AB219 Marketing Unit Four Tonight’s Focus: Segmentation & Targeting Products and Branding

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What do I have to do this week? Reading: Chapters 6 & 7. Discussion: Nestle & Segmentation Assignment: Umpqua Bank Simulation: 1 st one for the term. Note: No “Review” this week. Remember: 11:59 pm is the weekly deadline.

Discussion “Best Practices” Major Discussion Requirements include: 1st detailed original response (answers discussion questions) no later than Saturday of unit. EXCEED minimum 100 word initial post (usually will have to exceed this minimum to adequately respond to the question(s) asked.) Post on at least 3 different days. Respond least 2 of your classmates (These posts must also include the substance from our weekly focus and demonstrate your application of the material we are learning.) Minimum 3 total posts for each unit (1 st detailed original response, 2 peer responses). Remember: Relate Discussion to Reading & Weekly Focus. Interactive discussions, so please answer any questions that I or classmates may ask.

MKTG U4 Assignment Umpqua Bank

How to complete your Assignments or Research Papers in APA format :: A quick review! ::

Purpose of Assignments ~ Application, Application, Application ~ Why am I asked these questions? How do the questions relate to the Company I am researching? What real life examples, demonstrated by the Company I am focusing on, can I apply to the questions asked?

“Assignment & Research Project” Approach 1 st : Read the Assignment Overview - Watch the Video! - Visit Company Website 2 nd : Review Assignment “Instructions” & “Tips &Template/Success Strategy Guide” (Located by clicking on the Assignment icon when clicking on the Unit tab) 3 rd : Do your research to answer questions asked & write your paper. - The Unit Seminar Slides (doc sharing) will also help. (may need to use more than one seminar slide presentation if material from multiple weeks) - In answering the questions, you will be connecting the concepts from reading and applying it to the company you are researching. - Answer each question in the order asked! 4th: Additional Resources (located in Doc Sharing) - Outlined on the following page.

Important Resources in Doc Sharing Professor’s APA Guide Referencing in APA Guide Citing in APA Guide APA Assignment Example (GE & A level work) The above have been put together to answer most of your questions on how to complete your written assignments and research projects in APA format.

Complete Assignments in Style! APA Writing Style (see 4 doc sharing examples) - Formatting Standards: - 1” Margins, Times New Roman, 12 Point Font, Double Spacing, No extra spaces between the paragraphs (just will indent when start a new paragraph). - Submitted in Microsoft Word 2003 or higher format - Assignment should include: - A separate Title Page - Approximately 3 – 4 response pages with cited facts & stats that link to your reference page. - At least 3 citations within the paper itself that ties to the references on your reference page. - A separate Reference Page least 3 reference sources Submit Assignment to Dropbox (Save as YourNameAssignment) - Example: DavidButlerU4Assignment

Need more Help with APA Style! Writing Center (Excellent Resource) - Go to the center when initially log into Kaplan Shell. - APA Writing Workshops - Live Tutors to help you!

Assignment Paper “Response” Includes: 1 st : Brief Introduction (3-5 Sentences) 2 nd : Substantially addresses the questions asked. (in order asked) - least 3 cited facts & stats inserted that you found while doing your research. 3 rd : Brief Conclusion (3 – 5 sentences that sums up what you wrote about) Note: This is for the approximately 2 -3 page paper response section of your paper.

Umpqua Bank Assignment Questions 1.Identify five cultural, social, personal or psychological characteristics (shown in Chapter 5, Figure 5.2) that would affect a person becoming a customer of Umpqua Bank. 2.Show how a consumer would use the five stages of the consumer buying process in making the decision on whether to become a customer of Umpqua Bank. 3.Describe the ways that Umpqua Bank sets themselves apart from other banks with regard to the four special characteristics of services. 4.Explain how the five links in the service-profit chain works at Umpqua Bank. Provide specific examples from the video or the Umpqua Bank website in your response. NOTE: You will respond to each question, in the order asked, and simply indent when starting a new paragraph within the response section of your paper.

Example of Citing Material Cultural forces are the influences in a society and its culture(s) that bring about changes in attitudes, beliefs, norms, customs, and lifestyles (Armstrong & Kotler, 2010). or The steps of the consumer buying decision process includes …………… (Armstrong & Kotler, 2010). The first step is ……… and this step is exemplified when a consumer determines they have a need for ……… “Reference” would then be setup on the Reference Page as follows: Armstrong, G., Kotler, P. (2010). Marketing: An Introduction, Revised Global 10 th Edition. (pg. 45,157,162). Upper Saddle River: Pearson Education.

Reference Page References Armstrong, G., Kotler, P. (2010). Marketing: An Introduction, Revised Global 10 th Edition. (45,57,62). Upper Saddle River: Pearson Education. General Electric (2010). GE.com, Retrieved from General Electric Video. (n.d.) Retrieved from MT219/lextant.wmv Note: At least 3 APA formatted references including our textbook, the company website and at least one other research source.

Learn from Past Student Mistakes! No bullet point lists No 2 -3 sentence responses Do not include the numbered questions in final submission. Yes to a separate Title the beginning of the paper. Yes to a separate Reference Page as the last page of the paper. least 3 APA formatted References on this page) Yes least 3 citations within the paper itself. (i.e. a sentence or two ……… facts, stats or definitions …… that you found in research and supports your writing)

Plagiarism Avoid an issue with plagiarism and don’t cut & paste entire paragraphs into your assignment paper. When citing, you will typically “not” paste an entire paragraph of someone else’s work and expect it to be taken as your original response to any question. Citing will typically consist of bringing in a sentence or two that would back up your writing with stats or facts or a definition. TURNITIN used if plagiarism suspected and Kaplan Plagiarism policy will be followed if confirmed.

To Dropbox or Not to Dropbox? Save as: YourNameAssignment - Example: DavidButlerU4Assignment Submit assignment to “UNIT” Assignment Basket.”

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Review of Unit 3 How did Unit 3 go? Questions or concerns? Professor’s Suggestion: Pay particular attention to the concepts of Segmentation ………… it is the core of your Unit 6 Research Project! Questions?

Segmentation

Customer Driven Marketing Strategy Four stage process that 1) segments, 2) targets, 3) differentiates and 4) positions a product. 1 st : Segmentation - Basic Process: Heterogeneous Market  Segmentation  Homogeneous Sub-Markets. 2 nd : Targeting - Selecting the best segments to focus on. 3 rd : Differentiating - Create unique benefits for target segments. 4 th : Positioning - Placing product into customer’s minds compared to competition.

Target Market Segmentation 1.Identify appropriate strategy 2.Determine segmentation variables 3.Develop segment variables 4.Evaluate segments 5.Select specific segments

Major Segmentation Strategies Undifferentiated Single product & single strategy for entire market Requires homogeneous market. Broadly based segment = most of the population. Concentrated Single segment, one strategy. Major advantages include specialization and the ability to compete. Major disadvantage = “all eggs in one basket.” Differentiated Two or more segments each with its own marketing mix. Major advantages include potentially higher sales and absorption of excess production capacity. Major disadvantage = cost. Micromarketing products tailored to individuals or smaller local areas.

Criteria for Effective Segmentation 1. Measurable - Must be quantifiable 2. Accessible - You must be able to reach them 3. Substantial - Must be large enough so company benefits 4. Differentiable - Segment must respond differently 5. Actionable - Company must be capable of marketing to identified segments

Which Segment Variables to Use? Marketers are not likely to use just one segment variable Market segments often combine multiple variables together to create a desirable target segment Which variables might be combined to create a segment for- -Microsoft Office? -Apple Computers?

Segmentation Table is the Key!

Demographic Variables ~ closely related to needs and measurable. Age Gender Race Ethnicity Income Education Occupation Family size Family life cycle Religion Social class Sexual orientation

Geographic Variables Climate Terrain City size Urban/rural values Market Density Geo-demographic Segmentation Micromarketing

Psychographic Variables Social class Lifestyle -Achievers -Strivers -Survivors Personality -Compulsive -Romantic -Authoritarian -Enthusiastic

Behavioristic Variables Volume Usage End Use Brand Loyalty Price Sensitivity Benefit Expectations! (Touch on this on the next slide)

Behavioristic Variables (cont.) “Benefit Characteristic” Most Powerful Characteristic! Underlies all other segmentation variables. Relates most directly to consumer desires. Is “how” the product benefits the consumer directly.

Products & Services & Branding

Positioning Where the product lives in the mind of the consumer as it relates to the competition (See Figure 6.4 in ebook) Identify and select appropriate competitive advantages for the product Combine competitive advantages to develop an overall positioning strategy -More for More -More for the same -More for less -The same for less -Less for much less

What is a Product? Anything that is offered to a market to fulfill a need or want! Can be a: -good -service -idea -place -person

Classifying Consumer Products Convenience Goods Relatively inexpensive, frequently purchased items with many substitutes. Don’t confuse with a convenience store. Shopping Goods Items for which buyers are willing to spend considerable effort to compare and purchase. Don’t confuse with what you buy when just shopping. Specialty Goods Products with unique characteristics for which consumers are willing to expend effort. Unsought Goods Items people do not think about buying. Many times due to emergency needs. Also, many impulse items.

Product Line and Mix Concepts Product line – group of closely related items. Product item – specific version of product. Product mix – total group of products made by company. Think about Proctor and Gamble. Product mix width – total number of lines offered. Think of different types of Dove. Product mix depth – average number of different items offered in each line. Think shampoos

Services Intangible products involving a deed, performance, or effort that cannot be physically possessed such as: -Haircuts -Concerts -Tax preparation -Annual doctors’ physicals

Nature of Services Intangibility - services cannot be touched, seen, felt, or heard prior to purchase. Inseparability - services cannot be separated from their providers. Variability - services are different depending on the provider. Perishability - yesterday’s hotel room cannot be offered at a discount today. Let’s look at these individually on the following slides!

Issues related to Service Intangibility Difficult for customers to evaluate No physical possession Difficult to advertise and display Pricing is problematical and subjective Service process not always protected by patents

Issues related to Service Inseparability Does not allow for mass production Customer participation required Other customers can affect process Difficult to distribute

Issues related to Service Variability Quality difficult to control Standardization is a problem Services vary from provider to provider Services can vary from the same provider Reputation is crucial Franchises try to emphasize service homogeneity Reason for grading rubrics

Issues related to Service Perishability Services cannot be stored or inventoried Unused capacity is lost forever Demand may be time sensitive Balancing supply and demand is difficult

Branding - Brand Equity The marketing and financial value associated with a brand’s strength in a market. This includes the value of the brand based on the following attributes: brand name awareness brand loyalty perceived brand quality brand associations

Selecting a Brand Name Easy to pronounce, spell and remember Trademarkable Distinctive Conveys brand benefits Travels globally- Big concern today

Types of Brands National (Manufacturer’s) brands: These are brands, such as Tide and Crest, are owned and produced by the manufacturer. Store (Private) brands The brands themselves are owned by resellers such as Wal-Mart, Rite-Aid, or various grocery stores, but the actual products themselves are produced by manufacturers. Brand Licensing A company gives others permission to use their brand name for a fee.

Brand Development Line extensions New forms, sizes, fragrances, etc are created in existing product line. Brand extensions Use of existing brand on a new category, such as extending from a rock singer into acting. Multibrands Use of different brand names by one company. Examples: Nestle or Proctor and Gamble do this with many brands under them. New Brands Creating entirely new brands

What do I have to do this week? Reading: Chapters 6 & 7. Discussion: Nestle & Segmentation Assignment: Umpqua Bank Simulation: 1 st one for the term. Note: No “Review” this week. Remember: 11:59 pm is the weekly deadline.

Any Questions? Thank you for attending! See you next week.... Same Place, Same Time!