Introduction to Marketing, chapter 2

the global marketing environmentRob Simons | simons.r@nhtv.nl | @rmsimons

@rmsimons

IntroductionMy background:

• ITMC Alumnus

• Online Marketing Manager – wiki-travel guide Earth.org

• NHTV: mostly (online) marketing courses

• MSc in Marketing at VU (class of 2012)

• Born in 1980

what’s on the menu:

1. what is meant by the term ‘marketing environment’

2. the distinction between microenvironment and the macroenvironment

3. the macroenvironment4. the microenvironment5. how companies respond to environmental

change

→ chapter 5: Market Segmentation, Targeting, and Positioning

1. what is meant by ‘the marketing environment’

The marketing environment consists of the actors and forces which affect a company’s capability to operate effectively in providing products and services to is chosen markets.

It can be classified into:• the macroenvironment• the microenvironment

2. the distinction between microenvironment and the macroenvironment

Macroenvironmentconsists of a number of broader forces that affect not only the company, but also the other actors in the microenvironment.

(these are largely uncontrollable)

Macroenvironmentconsists of a number of broader forces that affect not only the company, but also the other actors in the microenvironment.

(these are largely uncontrollable)

Microenvironmentactors in the firm’s immediate environment or business system that affect its capabilities to operate effectively in its chosen markets

(to a certain extend, the company has control over these forces)

Microenvironmentactors in the firm’s immediate environment or business system that affect its capabilities to operate effectively in its chosen markets

(to a certain extend, the company has control over these forces)

“It is useless to tell a river to stop running –the best thing is to learn how to swim in the direction in which it is flowing”- Anonymous

3. the macroenvironment

follow me!

follow me!

• economic growth and unemployment• interest and exchange rates• taxation and inflation

economic forcesimpact on how well-off consumer feel, and affect their future spending on goods and

services.

• Demographic forces

• Cultural forces• Corporate social

responsibility and marketing ethics

• The consumer movement

social forceshave become very important as the impact of business on society receives more

attention

social forces (demographics: population growth

predictions)

social forces(corporate social responsibility and marketing

ethics)

• The European Union• Pro-competitive legislation• Consumer legislation • Codes of practice

political and legal forcesmay be enacted at a national or a European level and are designed to protect

consumers and ensure fair competition.

• Climate change• Pollution• Recyclable and non-

wasteful packaging• Use of environmentally

friendly ingredients• Animal testing of new

products• Use of environmentally

friendly ingredients

physical (ecological) forceschanges in the physical environment are becoming increasingly significant for both

business and consumers

InternetInternet

ComputersComputers

RoboticsRobotics

BodyScanners

BodyScanners

DVDDVD

Mobile PhonesMobile Phones

Technological ForcesTechnological Forces

technological forcestechnology is changing rapidly and needs to be constantly monitored

macroenvironmental impacts – let’s try it!

for each of the following products, assess which of the political/legal, economic, physical, social and technological

environments has had the most impact in recent years.

4. the microenvironment

• Customers• Distributors• Suppliers• Competitors

the microenvironment

REMEMBER?

actors in the firm’s immediate environment or business system that affect its capabilities to operate effectively in its chosen markets

(to a certain extend, the company has control over these forces)

REMEMBER?

actors in the firm’s immediate environment or business system that affect its capabilities to operate effectively in its chosen markets

(to a certain extend, the company has control over these forces)

environmental scanningpractice of monitoring and analysing a company’s marketing environment

Two key decisions:

• what to scan

• how to organize the activity

Two key decisions:

• what to scan

• how to organize the activity

Retrenchment

Gradual strategic repositioning

Radical strategic repositioning

Environmental change

Ignorance

Delay

Barriers to

change

responses to environmental change

Introduction to Marketing, chapter 5

market segmentation, targeting, and positioning

Rob Simons | simons.r@nhtv.nl | @rmsimons

what’s next on the menu:

1. how are segmenting, targeting and positioning connected

2. market segmentation3. target marketing4. positioning

Segmenting – the division of a diverse market into a number of smaller submarkets that have common features

1. how are segmenting, targeting and positioning connected

Targeting – refers to the choice of specific segments to servePositioning – designing the product so that it occupies a meaningful and distinct possition in the target customer’s mind

• Involves the division of a diverse market into a number of smaller submarkets that have common features.

• The objective is to identify groups of potential customers with similar requirements.

• Market segmentation provides a commercially viable method of serving customer needs.

• Segmentation is at the heart of strategic marketing.

2. market segmentationnot all customers have the same needs

• Better matching of customer needs

• Enhanced profitability

• Improved customer retention

• More effective targeting of communications

• Opportunities for segment dominance

the benefits of market segmentation

Toyota Yaris

Unashamedly

targets female

buyers

Example: Toyota

Consumer segmentation

Behavioural

Benefits sought

Purchase occasion

Purchase behaviour

Usage

Perceptions and beliefs

Lifestyle

Personality

Demographic

Socio-economic

Geographic

Psychographic Profile

segmenting consumer markets

consumer segmentation methods

Healthy living is a growing market:

brands like Lo Salt aim to capitalise on the trends towards healthier lifestyles.

Example: Lo Salt

Organisational segmentation

Purchasing

organisation

Organisational size

Industry ChoiceCriteria

Geographiclocation

segmenting organisational markets

3. target marketing

4 strategies: • undifferentiated marketing• differentiated marketing• focused marketing• customised marketing

4 strategies: • undifferentiated marketing• differentiated marketing• focused marketing• customised marketing

Marketing mix Whole market

target marketing strategies

undifferentiated marketing

PostOffic

e

• Price• Promotion• Product• Distribution

Everybody

ORGANISATION MARKETING MIX TARGET MARKET

example:example:

Marketing mix 1 Segment 1

Segment 2

Segment 3

Marketing mix 2

Marketing mix 3

target marketing strategies

differentiated marketing

example:example:

Miss Selfridges

18- 24 age group

Dorothy Perkins20s & 30s

EvansSize 16+

Arcadia Group

Marketing Mix 1

Marketing Mix 2

Marketing Mix 3

Segment 1

Segment 2

Segment 3

Marketing mix

target marketing strategies

focussed marketing

example:example:

•Product•Price•Promotion•Distribution

Bang & OlufsenMusic

systems

Upmarket consumers

Unserved

Unserved

ORGANISATION MARKETINGMIX

Price conscious consumers

Value seekers

Marketing mix 1 Customer 1

Customer 2

Customer 3

Marketing mix 2

Marketing mix 3

target marketing strategies

customised marketing

example:example:

MarketingMix 1

MarketingMix 2

MarketingMix 4

Nissan

Birdseye

Mercedes

IndustrialElectronicSystems Supplier

INDIVIDUAL MIXESORGANISATION INDIVIDUAL CUSTOMERS

4. positioning

effective positioning is the act of linking products and services to the solutions

that customers seek

effective positioning is the act of linking products and services to the solutions

that customers seek

‘people don’t want to buy a mousetrap, they want fewer mice’

Clarity Consistency

Credibility

Successful positioning

Competitiveness

keys to successful positioning

Virtually identicaldrinks that are positioned very

differently

Example: Diet Coke and Coke Zero

A

B

C

D

X

G

E

F

High price

Low price

Narrow product range

Wide product range

a perceptual map of supermarkets

repositioning strategies

Image repositioning

Product repositioning

Intangible repositioning

Tangible repositioning

Same Different

Same

Different

Target market

Product

questions?

Rob Simons | simons.r@nhtv.nl | @rmsimons

Photo references

Strange juice: http://www.flickr.com/photos/qilin/368046417/sizes/o/in/photostream/

Green Sea Turtle: http://opencage.info/pics.e/large_10895.asp

Microenvironment Ostrich: http://www.studio-kg.com/ostrich/

the dude is bored: http://awesomegifs.com/2011/05/the-dude-is-bored/

Mobile phone: http://www.flickr.com/photos/whiteafrican/2736565604/sizes/m/in/photostream

Cigarettes: http://www.flickr.com/photos/moneyblognewz/5328110795/sizes/m/in/photostream/

Cosmetics: http://www.flickr.com/photos/idhren/4660373946/sizes/m/in/photostream/

Soft drinks: http://www.flickr.com/photos/happy_serendipity/5542733405/sizes/m/in/photostream/

For sale: http://www.flickr.com/photos/sercasey/248457195/sizes/m/in/photostream/

Coins: http://www.flickr.com/photos/andresrueda/3477537829/sizes/m/in/photostream/

polution: http://www.flickr.com/photos/21787159@N00/352250460