Section ONE Introduction to Marketing, STP and the 4 Ps

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Section ONEIntroduction to Marketing,STP and
the 4 Ps
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THIS IS WHAT MARKETING DOES!!
Analyze Needs
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The Basic Aim of Marketing is to provide UTILITY
But

• Else nobody buys your product

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Five Types of Utility and How They Are Provided
Provided by production with guidance of marketing
Provided by marketing
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STP and the 4Ps
4 Ps
Market
Segmentation
Targeting
Positioning
Customer
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STP and the 4Ps
Segmentation

• Identify Segmentation Variables
• Needs from product looks, battery life etc.
• Develop profiles of resulting segments
• Income
• Gender
• Family Size
• Etc.

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The five requirements of Segments

• Identifiable the differentiating attributes of
  the segments must be measurable so that they can
  be identified.
• Accessible the segments must be reachable
  through communication and distribution channels.
• Substantial the segments should be sufficiently
  large to justify the resources required to target
  them.
• Unique needs to justify separate offerings, the
  segments must respond differently to the
  different marketing mixes.
• Durable the segments should be relatively stable
  to minimize the cost of frequent changes.

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Good Segments

• A good market segmentation will result in segment
  members that are
• internally homogenous
• externally heterogeneous
• that is, as similar as possible within the
  segment, and as different as possible between
  segments.

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Types of Segmentation

• Marketers have identified 63 types of
  segmentations (and counting!!!)
• However there are just four that are used a lot
• Geographic Segmentation
• Demographic Segmentation
• Psychographic Segmentation
• Behavioral Segmentation

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Market Segmentation Defines Possible Target
Markets
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An Attribute

• Any characteristic of a product!!
• For an MP3 player.
• Size
• Weight
• Memory
• Battery Life
• Sound Quality
• Looks
• Price
• Radio
• Color
• Video Capability
• Photo Capability
• Etc.

Product ? Attributes
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Target Marketers Aim at Specific Targets
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Segmenting vs. Combining
Combiners Try to Satisfy Pretty Well
Too Much Combining Is Risky
Key Issues
Segment or Combine?
Segmenters Try to Satisfy Very Well
Segmenting May Produce Bigger Sales
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Segmentation and Advertising (San Diego Zoo)
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STP and the 4Ps
Targeting

• Evaluate attractiveness of each segment
• Select the target segment(s)

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STP and the 4Ps
Positioning
Identify Marketing Mix for each segment
4Ps
Product
Price
Place
Promotion
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An Example of Positioning
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The Place Element of the Marketing Mix
Examples of Channels of Distribution
Del
Procter
AOL
Nissan
Monte
Gamble
Wholesaler
Wholesaler
Wholesaler
Retailer
Retailer
Retailer
Consumer
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The Promotion Element of the Marketing Mix
Personal Selling
Advertising
Publicity
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The Marketing Plan Guides Implementation and
Control
Other Marketing Plans
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The Marketing Plan

• Marketing plan a written statement of a
  marketing strategy and the time related details
  for carrying out the strategy.
• Spells out, in detail
• What marketing mix is to be offered
• To what target market
• For how long
• What resources (costs) are needed at what rate
• What results are expected
• What control procedures will be used.

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Types of Opportunities to Pursue
Present products
New products
markets
Present
New
markets