43924903 approach to solving marketing problems with frameworks

8/8/2019 43924903 Approach to Solving Marketing Problems With Frameworks

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The Probable Decisions are!!!

To which consumer should I sell mywatches?How should I define the consumer I hope to

serve?Should I think in terms of geography,perhaps the country in which my consumer

lives?Or may be the consumers income or sex or

fashion orientation is more important?


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What Product or Products should I offer?For example should I offer digital or analog,

ornate or simple, multifunction or singlefunction?How much should I charge for each watch?

Should I offer discounts to people who paycash or who buy in large amounts?


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Should I sell direct to consumers or throughstores, and if through stores, what type ofstores?

Do I want to offer my product in severaltypes of outlet or only in one type?How do I select and service the particular

outlets I Chose?Finally, How do I convince the store to carrymy brand?


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How should I communicate to theconsumers to whom I wish to sell?

Do I use advertising, and if so in whatmedia?How do I reach the stores? Do I use sales

people?

Should the salespeople visit the stores orshould they just telephone them?


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Holistic Marketing

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Views on the Marketing Processes

5-C Analysis

Customer

CompetitorCompany

Collaborators

Context

S-T-P Marketing

SegmentationTargeting

Positioning

4 Ps Marketing Plan

ProductPricing

Promotion

Place

The Functional View


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Competition

Competition

Pricebased

Qualitybased

Timebased

LocationBased


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Views on the Marketing

Processes

UnderstandingCustomer

Value

CreatingCustomer

Value

The Process View

CapturingCustomer

Value

DeliveringCustomer

Value

SustainingCustomer

Value


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Understanding Customer Value

Psychological

Functional Economic


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Value Delivery System

Customer Type A

Customer

Type B

CustomerType C

CustomerType D

Customer

Type E

Traditional Understanding of Market Spaces Ideal Understanding of Market Spaces

2010

VDS A

VDS BVDS C

VDS D

VDS E

2020


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Demand is never for a particular product; it is alwaysfor the value being deliveredVDSs look at the entire value chain and not at only

the end customersEstimate the future potential wealth of the VDS

rather than the future potential revenue from thecustomersA market space is usually defined by a large set of

related potential VDSsOther competing VDSs should always be kept in

mind while evaluating a particular VDS (analogous toThreat of Substitutes in Porters Five Forces)

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Value Delivery System


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B2C Buying Cycle


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B2B Buying Cycle


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Steps in Market Segmentation,

Targeting,and Positioning

1. Identify

segmentationvariables andsegment themarket

2. Developprofiles ofresultingsegments

MarketSegmentation

3. Evaluateattractivenessof eachsegment

4. Select the

targetsegment(s)

MarketTargeting

5. Identify

possiblepositioning

concepts foreach target

segment

6. Select,develop, andcommunicate

the chosenpositioning

concept

MarketPositioning


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Why Segmentation ? Not all buyers alike

Subgroups may be identified

Subgroups smaller and more homogeneous Easier to satisfy smaller groups


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How to Segment & Target?

1.Breakmarketdown

2.Groupinto

segments

TARGET MARKET

3.Choosetargetmarket


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Basic Market-Preference Patterns

(a) Homogeneouspreferences

Quality

Ec

onomy

(c) Clusteredpreferences

Ec

onomy

Quality

(b) Diffusedpreferences

Ec

onomy

Quality


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Bases for Segmenting Consumer

Markets

Demographic

Socio-graphicLifestyle

Geographic

Behavior

Consumption

Predispositions


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VALS Framework


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Bases for Segmenting Business

Markets

GeographyOrganizational charateristics

Purchase behavior

Usage patterns

Organizational predispositions


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Size, purchasing power, profilesof segments can be measured.

Segments can be effectivelyreached and served.

Segments are large or profitableenough to serve.

Measurable

Accessible

Substantial

Differential

Actionable

Segments must responddifferently to different marketingmix elements & programs.

Effective programs can bedesigned to attract and serve

the segments.

Step 1. Market Segmentation

Requirements for Effective Segmentation


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Segment 1

Segment 2

Segment 3

Segment 1

Segment 2

Segment 3

CompanyMarketing

Mix

CompanyMarketing

Mix

CompanyMarketing Mix 1



Market

A. Undifferentiated Marketing

B. Differentiated Marketing

C. Concentrated Marketing

Step 2. Market Targeting

Market Coverage Strategies


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Company Resources

Product Variability

Products Stage in the Life Cycle

Market Variability

Competitors Marketing Strategies

Step 2. Market Targeting

Choosing a Market-CoverageStrategy


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Step 3. Choosing a Positioning

Strategy Products Position - the way the product is defined by

consumers on important attributes - the place theproduct occupies in consumers minds relative to

competing products. Marketers must:

Plan positions to give their products the greatestadvantage in selected target markets,

Design marketing mixes to create these plannedpositions.


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Positioning The way consumers perceive the brand relative to its

competition

ID competitive advantage

Stress salient characteristics

Differentiate


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ServicesDifferentiation

i.e. Delivery, Installation,

Repair Services, CustomerTraining Services

ProductDifferentiation

i.e. Features,

Performance, Style &Design, or Attributes

Image

Differentiationi.e. Symbols,

Atmospheres, Events

Personnel

Differentiationi.e. Hiring, TrainingBetter People Than

Competitors Do

Identifying Possible Competitive

Advantages


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Five Patterns of Target Market SelectionSingle-segmentconcentration

Productspecialization

M1 M2 M3P1

P2

P3

Selectivespecialization

M1 M2 M3

P1

P2

P3

M1 M2 M3

Full marketcoverage

P1

P2

P3

Marketspecialization

M1 M2 M3P1

P2

P3

P1

P2

P3

M1 M2 M3

P = ProductM = Market


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Gender

F

M

Age14 - 21 22 - 29

G

eographyJapan

WesternEurope

U.S.

Segment Cross-Classification: Aerobic Shoes


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Positioning: Tea - Late 1990s

Iced Hot

Traditional flavor

Unique flavor

Lipton

Tetley

Nestea

Lipton Rounds

Tetley Rounds

Lipton Natural Teas

Lipton Flavored


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4 Ps of Marketing

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43924903 approach to solving marketing problems with frameworks

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