Marketing for? - BEST Košice - študentská organizá · PDF...

SuitUpMarketers! PreMaterials 1

Marketing for?


CONTENT

INTRODUCTION ___________________________________________________________________ 3

TERMS __________________________________________________________________________ 4

PROMOTION ___________________________________________________________________ 4

MARKETING____________________________________________________________________ 4

PUBLIC RELATIONS ______________________________________________________________ 4

PUBLICITY _____________________________________________________________________ 4

MARKET RESEARCH ________________________________________________________________ 4

MARKETING PLAN _______________________________________________________________ 5

MARKETING METHODS ___________________________________________________________ 5

MARKETING MIX ________________________________________________________________ 5

MARKETING RESEARCH ___________________________________________________________ 7

CASE STUDY – GREGGS BAKERY __________________________________________________ 8

MARKET SEGMENTATION _________________________________________________________ 9

BASIS OF MARKET SEGMENTATION ______________________________________________ 10

THE PROCESS OF MARKET SEGMENTATION ________________________________________ 10

CRITERIA FOR SEGMENTATION __________________________________________________ 11

BARCLAYS CASE STUDY ________________________________________________________ 11


INTRODUCTION

These pre-materials were composed only for one purpose, to help understand and reach

basic knowledge about marketing, especially about marketing plans, methods, how to do a

research, that there is not only 4 P´s in marketing mix and at least how to handle and win

with marketing segmentation. There is also shown two case studies from two big London’s

companies: Barclays and Greggs which will help you to understand the theory.

SuitUpMarketers! core team is looking forward to meet you in Kosice.


TERMS ADVERTISING

Bringing a product or service to the attention of potential and current customers. Focused on

one product or service Done with signs, brochures, commercials, direct mailings or e-mail

messages, personal contact, etc.

PROMOTION

Promotion keeps the product in the minds of the customer and helps stimulate demand for

the product. Promotion involves ongoing advertising and publicity activities. These activities

together with public relations are often considered aspects of promotions.

MARKETING

Marketing is the wide range of activities involved in makingÿ sure that you're continuing to

meet the needs of your customers and getting value in return. Marketing activities include

market research, competitors analysis, positioning, promotion…

PUBLIC RELATIONS

Ongoing activities to ensure the company has a good public image. Activities include making

the public understand the company and its products or services. Often, public relations are

conducted through the media (newspapers, television, magazines, etc. )

PUBLICITY

Publicity is mention in the media. Organizations usually have little control over the message

in the media, at least, not as they do in advertising. Regarding publicity, reporters and

writers decide what will be said.

MARKET RESEARCH

The systematic gathering, recording, analyzing and use of data related to the market where a

business functions.


MARKETING PLAN

Objectives

The goals you want to achieve.

It should be similar to the goals of the event/LBG.

Strategies

What strategies can you develop to achieve these goals?

Before everything, do some market research.

Tactics

The day-to-day actions that you need to take in order to implement the strategy.

MARKETING METHODS

Evangelism marketing

Guerrilla marketing

Internet marketing

Mobile marketing

Permission marketing

Viral marketing

Search engine marketing

MARKETING MIX

- appeared in 1964

- need to have a mix “ingredients”

- the result would help taking better marketing decisions

4Ps

- Product

- Price

- Place

- Promotion

7Ps

- Product

- Price

- Place

- Promotion

- People

- Process

- Physical evidence

PRODUCT

- Tangible = product

- Intangible = services


Product decisions include aspects such as function, appearance, packaging, service,

warranty, etc.

PRICE

The price is the amount a customer pays for a product. It is determined by a number of

factors:

– market share

– Competition

– product identity

– the customer's perceived value of the product.

Pricing models

- Free

- Freemium

- Paid

- Premium

- Subscription

- Per unit

- Per weight

- Etc.

PLACE

Place (or placement) decisions are those associated with channels of distribution that serve

as the means for getting the product to the target customers. The distribution system

performs transactional, logistical, and facilitating functions.

Can be:

Virtual

Physical

Faculty

Classrooms

Dorms

Outside the university grounds

etc.

PROMOTION

Worth the communicating with the purpose of selling to potential consumers. It is useful to

know the value of a customer in order to determine whether additional customers are cost of

acquiring them. Promotion decisions involve advertising, public relations, media types, etc.

SUMMARY

Product Price Place Promotion

Functionality

Appearance

Quality

Packaging

Brand

Warranty

Support

List price

Discounts

Allowances

Financing

Leasing options

Market coverage

Locations

Logistics

Advertising

Personal selling

Public relations

Message

Media

Budget


PEOPLE

- Represent the company

- Are part of the service

PROCESS

Process is an element of service that sees the customer experiencing an organisation's

offering. It's best viewed as something that your customer participates in at different points

in time.

PHYSICAL EVIDENCE

All the material things around a service that are related to it

MARKETING RESEARCH

Market research is the process by which businesses find out about customers' needs, wants

and desires. It makes possible the successful development of new products.

It usually involves selecting a sample of the potential market and then questioning this

sample to find out these peoples' opinions e.g. about potential new products. Market

research can be carried out using either a large sample e.g. through questionnaires, or a

small sample e.g. through a focus group, in which small numbers of consumers are

encouraged to give detailed opinions about products.

Types of marketing research

ad-hoc research

focuses on a specific marketing problem and collects data at one point in time from

one sample of respondents. Examples of Ad-hoc studies are: usage and attitudes

surveys, product and concept tests, advertising development and evaluation studies,

corporate image surveys and customer satisfaction surveys.

Types of ad-hoc surveys:

Custom-designed studies:

they are based on the specific needs of the client. The research design is based on the

research brief given to the marketing research agency or internal marketing

researcher. Because they are tailor-made surveys, can be expensive.

Omnibus studies:

consist from questionnaires for face-to-face or telephone interviews. Is

cheaper alternative as custom-designed studies. The client can buy a space in

common questionnaire with another clients and benefit from cost sharing. Usually

the type of collected information is relatively simple and general (awareness levels,

ownership data)

continuous research

interview the same sample of people repeatedly (periodically). The client can measure

the change in customers attitudes and the change of spending patterns.


Two types of continuous surveys:

Consumer panels

are formed by recruiting large number of households which provide information on their

purchase over time. By using the same households over a period of time, measures of brand

loyalty and switching can be compared to the demographic profile of customers.

Retail audits

by gaining the cooperation of retail outlets sales of brands can be measured by means of laser

scans of bar-codes on packaging which are read at the checkout. Although brand loyalty and

switching cannot be measured, retail audits can provide accurate assessment of sales

achieved by store.

the survey methods

- Face-to-Face interviews

- Telephone interviews

- Mail surveys

- Internet surveys

Costs Response rate Impact Data quality

Face to Face High High Medium High

Telephone Int. Medium Medium Medium High

Mail surveys Low Low High Medium

Internet surveys Low Medium High Medium

CASE STUDY – GREGGS BAKERY

Greggs plc is the UK's leading bakery retailer,

specialising in sandwiches and savouries, with a

particular focus on takeaway food and catering. The

research helps provide customers with superior products

that combine taste, satisfaction and value for money.

This case study looks at an activity that is, for Greggs plc,

a key part of the total market research process. It

involves carrying out taste tests. They also uses a range of

other market research techniques. Taste tests are ideal

for goods such as food that are consumed directly.

Interviewers recruit random respondents on the street

and invite them to take part in the research.

Carrying out taste tests

With taste tests, respondents eat products within a controlled setting and then give their

opinion on them. It is good practice to test no more than three products in a session. Greggs

plc carry out two main types of taste test:

- Single Product Test ( one product only )

- Comparison Test (more than one variant of the same product e.g. the same filling in

different types of bread)

Advantages of taste test methodology


For any business, the most relevant views come from those people who are most likely to buy

and use the product. Having identified that group, an appropriate sample can be selected for

testing using a screening questionnaire that provides the right balance of age, gender and

frequency of purchase.

Small-scale v large-scale tests

Testing is an expensive exercise. Although it is helpful to carry out tests on as large a sample

as possible, it makes good economic sense first, to conduct a sample test using perhaps 30

people to obtain an initial reaction to a product. If it proves to be well received then large-

scale tests can be carried out on samples of not less than 100 people.

Rules for accurate taste testing

- Location

- Equipment

- Respondents

- Sample size

- Product preparation

- Questionnaire

- Carrying out the test

- Rotation of order

- Results

Set out the results as percentages and show clearly the number of respondents. Larger

samples require a data processing package like Excel.

Conclusion

For producers of foods, properly conducted taste tests are an excellent way of gauging

consumers' views in order to inform ongoing product development. Greggs plc is heavily

committed to providing good value, high quality products to its customers. In order to do

this, Greggs plc place great faith in this type of research, and the firm's growth is testimony

to the success of its approach.

MARKET SEGMENTATION

„The identification of individuals or organizations with similar

characteristics that have significant implications for the determination of

marketing strategy.“

The objective of segmentation is to identify groups with

similar requirements so that they can be served effectively

while being of a sufficient size for the product or service to

be supplied efficiently. Generally three criteria can be

used to identify different market segments:

1) Homogeneity (common needs within segment)

2) Distinction (unique from other groups)

3) Reaction (similar response to market)

A market segment is a small unit within a large market

comprising of likeminded individuals. One market segment is totally distinct from the other

segment. A market segment comprises of individuals who think on the same lines and have


similar interests. The individuals from the same segment respond in a similar way to the

fluctuations in the market.

BASIS OF MARKET SEGMENTATION

gender

The marketers divide the market into smaller segments based on gender. Both men and

women have different interests and preferences, and thus the need for segmentation.

Organizations need to have different marketing strategies for men which would obviously

not work in case of females The segmentation of the market as per the gender is important in

many industries like cosmetics, footwear, jewellery and apparel industries.

age group

Division on the basis of age group of the target audience is also one of the ways of market

segmentation. The products and marketing strategies for teenagers would obviously be

different than kids.

- Age group (0 - 10 years) - Toys, Nappies, Baby Food, Prams

- Age Group (10 - 20 years) - Toys, Apparels, Books, School Bags

- Age group (20 years and above) - Cosmetics, Anti-Ageing Products, Magazines,

apparels and so on

income

Marketers divide the consumers into small segments as per their income. Individuals are

classified into segments according to their monthly earnings. The three categories are:

- High income Group

- Mid Income Group

- Low Income Group

Stores catering to the higher income group would have different range of products and

strategies as compared to stores which target the lower income group.

marital status

Market segmentation can also be as per the marital status of the individuals. Travel agencies

would not have similar holiday packages for bachelors and married couples.

occupation

Office goers would have different needs as compared to school / college students.

THE PROCESS OF MARKET SEGMENTATION

the disaggregated market:

- Consist from dispersed individual clients

- C1 – C9 circles = clients

- All types of markets before segmentation

the segmented market:

- Customers are grouped into segments

- In the same group are customers with similar characteristics and attitudes

- The Company is preparing special product for the selected segment


CRITERIA FOR SEGMENTATION

Three main groups:

- Behavioural criteria

- Psychographic criteria

- Profile criteria

a) Behavioural criteria

Describe the buying patterns and the human acting This group includes specific criteria, the

construction of which is based on the marketer’s experience and skills

b) Psychographic criteria

Are used when researchers believe that purchasing behaviour is correlated with the

personality or lifestyle of consumers This form of segmentation attempts to group people

according to their way of living as reflected in their activities, interests and opinions. These

variables help companies to construct product with specific design or functions, which are

applicable only for one type of segment.

Personality: Extroverts, introverts, aggressive, submissive…

c) Profile criteria

Describe the demographic, socioeconomic and geographic properties of customers

Examples:

Age, Gender, Life cycle (young single, young couples, young parents, retired), Social class

(white-collars, blue-collars, upper middle, unwaged), Income, Residence, Property relations.

BARCLAYS CASE STUDY

Barclays is a global bank. It provides a range of financial services in 56 countries. Barclays

provides retail banking services to customers, whether they are individuals or businesses. It

offers a broad range of financial products and services including current accounts, savings

accounts and general insurance.

Different kinds of customers represent

distinct markets for Barclays. The market for

personal banking services is very

competitive. Personal customers have a

choice of banks on the high street or on the

web to assist them in managing their

finances. For example, they can have their

salaries paid into accounts, pay bills through

the bank or save money to gain interest on

their savings.

There is also a competitive market for

business banking services. Businesses require different services such as credit management,

payments for suppliers or loans and overdrafts to help them to survive and grow. For

example, an expanding business may need a mortgage to buy a new building.


Market segments

Each market is capable of being further sub-divided into segments. A market segment is a

part of a whole customer group that shares particular characteristics. These include such

factors as age, life stages, geography or occupation.

Within the market of personal banking, the segments could include categories such as:

- Students

- Graduates

- new to work'

- mature

- families

By identifying different market segments, organisations can ensure they are providing

products or services to meet the needs of these customers.

In addition to this, appropriate promotional techniques can be used to reach the people in

the separate segments.

Through segmentation, Barclays has been able to devise appropriate banking offers for

customers in different segments. This approach is helping Barclays to improve its market

share of the student accounts market. Barclays believes students constitute a very important

market segment for the business. Students may be choosing a bank for the first time and

Barclays hopes to retain these customers.

By focusing on the specific needs of this segment, Barclays hopes to attract more student

customers and keep them in the long term. Using market research has enabled Barclays to

identify the right product offer that will meet their needs.

Marketing for? - BEST Košice - študentská organizá · PDF...

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