Transcript Document

AB219 Marketing
Unit Six
Tonight’s Focus:
Marketing Channels, Retailing and Wholesaling
What do I have to do this week?
• Reading: Chapters 10 & 11.
• Discussion: VP of Distribution!
• Research Project: Segmentation
• Quiz & Simulation: None this Week!
Professor’s Tip: U6 Research Project (and related research) not
intended to be completed in a few days, but over at least 2
weeks. So, don’t wait to the last minute to pull it together &
watch my “Professor’s U6 R.P. Help Video” for pointers!
Remember: Tuesday @ 11:59 pm is the weekly deadline.
Discussion “Best Practices”
Major Discussion Requirements include:
• 1st detailed original response (answers discussion questions) no
later than Saturday of unit.
• EXCEED minimum 100 word initial post (usually will have to
exceed this minimum to adequately respond to the question(s)
asked .)
• Post on at least 3 different days.
• Respond to @ least 2 of your classmates (These posts must
also include the substance from our weekly focus and demonstrate
your application of the material we are learning.)
• Minimum 3 total posts for each unit (1st detailed original
response, 2 peer responses).
Remember:
• Relate Discussion to Reading & Weekly Focus.
• Interactive discussions, so please answer any questions that I or
classmates may ask.
U6 Research Project
Research Project Recommendations
• Based on Brand/Company chosen in the U2 Discussion
• Quasi APA Structure: (only as a result of no title page)
- No Separate Title Page this week & not a 3 – 4 page paper format.
- APA styled Reference Page (@ least 3 reference sources)
- Cite References within the paper itself (@ least 3 citations in your
paper)
• Substance tied to Units being Studied:
- Complete Template and build out your substantial responses to each
question.
- Provide facts & statistics (cite this within your paper)
- Provide your ideas connected to the focus as it relates to the readings.
- Provide more than just opinion …… analysis & connect to readings.
• Save document & submit as follows: YourNameU6Project
Brand Choices (made in U2 Discussion)
• Goods:
Green Depot, Patagonia, Swatch Watches, Goya Foods,
Delta Faucets, Barilla Foods, Editorial Planeta, & Acer
Computer.
• Travel Services:
Shangri-La Hotels & Resorts, Trafalgar Tours, Sandal
Resorts, Singapore Airlines, & Choice Hotels.
• Music Groups & Celebrities:
Lady Gaga, Jay-Z, Celine Dion, Shakira, Josh Groban, Sonu
Niigaam (Nigam), 2 PM, & Westlife.
• Organizations:
LPGA, NASCAR, Metropolitan Opera, FIFA, Doctors Without
Borders, UNICEF, & The Louvre.
How to think of the R.P. Brand
• Think about & consider the product/product line of
your brand: (when researching & completing
template)
1) What are the various versions/lines of the product?
2) How do the various versions/lines meet specific needs and
wants of different segments & target markets?
3) How does it appear that the segmentation variables &
characteristics have been used to create unique product
offerings to different segments and targets?
4) What different segments or markets are targets in the
many different advertisements for the product(s)?
(note: there will be very different ads that target the different
segments and markets!)
The Research Project Template
Segmentation Analysis
TARGETING your MARKET: Use the five steps below to examine your
target segments and then classify your brand’s position.
Step 1: Name the brand you chose in the Unit 2 Discussion ---------
Enter Your Brand: Apple Iphone
Simply type your
brand name in this
box and then will
begin the real work
of the project.
The major Segmentation Variables
The major segmentation variables can be divided into demographic,
geographic, psychographic, and behavioristic groups. These are
summarized below & used in conjunction with Figure 6.1 in our
ebook:
Target Market Segmentation
1.
2.
3.
4.
5.
Identify appropriate strategy
Determine segmentation variables
Develop segment variables
Evaluate segments
Select specific segments
Large Heterogeneous Market ----> Segment ----> Segmented Profiles you will target & this
then allows for the 4P’s to be developed for
each segment. (Homogenous groups)
The Research Project Template
STEP 2: List and explain which specific segmentation variables of
the four segmentation categories shown below should be used
(location, age, gender, or rate of usage for examples see Table
6.1 in Chapter 6 reading) You may not have variables in all the
represented categories. Provide the variables used and explain
why you believe they should be used----------------->
Demographic Variables: The primary demographic variables used for Apple are age,
income, and usage. The iPhone is basically for anyone that is old enough to
operate a cell phone and make/receive calls, but is also geared toward
professionals who want a personal data assistant with a cellular device. This target
group is the age bracket from 14 - 65 years of age(Armstrong & Kotler, 2010). In
order to purchase and use the iPhone, the customer has to have the sustainable
income for the monthly access charges that is associated with the service for the
device.
Geographic Variables:
Psychographic Variables:
Behavioral Variables:
Save yourself some
headaches & select the
cells in this section,
right click & choose
“Autofit,” then “Fixed
Column Width.”
You are taking the
first step of
segmentation by
looking at the
different
characteristics that
“could” be used to
create segments for
your brand and
briefly explaining
why this is the case
for each variable.
You can most likely
develop a response
for each variable,
given the brand
choices that have
been provided to you
to choose in the Unit
2 Discussion.
Criteria for Effective Segmentation
1. Measurable - Must be quantifiable
2. Accessible - You must be able to reach them
3. Substantial - Must be large enough so company
benefits
4. Differentiable - Segment must respond differently
5. Actionable - Company must be capable of marketing
to identified segments
The Research Project Template
STEP 3: From the variables you selected in Step 2, devise at least three
appropriate Market Segment Profiles for your brand which describes what
your potential customers have in common within each segment.
Remember: target segments are often made up of multiple segmentation
variables and may also combine geographic, demographic, psychographic
and behavioral elements together (Read the section on this in Chapter 6).
----------->
Business People: Iphone users are between the ages of 18 – 55 and are often
business people as a result. Product sales are expected to reach annual sales of $8.4
billion by 2011, according to a report released this month by Packaged Facts Inc., the
publishing division of MarketResearch.com (Armstrong &Kotler, 2010). The
continuous influx of business people and the above-average income of this group,
will likely insure that status for the foreseable future increases. Iphone users spend
nearly 25% more than other groups on electronics because of their work and
personal lives and the importance that many attach to each.
Major City Residents: The US population is over 300 million people. More than 63%
of them are users of technology, 14.4% own a computer, 10.6% are on the internet
daily, 4.2% are expected to buy an iphone in the next 2 months and 7.4% use
alternative cellular products. 40% of all cell phone users are concentrated in four
states - California, Texas, New York, and Florida (Apple, 2011).
Athletic Individuals: Iphone users in general have a need to be connected
electronically than cell phone user group in the U.S. They place a higher priority on
being connected and are doing so very often. They also tend to email and text more
often than other smartphone users while participating in athletic activities.
Save yourself some
headaches & select the
cells in this section,
right click & choose
“Autofit,” then “Fixed
Column Width.”
Segments will be 3
distinct profiles that
your brand seems to
target. For example,
MS Office has 3 main
market segment
profiles that are
Home, Students and
Business Users. The
segmentation
variables &
characteristics are
used in developing
these segment
profiles, but you will
want to make sure to
choose 3 distinct
profiles here & not
simply variables or
characteristic as one
of the profiles.
The Research Project Template
STEP 4: Examine why the segments you devised are appropriate
target segments for this brand to pursue. ------->
The first segment that is most appropriate for Apple Iphone is Business
People. This group is an ideal segment for this to target because xxxxx
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Here, you will
detail why each
segment that you
determined is
being targeted by
your brand makes
sense to target.
So, you will go
into the detail of
why each
respective target
market makes
sense to develop
a distinct and
unique marketing
mix (4p’s) for.
Use the “Criteria
for Effective
Segmentation”
(looked at a
couple of slides
back) as the
framework for
this response.
The Research Project Template
STEP 5: Now analyze the target markets based on the
information in step #4. Compare and contrast them as far as
what benefit they will return to the brand’s owner. Make sure to
provide what benefit they will bring to the brand’s owner in your
analysis. ---->
The first segment, Business People, provide many benefits to Apple and
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Remember, we
discussed there
needs to be a
beneficial
relationship between
both seller and
buyer. Here, you are
going to focus on the
benefits that will be
provided to your
brand (company) by
focusing on the
market segments
you outlined above
and in regard to this
steps instructions.
So, think about the
purpose that your
Company or Brand
has chosen to target
specific segments
and what do they get
in return for properly
targeting these
groups.
Major Segmentation Strategies
Undifferentiated
• Single product & single strategy for entire market
• Requires homogeneous market.
• Broadly based segment = most of the population.
Concentrated
• Single segment , one strategy.
• Major advantages include specialization and the ability to compete.
• Major disadvantage = “all eggs in one basket.”
Differentiated
• Two or more segments each with its own marketing mix .
• Major advantages include potentially higher sales and absorption of excess
production capacity.
• Major disadvantage = cost.
Micromarketing
• products tailored to individuals or smaller local areas.
The Research Project Template
STEP 6: Differentiate your brand: Identify whether the
differentiation strategy should be Undifferentiated, Differentiated
or Concentrated or Micromarketed and explain why: -------------->
The differentiation strategy that Apple seems to use with the Apple Iphone
is xxxxxxxxxxxx xxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxx xxxxx
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Remember, there is
a difference
between product
differentiation and
a brand’s
segmentation
strategy. You will
discuss your
brand’s
“segmentation
strategy” here, but
this can include
differentiating a
brands product(s)
and product lines
depending on the
strategy chosen.
The Research Project Template
STEP 7: BRAND POSITONING: Position your brand. Analyze which of the
following overall positioning strategies you will use for your brand. Explain
your decision by providing multiple reasons:
1) More for More
2) More for the Same
3) The Same for Less
4) Less for Much Less
5) More for Less ----------->
Apple is known for providing the customer with “More for More or Slightly
More.” In doing so, Apple iPhone uses many of the positioning bases when
marketing their product to its consumers. Among these are attributes, price
and quality, use, and competition. In the ever changing computer market
and the increasing sales in cell phones, customers want a product that can
integrate a personal computer with a cellular device right in the palm of the
hand. The iPhone offers a list of attributes, or features, that appeals to
almost any customer. The iPhone incorporates a cellular phone with the
ability to see voicemail messages before listening them, an internet device
that allows you to surf the web just like you would on a computer, and has
the ability to carry and play your digital content purchased from the iTunes
Store. Xxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx
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You will want to
expand on the
positioning strategy
that you choose
from the list of 5
choices here. So,
you will want to go
into detail on which
of the position bases
apply and how your
brand is specifically
positioned. Explain
your decision using
such positioning
bases as 1)
Attributes: product
features and
customer benefits,
2) Price. 3) Quality,
4) Use: Is there
some special use of
this brand?, 5)
Competitor(s):
positioned as the
opposite of a
competitor?, & 6)
Emotion: positioned
according to how it
makes customers
feel.
The Research Project Template
References:
Armstrong, G., Kotler, P. (2010). Marketing: An Introduction, Revised
Global 10th Edition. (pg. 45, 77, 122). Upper Saddle River, Pearson
Education.
Notice how you
put the page
numbers right
before the
publishing city
and in
parenthesis if
taken from
certain pages in
your textbook.
Apple Computers (2007). Apple.com. Retrieved from
http://www.apple.com/swf/index.html
The New York Times Magazine, James, R. (November 22, 2010).
Reaching Out, Apple Iphone. Retrieved from
http://www.nytimes.com/2011/11/22/.html
You will enter 3 or
more of your
“APA formatted”
reference sources
used in doing
your research and
that you also
have cited in the
paper above.
U6 RESEARCH PROJECT
Any other questions on the RP?
:: Contact me with Questions ::
Email: [email protected] or Phone: 215-360-1258
Let’s Test our Knowledge!
U6.1: The price of chocolate increases by
20% and your favorite brand of candy bar
goes up in price by 30%. If you still continue
to buy the candy bar no matter how much it
costs, you are price ___________ regarding
your demand for the product.
a)
b)
c)
d)
e)
static
elastic
inelastic
Recessionary
inflationary
U6.2: Walmart sells 32 water bottles (16
oz each) shrink-wrapped in a single
package, at a single price. This is an
example of:
a)
b)
c)
d)
e)
prestige pricing.
bundle pricing.
multiple-unit pricing.
bait pricing.
skimming pricing.
MULTI-UNIT PRICING
VS. BUNDLE PRICING
Review of Unit 5
• Just reviewed! Questions or concerns?
• Are the Research Projects on segmentation almost
ready for submission this week?
• Lets start discussing Unit 6!
Our Topics for This Week
• Channel importance, functions, types, and coverage
• Physical distribution and supply chain management
• Retailing types and trends
• Wholesaling types and role in marketing
Important Definitions
• Marketing Channel – A group of individuals and
organizations directing products from producers to
customers
• Value Delivery Network- Composed of the
company, intermediaries, suppliers and consumers who
are in partnership to deliver customer value systemwide.
Why do we need channels?
• Channels create value for the consumer
• Help facilitate transactions:
- Act as information conduits
- Promote the product and company
- Provide a contact for the consumer
- Match products with the consumers needs by developing
appropriate offers
- Negotiate the terms of the sale with the consumer
• Fulfill completed transaction:
- Physically transport or store goods and products
- Finance transactions
- Assume risk in undertaking channel activities
Types of Channels
• Producer → Consumer (no intermediary)
• Producer → Retailer → Consumer
• Producer → Wholesaler → Retailer → Consumer
• Producer → agent/broker → Wholesaler →
Retailer → Consumer
Note that these intermediaries are typically independent
entities.
Vertical Marketing Systems
• System where the producer and intermediaries act
as one system.
• Corporate VMS - One entity owns the other
intermediaries.
-Example: Kroger
• Contractual VMS - Uses legal agreements between
independent producer and intermediaries to provide
product or services.
-Example: McDonalds.
• Administered VMS - System is controlled by size and
power of one of the intermediaries or the producer.
-Example: Wal-Mart.
Channel Issues and Decisions
• Number of distribution channels (coverage intensity)selective, intensive or exclusive distribution
• Conflict- horizontal and vertical
• Leadership and Power- Concept of Channel Captain
• Disintermediation
What is Supply Chain Management?
• Long term partnerships among marketing
channel members that reduce inefficiencies,
costs, and redundancies. They also develop
innovative approaches to satisfy customers.
• Emphasis is on stability for customers
Marketing Logistics
• Warehousing
• Inventory Management
• Transportation
• Logistics Information Management
Let’s Test our Knowledge!
U6.3: Supply Chain Management is
defined as long term partnerships among
marketing channel members to do which
of the following:
a)
b)
c)
d)
reduce inefficiencies
reduce costs
reduce redundancies
develop innovative approaches to satisfy
customers.
e) All of the above
Retailing
• Activities associated with providing
products to the final consumer for
their own use
Types of Retailers
• Retailers can be classified in different ways
• Amount of Service
-Self-service, limited-service or full-service
• Product Line
-Specialty, department, supermarket, convenience,
superstore
Types of Retailers
(continued)
• Relative Price
-Discount, off-price, factory outlet, warehouse
club
• Organizational Approach
-Chain, franchise
Retailer Marketing Decisions: Strategy
• Segmentation and targeting- Seeks to identify those
groups of people that the retailer will target.
• Store differentiation and positioning- Seeking to set the
retailer apart from the competition in the eyes of the
consumer.
• How might the segmentation, targeting and positioning
of Wal-Mart differ from JC Penny? What value is
created by each?
Retailer Marketing Decisions: Marketing
Mix (Product, Price, Distribution/Place, Promotion)
• Product and Service Assortment:
-Product assortment decisions impact the types of brands
that will be carried and the level of quality the assortment
will have
-Service assortment looks at the level of support, advice or
assistance that will be available for customers.
-Store atmosphere looks at what the general ambiance and
store environment will be like.
Retailer Marketing Decisions: Marketing
Mix (continued)
• Price - Looks at the prices that will be charged by the
store.
• Place - Involves where stores will be located. Will it be
stand-alone or part of a shopping center or mall? Many
bricks and mortar retailers have website retail locations
also.
• Promotion - Involves how and where the retail store
will promote to their customers and public.
Retailing Trends
• Retail life cycles are shortening and new retail forms are
appearing.
- Retailing is dynamic and always evolving
- Wheel of Retailing concept
• Slower economies means consumers are becoming
thriftier
- In difficult times consumers curtail discretionary spending
- As economic conditions improve consumers will purchase more
- Consider that some products sell better in difficult times
Retailing Trends (continued)
• Growth of non-store retailing as consumers buy off the
internet and through direct marketing
• Retail convergence is taking place where retailers sell
the same products to the same consumers across all
competition. This makes for keen competition.
• Megaretailers are increasingly becoming prevalent and
making it challenging for smaller retailers to compete on
the basis of price.
Retailing Trends (continued)
• The growth of retail technology that help retailers
manage inventory and keep track of sales
• Major retailers are expanding internationally
• Retail stores are trying to create a community
atmosphere to provide a social retail environment
Wholesaling
• Activities involving marketing intermediaries who
purchase or represent products for resale or business
use.
• Types of wholesalers
- Merchant wholesalers- Independent companies that take title to the
goods
- Agents and brokers- Do not take title to merchandise
- Manufacturer’s sales branches and offices- Owned by maker of the
products
Wholesaler Activities
•
•
•
•
•
•
•
•
Promote and sell the products they carry
Build assortments of goods for customers
Bulk-break goods for their customers
Offer warehouse services and often transport goods
Offer financing of purchases
Channel market information
Assume risk of title for manufacturers
Provide training and promotional services to retailers
What do I have to do this week?
• Reading: Chapters 10 & 11.
• Discussion: VP of Distribution!
• Research Project: Segmentation
• Quiz & Simulation: None this Week!
Professor’s Tip: U6 Research Project (and related research) not
intended to be completed in a few days, but over at least 2
weeks. So, don’t wait to the last minute to pull it together &
watch my “Professor’s U6 R.P. Help Video” for pointers!
Remember: Tuesday @ 11:59 pm is the weekly deadline.
Any Questions?
Thank you for attending!
See you next week .... Same Place, Same Time!