MKTG 321- Lecture 6 PDF

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Sandra Lampo
Lecture 6 Notes...

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MKTG 321 2/3/20 Lecture 6 ➢ Domino’s ○ Technology ■ Ordering app ■ Text to order a slice of pizza ■ Tweet in your order ■ Smart watches/tv’s using your voice ■ More coming soon ○ Making it as easy as possible for target market to order pizza ■ Their target market VALUES the convenience of using technology to order pizza ■ Not having to talk to someone to order their pizza ■ Others may not think this is necessary ■ Making this DISTRIBUTION (place) decision ➢ DJ Khaled ○ We the Best Home ■ Baller collection (ft Miami) ■ No they ● No they mats ■ Kingdom of Khaled chair ■ Sneaker chest ○ Design of the website/name ■ Know what they’re doing ■ Colors of the website ○ Know who you’re speaking to ○ This is market segmentation! ➢ The Wall Street Journal ○ Two versions went out on the same day in Austin ■ One said “Trump Softens His Tone” ■ Other said “Trump Talks Tough on Wall” ○ Two different target markets ■ Felt they were more effectively reaching people by knowing the two types of target markets ○ For a group of people to be considered a “market” they must have… ■ A need/desire for the product ■ Ability to purchase the product ■ Be willing to use their buying power to purchase ■ The authority to buy the product ● Minor purchasing alcohol ➢ Target Market Selection Process ○ 1. How many distinct marketing mixes are we as a company willing to have?

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2. How many target markets are we going to try and satisfy? Targeting Strategies ■ Market Segmentation ● Breaking down market into groups ○ Focusing on segments because they’re different in some way ■ Undifferentiated strategy ● Organization -> Single Marketing Mix -> Target mix ● Must have a homogeneous market ○ Everyone out there must have same need for your product ○ Communicate exact same way to everyone and it’ll work ○ Can be very difficult to implement in today’s dynamic environment ● Ex: ketchup ○ Most everybody uses ketchup in the same way ○ In theory, communicate ketchup to everyone in same way ○ So much clutter though so it’s hard to market in same way ■ Concentrated strategy ● Organization -> Single Marketing Mix -> Target market ● Ex: purchasing automobile manufacturers ○ A: high end ○ B: middle ○ C: lower end ○ If high end, doesn’t matter if you ignore lower end brands when marketing ○ If you’re a company with restrained resources, better way to market than those with many more resources ○ Biggest disadvantage: what if something goes wrong with that target market you were putting all efforts into? ○ Other disadvantage: if you want to grow in the future & expand, if you’re using this strategy can be kind of hard ■ Serve senior citizens, hard to create new products to capture college students ○ If high end brand, hard to create for low end because you specialize in high end ■ Differentiated strategy ● Organization -> Marketing mix I -> Target markets -> Marketing mix II ● Nike ○ A: youth ○ B: pros ○ C: recreational athlete ● Markets differently to each type of athlete ● Biggest disadvantage: extremely expensive

○ Not many companies can do this ➢ Market Segment ○ Market Segment should be: ■ Measurable ● In survey, qualifying questions ● You qualify, you do not ■ Accessible ● By communication & distribution channels ■ Different in its response ● To a marketing mix ■ Durable ● Not changing too quickly ● Can’t say “I know you’re going to change in 6 months” ■ Substantial enough ● In project, estimating size of market ➢ Segmentation Variables ○ Geographic ○ Demographic ○ Behavioral ○ Psychographic ○ Companies tend to purchase from secondary sources ➢ Market Segment Profiles ○ Develop profiles ■ Describe the similarities among potential customers within a segment ○ Examples of segmentation tools ■ Mybestsegments.com ■ Claritas 360 -- use zip code ■ Gives you an idea of consumer ■ Creates a story of their lifestyle ■ PRIZM premier ■ PSYCLE premier ■ Connexions gives you technology behavior ■ PSYCLE gives you financial behavior ○ Know target markets backwards and forwards ■ Benefits received - Burdens Endured ● Non-monetary ● Monetary ■ Can’t offer every benefit possible, just not possible ○ The Center for Generational Kinetics ■ Research on different generations ○ Project ■ Describe your chosen segment ● What tools do you have ● Profiles

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Market size

50 questions, multiple choice 50 minutes Bring large grey scantron Already have name, UIN filled out Doors open 10 minutes before exam As soon as you’re seated, start exam No electronics out until outside of room Focus on 3 chapters ■ 30 questions textbook focused ■ 20 questions focused on lectures, breakout, guest speakers Application/scenario based, not definitional Think of marketing implications associated with terms in textbook ■ THIS is what matters ■ Ex: what do marketers do in the prosperity stage? ● Expand product offerings ■ Write out implications associated w each term/step/stage Some terms sound very similar ■ Selective distortion/retention ■ When you think you got it, you can’t remember when in exam ■ Write out examples, stop yourself and know the difference between these terms Know categories of things ■ Some variables good for consumer markets, other for business markets ■ You need to know in depth ■ She’s trying to help you implement in the real world Don’t just memorize steps ■ Think of implications in each step Take detailed outlines, you will do the best ■ Write out examples Study class notes and guest speaker notes in detail...