copy of smm spring 2010

8/7/2019 Copy of SMM Spring 2010

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Marketing is Managing profitable customer relationships.

Fulfilling customers wants and desires in order

to make a profit

The process by which companies create value for customers

and build strong customer relationships in order to capture

value from customers in return

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New Definition of Marketing (est. in 2007)

Marketing is the activity, set of institutions,

and processes for creating, communicating,

delivering, and exchanging offerings that havevalue for customers, clients, partners, and

society at large.

(American Marketing Association)

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Product/

Service

Producer/Deliverer

Retailer

Distributor

Wholesaler Customer

RESEARCH

Attitude Behavior

Characteristics

Necessity

/DesireExisting Concept

MARKETING OUTLINE

MARKETING

AS A FIELD

OF STUDY

OPERATIONS

CONSUMER

BEHAVIOUR

4Ps

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Anticipating customer need

Developing and Selling ProductConcept

Creating/anticipating demand

Fulfilling demand

Making and delivering a product to thecustomer

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MARKETING PROCESS

Understand the marketplace,customer needs and wants

Design a Marketing Strategy

Construct a marketingprogram

Build Profitable relationshipswith Customers

Capture value from customersin return


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Marketing

Management

Orientations

Production Concept

Product Concept

The idea that consumers will favourproducts that are available and highlyaffordable

The idea that consumers will favourproducts that offer the most in quality,performance and features and that

organizations should therefore devote all itsefforts to make continuous productimprovements

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Selling Concept

Marketing Concept

The idea that consumers will not buy enoughof the firms products unless it undertakesa large scale selling and promotion effort

The marketing management concept holdsthat achei8ving organizational goals depends

on knowing the needs and wants of targetmarkets and delivering the desiredsatisfactions better than competitors do.

Marketing

Management

Orientations

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Marketing

Management

Orientations

A principle of enlightened marketing thatholds that a company should make goodmarketing decisions by considering

consumers wants, the companysrequirements, consumers long terminterests and societys long run interests

Societal Marketing Concept

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Psychological Factors

Perception Learning

Beliefs &

Attitudes

Motivation

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Model of Consumer Behavior

BuyingDecision process

Problem recognitionInformation searchEvaluation of

alternativesPurchase decisionPostpurchase

behavior

Otherstimuli

EconomicTechnologicalPoliticalCultural

ConsumerPsychology

MotivationPerception

LearningMemory

Purchase Decision

Product choiceBrand choiceDealer choicePurchase timing

Purchase amount

Marketingstimuli

ProductPricePlacePromotion

Consumercharacteristics

CulturalSocialPersonalPsychological

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NEED RECOGNITION

INFORMATION SEARCH

PURCHASE DECISION

POSTPURCHASE BEHVIOR

EVALUATION OF ALTERNATIVES

BUYERDECISIONPROCESS

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Steps Between Evaluation of Alternatives and a

Purchase Decision

EvaluationEvaluationofof

alternativesalternatives

Purcha

sedecision

Unanticipatedsituational

factors

Attitudeof others

Purcha

seintention

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MARKET

INTELLIGENCE

CONSUMER

BEHAVIOUR

Decision

Heuristics and

Biases

Rules of thumb or mental shortcuts in

the decision process

Availability Heuristic: Consumers base

their predictions on the quickness and

ease with which a particular example of

an outcome comes to minds

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MARKET

INTELLIGENCE

CONSUMER

BEHAVIOUR

Decision

Heuristics and

Biases

Representativeness Heuristic:

Consumers base their predictions on

how representative or similar the

outcome is to other examples

Anchoring and Adjustment Heuristic:

Consumers arrive at an initial judgment

and them make adjustments of that first

impression based on additionalinformation.

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MARKET

INTELLIGENCE

CONSUMER

BEHAVIOUR

Mental

Accounting

The manner by which consumers code,

categorize and evaluate financial outcomes

of choices

Prospect Theory

Consumers frame decision alternatives in

terms of gains and losses according to a

value function. Consumers are generally lossaverse. They tend to overweight very low

probabilities and underweight very high

probabilities

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MARKET

INTELLIGENCE

CONSUMER

BEHAVIOUR

Mental

Accounting

The manner by which consumers code,

categorize and evaluate financial outcomes

of choices

Prospect Theory



value function. Consumers are generally lossaverse. They tend to overweight very low


probabilities

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MARKET

INTELLIGENCE

CONSUMER

BEHAVIOUR

Mental

Accounting

Consumers tend to segregate gains

Consumers tend to integrate losses

Consumers tend to integrate smaller losses

with larger gains. Cancellation Principle

Consumers tend to segregate small gains

from large losses. Silver-lining Principle

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MARKET

INTELLIGENCE

CONSUMER

BEHAVIOUR

Mapping the

Customers

Consumption

System/Customer

Activity

Cycle/CustomerScenario

How are consumers thinking?

Introspective method

Retrospective method

Prospective method

Prescriptive method

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MARKET

INTELLIGENCE

CONSUMER

BEHAVIOUR

Biases in Decision

Making by

Marketing

Managers

Fooling yourself about feedback

Not keeping track

Failure to audit your decision process

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Problem Recognition

General Need Description

Product Specification

Supplier Search

Proposal Solicitation

Supplier Selection

Order Routine Specification

Performance ReviewPostPost

PurchasePurchase

PurchasePurchase

InfoInfo

Search/Search/

EvalEval

NeedNeed

RecognitionRecognition

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Participants in the Business Buying

Process

Gatekeepers

Initiators

Buyers

Influencers

Deciders

Users

Approvers

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Four Types of Buying Behavior

Complex

Buying

Behavior

Dissonance-Reducing Buying

Behavior

Variety-

Seeking

Behavior

HabitualBuying

Behavior

Significantdifferences

betweenbrands

Fewdifferences

betweenbrands

HighInvolvement

LowInvolvement

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Product

Place

Promotion

Price

(features, quality, service, support,product line etc.)

(channel of distribution,exclusive vs. intensive, etc.)

(advertising, sales force,brochures, coupons, etc.)

(list price, discount, deals, both end-userand channel)

TheMarketingMix

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Packaging (Physical Evidence)

Positioning (Process)

People

TheMarketingMix

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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

Preferences Segments

Homogeneous preferences

Diffused preferences

Clustered preferencesSEGMENT

MARKETIN

G

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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

Customers with distinct set of needs

Pay premium to a firm that best satisfies

their needs

Unlikely to attract other competitors

Nicher gains certain economies through

specialization

Niche has size, profit and growth potential

Fairly small and attract few competitors

NICHE

MARKETING

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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

LOCAL MARKETING

CUSTOMERIZATION

Customized Marketing

One-to-one Marketing

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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

GEOGRAPHIC

VARIABLES

Geographic region

City size

Density

Climate

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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

DEMOGRAPHIC

VARIABLES

Demographic age

Family size

Family Life cycle

Gender

Income

Occupation

Education

Religion

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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

DEMOGRAPHIC

VARIABLES

Race

Generation

Nationality

Social Class

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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

PSYCHOGRAPHIC

VARIABLES

Psychographic Lifestyle

(Culture oriented, Sports oriented, Outdoor

oriented)

Personality

(Compulsive, Gregarious, Authoritarian,

Ambitious)

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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

PSYCHOGRAPHIC

VARIABLES

Innovators

Survivors

Thinkers

Believers

Achievers

Strivers

Experiencers

Makers

Ideals Achievement Self-Expression

Primary

Motivation

High Resource

High Innovation

Low Resource

Low Innovation38


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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

PSYCHOGRAPHIC

VARIABLES

Groups with Higher Resources

Innovators Successful, Sophisticated, Active,

Take Charge people, with high self esteem.

Purchases often reflect cultivated tastes for

relatively upscale, niche-oriented products andservices

Thinkers Mature, satisfied and reflective people

who are motivated by ideals and value order,

knowledge and responsibility. Favour durability,

functionality and value in products

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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

PSYCHOGRAPHIC

VARIABLES

Groups with Lower Resources

Makers Practical down-to-earth, self-sufficient

people who like to work with their hands. Favour

products with a practical or functional purpose.

Survivors Elderly, passive people who are

concerned about change. Loyal to their favourite

brands

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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

BEHAVIORAL

VARIABLES

Behavioral Occasions

(Regular Occasion, Special Occasion)

Benefits

(Quality, Service, Economy, Speed)

User Status

(Non-user, Ex-user, Potential User, First time

user, Regular User)

Usage Rate

(Light user, Medium user, Heavy user)

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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

BEHAVIORAL

VARIABLES

The Conversion Model

Measures the strength ofPsychological

Commitment between brands and

consumers and their willingness and

openness to change

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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

CONVERSION

MO

DEL -U

sers

COMMITTMENT

LOW

HIGH

CONVERTIBLE

SHALLOW

AVERAGE

ENTRENCHED

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MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

STEPS IN

SEGME

NTATI

ON

PROCESS

1. Needs Based Segmentation

2. Segment Identification

3. Segment Attractiveness

4. Segment Profitability

5. Segment Positioning Value Proposition

6. Segment Acid Test - Segment Story Board

7. Marketing-Mix Strategy

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BRAND EQUITY

Executive Summary

Table ofContents

Situation Analysis

Marketing Strategy

Financial Projections

Implementation

C

ontrols

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BRAND EQUITY

BRANDING

Benefits of Branding to Companies

Simplify Product Handling or tracing

Organize inventory and accounting records

Legal Protection (Intellectual Property)

BrandName Registered Trademarks

Manufacturing Process Patents

P

ackaging C

opyrights and designs Brand Loyalty

Predictability of Demand

Entry barriers for competition

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BRANDING

Benefits of Branding Marketing Advantages

Improved Perceptions ofProduct Performance

Greater Loyalty

Less Vulnerability to Competitive Marketing Actions

Larger Margins

More Inelastic Consumer Response to Price

Increases

More Elastic Consumer Response to Price Decreases

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BRANDING

Benefits of Branding Marketing Advantages

Greater Trade Cooperation and Support

Increased Marketing Communication Effectiveness

Possible Licensing Opportunities

Additional Brand Extension Opportunities

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ProductPRODUCT LINE

A group of products that are closely related becausethey function in a similar manner, are sold to the samecustomer groups, are marketed through the sametypes of outlets or fall within given price ranges

PRODUCT MIX

The set of all product lines and items that a particularseller offers for sale

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ProductBRAND NAME SELECTION

- Selection

- Protection

BRAND SPONSORSHIP

- Manufacturers brand

- Private brand

- Licensing

- Co-branding

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Price

PRICING APPROACHES

Cost based Pricing

Cost Plus pricing Add standard profit(mark-up) to the cost of the product

Break-Even Analysis and Target Profit Pricing

Value-based pricing

Setting price based on buyers perceptions ofvalue rather than on the sellers cost

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Price

PRODUCT MIX PRICING STRATEGIES

Captive Product Pricing

Setting a price for products that must be usedalong with a main product e.g blades for razors,

cartridges for printers

By-Product Pricing

Setting a price for by products in order to makethe main products price more competitive

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Price

PRICE ADJUSTMENT STRATEGIES

Discount

Allowance

Segmented Pricing

Psychological

Geographical

Promotional

International

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CustomerSatisfaction - Elements of company performance

- On-time transportation

- Completeness of order

- Repurchase intention

- Product Quality

- Customer Service

Measuring Satisfaction

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MARKETING

MANAGEMENT

TASKS

Developing Marketing Strategies and

Plans

Capturing Marketing Insights

Connecting with Customers Building Strong Brands

Shaping the Market Offerings

Delivering Value Communicating Value

Creating Long-term Growth

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Levels of Management

T

M

O

STRATEGY

FORMULATION

LEVELS


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Levels of Management

VISION

MISSION

STRATEGY

STRATEGY

FORMULATION

LEVELS

PLANS

TACTICS

T

M

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STRATEGY

FORMULATION

LEVELS Product / Brand Level

SBU Level

Corporate Level

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ANALYSIS TOOLS

BCG Matrix

SWOT Analysis / TOWS Analysis

Customer Matrix

Customer Profitability Analysis

Intensive Growth Strategies

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MARKET

INTELLIGENCE

Market Scanning

Internal

External

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MARKET

INTELLIGENCE

Sales Force to spot and report new

development

Distributors, Retailers and other

intermediaries

External Networking competitor products,

trade shows, competitor reports,

Advisory Panel

Government data resources

Information Suppliers Gartner, ACNielsen,

Biz360

Customer feed back

External

MARKET

INTELLIGENCE

Market Scanning

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MARKET

INTELLIGENCE Demographic Environment

Population growth, Age Mix, Household

patterns Economic Environment

Geographical shifts in population,

Income redistribution, Credit culture

Social & Cultural Environment

Application of

Factors on

Environments

MARKET

INTELLIGENCE

Market Scanning

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MARKET

INTELLIGENCE Social & Cultural Environment

- Core Values

- Secondary Beliefs

Application of

Factors on

Environments

MARKET

INTELLIGENCE

Market Scanning

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MARKET

INTELLIGENCE Natural Environment

- Consumption of vital resources

- Oil, Water, Metals, Nuclear

Materials

- Global Warming, Weather

patterns

Application of

Factors onEnvironments

MARKET

INTELLIGENCE

Market Scanning

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Define the problem andresearch objectives

Develop the research plan

Collect the Information

Analyze the information

Present the findings

Make the decision

Process

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Step - 1

What is the problem?

Research objectives?

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Step 2

Research Plan

RESEARCH APPROACHES

Observational Research

Focus Group Research

Survey Research

Behavioral Data

Experimental Research

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Step 2

Research Plan

RESEARCH INSTRUMENTS

Qualitative Measures

Shadowing

Behaviour mapping

Consumer journey

Camera journals

Extreme user interviews

Unfocus groups

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Measuring

Marketing

Productivity

Market Share

Overall Market Share

Served Market Share

Relative Market Share

Companys sales expressed as a percentage of total market sales

Is all the buyers who are willing and able to buy a companysproduct

A market share that is in comparison with the market leader

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Measuring

Marketing

Productivity

Market Share

Overall Market Share

Overall Market Share = Customer Penetration

X

Customer Loyalty

X

Customer Selectivity

X

Price Selectivity

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Measuring

Marketing

Productivity

Customer Penetration

Customer Loyalty

Customer Selectivity

Price Selectivity

% of all customers who buy formthe company

Purchases made by customers as a

% of total purchases made from all

suppliers

Size of the average customer purchase

from the company expressed as a % of

the average customer purchase from an

average company

Average price charged by the

company as a percentage of the

average price charged by all

companies

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Measuring

Marketing

Productivity

Sales Analysis

Sales variance analysis

Micro-sales analysis

Expense to Sales Analysis

Financial Analysis

DuPont Analysis

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Forecasting and

Demand

Measurement

Measures of Market Demand

Potential Market: Is the set of

consumers who profess a sufficient levelof interest in a market offer. They must

have enough income and have access to

the product offer.

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Forecasting and

Demand

Measurement


Available Market: Is the set of

consumers who have interest, income,access and qualifications for the

particular market offer.

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Forecasting and

Demand

Measurement


Target Market: Is the part of the

qualified market that the companydecides to pursue.

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Forecasting and

Demand

Measurement

Market Demand

Is the total volume that would be

bought by a defined consumer group, ina defined geographical area in a defined

time period, in a defined marketing

environment under a defined marketing

program

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Forecasting and

Demand

Measurement

Estimating Future Demand

Past Data Analysis

Time-Series analysis

Exponential Smoothing

Statistical Demand Analysis

Econometric Analysis

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MARKET

INTELLIGENCE

MARKETING

RESEARCH

Forecasting and

Demand

Measurement

Estimating Future Demand

Survey of buyers intentions

Composite of sales force opinion

Expert Opinion

Market Test Method

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Analysis ofCapabilities

Porters

Value Chain

SWOT - TOWS

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AirTel

SWOT - TOWS

Strengths Bharti Airtelhas more than 65 million customers (July

2008). It is the largest cellular provider in India, and also

supplies broadband and telephone services - as well as many

other telecommunications services to both domestic and

corporate customers.

Other stakeholders in Bharti Airtel include Sony-Ericsson,

Nokia - and Sing Tel, with whom they hold a strategic

alliance. This means that the business has access to

knowledge and technology from other parts of the

telecommunications world.

The company has covered the entire Indian nation with its

network. This has underpinned its large and rising customer

base.

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AirTel

SWOT - TOWS

Weaknesses

SBU technical as well as organizational capabilities are

outsourced.

As opposed to competitors (Hutshison Essar), Key

Infrastructure (Communication Towers) are not owned byAirTel.

Lack of any resolve to develop future markets once the

Indian market has become mature.

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Environmental

Risk

SWOT - TOWS

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Environmental

Analysis

SWOT - TOWS

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Ratios

Performance

Analysis

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Profit Impact of

Market Strategy

Performance

Analysis

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Profit Impact of

Market Strategy

Performance

Analysis

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Portfolio Analysis

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Portfolio Analysis

War Horses Dodos

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Portfolio Analysis

1. Build

2. Hold

3. Harvest

4. Divest

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SALES (In thousands)

PRODUCTS

LAPTOPS 2007 2008 2009


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Portfolio Analysis

LAPTOPS 2007 2008 2009

Sony 300 400 410

Toshiba 400 450 470

Dell 425 500 490Acer 600 610 500

IBM 100 90 75

HARD DISK DRIVES

Seagate 900 1050 2000

Toshiba 800 700 900

Samsung 810 811 900

TV

Sony 2000 2100 1500

LG 980 1500 2000

Samsung 1000 920 1700

Sharp 800 900 800

Toshiba 1200 1800 1300

DVD PLAYERS

Toshiba 700 900 1800

Sony 1000 2000 1070

LG 900 1600 1500

Samsug 400 1000 1200

Phillips 1000 950 1100

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Model of Consumer Behavior


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BuyingDecision process

Problem recognitionInformation searchEvaluation of

alternativesPurchase decisionPostpurchase

behavior

Otherstimuli

EconomicTechnologicalPoliticalCultural

ConsumerPsychology

MotivationPerceptionLearning

Memory

Purchase Decision

Product choiceBrand choiceDealer choicePurchase timingPurchase amount

Marketingstimuli

ProductPricePlacePromotion

Consumercharacteristics

Cultural

SocialPersonalPsychological

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ComplexBuying

Behavior

Dissonance-

Reducing Buying

Behavior

Variety-Seeking

Behavior

Habitual

Buying

Behavior

Significantdifferencesbetweenbrands

Few

differencesbetweenbrands

HighInvolvement

LowInvolvement

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MARKET

INTELLIGENCE

CONSUMER

BEHAVIOUR

Decision

Heuristics and

Biases

Rules of thumb or mental shortcuts in

the decision process

Availability Heuristic: Consumers basetheir predictions on the quickness and

ease with which a particular example of

an outcome comes to minds

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MARKET

INTELLIGENCE

CONSUMER

BEHAVIOUR

Decision

Heuristics and

Biases

Representativeness Heuristic:Consumers base their predictions on

how representative or similar the

outcome is to other examples

Anchoring and Adjustment Heuristic:

Consumers arrive at an initial judgment

and them make adjustments of that first

impression based on additionalinformation.

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MARKET

INTELLIGENCE

CONSUMER

BEHAVIOUR

Mental

Accounting

The manner by which consumers code,categorize and evaluate financial outcomes

of choices

Prospect Theory



value function. Consumers are generally loss

averse. They tend to overweight very low


probabilities

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MARKET

INTELLIGENCE

CONSUMER

BEHAVIOUR

Mental

Accounting

The manner by which consumers code,categorize and evaluate financial outcomes

of choices

Prospect Theory



value function. Consumers are generally loss

averse. They tend to overweight very low


probabilities

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MARKET

INTELLIGENCE

CONSUMER

BEHAVIOUR

Mental

Accounting

Consumers tend to segregate gains

Consumers tend to integrate losses

Consumers tend to integrate smaller losses

with larger gains. C

ancellationP

rinciple Consumers tend to segregate small gains

from large losses. Silver-lining Principle

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MARKET

INTELLIGENCE

CONSUMER

BEHAVIOUR

Mapping theCustomers

Consumption

System/Customer

Activity

Cycle/Customer

Scenario

How are consumers thinking?

Introspective method

Retrospective method

Prospective method

Prescriptive method

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MARKET

INTELLIGENCE

COMPETITION 1 Against whom are we competing?

2What strengths and weaknesses do they

possess?

3What are their objectives?

4What strategies are they pursuing and how

successful are they?

5 How are they likely to behave and, in

particular, how are they likely to react to

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MARKET

INTELLIGENCE

COMPETITION

Levels of

Competition

1 Competition consists only of those companies offering a similar

product or service to the target market, utilizing a similar technology,and exhibiting similar degrees of vertical integration. Thus, Nestl (which

makes Nescaf) sees General Foods, with its Maxwell House brand, as a

similar competitor in the instant coffee market, while Penguin sees its

direct competitors in the chocolate snack bar market to be Kit-Kats six

pack, Twix and Club.

2 Competition consists of all companies operating in the same productor service category. Penguins indirect competitors, for example, consist

of crisps and ice-creams.

3 Competition consists of all companies manufacturing or supplying

products that deliver the same service. Thus, long-distance coach

operators compete not just against each other, but also against railways,

cars, planes and motorcycles.4 Competition consists of all companies competing for the same

spending power. An example of this is the American motorcycle

manufacturer, Harley Davidson, which does not necessarily see itself as

competing directly with other motorcycle manufacturers. Instead, for

many buyers it is a choice between a Harley Davidson motorcycle and a

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MARKET

INTELLIGENCE

COMPETITION

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MARKET

INTELLIGENCE

COMPETITION

1. Industry Perspective ofCompetition

2. Market Perspective ofCompetition

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MARKET

INTELLIGENCE

COMPETITION

Industry

Perspective

ofCompetition

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MARKET

INTELLIGENCE

COMPETITION

Industry

Perspective

ofCompetition

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MARKET

INTELLIGENCE

COMPETITION

Competitor

Responses

1. The relaxed competitor

2. The tiger competitor

3. The selective competitor

4. The unpredictable competitor

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MARKET

INTELLIGENCE

COMPETITION

Identifying

Competitor

Weaknesses

Product-related factors Outdated products and a failure to innovate

Product weaknesses

Weak or non-existent selling propositions.

Managerial factors

A short-term orientation

The poor management of staff The failure to focus upon what is important

Managerial predictability and the adherance to well-tried formulae

Product or service obsolescence/weaknesses

An over- and ill-justified confidence

Managerial arrogance and a belief that the organization has an

inalienable right to a place in the market Competitive arrogance, competitive myopia and competitive

sclerosis

Bureaucratic structures

A fiscal year short-term fixation

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INTELLIGENCE

COMPETITION

Competitive

Intelligence

System

145


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MARKET

INTELLIGENCE

SEGMETATION,TARGETTING &

POSITIONING

Stages of

STP

146


147/171

MARKET

INTELLIGENCE

IDENTIFYING

MARKET

SEGMENTS

AND TARGETS

PSYCHOGRAPHIC

VARIABLES

VALS Framework

147


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POSITIONING

SegmentationPsychographic

Young & Rubicam, 4Cs (a Cross-Cultural

Consumer Characterization) for UK

1 The constrained

(i) the resigned poor

(ii) the struggling poor.

2 The middle majority

(i) mainstreamers

(ii) aspirers

(iii) succeeders.

3 The innovators(i) transitionals

(ii) reformers.

148

f


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INTELLIGENCE

Source: The Times, 1 February 1997, p. 17.


POSITIONING

SegmentationPsychographic

Consumer profiling and shopping habits

Habit-bound diehards.

Self-indulgent shoppers.

Struggling idealists.

Comfortable and contenteds.

Frenzied copers.

Mercenaries149


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MARKET

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POSITIONING

Target

Marketing

Strategies

1. Undifferentiated or mass marketing

2. Product-variety or differentiated

marketing

3. Target or concentrated marketing.

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MARKET

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POSITIONING

Positioning

151


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MARKET

INTELLIGENCE


POSITIONING

Positioning

1 Confused positioning, where buyers are unsure of

what the organization stands for

2 Over-positioning, where consumers perceive theorganizations products as being expensive and fail

to recognize the full breadth and value of the range

3Under-positioning, where the message is simply

too vague and consumers have little real idea of

what the organization stands for or how it differs

from the competition.153


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INTELLIGENCE

GENERICSTRATEGIES

BCG based

strategies

1. BUILD

2. HOLD

3. HARVEST

4. DIVEST

154


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MARKET

INTELLIGENCE

GENERICSTRATEGIES

GE MATRIX

based

strategies

155


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157/171

MARKET

INTELLIGENCE

GENERICSTRATEGIES

PORTERS

STRATEGIES

157


158/171

MARKET

INTELLIGENCE

GENERICSTRATEGIES

PORTERS

STRATEGIES

158


159/171

MARKET

INTELLIGENCE

GENERICSTRATEGIES

POSITION

BASED

STRATEGIES

159


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INTELLIGENCE

SCORPIOTECHNIQUE

160


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MARKET

INTELLIGENCE

SCORPIOTECHNIQUE

Industry orMarket

Industry or Technology thinking

Market or Customer Thinking

161


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MARKET

INTELLIGENCE

SCORPIOTECHNIQUE

Industry orMarket-

Importance

It defines your real competition

It defines your customers needs

It defines your potential for growth

It defines your strategic threats and

opportunities It can kill you early if you dont get it right .

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164/171

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INTELLIGENCE

SCORPIOTECHNIQUE

Customer

Market Research

Consumer Insights

164


165/171

MARKET

INTELLIGENCE

SCORPIOTECHNIQUE

Segmentationand

Targeting

165


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MARKET

INTELLIGENCE

SCORPIOTECHNIQUE

Positioningand

Branding

166


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MARKET

INTELLIGENCE

SCORPIOTECHNIQUE

CustomerRetention

167


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MARKET

INTELLIGENCE

SCORPIOTECHNIQUE

CustomerRetention

168


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MARKET

INTELLIGENCE

SCORPIOTECHNIQUE

Organization:Processes

and

Culture

169


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MARKET

INTELLIGENCE

SCORPIOTECHNIQUE

Offerings

170


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INTELLIGENCE

SCORPIOTECHNIQUE

Offerings

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