MKTG Exam 2 10 21 2013 1 Mission Statement a statement of the organization s purpose 2 Good mission statements are 3 Steps in strategic planning market oriented realistic specific motivating illustrative of distinctive compentencies defining the mission statement setting company goals and objectives designing the business portfolio planning marketing and other functioning strategies 4 Criticisms of BCG Matrix limited number of variables used ignores interrelationship between businesses the placement of a business in the matrix is highly dependent on definition of market 5 Product Market Expansion Grid Existing Products New Products Market Penetration Product Development Market development Diversification Existing Market s New Market s 6 Market Penetration to increase sales to current customers without changing the products being sold achieved by price place and promotion ex Gold card free on birthday comfy atmosphere 7 Market Development 8 Product Development 9 Diversification identify and develop new markets for current products offering modified or new products to current markets start up or buy businesses outside of current products and markets 10 Intermediate Market Segmentation 11 SWOT Analysis strengths internal capabilities that help company reach objective weaknesses internal limitations that may interfere with a company s ability to achieve opportunities external factors that a company may be able to exploit to its advantage threats current and emerging external factors that may challenge the company s its objective performance 12 Marketing Implementation the execution of a plan is usually the hardest part often ends up being more about personal relationships and or luck than plans took into account 13 Marketing Control evaluate the results of marketing strategies and plans set marketing goals measure actual vs expected take corrective action 14 Steps in Segmenting Targeting and Positioning STP market segmentation identify bases for segmenting the market develop segment profiles 15 Segmentation target marketing develop measure of segment attractiveness select target segments market positioning develop positioning for market segments develop market mix dividing a market into smaller groups that 1 have distinctive needs characteristics or behaviors 2 respond differently to marketing efforts and therefore 3 might require their own products and marketing 4 Ps 16 Geographic Segmentation dividing a market into different geographic units country city size etc 17 Demographic Segmentation dividing a market based on demographic variables age gender family size race etc which is easier to measure than most variables 18 Psychographic segmentation dividing a market based on social class lifestyle personality 19 Behavioral segmentation based on behaviors such as benefits sought usage occasion user status usage rate segments of consumers who have similar needs and buying behavior even though they loyalty status 20 Intermarket segmentation are located in different countries ex Ikea H M 21 Requirements for effective segmentation measurable can be identified and measured accessible can be reached and served substantial large and profitable enough differentiable separate from other segments actionable can be marketed to by our company 22 Targeting choosing the segment that is most attractive to your organization 23 Evaluating Marketing Segments a Internal does the segment fit with objectives and resources b External how big is segment What s growth potential What are the substitutes 24 Differentiated segmented marketing targets several market segments and designs separate offers for each 25 Concentrated niche marketing targets a large share of one or a few small segments or niches tailoring products and marketing programs to suit the tastes of specific locales and or 26 Micromarketing individuals local marketing individual marketing 27 Positioning Statement a statement that summarizes a company or brand positioning to target segment need our brand is concept that point of interest 28 Positioning the key concept to be communicated to the target consumer the place the product occupies in the consumers mind relative to competing products 29 Competitive Advantage differentiate brand based on product services channels people images 30 Two types of Differentiation Vertical Horizontial 31 Total Product Concept 32 Maslow s Hierarchy 33 Types of consumer products convenience shopping specialty unsought 34 Three levels of product decisions 35 Labeling 36 Product Line length number of items in a product line 37 Product mix all the product lines and items that a particular seller offers individual product decisions product line decisions product mix decisions identifies the product or brand supports the brand positioning adds personality to brand 38 Product mix dimensions length number of items in line width number of different product lines carried depth number of versions offered of a product in a line consistency how closely related various lines are 39 What is a brand 40 Brand Equity marker of identification for a product trust the positive effect that knowing the brand name has on a customer response to a greater awareness loyalty strong profitable customer relationships willingness to based on product attributes benefits beliefs and values 43 Brand name selection desirable qualities suggests benefits easy to pronounce remember distinctive extendable translatable product 41 High brand equity provides buy pay 42 Brand positioning capable of being registered protected 44 Law of Shape 45 Line extension the ideal shape for a logo is horizontal 46 Brand extension faster acceptance 47 Multibranding 48 New brands introduction of additional items within the current product category under the same brand name same as product development using a successful brand name to launch a product in a new category greater credibility multiple brands by the same company in the same product category used when existing brand names are either unsuitable for brand extension or the company doesn t want to dilute them 49 Law of the Word a brand should strive to own a word in the mind of the consumer 50 Four service characteristics intangibility variability inseparability parishability services cannot be seen tasted felt heard or smelled before purchase ex Class quality of service depends on who provides them and when where and how ex 51 Intangibility 52 Variability Teacher 53 Inseparability 54 Parishability services