marketing made easy (part-ii)

8/11/2019 Marketing Made Easy (Part-II)

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Marketing Made Easy (Part-II)

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MAJOR MARKETING FRAMEWO

ANSOFF’S MATRIX

Contributed by Igor Ansoff (

Helps in deciding growth str

Existing

Existing Markets arket Penetr

ell more to exis

New Markets arket Develo

new markets

SWOT ANALYSIS

• A tool for auditing an organi

•

Strengths and Weaknesses a• Objective of decision makin

time minimize the effects of

Positive Factors

Strengths:

Good relationship with suppliers

An innovative product/service a

Specialist marketing expertise a

Strong distribution channel and

Location of business (store locat

Opportunities:

Potential international market (

A new or developing market (e.

Acquisition, mergers, JV or strat

New market segments that offe

A market vacated by an ineffecti

SEGMENTATION ND TARGETIN

Segmentation can be done on: (

Evaluation of segments and the

HOMOGENEITY

•Companiesshould try tochoose andtargetsegments thatarehomogenous

inthe kinds of

value sought

MEASUREABILITY

•Can weunderstand thesize and needsof the marketsegment?

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RKS

arvard Business Review 1957)

tegy; also called growth opportunities matrix

Products/Services New Pro

tion: Gain market share,

ting customers

Product Develop

to current custom

ment : Enter and develop Diversification: L

new markets (dive

zation and its environment; used in early stage o

re internal actors and Opportunities and Threatwill be to capitalize on Strengths and Opportun

Weaknesses and Threats

Negative Factors

and distributors

d quality process

d expert people

reputation

ion for retail)

eaknesses:

Lack of goodwill or poo

Poor quality/u differe

Lack of marketing expe

eak supply chain; po

Poor location of busine

.g. BRIC markets)

. Internet)

gic alliances

improved profits

ve competitor

hreats:

Competition: new com

or better products, bet

Environmental factors:

taxes, weak economy o

supply for flood, draug

G

) geo/demographics, (b) psychographics, (c) be

targeting can be done based on following decisi

ACCESSIBILITY

•Can wecommunicatewith thesegment sothat servingthe segmentis possible?

SUBSTANTIALITY

•Does thesegment desirethat values thatan offeringpresents?

TTRACTIV

•Market,ompetitihannel, Ind Otheronsidera

ntact: [email protected]

ducts/Services

ent: Sell more products

rs

unch ew product in

rsify portfolio)

f planning

s are external factorsities and at the same

r reputation

tiated goods or services

rtise

r relation with vendors

ss

etitors, price wars, new

er distribution channels

new laws with higher

r recession, issues in

t, strikes etc

avioral, (d) benefits e tc.

on parameters

ENESS

e,nternal

ions

ACTIONABILITY

•Can wecreate acompetitiveadvantagewith respectto the needsof thesegment?



Marketing Made Easy (Part-II)

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POSITIONING

CONSUMER DECISION MAKING

TY PES O F CO NSU MER ECISIO N

NeedRecognition

ConsiderationSet

Picking

•Low involvement and

limited problemsolving

•Undifferentiatedbrands

ariet

•Low i

limitesolvin

•Differ

Problem solving

•Normally for complhigh priceddifferentiatedproducts

•High degree of uncertainty

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Positionin

consumer's perce

service in relation

Perceptua

map is used to ma

analyse their posit

Generic p

Differentiate on n

ttribute

market; Differenti

Emotional

market; Differe

attributes/ brand i

PROCESS

PROCESSES

InformationSearch

AlternativeEvaluation

PurchaseDecision

seeking

volvement and

d problemg

entiated brands

Legalistic

•Requires approval

from external sources•Based on legal and

societal norms

ex,

Heuristics

•Used for repeatdecisions

•Buyers uses rules of thumb

• Very quick and easydecisions

Habit

•Absence of informationand alternatevaluation

•Standard derepeat purc

ntact: [email protected]

refers to the

ption of a product or

to its competitors

l map or positioning

p competing products to

ioning

sitioning: New product;

eds

positioning: Growth

te on attributes

positioning: Mature

tiate on intangible

mage

PostPurchase

Evaluation

Subcontracted

•Buyer obtain a

recommendationfrom a personal ornon personal source(ex. doctor)

searchive

cisions forases



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PLC OR PRODUCT LIFECYCLE

A popular tool to decide

Marketing Strategy and

Investment

Basic steps: which stage in PLC Overall Marketing Mix

Reshape and control PLC

Find below an indicative

guideline for normal products

based on PLC stage but cannot

be generalized

PLC Stage Introduction Growth Maturity Decline

Marketing

Objective

Market development by

creating awareness

Maintain and build

market + Stress

differentiation

Defend market

share + Maintain

brand loyalty

Harvest (‘milk’

the cow or

Delete

(‘divest’ the

dog)

Competition lmost not there Increasingly more Many but stable Reduced

Product Limited variety New ariety and

models introduced

Improvement and

upgrade of

product

Withdraw less

profitable

products

Price Skimming or penetration

pricing

ggressive pricing

to increase sales

Defensive pricing

to defend MS &

profit

At least break-

even (>

marginal cost)

Promotion Brochures, ads etc to

educate people

Build preference by

stressing difference

Reminder ads +

Trade promotion

Minimal

promotion

Place

(Distribution)

Exclusive/selective

distribution

More outlets to

ensure reach

Maximum reach to

ensure availability

Reduced

number of

outlets

No one knows how actual PLC curve will look like – will depend on product, industry and environment!

Failure to recognize PLC stage will lead to wrong decisions; such decisions might lead to Pygmalion effect

(self-fulfilling prophesy); for example, stopping investment in a product thinking that it is going to reach

decline phase will actually lead to the decline!

INNOVATION DIFFUSION PROCESS

marketing made easy (part-ii)

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