1 exhibit 3-1 3-3 marketing strategy planning process customers company competitors s. w. o. t....
TRANSCRIPT
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11Exhibit 3-13-3
Marketing Strategy Planning ProcessMarketing Strategy Planning Process
Customers
Company
Competitors
S.W.O.T.
Segmentation& Targeting
Differentiation& Positioning
Product Place
PromoPrice
Narrowing down to focused strategy with screening criteria
External Market Environment
TargetMarket
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What is Market Segmentation?What is Market Segmentation?
Market segmentation: The act of dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors who might require separate products and/or marketing mixes.
Market segmentation: The act of dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors who might require separate products and/or marketing mixes.
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Market SegmentationMarket Segmentation
Exhibit 3-6
3-9
Sta
tus
dim
ensi
on
Dependability dimension
A. Product-market showingthree segments
Sta
tus
dim
ensi
on
Dependability dimension
B. Product-market showingsix segments
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Bases for SegmentationBases for Segmentation
Geographic SegmentationDemographic SegmentationPsychographic SegmentationSociocultural SegmentationUsage-Situation SegmentationHybrid Segmentation Approaches
Geographic SegmentationDemographic SegmentationPsychographic SegmentationSociocultural SegmentationUsage-Situation SegmentationHybrid Segmentation Approaches
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Market Segmentation
Occupation
SEGMENTATION BASESEGMENTATION BASE SELECTED SEGMENTATION VARIABLESSELECTED SEGMENTATION VARIABLESGeographic Segmentation
Climate
Density of area
City Size
Region Southwest, Northeast
Major metropolitan cities, small cities, towns(Tire1,II,III
Urban, suburban, rural
Temperate, hot, humid, rainy
Demographic Segmentation
Income
Marital statusSexAge Under 11, 12-17, 18-34, 35-49, 50-64, 65-74, 75-99, 100+
Male, femaleSingle, married, divorced, living together, widowed
Under Rs25,000, Rs25,000-Rs34,999, Rs35,000-Rs49,999, Rs50,000-Rs74,999, Rs75,000-Rs 99,999, Rs100,000 and overEducation Some high school, high school graduate, some college, college graduate, postgraduate
Professional, blue-collar, white-collar, agricultural, military, own business
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Table 3.2, continuedSEGMENTATIONSEGMENTATION SELECTED SEGMENTATION VARIABLESSELECTED SEGMENTATION VARIABLES
Psychological Segmentation
Learning-involvement
Perception
Personality
Needs-motivation Shelter, safety, security, affection, sense of self-worth
Extroverts, novelty seeker, aggressives, low dogmatics
Low-risk, moderate-risk, high-risk
Low-involvement, high-involvement
Psychographic
Subcultures (Race/ethnic)
Religion
Cultures
(Lifestyle) Segmentation Economy-minded, couch potatoes, outdoors enthusiasts, status seekers
Gujrati, Marathi,Punjabi,Bengali,
Hindu,Muslim,Christan,Sikh
Brahmin, Kshatriya,Baniya
Family life cycle
Social class Lower, middle, upper
Bachelors, young married, full nesters, empty nesters
Attitudes Positive attitude, negative attitude
Sociocultural Segmentation
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SEGMENTATION BASSEGMENTATION BAS SELECTED SEGMENTATION VARIABLESSELECTED SEGMENTATION VARIABLES
Use-Related Segmentation
Brand loyalty
Awareness status
Usage rate Heavy users, medium users, light users, non users
Unaware, aware, interested, enthusiastic
None, some, strong
Use-Situation Segmentation
Location
Objective
Time Leisure, work, rush, morning, night
Personal, gift, snack, fun, achievement
Home, work, friend’s home, in-store
Person Self, family members, friends, boss, peers
Benefit Segmentation Convenience, social acceptance, long lasting, economy, value-for-the-money
Geodemographics “Money and Brains,” “Black Enterprise,” “Old Yankee Rows,” “Downtown Dixie-Style”
Demographic/Psychographics
Combination of demographic and psychographic profiles of consumer segments profiles
SRI VALSTM Actualizer, fulfilled, believer, achiever, striver, experiencer, maker, struggler
Hybrid Segmentation
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Using single target market approach— can aim at one submarket with one marketing mix
TheStrategy
A segmenter
3-10
Market-Oriented ApproachesMarket-Oriented Approaches
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Using multiple target market approach— can aim at two or more submarkets with different marketing mixes
StrategyThree
StrategyTwo
StrategyOne
A segmenter
Market-Oriented ApproachesMarket-Oriented Approaches
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Step 2. Market TargetingMarket Coverage StrategiesStep 2. Market TargetingMarket Coverage Strategies
Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing Mix 1
CompanyMarketing Mix 1
CompanyMarketing Mix 2
CompanyMarketing Mix 2
CompanyMarketing Mix 3
CompanyMarketing Mix 3
MarketMarket
A. Undifferentiated Marketing
B. Differentiated Marketing
C. Concentrated Marketing
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Step 2. Market TargetingChoosing a Market-Coverage StrategyStep 2. Market TargetingChoosing a Market-Coverage Strategy
Company Resources
ProductVariability
Product’s Stagein the Product Life Cycle
Market Variability
Competitors’Marketing Strategies
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Single - Segment SpecializationSingle - Segment Specialization
M3M1 M2
P1
P2
P3
Five Patterns of Target Market Selection
A firm selects one segments in the market and makes one product for them .Woodland shoes
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Selective SpecializationSelective Specialization
M3M1 M2
P1
P2
P3
Five Patterns of Target Market Selection
A firm selects a number of segments, each objectively attractive and appropriate.
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Product SpecializationProduct Specialization
M1 M2 M3
P1
P2
P3
The firm makes a certain product that it sells to several different market segments.
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Market SpecializationMarket Specialization
M3M1 M2
P1
P2
P3
The firm concentrates on serving many needs of a particular customer group.
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Full Market CoverageFull Market Coverage
M1 M2 M3
P1
P2
P3
P= Product M= Market
The firm attempts to serve all customer groups with all the products they might need. Only very large firms can attempt to do that
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Positioning StrategyPositioning Strategy
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Step 3. Choosing a Positioning Strategy Step 3. Choosing a Positioning Strategy
Step 1. Identifying Possible
Competitive Advantages
Step 2. Selecting the Right
Competitive Advantage
Step 3. Communicating and
Delivering the Chosen Position
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Step 3. Positioning for Competitive AdvantageStep 3. Positioning for Competitive Advantage
Product’s Position - the place the product occupies in consumers’ minds relative to competing products; i.e. Volvo positions on “safety”.
Marketers must:Plan positions to give products the
greatest advantageDevelop marketing mixes to create
planned positions
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Step 3. Positioning for Competitive Advantage: StrategiesStep 3. Positioning for Competitive Advantage: Strategies
Against aCompetitor
Against aCompetitor
UsageOccasions
UsageOccasions
Away fromCompetitors
Away fromCompetitors
ProductAttributes
ProductAttributes
ProductClass
ProductClass
BenefitsOffered
BenefitsOffered
UsersUsers
BB
AA
EEDD
CCHHGG
FF
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Developing Competitive DifferentiationDeveloping Competitive Differentiation
ProductProduct ServiceService
PersonnelPersonnel ImageImage
Areas for CompetitiveDifferentiation
Areas for CompetitiveDifferentiation
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ServicesDifferentiation
(e.g., speed, convenience, careful
delivery)
Product Differentiation
(e.g., consistency, durability, reliability,
repairability)
People Differentiation
(e.g., hiring, training better
people than competitors)
ImageDifferentiation
(e.g., convey benefits and positioning)
ChannelDifferentiatio
n
Identifying Possible Competitive Advantages
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Selecting the Right CompetitiveAdvantagesSelecting the Right CompetitiveAdvantages
Criteriafor
DeterminingWhich
Differencesto
PromoteAffordableAffordable SuperiorSuperior
ProfitableProfitable
PreemptivePreemptive
DistinctiveDistinctive
ImportantImportant
CommunicableCommunicable
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Positioning:
On what does Volvo position?
What about:
•Saab?•Lexus?
Click or press spacebar to return.
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Communicating and Delivering the Chosen Position
Communicating and Delivering the Chosen Position
Company must take strong steps to deliver and communicate the desired position to target consumers.
The marketing mix efforts must support the positioning strategy.
Must monitor and adapt the position over time to match changes in consumer needs and competitors’ strategies.
Company must take strong steps to deliver and communicate the desired position to target consumers.
The marketing mix efforts must support the positioning strategy.
Must monitor and adapt the position over time to match changes in consumer needs and competitors’ strategies.
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“Product Space” Representing Consumers’ Perception for Different Brands of Bar Soap
Nondeodorant Deodorant
High moisturizing
Low moisturizing
1
24
5
7
8
6
3
• LUX International
• Cinthol
Santoor
• Margo• Lifebuoy
•Medimix
• Lux
• Dove
• Pears
Positioning of Different Bar SoapsPositioning of Different Bar Soaps
3-14
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Positioning ErrorsPositioning Errors
Underpositioning: Failing to really position the
company at all.Overpositioning:
Giving buyers too narrow a picture of the company.
Confused Positioning: Leaving buyers with a confused
image of a company.
Underpositioning: Failing to really position the
company at all.Overpositioning:
Giving buyers too narrow a picture of the company.
Confused Positioning: Leaving buyers with a confused
image of a company.
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Rest Stop: Reviewing the ConceptsRest Stop: Reviewing the Concepts
Define the three steps of target marketing: market segmentation, market targeting, and market positioning.
List and discuss the major bases for segmenting consumer and business markets.
Explain how companies identify attractive market segments and choose a target marketing strategy.
Discuss how companies position their products for maximum competitive advantage in the marketplace.
Define the three steps of target marketing: market segmentation, market targeting, and market positioning.
List and discuss the major bases for segmenting consumer and business markets.
Explain how companies identify attractive market segments and choose a target marketing strategy.
Discuss how companies position their products for maximum competitive advantage in the marketplace.
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NEW PRODUCT DEVELOPMENT NEW PRODUCT DEVELOPMENT
Explain how companies find and develop new-product ideas.
List and define the steps in the new-product development process.
Describe the stages of the product life cycle.
Describe how marketing strategies change during the product’s life cycle.
Explain how companies find and develop new-product ideas.
List and define the steps in the new-product development process.
Describe the stages of the product life cycle.
Describe how marketing strategies change during the product’s life cycle.
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NEW PRODUCT
DEVELOPMENT
NEW PRODUCT
DEVELOPMENT
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New-Product Development Strategy New-Product Development Strategy
Strategies for Obtaining New-Product Ideas
Acquisition of:
Companies
Patents
Licenses
Acquisition of:
Companies
Patents
Licenses
New Products:
Original Products
Improvements
Modifications
New Products:
Original Products
Improvements
Modifications
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New-Product FailuresNew-Product Failures
Only 10% of new products are still on the market and profitable after 3 years.
Failure rate for industrial products is as high as 30%.
Why?Overestimation of market sizeDesign problemsIncorrectly positioned, priced, or advertisedPushed despite poor marketing research findingsDevelopment costsCompetition
Only 10% of new products are still on the market and profitable after 3 years.
Failure rate for industrial products is as high as 30%.
Why?Overestimation of market sizeDesign problemsIncorrectly positioned, priced, or advertisedPushed despite poor marketing research findingsDevelopment costsCompetition
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Major Stages in New-Product DevelopmentMajor Stages in New-Product Development
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New-Product Development Process
IdeaGeneration
Ideas from:Customers and usersMarketing
researchCompetitorsOther
marketsCompany
peopleIntermediaries
Screening
Strengthsand
weaknessesFit with
objectivesMarket
trendsRough ROI
estimate
IdeaEvaluation
Concepttesting
Customerreactions
Roughestimatesof cost, sales,
profits
Development
R & DDevelop
model orserviceprototype
Testmarketingmix
Revise plansas needed
ROI estimate
Commercial-ization
Finalizeproduct andmarketingplan
Startproduction
and marketing
“Roll out” in selectmarkets
Final ROIestimate
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Company EmployeesCompany Employees
CustomersCustomers
CompetitorsCompetitors
DistributorsDistributors
SuppliersSuppliers
Flow of Ideas and Product
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Idea ScreeningIdea Screening
Process to spot good ideas and drop poor ones.
Develop system to estimate: market size, product price, development time and costs, manufacturing costs, and rate of return.
Evaluate these findings against set of company criteria for new products.
Process to spot good ideas and drop poor ones.
Develop system to estimate: market size, product price, development time and costs, manufacturing costs, and rate of return.
Evaluate these findings against set of company criteria for new products.
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Concept Development and TestingConcept Development and Testing
Product Idea: idea for a possible product that the company can see itself offering.
Product Concept: detailed version of the idea stated in meaningful consumer terms.
Product Image: the way consumers perceive an actual or potential product.
Product Idea: idea for a possible product that the company can see itself offering.
Product Concept: detailed version of the idea stated in meaningful consumer terms.
Product Image: the way consumers perceive an actual or potential product.
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Marketing Strategy Development
Part One Describes:The Target Market
Planned Product PositioningSales, Market Share, & Profit Goals
Part One Describes:The Target Market
Planned Product PositioningSales, Market Share, & Profit Goals
Part Two Outlines the First-Year’s:Product’s Planned Price
DistributionMarketing Budget
Part Two Outlines the First-Year’s:Product’s Planned Price
DistributionMarketing Budget
Part Three Describes Long-Run:Sales & Profit Goals
Marketing Mix Strategy
Part Three Describes Long-Run:Sales & Profit Goals
Marketing Mix Strategy
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Business AnalysisBusiness Analysis
Involves a review of the sales, costs, and profit projections to assess fit with company objectives.
If yes, move to the product development phase.
Involves a review of the sales, costs, and profit projections to assess fit with company objectives.
If yes, move to the product development phase.
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Product DevelopmentProduct Development
Develop concept into physical product
Calls for large jump in investment
Prototypes are made
Prototype must have correct physical features and convey psychological characteristics
Develop concept into physical product
Calls for large jump in investment
Prototypes are made
Prototype must have correct physical features and convey psychological characteristics
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Test MarketingTest Marketing
Product and program introduced in more realistic market setting.
Not needed for all products.
Can be expensive and time consuming, but better than making major marketing mistake.
Product and program introduced in more realistic market setting.
Not needed for all products.
Can be expensive and time consuming, but better than making major marketing mistake.
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Test MarketingTest Marketing
Nokia test-marketed its new N-Gage cell phone/mobile game player extensively before introducing it worldwide.
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CommercializationCommercialization
Must decide on timing (i.e., when to introduce the product).
Must decide on where to introduce the product (e.g., single location, state, region, nationally, internationally).
Must develop a market rollout plan.
Must decide on timing (i.e., when to introduce the product).
Must decide on where to introduce the product (e.g., single location, state, region, nationally, internationally).
Must develop a market rollout plan.
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Organizing New-Product DevelopmentOrganizing New-Product Development
Sequential Approach: each stage completed before moving to next phase of the project.
Simultaneous Approach: Cross-functional teams work through overlapping steps to save time and increase effectiveness.
Sequential Approach: each stage completed before moving to next phase of the project.
Simultaneous Approach: Cross-functional teams work through overlapping steps to save time and increase effectiveness.
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THEORY OF DIFFUSION OF A NEW PRODUCTTHEORY OF DIFFUSION OF A NEW PRODUCT
21/2 % INNOVATORS
131/2%
EARLY ADOPTERS
34%LATE
MAJORITY16%
LAGGARDS
34%EARLY
MAJORITY
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THE CONSUMER ADOPTIONPROCESS (STAGES IN THE ADOPTION PROCESS )THE CONSUMER ADOPTIONPROCESS (STAGES IN THE ADOPTION PROCESS )
Awareness : The consumer becomes aware of the innovation but lacks information about it.
Interest : The consumer is stimulated to seek information about the innovation.
Evaluation : The consumer considers whether to try the innovation.
Trial : The consumer tries the innovation to improve his or her estimate of its value.
Adoption : The consumer decides to make full and regular use of the innovation.
Awareness : The consumer becomes aware of the innovation but lacks information about it.
Interest : The consumer is stimulated to seek information about the innovation.
Evaluation : The consumer considers whether to try the innovation.
Trial : The consumer tries the innovation to improve his or her estimate of its value.
Adoption : The consumer decides to make full and regular use of the innovation.