Position the marketoffering in the minds of

the target consumers.

Targeting

Selecting the segment orsegments to enter

Create value for

targeted

customers

DifferentiationDifferentiate the market

offering to create superior

customer value

Selecting customers to serve Decide on a value proposition


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Market segmentationMarket segmentation

Dividing a market into smaller

groups with distinct needs,

characteristics or behaviors

who might acquire separate

products or market mixes.


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Segmenting consumer marketsSegmenting consumer markets

There is no single way to segment a market. A marketer has to try

different segmentation variables, resources, locations, buying attitudes

and buying behavior.

The segmentation variables can be:

Geographic segmentation

Demographic segmentation

Psychographic segmentation

Behavioral segmentation


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Geographic segmentationGeographic segmentation

World region or country

region

City or metro size

Density

Climate

North America, western Europe, middle

east, China, India, Canada, Pakistan, New

zealand.

Under 5,000, 5,000-20,000, 20,000-50,000,50,000-100,000, 100,000-250,000, 250,000-

500,000 etc

Urban, Sub Urban, Rural

Northern, Southern


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Demographic segmentationDemographic segmentation

Age

Gender

Family size

Family life cycle

Income

Occupation

Education

Religion

Race

Nationality

Under 6, 6-11, 12-19, 20-34, 35-49, 50-64, 65+

Male, female

1-2,3-4, 5 +

Young, single; young, married, no children; young,

married with children; older, married with children;

older, married, no children; older, single Under 5000, 5,000-10,000, 10,000-20,000, 20,000-

35,000, 35,000-60,000, 60,000-100,000, 100,000 above

Professional and technical, managers, officials, students,

retired, farmers etc

School or less, high school, high school graduate, college

or university graduates

Christian, Jewish, Muslim, Hindu, other

Asian, Hispanic, black, white

North American, south American, British, Pakistani,

Italian, Japanese


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Psychographic segmentationPsychographic segmentation

Social class

Life-style

Personality

lower lowers, upper lowers, working class,

middle class, upper middles, lower uppers,

upper uppers

Achievers, strivers, survivors

Compulsive, gregarious, authoritarian and

ambitious


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Behavioral segmentationBehavioral segmentation

Occasions

Benefits

User status

User rates Loyalty status

Readiness stage

Attitude towards

product

Regular, special occasion

Quality, service, economy, convenience, speed

Non-user, ex-user, potential user, first-time

user, regular user

Light user, medium user, heavy user None, medium, strong, absolute

Unaware, aware, informed, interested,

desirous, intended to buy

Enthusiastic, positive, indifferent, negative,

hostile


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Requirements for effective

segmentation

Requirements for effective

segmentation

Measurable Accessible

Substantial

Differentiable Actionable


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Selecting target market segmentsSelecting target market segments

After evaluating different segments attractiveness, the

company must now decide which and how many segments it

will target.

A target market consists of a set of buyers who share

common needs or characteristics that the company decides to

serve.

The company then design a separate marketing program for

each target market segment.


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Target Market StrategiesTarget Market Strategies

Undifferentiated

(mass) marketingMicro marketing

(local or individual

marketing

Concentrated

(niche) marketing

Differentiated

(segmented)

marketing

Targeting broadly Targeting narrowly


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Target Market StrategiesTarget Market Strategies

Undifferentiated (mass) marketing: A market-coverage strategy in which a firmdecides to ignore market segment differences and go after the whole market with

one offer.

Differentiated (segmented) marketing: A market-coverage strategy in which afirm decides to target several market segments and design separate offer for each.

Concentrated (niche) marketing: A market-coverage strategy in which a firmgoes after a large share of one or a few segments or niches.

Micro-marketing: the practice of tailoring products and marketing programs to theneeds and wants of specific individuals and local customer groupsincludes local

marketing and individual marketing.

Local marketing: Tailoring brands and promotions to the needs and wants of localcustomer groupscities, neighborhoods and even specific stores.

Individual marketing: tailoring products and marketing programs to the needs,wants and even preferences of individual customersalso labeled markets-of-one-

marketing, customized marketing and one-to-one marketing.


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Differentiation and PositioningDifferentiation and Positioning

Beyond deciding which segments of the market it will target,

the company must decide on value proposition- on how it will

create differentiated value for targeted segments and what

position it want to occupy in consumer minds e.g. product

positioning.

Products are created in the factory, but brands are created

in the mind, says one positioning expert.

Mercedes and Cadillac positions on luxury.

Suzuki on economy.

Haleeb on thickness.

Jazz on coverage, quality, rates

Dawlance on reliability

Wal-Mart on low prices every day


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How differentiation is created?How differentiation is created?

Identification of competitive advantage-to the extent that a company can

differentiate and position itself as providing superior value

Strong positioning cant be built on empty promises.

A company can differentiate itself or its offering in terms of:

Products

Services

Channels

People

Image


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Choosing the right competitive

advantage

Choosing the right competitive

advantage How many differences to promote? Some firms only stick to one unique selling proposition (USP). Each brand should

pick an attribute and tout itself as number one on that attribute. E.g. reliability

of Dawlance.

On the contrary, some companies think that they should position themselves on

more than one differentiator. E.g. jazz coverage, quality and rates Unileversthree in one bar soap offering cleansing, deodorizing and moisturizing benefits.

Which differences to promote? Differentiators should be:

Important to the customers

Distinctive from the competitors

Superior from the competitors same benefits

Communicable and visible to buyers

Preemptive so that competitors cannot easily copy the difference.

Affordable so that buyers can afford to pay for it.

Profitable so as from it, company can achieve its primary objective.


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Possible value propositionsPossible value propositions

The full positioning of a brand is called the brands value

propositionthe full mix of benefits upon which the brand is

differentiated and positioned. The benefits are measured

against the price of the offering.

More for more positioning (Mont blanc pen, PC hotel,

Mercedes)

More for the same positioning (Lexus)

The same for less positioning (Wal-Mart)

Less for much less positioning (Southwest airlines)

More for less positioning ( the ideal situation)

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25470009 Marketing Process