Target
Target Markets
Markets &
& Segmentation
Segmentation
Needs, Wants, and Demands
Product
Product or
or Offering
Offering
Value
Value and
and Satisfaction
Satisfaction
Exchange
Exchange && Transactions
Transactions
Relationships
Relationships && Networks
Networks
Marketing
Marketing Channels
Channels
Supply
Supply Chain
Chain
Competition
Competition
Marketing
Marketing Environment
Environment
04/13/11 1-2
Marketing
Mix
Place
Product
Customer Convenience
Solution
Price Promotion
Cost Communication
04/13/11 1-3
Consumers prefer products that are
Production
Production Concept
Concept widely available and inexpensive
04/13/11 1-4
Image
Image value
value
Personnel
Personnel value
value Total
Total
customer
customer
Services value
value
Services value
value
Product
Product value
value Customer
Customer
delivered
delivered
Monetary
Monetary cost
cost value
value
Time
Time cost
cost
Total
Total
customer
customer
Energy
Energy cost
cost cost
cost
Psychic
Psychic cost
cost
04/13/11 1-5
Planning Implementation Control
Organizing
Corporate Measuring
planning results
Division
planning Diagnosing
Implementing
results
Business
planning
Taking
Product corrective
planning action
04/13/11 1-6
Limited number of goals
?
12%-
10%-
8%- Cash cow Dogs
6%-
4%-
2%-
8
0 6 7
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x
Hydraulic Aerospace
pumps fittings
3.67
Clutches
Medium
Fuel
pumps
Flexible
2.33 diaphragms
Relief
Low
valve
1.00
Invest/grow Selectivity/earnings Harvest/divest
04/13/11 1-9
Existing New
products products
New 2. Market
markets development 4. Diversification
04/13/11 1-10
Opportunity Matrix
Success Probability Opportunities
High Low
1. Company develops a more
powerful lighting system
2. Company develops a device
Attractiveness
04/13/11 1-11
Probability of Occurrence Threats
High Low
1. Competitor develops
a superior lighting
system
Seriousness
High 1 2
2. Major prolonged
economic depression
3. Higher costs
Low 3 4 4. Legislation to reduce
number of TV studio
licenses
04/13/11 1-12
Structure
Strategy Systems
Shared
values
Skills Style
Staff
04/13/11 1-13
(a) Traditional physical process sequence
04/13/11 1-14
Executive Summary & Table of Contents
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
04/13/11 1-15
•Sheds light on problem -
Exploratory
suggest solutions or
Research
new ideas.
•Test cause-and-effect
Causal relationships.
Research •Tests hypotheses about cause-
and-effect relationships.
04/13/11 1-16
Observational
Focus-group
Survey
Behavioral
Experimental
04/13/11 1-17
Secondary Data
Sources
Internal Sources
Government Publications
Periodicals and Books
Commercial Data
On-Line
Associations
Business Information
04/13/11 1-18
Defining the Developing
problem and the research Collect the
research plan information
objectives
04/13/11 1-19
Good Marketing
Research...
Is scientific
Is creative
Uses multiple methods
Realizes interdependence of models & data
Acknowledges the cost & value of information
Maintains “healthy” skepticism
Is ethical
04/13/11 1-20
Marketing Other Buyer’s Buyer’s decision
stimuli stimuli characteristics process
Economic
Product Technological Cultural Problem recognition
Price Political Social Information search
Place Cultural Personal Evaluation
Promotion Psychological Decision
Post-purchase
behavior
Buyer’s decisions
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
04/13/11 1-21
Cultural
Cultural
Social
Social
Family
Family&&Lifestyle
Lifestyle
Psychological
Psychological
Buyer
Buyer
04/13/11 1-22
User
User Initiator
Initiator
Key
Family
Decision
Buyer
Buyer Roles Influencer
Influencer
Decider
Decider
04/13/11 1-23
High Low
Involvement Involvement
Significant
differences
between
brands Complex Variety-
Buying Seeking
Behavior Behavior
Few
differences
between Dissonance- Habitual
brands Reducing Buying Buying
Behavior Behavior
04/13/11 1-24
Problem
recognition
Information
search
Evaluation of
alternatives
Purchase
decision
Post-purchase
behavior
04/13/11 1-25
Total
Set Aware-
ness Consid-
Set eration
Choice
Set
Set Decision
04/13/11 1-26
Potential Entrants
(Threat of
Mobility)
Substitutes
(Threats of
substitutes)
04/13/11 1-27
Specific Attack
Strategies
Price-discount
Cheaper goods
Prestige goods
Product proliferation
Product innovation
Improved services
Distribution innovation
Manufacturing cost reduction
Intensive advertising promotion
04/13/11 1-28
6. Develop Marketing
Mix for Each Target Segment Market
5. Develop Positioning Positioning
for Each Target Segment
4. Select Target
Segment(s) Market
3. Develop Measures Targeting
of Segment Attractiveness
2. Develop Profiles
of Resulting Segments
Market Segmentation
1. Identify Bases
for Segmenting the Market
04/13/11 1-29
Geographic
Psychographic
Lifestyle or Personality
Behavioral
Occasions, Benefits,
Uses, or Attitudes
04/13/11 1-30
Conform-
Perfor-
Form Features Quality ance
mance
Quality
Repair-
Durability Reliability Style Design
ability
04/13/11 1-31
Important
Important
Profitable Distinctive
Distinctive
Differences Worth
Establishing
Affordable
Affordable Superior
Superior
Preemptive
Preemptive
04/13/11 1-32
… the act of designing the
company’s offering and image to
occupy a distinctive place in the the
target market’s mind.
p. 298
04/13/11 1-33
Marketing
Strategy Business
Development Analysis
Concept Product
Development Development
and Testing
Idea Market
Screening Testing
Idea
Generation Commercialization
04/13/11 1-34
User
Culture Personality
04/13/11 1-35
Product Category
Existing New
Brand Name
Existing
Line Brand
Extension Extension
New
Multibrands New
Brands
04/13/11 1-36
The Three C’s Model
for Price Setting
04/13/11 1-37
Any
AnyPaid
PaidForm
FormofofNon-personal
Non-personal
Advertising
Advertising Presentation
Presentation by anIdentified
by an Identified
Sponsor.
Sponsor.
Short-term Incentives to
Sales Promotion Encourage Trial or Purchase.
Personal
Personal Selling
Selling Personal Presentations.
Sales
SalesPromotion
Promotion
Communication,
Communication,Incentive,
Incentive,Invitation
Invitation
Public
PublicRelations
Relations&&Publicity
Publicity
Credibility,
Credibility,Surprise,
Surprise,Dramatization
Dramatization
Personal
PersonalSelling
Selling
Personal
Personal Confrontation, Cultivation,Response
Confrontation, Cultivation, Response
Direct
DirectMarketing
Marketing
Nonpublic,
Nonpublic,Customized,
Customized,Up-to-Date,
Up-to-Date,Interactive
Interactive
04/13/11 1-39
Operations
HR
Are you willing to work 100 hrs a week
Give me and example of your ability to work as
a part of a team
Why do you want to work in our company
How would you work for a company whose
stock you are considering buying
How do you calculate WACC
Walk me through financial statement how do
they flow together
What are three valuation methods
Tell me what you think of industry X
What would you be doing 10 years from now
Which Item on your resume’ is most important
Can you pitch me a stock
Tell me a stock you don’t like
Why do you want a X deptt and not Y
What are your favourite and least favourite
aspects of job
Strategy