Lesson: STP: Segmenting, Targeting, Positioning 1. Segmentation a. Segmentation Process 1. Segmentation 2. Targeting 3. Differentiation 4. Positioning 2. 3. Lesson 2: Product 1. Kinds of Products a. Goods b. Services c. Experiences 2. Levels of Product and Service a. Core customer value b. Actual product • Create Value a. Augmented product b. Segmenting Consumers 3. Types of Products 1. Geographic a. Consumer 2. Demographic 1. Convenience 1. Age 2. Shopping 2. Life cycle 3. Specialty 3. Gender 4. Unsought 3. Psychographic b. Industrial 4. Behavioral 1. Capital items 1. Buying behaviors 2. Materials and Parts c. Requirements for Effective Segmentation 3. Supplies and Services 1. Measurable 4. What is a Product 2. Accessible a. Organization Marketing 3. Substantial b. Person Marketing 4. Differentiable c. Places Marketing 5. Actionable d. Social Marketing d. Evaluating Segments 5. Product/Service Decisions 1. Segment size and growth a. Product Attributes 2. Segment structural attractiveness 1. Quality 3. Company objectives and 2. Features resources 3. Style and Design Target Market b. Branding a. Target Marketing 1. Brand positioning b. Strategies 2. Name 1. Undifferentiated 3. Sponsorship 2. Differentiated 4. Development 3. Concentrated c. Packaging 4. Micro Marketing d. Labelling 1. Local e. Support Services 2. Individual Positioning a. Positioning Map b. Strategy 1. Competitive Advantage 2. Differentiation 3. Value Proposition c. Communicating a position • To target market and need our brand is concept that point of difference Lesson 3: Price 1. What is price a. Amount of money charged b. Sum of all values that consumers give up c. Only element in marketing mix that gives revenues 2. Factors when setting prices a. Price Setters b. Price Influencers 3. Factors affecting price decisions a. Internal Factors 1. Marketing objectives 1. Survival 2. Current Profit Maximization 3. Market Share Leadership 4. Product Quality Leadership 2. Marketing Mix of price 1. Product design 2. Place 3. Promotion 4. Nonprice positions 3. Types of cost 1. Fixed costs 2. Variable costs 3. Total costs 4. Average costs b. External Factors 1. Market an Demand 2. Types of Markets 1. Pure Competition 2. Monopolistic Competition 3. Oligopolistic Competition 4. Pure Monopoly 3. Factors to Consider when setting price 1. Demand curves and Price Elasticity of Demand 2. Customer perception of value: the upper limit for price, costs: lower limit for price 4. 1. 2. 3. 4. 5. • 4. 5. 6. 7. Pricing Methods Cost-­‐based pricing a. Unit Cost = VC + FC/Unit Sales b. Mark-­‐up Price = UC/1-­‐
Desired Return c. Break-­‐even volume = FC/MU-­‐VC Break-­‐even pricing Competition-­‐based pricing Value-­‐based pricing Customer perception of value Pricing decisions Pricing Strategies a. New-­‐Product Pricing Strategies 1. Market Skimming (high) 2. Market Penetration (low) b. Product and Pricing Strategies 1. Product line Pricing 2. Optional-­‐Product 3. Captive-­‐Product 4. By-­‐Product 5. Product-­‐Bundling Price Adjustment Strategies a. Discount and allowance pricing b. Segmented pricing c. Psychological pricing d. Promotional pricing e. Geographic pricing f. Dynamic pricing g. International pricing Price changes a. Price cuts due to: 1. Excess capacity 2. Increased market share b. Price increase from: 1. Cost inflation 2. Increased demand 3. Lack of supply Public Policy and Pricing a. Pricing within channel levels 1. Price fixing 2. Predatory pricing 3. Price discrimination b. Pricing across channel levels 1. Retail/resale price maintenance 2. Deceptive pricing Lesson 4: Place 1. Supply chain partners a. Upstream partners b. Downstream partners 2. Nature and importance of Marketing Channels a. Marketing/Distribution Channel b. Channel members c. Intermediaries 3. Functions of distribution channels a. Promotion b. Contact c. Matching d. Negotiation e. Physical Distribution f. Financing g. Risk Taking • 4. Number of Channel Members 1. Channel level 2. Direct marketing channel 3. Indirect marketing channels Changing Channel Organization a. Disintermediation • Bypassing intermediaries and going directly to final buyers 5. Channel Design Decision a. Analyzing Consumer Needs b. Setting Channel Objectives c. Identifying Major Alternatives 1. Intensive distribution 2. Exclusive distribution 3. Selective distribution d. Evaluating the Major Alternatives 1. Economic criteria 2. Control 3. Adaptive criteria e. Designing International Distribution Channels f. Selecting Channel Members g. Managing and Motivating Channel Members 6. Public Policy and Distribution Decisions a. Exclusive Distribution b. Exclusive Dealing c. Exclusive territorial agreement d. Typing agreements 7. Marketing Logistics and Supply Chain Management a. b. c. Marketing Logistics 1. Outbound 2. Inbound 3. Reverse Supply chain management Goals: Maximize Profits, not sales Lesson 5: Promotion 1. Promotion mix 2. Major Promotion Tools a. Advertising b. Public Relations c. Sales Promotion d. Personal Selling e. Direct Marketing 3. Integrated Marketing Communications a. The new market landscape b. The need for integrated marketing communications c. View of the communication process d. Key factors in good communication 1. Good at encoding 2. Feedback channels 3. Audience familiarity 4. Reachable messages 4. Steps in Developing Effective Communication a. Identifying the Target Audience b. Determining the Communication Objectives c. Designing a Message 1. AIDA Model: Attention, Interest, Desire, Action d. Choosing Media 1. Personal Communication 1. Opinion leaders 2. Buzz marketing 2. Non-­‐personal communications 1. Major media 2. Atmospheres 3. Events e. Selecting Media Source f. Collecting Feedback 5. Promotion Mix a. Setting the Total Promotion Budget: based on 1. Affordable 2. Percentage of Sales 3. Objective-­‐and-­‐Task 4. Competitive-­‐Parity b. Strategy 1. Pull Strategy 2. Push Strategy 6. Advertising development and programs a. Set Objectives 1. Informative 2. Persuasive 3. Comparison 4. Reminder b. Set Budget 1. Stage in product life cycle 2. Market share 3. Competition and clutter 4. Product differentiation c. Develop Strategy 1. Create the message 1. Message strategy 2. Creative concept 3. Message execution 2. Select the medium 1. Reach, Frequency, and Impact 2. Media habits of consumers, nature of product, types, and costs 3. Specific media source 4. Timing d. Evaluate ads 1. Communication effects 2. Sales effects 7. Major Public Relations Functions 8. Major Public Relations Tools 9. Sales Promotion a. Tools 1. Samples 2. Coupons 3. Premiums 4. Rewards 5. Contests 10. Personal selling aka sales people 11. Direct Marketing