TOPIC 8 MARKETING PLAN

What Is Marketing?
Marketing is a process by which companies crea
te value for customers and build strong customer
relationships to capture value from customers in r
eturn
 Core Concepts

• Customer needs, wants, and demands

• Market offerings
• Value and satisfaction
• Exchanges and relationships
• Markets
Customer Needs, Wants, and Demands
• Market offerings are some combination of products,
services, information, or experiences offered to a ma
rket to satisfy a need or want

• Markets are the set of actual and potential buy

ers of a produc

• Marketing management is the art and science

of choosing target markets and building profita
ble relationships with them
MARKETING STRATEGY
Segmentation, Targeting and Positioning
Linking Customer Needs to Marketing Action

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TARGET MARKETING PROCESS

WHO TO SERVE ?
3 STEPS (STP):
1.Segmentation
2.Targeting
3.Positioning
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 STP
• Market segmentation: dividing market into distinct grou
ps which will require separate marketing mixes
• Target marketing: choosing which group(s) to appeal to
• Market positioning: creating a clear, distinctive position i
n the consumer’s mind relative to competition

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Consumer Market Segmentation

• Geographic: • Psychographic:
• Regions • Social class
• Size/density • Lifestyle
• Climate • Personality
• Demographic: • Behavioral:
• Age/generation • Occasions
• Gender • Benefits
• Family size/life-cycle • User status
• Income • Usage rate
• Occupation • Loyalty status
• Religion • Readiness state
• Ethnic origin • Attitude toward product

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 Geographic Segmentation
• Divide markets into different geographic units.

• Examples:
• World Region or Country: Middle East, South Asia or Pakistan, India etc.
• Country Region: Punjab, KPK, Sindh, etc.
• City or Metro Size: Lahore, Karachi.
• Population Density: rural, suburban, urban
• Climate: northern areas, southern, tropical

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 Demographic Segmentation
• Use Differences in:
• age, gender, family size, family life cycle, income, oc
cupation, education, race, and religion

• Most frequently used segmentation variable

• Ease of measurement and high availability.

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 Psychographic Segmentation

Psychographic segmentation People in the same demographic classifi

cation
divides a market into differe often have very different lifestyles and p
nt groups based on social cla ersonalities.
ss, lifestyle, or personality ch
aracteristics.

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 Behavioral Segmentation
• Occasion • Loyalty Status
• Special promotions & lab
• Nonusers, ex-users, pot
els for holidays.
ential users, first-time u
• Special products for spec sers, regular users.
ial occasions.

• Benefits Sought • Usage Rate

• Different segments desir • Light, medium, heavy.
e different benefits from
the same products.

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 Requirements for Effective Segmentation
• To be useful, market segments must be:
• Measurable:
• Size, purchasing power, and profiles can
be measured
• Accessible:
• Segments can be reached
• Substantial:
• Large enough to be profitable
“Lefties” are hard to ident
ify and measure, so few fir • Actionable:
ms target this segment.
• Programs can be developed to attract an
d serve the segments
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Target Marketing Strategies

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 Undifferentiated Marketing
(Mass Marketing)

• Appeals to a broad spectrum of people

• Efficient due to economies of scale
• Effective when most consumers have similar needs

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 Differentiated Marketing (Segment Marketing)
• Develops one or more products for each of
several customer groups with different pro
duct needs
• Coca-Cola (Coke, Sprite, Diet Coke, etc.)
• Procter & Gamble (Tide, Cheer, Gain, Dreft, etc.)
• Toyota (Camry, Corolla, Prius, Scion, etc.)

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 Concentrated Marketing
(Niche Marketing)
• Entails focusing efforts on offering one or
more products to a single segment
• Useful for smaller firms that do not have th
e resources to serve all markets
• Niches have very specialized interests

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 Micro Marketing
• Local Marketing
• Individual Marketing (one-to-one Marketing)

• Segments are so precisely defined that products are offe

red to exactly meet the needs of each individual
• Example: Levi’s Original Spin (custom) jeans, hair stylists

• Mass customization is a related approach in which a co

mpany modifies a basic good to meet the needs of an in
dividual
• Example: Proctor & Gamble’s products at Reflect.com Form Products t
o Be Sold into Groups

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 Positioning
The place a product occupies in consum
ers’ minds relative to competing prod
ucts.

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 Positioning Example

To (target segment and need) our (brand) is a (co

ncept) that (point-of-difference).

“To busy mobile professionals who need to al

ways be in the loop, Blackberry is a wireless co
nnectivity solution that allows you to stay con
nected to people and resources while on the g
o more easily and reliably than the competing
technologies.”

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 MARKETING OBJECTIVES
Vision

1. Description of something in the future

2. It is what the firm or a person would ultimately like to b
ecome

Mission
1. Mission is a statement which defines the role that an or
ganization plays in a society.
2. Purpose or reason for the organization’s existence 25
 MARKETING OBJECTIVES
Goals

1. Goals are short term (one year or less) milestones or bench

marks that organizations must achieve in order for long term lo
ng term objectives to be reached.
2. Goals should be measurable, quantitative, challenging, reali
stic, consistent and prioritized.

Objectives

Objectives state what is to be accomplished by when and sho

uld be quantified if possible

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 MARKETING OBJECTIVES

1. Marketing Objective is a clear statement of what the

marketer is going to accomplish in the marketplace.

2. The marketing objectives will be the guiding light th

at directs the marketer to plan and implement his a
ctivities to arrive at its targets.

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 MARKETING OBJECTIVES
Objectives must confirm to SMART criteria
E.g. “ Capture 5% of the detergent market in Colombo within the first year of o
peration”
Specific – stating exactly what has to be achieved: E.g. Capture
market of Colombo for detergents
Measurable- Quantified, so that you can measure with results
achieved: E.g. 5 % of the market share
Achievable – The objective has to be realistic in the given
circumstances. Achieving target of 5% of the Colombo market
may be possible
Relevant – The objective must relate to the corporate objectives:
E.g. Be a major player in the detergent market
Time frame – Deadlines and time frames for achieving the
objectives must be stated: E.g. within the first year of operation

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