11types of market segmentationgeographic, demographic, psychographic 2demographic segmentationage (trix cereal), gender (tampax), ethnicity (BET), income (porche), education (Apple), occupation (scrub store), family type (minivans), marital status (eharmony) 3geographic segmentationnation, region (churches chicken), urban/rural (pesticides), regional (surf shop), climatic (imos) 4psychographic segmentationattitudes and lifestyleex.) mountain dews appeal to the active "x-treme" youth5geodemographic segmentationshotguns and pickups-rural blue-collar workers and families6Market Segmentation Purchase behavior:Usuage (Light, medium, heavy)Loyalty status (brand loyal vs. variety)User status (user vs. nonuser, former user)7marketing conceptan organization should seek to make a profit by serving the needs of consumer groups8effective marketing2starts with the recognition of consumer needs and then works backwards to devise products and services to satisfy needs9principle task of marketing functionfind effective and efficient ways of making the business do what interests the customers10Plan for entire organization must exist before...individual divisions or departments can implement a marketing plan11true mission of an organizationprovide value for customers, employees, and investors12strategic planningactivities that lead to a clear organizational mission, organizational objectives and appropriate strategies to achieve objectives134 components of strategic planmission, objectives, strategies, protfolio plan14"drifting" organizationsoriginal purpose may become irrelevant; original may remain relevant, but managers lose interest; changes in environment make original plan inappropriate 15mission statementdefines the direction which the organization is heading and how it will succeed in reaching its desired goal16most widely used managent tool...mission statement 173mission statement must be...achieveable-open a vision of new opportunities and dont lead org to unrealistic ventures18organizational objectibes end point of organizations mission-what it seeks through the ongoing operations of the org 19organizational objectives must be...specific, measurable, reasonable, time specific 20organizational strategiesthe choice of major directions the org will take 21organizational strategies are based on...products and market; competitive advantage; value 22market penetration stragegies increasing the sale of present products to present customers23market product developmentfinding new customers for present products24product development stragetiesdeveloping new products primarily for present customers25diversificationnew products for suctomers not currently being served 264competitive advantageability to outperform competitors in providing something that the market values 27ways to have competitive advantage-cost leadership strategy: being the low-cost company in industry-differentiation: unique in its industry along dimensions that customers value28"customer value" has becomeincreasingly important for marketers and customers29firms must seek long-term relationships with customers by...offering a unique value that only they can offer: best price, best product, best service 30Portfolio Planfinal phase of the strategic planning process 31strategic business unitsdistinct mission, have own competitors, single business/collection of related businesses, can be planned independently 32portfolio modelsdetermine how resources should be allocated among single business units33marketing managementplanning and executing conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges with target groups that satisfy the customer 34cooperative environmentall firms and individual who've vested interest in the firms acomplishing its objective535parties of primary interestsuppliers, resellers, other departments in the firm, subdepartments and employees of marketing dept 36competitive environmentincludes primarily other firms in the industry that rival the org for both resources and sale37competitive enviornment opportunitiesacquire competing firms; offering better value to customers/attracting them away from competitors; and driving competitors out of the industry38economic environment includes state of the macroeconomy and changes in it also bring about marketing opportunities and constraints 39social environmentgeneral cultural and social traditions, norms, and attitudes--change slowly but birng need for new products and services 40political environmentattitudes and reactions of the general public, social and business critics and other orgs 41legal environmentincludes a host of federal, state, and local legislation directed at protecting both business competition and consumer rights 42establishing objectives for market planningderived from organizational objectives and are stated as standards of performance or as tasks to be achieved by given dates 436crucial element of market planselecting the groups or segments of potential customers the firm is going to serve with each of its products44marketing mixcontrollable variables must be managed to satisfy the target market and achieve organizational objectives454 P'sproduct, price, promotion, place46market planformal statement of decisions that have been made on marketing activities-blueprint of the objectives, strategies, and tasks to be performed47Implementing the market planputting the plan into action and performing marketing tasks according to the predefined schedule 48controlling the marketing plan:-measured-compared-decisions made whether plan is achieving objectives49marketing executives involved in systems & research 2 ways:influence the process by providing inportant inputs, must always be aware of what the process of strategic planning involves as well as the results(everything they do must be derived from the strategic plan)50greatest advantage to strategic planning with cross-functional teamthe ability of team members to consider a situation from a number of viewpoints751logic of market segmentationa single product wont necesarily meet the needs of every consumer52market segmentationdividing a market into groups of similar consumers 53priori segmentation approachmarketing manager has decided on the appropriate basis for segmentation before doing research on the market54post hoc segmentationpeople are grouped into segments on the basis of research findings55benefit segmentationbenefits people are seeking in consuming