Different marketing segments and contexts Unit 1: Marketing Different marketing segments and contexts 16/06/2018

Four different marketing contexts Consumer markets Organisational markets Services International markets 16/06/2018

Consumer markets FMCG (fast moving consumer goods) are good that are bought frequently (newspapers, toothpaste, bread etc) Low priced and low risk purchases Often impulse buys Do not initiate a lot of brand loyalty; will buy what is available Do not rely on personal selling 16/06/2018

Consumer markets Consumer goods are sold directly to the end user to be used as packaged: - convenience goods - shopping goods - speciality goods - unsought goods Personal selling may be used in any of the above 16/06/2018

Organisational markets Industrial goods Capital goods Accessories Raw materials Components Supplies Business services 16/06/2018

Organisational markets Goods in this sector tend to be sold to use to make other products in primary, secondary, tertiary sectors Marketing must highlight benefits of products however packaging not important and distribution generally direct – will have a high element of advice and after sales services available and some products custom-made Price can be set as bulk buying deals/discounts and is more flexible/negotiable 16/06/2018

Organisational markets Promotion: the promotional mix is likely to emphasis personal selling as many industrial products need technical explanations. Media would be mainly trade journals and publications as well as direct mail and trade exhibitions Place: Distribution is generally direct between manufacturer and buyer 16/06/2018

Research 1 Read handout on differences between consumer and organisational markets Research non-profit making sector marketing, government markets and reseller markets (BPP book chpt 14) 16/06/2018

Services marketing Characteristics of services marketing against product marketing: - intangibility - inseparability - ownership - heterogeneity/variability - perishability 16/06/2018

Services marketing Marketing implications: - Need to focus customer attention on main benefit(s) of buying the service - Enhance and promote perceptions of the service and its quality/reliability - Staff need to be available when required whilst watching wage bills – predicting levels of demand 16/06/2018

Services marketing - Monitor customer reactions constantly to ascertain perceptions and maintain quality - Standardisation of service through clear objectives, quality controls and effective training The extended mix is particularly applicable to services marketing 16/06/2018

International markets An organisation will pursue international marketing for several reasons: - growth - economies of scale - international competition - national necessity - global demand for product/service - cheaper to manufacture overseas - higher profit margins overseas - enhance organisational image 16/06/2018

International markets Considerations before marketing aboard: - strategic issues - tactical issues - analysis of the opportunity (the 12 Cs) - market attractiveness - risks: political; business; currency; profit repatriation - structure choices 16/06/2018

International markets Globalisation: importing and exporting to increase global customers The EU: more free movement between member states (labour, goods, services) – standardisation of technical standards needed – HOWEVER, still areas where standardisation not yet achieved such as VAT, tax, prosperity, skills, infrastructures, social differences 16/06/2018

International markets Marketing mix considerations: - how to reach new customers abroad - suitability of UK products/services for wider markets – standardise or adapt? - distribution - scope for product development - how to price and promote appropriately 16/06/2018

Additional research/reading Complete research/reading on slide 8 Ensure you research more into international markets and the EU 16/06/2018