Principles of marketing: Lecture 19

Principles of marketing: Lecture 19 provide students with knowledge about: marketing mix - 4Ps; components of strategic marketing; value-driven marketing; levels of products; product classifications;... Please refer to this lesson for details!

MGT301 Principles of Marketing Lecture­19 Summary of   Lecture­18 Market Segmentation (cont ) Requirements for Effective  Segmentation Measurable Measurable Accessible Accessible Substantial Substantial Differential Differential Actionable Actionable • Size, purchasing power, profiles of segments can be measured • Segments must be effectively reached and served • Segments must be large or profitable enough to serve • Segments must respond differently to different marketing mix elements & actions • Must be able to attract and serve the segments Target Marketing Positioning for Competitive Advantage Identifying Possible Competitive  Advantages Product  Differentiation i.e. Features,  Performance, Style &  Design, or Attributes Image Differentiation i.e. Symbols,  Atmospheres, Events Services Differentiation i.e. Delivery, Installation,  Repair Services, Customer  Training Services Personnel  Differentiation i.e. Hiring, Training  Better People Than  Competitors Do Today’s Topics Marketing Mix 4 Ps Marketing is the involved process of determining the  4 P’s of the  Marketing Mix – Product  – Price – Promotion – Place (Distribution) High Involvement Decisions Low Involvement Decisions Durable Durable Goods Goods Provide Provide Long-Term Long-Term Benefits Benefits (cars, (cars, furniture, furniture, appliances) appliances) Nondurable Nondurable Goods Goods Provide Provide Short-Term Short-Term Benefits Benefits (newspapers, (newspapers, food) food) Product Classifications Consumer Products Types of  Consumer  Products  Convenience Shopping Specialty Unsought  Frequent purchases bought  with minimal buying effort  and little comparison  shopping  Low price  Widespread distribution  Mass promotion by producer  Types of  Consumer  Products    Convenience  Shopping Specialty Unsought   Less frequent purchases  requiring more shopping  effort and price, quality, and  style comparisons.  Higher than convenience  good pricing Selective distribution in fewer  outlets Advertising and personal  selling by producer and  reseller Types of  Consumer  Products  Convenience Shopping  Specialty Unsought  Strong brand preference and  loyalty, requires special  purchase effort, little brand  comparisons, and low price  sensitivity  High price  Exclusive distribution  Carefully targeted promotion  by producers and resellers Types of  Consumer  Products  Convenience Shopping Specialty  Unsought  Little product awareness and  knowledge (or if aware,  sometimes negative interest)  Pricing varies  Distribution varies  Aggressive advertising  and personal selling by  producers and resellers Industrial products   Materials and parts   Capital items   Supplies and services Enough for today. .  Summary Marketing Mix 4 Ps Levels of Products Augmented Augmented Product Product Installation Packaging Brand Name Delivery & Credit Quality Level Core Core Benefit Benefit or or Service Service Features Design Warranty Actual Actual Product Product Core Core Product Product AfterSale Service Product Classifications Next… Product (cont ) MGT301 Principles of Marketing Lecture­19 ... Product AfterSale Service Product Classifications Next… Product (cont ) MGT301 Principles? ?of? ?Marketing Lecture? ?19 ... availability of products Activities that inform customers about the organization and its products Components? ?of? ?Strategic Marketing Value­Driven Marketing Value – A customer’s subjective assessment? ?of? ?benefits relative to ... Actionable • Size, purchasing power, profiles of segments can be measured • Segments must be effectively reached and served • Segments must be large or profitable enough to serve • Segments must