MKTG Exam 1
Competitive Position: Market Follower
20% MS Strategies -Follow closely -Follow at a distance
Primary Research
Collect data and info and conduct research for specific questions
Market Segmentation
Geographic, Demographic, Psychographic, Behavioral
Marketing Process
1) Initial two steps: define who you are and understand the customer needs 2) Strategy: Segmentation, Targeting, Positioning (Tactics) 3) Tactics: Product, Price, Place Promotion
Marketing Research Process
1) Management Decision 2) Research Question 3) Value of Information 4) Research Design -exploratory -descriptive -casual 5) Research Design 6) Data Collection -Secondary, then Primary -Primary -Observation -Experiment -Survey -Interview -Focus Group 7) Data Analysis 8) Research Report
Competitive Position: Market Nicher
10% MS Strategies -By customer, market, quality-price, service -Multiple niching
Competitive Position: Market Challenger
30% MS Strategies -Full frontal attack -Indirect attack
Competitive Position: Market Leader
40% MS Strategies: -expand total market -protect market share -expand market share
Maslow HoN
As you further up the pyramid, the consumer perceives it has a higher value, will pay more for it
Micro-Environment
Company, suppliers, intermediaries, competitors, public, customers
Basic Competitive Strategies: Winning
Cost Advantage -Variable cost, marketing expense, operating expense Differentiation Advantage -Product features, service quality, brand reputation Focus -Serving a few market segments well rather than going after whole market
Interpersonal Determinants of Consumer Behavior
Cultural Influences - Successful strategies in one culture ma not extend to other culture groups Social Influences - Reference groups (family, friends, celebs), Opinion leaders (trend-setters, Asch phenonenon (natural vs. organic), family influences
Secondary Research
DO THIS FIRST Using existing data to track business performance or do routine research
Adjusting Global Strategies: Adapted (Multi-National)
Different strategy for each country: different target consumers, adopt brand identity, different products/marketing mix
Entering International Market, 3 Options
Exporting, Joint Venturing, Direct Investment (highest risk)
Adjusting Global Strategies: Standard (Global)
Focus on similarities across countries: same target consumer, same brand entity, same/similar products/marketing mix
Competitor Analysis
Identify, Describe, Evaluate, Project, Manage
McKinsey Loyalty Loop
If consumers have a positive post-purchase experience, they will consider product again right before initial consideration
Customer Targeting
Mass, Differentiated (small share of large market), Niche (large share of a small segment), Niche (local, individual) Targeting often means giving up some segments, targets have overlaps, targets change along with markets
To be useful, market segments should be:
Measurable, Accessible, Substantial, Actionable, Differentiable
Business Unit Decision Making Process
More triggered by integral needs, more information search effort (more parties involved), buyers and sellers are more dependent on each other, repeated purchase
Consumer Decision Making Process
Need Recognition, Information Search, Evaluation of Alternatives, Decision Making, Post Purchase Marketing can affect Information Search, Evaluation of Alternatives
Personal Determinants of Consumer Behavior
Needs and Motives, Perception and Attitude, Self Concept Theory
Basic Competitive Strategies: Value Disciplines
Operational Excellence -Delivery system, leading its industry in price and convenience Customer Intimacy -Satisfying unique customer needs through a close relationship with/and intimate knowledge of consumer Product Leadership -Offering a continuous stream of leading-edge products or services
Value Equivalence Line
Perceived Cost vs. Perceived Benefits
Positioning Model
Place: the place the product occupies in customer's minds Rank: the position the brand/product has with respect to its competition Attitudes: propensity of consumers towards the particular brand in the targeted market
Macro-Environment
Political-legal, competitive, social-cultural, economic, technological
Defensive Strategies
Positive: hold onto customer, emphasize perceived advantages Parity: hold onto customer, down play perceived drawbacks Inertial: Decelerate loss of consumers, emphasize perceived advantages Retarding: decelerate loss of consumers, down play perceived draw backs
Managing Competitors
Pre-emptive, Warning, Tit for Tat, Misinformation
Integrated Marketing Programs
Product, Price, Place, Promotion
Cultural Knowledge
Product, promotion, place, pricing differences
High Involvement Purchase Decisions
Purchases with high levels of potential social or economic costs and consequences
Low Involvement Purchase Decisions
Routine purchases that pose little risk to the consumer
SWOT
SW: Internal OT: External
When starting marketing research...
Start with exploratory (gather general info) or descriptive research (understand the problems). Follow with casual research (test hypotheses to answer 'what-if' questions)
Positioning Statement
Target group, brand concept, the difference
Customer Driven Marketing Strategy
To create value for targeted consumers: Select Customers to Service -Segmentation -Targeting Decide on a Value Proposition -Differentiation -Positioning