...TV Advertising Quotes Following from O’berry & Cavanaugh, Marketing Consultants McDonald's now devotes a third of its U.S. marketing budget to television, compared with two-thirds five years ago. For marketers, the evolution from mass to micromarketing is a fundamental change driven as much by necessity as opportunity. America today is a far more diverse and commercially self-indulgent society than it was in the heyday of the mass market. The country has atomized into countless market segments defined not only by demography, but by increasingly nuanced and insistent product preferences. "All the research we're doing tells us that the driver of demand going forward is all about products that are 'right for me,"' says David Martin, president of Interbrand Corp. "And that's ultimately about offering a degree of customization for all." At the same time, the almost-universal audience assembled long ago by network television and augmented by the other mass media is fragmenting at an accelerating rate. The mass media's decline is an old story in many respects; prime-time network ratings and newspaper circulation have been sliding since the 1970s. What's new is that the proliferation of digital and wireless communication channels is spreading the mass audience of yore ever-thinner across hundreds of narrowcast cable-TV and radio channels, thousands of specialized magazines, and millions of computer terminals, video-game consoles, personal digital assistants, and cell-phone...
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...CHAPTER 7 Discussing the Concepts 1. Briefly describe the four major steps in designing a customer-driven marketing strategy. a. Segmenting Consumer Markets which is to divide the total market into smaller segments. b. Targeting which is to select the segment or segments to enter. c. Differentiation which is to differentiate the market offering to create superior customer value. d. Positioning which is to position the market offering in the minds of target customers. 2. Name and describe the four major sets of variables that might be used in segmenting consumer markets. Which segmenting variables does Starbucks use? a. The four variables that segment and make it possible to identify consumer markets are defined below: A. Geographic segmentation: Consumer markets are identified based on their geographical unit of identification such as: nations, regions, states, counties, cities and neighborhoods. The ability to identify such geographic specifics allows a company to penetrate specific demographics for their particular marketing and advertising strategies; their strategies may target specific locales or more general markets in whole according to the determination of their needs and wants. B. Demographic segmentation: The most commonly utilized base and easiest to measure for identifying customer groups is demographic segmentation which correlates consumer needs, wants and usage/frequency...
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...interest in the offering. These days, customers seem to be more particular about their preferences, so it is virtually impossible to cater to every customer’s individual conditions; therefore, undifferentiated targeting is not a good idea in most cases. A differentiated segmentation strategy is a strategy in which a firm targets several market segments, employing a separate and distinct offering for each segment. In contrast, a concentrated segmentation strategy involves selecting a single, primary target market segment and therefore means that the firm will focus all of its efforts and resources on creating and providing a product or service that satisfies the needs and wants of that particular target market. In even more contrast, micromarketing is the most extreme approach to segmentation. With this strategy, products and services are specifically tailored to suit the needs and preferences of individual customers. An advantage of undifferentiated...
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...Defining Marketing Frank Robles MKT/421 February, 17 2013 Pareesa Navid Defining Marketing Marketing is traditionally the means by which an organization communicates to, connects with, and engages its target audience to convey the value of and ultimately sell its products and services. However, since the emergence of digital media, in particular social media and technology innovations, it has increasingly become more about companies building deeper, more meaningful and lasting relationships with the people that they want to buy their products and services. The ever-increasingly fragmented world of media complicates marketers’ ability connect and, at the same, time presents incredible opportunity to forge new territory (Barile, 2013). Majority of individuals think that marketing solely consist of sales and advertising, when realistically sales and marketing are fragments of marketing but do not define the whole aspect of marketing. This paper will have a personal definition of marketing as well as two definitions from other sources. Finally, conclude the definition of marketing. This writer’s perspective was unclear when differentiating the definition between sales and marketing, the roles of these two terms were confusing and were classified as being the same thing. For example, when a person is job hunting on certain websites such as: Craglist, Jobs.com, Hot Jobs, etc. Many of the sales positions were classified under the category of marketing, so with further...
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...concern of the environment. There are many segmentation bases in business market which includes company size, industry, operating practices, culture and geographic. This report will further analyse on cost based pricing, a type of pricing strategy currently used by Eco- Shack developer. This strategy is commonly used by smaller firms because it is easy to be implemented and allows firms to estimate their profit margin more accurately. However, this strategy does not respond to market change, thus we can say that the price of Eco- Shack is less competitive compared to competitors’ price. To solve the problems stated above, this report had suggested some marketing strategies that can be applied by Doug and Paul. Firstly, they can use micromarketing –a technique that involves tailoring and customising services to individual needs (Verdino 2010). We also recommend that they should...
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...Practice Lecture 7A: Market Targeting and Positioning Objectives ▪Objective 3: Explain how companies identify attractive market segments and choose a markettargeting strategy. ▪Objective 4: Discuss how companies differentiate and position their products for maximum competitive advantage. Market Targeting © Commonwealth of Australia, reproduced by permission Evaluating Market Segments Three factors to be looked at: Market Targeting Selecting Target Market Segments A target market is a set of buyers who share common needs or characteristics that the company decides to serve. Four Basic Market Targeting Strategies Undifferentiated Marketing Differentiated Marketing Concentrated Marketing Micromarketing Market Targeting Strategies Market Targeting Strategy Undifferentiated • Undifferentiated marketing targets the whole market with one offer. • Mass marketing • Focuses on common needs rather than what’s different Differentiated • Differentiated marketing targets several different market segments and designs separate offers for each. • Goal is to achieve higher sales and stronger position • More expensive than undifferentiated marketing Concentrated • • • • Micro-Marketing Targets a large of a smaller market. Limited company resources Knowledge of the market More effective and efficient • Practice of tailoring products and marketing programs to suit the tastes of specific individuals and...
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...Chapter Review: Basically this chapter consists of the major elements of a customer driven marketing strategy: segmentation, targeting, differentiation, and positioning. Marketers know that they cannot appeal to all buyers in their numerous, too widely scattered, and varied in their needs and buying practices. Therefore, most companies today practice target marketing- identifying market segments, selecting one or more of them, and developing products and marketing mixes tailored to each. Customer driven marketing strategy begins with selecting which customers to serve and deciding on a value proposition that best serves the targeted customers. It consists of four steps. Market segmentation is the act of dividing marketing into distinct groups of buyers with different, characteristics, or behaviors who might require separate products or marketing mixes. Once the groups identified market targeting evaluates each marketing segments attractiveness and selects one or more segments to serve. Market targeting consists of designing strategies to build the right relationships with the right customers. Differentiation involves actually differentiating the market offering to create superiors customer value. Positioning consist of positioning the market offering in the minds of target customers. Market Segmentation: Market consists of buyers, and buyers differ in one or more ways. They may differ in their wants, resources, locations, buying attitudes, and buying practices. Through...
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...important for their development. Marriott International is one of them. Since 1989, Marriott International has grown from one property in Asia-Pacific to over eighty properties. Over the past 16 years, Marriott has expanded its resort portfolio to include 15 resorts across the region. And in China since 1989, Marriott has grown from one property in Hong Kong to 32 hotels throughout the country (Marriott International, Inc. Corporate Headquarters, 2008). The hospitality industry today, customers don’t just need a place to stay and eat; people choose a hotel for more complex reasons like the location, hotel category and services provided. Given that the needs and wants became more and more unique, the target marketing for hotels became micromarketing. It is not only a local marketing for hotels to adjust in different location and cultural, but also an individual marketing for they provide tailored services...
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...Summary of Key Points for Chapter 7 This chapter looks further into key customer-driven marketing strategy decisions—how to divide up markets into meaningful customer groups (segmentation), choose which customer groups to serve (targeting), create market offerings that best serve targeted customers (differentiation), and positioning the offerings in the minds of consumers (positioning). Chapter Objectives: 1. Define the four major steps in designing a customer-driven marketing strategy: market segmentation, market targeting, differentiation, and positioning 2. List and discuss the major bases for segmenting consumer and business markets 3. Explain how companies identify attractive market segments and choose a market targeting strategy 4. Discuss how companies differentiate and position their products for maximum competitive advantage in the marketplace. Most companies have moved away from mass marketing and toward target marketing—identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each. Figure 7.1 (pg.216) shows the four major steps in designing a customer-driven marketing strategy. Market segmentation involves dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. Market targeting (or targeting) consists of evaluating each market segment’s attractiveness and selecting one or more...
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...INTRODUCTION Companies face strong competition both domestically and internationally. Thus, creating challenges for companies to compete in respective business. To ensure success, companies must be appealing to the customers know how to get the right things as well as services considering the environment factors. Hence, customer-driven marketing strategies must be designed to build the right relationship with the customers. These marketing strategies should be well-planed, properly managed and have a direct impact on the company’s sales and profit. As for one of the famous jewelry company in Malaysia, Habib Jewel, the company started its business in 1958. The first shop was set up in Penang on the bustling Pitt Street, then known as “Jewellers’ Corner”, by the founder Datuk Haji Habib Mohamed Abdul Latif. From the start, Habib did things differently. When gold was the mainstay of jewelers, Habib sold diamonds. Years later, when the island turned into a beloved destination for visitors, Habib then soon spread its wings beyond Penang. Under the helm of our founder's son, Dato’ Sri Meer Sadik Habib, the company’s retail business soon flourished. Habib opened first shop outside of Penang in Kuala Lumpur and quickly gained a loyal following. The brand’s growing popularity beckoned the need for more showrooms and the decision was made to raise funds through a listing exercise. Habib had evolved from a family business to become Habib Corporation Berhad, making history...
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...concern of the environment. There are many segmentation bases in business market which includes company size, industry, operating practices, culture and geographic. This report will further analyse on cost based pricing, a type of pricing strategy currently used by Eco- Shack developer. This strategy is commonly used by smaller firms because it is easy to be implemented and allows firms to estimate their profit margin more accurately. However, this strategy does not respond to market change, thus we can say that the price of Eco- Shack is less competitive compared to competitors’ price. To solve the problems stated above, this report had suggested some marketing strategies that can be applied by Doug and Paul. Firstly, they can use micromarketing –a technique that involves tailoring and customising services to individual needs (Verdino 2010). We also recommend that they should...
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...Chapter 8: Segmentation, Targeting, and Positioning * Marketing is about satisfying customers’ wants and needs * Segmentation: dividing the market into groups of customers who have different needs, wants, characteristics, who would appreciate products/services specifically geared towards them The Segmentation-Targeting-Positioning (STP) process includes: * 1. Establish Overall Strategy or Objectives * 2. Profile Segments * 3. Evaluate Segment Attractiveness * 4. Select Target Market * 5. Identify and Develop Positioning Strategy Step 1: Establish Overall Strategy or Objectives * Planning process * Vision or objectives of the company’s marketing strategy * Segmentation strategy must be consistent with firm’s mission and objectives and with its SWOT Step 2: Profile Segments * Describe different segments with their needs, wants, and characteristics * Helps firms better understand the profile of the customers in each segment, customer similarities within a segment, customer dissimilarities across segments * Benefits consumers derive from the products, break down groups of consumers * Segmentation methods based on: * Geographic * Demographic * Psychographic * Behavioural * Composite 1. Geographic Segmentation * The grouping of consumers on the basis of where they live * Ex. by country, region, province, neighbourhoods, climate, urban, rural * Most useful...
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...Differentiable: the segment should be conceptually distinguishable and respond differently to different marketing mix elements and programs Actionable: Effective programs can be designed Market Targeting Evaluating market segments Segment size and growth Segment structural attractiveness Existing strong and aggressive competitors; easy for new entrants; existence of actual or potential substitute products; relative power of buyers; power suppliers that control or prices or reduce the quality or quantity of ordered good and services Company objectives and resources A company should only enter the segments in which it can create superior customer value and gain advantages over its competitors Selecting target market segments Micromarketing The practice of tailoring products and marketing programs to the needs and wants of specific individual s and local customer groups Local marketing Tailoring brands and promotions to the needs and wants of local customer groups Individual marketing Tailoring products and marketing programs to the needs and preferences of individual customers Price Pricing Strategies Customer Value-Based Pricing Setting price based on buyers’ perceptions of value rather than on the sellers’ cost It is considered along with all other marketing mix variables before the marketing program is set. Assess customer needs and value perceptions —> Set target price to match customer perceived value —> Determine costs that can be incurred —> Design...
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...lower quality of care. Poorer health outcomes of this increasing heterogeneous group is because direct communication is inhibited by language barriers and culture. The other reason is functionality. One hospital can no longer provide all things to all people. As the old adage goes “If you don’t create change – change creates you. What particular challenge did the community hospital face? They were facing 2 challenges: 1. They were sharing the market with 13 other hospitals servicing 24,274 women of child bearing 2. This population was speaking 40 different languages. What marketing techniques were used to address the needs of a diverse population? They used target marketing to reach out to the ethnic populations and micromarketing to women of childbearing age. In what ways did the hospital disseminate its messages to the community (rather than relying on impersonal advertising?) a. Advertising: Advertising campaigns for each group through native-language posters/fliers, newspapers ads, billboards and radio ads b. Communication: Comprehensive guide to hospital services, implement comprehensive community-relations program c. Direct Marketing: material distributed to 125,000 households and in religious institutions. What indicators could the hospital have used to evaluate the impact of these marketing? 1. Census indicator a. Increase in monthly OB visits...
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...CULTURAL EFFECTS ON CONSUMER BEHAVIOR Andrew J. Marsiglia, PhD, CCP Cultural value systems have a direct effect on consumer behavior and vary by the major cultural dimensions between countries but become increasingly complex when people immigrate to foreign countries that have different cultural dimensions. In these situations, people are subjected to a wide variety of cultural reference groups that ultimately affect their consumer behavior. Consequently, marketers must develop marketing communication that addresses cultural and reference group factors from both a domestic and global perspective; that means marketers must adhere to the Levi-Strauss maxim to think globally but act locally. To this end, marketers use market segmentation and micromarketing to develop customer-centric marketing messages with the goal of providing precisely defined marketing messages that satisfy consumer’s need for personal information regarding products and services so that consumers should be adequately stimulated to purchase the product or service being advertised. www.lead-inspire.com December 26, 2010 Table of Contents Introduction ..................................................................................................................................... 3 Effects of Cultural Values on Consumer Behavior......................................................................... 3 Characteristics of Cultural Values .........................................................................
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