1. Marketing
Mini Lesson for IA

2. Market Segmentation
A segment refers to a sub-group of consumers with similar characteristics in a given market
Market segmentation is the process of dividing the market into smaller or distinct groups to meet their needs
Types of segmentation:
Demographic (age, gender, religion, family characteristics, ethnic grouping)
Geographic (regions in a country, climatic conditions)
Psychographic (social and economic status, values)

3. Advantages of Segmentation
Segmentation helps businesses identify existing gaps and new opportunities
Designing products for a specific group of consumers can increase sales
Segmentation minimizes waste of resources
Businesses can diversify and spread their risk by differentiating products

4. Targeting
A target market consists of a group of consumers with common needs or wants that a business decides to serve or sell to
Targeting can be carried out in the following ways:
Undifferentiated marketing (aka mass marketing)
Differentiated marketing (aka segmented marketing)
Concentrated marketing (aka niche marketing)

5. 4 P’s of the Marketing Mix
Product
The good or service that is offered in the market
Aim to satisfy needs and wants of consumers
Price
The amount consumers are charged for a product
Indicates the value consumers perceive the product to have
Promotion
The ways in which consumers are informed about and persuaded to purchase product
Place
The product’s location or channels of distribution used

6. An appropriate marketing mix
Inappropriate examples:
Advertising an expensive car in a colorful children’s magazine
Selling an exclusive perfume in a stall where second-hand clothes are sold
A real-estate agent attempting to sell houses in a vegetable market
An appropriate marketing mix must:
Be well coordinated
Be clear, focused, and not abstract or ambiguous
Consider the market it is aiming to sell the product to
Look into the degree of competition that its product faces
Target the right consumer

7. Product – Product Life Cycle
Shows the course that a product takes from its development to its decline in the market
Six stages:
Development
Introduction
Growth
Maturity
Saturation
Decline

9. Product – BCG Matrix

10. BCG Matrix for Adidas

11. Ansoff Matrix
Penetration: When marketers try to sell the existing product to the existing customers. It can be achieved in multiple ways. For example, by changing pricing, by adding minor features (new and improved!), changing the packaging (shampoo sachets), or highlighting alternative uses. Product Development: McDonald's introduced salads in their outlets in order to retain its existing customers, many of whom were becoming more health conscious.Salads are exactly opposite of what McDonald's is known for! However, regulatory pressures, changing consumer behavior, and negative media coverage forced them to introduce more healthy choices on the menu. Market Development: Introducing an existing product in different markets is perhaps one of the most used strategies to extract full benefit of a successful product. A very common example is entering different geographical areas nationally and internationally. Diversification: When marketers introduce a totally new product to a completely new market, they engage in diversification. I think that iPod was perhaps one of the most successful diversification ever. With its launch Apple targeted a very large customer group, very different from its traditional smaller cult-like following.

12. Ansoff Matrix for Coca Cola

13. Price – Pricing Strategies
Cost-plus pricing (mark-up pricing)
Penetration pricing
Price skimming
Psychological pricing
Price discrimination
Competitive pricing

14. Promotion – Promotional Strategies
Above-the-line promotion
Advertising
Informative advertising
Persuasive advertising
Reassuring advertising
Below-the-line promotion
Direct marketing
Personal selling
Public relations
Sales promotions

15. Place – Distribution Channels
Types of distribution channels:
Zero intermediary channel
One intermediary channel
Two intermediaries channel

16. Unique Selling Point (or Proposition)
This is a feature of a product that differentiates it from other competing products in the market.
Your USP can come from any area of the marketing mix:
Product: Apple
Price: Walmart
Place: Coca Cola
Promotion: Nike

17. Product Positioning (customer perception)
Product positioning involves analyzing how consumers define or perceive a product compared to other products in the market
An effective tool they could use in planning their positioning strategies is a position or perception map
Importance of a position map:
Helps a company to establish which are its close competitors and threats
Helps identify gaps or opportunities in the market
Simple and quick way to present research data
Helps in targeting specific market segments

18. Product Positioning: Chocolates

19. Product Positioning: Cars