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SuitUpMarketers! PreMaterials 1
Marketing for?
SuitUpMarketers! PreMaterials 2
CONTENT
INTRODUCTION ___________________________________________________________________ 3
TERMS __________________________________________________________________________ 4
PROMOTION ___________________________________________________________________ 4
MARKETING____________________________________________________________________ 4
PUBLIC RELATIONS ______________________________________________________________ 4
PUBLICITY _____________________________________________________________________ 4
MARKET RESEARCH ________________________________________________________________ 4
MARKETING PLAN _______________________________________________________________ 5
MARKETING METHODS ___________________________________________________________ 5
MARKETING MIX ________________________________________________________________ 5
MARKETING RESEARCH ___________________________________________________________ 7
CASE STUDY – GREGGS BAKERY __________________________________________________ 8
MARKET SEGMENTATION _________________________________________________________ 9
BASIS OF MARKET SEGMENTATION ______________________________________________ 10
THE PROCESS OF MARKET SEGMENTATION ________________________________________ 10
CRITERIA FOR SEGMENTATION __________________________________________________ 11
BARCLAYS CASE STUDY ________________________________________________________ 11
SuitUpMarketers! PreMaterials 3
INTRODUCTION
These pre-materials were composed only for one purpose, to help understand and reach
basic knowledge about marketing, especially about marketing plans, methods, how to do a
research, that there is not only 4 P´s in marketing mix and at least how to handle and win
with marketing segmentation. There is also shown two case studies from two big London’s
companies: Barclays and Greggs which will help you to understand the theory.
SuitUpMarketers! core team is looking forward to meet you in Kosice.
SuitUpMarketers! PreMaterials 4
TERMS ADVERTISING
Bringing a product or service to the attention of potential and current customers. Focused on
one product or service Done with signs, brochures, commercials, direct mailings or e-mail
messages, personal contact, etc.
PROMOTION
Promotion keeps the product in the minds of the customer and helps stimulate demand for
the product. Promotion involves ongoing advertising and publicity activities. These activities
together with public relations are often considered aspects of promotions.
MARKETING
Marketing is the wide range of activities involved in makingÿ sure that you're continuing to
meet the needs of your customers and getting value in return. Marketing activities include
market research, competitors analysis, positioning, promotion…
PUBLIC RELATIONS
Ongoing activities to ensure the company has a good public image. Activities include making
the public understand the company and its products or services. Often, public relations are
conducted through the media (newspapers, television, magazines, etc. )
PUBLICITY
Publicity is mention in the media. Organizations usually have little control over the message
in the media, at least, not as they do in advertising. Regarding publicity, reporters and
writers decide what will be said.
MARKET RESEARCH
The systematic gathering, recording, analyzing and use of data related to the market where a
business functions.
SuitUpMarketers! PreMaterials 5
MARKETING PLAN
Objectives
The goals you want to achieve.
It should be similar to the goals of the event/LBG.
Strategies
What strategies can you develop to achieve these goals?
Before everything, do some market research.
Tactics
The day-to-day actions that you need to take in order to implement the strategy.
MARKETING METHODS
Evangelism marketing
Guerrilla marketing
Internet marketing
Mobile marketing
Permission marketing
Viral marketing
Search engine marketing
MARKETING MIX
- appeared in 1964
- need to have a mix “ingredients”
- the result would help taking better marketing decisions
4Ps
- Product
- Price
- Place
- Promotion
7Ps
- Product
- Price
- Place
- Promotion
- People
- Process
- Physical evidence
PRODUCT
- Tangible = product
- Intangible = services
SuitUpMarketers! PreMaterials 6
Product decisions include aspects such as function, appearance, packaging, service,
warranty, etc.
PRICE
The price is the amount a customer pays for a product. It is determined by a number of
factors:
– market share
– Competition
– product identity
– the customer's perceived value of the product.
Pricing models
- Free
- Freemium
- Paid
- Premium
- Subscription
- Per unit
- Per weight
- Etc.
PLACE
Place (or placement) decisions are those associated with channels of distribution that serve
as the means for getting the product to the target customers. The distribution system
performs transactional, logistical, and facilitating functions.
Can be:
Virtual
Physical
Faculty
Classrooms
Dorms
Outside the university grounds
etc.
PROMOTION
Worth the communicating with the purpose of selling to potential consumers. It is useful to
know the value of a customer in order to determine whether additional customers are cost of
acquiring them. Promotion decisions involve advertising, public relations, media types, etc.
SUMMARY
Product Price Place Promotion
Functionality
Appearance
Quality
Packaging
Brand
Warranty
Support
List price
Discounts
Allowances
Financing
Leasing options
Market coverage
Locations
Logistics
Advertising
Personal selling
Public relations
Message
Media
Budget
SuitUpMarketers! PreMaterials 7
PEOPLE
- Represent the company
- Are part of the service
PROCESS
Process is an element of service that sees the customer experiencing an organisation's
offering. It's best viewed as something that your customer participates in at different points
in time.
PHYSICAL EVIDENCE
All the material things around a service that are related to it
MARKETING RESEARCH
Market research is the process by which businesses find out about customers' needs, wants
and desires. It makes possible the successful development of new products.
It usually involves selecting a sample of the potential market and then questioning this
sample to find out these peoples' opinions e.g. about potential new products. Market
research can be carried out using either a large sample e.g. through questionnaires, or a
small sample e.g. through a focus group, in which small numbers of consumers are
encouraged to give detailed opinions about products.
Types of marketing research
ad-hoc research
focuses on a specific marketing problem and collects data at one point in time from
one sample of respondents. Examples of Ad-hoc studies are: usage and attitudes
surveys, product and concept tests, advertising development and evaluation studies,
corporate image surveys and customer satisfaction surveys.
Types of ad-hoc surveys:
Custom-designed studies:
they are based on the specific needs of the client. The research design is based on the
research brief given to the marketing research agency or internal marketing
researcher. Because they are tailor-made surveys, can be expensive.
Omnibus studies:
consist from questionnaires for face-to-face or telephone interviews. Is
cheaper alternative as custom-designed studies. The client can buy a space in
common questionnaire with another clients and benefit from cost sharing. Usually
the type of collected information is relatively simple and general (awareness levels,
ownership data)
continuous research
interview the same sample of people repeatedly (periodically). The client can measure
the change in customers attitudes and the change of spending patterns.
SuitUpMarketers! PreMaterials 8
Two types of continuous surveys:
Consumer panels
are formed by recruiting large number of households which provide information on their
purchase over time. By using the same households over a period of time, measures of brand
loyalty and switching can be compared to the demographic profile of customers.
Retail audits
by gaining the cooperation of retail outlets sales of brands can be measured by means of laser
scans of bar-codes on packaging which are read at the checkout. Although brand loyalty and
switching cannot be measured, retail audits can provide accurate assessment of sales
achieved by store.
the survey methods
- Face-to-Face interviews
- Telephone interviews
- Mail surveys
- Internet surveys
Costs Response rate Impact Data quality
Face to Face High High Medium High
Telephone Int. Medium Medium Medium High
Mail surveys Low Low High Medium
Internet surveys Low Medium High Medium
CASE STUDY – GREGGS BAKERY
Greggs plc is the UK's leading bakery retailer,
specialising in sandwiches and savouries, with a
particular focus on takeaway food and catering. The
research helps provide customers with superior products
that combine taste, satisfaction and value for money.
This case study looks at an activity that is, for Greggs plc,
a key part of the total market research process. It
involves carrying out taste tests. They also uses a range of
other market research techniques. Taste tests are ideal
for goods such as food that are consumed directly.
Interviewers recruit random respondents on the street
and invite them to take part in the research.
Carrying out taste tests
With taste tests, respondents eat products within a controlled setting and then give their
opinion on them. It is good practice to test no more than three products in a session. Greggs
plc carry out two main types of taste test:
- Single Product Test ( one product only )
- Comparison Test (more than one variant of the same product e.g. the same filling in
different types of bread)
Advantages of taste test methodology
SuitUpMarketers! PreMaterials 9
For any business, the most relevant views come from those people who are most likely to buy
and use the product. Having identified that group, an appropriate sample can be selected for
testing using a screening questionnaire that provides the right balance of age, gender and
frequency of purchase.
Small-scale v large-scale tests
Testing is an expensive exercise. Although it is helpful to carry out tests on as large a sample
as possible, it makes good economic sense first, to conduct a sample test using perhaps 30
people to obtain an initial reaction to a product. If it proves to be well received then large-
scale tests can be carried out on samples of not less than 100 people.
Rules for accurate taste testing
- Location
- Equipment
- Respondents
- Sample size
- Product preparation
- Questionnaire
- Carrying out the test
- Rotation of order
- Results
Set out the results as percentages and show clearly the number of respondents. Larger
samples require a data processing package like Excel.
Conclusion
For producers of foods, properly conducted taste tests are an excellent way of gauging
consumers' views in order to inform ongoing product development. Greggs plc is heavily
committed to providing good value, high quality products to its customers. In order to do
this, Greggs plc place great faith in this type of research, and the firm's growth is testimony
to the success of its approach.
MARKET SEGMENTATION
„The identification of individuals or organizations with similar
characteristics that have significant implications for the determination of
marketing strategy.“
The objective of segmentation is to identify groups with
similar requirements so that they can be served effectively
while being of a sufficient size for the product or service to
be supplied efficiently. Generally three criteria can be
used to identify different market segments:
1) Homogeneity (common needs within segment)
2) Distinction (unique from other groups)
3) Reaction (similar response to market)
A market segment is a small unit within a large market
comprising of likeminded individuals. One market segment is totally distinct from the other
segment. A market segment comprises of individuals who think on the same lines and have
SuitUpMarketers! PreMaterials 10
similar interests. The individuals from the same segment respond in a similar way to the
fluctuations in the market.
BASIS OF MARKET SEGMENTATION
gender
The marketers divide the market into smaller segments based on gender. Both men and
women have different interests and preferences, and thus the need for segmentation.
Organizations need to have different marketing strategies for men which would obviously
not work in case of females The segmentation of the market as per the gender is important in
many industries like cosmetics, footwear, jewellery and apparel industries.
age group
Division on the basis of age group of the target audience is also one of the ways of market
segmentation. The products and marketing strategies for teenagers would obviously be
different than kids.
- Age group (0 - 10 years) - Toys, Nappies, Baby Food, Prams
- Age Group (10 - 20 years) - Toys, Apparels, Books, School Bags
- Age group (20 years and above) - Cosmetics, Anti-Ageing Products, Magazines,
apparels and so on
income
Marketers divide the consumers into small segments as per their income. Individuals are
classified into segments according to their monthly earnings. The three categories are:
- High income Group
- Mid Income Group
- Low Income Group
Stores catering to the higher income group would have different range of products and
strategies as compared to stores which target the lower income group.
marital status
Market segmentation can also be as per the marital status of the individuals. Travel agencies
would not have similar holiday packages for bachelors and married couples.
occupation
Office goers would have different needs as compared to school / college students.
THE PROCESS OF MARKET SEGMENTATION
the disaggregated market:
- Consist from dispersed individual clients
- C1 – C9 circles = clients
- All types of markets before segmentation
the segmented market:
- Customers are grouped into segments
- In the same group are customers with similar characteristics and attitudes
- The Company is preparing special product for the selected segment
SuitUpMarketers! PreMaterials 11
CRITERIA FOR SEGMENTATION
Three main groups:
- Behavioural criteria
- Psychographic criteria
- Profile criteria
a) Behavioural criteria
Describe the buying patterns and the human acting This group includes specific criteria, the
construction of which is based on the marketer’s experience and skills
b) Psychographic criteria
Are used when researchers believe that purchasing behaviour is correlated with the
personality or lifestyle of consumers This form of segmentation attempts to group people
according to their way of living as reflected in their activities, interests and opinions. These
variables help companies to construct product with specific design or functions, which are
applicable only for one type of segment.
Personality: Extroverts, introverts, aggressive, submissive…
c) Profile criteria
Describe the demographic, socioeconomic and geographic properties of customers
Examples:
Age, Gender, Life cycle (young single, young couples, young parents, retired), Social class
(white-collars, blue-collars, upper middle, unwaged), Income, Residence, Property relations.
BARCLAYS CASE STUDY
Barclays is a global bank. It provides a range of financial services in 56 countries. Barclays
provides retail banking services to customers, whether they are individuals or businesses. It
offers a broad range of financial products and services including current accounts, savings
accounts and general insurance.
Different kinds of customers represent
distinct markets for Barclays. The market for
personal banking services is very
competitive. Personal customers have a
choice of banks on the high street or on the
web to assist them in managing their
finances. For example, they can have their
salaries paid into accounts, pay bills through
the bank or save money to gain interest on
their savings.
There is also a competitive market for
business banking services. Businesses require different services such as credit management,
payments for suppliers or loans and overdrafts to help them to survive and grow. For
example, an expanding business may need a mortgage to buy a new building.
SuitUpMarketers! PreMaterials 12
Market segments
Each market is capable of being further sub-divided into segments. A market segment is a
part of a whole customer group that shares particular characteristics. These include such
factors as age, life stages, geography or occupation.
Within the market of personal banking, the segments could include categories such as:
- Students
- Graduates
- new to work'
- mature
- families
By identifying different market segments, organisations can ensure they are providing
products or services to meet the needs of these customers.
In addition to this, appropriate promotional techniques can be used to reach the people in
the separate segments.
Through segmentation, Barclays has been able to devise appropriate banking offers for
customers in different segments. This approach is helping Barclays to improve its market
share of the student accounts market. Barclays believes students constitute a very important
market segment for the business. Students may be choosing a bank for the first time and
Barclays hopes to retain these customers.
By focusing on the specific needs of this segment, Barclays hopes to attract more student
customers and keep them in the long term. Using market research has enabled Barclays to
identify the right product offer that will meet their needs.
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