1 Marketing-Chapter 9 The Marketing Strategy Newsline: Is EVERYONE ever your target market? Let’s read Newsline on p. 218 Why was Croemers able to succeed for years without a marketing plan, but suddenly lost its customer base? How is it possible for Croemers to increase profits when discount stores were taking so much of its business?

2 Marketing-Chapter 9 The Marketing Strategy The Marketing Strategy Chapter 9

3 Marketing-Chapter 9 The Marketing Strategy Developing a Market Strategy Lesson 9.1

Marketing-Chapter 9 The Marketing Strategy4 Marketing Matters p. 220 Effective marketing is more than advertising and selling. At the same time, effective marketing is more than just the seven marketing functions. Effective marketing develops satisfying exchange relationships between businesses and their customers. In order to accomplish that, businesses need to develop a marketing strategy. The process begins by identifying a target market or markets, first by differentiating various segments, then by choosing a target that offers the best marketing opportunity. Make a list of five wants or needs you have that are different than most of your family members, friends and classmates. For each, name a product or service that satisfies it.

Marketing-Chapter 9 The Marketing Strategy5 Differentiating Market Segments Marketing Strategy –a–activities planned/coordinated to achieve a goal Significant differences –M–Marketing to graduates has differences (preschool, kindergarten, high school, college) Common characteristics –S–Segment: people in a market have similar characteristics (most important characteristics are needs and wants, another is demographics: age, gender, income, marital status, etc.)

6 Marketing-Chapter 9 The Marketing Strategy Let’s take a look at Figure This p. 222 All Income Is Not Equal

Marketing-Chapter 9 The Marketing Strategy7 All Income Is Not Equal discretionary spending=amount of income left after paying taxes and basic living expenses Based on the figures in the article, how much do people in each group have available for discretionary purchases? How does their discretionary spending ability correlate with their income level?

Marketing-Chapter 9 The Marketing Strategy8 Selecting Target Markets target market clearly identified segment of the market to which the company wants to appeal. 1.people must have common needs and respond similarly to marketing activities 2.people OUTSIDE market need enough differences from those in the market 3.have adequate information about people in the market 4.information on needs and how they make purchasing decisions

9 Marketing-Chapter 9 The Marketing Strategy Have you ever bought a product that was bad or broken? Assessing Marketing Mixes Lesson 9.2

Marketing-Chapter 9 The Marketing Strategy10 Fine-Tuning the Product basic product product features options associated services brand name/image guarantee/warranty packaging uses See figure 9-3 for a computer example

Marketing-Chapter 9 The Marketing Strategy11 Distribution, Price and Promotion Distribution: marketing mix element that facilitates the physical exchange of products and services between businesses and their customers –Where will the customers best be able to obtain the product? –Where will customers use the product? –Any requirements to ship/display product?

Marketing-Chapter 9 The Marketing Strategy12 Distribution, Price and Promotion Distribution Price: the amount a buyer pays as well as the methods of increasing the value of the product to the customers –Does business want to increase sales or enhance the image? –Should it be based on cost, competitors or customer willingness to pay the price?

Marketing-Chapter 9 The Marketing Strategy13 Distribution, Price and Promotion Distribution Price Promotion: methods and information communicated to customers to encourage purchases and increase customer satisfaction –W–Where are customers in the decision-making process? –W–Which promotion will be most effective? –H–How much money is needed to promote? BOGO

Marketing-Chapter 9 The Marketing Strategy14 The Product Life Cycle Introduction new and different (no competitors) Growth sales and competitors enter market, prices at wide range Maturity sales peak, profits start to decline, competition intense Decline product no longer satisfying (need to find new uses, etc.)

Marketing-Chapter 9 The Marketing Strategy15 Stages in a Life Cycle Sales Profits IntroductionGrowthMaturityDecline Name a product for each stage of the life cycle…………………………….

Marketing-Chapter 9 The Marketing Strategy16 Using the Life Cycle Three factors to consider when planning your marketing mix: 1.the type of competition 2.the purchase behavior of your consumer 3.the strengths and weaknesses of your business

17 Marketing-Chapter 9 The Marketing Strategy Analyzing Product Purchases Lesson 9.3

Marketing-Chapter 9 The Marketing Strategy18 Purchase Classification System Based on 2 factors: 1.Importance of the purchase to the consumer 2.Willingness of the consumer to shop and compare products before making the purchase

Marketing-Chapter 9 The Marketing Strategy19 Purchase Classification System Convenience Goods Staple goods-regular/routine purchases Impulse goods-spur of the moment (Target) Emergency goods-urgent need (run out of gas) Shopping Goods Most of major purchases-typically more expensive Attribute-based goods (computer, electronics) Price-based goods (tires, toothbrush)

Marketing-Chapter 9 The Marketing Strategy20 Purchase Classification System Convenience Goods (staple, impulse, emergency) Shopping Goods (attribute, price) Specialty Goods strong brand loyalty due to high satisfaction (hard to find anyway) Unsought Goods you don’t want to buy (life insurance, hospital care, hearing aid)

21 Marketing-Chapter 9 The Marketing Strategy Planning for Marketing “People don’t plan to fail, they fail to plan.” Lesson 9.4

Marketing-Chapter 9 The Marketing Strategy22 What kind of purchases are these? Convenience Goods (staple, impulse, emergency) Shopping Goods (attribute, price) Specialty Goods Unsought Goods

Marketing-Chapter 9 The Marketing Strategy23 Preparing for Planning (sounds redundant, doesn’t it?) Plan to plan (get a time frame) Plans are built with information –Performance of the company –Performance of competing companies –Changes outside company –Info. about current/prospective customers Gathering needed information

24 Marketing-Chapter 9 The Marketing Strategy Developing a Marketing Plan p. 245 Lesson 9.5

Marketing-Chapter 9 The Marketing Strategy25 The Marketing Plan Analyze the Market –purpose and mission Why does the business exist? Who is it interested in serving? –current markets and strategies Who are current customers? What are their needs/wants? –primary competitors What other businesses do the customers consider? What do they like/dislike about the competition? –external environment analysis Is the economy strong? Are costs in/decreasing? What is the forecast? –internal analysis What makes us different? What are our plans?

Marketing-Chapter 9 The Marketing Strategy26 The Marketing Plan Analyze the Market Decide on a Strategy –determine goals and outcomes –define target market –specify the market mix –develop a positioning statement

Marketing-Chapter 9 The Marketing Strategy27 The Marketing Plan Analyze the Market Decide on a Strategy Plan for Action –activity schedule –evaluation procedures

28 Marketing-Chapter 9 The Marketing Strategy The End of Chapter 9