Marketing Management - session 2-5 Key concepts in Marketing.pptx

Key concepts it Marketing, Marketing Mix, 7Ps in Marketing

1. Marketing Management Prepared by Shahin Rasoulian 1 Session 2 : 5 Key concepts in Marketing

2. Objectives Introducing the 5 key concepts of marketing S egmentation T argeting P ositioning D ifferentiati on I nnovation session 2 2

3. Content of the course session 1 3

4. S egments Segments are submarkets , or homogeneous groups of consumers or users who have similar needs and behave in the same way ; however, each group is different from the others. session 2 4 Market: A set of consumers, individuals or businesses that expresses wants and needs by buying products, services, or even ideas. Segments

5. Segmentation Variables B2C Category of variables Description session 2 5 Sociodemographic Behavioral Psychographic Geographic Volume and profitability Market Income, age , education, gender , ethnic, religion, origin, marital status, language Sales volume and profit amount Needs, expectations, situations Consumer mindsets, values, opinions, interests Region, country , physical environment Consumers and variables specific to market

6. Which variables are useful? Variables affecting benefits sought by customers. Variables affecting the response of customers to marketing mix (product, price, place, promotion, people, personal selling.) Variables for which it is not too costly to collect data. session 2 6

7. Segmentation Variables B2B Category of variables Description session 2 7 *Economic Behavioral *Organizational culture, procurement policy Geographic Volume and profitability Market Company size, financial soundness and growth purchased volume Needs, expectations, situations and usage Purchasing process, types of relationships desired Region, country, physical environment Types of companies or industries

8. Targeting Consists of selecting segments , markets or customers that a business wants to win over and retain (compete). session 2 8

9. Selecting target segments It is best to choose those that offer the most potential in terms of profitability . session 2 9 profitability Size Growth Accessibility Competitive situation Adaptation cost Sale volume for the company and distributors. Potential market growth in future. Economic reach through distribution and promotion. Current and future competitors. Cost of adapting the marketing mix to the segment.

10. Types of targeting 1. Mass marketing session 2 10 Targeting the entire market. The same marketing mix for the entire market. Offerings to satisfy average needs at an average price , with mid-range customer service , mass distribution and appropriate promotion . Such as, oil companies

11. Types of targeting 2. Segment Marketing session 2 11 Targeting one (concentrated) to all (comprehensive) market segments. The marketing mix components are adapted to each of the segments. Such as, special TV channels (sport) for Concentrated segment marketing and automobile makers and banks for Comprehensive segment marketing. *If a company targets more than ONE but less than ALL segments, it is called BROAD market segmentation.

12. Types of targeting 3. Niche Marketing session 2 12 Targeting one market segment which is small to the whole market. The marketing mix components are adapted to this segment. The company is specialized to meet the needs of this segment. Such as, Canada-Goose and Rolls-Royce.

13. Types of targeting 4. Personalized Marketing session 2 13 Every customer becomes a segment. Offering customized service to each individual. The marketing mix components are adapted to each customer . Such as, B2B market and Hotel chains.

14. Positioning Concerns the identity , image and personality of a brand or business It refers to the place that the brand or business occupies, or wishes to occupy emotionally and cognitively , namely , in the hearts and minds of customers in relation to competing brands or businesses session 2 14

15. Positioning session 2 15 2.21 min

16. Positioning Awareness: Introducing the brand to customers. Actual: The image of the brand or business as perceived by customer. Desired positioning: The image that marketing managers want their brand or business to have. session 2 16

17. Positioning Positioning of a new brand: Study the positioning of the existing brands in the market. Distinguish the key positions and the missing ones. Differentiate the new brand with competitors through offering a competitive advantage over the key positions and the missing ones. Positioning of an existing brand: Study the actual positioning of the brand. Narrow the gap between the actual and the desired positioning. session 2 17

18. Conditions for a good positioning Positioning is achieved by defining the desired position based on important attributes for target customers and in relation to competitors. Must be consistent with the targeting Must be clear , unambiguous and specific Must also represent value for the customer Can be conveyed: Transparently and directly Subtle, indirect and evocative *Consistency over time is an important aspect of positioning! session 2 18

19. Positioning example session 2 19 1924 - l a unching

20. Positioning example session 2 20 WWII – While loosing the market.

21. 21 50 s : Reposition to men.

22. 22 1962: Cowboys

23. 23

24. Differentiation Consists of a brand or company standing out from competitors by getting the customers to perceive it as different (in a positive sense) based on one or more significant attributes. Closely tied to positioning Without differentiation, a brand can compete with others solely based on price It provides customers with a reason to choose the company Differentiation can address any or all of the five marketing mix components: Product: Quality, variety, guarantee, format, etc. Place: Geographical coverage, business hours, etc. Price: Price, billing and payment terms, etc. Promotion: Advertisement, loyalty program, etc. People: Speed, skill, accessibility, etc. session 2 24

25. Innovation Consists of proposing change, offering customers something new that represents progress and improvement over what already exists Is a necessity, not a luxury Even if a company is highly successful at segmentation, targeting, positioning and differentiation, it must strive to innovate and not assume that its current formula will ensure long-term success It does not necessarily entail lunching a new product, but also other components of marketing mix. session 2 25

26. Innovation session 2 26 3:12

27. The 5 key marketing concepts session 2 27 innovate Segment Target Position and differentiate