1. Different marketing segments and contexts
Unit 1: Marketing
Different marketing segments and contexts
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2. Four different marketing contexts
Consumer markets
Organisational markets
Services
International markets
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3. 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
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4. 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
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5. Organisational markets
Industrial goods
Capital goods
Accessories
Raw materials
Components
Supplies
Business services
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6. 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
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7. 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
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8. 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)
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9. Services marketing
Characteristics of services marketing against product marketing:
- intangibility
- inseparability
- ownership
- heterogeneity/variability
- perishability
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10. 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
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11. 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
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12. 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
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13. 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
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14. 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
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15. 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
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16. Additional research/reading
Complete research/reading on slide 8
Ensure you research more into international markets and the EU
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