Marketing 3010 Week 4 Notes
Marketing 3010 Week 4 Notes Mkt 3010-001
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This 10 page Class Notes was uploaded by Hannah Stephens on Friday January 22, 2016. The Class Notes belongs to Mkt 3010-001 at Clemson University taught by Carter Willis McElveen in Spring 2016. Since its upload, it has received 45 views. For similar materials see Principles of Marketing in Marketing at Clemson University.
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Date Created: 01/22/16
Chapter 2: Developing a Marketing Strategy and a Marketing Plan • Marketing Strategy o What’s the organizations main activity at a particular time? o How will it reach its’ goals? 1. Identifies a Firm’s Target Markets 2. A related Marketing Mix—their 4 P’s 3. The bases upon which the firm plans to build a sustainable competitive advantage. • Sustainable Competitive Advantage Customer Excellence Locational Customer Operational Excellence Value Excellence Product Excellence o Customer Excellence—Sets business apart by great customer service o Operational Excellence—Idea that you are efficient with business operation. i.e. Wal-‐Mart and Amazon o Product Excellence—Set product apart by its superiority. i.e. Mercedes, Rolex, BMW o Locational Excellence—Prime location to attract customers. i.e. Cracker Barrel • The Marketing Plan o After you identify opportunities, what’s the next step? • Planning Phase: Step 1—Business Mission and Objectives o What business are we in? o Should focus on the market or markets the organization is trying to serve rather than a good or service offered. o Don’t want to be too broad either o Also may include sustainable competitive advantage o Marketing Myopia—Defining a business in terms of goods and services rather in terms of the benefits that customer seek. • Planning Phase: Step 2—SWOT Analysis S —(strengths) Things the company does well W —(weaknesses) Things the company does not do well O —(opportunities) Conditions in the external environment that favor strengths T —(threats) Conditions in the external environment that don’t relate to existing strengths or favor areas of current weaknesses. *Strengths and weaknesses are internal while opportunities and threats are external Environmental Scanning—Helps identifies opportunities and threats -‐Guidelines for Designing Marketing Strategy based on 6 Macroeconomic forces: Social, Demographic, Economic, Technological, Political/Legal, and Competitive • Step 3: Identifying & Evaluating Opportunities Using STP • Which segments of customers can you satisfy Segmentation • Evaluations of each segments of Targeting attractions • How you are positioning the Positioning product within the target segments • Step 4: Implement Marketing Mix & Allocate Resources o Product value creation o Price value capture o Place value delivery o Promotion value communication • Step 5: Evaluate Performance & Make Adjustments o Who is responsible for performance o Performance objectives and measures o Financial performance metrics o Portfolio analysis Portfolio Matrix Star Problem Child -‐High market growth -‐High market growth -‐High market share -‐High market share -‐Cash neutral -‐Cash absorbing -‐Hold -‐Build Cash Cow Dog -‐Low market growth -‐Low market growth -‐High market share -‐Low market share -‐Cash generating -‐Cash neutral -‐Harvest or milk -‐ Divest • Growth Strategies o Target Market—Defined group most likely to buy a product ▯ Changes as consumers age ▯ External elements change consumers’ desires o The Market Environment ▯ Consumers at center!!*** ▯ The Micro Environment • Successfully leveraging company capabilities o Core Competency o Existing knowledge, facilities, parents, etc. o New markets, new products, etc. o Competition ▯ Competitive Intelligence (CI) ▯ Know strengths and weaknesses ▯ Proactive rather than reactive strategy o Corporation Partners ▯ Firms are part of alliances ▯ Aligns with competitors, suppliers, etc. ▯ Just in Time Delivery Systems (JIT) Culture • Country Culture vs. Regional Culture o Texas—Something “mild” there is considered spicy everywhere else • Growing Ethnic Markets in the US o Spending power of ethnic markets in 2013: ▯ Hispanics $1.2 trillion ▯ African Americans $1 trillion ▯ Asian Americans $713 billion o Diversity can result in bottom-‐line benefits to companies ▯ Growth in these groups are outpacing the Caucasian market • Marketing to Hispanic Americans o The population’s diversity creates challenges for targeting this group—hyper local critical! o Hispanics tend to be brand loyal, but are now aware of many US brands o Ambicultural Group: Ability to switch between 2 cultures seamlessly • Marketing to African Americans o Many firms are creating products for the African American market o More aggressive consumers of media and shop more frequently o Favor smaller retail outlets like drug stores, convenience stores, more dollar stores • Marketing to Asian Americans o Younger, better educated, and have more average income of all groups o Called a “marketers dream” o Leading segment of online shopping—77% made internet purchases in 2013 o Cultural diversity within the Asian American market complicated promotional efforts • Ethnic and Cultural Diversity o Multi-‐Culturalism—Occurs when all major ethnic groups in an area (city, county, or census tract) are roughly equally represented. o US trend is toward greater multiculturalism o America’s racial and ethnic patterns have taken on distinctly regional dimensions Demographics o People are the basis for any market o Demographic characteristic relate to buyer behavior ▯ Tailoring products to what customers value is key to sales ▯ Demographic cohorts have their own needs, values, and consumption patterns • Seniors—“Greatest Generation” o Born before 1946 o More likely to complain o Needs special attention o Takes time browsing before purchasing o Made in USA o Not into designer labels o Loyal and willing to spend but quality conscious and want convenient hassle free shopping • Baby Boomers o Born between 1946 and 1964 o Wealthiest generation in history ▯ Acct. for 50% of consumer spending ▯ Hold ¾ of the nation’s financial assets o Recession hit baby boomers hard, eating into savings and retirement prospects o Represent strong targets for financial services o See work as more central to their lives that later generations • Generation X o Born from 1965-‐1976 o Most educated generation to date o Less materialism than other groups o Skeptical of marketing o Careful spenders o Independent, value autonomy and freedom st o 1 generation to fully embrace the internet o More socially liberal than other generations • Millennials/Gen Y o Born between 1977-‐2000 o $733 billion in purchasing power o Ethnically diverse o Fluent with digital technology o Personalization product customization are key to marketing success o Raised by “soccer moms” o Always known danger • Gen 2/Tweens o Ages 0-‐18 o Purchasing power of $44 billion annually o Parents spend $600 billion on them annually o Like online shopping o Realistic and Savers o View TV ads as “just advertising” o Aspire to be older—but are still children o Want to be unique—but also fit in. o Entrepreneurship in their DNA! Income • Purchasing power is tied to income • Census bureau tracks income • Many middle class families feel the decline in purchasing power in recent years • Asians targeted more and deemed the marketer’s dream because they make more money because of higher education • Education is related to income, which determines spending power! • Gender—Male/female roles have been shifting o Marketing has changed to reflect these shifts • Social Trends o Thrift: Consumers—Spend less on luxuries, attempting to save more, do not dip into their savings o Health & Wellness Concerns ▯ Worldwide pandemics or epidemics ▯ Child-‐teenage obesity o Greener Customers ▯ Customers who appreciate firms efforts to supply the with environmentally friendly merchandise ▯ Greenwashing—Pretending to be very green and eco-‐ friendly but really not o Privacy Concerns ▯ Loss of privacy ▯ Identity theft ▯ Do not call ▯ Do not email o Time Poor Society ▯ In the majority of families, most parents work ▯ Consumers have many more choices regarding less time ▯ Many consumers multitask ▯ More businesses open more hours o Technological Advances ▯ Technology has impacted every aspect of marketing • New products, new forms of communication, new retail channels o Economic Situation ▯ Foreign currency fluctuations ▯ Combined with inflating and interest rates affect firms’ ability to market goods and services o Political/Regulatory Environment ▯ Competitive proactive and trade legislation Ch. 6: Consumer Behavior • Men buy, Women Shop—Differences in the shopping aisle o Women view shopping as a personal experience o Men view shopping as a mission –Not going to look around! • Understanding Consumer Behavior o How consumers make purchase decisions o How consumers use and dispose of product • Consumers Decision Process 1. Need recognition 2. Information search 3. Alternative evaluation 4. Purchase 5. Post purchase
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