Professional Documents
Culture Documents
2 Market 1 C
2 Market 1 C
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Kotler says that it is still possible to find niches to be filled by imaginative entrepreneurs, e.g., Starbuck Need to spot these niches and fill them in a way that others cannot duplicate
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Segmentation
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Mass Marketing
Far from dead Coke, McDonald Today, mass marketers need to be discerning on the channels for communications However, tendency towards segmentation
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How to Segment?
Demographic, Geodemographic (add geography to demographic) Later, Behavioral (classification according to readiness to buy, motivation, attitude), psychographic (according to lifestyle characteristics) Today, loyalty segmentation (attention to longer staying and profitable customers) Internet facilitates segmentation (these days, web sites dedicated to babies, senior citizens, Hispanics, etc)
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Targeting
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Narrowcasting
Marketers must move away from broadcasting to narrowcasting People no longer interested in messages received thru TV/radio (unless ad is in an area of interest) Need to define target customers and their media habits; messages then put in focused media
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Positioning
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Effective marketing
Effective marketing begins with research into local marketplace to find segments not satisfied with current offerings Company then decides to target segments in which it can provide superior offerings Positioning, next step companies communicate its offer to target market segments Company cannot position before segmentation & targeting E.g., Volvo realised attractive segment for safe cars. Volvo adopted the safest car positioning.
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Differentiation
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Innovation
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Innovation is
Not just about better and newer products, but includes developing better systems and business models/products Companies with good marketing and good innovation: Sony, 3M, Pfizer IKEA, South West Airlines, Virgin, Home Depot, Barnes & Noble invented new ways to run old businesses
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More
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Marketing Research
Online marketing offers opportunities To learn about customers, markets, segments, competitors, distribution channels & trends
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Part 2
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More on 4Ps
4Ps
4Cs
Product Customer value Price Customer costs Place Customer convenience Promotion Customer communication (not promotion!)
Kotler suggests adding 2 more Ps (part of megamarketing tools): Politics & Public Opinion (receptive govt & people) Kotler: advertising overdone, while PR is underdone; direct marketing tools are also rising in importance
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Product
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Branding
Strong brands will be major defence against price competition Strong brands create trust and image of better quality customers willing to pay more Concentrate on brand performance not image (image is ceasing to have power) Successful brands of tomorrow: niche brands brands that deliver unique value (in terms of 4Ps) to a focused segment Think in terms of brand asset management brands of their own PLC. Need for rejuvenation The Internet will still allow branding, but price will also become sensitive
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Price
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Price
Before hypercompetition, globalisation and the internet, superior brands could charge 2020-50% more. Today, more likely 10-20% 10Today, buyers propose what they pay airline tickets, hotels, etc) Internet likely to drive down prices
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Price
ShortShort-term: lobby for protection but not a good solution for long term Long term: search for better ways to offer superior value
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Place
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Direct selling
Direct selling is recommended by Kotler as one of the strategies for place (say, thru e-commerce) However, this might be a problem if this is carried out together with a distributor he might resent this This problem can be dealt with by brickbrickandand-click companies
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Promotion
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Possibilities instead of TV
Sponsorships (names on stadiums, whole teams and on individual athletes) Mentions on talk shows Product placement Street level promotion: actors walking in street and asking passerspassers-by to take photos with them on mobile phone Celebrity endorsement Body advertising (college kids agreed to put Dunkin doughnut logos on their forehead during match) PR and word-of-mouth playing greater role word-ofInternet? Sales promotion but don t overdo it may cheapen the brand image
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Advertising
Kotler sees 3 choices in view of today s developments vis--vis advertising: vis Advertise in a number of media channels in the same time slot Advertise on the super bowls (cricket), Olympics and major events that attract wide audience Build giant database with names of customers/potential customers that have greatest interest in company s offering
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PR
Kotler thinks more should be spent for PR More chance of getting message through More believable More likely to create buzz
Buzz marketing likely to rise in importance
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What can small stores do with competition from the likes of Walmart?
Move to specialty or superspecialty merchandising Distinguish themselves with superior customer service Intimately knowing customers well
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Stakeholder marketing
Companies have moved away from vertical integration to outsourcing Need, therefore, to maintain relationships with stakeholders (suppliers, employees, distributors, Govt, etc) to have win-win winsituation Mutual trust and selecting/motivating partnerships is key to stakeholder marketing
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Internet marketing
Need to consider (besides just having website):
Use Internet to test new products/marketing concepts using online focus groups, consumer panels Assign someone to research competitors strategies, tactics and resources on the Internet Use Internet to train/communicate with employees, dealers and suppliers Use website to recruit new employees Distribute coupons and samples using website Monitor chat-room converstions chatTotal 47 slides 45
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