Session 1 Introduction Marketing Concepts Marketing Environment Market Segmentation Dr.

Yansong Hu
+(0) 24 7652 3915 Yansong.hu@wbs.ac.uk
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Assessment
Multiple choice Closed book Two hours Sixty questions in total, 15 for each of the 4 subjects Exact time and place of the exam will be announced later

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Administrative Details
Office Hours: normally 2-5pm Wednesday Or contacting me at
+44 (0) 24 7652 3915 (24 hours) Yansong.hu@wbs.ac.uk (24 hours a day 7 days a week) Room C2.04 (Dr. Yansong Hu) Use the my.wbs platform!
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MARKETING ANALYSIS Environment Consumers Buying Behaviour Session 2 Session 3 MARKETING MIX Communications, Product, Channels, Price

Session 1 Session 2

SEGMENTATION MARKET SEGMENTATION Session 1

CUSTOMER-CENTRIC

MARKETING MANAGEMENT PROCESS

(HU,2011)

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Agenda

How Do We Understand Marketing?

Marketing Environment Market Segmentation

Why? How?

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Marketing: Some Quotes

Marketing in History

In well-ordered states, storekeepers and salesmen are commonly those who are weakest in bodily strength and, therefore, of little use for any other purpose, Plato Merchants are to be accounted vulgar; for they can make no profit except by a certain amount of falsehood, Cicero Advertising ... is a meretricious endeavor in which psychological appeals to fear and shame are developed to bamboozle the public into purchasing essentially worthless packaged goods at bloated prices, Thorstein Veblen Marketers are intrepid, far-sighted adventurers: Indiana Jones and the Crystal Ball, Anonymous

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Marketing: More Quotes

A Modern View

Corporate leaders nationwide are discovering that their most powerful competitive weapon is marketing -- the development, pricing, distribution, and promotion of products, Newsweek Marketing is now central to success at any company in any business, and it is going to make the difference between winners and losers, Stephen Greyser, Harvard Business School Stop being a company with its face towards the CEO and ass towards the customer, Jack Welch, CEO, G.E.

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What is Marketing?

Marketing as a business philosophy Meeting the evolving needs and wants of consumers better than competitors to make a profit Marketing as a business function The analysis, planning, implementation and control of programmes designed to create, build and maintain beneficial exchanges with target buyers

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Scanning & Sensing: The Marketing Context

Environmental Cultural
Customers The Company Shareholders

Social

Publics

Marketing Strategy

Suppliers

Political

Competitors

Internal & Immediate Environment (Micro)

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Economic

Intermediaries

Legal

Technological

External Environment (Macro: PESTLE)

Political

The Political and Legal Context

Legal

Opportunities
GE wind turbine in EU

Threats
Japan Earthquake

Three business strategies

(1). Passive reaction (2). Positive anticipation (BT) (3). Proactive public policy shaping (Hiring lobbyists, Pressing lawsuits)
-

Disneyland and Sweden

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Economic

Economic Context: Credit Crunch

Challenge about market system Regulations

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Social

The Social and Cultural Context

Cultural

Demographic change The youth market

The grey market Changing lifestyles and living patterns

Multi-ethnic societies

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Social

The Social and Cultural Context

Actors Web in Hollywood: Kevin Bacon Game
Two

actors are connected if they have appeared in a movie together. Then any given actor in history is on average 3 movies away from Kevin Bacon!

Kevin Bacon Path from Kevin Kline to Kevin Bacon= 3 (as of 1995)
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Technological

Technological Context

Microwave Oven Disposable Diaper Birth Control Pill Home VCR Pocket Calculator Personal Computer

Fax Machine Touch-Tone Telephone Fiber-Optic Systems Photocopier Computer Disk Drive

This list was compiled in the early 1990s. Anything else you would add?
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Why Segment the Market: from Mass Marketing to Market Segments

Henry Ford: customers could buy the Model T in any color they wished as long as it was black Black Model Ts gave way to GMs strategy of market segmentation

Ford Model T

GM

Mass Marketing
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Market Segment (s)

How to Do It: STP Process

Decide Marketing Mix Segment the Market Select Target Segments Establish Segment Positioning

Group customers with similar needs & preferences

Select the most attractive segments

Ensure that customers in each segment perceive that we can satisfy their needs & preferences better than competitors

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STP: Ways to Segment a Consumer Market

Demographic
Age, gender, income, occupation, family

Geographic
Country, region, city, climate

Psychographic
Lifestyle, personality

Behavioral
Occasions, benefits, use status, usage rate

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STP: Target Market Selection Criteria

Measurability: ability to obtain information about the size, nature, and behavior of a market segment Accessibility: degree to which segments can be reached, either through targeted advertising and communication programs or multiple retail channels Substantiality: size of the marketis it large enough to be profitable?
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STP: Positioning

Positioning:
An attempt to manage how potential customers

perceive a product or service safety

Volvo positions its vehicles in terms of durability and Apple: elegant in design and user friendly Swatch

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STP: Positioning
Perceptual Mapping Example: automobiles
Cadillac Mercedes Chrysler Conservative looking/appeals to older people BMW Buick Oldsmobile Chevrolet Nissan Toyota Dodge Plymouth VW Pontiac Fun to drive/sporty looking/appeals to younger people A touch of class/a car to be proud to own Lincoln Porsche

Ford

Practical/affordable/good gas mileage

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Key Takeaways
What is Marketing Marketing as a business philosophy Marketing as a business function Marketing Environment PESTLE

STP Why? How?

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Additional Readings
Relevant chapters (i.e., marketing concepts, marketing environment, and segmentation) in Marketing : an introduction / Gary Armstrong, Philip Kotler Or Marketing management [electronic resource] / Philip Kotler ... [et al.].

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