Market size and Market share analysis

1. Potential Market
• Consumers have interest – Constraints of income and market access
• Product is relevant to them – Unaware of availability due to poor marketing

2. Available Market: Consumers have interest, income and market access to a particular
product.

3. Target Market: Part of available market pursued by the company.

4. Market Demand: Total volume bought by particular

• customer group
• in time period
• in marketing environment
• under marketing program.

• Market Demand depends on:

o External marketing conditions facing the firm
o Marketing investments made by the firm

Market Demand Calculation: Is the product of the number of buyers purchasing, the amount
of units they purchase in a year, and the average retail price they pay for a unit.

(No of buyers in the market)*(Annual qty purchased by ave buyer)*(Ave price paid for unit)

Market forecast: Market demand corresponding to a certain level of marketing expenditure.

5. In case of competition from substitutes:

Market demand includes demand for all products in the category.
• Primary demand: Total volume demanded by customers for a product category
• Secondary demand: Total volume demanded by customers for a specific brand /
product

Marketing expenditures will increase market demand.

• Market minimum can be achieved without any marketing spending.
• After attaining marketing potential, further marketing expenditure will not increase.

Larger the distance between market potential and market minimum, demand will become
sensitive to marketing expenditures.
1. Product Demand will depend on:
• Our level of marketing expenditures versus our competitors spending levels
• Effectiveness and efficiency of our marketing expenditures versus our competitors

2. Unit share & Dollar share

Unit share: Measures percentage of the unit market demand that a firm has captured
Dollar share: Measures percentage of the dollar market demand that a firm has captured
Higher share in units need not translate into higher dollar share

3. Market Penetration Index

It measures percentage of consumers in the potential market who are currently purchasing
a product in the category.

Formula = (Market demand) / (No of consumers in potential market)

• Low market penetration indicates room for growing primary demand

• High market penetration indicated NO room for growing primary demand

4. Product / Brand Penetration Index

It measures percentage of consumers in the particular target market who are purchasing a
product or brand.

Formula = (Product demand) / (No of consumers in target market)

• Low product penetration indices indicate opportunity to grow product / brand demand
within target market.

• High product penetration indices indicate NO opportunity to grow product / brand

demand within target market.
 Session

1. What is MARKET?
A place / space in which commercial dealings are conducted.

2. TYPES OF MARKET

Geography: Local; Regional; National & International

Economics
- Perfect competition: Infinite buyers and sellers so difficult influence price
- Monopoly: One seller many buyers, seller determines price
- Oligopoly: Small number of sellers, if they collude can determine price

- Monopolistic competition: Each player can differentiate products / services

thereby determining price

- Monopsony: Single buyer can determine price at which to purchase product /

service

Type of customer: Consumer markets and industrial markets

3. How do marketers differentiate?

- Value and satisfaction

4. How do we understand value?

Benefits Returns Costs Risks
-
- Functional - Rent - Monetary - Financial
- Emotional (bonding) - Income (Acquisition; - Time
- Social (Recognition) Possession; - Psychological
- Experiential Usage)
(Design; - Time & Energy
Service; - Psychological
Brand)
- The sum of tangible and intangible benefits and costs to consumer.
- Value entails: Quality, service and price {Customer value Triad}
 - Quality and service improvements improve value perception
- Price improvements decrease value perception

5. How do we understand satisfaction?

- A person’s judgement of a product’s perceived performance in relationship to
expectations

6. What is marketing?
Identification, creation, communication, delivery, and monitoring of customer
value.

7. How to identify whether a product is valued by customers?

- Need: A basic human requirement
- Want: Directed to specific objects to satisfy need.
- Demand: When want is backed by the ability to pay
- Marketers should focus on converting the need to demand

8. How do we understand the customer and the consumer?

- Customer: A person who buys goods or services from a shop or business
- Consumer: A person who uses (buys) the goods or services bought

9. How is marketing different from sales?

- Sales is a sub-set of marketing involving conversion of prospects to customers

10. Company Orientation toward market place

- Production concept
- Product concept
- Selling concept
- Marketing concept
COMPETITIVE STRATEGIES FOR MARKET LEADERS

1. Expanding Total Market Demand

• New customers:

- Who might use it but do not (Market penetration)

- Who have never used it (New-market segment)

- Who live elsewhere (Geographical expansion)

• More usage: Increase amount, level, or frequency of consumption

- Additional opportunities to use the brand in the same way (Toothpaste)

o Tell when to replace (Tooth brush bristle colour fading)

o Gauge the level of performance

- Completely new and different ways to use the brand (Nirma)

2. Protecting Market Share

• Proactive marketing

- Responsive mktg: Finds a stated need and fills it

- Anticipative mktg: Looks ahead to needs customers may have near

future

- Creative mktg: Discovers solutions did not ask for but to which they
enthusiastically respond.

• Defensive marketing

- Position defense: Occupying the most desirable position in consumers’

minds, making the brand almost impregnable. (Nirma – Low cost)

- Flank defense: Take steps to protect weak markets or support a possible

counterattack.

- Preemptive defense: Steps taken aggressively to attack competitors here

and there keeping them guessing.
 - Counteroffensive defense: Steps taken to prevent competitors through
heavily cross-subsidising on weak products, announce an upgrade or
political action to inhibit competition.

- Mobile defense: Shifting the defense from current product to generic

need, petroleum to energy (or) shifting company focus into unrelated
industries.

- Contraction defense: Resign from weaker markets and reassign

resources to stronger markets.

3. Market Challenger Strategies

• Attack market leader

• Attack firms its own size that are not doing the job and are underfinanced

• Attack small local and regional firms

• Attack status quo in the same industry by better service

4. Market Follower Strategies

• Cloner: Company emulating leader’s products, name, and packaging with

slight variations.

• Imitator: Company copying some things from leader, but differentiates in

packaging, advtg, pricing or location.

• Adapter: Takes and improves a leader’s product and sells it in a different

market, but can become future competitor.
Market Development
Here, you are targeting new markets, or new areas of your existing market. You are trying to sell
more of the same things to different people. Here you might:

• Target different geographical markets at home or abroad. Conduct a PEST Analysis to

identify opportunities and threats in this different market.

• Use different sales channels, such as online or direct sales, if you are currently selling
through agents or intermediaries.

• Use Market Segmentation to target different groups of people, perhaps with different age,
gender or demographic profiles from your usual customers.

• Use the marketing mix to understand how to reposition your product.

Diversification
This strategy is risky: there's often little scope for using existing expertise or for achieving
economies of scale, because you are trying to sell completely different products or services to
different customers.

Beyond the opportunity to expand your business, the main advantage of diversification is that,
should one business suffer from adverse circumstances, another may not be affected.
Market Penetration
With this approach, you're trying to sell more of the same things to the same market. Here you
might:
• Develop a new marketing strategy to encourage more people to choose your product, or
to use more of it.
• Introduce a loyalty scheme.
• Launch price or other special offer promotions.
• Increase your sales force's activities.
• Use the Boston Matrix to decide which products warrant further investment, and which
should be disregarded.
• Buy a competitor company (particularly in mature markets).

Product Development
Selling different products to the same people, so you might:
• Extend your product by producing different variants, or repackage existing products.
• Develop related products or services.
• In a service industry, shorten your time to market, or improve customer service or
quality.
 Market size and Market share analysis
1. Potential Market
• Consumers have interest – Constraints of income and market access
• Product is relevant to them – Unaware of availability due to poor marketing

2. Available Market: Consumers have interest, income and market access to a particular
product.

3. Target Market: Part of available market pursued by the company.

4. Market Demand: Total volume bought by particular

• customer group
• in time period
• in marketing environment
• under marketing program.

• Market Demand depends on:

o External marketing conditions facing the firm
o Marketing investments made by the firm

Market Demand Calculation: Is the product of the number of buyers purchasing, the amount
of units they purchase in a year, and the average retail price they pay for a unit.

(No of buyers in the market)*(Annual qty purchased by ave buyer)*(Ave price paid for unit)

Market forecast: Market demand corresponding to a certain level of marketing expenditure.

5. In case of competition from substitutes:

Market demand includes demand for all products in the category.
• Primary demand: Total volume demanded by customers for a product category
• Secondary demand: Total volume demanded by customers for a specific brand /
product

Marketing expenditures will increase market demand.

• Market minimum can be achieved without any marketing spending.
• After attaining marketing potential, further marketing expenditure will not increase.

Larger the distance between market potential and market minimum, demand will become
sensitive to marketing expenditures.
1. Product Demand will depend on:
• Our level of marketing expenditures versus our competitors spending levels
• Effectiveness and efficiency of our marketing expenditures versus our competitors

2. Unit share & Dollar share

Unit share: Measures percentage of the unit market demand that a firm has captured
Dollar share: Measures percentage of the dollar market demand that a firm has captured
Higher share in units need not translate into higher dollar share

3. Market Penetration Index

It measures percentage of consumers in the potential market who are currently purchasing
a product in the category.

Formula = (Market demand) / (No of consumers in potential market)

• Low market penetration indicates room for growing primary demand

• High market penetration indicated NO room for growing primary demand

4. Product / Brand Penetration Index

It measures percentage of consumers in the particular target market who are purchasing a
product or brand.

Formula = (Product demand) / (No of consumers in target market)

• Low product penetration indices indicate opportunity to grow product / brand demand
within target market.

• High product penetration indices indicate NO opportunity to grow product / brand

demand within target market.
Basis of Segmentation
Demographic Firmographic Psychographic Behavioral
(B2C) (B2B) (B2B/B2C) (B2B/B2C)
Definition Classification based on Classification based on Classification based on Classification based on behaviors
individual attributes company or organization attitudes, aspirations, values, like product usage, technology
attributes and other criteria laggards, etc.
Examples Geography Gender Industry Location Lifestyle Personality Traits Usage Rate Benefit Types
Education Level Income Number of Employees Values Opinions Occasion Purchase Decision
Level Revenue
Decision You are a smaller You are a smaller You want to target customers You want to target customers
Criteria business or you are business or you are based on values or lifestyle based on purchase behaviors
running your first project running your first project

Geographic segmentation creates different target customer groups based on geographical boundaries.
Demographic segmentation sorts a market by demographic elements such as age, education, income, family size,
race, gender, occupation, nationality, and more.
Firmographic segmentation would take into consideration things like company size, number of employees and
would illustrate how addressing a small business would differ from addressing an enterprise corporation.
Behavioral segmentation divides markets by behaviors and decision-making patterns such as purchase,
consumption, lifestyle, and usage.
Psychographic segmentation takes into account the psychological aspects of consumer behavior by dividing
markets according to lifestyle, personality traits, values, opinions, and interests of consumers.
Segment should be: Measurable, Accessible, Substantial, and Actionable
FACTORS INFLUENCING CONSUMER BEHAVIOR

Psychological factors: Motivation, Perception, Learning, Attitudes and Beliefs

Social factors: Family, reference groups, roles and status

Cultural factors: Culture, sub-culture, social class

Personal factors: Age, income, occupation and lifestyle

Economic factors: Personal & Family Income, Income Expectations, Consumer Credit, Liquid
Assets and Savings

EXPECTANCY-VALUE MODEL
Consumers evaluate products and services by combining their brand beliefs both positive and
negative according to their importance.

If a person is interested in buying a laptop with importance of 4 attributes e.g.

- Memory capacity
- Graphics capacity
- Size and weight
- Price

If there are 4 laptops in the market, then we need to know ratings of 4 brands on the
attributes.

Laptop brand Attributes

Memory Graphics Size and Price
capacity capacity weight
A 8 9 6 9
B 7 7 7 7
C 10 4 3 2
D 5 3 8 5

If the person is interested in a particular attribute among the 4 given options, then choice is
easy.
- Memory capacity : C
- Graphics capacity : A
- Size and weight : D
- Price : A

Complication sets in when the person is giving weightages to all 4 attributes and based on
that taking decision.

Here we need to know the weightages given by the person to predict which will be preferred
brand.
Weightages
- Memory capacity : 40%
- Graphics capacity : 30%
- Size and weight : 20%
- Price : 10%

Preferences
• Laptop A = 8(0.4)+ 9(0.3)+ 6(0.2)+ 9(0.1) = 8 Choice made
• Laptop B = 7(0.4)+ 7(0.3)+ 7(0.2)+ 7(0.1) = 7
• Laptop C = 10(0.4)+ 4(0.3)+ 3(0.2)+ 2(0.1) = 6
• Laptop D = 5(0.4)+ 3(0.3)+ 8(0.2)+ 5(0.1) = 5

If consumers are forming their preferences this way, then others cannot sell their products.

The strategies they need to overcome the challenge by Laptop A

• Real repositioning: This can be done by redesigning the laptop

• Psychological repositioning: Alter beliefs about the own brand

• Competitive depositioning: Alter beliefs of customers about competitors’ brands

when they mistakenly believe those brands to be of higher quality.

• Alter importance of weights: Persuade buyers to give importance to those attributes in

which your brand excels.

• Call attention to neglected attributes: e.g. styling, processing speed which is not
considered by customers as of now.

• Shift the buyer’s ideals: Persuade buyers to change their ideal levels for one or more
attributes.

NON COMPENSATORY MODELS

Evaluating attributes in isolation makes the decision easy, but may change the choice if
deliberated in detail.

Consumers take mental short cuts or heuristics or rules of thumb in their decision process.

• Conjunctive heuristic: Minimum cut-off is set for all attributes and one meeting
minimum in all is selected.
o E.g. person decides all attributes to be minimum 5, then Choice is Laptop B

• Lexicographic heuristic: Consumer chooses best brand based on its perceived most
important attribute.
o Best in memory capacity, choice is Laptop C
 Industrial Buyer Behaviour

The Buying Center

- Initiator
- Users
- Influencers: Define specifications & give info for evaluation
- Deciders: People who decide on product requirements / suppliers
- Approvers: Authorise proposed actions of deciders
- Buyers: Select supplier and arrange purchase terms
- Gate keepers: Prevent sellers or info from reaching buying center

Economic Factors
- Invest in dependable sourcing systems
- Return on investment on plant and equipment
- Impact of spare parts on the cost of production
- Cost of material – final price of product – satisfactory gross margin
- Inconsistent quality of raw materials (not quantifiable)
- Interruptions in delivery schedules (not quantifiable)
- Avoidance of manufacturing risk is important – so rely on supplier reputation
- Supplier’s technical contribution – may help in cost reductions

Behavioural Aspects
- Routine purchases handled by single person
- Capital equipment decisions are taken by a group of people from different
depts..
- Marketing manager involves when:
• Design
• Inputs
• Packing / Branding issues arise
- Decision making is affected by goals, ambitions, preference, and interpersonal
relations.

- Personal needs of manager: Recognition; Advancement & Social needs

- Source effect: Selling organisation’s reputation
 - Sales message: Quality of message delivery and technical & personal
competence of salesmen

- PPT effect: Technically trained engineer (manager) rely on company reputation

• But in high risk decisions it is opposite

- Role of decision maker: Concerned with performance i.e. saving money

- Relative degree of risk: Extent of personal or organisational risk

- Purchase managers may be guided by policies and periodic audits

Purchasing Measurements
- Quality of job imp over numbers
- Line stoppages are perceived as failure of purchase functions
- Buying price is taken into account when its reflected in final price of product
- Buying price is not important
• Indirect cost
• Part of overall budget
• Product failure costs are high
- Ability to maintain good relations with suppliers and internal groups
- Procurement manager brining new and good vendors is considered
- Procurement Audit
• Conflict of interest
• Assurance of competition
• Documentation
• Conformance to corporate policy: How money is spent?
• Conformance to admin procedure: Following established procedures

Influence of Functional Roles in Buying Decision Making

Role of managers differs based on department & product purchased / stage of
purchase.

Engineering Influence
- Involved in purchase of capital equipment
- Rely on supplier reputation, past performance, product quality & tech service
 - Delivery is a major factor considered
- They are not price buyers

Manufacturing Influence
- Get involved in purchase of parts and materials
- Which supplier is retained and what quantities are ordered is determined
- Production schedules also influences the purchase
- Make or buy decisions are also influenced
- Try preserve supplier relations
- Avoid unfavourable vendor costs

Marketing Influence
- When marketability of product or service gets affected

General Management Influence

- If strategy or policy gets influenced
- Relations with strategic suppliers
- Maintenance of stable workforce
- Policies and procedures for procurement

Procurement Department Influence

- When inputs and vendors are stabilised
- When vendor management becomes important
- Procurement expertise is critical to deal with supply environment
- Purchasing dept should have technical competence and credibility
- Purchasing dept has complete info on supplier industry, others don’t
- It gains prominence in org, if other areas don’t show interest

Ego Factor
- Personal attention is critical factor in purchase decisions
CHANGING BUYER BEHAVIOUR
- Can source information when, how and where they want
• Spending more time researching about different suppliers (20hrs a
week)
- Prefer to conduct own research on own terms
• Self-diagnosis is the order of the day: Problem & solution identified
- The buyer is in control: They can join in any step & leave when they want
Explore Research Evaluate Engage Purchase Use Share

- How has the landscape changed

What used to be What is now
Salesman in control Buyers & influencers in control
Marketing push Buyer pull – anytime, anywhere
One to many conversations Multiple one to one conversations
Find & interrupt buyer (Less 10%) Educated buyer finds you
Solve problems Manage relationships

- How can you connect with buyers and keep them engaged?
- Prepare and keep updating the database of clients i.e. buyer persona (Roles
play)
- Map content to buyer journey
Explore Research Evaluate Engage Purchase Use Share
e-books Editorials Webinar Case RoI Cal Expert Testimonial
study Guides
White Analyst Compare Free trails Social
papers reports Product network
e-guide Guides

- Treat attention of prospects as an asset, not a resource to be strip mined

- Keep working with the buyer and continue to engage them till they convert
 Marketing Analysis Toolkit – Situation Analysis

5C Analysis
Customers, Context, Company, Collaborators / Complementors, and Competitors

CUSTOMERS

Need Analysis: Understanding utilitarian, symbolic, emotional, and social

Decision making process

• Problem recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Post purchase evaluation

CONTEXT
The circumstances that form the setting for an event, statement, or idea, and in terms
of which it can be fully understood.
• Demographic env: Age, Generational Cohort, Family Structure, Race,
Ethnicity, Social Class, Education Levels, Gender, Geographical Location etc.

• Economic env: Economy is strong or weak, Unemployment, Inflation, Debt

levels, consumer confidence, Income dispersion, Purchasing power of different
segments / cohorts of consumers etc.

• Socio-cultural env: Prevailing worldview, social and political ideologies;

Value systems, rituals, and traditions; Tastes, preferences; Fads and trends;
Ideas and practices; Cultures and sub-cultures etc.

• Political / Legal env: Common practices in the industry (legal); Laws and
political practices; Laws governing industry and how they change from place to
place; Presence and activity levels of consumer and advocacy organisations;
Changes on the horizon due to political powers etc.

• Technological env: Tech influence on consumer purchases, needs, desires,

habits, decision making, media habits, and live their lives; Future potential etc.

• Natural env: How important is nature for consumers; How dependent is the
product on nature; What effect it will have on the nature; How consumers see
the company with respect to effect on nature; What consumers expect from the
company.
COMPANY
Analysing company business model and competitive strategy (advantage)
• Business model elements
1. Customer segments: Defines different groups of people or organisations an
enterprise aims to reach or serve.

2. Value proposition: Bundle of products and services that create value for a specific
customer segment.

3. Channels: How a company communicates with and reaches its customer segments
to deliver a value proposition.

4. Customer relationships: Types of relationships a company establishes with

specific customer segments.

5. Revenue streams: It represents cash a company generates from each customer

segment.

6. Key resources: Most important assets required to make a business model work.
These include physical, financial, intellectual / human.

7. Key activities: Most important things a company must do to make its business
model work. They include Production, Problem solving

8. Key partnerships: The network of suppliers and partners that make the business
model work.

9. Cost structure: Describes the most important costs incurred while operating under
a particular business model.

• Competitive advantage: What can company do that is of value to customers and

which cannot be matched by competition?

COLLABORATORS / COMPLEMENTERS

Collaborators: Those who help company in marketing the product, e.g. suppliers,
distributors, retailers, influencers.

Complementers: Companies which sell products which can work with 1st Co.’s
product.

COMPETITOR
Analyse the business model, competitive strategy, competitive advantage, and
marketing strategies of all those companies which sell similar product to customers or
alternative solutions.
SOCIETAL MARKETING
Social marketing is marketing designed to create social change, not to directly benefit a brand.

Using traditional marketing techniques, it raises awareness of a given problem or cause.

Instead of selling a product, SM “sells” a behavior or lifestyle that benefits society, in order to
create the desired change.

Purpose
• Satisfy needs and requirements of customers before making any profit.
• Emphasis on company to fulfill social responsibilities for the sustainable future.
• Marketing strategy should include customers and society.

Aim
• Present a good image Co., increase sales while focusing on the social responsibilities.
• To convince an audience to change their behaviors.

Driven by Philosophy

Human Welfare
- Goodness and wellness of the society.
- Marketing decisions and actions shouldn’t jeopardize peace of society.

Consumer Needs
- Produce what is good or customers and society.
- What consumers want and what is good for them can be different.
- Discretion should be maintained.

Profit / Company
- If above condition is met, then long-term relations with customers and profits.

Objectives
- Changing behaviour, attitude, beliefs, and expectations of people so that they care about
environment.

- To achieve the above Social marketers should change marketing mix: Product, Price,
Place, and Promotion.

- Spread awareness about environment in which companies are operating their businesses.
- Effective messages to influence people & businesses to take responsibility of
environment.
Instruments of social marketing
Philip Kotler identified four categories of products related to short term and long term benefits.

- Deficient products: It brings neither short term nor long term benefits to consumers.

- Pleasing products: It brings instant satisfaction to customers but it can also harm society
in the long run.

- Salutary products: It doesn’t bring satisfaction to consumers or bring very low

satisfaction but benefits society in the long run.

- Desirable products: Besides bringing long-term benefits it also brings immediate

satisfaction to customers.

Three Considerations of Societal Marketing

Importance of Social Marketing
• Business and environment of the society are interdependent.

• Society provides land, resources, and necessities to business.

• Therefore, they should adopt social-oriented marketing strategies not simply business-
oriented marketing strategies.

Advantages
- Sends a message that company cares about the environment.
- Eco-friendliness can become competitive edge. Helps improve customer retention.
- Customer retention helps increase sales
- Increased sales help company to expand
- Helps properly use economic resources of company
- Better usage of resources helps in improved standard of living

Disadvantage
- The profit and social responsibility goals do not go along. So companies do not adopt it.

WHAT IS NOT SOCIAL MARKETING?

Social Media Marketing

- It is not marketing on social networks like Facebook, Twitter, Instagram, and YouTube.

- Social media can be used to generate & spread buzz for social marketing campaigns.

- Most marketing on social media is oriented towards promoting a product or service.

Self-Serving Donations
- It is not publicity by a company about its donation for charity or cause as it is for
boosting their own reputation.

Marketing “green” or “charity tie-in” products

- It is not marketing of eco-friendly water bottles, hybrid cars, reusable lunch containers
and other green products.

- The marketing of products with a charitable donation tie-in does not count either.

- In both e.g. focus is on selling a product, while social marketing focuses on behaviour
change for public good.
SOCIAL MARKETING 4P’S

Product
- It is the desired social action and the benefits this action offers.
- Make sure that this change is presented as enticingly as possible.
- It may include framing the opposite behavior as negative. Clarity is key.
- Make sure audience can quickly and easily understand product & its benefits.

Price
- Minimize the “price” consumers believe they have to “pay” for desired social action.

- Price isn’t all monetary, it’s about minimizing difficulty, time, & psychological
/emotional costs that people will incur.

- While designing campaign, think about the obstacles hindering audience from performing
the behavior.

- Then, figure out intuitive, feasible ways to fight these obstacles.

- For example, if your campaign is aimed at encouraging more exercise in your

community, but safe outdoor spaces are minimal and indoor class costs are a barrier,
consider offering free indoor fitness classes.

Place
- Where do you want your audience to perform the desired behavior?

- How can you reach them in ways that make it easier to perform behavior in that location?

- Do you need to recruit peers of your audience as “ambassadors,” to make the campaign
more accessible to your audience?

- E.g. While setting up a helpline for teens, make it available 24 hours a day, via call, text,
and online messaging.

Promotion: This one ties all 4 “Ps” together.

- Channels and outlets that help best reach audience and draw their attention to the social
marketing campaign?

o Social media? Television? Radio? A sign, billboard, or installation? Events, such

as concerts, expos, and community days?

• How will you draw attention to the product (behavior), the minimized price, and the place
you want the action performed in?
References
What is Social Marketing? (With 7 Stellar Examples)
https://www.business2community.com/digital-marketing/what-is-social-marketing-with-7-
stellar-examples-02236451

What is Societal Marketing Concept?

https://www.marketingtutor.net/what-is-societal-marketing-concept/

Societal Marketing Concept Definition, Advantages, Examples, Importance

https://startupstrings.com/societal-marketing/
Niche marketing
It is an advertising strategy that focuses on a unique target market.

This strategy focuses exclusively on one group—a niche market—or demographic of

potential customers who would most benefit from the offerings.

Identify what a customer wants and tries to deliver a better solution to a problem which was not
presented by other firms.

A niche market does not mean a small market, but it involves specific target audience with a
specialized offering.

By doing so, the company becomes a market leader and it becomes possible for other firms to
enter that particular segment.

A niche market could stand apart from others because of:

• Geographic area
• Lifestyle
• Occasion
• Profession
• Style
• Culture
• Activity or habits
• Behavior
• Demographic
• Need
• Feature reduction or addition

Lefty’s: The Lefthand Store

• Identifying an underserved community in a large market is a smart way to approach
niche marketing.

• Lefty’s: The Left Hand Store found a widely underserved community of people –
those who favor their left hand instead of their right hand.

• Because 90% of the population uses its right hand, left-handers have widely had to
adjust to using products designed for “righties.” Lefty’s saw this as an opportunity.

• They created a store that sells products designed exclusively for the other 10% and
found success reaching this smaller, often ignored audience.

Benefits
• There is no or little competition under that segment so company enjoys price monopoly.
• Strong relation between company and brand which is key to customer loyalty.
• Niche businesses are often high margin business as such products or services are not
available.
EVALUATE NICHE MARKET IDEA

• Build your audience first

- Kickstarter campaigns to generate buzz about products before they’re even
developed.

- Gain followers via email opt-in pages, social media campaigns, and other online
tactics.

• Test before you invest

- Start with a small batch of products and run a campaign to your targeted audience.

- Solicit feedback from early customers and influencers.

- Early on feedback will perfect new product.

• Dig deeper into your niche

- You already did the keyword research to identify your niche market, but you can
go even more in-depth.

- Analyze blogs, social media, influencers, and other key areas in your niche to gain
insights.

- Can you solve a problem that repeatedly comes up?

• Research consumer trends in your market

- It’s important to be up-to-date with what’s happening in your chosen niche.

- Resources like Facebook IQ, Think with Google, and Nielsen consumer research
will help you understand consumer pain points, desires, and breakout trends.

- Set up Google Alerts for related keywords and regularly monitor social media
conversations to stay on top of what’s trending.

Here’s how you handle niche marketing

https://blog.alexa.com/niche-marketing/

Definition of niche marketing

https://economictimes.indiatimes.com/definition/niche-marketing

Finding Your Niche: 8 Niche Market Examples to Inspire You

https://www.shopify.in/blog/niche-markets
GUERRILLA MARKETING
Guerrilla marketing is the creating use of novel or unconventional methods in order to boost
sales or attract interest in a brand or business.

These methods are often low- or no-cost and involve the widespread use of more personal
interactions or through viral social media messaging.

It increased in popularity with the rise of ubiquitous mobile and connected technologies that can
amplify messaging and focus on target groups of consumers.

Guerrilla marketing takes place in public places that offer as big an audience as possible, such as
streets, concerts, public parks, sporting events, festivals, beaches, and shopping centers.

One key element of guerrilla marketing is choosing the right time and place to conduct a
campaign so as to avoid potential legal issues.

Guerrilla marketing can be indoor, outdoor, an "event ambush," or experiential, meant to get the
public to interact with a brand.

• Outdoor Guerrilla Marketing. Adds something to preexisting urban environments, like

putting something removable onto a statue, or putting temporary artwork on sidewalks
and streets.

• Indoor Guerilla Marketing. Similar to outdoor guerrilla marketing, only it takes place
in indoor locations like train stations, shops, and university campus buildings.

• Event Ambush Guerilla Marketing. Leveraging the audience of an in-progress event --

like a concert or a sporting game -- to promote a product or service in a noticeable way,
usually without permission from the event sponsors.

• Experiential Guerilla Marketing. All of the above but executed in a way that
requires the public to interact with the brand.

Budget-Friendly
It is its fairly low-cost nature. The real investment here is a creative, intellectual one -- its
implementation, however, does not have to be expensive.

- Originally the concept was aimed towards small businesses with a small budget, but this
did not stop big businesses from adopting the same ideology.

- Larger companies have been using unconventional marketing to complement their

advertising campaigns.

- Some argue that when big businesses use guerrilla marketing tactics, its not true guerrilla.
Bigger companies have much larger budgets and there are well established. Sometimes
the guerrilla tactics can flop and create a public relations nightmare.
Principles of Guerrilla Marketing
- measure success by profits, not sales
- instead of prioritizing new customers, prioritize increasing number and size of
transactions from existing customers, and gaining referrals
- aim messages at small groups instead of mass audiences
- focus on gaining the consent of the consumer to send them more information
- commit to a campaign, pursuing effective frequency, instead of creating a new message
each time

Examples of Guerrilla Marketing

• Unicef - Unicef placed a vending machine in Manhattan that sold dirty water for a dollar.
“Flavors” included Malaria, Cholera, Typhoid, and Dysentery.

• Volkswagen - Volkswagen hung a series of cartoon thought bubbles over all the spaces
in a parking structure in Dubai, so that parked cars appeared to be thinking, “I wish I was
a Volkswagen.” As people pulled into the car park, they were welcomed by a boundary
wall reading, “Have you ever wondered what your car is dreaming of?”

• Coca-Cola - To advertise its new “grip” bottle, Coca-Cola placed a static-charged ad at a

bus stop, which would grip people’s clothing if they stood too near.

• Jeep - To advertise the versatility of the Jeep, and to make the brand more part of the
urban environment, the company drew parking spaces in unlikely locations, such as
across plaza stairs or through planters and curbs.

Guerrilla Marketing
https://www.investopedia.com/terms/g/guerrilla-marketing.asp

What Is Guerrilla Marketing? 7 Examples to Inspire Your Brand

https://blog.hubspot.com/marketing/guerilla-marketing-examples

Guerrilla Marketing
https://www.marketing-schools.org/types-of-marketing/guerrilla-marketing.html
 Marketing Research

AMA Definition:
• It is the function that links the consumer, customer and public to the marketer
through information
o Information used to identify and define marketing opportunities & problems
o Generate, refine, and evaluate marketing actions
o Monitor marketing performance and
o Improve understanding of marketing as a process

• It specifies the information required to address these issues,

o Designs the method of collecting information
o Manage and implements the data collection process
o Analyses the results and
o Communicates the findings and their implications

Function of Marketing Research

• To provide information that will assist marketing managers in recognizing and

reacting to marketing opportunities and problem

• MR provides information for choosing an appropriate strategy.

When to do Marketing Research

• An information gap can be filled by doing research.

• Cost of MR < Cost of taking wrong decisions

• Time taken for research

Types of problems
• Management Decision Problem(MDP): A statement specifying the type of
managerial action required to solve the problem.

• Marketing Research Problem(MRP): A statement specifying the type of

information needed by the decision maker to help solve the management
decision problem and how the information can be obtained efficiently and
effectively.
• Marketing Research Objective(MRO): A goal statement, defining the specific
information needed to solve the marketing research problem.
I. MARKETING RESEARCH PROCESS

Step 1: Define research problem, research objectives, Research questions /

hypotheses

Step 2: Develop the research plan

• Data sources
o Primary data: Data freshly gathered for a specific purpose or project.
o Secondary data: Data collected for another purpose and already exist
somewhere.

• Research approaches
o Observation
o Ethnography
o Focus group
o In-depth interview
o Survey
o Experimental research: Captures cause & effect relationships by eliminating
competing explanations of the findings.

• Research instruments
o Observation: Environment, program implementation, informal interactions,
non-verbal communication, unobtrusive indicators, and what did not happen?

o Ethnography: Study of socio-cultural contexts, processes, & meanings within

cultural systems. It involves
- Multiple methods
- Sustained contact
- Culture of respondents
- Watch, listen, & ask

o Focus group: Individual and group level data is gathered and analysed.

o In-depth interview: Data can be collected using structured, unstructured or

semi-structured interview questionnaire.
 o Survey: A questionnaire survey can be carried out with the specifically selected
respondents or randomly selected respondents from the population (suitable for
research topic).
- Avoid bias
- Use simple & specific Qs
- Avoid jargon and use words used by respondents
- Avoid Qs with negative
- Avoid hypothetical Qs
- Avoid words which can be misheard, e.g. sects
- Use some fixed & non-overlapping responses
- Keep “others” option

• Sampling plan
o Sampling unit: Whom should we survey?
o Sample size: How many people should we survey?
o Sampling procedure: Probability [or] Non-probability sampling

• Contact methods
o Mail survey / Telephone
o Personal / Online

Step 3: Collect the information

Step 4: Analyse the information

Step 5: Present the findings

II. MEASURING MARKETING PRODUCTIVITY

Following are the seven characteristics of marketing research
o Scientific method
o Research creativity
o Multiple methods
o Interdependence of models and data
o Value and cost of information
o Healthy scepticism
o Ethical marketing
Social marketing concept
According to Kotler and al. (2005) “The societal [social] marketing concept holds that
the organisation’s task is to determine the needs, wants, and interests of target markets
and to deliver the desired satisfactions more effectively and efficiently than
competitors, in a way that preserves or enhances the consumer’s and the society’s
well-being.” Ethical and social considerations are built in marketing concept in a way
that penetrates consumer’s attention and motivates them to make the change.

The social marketing that is practised in the cases could be characterised as cause-
related marketing. This means that the general purpose of these programmes is to
deliver mutual benefit and well-being for both consumers and the partners of the
programme (in publicly financed programmes the society). In cause-related marketing
it must be taken into account that some consumers look for signs of good corporate
citizenship. This applies to such programmes in which both social marketing and
product sales are combined. In other words, consumers when making purchase
decisions regarding for example, energy saving domestic appliances, may have
expectations for companies’ public interest to environmental issues and not only for
profits.

In social and cause-related marketing it is also a question about companies’ reputation

as a good corporate citizenship. This sets criteria for planning of the whole project.
Several examples of companies implementing or participating energy-related
behavioural change programmes were presented among the case studies. However,
over half of the programmes were implemented by national or regional organisations
concentrating mainly on promoting energy efficiency and/or renewables. It may be
possible that these organisations are considered more neutral by the consumers.
Positioning
 Positioning

• Identify a set of differentiating competitive advantages

• Identify the key competitive advantages on which the brand position can be built
• Choose the right competitive advantage
• Evaluate identified differentiating factors to choose appropriate ones
• Select an overall positioning strategy
Select the most appropriate strategy to differentiate and position the brand

Point of Difference Point of Parity

Attributes or benefits consumers strongly associate with a
brand, positively evaluate, and believe they could not find to
the same extent with a competitive brand
Desirable | Deliverable | Differentiable
Associations that are not necessarily unique to the brand but
may be shared with other brands
Category PoP → Essential in pdt category
Correlational PoP → Negatives based on positives!
Competitive PoP → Parity based on competitors PoD
Identify a set of differentiating factors

• Product Differentiation • Important

• Service Differentiation • Distinctive

• Superior
• Channel Differentiation
• Communicable
• People Differentiation
• Pre-emptive
• Image Differentiation
• Affordable

• Profitable
Select an overall positioning strategy

• Positioning by Attribute

• Positioning by Price/Quality

• Positioning w.r.t. Use/Application

• Positioning by the Product User

• Positioning w.r.t. Product Class

• Positioning w.r.t. Competitor