Marketing

WEEK 2
 Agenda for Today

Week 2. Marketing strategy

Strategy
STP (segmentation, targeting, positioning)
Marketing mix
Strategic Planning Process
 Value Proposition Statement

• Firms typically segment markets and then identify different target markets, or groups of customers,
they want to reach when they are developing their value propositions.
• A value proposition in marketing is a statement that summarizes the benefits
that a company offers to its customers.
Assume you have an interview for an Assume you have an interview for an Marketing
Marketing position. Write a value position. Write a value proposition emphasizing why
proposition emphasizing why you are you are the best candidate for the position relative
the best candidate for the position to other recent college graduates.
relative to other recent college
graduates. Example:
Proven leadership skills in managing cross
Example: Talent in analyzing functional teams.
complex data and providing useful Honest and hard working person.
marketing insights to increase sales. Effective communication skills.
 Value Proposition - Marketing

• Firms typically segment markets and then identify different target markets, or groups of
customers, they want to reach when they are developing their value propositions.

1.FedEx: Manage Your Home Deliveries

2.LG: State-of-the-art Living Experience
3.Samsung: Get Ready to Unfold Your World

Give examples of Value proposition of business you are familiar with.

 Target Market

The segment(s) or
group(s) of people and
organizations you decide
to sell to is called
a target market.
 Targeted Marketing and Mass Marketing

• Targeted marketing, or differentiated marketing, means that you may differentiate some aspect of
marketing (offering, promotion, price) for different groups of customers selected. It is a relatively new
phenomenon.

• Mass marketing, or undifferentiated marketing, came first. It evolved along with mass production and
involves selling the same product to everybody. You can think of mass marketing as a shotgun approach:
you blast out as many marketing messages as possible on every medium available as often as you can
afford (Spellings, 2009). By contrast, targeted marketing is more like shooting a rifle; you take careful aim
at one type of customer with your message.
Targeting a specific group
Benefits of Target Marketing

• Avoid head-on competition with other firms trying to capture the same customers.
• Develop new offerings and expand profitable brands and products lines.
• Remarket older, less-profitable products and brands.
• Redistribute money and sales efforts to focus on your most profitable customers.
 Marketing Strategies

• Strategies are the means to the ends, the game plan, or what a firm is going to do to achieve its objectives.
• Successful strategies help organizations establish and maintain a competitive advantage that competitors cannot
imitate easily.
• Tactics include specific actions, such as coupons, television commercials, banner ads, and so on, taken to execute
the strategy.
• PepsiCo attempts to sustain its competitive advantage by constantly developing new products and
innovations.
• The tactics may consist of specific actions coupons; buy one, get one free, etc.).
• Firms often use multiple strategies to accomplish their objectives and capitalize on marketing opportunities.
For example, in addition to pursuing a low cost strategy (selling products inexpensively), Walmart has
simultaneously pursued a strategy of opening new stores rapidly around the world.
 Marketing Plan

• A marketing plan is a strategic plan at

the functional level that provides a
firm’s marketing group with direction.
• It is a road map that improves the firm’s
understanding of its competitive
situation. The marketing plan also helps
the firm allocate resources and divide
the tasks that employees need to do for
the company to meet its objectives.
 Marketing Plan Vs Marketing
Strategy
Your marketing strategy captures what your company must do to reach its goals, while the
marketing plan outlines the specific steps to turn those goals into reality and reinforce the
established strategy.
Here are some other differences between a marketing plan and a marketing
strategy:
• Definition: The marketing strategy is the reason you have marketing efforts.
This can be because the business needs to earn more money to support its
growth, or the organization requires more brand recognition to secure long-
lasting customers. In contrast, a marketing plan is the method by which you'll
execute your strategy.
• Purpose: The purpose of a marketing strategy is to align your marketing
goals with the organization's overarching goals, while the purpose of a
marketing plan is to develop the specific steps you'll take to realize your
marketing goals.
• Focus: Your marketing strategy will include your goals, campaign objectives,
 Sections in Marketing Plan

1. Executive Summary:
1. Overview of the entire marketing plan.
2. Summary of key objectives, strategies, and tactics.
3. Highlights of expected outcomes and key performance indicators (KPIs).
4. Concise overview of the market environment, target audience, and competitive landscape.
2. Situation Analysis:
1. Market Analysis: Assessment of the overall market size, growth trends, key segments, and
opportunities.
2. SWOT Analysis: Examination of the organization's strengths, weaknesses, opportunities, and
threats.
3. Competitor Analysis: Evaluation of competitors' strengths, weaknesses, strategies, and market
positioning.
4. Customer Analysis: Understanding of the target audience's demographics, preferences, needs, and
behaviors.
3. Marketing Strategy:
1. Target Market: Definition of the specific segments or demographics the company aims to reach.
2. Positioning Strategy: Statement of how the company wants to be perceived relative to competitors
in the minds of consumers.
4. Marketing Mix (4Ps or 7Ps):
i. Product: Description of the company's products or services, including features, benefits, and differentiation.
ii. Price: Pricing strategy, including pricing models, pricing tiers, discounts, and promotions.
iii. Place (Distribution): Channels and methods used to distribute products or services to the target market.
iv. Promotion: Communication strategies and tactics, including advertising, public relations, sales promotions,
and digital marketing initiatives.
v. People: Inclusion of people as part of the service delivery process in service-based businesses.
vi. Process: Description of the processes involved in delivering products or services to customers.
5. Implementation and Control:
i. Action Plan: Detailed timeline and specific tasks to be executed to implement the marketing strategies and
tactics.
ii. Budget Allocation: Allocation of financial resources to support marketing activities, including advertising,
promotions, and other initiatives.
iii. Metrics and KPIs: Identification of key performance indicators to measure the effectiveness of marketing
efforts, such as sales growth, customer acquisition, and brand awareness metrics.
iv. Monitoring and Evaluation: Regular review and assessment of marketing performance against objectives and
benchmarks, with adjustments made as needed to optimize outcomes.
Market Segmenting, Targeting &
Positioning
 Positioning – Making product stand
out
Why should buyers purchase your offering versus another?

• If your product faces competition, you will need to think about how to “position” it in the marketplace
relative to competing products. After all you don’t want the product to be just another “face in the
crowd” in the minds of consumers. Positioning is how consumers perceive a product relative to the
competition. Companies want to have a distinctive image and offering that stands out from the
competition in the minds of consumers.
Nike Positioning
Selecting a target Market

After you segment buyers and develop a measure of consumer insight about them, you
can begin to see those that have more potential. Now you are hunting with a rifle instead
of a shotgun.

An attractive market has the following characteristics:

•It is sizeable (large) enough to be profitable given your operating cost. Only a tiny fraction of the
consumers in China can afford to buy cars. However, because the country’s population is so large (nearly 1.5
billion people), more cars are sold in China than in Europe (and in the United States, depending on the month).
•It is growing. The growing population, making it a very attractive market for consumer products companies.
•It is not already swamped by competitors, or you have found a way to stand out in a crowd. IBM used to make
PCs. However, after the marketplace became crowded with competitors, IBM sold the product line to a Chinese
company called Lenovo.
•Either it is accessible or you can find a way to reach it. Accessibility, or the lack of it, could include geographic
accessibility, political and legal barriers, technological barriers, or social barriers. For example, to overcome
geographic barriers, the consumer products company Unilever hires women in third-world countries to distribute the
company’s products to rural consumers who lack access to stores.
•The company has the resources to compete in it. You might have a great idea to compete in the wind-power
market. However, it is a business that is capital intensive. Does your organization have the resources to do this?
 Segmentation – 10 Mins break

What is Segmentation?

Market segmentation is the process of dividing a

broad consumer or business market, normally
consisting of existing and potential customers, into
sub-groups of consumers (known as segments)
based on shared characteristics.
 Class Exercise

Think of a product you want to market

globally or locally, provide the
segmentation factors, targeting,
positioning ideas.
 Market Segmenting, Targeting &
Positioning
Health drink – Horlicks

Segment based on demographics (age,

gender)
Age:
Blue – above 60 - X
Green – 40-60 age
Red – below 40

Beneficial for bone health in the elderly

Target market above age 40

Question:
Think of a product you want to market
globally or locally, provide the
segmentation factors, targeting,
How markets are segmented?

• Market segmentation seeks to identify targeted groups of consumers to tailor

products and branding in a way that is attractive to the group.
• Markets can be segmented in several ways such as geographically, demographically,
or behaviorally.
Benefits of Segmentation

• With risk minimized and clarity about the marketing and delivery of a product
heightened, a company can then focus its resources on efforts likely to be the
most profitable.
• Market segmentation can also increase a company's demographic reach and
may help the company discover products or services they hadn't previously
considered.
 Types of Segmentation

Notice that the characteristics fall into one of four segmentation

categories: behavioral, demographic, geographic, or psychographic. We’ll discuss each of
these categories in a moment. For now, you can get a rough idea of what the categories
consist of by looking at them in terms of how marketing professionals might answer the
following questions:
•Behavioral segmentation. What benefits do customers want, and how do they use our
product?
•Demographic segmentation. How do the ages, races, and ethnic backgrounds of our
customers affect what they buy?
•Geographic segmentation. Where are our customers located, and how can we reach them?
What products do they buy based on their locations?
•Psychographic segmentation. What do our customers think about and value? How do
they live their lives?
Ways of Segmenting
 Segmenting by Behaviour

Segmenting by Behavior
Behavioral segmentation divides people and organization into groups according to how they behave with or act
toward products. Benefits segmentation—segmenting buyers by the benefits they want from products—is very
common.
Take toothpaste, for example. Which benefit is most important to you when you buy a toothpaste: The toothpaste’s
price, ability to whiten your teeth, fight tooth decay, freshen your breath, or something else? Perhaps it’s a
combination of two or more benefits. If marketing professionals know what those benefits are, they can then tailor
different toothpaste offerings to you (and other people like you). For example, Colgate 2-in-1 Toothpaste &
Mouthwash, Whitening Icy Blast is aimed at people who want the benefits of both fresher breath and whiter teeth.
 Segmenting of Demographics

Segmenting buyers by personal characteristics such as age, income, ethnicity and nationality, education, occupation,
religion, social class, and family size is called demographic segmentation. Demographics are commonly utilized to
segment markets because demographic information is publicly available in databases around the world.

You can obtain a great deal of demographic information on the Census Bureau’s Web site and The World Factbook (
http://www.cia.gov/cia/publications/factbook), which contains statistics about countries around the world. In addition
to current statistics, the sites contain forecasts of demographic trends, such as whether some segments of the
population are expected to grow or decline.
 Segmenting by Geography

Segmenting by Geography
Suppose your great new product or service idea involves opening a local store. Before you open the store, you will
probably want to do some research to determine which geographical areas have the best potential.

For instance, if your business is a high-end restaurant, should it be located near the local college or country club?
If you sell ski equipment, you probably will want to locate your shop somewhere in the vicinity of a mountain
range where there is skiing. You might see a snowboard shop in the same area but probably not a surfboard shop.
Where should a surfboard shop be located?
By contrast, a surfboard shop is likely to be located along the coast, but you probably
would not find a snowboard shop on the beach.
 Segmenting by Psychographics

Psychographic segmentation can help fill in some of the blanks. Psychographic information is frequently gathered
via extensive surveys that ask people about their activities, interests, opinion, attitudes, values, and
lifestyles. Example:
You can divide customers is based on their lifestyle. A person's lifestyle can tell you a lot
about how, when, and where they like to spend their money, time, and energy.
• A high-end jewelry brand that customizes based on the demands of the customers
• A fashion brand that targets middle-class buyers to buy trendy clothes at affordable prices
• A company that targets vegans
• Luxury mobile-manufacturing brand that specializes in customization
MCQs

Which of the following refers to marketing

channel?

A. Integrated Marketing Communication

B. Distribution

C. Marketing Myopia

D. Retailing
Which of the following refers to marketing
channel?

A. Integrated Marketing Communication

B. Distribution

C. Marketing Myopia

D. Retailing
Marketing segmentation is useful for___________

A. Prospects Identification

B. To know the customer’s tastes and preferences

C. To target current clients

D. All of the above

Marketing segmentation is useful for___________

A. Prospects Identification

B. To know the customer’s tastes and preferences

C. To target current clients

D. All of the above

The key customer markets consist of ____________

A. Government Markets

B. Business Markets

C. Consumer Markets

D. All of the above

The key customer markets consist of ____________

A. Government Markets
Customer Vs Consumer
B. Business Markets
Consumer > use the product >
C. Consumer Markets consume

D. All of the above

Customer > Resell, or create another
product > product another product
Which one of the following is a key to build lasting relationships with
consumers?

A. Price of the product

B. Need recognition

C. Customer satisfaction

D. Quality of product
Which one of the following is a key to build lasting relationships with
consumers?

A. Price of the product

B. Need recognition

C. Customer satisfaction

D. Quality of product
______ are products bought by individuals and organizations for further processing or
for use in conducting a business.

A. Consumer products

B. Speciality products

C. Industrial products

D. Personal Products
______ are products bought by individuals and Consumer Products:
organizations for further processing or for use in Example – Soap,
conducting a business. toothpaste

A. Consumer products Industrial Products:

- Rawmaterials
B. Speciality products - Manufacture a
dress/designer garment –
C. Industrial products Cloth – Yarn – Cotton
- Mobile – RM – reuse it to
D. Personal Products create a complete product
Buying goods and services for further processing or for use in the production
process refers to _________

A. Consumer markets

B. Government markets

C. Business markets

D. International markets
Buying goods and services for further processing or for use in the
production process refers to _________

A. Consumer markets

B. Government markets

C. Business markets

D. International markets
A firm has decided to localize its products and services to meet local market
demands. Which one of the following approaches is a good approach for this
segmentation?

A. Geographic

B. Demographic

C. Psychographics

D. Behavioural
A firm has decided to localize its products and
services to meet local market demands. Which one
of the following approaches is a good approach for
this segmentation?

A. Geographic

B. Demographic

C. Psychographics

D. Behavioural
Which one of the following statements by a company chairman BEST
reflects the marketing concept?

A. We have organized our business to satisfy the customer needs

B. We believe that the marketing department must organize to sell what

we produce

C. We try to produce only high quality, technically efficient products

D. We try to encourage company growth in the market

Which one of the following statements by a company chairman BEST
reflects the marketing concept?

A. We have organized our business to satisfy the customer needs

B. We believe that the marketing department must organize to sell what

we produce

C. We try to produce only high quality, technically efficient products

D. We try to encourage company growth in the market

 Differentiate Generic and Product
Market
What is Generic Product?
A generic product is something that is sold on the name of the product i.e.
what it actually is, rather than having a brand name. Such products
generally have the name of the local shop which is selling the product or a
lesser known name, but sometimes they don’t have any brand name on
them.

Generic products are also termed as generic brands. These are less
expensive than the branded products and do not have a widely recognised
name or logo on them. Generic products can be made by smaller companies
or sometimes by the same companies that make branded products. These
products normally do not have any kind of advertisements or promotions.
They are brought by customers when they find them in the shelves in stores.
 Product Market

The product-type product-market includes all brands of a particular product type. The
product type is a product category or product classification that offers a specific set of
benefits intended to satisfy a customer's need or want in a specific way. Differences in
the products within a product-type product-market may exist, creating product-
variants. For example, Product type Mobile > Samsung, Apple, OnePlus, …

Product Type > Technology Gadgets > Mobile, Laptop, iPad, Watches, ear pods,
Product Type > Furniture > Tables, chairs, Wardrobe, Sofa, Mirror, dressing table….
 Key Takeaway

We discussed about Marketing strategy, plan, value proposition, Target Market,

Segmentation, Types of Segmentations, Positioning of product with examples, MCQs,
discussion questions to think and propose ideas and solutions.
 Plan for Week 3

Week 3. Marketing Environment (Week starting 30/01/2023)

Micro environment analysis 2 of 9
Macro environment analysis
SWOT / TOWS analysis
PESTLE analysis.
What is a Brand?

A brand is a name,
term, design, symbol or
any other feature that
distinguishes one
seller's good or service
from those of other
sellers
Question:
Think of a product you want to market globally or locally, provide the
segmentation factors, targeting, positioning ideas. Refer to example below.
Question:
Think of a product you want to market globally or locally, provide the
segmentation factors, targeting, positioning ideas. Refer to example below.
 Acknowledgement

Market segmentation – Wikipedia

What Is Market Segmentation? Definition and Examples – The

Street
Book: Gary Armstrong & Philip Kotler (2023) Marketing: An
Introduction 15th Edition. Pearson