Principles of Marketing Lecture-4. Today’s Topics.

Principles Principles of of

MarketingMarketing

Lecture-4Lecture-4

Today’s Today’s TopicsTopics

Class Communication Class Communication

Indi Head rolls !Indi Head rolls !

AttendanceAttendance

Quiz resultsQuiz results

Do examples to clarifyDo examples to clarify

Discuss project reportDiscuss project report

Market Segmentation and Target Market Segmentation and Target MarketsMarkets

Road MapRoad Map

Quiz AnswersQuiz Answers

Examples of GOSTExamples of GOST

MissionMission Goals and ObjectivesGoals and Objectives Strategies and TacticsStrategies and Tactics

Mission: Be independentMission: Be independent Goal 1: Be independent in transportGoal 1: Be independent in transport Strategy: Ability to travel aloneStrategy: Ability to travel alone

Objective 1: Buy a car by end of 2007Objective 1: Buy a car by end of 2007 Objective 2: Get a driver’s licenseObjective 2: Get a driver’s license Objective 3: Find at least 2 means of local transport Objective 3: Find at least 2 means of local transport

that fits my needsthat fits my needs Tactics: Tactics:

Save Rs.5000 every month to buy a carSave Rs.5000 every month to buy a car Search at least 12 classified ads every week to look Search at least 12 classified ads every week to look

for a car.for a car. Enroll in a driving learners classEnroll in a driving learners class Go on test drives with family and friendsGo on test drives with family and friends Find 3 places where I can practice driving etcFind 3 places where I can practice driving etc

Do you want to do more examples. Do you want to do more examples.

Porter’s Generic Porter’s Generic Strategies ModelStrategies Model

Mission: Provide the best quality products in the Mission: Provide the best quality products in the shampoo marketshampoo market..

Goal 1: Make our brand #1 in children’s shampoos.Goal 1: Make our brand #1 in children’s shampoos. Strategy: Differentiate our product (i.e. focus on Strategy: Differentiate our product (i.e. focus on

quality vs. price)quality vs. price) Objective 1: Increase quality of children shampoos by 10%.Objective 1: Increase quality of children shampoos by 10%. Objective 2: Make caps of the bottles child proof as per Objective 2: Make caps of the bottles child proof as per

industry standards.industry standards. Objective 3: Package bottles in shape of cartoon characters.Objective 3: Package bottles in shape of cartoon characters.

Tactics: Tactics: Use natural ingredients in the kid shampoos.Use natural ingredients in the kid shampoos. Use less chemical dye in the shampoo.Use less chemical dye in the shampoo. Use less chemical smell agents in shampoo.Use less chemical smell agents in shampoo. Use focus group to test caps for being child proof.Use focus group to test caps for being child proof. Survey at least 20% of target population to find quality rating Survey at least 20% of target population to find quality rating

of our product.of our product. Plan for Plan for ISOISO 9001:2000 & 9001:2000 & ISOISO 14001:2004 quality 14001:2004 quality

certifications of kid shampoos.certifications of kid shampoos. Survey to find out top 5 most favorite cartoon characters in Survey to find out top 5 most favorite cartoon characters in

kids aged 1 to 15 yrs.kids aged 1 to 15 yrs. Contact cartoon copyright companies to use their cartoons in Contact cartoon copyright companies to use their cartoons in

our packaging etc.our packaging etc.

Product- Market Growth Product- Market Growth Matrix Matrix

Group ProjectGroup Project

Group Project LinksGroup Project Links

https://www.cia.gov/cia/publications/https://www.cia.gov/cia/publications/factbook/docs/faqs.htmlfactbook/docs/faqs.html

http://www.lib.umich.edu/govdocs/sthttp://www.lib.umich.edu/govdocs/stforeig.htmlforeig.html

http://web.worldbank.org/WBSITE/Ehttp://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/XTERNAL/DATASTATISTICS/

Example of SwitzerlandExample of Switzerland

Marketing Plan OutlineMarketing Plan Outline

Executive SummaryExecutive Summary Situation AnalysisSituation Analysis

Analysis of countryAnalysis of country Political and legal environmentPolitical and legal environment Economic environmentEconomic environment Social and cultural environmentSocial and cultural environment Technological environmentTechnological environment

SWOT analysisSWOT analysis

Market SegmentationMarket Segmentation DescriptionDescription What they wantWhat they want How they use the productHow they use the product How to reach themHow to reach them Price sensitivityPrice sensitivity

Marketing StrategyMarketing Strategy Discuss why you selected this strategyDiscuss why you selected this strategy Discuss elements of the marketing mix (4 Discuss elements of the marketing mix (4

P’s)P’s)

Marketing strategy cont….Marketing strategy cont…. 4 P’s cont……4 P’s cont……

ProductProduct ColorColor Quality’Quality’ WarrantyWarranty Packaging etcPackaging etc

PricePrice Price range and discuss why you selected this Price range and discuss why you selected this

range (hint range (hint incomeincome)) Discounts Discounts Payment or leases etc.Payment or leases etc.

Marketing strategy cont….Marketing strategy cont…. 4 P’s cont……4 P’s cont……

Place or DistributionPlace or Distribution Distribution ChannelsDistribution Channels Discuss why you selected the channelDiscuss why you selected the channel

PromotionPromotion AdvertisingAdvertising Public RelationsPublic Relations BudgetBudget

Marketing Segmentation Marketing Segmentation andand

Target MarketsTarget Markets

CustomersNeeds and other

SegmentingDimensions

CompanyMission, Objectives,

& Resources

CompetitorsCurrent &

Prospective

CustomersCustomersNeeds and otherNeeds and other

SegmentingSegmentingDimensionsDimensions


& Resources


Prospective

S.W.

O.T.

External Market EnvironmentExternal Market Environment




& Resources


Prospective




& Resources


Prospective

S.W.O.T.

Targeting &Segmentation

Positioning &DifferentiationPositioning &Differentiation




& Resources


Prospective

S.W.

O.T.





& Resources


Prospective




Prospective

S.W.O.T.




Narrowing down to focused strategy with quantitative and qualitative screening criteria


& Resources




& Resources


Prospective

S.W.O.T.






& Resources


Prospective

S.W.

O.T.





& Resources


Prospective

Market SegmentationMarket Segmentation

The process of dividing the total The process of dividing the total market of a good or service into market of a good or service into smaller groups such that each group smaller groups such that each group is similar w.r.t. factors that influence is similar w.r.t. factors that influence demands.demands.

Ex. BikesEx. Bikes Ex. AirlineEx. Airline

Why SegmentWhy Segment

Identifies opportunities and needs.Identifies opportunities and needs.

Allows firm to focus on specific needs.Allows firm to focus on specific needs.

Improves marketing mix for each Improves marketing mix for each segment.segment.

Allows small firm to exist.Allows small firm to exist.

SegmentationSegmentation

Requirements to Segment:Requirements to Segment: Sizeable or large enoughSizeable or large enough Identifiable or measurableIdentifiable or measurable Reachable or accessibleReachable or accessible

Segmenting the Consumer Segmenting the Consumer MarketMarket

GeographicGeographic Region, city, urban-rural, climate, country etcRegion, city, urban-rural, climate, country etc

DemographicDemographic Income, age, family, social class, education, Income, age, family, social class, education,

occupation, religion etcoccupation, religion etc PsychographicPsychographic

Personality, lifestylePersonality, lifestyle Values: self-respect, self-fulfillment, security, Values: self-respect, self-fulfillment, security,

belonging, excitement, accomplishment, fun etcbelonging, excitement, accomplishment, fun etc Buying BehaviorBuying Behavior

Benefits desired, usage frequency, buyer Benefits desired, usage frequency, buyer preferencepreference

Target Market Target Market

A target market is the marketing A target market is the marketing segment selected for marketing the segment selected for marketing the product.product.

style

price

Homogeneous Preference -no natural segments -all buyers have same preference

Diffused Preference -no pattern (…or poor research) -take center position

style

price

Clustered Preference -natural segments -increases as number of competitors increases

style

price

End of Lecture -4End of Lecture -4

Principles of Marketing Lecture-4. Today’s Topics.

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Transcript of Principles of Marketing Lecture-4. Today’s Topics.