TOPIC 8 MARKETING PLAN

What Is Marketing?
Marketing is a process by which companies create
value for customers and build strong customer
relationships to capture value from customers in
return
 Core Concepts

• Customer needs, wants, and demands

• Market offerings
• Value and satisfaction
• Exchanges and relationships
• Markets
 Customer Needs, Wants, and Demands

Needs • Physical—food, clothing, warmth, safety

• Social—belonging and affection
• Individual—knowledge and self-expression

Wants • Form that needs take as they are shaped by culture and
individual personality

Demands • Wants backed by buying power

• Market offerings are some combination of products,
services, information, or experiences offered to a
market to satisfy a need or want

• Markets are the set of actual and potential

buyers of a produc

• Marketing management is the art and science

of choosing target markets and building
profitable relationships with them
MARKETING STRATEGY
Segmentation, Targeting and Positioning
Linking Customer Needs to Marketing Action

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T A RG ET M A RKET IN G PRO C ESS

W H O T O SERVE ?
3 ST EPS (ST P):
1. Seg m entatio n
2. T arg eting
3. Po sitio ning
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 ST P
• M arke t se g m e n t at io n : dividing m arket into distinc t gro u ps
which will require separate m arketing m ixes
• T arg e t m arke t in g : c ho o sing which gro u p(s) to appeal to
• M arke t po sit io n in g : c reating a c lear, distinc tive po sitio n in
the c o nsum er’s m ind relative to c o m petitio n

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Consumer Market Segmentation

• Geographic: • Psychographic:
• Regions • Social class
• Size/density • Lifestyle
• Climate • Personality
• Demographic: • Behavioral:
• Age/generation • Occasions
• Gender • Benefits
• Family size/life-cycle • User status
• Income • Usage rate
• Occupation • Loyalty status
• Religion • Readiness state
• Ethnic origin • Attitude toward product

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 Geographic Segmentation
• Divide markets into different geographic units.

• Examples:
• World Region or Country: Middle East, South Asia or Pakistan, India etc.
• Country Region: Punjab, KPK, Sindh, etc.
• City or Metro Size: Lahore, Karachi.
• Population Density: rural, suburban, urban
• Climate: northern areas, southern, tropical

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 Demographic Segmentation
• Use Differences in:
• age, gender, family size, family life cycle, income,
occupation, education, race, and religion

• Most frequently used segmentation variable

• Ease of measurement and high availability.

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 Psychographic Segmentation

Psychographic segmentation People in the same demographic

classification
divides a market into often have very different lifestyles and
different groups based on personalities.
social class, lifestyle, or
personality characteristics.

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 Behavioral Segmentation
• Occasion
• Loyalty Status
• Special promotions &
• Nonusers, ex-users,
labels for holidays.
potential users, first-
• Special products for time users, regular
special occasions. users.

• Benefits Sought
• Different segments • Usage Rate
desire different benefits • Light, medium, heavy.
from the same products.

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 Requirements for Effective Segmentation
• To be useful, market segments must be:
• Measurable:
• Size, purchasing power, and profiles can
be measured
• Accessible:
• Segments can be reached
• Substantial:
• Large enough to be profitable
“Lefties” are hard to
identify and measure, so • Actionable:
few firms target this
segment. • Programs can be developed to attract
and serve the segments
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Target Marketing Strategies

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 Undifferentiated Marketing
(Mass Marketing)

• Appeals to a broad spectrum of people

• Efficient due to economies of scale
• Effective when most consumers have similar needs

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 D ifferentiated M arketing (Seg m ent M arketing)

• D evelo ps o ne o r m o re pro d uc ts fo r eac h o f

several c u sto m er gro ups with different pro d u c t
need s
• C o c a-C o la (C o ke, Sprite, D iet C o ke, etc .)
• Pro c ter & Gam b le (Tid e, C heer, Gain, D reft, etc .)
• T o yo ta (C am ry, C o ro lla, Prius, Sc io n, etc .)

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 C o nc entrated M arketing
(N iche M arketing)
• Entails fo c u sing effo rts o n o ffering o ne o r
m o re pro d u c ts to a sing le seg m ent
• Useful fo r sm aller firm s that do no t have the
reso urc es to serve all m arkets
• N ic hes have very spec ialized interests

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 Micro Marketing
• Local Marketing
• Individual Marketing (one-to-one Marketing)

• Segments are so precisely defined that products are offered

to exactly meet the needs of each individual
• Example: Levi’s Original Spin (custom) jeans, hair stylists

• Mass customization is a related approach in which a company

modifies a basic good to meet the needs of an individual
• Example: Proctor & Gamble’s products at Reflect.com Form Products to Be
Sold into Groups

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 Positioning
The place a product occupies in
consumers’ minds relative to competing
products.

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 Positioning Example

To (target segment and need) our (brand) is a

(concept) that (point-of-difference).

“To busy mobile professionals who need to

always be in the loop, Blackberry is a wireless
connectivity solution that allows you to stay
connected to people and resources while on
the go more easily and reliably than the
competing technologies.”

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 MARKETING OBJECTIVES
Vision

1. Description of something in the future

2. It is what the firm or a person would ultimately like to
become

Mission
1. Mission is a statement which defines the role that an
organization plays in a society.
2. Purpose or reason for the organization’s existence 25
 MARKETING OBJECTIVES
Goals

1. Goals are short term (one year or less) milestones or bench

marks that organizations must achieve in order for long term
long term objectives to be reached.
2. Goals should be measurable, quantitative, challenging,
realistic, consistent and prioritized.

Objectives

Objectives state what is to be accomplished by when and

should be quantified if possible

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 MARKETING OBJECTIVES

1. Marketing Objective is a clear statement of what the

marketer is going to accomplish in the marketplace.

2. The marketing objectives will be the guiding light

that directs the marketer to plan and implement his
activities to arrive at its targets.

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 MARKETING OBJECTIVES
Objectives must confirm to SMART criteria
E.g. “ Capture 5% of the detergent market in Colombo within the first year of
operation”
Specific – stating exactly what has to be achieved: E.g. Capture
market of Colombo for detergents
Measurable- Quantified, so that you can measure with results
achieved: E.g. 5 % of the market share
Achievable – The objective has to be realistic in the given
circumstances. Achieving target of 5% of the Colombo market
may be possible
Relevant – The objective must relate to the corporate objectives:
E.g. Be a major player in the detergent market
Time frame – Deadlines and time frames for achieving the
objectives must be stated: E.g. within the first year of operation

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