Chapter 6 - Market Segmentation and Target Marketing

Market Segmentation

Mass Marketing - One basic marketing strategy to appeal to a broad range of consumers.

Market Segmentation is the division of a large market in smaller targets based on common needs.
       - Based on Demographics, Psychographics, Geographics and Behaviour Responses

Niche Marketing- Targeting one particular sub-segment of a segment and committing all marketing resources to the satisfaction of the sub-segment

Direct Segmentation and Behavioural Targeting - A database driven marketing system that tracks a consumer's behaviour to determine his or her interests and then serves to the person.

                 - Geo targeting (target potential buyers in a geographic location)
                 - Location based targeting (integrate consumers location info into a marketing strategy)
                 - Mass customization (produces message for a target audience of one.)
                 - Brand democratization ( whereby consumers voice their opinions and make changes)

Target market profile includes :

• DEMOGRAPHICS - Age, income, education, occupation, ethnic background
• PSYCHOGRAPHICS - Attitudes, Interests, Options, Activities, Values, Lifestyle
• GEOGRAPHICS - Region, City, Urban, Rural
• BEHAVIOURAL RESPONSES - Occasion for use, benefits sought, usage rate, degree of loyalty
• GEODEMOGRAPHIC - the isolation of of geographic and demographic info

Market Positioning Concepts
Positions refers to the place a product occupies in the customer's mind in relation to the competing products.

Head on where one brand is presented as an alternative equal to or better than another brand.

Leadership positioning - significant budgets, great consumer awareness and household penetration

Product Differentiation Positioning : Define the benefits and focus on the unique attributes of your product

Technical Innovation Positioning : high performing new functions like flexural technology in gillette razors

Lifestyle Positioning : fit in and match lifestyle

Repositioning: changing the place that a product occupies in the consumer's mind in relation to competitive products.

Chapter 5 - B2B Marketing and Organizational Buying Behaviour

B2B Markets

- Governments, Manufacturers, Institutions, Professions, and Wholesalers

-  Short Direct channels due to need for personal selling and High dollar value and purchases less frequently, mass advertising, rational due to formality of purchase

Organizational Buying behaviour

- # of buyers

- Location of the buyers

- Demand of Characteristics

• Derived Demand - is demand for products sold in the b2b market that is actually driven by consumer demand.  Wholesalers sell more to retails because of customer demand.
• Joint Demand- when the marketing and production of One product is dependant on another

- Buying criteria is practical rationally pursued with  1. Price 2. Quality 3. Service offered 4. Continuity of Supply

B2B Buying process is

Buying Committees (Formal)

Buying Centres (informal purchasing group) which include the 5 roles:
Users - use the product
Influencers
Buyers, Deciders, and Gatekeepers - control flow of info in to others in centre

with Centralized purchasing, Personal Characteristics, and Relationships are sought, Partnership marketing

Decision Buying Process:

Problem --> a stage in which you decide you might need something
Need --> general characteristics
Product Description --> specifications of the product
Suppliers Search --> 
Proposal --> a Closed Bid and an Open Bid
Supplier Selection --> 
Order Routine -->
Performance Review -->

Chapter 4 - Consumer Buying Behaviour

Understanding Consumer Behaviour

The study of consumer behaviour with why ppl buy the products and services they do and explains why people behave differently or similarly. Since organizations cannot control consumers, it is essential that they understand them so that they can adapt their strategies to consumers' thinking and behaviour

The Decision Process

Marketing mix Influences-->Problem Recognition
Psychological Influences
Personal Influences
Social/Cultural Influences      
-->Info
-->Evaluate Alternatives
-->Purchase Decision
-->Post-Purchase Evaluation - cognitive dissonance inspires a lack of confidence in your product/service

CONSUMER INFLUENCES

Psychological Influences
- Needs (Physiological, Safety, Social, Esteem, Self)
- Personality (Real Self, Self Image, Looking Glass Self, Ideal Self)
- Attitudes and Perceptions ( An individuals feelings favourable or not towards an idea or object. How people interpret messages)

Personal Influences
- Lifestyle as a persons pattern of living as expressed in his or her activities, interests, opinions and values.
- Age and Lifecycle, Baby boomers have a tendency to purchase more vs traditionalists
- Technology growing and time pressed consumers, social media etc

Marketing Mix Influences
- Product, price, place, promotion

Social and Cultural Influences
- Reference Groups: Peers and Infuences
- Family - Traditional vs Nuclear ( Double targeting - is a marketing strategy that targets both spouses)
- Social Class - Income, Occupation, education, and inherited wealth

DSS - Decision Support System

Culture - behaviour learned from external sources, such as family, workplace and education which help form the value system that hold a strong sway over individuals.

               - Subculture and Regional Differences ( Quebec vs BC vs P.E.I)

Chapter 3 - Marketing Intelligence

The Marketing Research Role defined:

This is a function that links the consumer, customer, and public to the marketer through info to define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.

Market analysis is the collection of appropriate info demand, sales volume potential, production capabilities, and the resources necessary to produce and market a given product to determine if a market is worth pursuing.

Product research produces info about how pope perceive product attributes.

Consumer analysis is the monitoring of consumer behaviour changes so that marketing strategies can be adjusted accordingly.

The MARKETING RESEARCH PROCESS:

Exploratory Research includes the Funnel. 

It brings it all together with Marketing Comms, Advertising, Creative, Appeal Techniques, and Humorous Style.

If we think that there is a problem start with the marketing mix to identify it and funnel all posibilities

Secondary Data Collection

Internal Data Sources: are those available within the organization (Customer profiles, sales analysis reports, cost analyses, marketing budgets and profit and loss statements.

External Data Sources refer to Statistics Canada, surveys, online databases, directory databases.

PRIMARY RESEARCH

- Data collection method

- Data collected and recorded for the first time. Who is going to be a part of your sample?

Data Collection Methods

- Survey Research

- Observation Research which is a structured survey and an unstructured survey format. Where the questionnaires vary in format and the sequences in which they're asked.

- Experimental Research involves test marketing with experimental and ethnographic research.

Qualitative Research - Small group, Questions unstructured. OPINIONS

Quantitative Research - Collected data, statistically reliable. FACTS

Survey Methodology - online surveys, personal interviews, concept tests, mail interviews. The process involved in the survey decision is nature of info sought, cost vs time, respondent.

Data Transfer and Processing: Editing, data transfer, Tabulation, Cross tabulation 

Data Analysis the evaluation in market research of responses on a question by question basis. A process that gives meaning to the data.

Recommendation and Implementation

Data Mining: The analysis of info so that relationships are established between pieces of information, and more effective marketing strategies can be identified.

PROBLEM - look into the issue through old data. Check out all aspects of historical data. 

EXPLORATORY RESEARCH - within the company

Chapter 2 - The External Marketing Environment

Marketing Chapter 2

Environmental Forces that affect Trends in the Marketplace
C.R.E.S.T

Competitive
Regulatory
Economic
Social, Environmental and Demographic
Technological

The competitive position:

There is the market share with is the sale volume of one competing product as a percentage of the total market sales volume.

Direct competition and Indirect competition

MARKET STRUCTURE INCLUDE:

A MONOPOLY

AN OLIGOPOLY

MONOPOLISTIC COMP

PURE COMPETITION

Market leader - is the largest firm in the industry

Market challenger - is the firm attempting to gain market leadership through aggressive marketing efforts.

Market follower - generally satisfied with it's market share position.

Regulatory is legal forces that affect promotion, labeling, packaging etc

Economic generally are affected by Canada's international trade balance and inflation - which is the rising price level for goods and services that results in reduced purchasing power.

Social - Consumers look at business that match their values. Align yourself with buying local to get the right consumer. People look for companies that are socially responsible.

Environmental -  and Demographic include lifestyle, social responsibility, size and age of population, sandwich generation, spending power and wealth, education, multiculturalism.

Technological factors include commerce, internet, technological advancements and marketing comms.
Now you can access your target market in other countries. No longer are you confined to the local population through newspaper articles.

Chapter 1 and The Makings of a Project

Breakdown

Chapter 1:

The Glowing White Board of Strategies

Marketing: The process of planning, the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organization objectives.

Establish a need within a consumer environment and get them to come to your product.

Marketing Process: HOW

The Elements of the Marketing Process

Identify Needs --> Design Solution ( CREATE A MARKETING MIX) -->Implement --> Evaluation --> Redesign --> Identify Needs etc...

Marketing Mix : WHAT

The Marketing Mix the 4P's

Product
Price
Placement/ Distribution
Promotion/Marketing Communications
Public Image

Marketing Strategies : Objectives of the MIX

Product Strategy - Quality, feature, brand name, packaging, customer service, guarantees, and warranties
Price Strategy - who do you want to be your consumer, cost of manufacturing, profit margin, degree of competition.
Placement/Distribution Strategy - Location, availability, inventory, transportation modes
Promotion/ Marketing Strategy - Advertising, sales, events, sponsorship, personal selling, public relations

When you're not getting the results you want, but look at all the options.

Look at where you product is for sale. Is it from a person/friend or natural food store? Do you want to buy from a friend or from a shop.

PROJECT IDEAS:

CUSTOMER RELATIONSHIP MANAGEMENT - CRM

Marketing Project on the way : genuinetours.com

Class Outline

Aug 24 - OFF (Cleaned house)
       25 - Chapter 1,2,3
       26 - Chapter 3.4

HOMEWORK Read 5-8

Aug 31 - Chapter 5,6,7
Sept 1- Chapter 8
        2 - Midterm

Sept 7- Review Midterm
        8 - Chapter 9,10,11,12
        9 - Chapter 13, 14, 15, 16

Sept 14 - Review Chapter 1-16
        15 - Final Assessment
        16 - Review Final Assessment

Marketing Introduction

What do we need to consider?
How to market your business, what marketing means, compared with advertising and images.

1. Discuss how marketing has evolved
2. Conduct market research
3. Explain consumer buying behaviour
4. Define Market Segmentation
5. Describe your product/service distribution channel
6. Explain your marketing communication strategies

Book yourself solid - Michael Port
Better Mousetrap marketing here in Courtenay. Building a brand, web presence, and create a marketing plan.

Ethos - Build trust
Pathos - Marketing research
Logos - Communicate, effective and intelligent

Marketing --->Ideal Clients (Adventurous, Curious, Inspiring)---->Demographics, Income, Geographic Region, Sex/Age ----> Niche ---> Target MarketCl

ients