exam 2 hours open book 3 questions answer the questions ! headings & bullet points start 6pm
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EXAM
• 2 hours open book
• 3 questions
• Answer the questions !
• Headings & bullet points
• Start 6pm
COMPETITIVE POSITIONS
Middle-of-the-roadDifferentiation Focus
Cost leadership
CN-1Cateora & Ghauri, International Marketing, European Edition, © 1999 McGraw-Hill
Country Notebook and Marketing Plan
Cultural analysis Economic analysis
Market auditand
competition analysis
Identify marketing components for adaptation
Marketing plan
Positioning PricingProduct Distribution Promotion
Demand forecasting
Market positioning
Market segmentation
Market targeting
STEPS TO AN
EFFECTIVE
SEGMENTATION OF
THE MARKET
Factors influencing per capita consumption
• Income ( GDP )
• Relative price .. Price of category versus prices in substitute cagegory
• Advertising expenditure in this market ( total compared to other categories)
• Culture
• Availability ( distribution)
• Other eg. climate
Estimating Market Demand
Historical DataHistorical Data
Local Production Plus ImportsLocal Production Plus Imports
Expert OpinionExpert Opinion
Irwin/McGraw-Hill
AnalogyAnalogy
8-10
Market outlook
Market attractiveness model
Competitive intensity outlook
Company capability
Attractiveness
Market profitabilityEnvironmental
Factors
Risk
Ris
k
Market outlook
Size of total market ( demand)o Size of the segment that you are interested in
Growth of market Potential growth of your target segment
Barriers to entry
Competitive outlook
How many competitors and what are their strengths? Big well funded? Global players ?
Are competitors competing only on price? How severe is price competition Well funded players about to enter? Many small players damaging market ( poor quality ?)
Company capability
Ease of entry into market Can we export at low risk , do we need local production
, or local partners if in service sector? Cultural factors ? How risky is the project ? Do we have resources? Do we have the capability to effectively compete in this
market ?
Market attractiveness- Risks
Risks from business environment External environment STEEP factors Risks that your marketing mix not work ( controllable
though)
Market attractiveness
Segment profitability.. How much profit can we make and what are the risks to that profit stream ?
Big markets not necessarily attractive Market attractiveness will vary from one company to
another depending upon company capabilities What is the risk profile of your company ? Are your skills transferable from one market to
another ?
Demographic
Psychographic
Behaviouristic
Geographic
BASES FOR
SEGMENTING
MARKETS
Market segmentation-behaviorial
• Divides market into groups based upon their knowledge, attitudes or responses to a product
• Occasions- when buying or using• FJ promoted outside breakfast usage• Mothers Day for cards , flowers• Benefit- find the benefits that consumers are looking
for eg.toothpaste• Usage rate- heavy , light buyers eg beer, frequent flyers
What is a Brand?
A successful brand is an identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant,
unique [sustainable]
added values which match their needs most closely.
Brand Values
• A value is an enduring belief that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end state of existence (Rokeach, 1973)
• Brand values say ‘This is what we believe in and this is how we think our business should be conducted’
• Brand values can– guide behaviour– differentiate the brand from other brands– attract people with similar values
Brand Essence Pyramid
Tutorial 3 OHT 3.9
Laddering process to determine brand values
501'sPersonality James DeanValues Self belief Authentic AssuredEmotional Rewards Sexy Original RuggedBenefits Look good Well made StrongAttributes Tight styling Made since 1870 Rivets
Brand essence to brand positioning
• How do brand owners make their brand stand out against the message clutter ? You are bombarded with messages, many of which you filter out
• Positioning is what you do to the mind of the consumer
• Positioning focuses on the functional aspects of the brand
• Brandowners need to1. Ensure that the brand meets consumers needs by occupying a
distinct, meaningful and valued place in the consumers mind2. Ensure that consumers believe that the brand will meet these needs
better than competitors ( so consumers have to know which category the brand is in )
Differentiation- ch 10
• Consumers select products / services with greatest percieved value to them
• Competitive Advantage is gained when a brand offers superior value to the target market or by providing equivalent benefits at lower prices
• Strong positions are based upon delivering better quality / value
• Positioning begins with differentiating the brand offer
brand positioning
• Positioning ( Rossiter & Percy) has 3 elements1. To... ( Target audience)2. X is the brand of.. ( Category )3. That offers ( benefit )
Diet CokeTo weight conscious adults ( target ) Diet
Coke is the brand of diet cola ( category ) that tastes best ( benefit )
Brand values / personality
• A brand is a cluster of functional & emotional benefits
• Functional benefits can be copied• Competitive advantage in brands often comes
from their emotional benefits& values• Brand positioning focusses on what a brand can
DO for the consumer( functional benefits )• Brand personality focusses on what the brand
SAYs about a consumer & how they FEEL about it
PROFITABLE
AFFORDABLE
PREEMPTIVE
COMMUNICABLE
SUPERIOR
DISTINCTIVE
IMPORTANT
Service
Product
Image
Personnel
COMPETITIVE
ADVANTAGE
Relationship marketing ( RM )- definition
• An organisation engaged in proactively creating, developing and maintaining committed, interactive and profitable excahnges with selected customers ( partners ) over time is engaged in RM– Harker 1999
The Six Markets Model - Christopher
• Customers
• Referral markets
• Suppliers
• Employees
• Influencers
• Internal markets
Tutorial 3 OHT 3.3
RM- lifetime value of a customer
• Can be calculated for individual customers ( key accounts), segments of customers, or the average customer
• Objective is to calculate future profitability of customer
• Data needed– Cost of winning customer– Periodic cost of maintaining customer– Gross margin from 1st, 2nd, nth sale – Probability customer will buy 2nd, 3rd, nth time– Number of purchases made by customer from the
company
The services triangle
Varying retail structures
• Before deciding distribution strategy need to understand retail structure
• Types of store ( supermarket, dept. store, convenience stores,gas stations, Tabacs, Mom &pop ..)
• Other trade channels .. HORECA
• Concentration
15-5Cateora & Ghauri, International Marketing, European Edition, © 1999 McGraw-Hill
Choice of channels
Factors InfluencingChoice of Channels
Capital requirement
Character
Control
Coverage Continuity
Cost
Brands discussed• McDonalds India• Unilever – services• Chocolate market
segmentation• Go, No- frills airlines• Nokia segmentation• P&G segmentation• Oolong Tea
• Nescafe• Panadol China• Colgate• Orangina• Luthansa • Sony camcorder• ManU• Nokia, Pringles, Nike
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