Marketing revision for second year exam

Segmentation

‘splitting customers, or potential customers, within a market into different groups, or segments’ (McDonald and Dunbar, 2010)

Sing prod won't meet all needs of cons. Analyse customers, comp, allocate res so plan future.

Variables (Dibb and Simkin, 2008)- Customer- Demographic, psychographic, behaviouristic, Geographic. E.g. for each. Apply.

Business- Characteristics of buyers, situational factors, purchase approach, operating variables, org demohraphics

Segmentation criteria- Differential, dissimilar segments, measurable, substantial, accessible, stable

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Targeting and positioning

The decision about which market segment(s) an organisation decides to prioritise for its sales and marketing efforts’ (Jobber, 2004)

Strategies- Undifferentiated (Royal Mail), Concentrated (Rolex), Differentiated (BBC)

Positioning- Create image in consumers minds.

Examples- Mondelez (Belvita), Jamie Oliver (brand stretching) Behav, psycho, demo. Extend to sauces, utensils, books.

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Branding 1

‘a name, term, sign, symbol or design or a combination of these that identifies the goods or services of one seller or a group of sellers and differentiates them from competitors’ (Kotler et al, 2008)

Benefits- Add value, differentiation, relationships, quality assurance, trust, consistency, communication, global harmonisation, personal relation for cust.

Drawbacks- overcharge, pointless consumption (Pereira Heath and Chatzidakis, 2012), destroy individuality, profit and globalisation focus

‘power of brand lies in mind of consumers and stems from what they have experienced from a brand over time’(Andrew and Kim (2007:353)

Intrinsic/Extrinsic (inner prod/packaging) Fill (2009:356) intrinsic change= hurt, extrinsic= may not

Corporate vs Product Brands e.g. P&G, Mondelez vs Marmite (part of unilever)

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Branding 2

Brand image vs identity (central brand ideas + comm w/ int stakeh- De Chernatony, 2007:45)

Issues in branding- Rebranding e.g. Raider to Twix

Brand stretching (same name, diff category) or Brand development (same both) (impact of both)

Real life examples: McVities. How do they brand? Brand image? Quality etc. What does latest campaign say? Family feel, cute animals & sweet biscuit. Why campaign? Capture more of market, they have 30%, simplify shopping experience. Methods they can use to communicate to internal stakeholders: bring pet to work day, video with brand details- engagement, staff meetings, pairing staff with others round the business. Have adverts on around the office.

Coke- new vs old

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Services Marketing

‘Activity or benefit  that one party offers another that is essentially intangible and doesn’t result inthe ownership of anything’ (Armstrong, 2006)

Product continuum for tangibility/intangibility (Brassington & Pettitt, 2005)

Characteristics of services- intangibility, inseparability, variability, perishability (Jobber, 2007)

Extended marketing mix- prod (serv qual), pric(PED), prom (word of mouth), plac (expansion- more channels, new agents), peop (recruit, selec, motiv+reward, variab), proc (policies, automation, queue, info gath), phys ev. Link to serv charac

Managing serv qual (Parasuraman et al 1991)- Cust expec (research), specific for qual (goals/commit to qual), employee performance (training), serv expectations (adv, int comm)

Assessing serv qual - Reliability, asuurances, tangibles, empathy, responsive

Real life examples- Hairdressers, Banks, Dentist. Apply to ext mark mix.

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Ethical Marketing

‘principles and standards that define acceptable marketing conduct as defined by various stakeholders’ Dibb et al 2012:743

Green marketing has struggled since the 1990s (Peattie and Crane, 2005) Marketing aims to make people unhappy with what they own (Peattie and Crane, 2005)

ethical mark= reduce, reuse, recycle, low carb footprint, charity work

unethical mark= consumption expansion, excess mat use, junk mail, over packaging, free proms

App to mark mix= prod (checked, anim test, risks), prom (misleading, some adv=ban), pric (fix, deceptive/predatory), plac (shortage, shut small retailers out, manufact vs retailer e.g. Tesco+Milk)

Issues in ethical mark= persuasive/deceptive adv, misleading sell tact, price fix, marketing harmful goods, sweatshop labour, western consump trends, advertising to children, tobacc adv

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Ethical marketing examples

Innocent (founded on sustainability. Ethical bc Sustainable sourcing (ethical for workers, sustainable agriculture initiative – place? & promotion?), reuse and recycle packaging, never using new stuff and using as little packaging as possible thus reducing carbon footprint (promotion and product). Sustainable ingredients in their products (buy from sustainable suppliers that aim to increase their environmental performance each year – product, place, price= higher too for quality fruit), 10% of profits go to charity (promotion and price?)

BUT not well communicated, competitors=Naked smoothie, own brands

Other good examples= The Body Shop, Lush (no animal testing), M&S

Bad examples= Volkswagen (lied about emissions), Primark (factory and child labour, Allchin,2013), Starbucks transferred money to dutch sister company to pay 0 corporation tax in UK despite £400m sales and Google, Amazon (tax scandals, tax avoidance instead of evasion, Barford and Holt, 2013)

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International Marketing 1

“the performance of business activities that direct the flow of a company’s good and services to consumers of users in more than one nation for a profit” (Ghauri & Cateora, 2014:8)

Why international? ^ sales, new mark, merge glob cust req, efficiency, glob sourc, spread FC, EoS (Doole & Lowe, 2012)

Market Entry methods- Direct export- through foreign agents/dis. +mark know. -risk, commited. Indirect export- independ orgs in exporters dom mark e.g. piggyback, co-op's, export agency. +not v risk, less commitment, good cont. Joint Ventures- 2 comp join & share cost of inv, risks & LT profs. -risk, cost, diff objectives. Direct Investment- inv in foreign based man facilities. +presence in diff count. -commitment (op= in foreign count), costly, risky. Contract Manufacture- getting firm to make goods in overseas market e.g. Nike & Gap. Strategic Alliance- network of firms that collaborate on project. Licensing- 1 firm allows other to use intellectual property for royalty payments e.g. Disney, Olympics, Man U. Franchising- right to name/produce products - not much control. Wholly-owned subsidiary- production/mark fac in foreign country. -expensive, risky, high D, commitment. Company acquisition- Buy a local org. e.g. Unilever, buy local companies and internationalise them

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International Marketing 2

Standardise/Adapt- stand= consistent brand image, cost benefit, better co-ordination worldwide. Adapt= meet wants/needs of diff people, address issues, LT profitability

Ability to internationalise depends on culture.

Culture- “collection of values, beliefs, behaviours, customs and attitudes that distinguish one society from another” (Griffin & Putsay, 2005)

Changes (Albaum et al, 1998) Mandatory- legal, technical, languages,

Voluntary- colours, names, sizes

Problems of internationalisation- less local comp, less flex, ^ cost, lang barr, need to service other countries, additional personnel

Ethical issues- rich companies= exploit cheap workers, low tax rates (look at ethical mark refs)

Real life examples- Asda/Walmart, Tesco, McDonalds

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Marketing Mix 1

‘A set of marketing programme activities designed to implement an agreed target market strategy’ (Baker, 2006: p25)

Price- Skim- HP LQ- Sony HDTV, Prem- HP HQ- Rolex, Econ- LP LQ- Ryanair, Pen- LP, HQ- Dell, Prod line- Tesco fine/value, Optional prod- access w/prod, Captive prod pric- LP main prod, HP second prod e.g. printer+cartridges, Prod-bundle pric- chunky chicken meal deal, Psych pric, Segment pric- appeal to segments e.g. kids eat free

Prom- Direct (direct mark- mail, cold call), Digital, Mass comm (advertising- AIDA Fahy & Jobber 2012, tv= success in past Boutne, Snelders and Hutlink, 2011), sales prom (cust incent e.g. BOGOF Fahy & Jobber 2012), PR (trust build non per comm Baines, Fill & Page, 2013 e.g. sponsorship, communities). Big adv spenders= P&G £203.9m 2011 spend (Syncforce, 2013) Push (cust pull prod through dist channel)/Pull strategy (channel mem prom prod to cust)

Prod-'Bundle of benefits’ (Blythe, 2005) generally tangible. PLC. 4 prod types- Convenience, Shopping, Speciality, Unsought e.g. coffin. Prod= outdated easily. Boston Matrix

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Marketing Mix 2

Place strategies- Intermediary or not? +improv dist eff, ^prod range, specialism. -cost, less control, competitor influence on intermediary

Dist channels- Direct (Dell, ASOS), Indirect (Unilever, P&G), Multi-channel (M&S, Tesco, Next). Multi-channel= bigger reach (Timlin, 2015)

Dist intensity= Exclusive/Intensive.

Real life examples= Any firm but apply the marketing mix to it

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References

Segmentation- McDonald & Dunbar (2010); Dibb & Simkin (2008); Jobber (2004)

Branding- Kotler et al (2008); Pereira Heath & Chatzidakis (2012); Andrew & Kim (2007:353); Fill (2009:356); De Chernatony (2007:45)

Services- Armstrong (2006); Jobber (2007); Parasuraman et al (1991); Brassington & Pettitt (2005)

Ethical- Dibb et al (2012:743); Peattie & Crane (2005); Barford & Holt (2013); Allchin (2013)

International- Ghauri & Cateora (2014:8); Doole & Lowe (2012); Jobber (2004); Griffin & Putsay (2005); Albaum et al (1998)

Marketing Mix- Baker (2006:25); Fahy & Jobber (2012); Boutne, Snelders & Hutlink (2011); Baines, Fill & Page (2013); SyncForce (2013); Blythe (2005); Timlin (2015)

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