Marvin RyderAssistant Professor, Marketing & Entrepreneurship

MBA P715Entrepreneurship

Week 5

Definition of Marketing

The art of finding out what consumers/customers want and then giving it to them in a way better than the competition while making a profit over the long term.

Marketing Strategy – The Four P’s

Distribution or Place

Promotion

Consumer

Price

Environmental Forces Affect Marketing

StrategyEconomic

Socio-Cultural Political-Legal

Competition Technological

What is a Market?People who:

• Are willing to buy•Have choice•Have purchasing/exchange power•Have authority to buy

Can be B2C – business to consumer or B2B – business to business

Market SegmentationSince a company cannot satisfy “all of the people, all of the time,” there is a need to divide the overall market into smaller, more homo-geneous chunks (in terms of needs and wants) and then develop a marketing strategy for the one or two niches that are chosen.

Demographic SegmentationGeographic SegmentationPsychographic SegmentationBenefit Segmentation

Market Segmentation

GeographicUrban/Rural

City SizeClimateRegion

Population Density

BenefitPerceived BenefitHeavy vs. Light

Users

Consumer

PsychographicLifestyles

PersonalitySelf-Image

Market Segmentation

Market Segmentation

Boom Echo

Market Segmentations Strategies

Coke

Coke

Coke

Coke

Coke

CokeCoke

Coke

Coke

UndifferentiatedMarketing

DifferentiatedMarketing

Concentrated orNiche Marketing

Coca-Cola Company1886 to 1982

Coke

DietCoke

Sprite

Fanta

Dasani

Tab

Barq’s

MelloYello

FiveAlive

Coca-Cola Company1982 to today

RedBull

Austrian Red Bull GmbH1987 to today

Three Different Strategies Possible

Product Life Cycle & Entrepreneurs

Window ofOpportunity

Period ofLow Success