Marketing the Core

What is segmentation?
The process of dividing the total market for a good or service into several smaller, internally homogeneous groups.
What are the variables used to segment consumer markets?
-Intuition based on experience and judgment.
-Mimicking competitors and earlier market entrants.
-Performing a structured analysis that includes:
Identifying the current and potential wants that exist within a market.
Identifying the characteristics that distinguish segments.
-Finally, determining who has each want.
What are the conditions required for a segment to be effective/desirable?
1) Potential for Increased Profit
2) Similarity of Needs of Buyers within a Segment e.g. Ad media used / product features wanted
3) Difference of Needs of Buyers Among Segments
4) Potential of a Marketing Action to Reach a Segment
5) Simplicity and Cost of Identifying & Assigning Buyers to Segments
What is targeting? Why is it important?
Grouping specific groups of potential consumers towards which an organization directs its marketing program
What is positioning? Why is it important?
-The way a firm’s product, brand, or organization is viewed relative to the competition.
-The essence of positioning is sacrifice. You must be willing to give up something in order to establish that unique position.
How do the terms positioning, target market, marketing strategy and
marketing mix relate to one another?
Positioning is needed to create target markets. The target market is the basic part of the marketing strategy and the marketing strategy is based on the marketing mix.
Outline the stages in strategic and market planning
-(Mission: assumed already set since long term)
-Situation Analysis
-Goals or Objectives convert the mission into targeted levels of performance to be achieved.
-Strategies are how goals will be achieved.
-Budgets
-Controls are early warning signs or checks plan is on target.
Explain with the tools used for a situation analysis
-Customers
-Competencies are an organization’s special capabilities, including skills, technologies, and resources.
-A Competitive advantage is a unique strength relative to competitors.
-Benchmarking is discovering how others do something better than your own firm so you can imitate or leapfrog competition.
-Competitors
Discuss using an appropriate example, the four I’s of service?
Intangibility – cannot be touched, seen, heard, tasted or felt
Inconsistency – less standardised
Inseparability – Produced and consumed simultaneously
Inventory – characteristics of services that prevent them from being stored
Intangibility
Cannot be touched, seen, heard, tasted or felt
Inconsistency
Less standardised
Inseparability
Produced and consumed simultaneously
Inventory
Characteristics of services that prevent them from being stored
What are three ways to classify services?
-Delivery by people or equipment
-Profit or Non Profit
-Government Sponsored or not
What is Capacity Management?
Most services have a limited capacity due to the inseparability of a service from its provider and their perishable nature. A good example of this is an airline service. An unsold seat on a flight cannot be reused on the next flight. This unsold seat is a pure profit loss for the company. Capacity Management is when the company tries to integrate the service with efforts to influence consumer demand.
What are the Most Important Current Demographic Trends?
Two of the most prevalent demographic changes that are currently taking place are ageing and declining populations and the end of the traditional family.
Explain With Examples how Global Warming Might Change Marketing?
Thanks to awareness of global warming, many businesses are moving towards becoming green to appear environmentally friendly to consumers such as Virgins carbon offset strategies. Environmentally friendly products like water tanks, energy saving devices, alternative energy products are also being pushed harder by marketers. The tourism industry may have to change or diversify, particularly things like ski resorts and Great Barrier Reef tourism. Companies are focusing on social responsibility in marketing strategies. Marketers could attempt to spread awareness of environmental problems to help push green products.
What are some of the Key Racial and Ethnic Diversity Trends in Australia?
Australia is becoming more and more diverse. Currently, 43 percent were born overseas or have at least 1 parent born overseas. Asian population is expected to become 10 percent of Australia by 2030. 15 percent of Australian’s speak a non English language at home. With Australia becoming more diverse every year, the food industry is seeing a huge impact. Australians spend $6 billion on ethnic food a year and the average person between 18-24 eats ethnic food out 5 times a month.
What mode of entry could a company follow if it has no previous experience in global marketing?
A company that has no previous experience in global marketing could enter using indirect exporting or joint venture with a local company. Indirect exporting would enable to company to have an intermediary selling on their behalf, and joint venture would mean that a local company would be joining with them to share their local knowledge.“
Describe different types of firms that enter and compete in global markets.
There are three different types of firms that enter and compete in global markets. The first is international firms which markets its existing products and services in other countries the same way it does at home. The second type is multinational firms which hold the view that the world consists of unique regions and countries and therefore markets to each region or country differently. The third type is transnational firms which view the world as one market and emphasises universal consumer needs and wants more than differences among cultures.
Explain the differentce between a global marketing strategy and a multidomestic marketing strategy
A multidomestic marking strategy is when multinational firms offer as many different product variations, brand names and advertising programs as countries in which they do business. (Elements of the product change for each country). A global marketing strategy is the practice of standardising marketing activities when there are cultural similarities and adapting them when cultures differ.
Exporting
To produce the goods in one country and sell them in another country. This entry option allows a company to make the least number of changes in terms of its product, its organisation and even its corporate goals.
Licensing
a company offers the right to a trademark, patent, trade secret or other similarly valued items of intellectual property in return for a royalty or a fee. This is low risk for the licensor and virtually no cost. The disadvantage is the licensor gives up control of its product.
Joint venture
a foreign company and a local firm invest together to create a local business, sharing ownership, control and profits of the new company.
Direct investment
A domestic firm actually invests in and owns a foreign subsidiary or division.
IMC (Integrated Marketing Communications)
The concept of designing marketing communications programs that co-ordinate all promotional activities to provide a consistent message across all audiences.

Advertising, Sales Promotion, Public Relations & Personal Selling.

Advertising
Advertising is any paid form of non-personal communication about an organisation, good, service or idea by an identified sponsor.
Sales Promotion
Sales tools, such as coupons, sweepstakes and samples, used to support a company’s advertising and personal selling efforts directed to ultimate consumers.
Public Relations
Method of obtaining non-personal presentation of an organisation, good or service without direct cost.
Personal Selling
The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.
Product
A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organisations, and ideas.
example of a service product
Mechanic
durable product
Fridge
Non-durable Product
bread
Is the product lifecycle useful?
The product life cycle is an important concept in marketing. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage. Some continue to grow and others rise and fall.
Why has private branding become more important?
A company uses private branding when it manufactures products but sells them under the brand name of a wholesaler or retailer. Private branding has become more important because it typically produces higher profits for manufacturers and resellers.
Transactional
This function involves adding value to the distribution channel by bringing in the intermediary’s resources to establish market linkages and customer contacts. The intermediary either directly undertakes the marketing and sales function or helps to establish buyer-seller relationships by serving as a link between the manufacturer and the retailer.
Logistical
This function involves the physical distribution of goods. It involves sorting and storing supplies at locations within the reach of the end customer. It also breaks up the bulk production of the manufacturer into smaller portions and may include the transportation of smaller shipments to intermediaries or retailers further down the channel of distribution.
Facilitating
Although often confused with logistics, the facilitating functions of intermediaries supplement the entire marketing flow of the product and are separate from logistics. The facilitating functions include financially supporting the marketing chain by investing in storage capabilities. They may include facilitating sales by helping the consumer buy even when he or she does not have cash (through financing plans, purchase agreements, etc.).
franchising
A franchise is a business system in which one business gives another business the rights to sell its products and to operate under its brand name.
Intensive Distribution
In intensive distribution, the product is sold to as many appropriate retailers or wholesalers as possible. Intensive distribution is appropriate for products such as chewing gum, candy bars, soft drinks, bread, film, and cigarettes where the primary factor influencing the purchase decision is convenience.
Selective Distribution
In selective distribution, the number of outlets that may carry a product is limited, but not to the extent of exclusive dealing. By carefully selecting wholesalers or retailers, the manufacturer can concentrate on potentially profitable accounts and develop solid working relationships to ensure that the product is properly merchandised. Selective distribution may be used for product categories such as clothing, appliances, televisions, stereo equipment, home furnishings, and sports equipment.
Exclusive Distribution
When a single outlet is given an exclusive franchise to sell the product in a geographic area, the arrangement is referred to as exclusive distribution. Products such as specially automobiles, some major appliances, certain brands of furniture, and lines of clothing that enjoy a high degree of brand loyally are likely to be distributed on an exclusive basis.
Push Promotional Strategy
A push promotional strategy involves taking the product directly to the customer via whatever means to ensure the customer is aware of your brand at the point of purchase. process.
Pull Promotional Strategy
A pull strategy involves motivating customers to seek out your brand in an active process.
What is Just-In-Time (JIT) inventory?
JIT, or just in time, inventory is an inventory management strategy that is aimed at monitoring the inventory process in such a manner as to minimize the costs associated with inventory control and maintenance. To a great degree, a just-in-time inventory process relies on the efficient monitoring of the usage of materials in the production of goods and ordering replacement goods that arrive shortly before they are needed. This simple strategy helps to prevent incurring the costs associated with carrying large inventories of raw materials at any given point in time.
Cross Docking
Cross-docking is a practice in logistics of unloading materials from an incoming semi-trailer truck or railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with little or no storage in between. This may be done to change type of conveyance, to sort material intended for different destinations, or to combine material from different origins into transport vehicles (or containers) with the same, or similar destination.
Channel Conflict
Channel conflict is a situation in which channel partners have to compete against one another or the vendor’s internal sales department. Channel conflict can cost a company and its partner’s money as partners try to undercut one another. It can also lower morale within the channel and cause some partners to consider other vendors.
How does logistics management relate to marketing strategy?
Logistics management is the practice of organising the cost-effective flow of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption to satisfy customer requirements. The goals to be achieved by a firm’s marketing strategy determine whether its logistics needs to be more responsive or more efficient in meeting customer requirements. This relates to marketing strategy because poor management of logistics can do serious damage to a marketing strategy.