Transcript Marketing in a Domestic Environment

Marketing in a Domestic
Environment – Part I
Class 3
Marketing: Micro and Macro
levels
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Macro Level:
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Marketing is the process by which buyers and
sellers are brought together and discrepancies
of assortments, place, and time are resolved.
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Marketing activities include:
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Communication to inform buyers and sellers about each
other.
Negotiation and consummation of transactions
Transportation of goods from the point of production to
the point of purchase.
Storage of goods from the time of production to the time
of purchase
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Revisiting Utopinasia
David and Hugo are trading shirts and
pants
 A mutually beneficial exchange rate
has been set
 Both engaged in market-making
activities to facilitate the trade
 Benefits of trade exceed cost of
market-making activities
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Revisiting Utopinasia
Now let’s add other producers of shirts
and pants
 How will this change Hugo and
David’s approach to trade?
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What are the components of a
marketing strategy?
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STP = Marketing Strategy
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Mass Marketing or Undifferentiated Marketing: Go
after the whole market with one offer and focus on
common needs rather than differences
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Product-variety Marketing or Differentiated Marketing:
target several market segments and design separate
offers for each.
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Target Marketing or Concentrated Marketing: Large
share of one or a few sub-markets. Good when
company’s resources are limited.
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Requirements of an Effective
Segmentation
In order for a customer segmentation to be effective, it must be meaningful, actionable,
measurable and substantial
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Customers must demonstrate needs, aspirations or behavioral patterns that are similar within
a segment and different across segments
– A distinction between a price sensitive and a quality seeking segment is meaningful, since
the two segments demonstrate distinguishable sets of needs
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A company must be able to reach customers within each segment through effective and
targeted marketing programs
– A customer segment consisting of customers with blue eyes is not actionable, since it is
very hard to identify and reach only customers with blue eyes
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Segments must be large and profitable enough to make the investment in serving them
worthwhile
– myCFO.com is targeted towards high net worth individuals, helping them manage their
portfolios. Even though the number of those individuals is small, the $ amount managed
is sizeable, thus constituting a substantial segment
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Key characteristics of the segments (e.g. size and spending patterns) must be easy to
measure
Meaningful
Actionable
Substantial
Measurable
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Source: Philip Kotler, Marketing Management, 1997 (Chapter 9, page 269)
Segmentation Approaches
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Positioning
Positioning Simply, positioning is
how your target market defines you in
relation to your competitors.
 A good position:
1. Makes you unique
2. Is considered a benefit by your
target market
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Positioning Strategies
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Positioning Strategies There are seven positioning
strategies that can be pursued:
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Product Attributes: What are the specific product attributes?
Benefits: What are the benefits to the customers?
Usage Occasions: When / how can the product be used?
Users: Identify a class of users.
Against a Competitor: Positioned directly against a competitor.
Away from a Competitor: Positioned away from competitor.
Product Classes: Compared to different classes of products.
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Positioning Differences
The differences that are promoted for a product must be:
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Important: The difference delivers a highly valued benefit to the
target buyers
Distinctive: Competitors do not offer the difference, or the
company can offer it in a more distinctive way
Superior: The difference is superior to other ways that the
customer might obtain the same benefit
Communicable: The difference can be explained and
communicated to the target buyers
Preemptive: Competitors cannot easily copy the difference
Affordable: Buyers can afford to pay the difference
Profitable: Company can introduce the difference profitably
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The Marketing Task
(Controllable)
Marketing Strategy
•Segmentation
•Targeting
•Positioning
Implementatio
n• Product
• Price
• Promotion
• Distribution
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The Domestic Marketing Task
Domestic environment
(uncontrollable)
Political/
legal
forces
Competitive
structure
Marketing Strategy
•Segmentation
•Targeting
•Positioning
Implementatio
n• Product
• Price
• Promotion
• Distribution
Economic climate
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Developing a Marketing Strategy
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Situation Analysis
Segmentation and Targeting
Positioning
Marketing Objectives
Implementation - Marketing Mix
Budget
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