Welcome to MT- 219
Marketing Seminar
Dear Students,
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Dr. Nardi
Welcome to MT- 219
Marketing
………
Unit 4- Seminar
Professor: Dr. Nardi
Agenda
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Greeting & Welcome Back
Review – last week
This week’s Topic:
Marketing Planning, Research and Segmentation
– Strategic Planning
» SWOT Analysis
– Nature and Content of a Marketing Plan
– Marketing Plan Criteria
– Marketing Research Process
– Measuring Marketing Productivity
– Segmentation
– Levels
– Segmenting Customer Markets
– Bases for segmenting Business Markets
– Market Targeting
• Marketing Roundtable
– This week’s Question:
» “What is the best type of Marketing Research?”
• Wrap Up: Q&A Session
Announcements
• Quiz - Review
– Will close on Tuesday at 11:59PM
• Mid-Term Survey
– Opens on Monday.
• Mid-Term Grades
– Average of Unit 1-3 Grades
– Available to you On Wednesday after
Unit 4 Ends.
Review of Unit 3
• How did Unit 3 go? Questions or
concerns?
• Instructor suggestions for Unit 4Pay particular attention to
segmentation for the Unit 6 Research
Project
• Questions?
Review from Last Week
• Customer Behavior
• The Marketer’s responsibility with
Quality
• Customer Perceived Value (CPV)
• What influences Consumer’s
Behavior
What Influences
Consumer Behavior?
Cultural Factors
Social Factors
Personal Factors
Reference Groups
Membership groups
Primary groups
Secondary groups
Aspirational groups
Dissociative groups
Model of Consumer Behavior
Types of buying behavior
• Routinized response behavior
frequently purchased, familiar, lost cost items
• Limited Problem Solving behavior
unfamiliar brand in familiar category
• Extended Problem Solving
unfamiliar, expensive or infrequently purchased
items
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Characteristics of
Business Markets
Fewer, larger buyers
Close supplier-customer relationships
Professional purchasing
Many buying influences
Multiple sales calls.
Derived demand
Inelastic demand
Fluctuating demand
Geographically concentrated buyers
Direct purchasing
Kodak offers
services that
streamline
processes for
hospital
administrators
Aramark successfully services
institutional and government markets
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Any
Questions??
Strategic Planning
• The process of establishing an
organizational mission and
formulating goals, corporate
strategy, marketing objectives,
marketing strategy, and a marketing
plan.
Another Look at:
Strategic Planning
• long-term plans based on the
organizations overall business objectives.
• Strategic plans are typically multiple years
and reach out 5 or 10 years (or more)
using Scenarios or other planning
methods that identifies Assumptions,
Risks, and Environmental factors.
SWOT Analysis
• Internal
- Strengths
- Weaknesses
• External
– Opportunities
– Threats
SWOT - Examples
• Strengths
– Patents, good brand name, good reputation among customers, good
lead times, etc
• Weakness
– Lack of patent protection, poor reputation among customer, lack of
access to key distribution channels, etc.
– Flipside of a Strength.
• Opportunities
– An unfulfilled customer needs, arrival of new technologies,
loosening of regulations, etc
• Threats
– Shifts in customer tastes away from the company’s products,
emergence of substitute products, new regulations, increased trade
barriers, etc.
Marketing Plan
– The central instrument for directing
coordinating the marketing effort.
and
– The marketing plan operates on two levels:
1. The strategic marketing plan lays out target markets
and the value proposition.
2. The tactical marketing plan specifies the product,
promotion, merchandising, pricing, sales channels, and
service.
Levels of a Marketing Plan
• Strategic
– Target marketing
decisions
– Value proposition
– Analysis of
marketing
opportunities
• Tactical
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Product features
Promotion
Merchandising
Pricing
Sales channels
Service
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Any
Questions??
Sources of Marketing
Opportunities
• First is to supply something in short supply.
• Second is to supply an existing product or service in a
new or superior way.
• Third is a totally new product or service.
Product Planning
• Each product level (product line, brand) must develop a
marketing plan for achieving its goals.
• A marketing plan is a written document that summarizes
what the marketer has learned about the marketplace and
indicates how the firm plans to reach its marketing
objectives.
Marketing Plan Contents
 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Financial projections
 Implementation controls
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Any
Questions??
Customer Driven
Marketing Strategy
• Four stage process that segments, targets,
differentiates and positions a product
• Segmentation- Basic Process: Heterogeneous
Market  Segmentation  Homogeneous SubMarkets
• Targeting- Selecting the best segments to focus
on
• Differentiating- Create unique benefits for
target segments
• Positioning- Placing product into customer’s
minds compared to competition.
Mature
consumers
are a rapidly
growing market
Target Market
Segmentation Process
• 1.
2.
3.
4.
5.
Identify appropriate strategy
determine segmentation variables
develop segment profiles
evaluate segments
select specific segments
Criteria for Effective
Segmentation
1.
2.
3.
4.
Large enough with profit potential
Heterogeneous need for product
Segments must be identifiable and divisible
Segments must be reachable
5. Segments should be open to comparison
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Any
Questions??
Effective Targeting
Requires…
• Identify and profile distinct groups of
buyers who differ in their needs and
preferences.
• Select one or more market segments
to enter.
• Establish and communicate the
distinctive benefits of the market
offering.
Major Segmentation
Strategies
• Undifferentiated
– single product and single
strategy for entire market – requires homogeneous
market
• Concentrated
– Single segment , one strategy
* major advantages include specialization and the ability
to compete
* major disadvantage – “all eggs in one basket”
• Differentiated
– two or more segments each with its
own marketing mix
* major advantages include potentially higher sales
and absorption of
excess production capacity
* Major disadvantage is cost
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Any
Questions??
Levels of Segmentation
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Mass Marketing
Segment Marketing
Niche Marketing
Local Marketing
Customerization
Ford’s Model T Followed a
Mass Market Approach
Click Here
Segment Marketing
Targeting a group of customers
who share a similar set of
needs and wants.
Niche Marketers
Enterprise Rent-a-Car
targets the insurancereplacement market
Click Here
Examples of Market
Customization
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Any
Questions??
Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
Geographic Variable
• Climate
• Terrain
• City size
• Urban/rural values
• Market Density
• Geodemographic Segmentation
• Micromarketing
Demographic Variables –
closely related to needs and
measurable
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Age
Gender
Race
Ethnicity
Income
Education
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Occupation
Family size
Family life cycle
Religion
Social class
Sexual orientation
Demographic
Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class
Profiling American Generations
• Generation X
• GI Generation
– 1901-1924
• Silent
Generation
– 1925-1945
• Baby Boomers
– 1946-1964
– 1965-1977
• Generation Y
– 1978-1994
• Millenials
– 1995-2002
More on American
Generations - Links
• America Generations:
• http://www.timepage.org/time.html
• http://crab.rutgers.edu/~goertzel/generations.htm
• http://poptop.hypermart.net/generation.html
Psychographic Variables
• Social class
• Lifestyle
– Achievers
– Strivers
– Survivors
• Personality
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Compulsive
Romantic
Authoritarian
Enthusiastic
Behavioral Segmentation
Variables
• Most Powerful Variables
• Underlies all other segmentation
variables
• These relate most directly to
consumer desires
• How the product benefits the
consumer directly
• Examples– Occasions
– Loyalty
– Usage rates
Behavioral Segmentation
Decision Roles
• Initiator
• Influencer
• Decider
• Buyer
• User
Behavioral
Variables
• Occasions
• Benefits
• User Status
• Usage Rate
• Buyer-Readiness
• Loyalty Status
• Attitude
Psychographic Variables
• Personality
• Motivation
• Lifestyle
– Activities
– Interests
– Opinions
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Any
Questions??
Which Segment Variables
to Use?
• Marketers are not likely to use just one
segment variable
• Market segments often combine multiple
variables together to create a desirable
target segment
• Which variables might be combined to
create a segment for– Harley Davidson Motorcycles/
– Prada Shoes?
Positioning
• Where the product lives in the mind of the
consumer as it relates to the competition
• Identify and select appropriate competitive
advantages for the product
• Combine competitive advantages to
develop an overall positioning strategy
– More for More
– More for the same
– More for less
– The same for less
– Less for much less
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Any
Questions??
Segmenting for Business
Markets
Demographic
Operating Variable
Purchasing Approaches
Situational Factors
Personal
Characteristics
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Any
Questions??
What is a Product?
Anything that is offered to a market to
fulfill a need or want
good
service
idea
place
person
Classifying Consumer Products
• Convenience – relatively inexpensive, frequently
purchased items with many substitutes. Don’t confuse with a
convenience store.
• Shopping
– items for which buyers are willing to spend
considerable effort to compare and purchase. Don’t confuse with
what you buy when just shopping
• Specialty
- products with unique characteristics for which
consumers are willing to expend effort
• Unsought
– items people do not know of or do not think
about buying. Many times due to emergency needs. Also, many
impulse items.
Services
Intangible products involving a deed,
performance, or effort that cannot be
physically possessed
• Haircuts
• Concerts
• Tax preparation
• Annual doctors’ physicals
Nature of Services
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Intangibility
Inseparability
Variability
Perishability
Let’s look at these individually
Issues related to service
intangibility
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Difficult for customers to evaluate
No physical possession
Difficult to advertise and display
Pricing is problematical and
subjective
• Service process not always protected
by patents
Issues related to service
inseparability
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Does not allow for mass production
Customer participation required
Other customers can affect process
Difficult to distribute
Issues related to
variability
• Quality difficult to control
• Standardization is a problem
• Services vary from provider to
provider
• Services can vary from the same
provider
• Reputation is crucial
• Franchises try to emphasize service
homogeneity
• Reason for grading rubrics
Issues related to service
perishability
• Services cannot be stored or
inventoried
• Unused capacity is lost forever
• Demand may be time sensitive
• Balancing supply and demand is
difficult
Branding- Brand Equity
The marketing and financial value
associated with a brand’s strength in
a market
brand name awareness
brand loyalty
perceived brand quality
brand associations
Selecting a Brand Name
• Easy to pronounce, spell and
remember
• Trademarkable
• Distinctive
• Conveys brand benefits
• Travels globally- Big concern today
Types of Brands
• National (Manufacturer’s) brands
• Store (Private) brands
• Licensing
Line extensions- new forms, sizes,
fragrances, etc are created in existing
product line
Brand extensions – use of existing brand
on a new category, such as extending from
a rock singer into acting
Multibrands- use of different brand names
by one company. Nestle or Proctor and
Gamble
New Brands- Creating entirely new brands
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Any
Questions??
Instructor’s suggestions for Unit 4
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Readings
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Discussion
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Deodorant, Baby Care, Health Care, Bodywash & Soap, Oral Care, Household Cleaners,
Haircare, Shaving, Pet Nutrition.
Question:
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Discuss the characteristics or variables that could be used to segment the market.
Take a look at the P&G site and the following product categories:
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Graded Assignment
Watch the Discussion Introduction Video
This week we’ll
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Chapter 6 and Chapter 7
Make sure you understand the major segmentation variables?: Demographic, Geographic,
Psychographic and Behavioristic Variables.
Discuss the characteristics or variables that could be used to segment the market. Be sure to
discuss some characteristics from each of the four major variable groupings. Provide a brief
explanation for your choices and use specific examples where appropriate.
Using the assigned products listed in the Discussion Introduction; discuss the characteristics or
variables that could be used to segment the market. Be sure to discuss some
characteristics from each of the four major variable groupings. Provide a brief
explanation for your choices and use specific examples where appropriate.
1 Response & 2 peer to peer comments.
Post on 3 days. (for full points).
Primary post by Saturday (for full points).
Response - 100 Words (minimum)
Assignment
 Umpqua Bank
 Watch the "Umpqua Bank" Video Case.
 The video will take approximately 5 minutes to view.
 Visit Umpqua Bank at www.umpquabank.com
 Template Available:
 Answer the questions in a double spaced paper,
no more than three pages long, and submit it to
the Dropbox.
 This Assignment must be completed in Microsoft
Word format.
 For some of the questions in this Assignment,
you will have to review your reading from Unit 3.
Simulation
 Segmentation Simulation
 Theory Application.
 In this simulation, you need to select the
segmentation variable or variables that are being
used in each situation.
 As you will see, sometimes only one is being
used, but there are sometimes multiple variables
that need to be selected.
 You will be using this knowledge in your
Research Project in Unit 6 when you segment
the market for the brand you selected in Unit 2.
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Any
Questions??
Wrap Up
• Do your readings.
• Discussion: Remember you have to Answer ALL questions /
elements of the Question.
– Do NOT Neglect the Peer-to-Peer comments.
• Remember you have assignments due this week.
– Due on Tuesday by 11:59 PM E.T.
– Discussion, Simulation & Written Assignment
Contact
 you can contact me
through my email: nnardi@kaplan.edu ,
through AOL Instant Messaging
my AOL IM name is nknardi,
(put me on your buddy list)
my AOL IM “Office hours” are:
Tuesdays 8:00-10:00 pm Eastern Time
or through the “Instructor’s Office” link under the
Course Home page
Thanks
• Thank you for Attending!!!!
• See you in the Discussion Thread
Questions and in Next Week’s
Seminar
Marketing Shoptalk
Discussion:
What is the best type of
Marketing Research?