Intro to Marketing - Workshop 2 Segmentation, Product & Place

MKT 421: MarketingWorkshop 2

Market ResearchMarket Research

Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.

Market ResearchMarket Research

The broad goal of marketing research is to identify and define both marketing problems and opportunities and to generate and improve marketing actions.

Although marketing research isn't perfect, it seeks to reduce risk and uncertainty and to improve decisions made by marketing managers.

Market ResearchMarket Research

1. Internal

2. External

3. Primary

4. Secondary

Types of Market ResearchTypes of Market Research

Market Research ApproachMarket Research Approach

1. Surveys

2. Tele polls

3. Focus groups

4. Census data

5. Subscription data services

Forms of Market ResearchForms of Market Research

Market SegmentationMarket Segmentation

Why do we segment? Why do we segment?

Under what circumstances would we Under what circumstances would we not need to segment the market? not need to segment the market?

Market SegmentationMarket Segmentation

DemographicsDemographics

PsychographicsPsychographics

Purchase BehaviorsPurchase Behaviors

Geographical Geographical ConsiderationsConsiderations

How do we segment? How do we segment?

Physiological Needs

Safety Need

Social Need

Personal Needs

Food, Drink, Rest, Sex

Health, Medicine, Exercise

Love, Friendship, Status, Esteem

Personal satisfaction including fun, freedom, relaxation, and accomplishment

Buyers Purchase BehaviorBuyers Purchase Behavior

BuyersBuyers

1. Consumers

2. Organizational buyers

Two Types of BuyersTwo Types of Buyers

IdeaGeneration

IdeaScreening

Development

IdeaEvaluation

Commercialization

Stages of Product DevelopmentStages of Product Development

MarketPenetration

MarketDevelopment

ProductDevelopment

Diversification

Present Products New Products

Present Markets

New Markets

4 Basic Types of Market Opportunities4 Basic Types of Market Opportunities

ProductProductIdeaIdea

Goods/ServicesGoods/ServicesFeature/BenefitFeature/BenefitQuality LevelsQuality Levels

WarrantyWarranty

None,None,Full,Full,

LimitedLimited

PackagingPackaging

ProtectionProtectionPromotionPromotion

AttributesAttributes

ProductProduct

Branding is what you do to differentiate your cow from all the other cattle

on the range

Product BrandingProduct Branding

Product branding reinforces your positioning statement.

When you think of these companies, When you think of these companies, what comes to mind?what comes to mind?

FedExFedEx

VolvoVolvo

NordstromNordstrom

Product Branding - Why Bother? Product Branding - Why Bother?

Convenient packages are Convenient packages are easier to use, making easier to use, making

purchase decisions easier purchase decisions easier for the customer as well. It for the customer as well. It also protects the product also protects the product

and reduces costs of and reduces costs of shipping and storing and shipping and storing and

reduces theft, spoiling ,etcreduces theft, spoiling ,etc

Product PackagingProduct Packaging

Warranty A warranty says the A warranty says the company stands company stands behind the product. behind the product. Consumers often feel Consumers often feel more comfortable with more comfortable with products they know products they know come with assurances.come with assurances.

Product WarrantyProduct Warranty

The “bridge” connecting customers and products

Distribution takes place through channels involving:• Manufacturer• Wholesaler• Retailer• Consumer• Other Distribution Systems

PlacePlace

ConsumerConsumer

CitibankCitibank VWVW DoleDole Procter & Procter & GambleGamble

RetailerRetailer RetailerRetailerRetailerRetailer

WholesalerWholesaler

WholesalerWholesaler

WholesalerWholesaler

Examples of Distribution ChannelsExamples of Distribution Channels

• Direct vs. Indirect• Geographic Location• Level of Customer Service• Management of Distribution Channel(s)• Push vs. Pull Distribution Strategies

Place ConsiderationsPlace Considerations