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Reference Guide

Permachart - Marketing Reference Guide: Market Segmentation, Data Mining, Customer Relationship Management

6 pages337 viewsFall 2015

Department
Business Administration
Course Code
BUS 343
Professor
All
Chapter
Permachart

This preview shows pages 1-2. to view the full 6 pages of the document.
2Marketing Planning 3Marketing Planning
MARKET SEGMENTATION
TARGET MARKET
A target market is a group of people with similar
needs who are expected to respond similarly to a
marketing action
• Target markets evolve from the process of market
segmentation
MARKET SEGMENTATION
• The process of
partitioning markets
into groups (segments)
of potential customers
with similar needs
and/or characteristics
who are likely to
exhibit similar
purchase behavior
• The market segments that evolve should meet the
following criteria:
mThe potential for profits is higher when the market
is segmented, versus a mass market approach
mThe individuals within the segment should be
relatively homogeneous
mThere should be a difference between the
consumers in one segment versus another
mThere should be the ability to reach the people
within the segment with some marketing action
• Consumer markets can be segmented using 4 main
segmentation dimensions:
mGeographics state/province, city, Census
Metropolitan Area (CMA)
mDemographics – age, gender, Family Life Cycle,
marital status, income, occupation, education, race
mPsychographics – activities, interests, opinions,
personality, and lifestyle
mBehavior – benefits sought, usage rate, user
status, loyalty status
• Business Markets can similarly be segmented using;
mGeographics
region, location
mDemographics
North American
Industry
Classification
System (NAICS),
number of
employees, annual
sales
mBehavior – benefits
sought, usage rate,
user status, loyalty
status, purchase
method
TYPES OF MARKET SEGMENTATION
Once the market has been segmented the firm must
make a strategic decision as to how to market to the
various segments. The firm’s choices are as follows:
Concentrated targeting single product in a single
segment
Multi-segment targeting multiple
products in multiple segments
Undifferentiated targeting – single
product in multiple segments
POSITIONING
• The development of a successful
marketing mix depends on product
positioning
PRODUCT POSITIONING
• The position a product or service has in
the consumer’s mind relative to
competition
PERCEPTUAL MAP
• Positioning is based on consumer’s perceptions
• To determine a product/brand position the firm
then needs to know:
mThe attributes the consumers use in evaluating
products/brands in the category
mThe consumer’s perception of the competing
brands in the category based on the attributes
mThe “ideal” brand
From this information firms can create a perceptual
map – a picture in 2 dimensions that depicts the
location of competing products/brands based on how
consumers perceive them, relative to their ideal
brand. Positioning and repositioning decisions are
then made
Perceptual Map
MARKETING RESEARCH
Marketing research is the process of identifying a
problem and then systematically
collecting and
analyzing information
to recommend actions
to solve problems
THREE TYPES OF
RESEARCH:
Exploratory clarifies
the nature and scope
of the identified issue
or problem
Descriptive seeks data that answers questions to
determine the course of action
Causal identifies cause and effect relationships
MARKET RESEARCH PROCESS
1. Define the problem – may include exploratory
research to assist in clarifying the problem
2. Formal Research Design the basic framework
for finding the solution. This step in the process
requires the greatest time and expertise. The
results of the market research are closely linked
to the research design so this is also the most
important step in the process. Research Design
includes secondary data analysis, qualitative
research, methodology selection, questionnaire
design, sample design and size
3. Data Collection and Analysis – here the finalized
questionnaire is put into the field to gather
information from the chosen sample. This step
can take up to 50% of the time needed to
complete the research project. There are a
variety of ways that the data can be analyzed all
of which are dependent on the construction of
the questionnaire
4. Conclusion and Reporting the critical business
intelligence achieved from the research will be
influenced by how effectively the data is
reported to the decision makers
METHODS FOR COLLECTING INFORMATION:
1. Primary data collection:
Focus groups
• Surveys – mail, telephone, personal and on
line
• Observation
• Personal interview
Experiment
2. Secondary Data collection
Review of internal company documents
Outside the company – government sites, i.e.
Statistics Canada, libraries, associations, private
research firms
INFORMATION TECHNOLOGY AS A TOOL
The Internet and the Personal Computer provide
managers with a vast array of data sources that can
be used to better understand their business and
customers. The use of data sources and information
technology has given rise to Data Mining
Data-Mining: “Searching large volumes of data
looking for patterns that accurately predict
behavior in customers and prospects”
(www.adobe.com/products/vdp/glossary.html)
The patterns that are uncovered help create better
marketing strategies and are often the foundation
for a company’s customer relationship management
(CRM) programs
STRATEGIC MARKETING PLANNING
Strategic marketing planning is formalized in the marketing plan
MARKETING PLAN
Executive Summary
• A page or two synopsis that
summarizes all the sections of the
plan including key financial
numbers and well as brief
summaries of the other sections
Situational Analysis
• An analysis of the current situation through consideration of
the industry, competition, the consumer, the environment, the
company and the product or service for which the Marketing
Plan is being written
SWOT
The SWOT helps a firm identify opportunities and avoid disasters.
It is a summary of the Situational Analysis and is organized into
4 categories:
Objective Setting and Market-Product Focus
Based on the previous analysis, sales and market share objectives
are set. A determination is made as to what products will be
targeted to which customers; this is called market segmentation
and target marketing. In addition, market opportunities are
identified. The product market grid demonstrated below is a
tool to assist in this process
Ansoff’s Strategic Opportunity Matrix
Marketing Program
The Marketing Mix – the activities that will achieve the
objectives are determined here
Budget
The specific resources required to execute the marketing plan
are identified and projected sales and profits established
Controls
A plan is established to monitor how well actual performance
meets objectives
© 2007-2013 Mindsource Technologies Inc. © 2007-2013 Mindsource Technologies Inc.© 2007-2013 Mindsource Technologies Inc.
This Permachart covers the fundamen-
tals of Strategic Marketing Planning.
Strategic Marketing Planning ensures
the organization’s marketing mix
resources are appropriately allocated to
reach and satisfy the intended markets
as the organization strives to attain its
goals. This planning is critical to business
success because it matches organizational
resources and objectives to evolving
market opportunities. The strategic
marketing plan provides direction for
the organization by identifying the
organization’s:
Mission:
The firms scope; its customers, markets,
products, technology and values
Goals:
The firm’s targeted levels of performance
MARKETING
PLANNING
www.permacharts.com
Strengths (company)
Weaknesses (company)
Opportunities (industry, competition, environment)
Threats (market, competition, environment)
Market Penetration Strategy
Market Development
Strategy
Diversification
Strategy
Product Development
Strategy
High Price
Low Price
Low Quality High Quality
EXISTING NEW
Ideal
Brand X
Brand Y
Brand A
Brand B
Brand Z
Products
NEW EXISTING
Markets
BRANDING
The use of a name, trademark, symbol or combination
to identify a product and differentiate it from competition
BENEFITS OF BRANDING
Product identification and differentiation from
competition
Brand Equity the value of a brand as
determined by brand awareness, perceived
quality and brand loyalty among customers
Brand Personality the human characteristics a
brand takes on
BRAND STRATEGIES
Multiproduct branding – one name for all
products in a product class
Multibranding each product is given a distinct
name
Private branding a company manufactures
products but sells them under the brand name of
a wholesaler or retailer
Mixed branding a combination of private
branding and multibranding
TM
permacharts
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2Marketing Planning 3Marketing Planning
MARKET SEGMENTATION
TARGET MARKET
A target market is a group of people with similar
needs who are expected to respond similarly to a
marketing action
• Target markets evolve from the process of market
segmentation
MARKET SEGMENTATION
• The process of
partitioning markets
into groups (segments)
of potential customers
with similar needs
and/or characteristics
who are likely to
exhibit similar
purchase behavior
• The market segments that evolve should meet the
following criteria:
mThe potential for profits is higher when the market
is segmented, versus a mass market approach
mThe individuals within the segment should be
relatively homogeneous
mThere should be a difference between the
consumers in one segment versus another
mThere should be the ability to reach the people
within the segment with some marketing action
• Consumer markets can be segmented using 4 main
segmentation dimensions:
mGeographics state/province, city, Census
Metropolitan Area (CMA)
mDemographics – age, gender, Family Life Cycle,
marital status, income, occupation, education, race
mPsychographics – activities, interests, opinions,
personality, and lifestyle
mBehavior – benefits sought, usage rate, user
status, loyalty status
• Business Markets can similarly be segmented using;
mGeographics
region, location
mDemographics
North American
Industry
Classification
System (NAICS),
number of
employees, annual
sales
mBehavior – benefits
sought, usage rate,
user status, loyalty
status, purchase
method
TYPES OF MARKET SEGMENTATION
Once the market has been segmented the firm must
make a strategic decision as to how to market to the
various segments. The firm’s choices are as follows:
Concentrated targeting single product in a single
segment
Multi-segment targeting multiple
products in multiple segments
Undifferentiated targeting – single
product in multiple segments
POSITIONING
• The development of a successful
marketing mix depends on product
positioning
PRODUCT POSITIONING
• The position a product or service has in
the consumer’s mind relative to
competition
PERCEPTUAL MAP
• Positioning is based on consumer’s perceptions
• To determine a product/brand position the firm
then needs to know:
mThe attributes the consumers use in evaluating
products/brands in the category
mThe consumer’s perception of the competing
brands in the category based on the attributes
mThe “ideal” brand
From this information firms can create a perceptual
map – a picture in 2 dimensions that depicts the
location of competing products/brands based on how
consumers perceive them, relative to their ideal
brand. Positioning and repositioning decisions are
then made
Perceptual Map
MARKETING RESEARCH
Marketing research is the process of identifying a
problem and then systematically
collecting and
analyzing information
to recommend actions
to solve problems
THREE TYPES OF
RESEARCH:
Exploratory clarifies
the nature and scope
of the identified issue
or problem
Descriptive seeks data that answers questions to
determine the course of action
Causal identifies cause and effect relationships
MARKET RESEARCH PROCESS
1. Define the problem – may include exploratory
research to assist in clarifying the problem
2. Formal Research Design the basic framework
for finding the solution. This step in the process
requires the greatest time and expertise. The
results of the market research are closely linked
to the research design so this is also the most
important step in the process. Research Design
includes secondary data analysis, qualitative
research, methodology selection, questionnaire
design, sample design and size
3. Data Collection and Analysis – here the finalized
questionnaire is put into the field to gather
information from the chosen sample. This step
can take up to 50% of the time needed to
complete the research project. There are a
variety of ways that the data can be analyzed all
of which are dependent on the construction of
the questionnaire
4. Conclusion and Reporting the critical business
intelligence achieved from the research will be
influenced by how effectively the data is
reported to the decision makers
METHODS FOR COLLECTING INFORMATION:
1. Primary data collection:
Focus groups
• Surveys – mail, telephone, personal and on
line
• Observation
• Personal interview
Experiment
2. Secondary Data collection
Review of internal company documents
Outside the company – government sites, i.e.
Statistics Canada, libraries, associations, private
research firms
INFORMATION TECHNOLOGY AS A TOOL
The Internet and the Personal Computer provide
managers with a vast array of data sources that can
be used to better understand their business and
customers. The use of data sources and information
technology has given rise to Data Mining
Data-Mining: “Searching large volumes of data
looking for patterns that accurately predict
behavior in customers and prospects”
(www.adobe.com/products/vdp/glossary.html)
The patterns that are uncovered help create better
marketing strategies and are often the foundation
for a company’s customer relationship management
(CRM) programs
STRATEGIC MARKETING PLANNING
Strategic marketing planning is formalized in the marketing plan
MARKETING PLAN
Executive Summary
• A page or two synopsis that
summarizes all the sections of the
plan including key financial
numbers and well as brief
summaries of the other sections
Situational Analysis
• An analysis of the current situation through consideration of
the industry, competition, the consumer, the environment, the
company and the product or service for which the Marketing
Plan is being written
SWOT
The SWOT helps a firm identify opportunities and avoid disasters.
It is a summary of the Situational Analysis and is organized into
4 categories:
Objective Setting and Market-Product Focus
Based on the previous analysis, sales and market share objectives
are set. A determination is made as to what products will be
targeted to which customers; this is called market segmentation
and target marketing. In addition, market opportunities are
identified. The product market grid demonstrated below is a
tool to assist in this process
Ansoff’s Strategic Opportunity Matrix
Marketing Program
The Marketing Mix – the activities that will achieve the
objectives are determined here
Budget
The specific resources required to execute the marketing plan
are identified and projected sales and profits established
Controls
A plan is established to monitor how well actual performance
meets objectives
© 2007-2013 Mindsource Technologies Inc. © 2007-2013 Mindsource Technologies Inc.© 2007-2013 Mindsource Technologies Inc.
This Permachart covers the fundamen-
tals of Strategic Marketing Planning.
Strategic Marketing Planning ensures
the organization’s marketing mix
resources are appropriately allocated to
reach and satisfy the intended markets
as the organization strives to attain its
goals. This planning is critical to business
success because it matches organizational
resources and objectives to evolving
market opportunities. The strategic
marketing plan provides direction for
the organization by identifying the
organization’s:
Mission:
The firms scope; its customers, markets,
products, technology and values
Goals:
The firm’s targeted levels of performance
MARKETING
PLANNING
www.permacharts.com
Strengths (company)
Weaknesses (company)
Opportunities (industry, competition, environment)
Threats (market, competition, environment)
Market Penetration Strategy
Market Development
Strategy
Diversification
Strategy
Product Development
Strategy
High Price
Low Price
Low Quality High Quality
EXISTING NEW
Ideal
Brand X
Brand Y
Brand A
Brand B
Brand Z
Products
NEW EXISTING
Markets
BRANDING
The use of a name, trademark, symbol or combination
to identify a product and differentiate it from competition
BENEFITS OF BRANDING
Product identification and differentiation from
competition
Brand Equity the value of a brand as
determined by brand awareness, perceived
quality and brand loyalty among customers
Brand Personality the human characteristics a
brand takes on
BRAND STRATEGIES
Multiproduct branding – one name for all
products in a product class
Multibranding each product is given a distinct
name
Private branding a company manufactures
products but sells them under the brand name of
a wholesaler or retailer
Mixed branding a combination of private
branding and multibranding
TM
permacharts
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