Business / Marketing Minor Marketing Fundamentals M21439 Session 5: Appropriate Mixes & Stakeholder Relationships

Business / Marketing Minor

Marketing FundamentalsM21439

Session 5:

Appropriate Mixes & Stakeholder Relationships

Key Concepts

• Stakeholder groups

• Changing role of marketing in relation to

these stakeholders

• Market segmentation

• Varying the marketing mix

Organisational Stakeholders

ORGANISATION

Employees

Providers of Finance

Consumers/Customers

Community & EnvironmentGovernment

Other Organisations or Groups

Source: Mullins,J.L. (1996) Management & Organisational Behaviour 4th ed, UK:Pitman Publishing

Connecting Inside the Company

“Traditionally, marketers have played the role

of intermediary, charged with understanding

customer needs and representing the

customer to different company departments,

which then act upon these needs.”

Source: Kotler,P & Armstrong,G (2001) Principles of Marketing 9th ed, Prentice Hall, p29

Connecting Inside the Co

“Forward-looking companies are reorganising

their operations to align them better with

customer needs. Rather than letting each

department pursue its own objectives, firms

are linking all departments in the cause of

creating customer value. Rather than

assigning only sales and marketing people to

customers, they are forming cross-functional

customer teams”


Connecting with Outside Partners

“Rapid changes are occurring in how

marketers connect with their suppliers,

channel partners and even competitors. Most

companies today are networked companies,

relying heavily on partnerships with other

forms.”



• Supply Chain Management:

Marketing channels consist of distributors, retailers and others who connect the company to its buyers.

• Strategic Alliances:

Marketing alliances maybe service or product orientated


• Global Connections:

Geographical and cultural differences have shrunk over the past two decades resulting in a vastly more complex marketing environment.

• Corporate Ethics and Social Responsibility:

Organisations are encompassing these aspects more strongly in the past decade.

Examples of Marketing Objectives for Different Types of Exchanges

Source: Philip Kotler, Marketing for Non-profit Organisations, 2nd edn, © 1982, p. 38. Adapted by permission of Prentice-Hall, Inc., Englewood Cliffs, N.J.

Definition of a Market

“A market is the set of all people who have an

actual or potential interest in a product or

service and the resources to acquire it.”

Kotler & Fox (1995)

Steps in Market Segmentation

Source: Kotler,P. & Armstrong,G.(2001) Principles of Marketing 9th ed, New Jersey:Prentice Hall

MARKET SEGMENTATION MARKET TARGETING MARKET POSITIONING

1. Identify bases for segmenting the market

2. Develop segment profiles

3. Develop measure of segment attractiveness

4. Select target segments

5. Develop positioning for target segments

6. Develop a marketing mix for each segment

Main Segmentation Bases – Consumer Markets

1. Geographic – for example, region, density, climate

2. Demographic – for example, age, gender, race, income

3. Psychographic – for example, lifestyle, personality

4. Behavioural – for example, user rate, loyalty, occasions

5. Multivariable – a combination of the above


Main Segmentation Bases – Business Markets

1. Demographic – for example, industry, company, location

2. Operating Variables - for example, technology

3. Purchasing Approaches – for example, power structure

4. Situational Factors – for example, urgency, size of order

5. Personal Characteristics – for example, loyalty, attitudes towards risk


Varying the Market Mix

In different markets or industry sectors,

different types or variation in focus on various

elements of the marketing mix may be

important to gain competitive advantage.

Business-to-Business Markets

• Characteristics of Business-to-Business Marketing Mixes– Promotion– Price– People

Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin

Typical marketing channels for industrial products/business-to-business markets


Service Markets

• Amending the Marketing Mix for Services– Product


Complexity/variability grid for medical services

Source: Adapted from Lynn Shostack, 1985 American Marketing Association Faculty Consortium on Services Marketing, Texas A&M University, 7-11 July. Reprinted by permission of the American Marketing Association.

Service Markets

• Amending the Marketing Mix for Services– Promotion– Price– Place/Distribution– Process– Physical Evidence (Ambience)– People


The Extended Marketing Mix for Services – Boom & Bitner


Service Marketing Mix

The marketing mix designed originally for the

service market is now becoming more

popular with organisations who produce

traditional goods.

This is because people, process and place

are starting to be seem as becoming

important variable in customer choice.

International Markets

• Strategic Adaptation of Marketing Mixes for International Markets– Product and Promotion:

• Keep Product and Promotion the Same Worldwide

• Adapt Promotion Only• Adapt Product Only• Adapt Both Product and Promotion• Invent New Products


International Product and Promotion Strategies

Source: Adapted from Warren J. Keegan, Global Marketing Management, 4th edn, (Englewood Cliffs, N.J.: Prentice-Hall, 1989), pp. 378-382. Used by permission.

International Markets

• Strategic Adaptation of Marketing Mixes for International Markets – Place/Distribution and Pricing:

• Distribution• Pricing• People


Strategies for International Distribution and Pricing


Documents

Business / Marketing Minor Marketing Fundamentals M21439 Session 5: Appropriate Mixes & Stakeholder Relationships