Unit 4 (completar) - Apuntes STRATEGIC MARKETING PDF

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Apuntes en ingles tema 4...

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INTRODUCTION TO BUSINESS ADMINISTRATION TOPIC 4: STRATEGIC MARKETING 1.WHAT IS MARKETING? 2.MARKETING RESEARCH 3.MARKET SEGMENTATION, TARGET MARKET SELECTIOB AND POSITIONING. MARKETING: Is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing or Competitive Strategy? -Linkage with Porter`s competitive strategies: The way in which a firm competes and creates a sustainable competitive advantage. -Cost leadership vs differentiation Competitive advantage: capability of the firm of creating value to the market both higher than the value offered by its direct competitors, and than the costs sustained by the firm to create that value) Marketing strategy is essential in defining a firm’s competitive strategy. MARKETING ORIENTATION: -Adoption of a marketing orientation ideology To enhance the role of customer needs within the whole organization To promote stable relations with customers To promote interactions between firm departments To emphasize the role of marketing departments Marketing integrates customers’ needs with firm’s needs. Customers are at the core of form behaviour MARKETING RESEARCH -Marketing research in the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. -Analysis of customers’ needs, wants and demand *NEEDS: state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging (I am thirsty) *WANTS: for that a human need takes as shaped by culture and individual personality. (I want a coca cola) *DEMAND: human wants backed by buying power. (I have money to buy a coca cola) DIFFERENT TYPES OF RESEARCH: (important) -EXPLORATORY RESEARCH: is the gathering of preliminary information that will help to define the problem and suggest hypotheses -DESCRIPTIVE RESEARCH: is to describe things such as market potential for a product or the demographics and attitudes of consumers who buy the product -CAUSAL RESEARCH: is to test hypotheses about cause-and-effect relationships

-QUALITATIVE RESEARCH -QUANTITATIVE RESEARCH SOURCES OF INFORMATION

Secondary sources

Is data about the problem already available?

t ex t o

Primary sources

Cross section vs. Time series vs. Panel data

MARKETING PROCESS

Marketing Process Marketing Analysis (The 5 C’s) Customers

Creating Value

Company

Competitors

Market Segmentation

Collaborators

Product and Service Positioning

Target Market Selection Marketing Mix (The 4 P’s)

Product & Service Capturing Value Sustaining Value

Place / Channels

Promotion

Pricing Customer Acquisition

Customer Retention Profits Source: Note on Marketing Strategy – Harvard Business School 2006

10

MARKETING ANALYSIS: -Customer needs What needs does the company seek to satisfy? -Company skills What special competence does the company possess to meet those needs? -Competition Who competes with the company in meeting those needs? -Collaborators Who should the company enlist to help it and how should the company motivate them? Partners and suppliers

-Context What cultural, technological and legal factors limit what is possible? CREATING VALUE: SEGMENTATION Market segmentation is the process that companies use to divide groups into market segments of potential or current customers with different characteristic, needs or behaviours HOW? Geographic Nations, regions, urban vs. rural Demographic Age, gender, family size and life cycle, or income Psychographic Social class, lifestyle, or personality Behavioral Occasions, uses (business vs tourists)

REQUIREMENTS FOR EFFECTIVE SEGMENTATION Segmentation process should meet 4 criteria: 1-MEASURABILITY: Segments’ size and purchasing intention must be measured 2.DIFFERENTIAL RESPONSE: Segments different in terms of their sensitivity to firms’ marketing actions 3.ADEQUATE SIZE: So as to justify the development of different products and marketing programs 4.ACCESIBILITY: Degree to which customers belonging to segments can be reached, either because of self-selection or controlled coverage Mobile phones – total sample: 44people EXAMPLE

N.custom.

Display

Battery

Colours

10

8

8

7

15

4

9

6

8

9

3

7

11

5

5

6

6.5

6.25

6.2

2.38

2.75

0.57

Average Devst

Spartan but useful

High

15 Lowcost

Luxury

10 Posh but useless

11

8

Low Low

High

TARGET MARKET SELECTION -It involves evaluating each market segment’s attractiveness and selecting one or more of the market segments to enter. .Consumers: purchase criteria as the rule of the game .Companies should compare strengths and weaknesses to its competitors. .Corporate goals and the fit of the segment with these goals. .The need for/availability of appropriate collaborators to market successfully. .The likely of obtaining profits from the segment. -Which segments to address? 1.Undifferentiated marketing strategy 

– Segments are ignored, the entire market is approached with a unique (generic) product



– Exploitation of economies of scale 2.Differentiated marketing strategy – Adoption of a full market coverage strategy,but with a portfolio of products for each segment – Is it possible to exploit economies of scale in this case? 3.Focused marketing strategy (niche strategy) -Concentration of resources on one or a few segments- specialized markets. – What is the opportunity cost in this case? 4.At the end, positioning

Positioning is the act of designing and communicating the firm’s offer so that it occupies a distinct and valued place in the target customers mind -If a differentiated marketing strategy is adopted, a firm’s positioning has to differ from competitors’ positioning

Strategic vs Operational Marketing Difference between Strategic and Operational Mktg Strategic Marketing (analysis) Analyze the reference market (consumer needs and wants, level of demand and its evolution) MktgResearch Identify relevant market segments Segmentation Decide which segments to address Targeting Choose how to compete wrt competitors Positioning Design the marketing plan

Operational Marketing (action) Definition of the marketing mix (the 4 P’s) Product Customer satisfaction Price Customer cost Promotion Customer communication Placement Customer convenience

Implementation and controlling....