Marketing principles. (hnd)
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Transcript of Marketing principles. (hnd)
Unit: 04 Marketing Principles
By Shraddha Sharma
Contents
Macro environment
Micro environment
Segmentation and it’s bases
Positioning
Target strategy for a product
Customer behavior
Perceptual map
Political
•Tax policy•Employment laws•Environmental regulations•Trade restrictions and tariff•Political stability
Economic
•Economic growth•Interest rates•Exchange rates•Inflation rates
Social
•Health consciousness •population growth •Age distribution •Career attitudes•Emphasis on safety
Technological
•R&D activity•Automation•Technology incentives•Rare of technological change
Demography• study of human population•Includes various criteria's like sex, income, age, education etc.•Manufacturing depends upon the size of the population
A macro environment is a wide, broad set of economic conditions rather than the conditions in a specific sector or industry within an economy.
2.1
Impact of macro environment on LV
Impact of macro environment on LV
EconomicalIn 2010, Louis Vuitton raised classic accessory prices in the Eurozone approximately 9% due to rising leather and cotton prices, IBT
Technological Counterfeiting is taking a toll around the globe and it can be highly related with the growing technology.It has both good and bad impact on the brand.
SocialLV has a very powerful presence on social media, it is also ranked as no.1 among other luxury brands. It has 2 twitter pages, facebook page, fb app, branded you tube channel and also an LV Flickr photo stream.
Political The brand is growing in the Asian market as the number of high-end customer also rises.In other countries it still faces some challenges like supply chain and transportation due to rise in fuel prices.
DemographicThe impact of this factor varies from country to country. In China, the market of LV is dipping as the people feel that the brand has become too ordinary. Whereas, in Japan it is a must to have an LV bag for everyone.
2.1
Micro Environment
competitorspublic
suppliers
customers Marketing intermediaries
Workers and their unions
The immediate small-scale environment of an organisation or a part of an organisation, especially as a distinct part of a larger environment is known as micro environment.
2.1
Porter’s Five Forces Analysis
2.1
Industry competitors
Buyer
Buyers - As they target the rich and high middle class people, there customers are relatively low.
Substitutes –threat of substitutes are present around them as high label brand such as Prada, Hermes, Armaani etc also have the same line of products
Suppliers –they have low numbers of them as they do not purchase raw material from just any random shop.
Entrants – low number of new entrants will come in because of the quality and the old brand name of the company.
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Bases for segmenting
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2.2
Demographic
-income, occupation, gender etc.
- Most popular bases for segmenting
Geographic
-different units
-regions, states etc
- Need and wants varies from region to region
Behavior
- Loyalty towards a brand of a customer
Psychographic
- Lifestyle
- individual’s attitude and interest
Bases for segmenting
Positioning
It is a marketing strategy that helps a brand to occupy a distinct position, relative to competing brands, in the mind of the customer
This is a perceptual map which shows the actual position of brand as compared to it’s rivalries.
2.2
Targeting strategy
LV has introduced this fun and colorful collection of bags in September.
It is being loved not only by their customers but also by the ones who are not very fond of this brand (as per the reviews online).
It is mainly attracting more of the younger crowd as it more about colors in this collection and it has a variety of purses, say zippy coin wallet, mini pochette which generally attracts more of girls who are in their teenage.
2.3
Selecting a targeting strategy for the product
Demographic- The LVs evasion collection directly targets the youth
segment more than any other age group. - It is also for those who wants to own a luxury brand
but because of very high prices they do not buy them.
- This collection are little low at rate as compared to its other lines.
Psychographic - Evasion shows a drastic innovation in the brand’s
design. It has gone a step forward to keep up with the trend.
- It instantly appeals to the customers because of their design and frolic colors.
2.3
Buyer’s Behavior
2.4
Environmental factors affecting buyer’s behavior
Cultural
Cultural trendssocial
Social
Family Social roles and status
Psychological
MotivationPerceptionLearningBeliefs and attitude
Personal
Age LifestylePurchasing powerPersonality
Consumer and organisational buying
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problem recognition or
need awareness
information search
possible alternatives
purchase decision
post-purchase evaluation
2.4
Perceptual maps of luxury brands summer spring handbags collection 2015
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Price
Quality
2.5
Cherche midi bag
evasion
Inside bag
Wallet on chain
Micro belt bag
Social presence
The brand LV already has the strongest social presence among it’s rivalries.
Whereas, it should go more aggressive by asking famous celebs to give them more shout outs on the social media.
It should also consider the complaints or the negative feedback they get for their not-so-good service to customers and should take a step to improve it.
The brand should start a system where they handover a membership card to their loyal customers and provide them with offers, discounts and other services so they are retained.
2.5
References
Assael, H., Reed, P. and Patton, M. (1995) Marketing: Principles and Strategy Harcourt-Brace, Sydney.
Philip kotler (2008) Marketing Management, mahoney dusil, M.E.G.S. (2015, SEPTEMBER 23,
2015). LOUIS VUITTON HANDBAGS AND PURSES. [Weblog]. Retrieved 09/10/2015, from http://www.purseblog.com/louis-vuitton/louis-vuitton-evasion-collection-christmas-animation-2015/
fashion (2014) Does Louis Vuitton’s Strategy Shift Make You More or Less Likely to Buy LV Bags?, Available at: http:// www.handbagnewshow.com/post-996.html (Accessed: 8th October 2015).