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Market Strategy
Product, Price, Distribution, Promotion, Service
Market Segmentation
Identify product-related need sets
Group customers with similar need sets
Describe each group
Select attractive segment(s) to target
Market Analysis
Company, Competitors, Conditions, Consumers
The above figure indicates, an understanding of consumer
behavior is the basis for marketing strategy formulation.
But at the same time, the smaller the segment, the more it costs
to serve the segment.
Ex:- Thus, a tailor-made suit costs more than a mass-produced
suit.
The first task of the firm is to identify need sets that the
organization is capable, or could become capable, of meeting.
The term need set is used to reflect the fact that most products in
developed economies satisfy more than one need.
Ex:- An automobile can meet more needs than just basic
transportation.
Some customers purchase cars to meet transportation and status
needs. Others purchase them to meet transportation & fun needs.
Still others purchase to meet status, fun and transportation needs.
Accordingly the automobile companies use to target their
products.
Ex:- Scorpio, Volvo, Safari etc.
Similarly, the market for detergent powders has always been
competitive, but it has been dominated by large multinational
players with major national presence, strong brands with large
sales, and small local players with limited presence and low
brand strength.
Economists often assume that lower prices for the same product
will result in more sales than higher prices. But this is not
always correct, as price sometimes serves as a signal of quality.
i.e. it may seek to have the audience learn something about the
product, seek more information about the product, like the
product, recommend the product to others, feel good about
having bought the product, or a host of other communications
effects.
iii. What message will achieve the desired effect on our
audience?:- What words, pictures, and symbols should we use to
capture attention and produce the desired effect?
iv. What means and media should we use to reach the target
audience?:- Should we use personal sales to provide
information?
Market Strategy
Product, Price, Distribution, Promotion, Service
Market Segmentation
Identify product-related need sets
Group customers with similar need sets
Describe each group
Select attractive segment(s) to target
Market Analysis
Company, Competitors, Conditions, Consumers
The outcomes of the firm’s marketing strategy are determined by
its interaction with the consumer decision process.
The firm can succeed only if consumers see a need that its
product can solve, become aware of the product and its
capabilities, decide that it is the best available solution,
proceed to buy it, and become satisfied with the results of the
purchase.
Outcomes:-
A. Firm Outcomes:-
i. Product Position:- The most basic outcome for a firm of a
marketing strategy is its product position – ‘An image of the
Product or Brand in the consumer’s mind relative to the
competing Products and Brands.
This image consists of a set of beliefs, pictorial representations,
and feelings about the product or brand.
It is determined by communications about the brand from the
firm and other sources, as well as by direct experience with it.
Most marketing firms specify the product position they want
their brands to have and measure these positions on an
ongoing basis, because a brand whose position matches the
desired position of a target market is likely to be purchased
when a need for that product arises.
Ex:- Sauza Commemorative tequila attempts to build a product
position as a smooth, lighthearted Tequila by running a series of
humorous ads all with the tag line ‘Life is harsh. Your Tequila
shouldn’t be’. This positioning has helped the brand’s sales grow at
more than twice the industry average.
ii. Sales:- Sales are a critical outcome, as they produce the revenue
necessary for the firm to continue in the business.
Our Total
Product
Consumer Superior Perceived
Customer
Decision Value Sales Value
Satisfaction
Process Expected Delivered
Competitors’
Total
Products
Fig:- Creating Satisfied customers
Though, these two processes are closely related and are often
identical, at times they differ.
Ex:- People might take a food supplement because they believe it
is enhancing their health while in reality it could have no direct
health effects or even negative effects.
C. Society Outcomes:-
i. Economic Outcomes:- The cumulative impact of consumers’
purchase decisions, including the decision to forgo
consumption, is a major determinant of the state of a given
country’s economy.
Our view of ourselves and the way we try to live are determined
by internal factors (such as our personality, values, emotions, and
memory) and external factors (such as our culture, age, friends,
family, and subculture).
Our decision, and even the process of making it, will cause
learning and may affect many other internal and external
factors that will change or reinforce our current self–concept
and lifestyle.