Marketing Overview Marketing study of exchanges that satisfy individual and organizational objectives Marketing Concept before try to sell something figure if there is a sufficient need Marketing Mix Price important with products that everyone makes rice gas Product MOST IMPORTANT Place convenience vending machine Promotion alcohol Benefits Categories Functional hammer pen chair Social facebook cell phone alcohol Experiential movies sports casinos Personal feel good about self sewing instrument makeup Cost Categories Monetary money tuition books Temporal time spent studying in class Psychological stress listening to professor Behavioral body walking to class energy getting sick from lectures Marketing Strategy and Competitive Analysis Immediate Environment company corporate partners competition Macroenvironmental Factors culture demographics social trends tech economic political Marketing Plan 1 Mission 2 Environmental Analysis 3 Segmentation Targeting Positioning Porter s Five Forces Model 1 Industry Competitiveness low intensity higher profitability few firms competing Commercial Aircrafts 2 Availability of Substitutes few substitutes higher prof gas few subs 3 Threat of Potential Entrants high barriers to entry higher prof high capital requirements economies of scale are present high product differentiation network externalities tech learning curve 4 Supplier and Buyer Power lower bargaining power of supplier buyer higher prof lower bargaining power high number low information Growth share matrix star high market growth market share Apple Ipod question mark high market growth low market share Kindle or Nook cash cow low market growth high market share sales of books amazon dog low market growth low market share barnes and noble com Sustainable Competitive Advantage advantage that can be maintained consistently over time Apple products known reliable products McDonald s own raw materials virtually everywhere open 24 7 Three Macro Strategies for Developing Customer Value 1 Operational Excellence 2 Product Excellence Apple Bentely 3 Customer Excellence Chick fil a Apple Ansoff s Product Market Expansion Grid 1 Market Penetration existing markets products 2 Market Development new markets existing products 3 Product Development existing markets new products 4 Diversification new markets products Market Segmentation and Target Marketing Market Segmentation dividing the total market for a good or service into several smaller internally homogenous groups necessary due to differences in buying habits the way the good or service is used motives for buying Maximize value concentrate resources on a few market segments 1 Identify current potential needs wants in market 2 Identify distinguishing characteristics among segments 3 Det the potential for the segments how well they would be satisfied Segmentation types Demographic age gender ethnicity income education cereal shoes fisher price Geographic nation region urban rural John Deer Ski Resorts Psychographic attitudes and lifestyles Gatorade mountain dew Purchase Behaviors usage light medium heavy beer toilet paper loyalty status milk coffee Apple user status former users season tickets magazines subscriptions Target Marketing Approaches Mass Marketing one product for all segments doesn t exist Niche Marketing one product per segment Nike s running shoe Differentiated Marketing multiple products for multiple segments Honda Individualized Customized Marketing customized Bentley Positioning Competitive Based Positioning hierarchical order of categories category membership for new products to show that brand belongs Points of Difference benefits selected strongest postions where brand has point of difference on main most important benefit small brands find niches stress one simple benefit in promotion correlational inferences Goal Positioning brand essence personality of brand Personality Dimensions sincerity excitement competence sophistication and ruggedness Laddering Up personality dimensions Dove Laddering down show reason to believe a benefit enhance competitivebased positioning Ford F150