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Reading 4, 6, 7 Sessions 5 & 6 - Coggle Diagram
Reading 4, 6, 7 Sessions 5 & 6
R4: Focusing on an offering
Markets
people/representatives with authority to make purchases
wide variety of people
Segmentation
Market is often section off by demographics, geography, psychographic and behavioural
Segments can be segmented by characteristics, willingness/unwilling low/high ability/low potential
Kotler & Armstrong - segment variables need to be:
-measurable
accessible
-substation
-differentiable
-actionable
Targeting
tend to focus on specific segments
consider: customers needs & wants, competitors and org. competencies and resources
"Four types of marketing strategies (figure pg 40)
Undifferentiated: making same offer to whole market
Differentiated: Making different offers to separate market segments
Concentrated: Focusing on one or a few market segments (niche)
Customised: One to one marketing often in a combination with segment stratedy
Can be ethical issues with targeting segments - to be aware and careful
Positioning
"the proffering of a product or service as a means to match the needs of a targeted segment is called positioning - markets us to differentiate offering from competing offerings"
Sample Formula
For... (target customers)
Brand X is ... (competitive set and subjective category)
Which gives the most... (promise or consumer benefit)
Because of... (reason to believe) - evidence to support promise to customer
Perceptual positioning maps = page 42
Successful positioning
" - Clarity
Consistency
Credibility
_Competitiveness
R6: Marketing Mix - Product
The Marketing Mix
Standard 4 P's (+ people) 7P's
when referencing service
All elements are important to "meet customers needs"
needs to be researched as not usually quick and easy to change
Figure 1, page 48 - marketing mix
Product
services & physical goods
"also includes
specifying products development req. to ensure informed by MR on needs/wants
packaging design
branding
after care service & support
Figure 2. Page 49 - Three levels of product
4 main types of product
-convinience
shopping
speciality
unsought
Innovation tends to be on the outer layers of the core
New Product development
needs, environment, technology changes and products may need to change too
"Crawfords 5 step basic new products process"
opportunity identification and selection
concept generation
concept/project evaluation
Development (includes technical & marketing tasks)
Launch"
Kotler & Armstongs development steps for new products
New product planning
idea generation
idea screening
concept testing
market/business analysis
product development
test marketing
commercialisation
Product planning in detail
Step 1. New product planning
Macro & micro analysiscompetitive positions, advantages
Tools: SWOT, Ansoffs matrix
Step 2: Ideas generation
Research labs
periodoc reviews
open calls for product suggestions (internally and externally
serendipitous suggestions
competitors or other organisations
collaboration
Step 3: Idea screening
Different methods for this, James Dysons is
Is it real?
Can we win?
Is it worth doing?
Table on page 53
Step 4:Concept Testing
Test with more detai including with consumers, focus groups etc - usually just the idea and descriptions
Step 5: Market/business analysis
evaluating sales, costs, profits against objectives and consumer attractiveness
Kotler/Armstrong suggests developing strategy
target market
planned value proposition (price, distribution and budget for 1st year)
sales, market share and profit goals for first few years
Step 6: Product Development
Prototype testing and consumer reactions
Step 7: Test Marketing
testing product and marketing mix on a select group to see what works rather than a full roll out immediatley
Step 8: commercialisation
Full scale launch of new product. Costly stage and may take time before all costs are recuperated
timing of launch needs to be considered carefully
Failure or Success
Product development is expensive and can be dropped at any of 8 stages
Reasons some fail (Kotler & Armstrong)
overestimation of market size
disregarding marketing research
higher than expected product development costs
poor product design
incorrect positioning
unsuitable launch timing
inappropriate pricing
poor promotion
aggressive competition from competitors
Failure reasons & lessons table on page 55/56
Some companies choose integration with other organisations rather than product development
Eight critical success drivers
a unique superior product
buiolding in the voice of the customer
doing the homework and front-end loading the project
getting sharp and early product and projection definition
spiral development
the world product
a well concieved, properly executed launch
speed counts
R7: The Marketing Mix - Place (distribution channels)
Distribution Channels
Customers often given a selection of channels to purchase from
value delivery network
Alternatives to physical distribution & storage (by Kotler & armstrong)
information
promotion
contact
matching
negotiation
financing
risk taking
Sometimes the distribution chains can be long and complicated. Figure 1 page 60 for traditional & VMS
VMS = vertical marketing system - which channel members act as a unified system under leadership of one channel member (contracts, same company, power/control)
Collaborative distribution
can be horizontal unified channel systems (org. same level with distribution channel & collaborate to mutual advantage (haulers sharing same space)
Sharing distribution resources
backhaul
co-loading
continuous move routing
physical internet
multiple distribution channels
many organisations use various methods (store & online)
distributuoin depending on the targeted consumers, how will they shop?
Choosing the right distribution channel influenced by
Level of service wishing to provide
size of company
type of product
competitors
environmental factors (STEEPLE)
channel members to maintain good relationships - a break down may affect the whole chain
org. to consider needs of customers and those in distribution network
important to put policies and procduresdown with the network to agree and ensure law is followed
exclusive distribution/dealing - preventing organisations to only sell/distribute their product and not competitors
Omni- Channel world
one of 7 big problems in marketing
blurred commerce lines, store & online
customers change mind how they want to purchase