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