Transcript Table 2.2 UK consumer expenditure - uni

Business / Marketing Minor
Marketing Fundamentals
M21439
Session 5:
Appropriate Mixes & Stakeholder
Relationships
Key Concepts
• Stakeholder groups
• Changing role of marketing in relation to
these stakeholders
• Market segmentation
• Varying the marketing mix
Organisational Stakeholders
Other Organisations
or Groups
Employees
Consumers/Customers
ORGANISATION
Providers of Finance
Government
Community & Environment
Source: Mullins,J.L. (1996) Management & Organisational Behaviour 4th ed, UK:Pitman Publishing
Connecting Inside the Company
“Traditionally, marketers have played the role
of intermediary, charged with understanding
customer needs and representing the
customer to different company departments,
which then act upon these needs.”
Source: Kotler,P & Armstrong,G (2001) Principles of Marketing 9th ed, Prentice Hall, p29
Connecting Inside the Co
“Forward-looking companies are reorganising
their operations to align them better with
customer needs. Rather than letting each
department pursue its own objectives, firms
are linking all departments in the cause of
creating customer value. Rather than
assigning only sales and marketing people to
customers, they are forming cross-functional
customer teams”
Source: Kotler,P & Armstrong,G (2001) Principles of Marketing 9th ed, Prentice Hall, p29
Connecting with Outside Partners
“Rapid changes are occurring in how
marketers connect with their suppliers,
channel partners and even competitors. Most
companies today are networked companies,
relying heavily on partnerships with other
forms.”
Source: Kotler,P & Armstrong,G (2001) Principles of Marketing 9th ed, Prentice Hall, p29
Connecting with Outside Partners
• Supply Chain Management:
Marketing channels consist of distributors,
retailers and others who connect the
company to its buyers.
• Strategic Alliances:
Marketing alliances maybe service or product
orientated
Connecting with Outside Partners
• Global Connections:
Geographical and cultural differences have
shrunk over the past two decades resulting in
a vastly more complex marketing environment.
• Corporate Ethics and Social Responsibility:
Organisations are encompassing these
aspects more strongly in the past decade.
Examples of Marketing Objectives for
Different Types of Exchanges
Source: Philip Kotler, Marketing for Non-profit Organisations, 2nd edn, © 1982, p. 38. Adapted by permission of
Prentice-Hall, Inc., Englewood Cliffs, N.J.
Definition of a Market
“A market is the set of all people who have an
actual or potential interest in a product or
service and the resources to acquire it.”
Kotler & Fox (1995)
Steps in Market Segmentation
MARKET SEGMENTATION
MARKET TARGETING
MARKET POSITIONING
1. Identify bases for
segmenting the market
2. Develop segment
profiles
3. Develop measure of
segment
attractiveness
4. Select target segments
5. Develop positioning for
target segments
6. Develop a marketing
mix for each segment
Source: Kotler,P. & Armstrong,G.(2001) Principles of Marketing 9th ed, New Jersey:Prentice Hall
Main Segmentation Bases –
Consumer Markets
1. Geographic
– for example, region, density, climate
2. Demographic – for example, age, gender, race, income
3. Psychographic – for example, lifestyle, personality
4. Behavioural – for example, user rate, loyalty, occasions
5. Multivariable – a combination of the above
Source: Kotler,P. & Armstrong,G.(2001) Principles of Marketing 9th ed, New Jersey:Prentice Hall
Main Segmentation Bases –
Business Markets
1. Demographic
– for example, industry, company, location
2. Operating Variables - for example, technology
3. Purchasing Approaches – for example, power
structure
4. Situational Factors – for example, urgency, size of order
5. Personal Characteristics – for example, loyalty,
attitudes towards risk
Source: Kotler,P. & Armstrong,G.(2001) Principles of Marketing 9th ed, New Jersey:Prentice Hall
Varying the Market Mix
In different markets or industry sectors,
different types or variation in focus on various
elements of the marketing mix may be
important to gain competitive advantage.
Business-to-Business Markets
• Characteristics of Business-to-Business
Marketing Mixes
– Promotion
– Price
– People
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin
Typical marketing channels for industrial
products/business-to-business markets
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin
Service Markets
• Amending the Marketing Mix for Services
– Product
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin
Complexity/variability grid for
medical services
Source: Adapted from Lynn Shostack, 1985 American Marketing Association Faculty Consortium on Services
Marketing, Texas A&M University, 7-11 July. Reprinted by permission of the American Marketing Association.
Service Markets
• Amending the Marketing Mix for Services
– Promotion
– Price
– Place/Distribution
– Process
– Physical Evidence (Ambience)
– People
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin
The Extended
Marketing Mix
for Services –
Boom & Bitner
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin
Service Marketing Mix
The marketing mix designed originally for the
service market is now becoming more
popular with organisations who produce
traditional goods.
This is because people, process and place
are starting to be seem as becoming
important variable in customer choice.
International Markets
• Strategic Adaptation of Marketing Mixes for
International Markets
– Product and Promotion:
• Keep Product and Promotion the Same
Worldwide
• Adapt Promotion Only
• Adapt Product Only
• Adapt Both Product and Promotion
• Invent New Products
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin
International Product and Promotion
Strategies
Source: Adapted from Warren J. Keegan, Global Marketing Management, 4th edn, (Englewood Cliffs, N.J.:
Prentice-Hall, 1989), pp. 378-382. Used by permission.
International Markets
• Strategic Adaptation of Marketing Mixes for
International Markets
– Place/Distribution and Pricing:
• Distribution
• Pricing
• People
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin
Strategies for International Distribution and
Pricing
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin