1 1 types of market segmentation geographic demographic psychographic 2 demographic segmentation age trix cereal gender tampax ethnicity BET income porche education Apple occupation scrub store family type minivans marital status eharmony 3 geographic segmentation nation region churches chicken urban rural pesticides regional surf shop climatic imos 4 psychographic segmentation attitudes and lifestyle ex mountain dews appeal to the active x treme youth 5 geodemographic segmentation shotguns and pickups rural blue collar workers and families 6 Market Segmentation Purchase behavior Usuage Light medium heavy Loyalty status brand loyal vs variety User status user vs nonuser former user 7 marketing concept an organization should seek to make a profit by serving the needs of consumer groups 8 effective marketing 2 starts with the recognition of consumer needs and then works backwards to devise products and services to satisfy needs 9 principle task of marketing function find effective and efficient ways of making the business do what interests the customers 10 Plan for entire organization must exist before individual divisions or departments can implement a marketing plan 11 true mission of an organization provide value for customers employees and investors 12 strategic planning activities that lead to a clear organizational mission organizational objectives and appropriate strategies to achieve objectives 13 4 components of strategic plan mission objectives strategies protfolio plan 14 drifting organizations original purpose may become irrelevant original may remain relevant but managers lose interest changes in environment make original plan inappropriate 15 mission statement defines the direction which the organization is heading and how it will succeed in reaching its desired goal 16 most widely used managent tool mission statement 17 3 mission statement must be achieveableopen a vision of new opportunities and dont lead org to unrealistic ventures 18 organizational objectibes end point of organizations mission what it seeks through the ongoing operations of the org 19 organizational objectives must be specific measurable reasonable time specific 20 organizational strategies the choice of major directions the org will take 21 organizational strategies are based on products and market competitive advantage value 22 market penetration stragegies increasing the sale of present products to present customers 23 market product development finding new customers for present products 24 product development strageties developing new products primarily for present customers 25 diversification new products for suctomers not currently being served 26 4 competitive advantage ability to outperform competitors in providing something that the market values 27 ways to have competitive advantage cost leadership strategy being the low cost company in industry differentiation unique in its industry along dimensions that customers value 28 customer value has become increasingly important for marketers and customers 29 firms must seek long term relationships with customers by offering a unique value that only they can offer best price best product best service 30 Portfolio Plan final phase of the strategic planning process 31 strategic business units distinct mission have own competitors single business collection of related businesses can be planned independently 32 portfolio models determine how resources should be allocated among single business units 33 marketing management planning and executing conception pricing promotion and distribution of goods services and ideas to create exchanges with target groups that satisfy the customer 34 cooperative environment all firms and individual who ve vested interest in the firms acomplishing its objective 5 35 parties of primary interest suppliers resellers other departments in the firm subdepartments and employees of marketing dept 36 competitive environment includes primarily other firms in the industry that rival the org for both resources and sale 37 competitive enviornment opportunities acquire competing firms offering better value to customers attracting them away from competitors and driving competitors out of the industry 38 economic environment includes state of the macroeconomy and changes in it also bring about marketing opportunities and constraints 39 social environment general cultural and social traditions norms and attitudes change slowly but birng need for new products and services 40 political environment attitudes and reactions of the general public social and business critics and other orgs 41 legal environment includes a host of federal state and local legislation directed at protecting both business competition and consumer rights 42 establishing objectives for market planning derived from organizational objectives and are stated as standards of performance or as tasks to be achieved by given dates 43 6 crucial element of market plan selecting the groups or segments of potential customers the firm is going to serve with each of its products 44 marketing mix controllable variables must be managed to satisfy the target market and achieve organizational objectives 45 4 P s product price promotion place 46 market plan formal statement of decisions that have been made on marketing activities blueprint of the objectives strategies and tasks to be performed 47 Implementing the market plan putting the plan into action and performing marketing tasks according to the predefined schedule 48 controlling the marketing plan measured compared decisions made whether plan is achieving objectives 49 marketing 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 50 greatest advantage to strategic planning with cross functional team the ability of team members to consider a situation from a number of viewpoints 7 51 logic of market segmentation a single product wont necesarily meet the needs of every consumer 52 market segmentation dividing a market into groups of similar consumers 53 priori segmentation approach marketing manager has decided on the appropriate basis for segmentation before doing research on the market 54 post hoc segmentation people are grouped into segments on the basis of research findings 55 benefit segmentation benefits people are seeking