Agenda
Pop quizMarketing Analysis & Strategic Planning
Essential Elements
Discuss Shopping Insights DiaryForm teams
Marketing Strategy
Involves the allocation of resources to develop and sell products or services that consumers will perceive to provide more value than competitive goods
What is perceived value?
Foundations of Strategy
A thorough understanding of: Domestic and global market trends
Models to predict purchase and consumption
Communication methods to reach target markets most effectively
Implementationin Marketplace
Marketing Mix Product, Price, Place,
Promotion, Brand
Situation AnalysisConsumerCompany
CompetitorsCollaborators
Environmental Factors
STPSegmentation
TargetingPositioning
Implementationin Marketplace
Marketing Mix Product, Price, Place,
Promotion, Brand
Situation AnalysisConsumerCompany
CompetitorsCollaborators
Environmental Factors
STPSegmentation
TargetingPositioning
Situation Analysis
The process of analyzing: Consumer characteristics & trends Resources of the Company Current and potential Competitors Current and potential Collaborators
PEST Analysis
Market Environment
Market Environment
Economic Factors
Economic Factors
Political Factors
Political Factors
Technological
Developments
Technological
Developments
Societal Trends
Societal Trends
Situation Analysis
SWOT: Core strengths? Current weaknesses? What opportunities exist? What threats do we face?
Implementationin Marketplace
Marketing Mix Product, Price, Place,
Promotion, Brand
Situation AnalysisConsumerCompany
CompetitorsCollaborators
Environmental Factors
STPSegmentation
TargetingPositioning
Strategy
Segmentation:
Process of identifying a group of people similar in one or more ways, based on a variety of characteristics and behaviors.
Goal: minimize variance within groups and maximize variance between groups
Behavioral Segmentation:
“Heavy versus Light” Users – “80/20 rule” Heavy Half Light Half
(top 50%) (bottom 50%)
5%95%
86%
90%
87%
71%
14%
10%
13%
29%Toilet Tissue
Hair Tonic
Colas
Canned Ham
Bourbon
Heavy Users: Efficiency/profit Caution: Majority Fallacy
(20%)
(32%)
(88%)
(48%)
(95%)
Consumer Characteristics
Demographics: Age, Gender, Income, etc…
These are widely available but limited in usefulness They tell us who buys, or doesn’t buy our product, but not why Useful for identifying “prospects”
Consumer Characteristics
Geodemographics Examine regional differences in demographics Useful for store location decisions and targeting direct mailings
Why? Because “birds of a feather flock together”
Prizm by
New Beginnings: Filled with young, single adults, New Beginnings is a magnet for adults in transition. Many of its residents are twenty-something singles and couples just starting out on their career paths -or starting over after recent divorces or company transfers. Ethnically diverse -with nearly half its residents Hispanic, Asian or African-American- New Beginnings households tend to have the modest living standards typical of transient apartment dwellers.
Segment Profiles
Once a basis for segmentation has been determined, segments should be profiled by describing them on as many levels as possible.
Strategy
TargetingSelect segments of the market to offer products and services Who can we most efficiently and effectively establish a relationship with better than our competitors?
What criteria should be used to select a target market?
Strategy
Positioning How your product/company is perceived in the hearts and minds of your customers?
Price leader/Innovator/Fashion leader/ Quality/Service What associations come to mind?
SummaryA firm needs to:
Analyze the market 4 C’s (Company, Competitors, Collaborators, Customers), and environmental factors
Develop a strategic plan beginning with Segmentation, Targeting, and Positioning
Followed by tactical decisions Product (Brand), Price, Promotion, and Place
Implementation issues
Shopping Insights Diary
Introspective Approach vs Depth-Interview
Think through the purchase process involved in three recent purchases. You will need to provide a description of how and why you decided to purchase the product, as well as offer insights to other consumers like yourself, and marketers.
Consumer Decision Making
ChoiceAlternativeEvaluation
SearchNeed
RecognitionPost-Purchase
Evaluation
Consumer-side
Need Recognition:
Subaru Legacy had 198,500 miles on it One night the rear window stopped working (when it was partially open) I suggested it was time…
Search:
Determinant attributes: Holds 6 passengers, a cello, and a double bass Not an SUV
Our “consideration set”?
Search:
Visit to Edmunds to determine price and read consumer ratings
Toyota Sienna rating 8.4 out of 10, price $30K
Volvo Cross Country rating 9.6 out of 10, price $40K
Subaru Outback (L.L. Bean) rating 8.9 out of 10, price $32K
Search:
Called local dealers to check on availability
Found a 1999 Volvo Cross Country forest green, leather seats, sunroof, climate control… brought it home for hubby to test drive
Evaluation:
Called the dealer back to get their best offer Went “shopping” with the kids
Test drove a 2000 Volvo Cross Country
Went to the Toyota dealer, but didn’t even test drive the Sienna Went to the Subaru dealer and test drove a new L.L. Bean Outback
Post-purchase evaluation :
I check out the latest classifieds on Sunday morning to see if we paid too much
After getting the window fixed a few days later my husband felt a bit disloyal to his Subaru I suggested we keep the Subaru as a back-up car
Consumer Decision Making
ChoiceAlternativeEvaluation
SearchNeed
RecognitionPost-Purchase
Evaluation
Consumer-side
Marketer-side
Action Desire Interest Awareness
Need Recognition
Our daughter got her driving permit in FebruaryNext year she will be able to drive herself to school, music lessons, orchestra rehearsals, musical rehearsals, gigs …That means I won’t have a car!!
Search:
Determinant attributes: Needs to hold a double bass Can’t be any bigger than the Volvo 240
Our “consideration set”?
Search:
Volvo S40Rating 8.8 out of 10
Subaru ForesterRating 9.2 out of 10
Volkswagen PassatRating 9.2 out of 10
Search:
Many visits to Edmunds Invoice prices
Went to the Auto Show Looking to see if we were missing something
Visited Volvo & Subaru dealershipsTest drove the S40 & Forester
Evaluation:
I like them both! The Forester was better suited for transporting a bassWe got a call from a Volvo sales person who had just the thing we were looking for ... when we got there it had been soldWe stopped at the Subaru dealership and the sales person found us exactly what we were looking for so we bought it!
Post purchase evaluation:
I’m happy to have a car that fits the bass, or garage, and looks great!My husband is happy to have a Subaru back in the familyMy daughter is thrilled that she will have a car to drive next fall