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Kotler PPT 301 400
Kotler PPT 301 400
An easily identifiable demographic group which is often targeted by marketers is college students. Do you think this is influenced more by a common economic status of the target group, geographic concentration of a specific age group, or some other factor(s)?
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Social Class
Psychographic Segmentation
Lifestyle
TimeTime-constrained multitasking MoneyMoney-constrained
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Improvements in both the average standard of living and in health care have had profound effects in the industrialized world during the last two generations. Other than an increase in the average life expectancy for both men and women, what effects has this trend toward longer and healthier lives in general had on the traditional life stage assumptions that marketers make?
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Values
Core values
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Benefits
Mobil has identified five segments and their sizes Road Warriors 16% Generation F 27% True Blues 16% Home Bodies 21% Price Shoppers 20%
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Market Targeting
Evaluating and Selecting the Market Segments
SingleSingle-Segment Concentration Selective Specialization Product Specialization Market Specialization Full Market Coverage
Undifferentiated marketing Differentiated marketing
Market Targeting
Higher costs using differentiated marketing include:
Product modification cost Manufacturing cost Administrative cost Inventory cost Promotion cost
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Market Targeting
Additional Considerations
Ethical Choice of Market Targets
Supersegment
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Market Targeting
Intersegment Cooperation
Chapter 11 Positioning and Differentiating the Market Offering Through the Product Life Cycle
by
Kotler on Marketing
Watch the product life cycle; but more important, watch the market life cycle.
Chapter Objectives
In this chapter, we focus on the following questions:
How can the firm choose and communicate an effective positioning in the market? What are the major differentiating attributes available to firms? What marketing strategies are appropriate at each stage of the product life cycle? What marketing strategies are appropriate at each stage of the markets evolution?
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Table 11.1: Examples of Value Propositions Demand States and Marketing Tasks
Company and Product Perdue (chicken) Target Customers QualityQualityconscious consumers of chicken SafetySafetyconscious upscale families ConvenienceConvenienceminded pizza lovers Benefits Tenderness Price 10% premium Value Proposition More tender golden chicken at a moderate premium price The safest, most durable wagon in which your family can ride A good hot pizza, delivered to your door door within 30 minutes of ordering, at a moderate price
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20% premium
15% premium
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Can you think of any companies that market the same product or service offering to multiple segments using different strategies? Are the different segments being offered different value propositions?
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Company Standing 8 6 8 4
Competitor Standing 8 8 6 3
Differentiation Tools
Figure 11.2: The BCG Competitive Advantage Matrix
Differentiation Tools
Product Differentiation
Form Features
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Differentiation Tools
Performance Quality Conformance Quality Durability Reliability Reparability Style Design: The Integrating Force
Feature
(a)
(b)
$100
$200
600
600
Automatic transmission
800
2,400
Services Differentiation
Ordering Ease
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The home page for Peapod, the nations largest online grocer
Differentiation Tools
Delivery
Quick response system
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Differentiation Tools
Many e-commerce ventures fail because eof distribution problems in the so-called solast mile (the local distribution portion of shipping of online purchases). Can a marketing plan help offset some of these potential pitfalls?
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Miscellaneous Services
Personnel Differentiation
Competence Courtesy Creditability Reliability Responsiveness Communication
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Differentiation Tools
Channel Differentiation Image Differentiation
Identity Image
Symbols, Colors, Slogans, Special Attributes Physical plant Events and Sponsorship Using Multiple Image-Building Techniques Imagewww.bookfiesta4u.blogspot.com 11-343
Which differentiation tool would be most useful for a dot.com startup? Why?
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MarketingMarketing-Mix Modification
Prices Distribution Advertising Sales promotion Personal selling Services
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Market evolution
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Market Evolution
DiffusedDiffused-preference market options
A single-niche strategy singleA multiple-niche strategy multipleA mass-market strategy mass-
Market Evolution
Decline An Example: The Paper-Towel Market Paper-
Growth
MarketMarket-growth stage options
SingleSingle-niche strategy MassMass-market strategy MultipleMultiple-niche strategy
Maturity
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Kotler on Marketing
Who should ultimately design the product? The customer, of course.
Chapter Objectives
In this chapter, we focus on the following questions:
What challenges does a company face in developing new products? What organizational structures are used to manage new-product development? newWhat are the main stages in developing new products, and how can they be managed better? What factors affect the rate of diffusion and consumer adoption of newly launched products?
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Organizational Arrangements
NewNew-product deployment requires specific criteria one company established the following acceptance criteria
The product can be introduced within five years The product has a market potential of at least $50 million and a 15 percent growth rate. The product would provide at least 30 percent return on sales and 40 percent on investment. The product would achieve technical or market leadership.
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Organizational Arrangements
Budgeting For New Product Development
3Ms approach:
15% rule Each promising idea gets an executive champion Expect some failures Golden Step awards handed out each year
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Table 12.1 Finding One Successful New Product (Starting with 64 New Ideas)
Stage 1. Idea screening 2. Concept testing 3. Product development 4. Test marketing 5. National launch Number of Ideas 64 16 8 4 2 Pass Ratio 1:4 1:2 1:2 1:2 1:2 Cost per Product Idea $ 1,000 20,000 200,000 500,000 5,000,000 $5,721,000 Total Cost $ 64,000 320,000 1,600,000 2,000,000 10,000,000 $13,984,000
Organizational Arrangements
Organizing New-Product Development NewProduct managers NewNew-product managers HighHigh-level management committee New product department Venture teams
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Organizational Arrangements
StageStage-gate system
Gatekeepers make one of four decisions:
Go Kill Hold Recycle
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Some of the most notable drop-errors have dropcome from the most recognizable names in American business. Xerox saw the potential of the copy machine, IBM and Eastman Kodak did not. IBM thought the personal computer market would be miniscule. Can you think of any dropdrop-errors that the company didnt survive?
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Relative Weight Product Success Requirements Unique or superior product High performance to cost ratio High marketing dollar support Lack of strong competition Total
Rating
scale: .00-.30 poor; .31-.60 fair; .61-.80 good. Minimum acceptance rate: .61 .00.31.61-
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Concept development
Category concept Product Productpositioning map Brand concept
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Sometimes a new product is developed, like the felt-tip pen and the walkman style feltpersonal music device. Consumers werent clamoring for either of these products before they came to market. Most people hadnt even conceived of such an item. Careful planning developed markets for these new lines. Can you think of more recent examples? www.bookfiesta4u.blogspot.com
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Conjoint Analysis
Example: five design elements
Three package designs Three brand names Three prices Possible Good Housekeeping seal Possible money-back guarantee moneywww.bookfiesta4u.blogspot.com 11-379
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Figure 12.7: Adopter Categorization on the Basis of Relative Time of Adoption of Innovation
Kotler on Marketing
Your company does not belong in markets where it cannot be the best.
Chapter Objectives
In this chapter, we focus on the following questions:
What factors should a company review before deciding to go abroad? How can companies evaluate and select foreign markets to enter? What are the major ways of entering a foreign market? To what extent must the company adapt its products and marketing program to each foreign country? How should the company manage and organize its international activities?
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