Professional Documents
Culture Documents
Mass Marketing
Mass Marketing
In mass marketing, the seller engages in the mass production, mass distribution and mass promotion of one product for all buyers. e.g. Coca-cola of 300ml for all OR Model- T Ford in black color
Segments
It consist of a group of customers who share a similar set of wants e.g. low cost basic transportation vs. Luxurious driving experience The marketer does not create the segments, but identify and target
Niches
It is more narrowly defined group seeking a distinctive mix of benefits. Marketer usually divide segment as sub-segment. Segments are normally large while the niches have distinct set of needs e.g. segment of heavy smokers include 2 niches those who dont care and wants to quit. e.g. Hallmark Greeting cards in Tamil, Marathi and Telagu
Local areas
Target marketing is leading to marketing programs tailored to the needs and wants of local customer group s trading areas, neighborhoods, even individual stores e.g. Seedless rare Black dates for high profile Muslims during Ramzan in local Market. e.g. McDonald as per the local taste, more local taste, sarso oil in North, coconut oil in South
Individuals
The ultimate level of segmentation leads to segments of one, customized marketing or one to one marketing e.g. Mass customization It is ability of a company to prepare on amass basis individually designed products, services, programs and communication to meet each customers requireme
Mattel Barbie
Hair color/Skin tone Hairdo, clothes, Accessories And NAME
Levis Jeans
Size/Color/ Fade Stitches , buttons, Style /Accessories
Paris Miki
Goggles /Glasses Number /Frame Glass color, Style, And Accessories
DeBeers
Engagement Rings Size/Color/ Gold/ platinum/ Diamond Pattern , Style and Accessories
Beijing
Bologna
Salen, Sweden
Moscow
Paris
Tokyo
Transaction Marketing
Focus on single sale Focus on Profitable transaction
Relationship Marketing
Focus on Customer retention Focus on CLTV
Short timescale
No emphasis on customer Moderate customer contact Brand Building thro advertising Focus on Customer acquisition No CSM Over promise, under delivered Focus on Shareholder
Long timescale
High Customer service emphasis High customer contact Brand Building thro Marketing Focus on Customer retention Measure CS and retention rate Under promise, over delivered Focus on Stakeholder
Accessible
The degree to which the segments can be reached & served
Substantial
The degree to which segments are large or profitable enough
Differentiable
The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
Actionable
The degree to which effective programs can be designed for attracting and serving of the segments
Demographic Segmentation
Most popular ways of distinguishing customers. They are easier to measure
Psychographic Segmentation
The degree to which segments are large or profitable enough
Behavioral Segmentation
The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
P R I C E
Diffused preferences Extreme preferences should have some what in Between or in centre, hoping to appeal all
SERVICE QUALITY
P R I C E
Clustered preferences (3 options) 1. Position in between or in centre (Natural Market) 2. Position in Largest group ( Concentrate Marketing) 3. Develop several brand each positioned in different segment.
SERVICE QUALITY
Market Targeting
Once the company has identified its market- segment opportunities, it has to decide how many and which ones to target In evaluating the segments the Company must look into 2 major factors 1 Segments attractiveness 2 Companies resources and objectives The Company can consider 5 different patterns 1 Single segment concentration 2 Selective specialization 3 Product specialization 4 Market specialization 5 Full Market Coverage
Market Targeting
M1 M2 M3 P1 P2 P3 M1 M2 M3
P1
P2 P3 M1 M2 M3 P1 P2 P3
Selective specialization
Advantage Multi Segment strategy Disadvantages Since no synergy very difficult to manage
Product specialization
Advantage One product for all markets, easy to handle Disadvantages Diversification becomes problem
Market Targeting
M1 M2 M3 P1 P2 P3 M1 M2 M3
Market specialization
Advantage One market multiple product, easy to handle Disadvantages Diversification becomes problem
P1
P2 P3
Positioning Strategy
It is a act of designing the companys offering and image to occupy a Distinctive place in the mind of the target market. It start with the product. A piece of merchandise, a service, a company, an institute or even a person. It is not what you do to a product. But is what you do the mind of the prospect. That is you position the product in the mind of the prospect.
- Ries & Trout
Positioning Strategy
A competitor has 3 Strategies alternatives 1 Strengthen its own current position Avis We are No. 2, we are trying harder 7-Up Uncola 2 Grab the unoccupied position 45% Less Fat, 3 De-position or re- position
Positioning Strategy
Micheal Treacy and Fred Wiersema Proposed a position Framework called Value Disciplines
The some Customers wants that firm which a) Advances on Technology ( Product Leader) other want b) Highly reliable performance( Operational excellence)or c) Few prefer to have High responsiveness in meeting their need ( Customer intimacy)
Positioning Strategy
Micheal Treacy and Fred Wiersema Proposed a position Framework called Value Disciplines
Product Leader
Operational excellence
Customer intimacy
Positioning Strategy
Micheal Treacy and Fred Wiersema Proposed a position Framework called Value Disciplines The Firm cannot be normally be best in all three ways They suggested 4 rules for success
1 Become best at one of the three 2 Achieve adequate performance in other two 3 Keep moving ones superior position, so that not loose to competitor 4 Keep becoming more adequate in other two, so that not loose to competitors
Few Images
Name Image Building Image Interior Image Location Image Product Image Brand Image Quality Image Quantity Image Range Image Service Image Behavior Image Price Image Involvement Image CSR Image
Product Differential
Form
Shape, size, color, physical structure, action time, quantity
Features
Oral B -T. Brush, bristles, soft , reaches cavities
Performance
4 levels- Low, high, average and superior
Services
Ordering ease Delivery Installation Customer training Customer installing Maintenance and repair Miscellaneous
Personnel
Competence Courtesy Credibility Reliability Responsiveness Communication
Channel
Coverage Expertise Performance
Types of Positioning
Attribute positioning Benefit positioning Use of application positioning User positioning Competitor positioning Product category positioning Quality or price positioning
Differentiation
Definition
It is a process of adding a set of meaningful and valued differences to distinguish the companys offering from the competitors offerings
Sales /Volume
Profits
Introduction
Growth
Maturity
Saturation
Time
Scalloped Pattern
Sales /Volume
Time
Style
Sales /Volume
Fashion
Fad
Time
Characteristi Introduction cs Sales Costs Profits Customers Low sales High /Customer Negative Innovators
Growth Rapid rising Ave./Customer Rising Early Adopters Growing No. Maximize Market Share
Middle majority Laggards Stable & decline Declining Maximize profit share Reduce Expenditure & Milk the brand Phase out weak Cut price
Competitors Few Marketing Objective Product Price Create product, awareness & Trail Offer a basic product Charge Cost Plus
Product extension Diversify Brand Price to penetrate Price to match market competitors
Distribution
Advertising Sales Promotion
Selective
Product awareness to Early Adaptors Use Heavy sales promotion to entice trails
Intensive
More Intensive
Built awareness & Stress Brand Interest in Masses Benefits & Diff.
Reduce, to take Increase to Reduce to minimal advantage , as the encourage level demand goes high Brand switching
ACQUISITION/ MERGER
ALLIANCE SIGNAL