Chapter 9- Marketing segmentation, targeting and positioning
Market- people with the willingness to buy, purchasing power
Target market- people you believe will buy your product
Consumer product- product for personal use
Business product- for directly/indirectly in production of other products for resale
Market segmentation- division of the total market into small groups. To satisfy different needs
The market segment has to be measureable purchasing power and size. Has to promote and serve market segment. Must be large enough.
o Geographic- based on location. Pay close attention to fast-growing states
o Demographic- gender, income/occupation, age, ...view middle of the document...
Mission- essential purpose that differentiates one company from others
Once a firm’s marketers figure out their company’s best opportunities, they can develop a marketing plan designed to meet the overall objectives.
Marketing strategy- an overall, company wide program for selecting a particular target market and then satisfying customers in that market through a carefully blending of the elements of the marketing mix, each of which is a component of the overall marketing strategy.
In the two final steps of the planning process marketers put the marketing strategy into action: they monitor performance to ensure that objectives are achieved.
Sometime a marketing strategy backfires.
All planning strategies have the goal of creating a sustainable competitive advantage for a firm in which other companies simply cannot provide the same value to their customers that the firm does- n matter how hard they try.
Porter’s five forces- model developed by strategy expert Michael Porter that identifies five competitive forces that influence planning strategy
First mover strategy- attempting to capture the greatest market share and develop long-term relationships by being the first to enter the market with good or service.
Second mover strategy- observing closely the innovations of first movers and then improving in them to gain advantage in the marketplace.
SWOT-analysis- helps planners compare internal organizational strengths and weaknesses with external opportunities and threats.
This form of analysis provides managers with a critical view of the organization’s internal and external environments and helps them evaluate the firm’s fulfillment of it’s basic mission.
Strategic window- limited periods when key requirements of a market and a firms particular competencies best fit together.
An affective marketing strategy reaches the right buyers at the right time, persuade them to try the product and develop a string relationship with them over time.
The basic elements of a marketing strategy consist of:
1) the target market
2) the marketing mix variables (4 P’s)
The target market
The group of people towards whom the firm aims its marketing effort and ultimately its merchandise.
Diversity plays an every-increasing role in the target markets.
Marketing mix- the blend of four strategic elements to fit the needs and preferences of a specific target market
Product is a broad concept that also encompasses the satisfaction of all consumers needs in relation to a good, service or idea.
It also includes decisions about customer service, package design, brand names etc.
Marketers develop distribution strategies to ensure that consumers find their products in the proper quantities at the right time and place.
Marketing channels are made up of institutions such as retailers and wholesalers- intermediaries that may be involved in a product’s movement from producer to final...