MARKETING

• Target market


  A group of individuals who have similar needs, perceptions and interests. They show inclination towards similar brands and respond equally to market fluctuations.
• Selecting target markets


  Individuals who think on the same lines and have similar preferences from the target audience. Target market includes individuals who have almost similar expectations from the organizations or marketers.
• Selecting target markets


  It is a marketing activity that should be planned carefully. The consequence of picking the wrong segments may lead to lost opportunities and waste of company resources.
• Criteria to determine which segments are right for the firm

  • Size
  • Expected growth
  • Competitive position
  • Cost of reaching the segment
  • Compatibility with the firm's objectives and resources
• Market positioning

  The ability to influence consumer perception regarding a brand or product relative to competitors. The objective is to establish the image or identity of a brand or product so that consumers perceive it in a certain way.
• Businesses use marketing to create value for customers


  1. Decision 1: Choose which customers to serve

  2. Decision 2: Choose how to serve those customers
• Value proposition


  The position a business will take after choosing which segments to target
• The market position (or value proposition) is defined by customers - the place a product occupies in customer minds relative to competing products
• Positioning the product


  A marketing strategy designed to better display goods to identify target markets in the best possible way. Symbols and manipulation of messages, including screens and packaging, are involved.
• Example of product position


  • Crispy fried chicken has always been associated with Max's Restaurant. It is not the only fried chicken restaurant (KFC is the leading fried chicken chain), but it holds a distinct message, especially among Filipino tradition's senior market segments, family bonding, and a unique form of fried chicken experience.
• Product's position should not be confused with its slogan or catchphrase
• Points of Difference (PODs)

  Attributes or benefits that the market associates primarily with a particular brand, to the point that the market believes that no other brands offer these attributes or benefits to the same degree.
• Points of Parity (POPs)


  Market expectations about what products in a particular products category should be or should have.
• Two broad categories of market position

  • Cost Leader Strategy
  • Differentiation Business Strategy
• Cost Leader Strategy


  A company using this strategy attempts to position itself in the minds of the consumers as a company that provides products the consumers want at a price that is lower than competing products available in the marketplace. Consumers expect basic products with no bells and whistles.
• Differentiation Business Strategy


  A company using this strategy attempts to position itself in the minds of the consumers as a company that provides unique products that consumers will pay more for because they cannot find comparable products or product features anywhere else in the marketplace. Consumers expect more from a differentiated product and therefore are willing to pay a premium.
• Perceptual map


  A visual technique designed to show how the average target market consumer understands the positioning of the competing products in the marketplace. It maps consumer perceptions and understandings.
• Perceptual Mapping


  Involves the identification of competitive brand's position using variables or axes (e.g. price and quality). Each variable represents a factor relevant and important to customers.
• A perceptual map represents customer perceptions and preferences by means of a visual display.
• Example of consumers' perception on the level of sugar and caffeine of soft drinks

  • HIGH CAFFEINE
  • HIGH SUGAR
  • LOW CAFFEINE
  • LOW SUGAR
  • COKE ZERO
  • PEPSI MAX
  • DIET COKE
  • PEPSI LIGHT
  • COKE
  • PEPSI
  • FANTA
  • 7-UP
• Example of consumers' perception on the level of excitement and ease of use of mobile phones

  • Exciting
  • Easy to use
  • Boring
  • Hard to use
  • Samsung
  • LG
  • Motorola
  • Nokia
  • Blackberry
  • Sony
  • Apple
• Why use a perceptual map?


  • To understand how brand is perceived in the marketplace
  • To track how the perception of our brand is evolving over time, with new products and campaigns
  • To track the perception of competitor products and measure the impact of their marketing strategies
  • To identify positioning preferences for different market segments
  • To identify possible gaps and opportunities for new products
  • To identify possible opportunities for repositioning our brand
• Identify the product that does not belong to the same dimensions

  • Hapee, Colgate, Green Cross
  • Tide Bar, Palmolive Soap, Surf Bar
  • Fruit Shake, Milk Tea, Fruit Juice
  • Bear Brand, Anchor, Ensure
  • Likas Papaya Soap, Skin White Soap, Nivea
  • Palmolive, Sunsilk, Creamsilk
  • Baygon, Lysol, alcohol
  • Sardines, Ligo, Sardines, Nescafe
  • yogurt, Yakult, Soda
  • 10. Toyota, Asahi, Suzuki
• Marketing Mix


  Also known as the 4P'S of Marketing
• Product


  • Focus on the benefits and features of the product
  • Consider product interaction
• Who wants the product and why?


  What needs does it satisfy? Does it solve problems for the consumer, or help them overcome challenges?
• Product features


  Which of the product's features help it meet the needs of the consumer?
• Competitive advantage


  Something the product has that makes it stand out from competitors' goods (e.g. price, quality, guarantee, after-sales service)
• Product testing


  1. Ask representative samples of consumers to try out the product

  2. Take careful note of their feedback regarding its pros and cons

  3. Ask them whether the product lacks features

  4. Ask them how it compares to competing products
• Packaging


  Serves to contain and protect, and sometimes, identify and promote the product
• Labeling


  Display information about a product on its container, packaging, or on the product itself
• Factors to consider in labeling

  • Establish the image or personality of the product based on the taste & preferences of the target market
  • Determine the most important features of the product to the target market
  • Determine where the products will be sold & the applicable regulatory requirements, if any
  • Determine the placement of the product in relation to other products, particularly competitors
• Product labels


  Play a vital role in a product's marketing and are a product's "Silent Salesman"
• New Product Development


  • To defend its market share
  • To position ahead of competition in a market segment
  • To establish a foothold in a future market in the future
  • To take advantage of strengths in product distribution
• Price


  • Determines many things, including profit margin and investments for future growth
  • Determines what kind of discounts or special deals can be offered
• Consumer perception of price

  The consumer must perceive the purchase as a good and worthwhile deal
• Price is not everything, quality and after-sales service also matter
• Competitive pricing


  Product's price must be competitive and you need to know as much as you can about rivals' pricing strategies
• Pricing Strategies


  • Mark-up Pricing
  • Target Return Pricing
  • Odd Pricing or Psychological Pricing
  • Loss Leader Pricing
  • Price Lining
  • Prestige Pricing
  • Marginal Pricing
  • Predatory Pricing
  • Going Rate Pricing
  • Promotional Pricing
• Break-even point


  The point where the company would make no profit but will also incur no loss