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Warwick Business School
Dr. Yansong Hu
+(0) 24 7652 3915
Session 1Introduction
Marketing ConceptsMarketing EnvironmentMarket Segmentation
Warwick Business School
Assessment
Multiple choice
Closed book
Two hours
Sixty questions in total, 15 for each of the 4 subjects
Exact time and place of the exam will be announced
later
Warwick Business School
Administrative Details
Office Hours: normally 2-5pm Wednesday
Or
contacting me at
+44 (0) 24 7652 3915 (24 hours)
[email protected] (24 hours a day 7 days a week)
Room C2.04 (Dr. Yansong Hu)
Use the my.wbs platform!
Warwick Business School
MARKETING MIXCommunications,
Product, Channels,Price
MARKETINGANALYSIS
EnvironmentConsumers Buying
Behaviour
SEGMENTATIONMARKET
SEGMENTATION
CUSTOMER-CENTRIC MARKETING MANAGEMENT PROCESS
(HU,2011)
Session 1Session 2
Session 1
Session 2Session 3
Warwick Business School
Agenda
How Do We Understand Marketing?
Marketing Environment
Market Segmentation
Why?
How?
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Marketing: Some Quotes
Marketing in History
“In well-ordered states, storekeepers and salesmen are commonlythose who are weakest in bodily strength and, therefore, of little usefor any other purpose,” Plato
“Merchants are to be accounted vulgar; for they can make no profitexcept by a certain amount of falsehood,” Cicero
“Advertising ... is a meretricious endeavor in which psychologicalappeals to ‘fear’ and ‘shame’ are developed to bamboozle the publicinto purchasing essentially worthless packaged goods at bloatedprices,” Thorstein Veblen
“Marketers are intrepid, far-sighted adventurers: Indiana Jones andthe Crystal Ball,” Anonymous
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Marketing: More Quotes
A Modern View
“Corporate leaders nationwide are discovering that their mostpowerful competitive weapon is marketing -- the development,pricing, distribution, and promotion of products,” Newsweek
“Marketing is now central to success at any company in anybusiness, and it is going to make the difference between winners andlosers,” Stephen Greyser, Harvard Business School
“Stop being a company with its face towards the CEO and asstowards the customer,” Jack Welch, CEO, G.E.
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What is Marketing?
Marketing as a business philosophy
• Meeting the evolving needs and wants ofconsumers better than competitors to make aprofit
Marketing as a business function
• The analysis, planning, implementation andcontrol of programmes designed to create,build and maintain beneficial exchanges withtarget buyers
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Economic
Cultural
Environmental
Social Political
Technological
Legal
Customers
The Company Shareholders
Publics Suppliers
Competitors
Intermediaries
MarketingStrategy
Internal &Immediate
Environment(Micro)
ExternalEnvironment
(Macro: PESTLE)
Scanning & Sensing: The MarketingContext
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The Political and Legal Context
Opportunities
• GE wind turbine in EU
Threats
• Japan Earthquake
Three business strategies
(1). Passive reaction
(2). Positive anticipation (BT)
(3). Proactive public policy shaping (Hiring lobbyists, Pressinglawsuits)
- Disneyland and Sweden
Political
Legal
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Economic Context: Credit Crunch
Challenge about market system
Regulations
Economic
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The Social and Cultural Context
The greymarket
The youthmarket
Multi-ethnicsocieties
Changinglifestyles and
living patterns
Demographicchange
Social
Cultural
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The Social and Cultural Context
Actors’ Web inHollywood:
Kevin Bacon Game
Two actors areconnected if theyhave appeared in amovie together.
Then any givenactor in history is onaverage 3 moviesaway from KevinBacon!Path from Kevin Kline to Kevin Bacon= 3 (as of 1995)
Kevin Bacon
Social
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Technological Context
Technological
Microwave Oven
Disposable Diaper
Birth Control Pill
Home VCR
Pocket Calculator
Personal Computer
Fax Machine
Touch-ToneTelephone
Fiber-Optic Systems
Photocopier
Computer Disk Drive
This list was compiled in the early 1990s. Anything else youwould add?
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Why Segment the Market: from MassMarketing to Market Segments Henry Ford: customers could buy the Model T in
any color they wished – as long as it was black
Black Model Ts gave way to GM’s strategy of
market segmentation
Mass Marketing
GMFord Model T
Market Segment (s)
…
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How to Do It: STP Process
Segmentthe Market
Group customerswith similar needs &preferences
Select TargetSegments
Select the mostattractive segments
DecideMarketing Mix
EstablishSegment
Positioning
Ensure thatcustomers in eachsegment perceivethat we can satisfytheir needs &preferences betterthan competitors
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STP: Ways to Segment a Consumer Market
Demographic
Age, gender, income, occupation, family
Geographic
Country, region, city, climate
Psychographic
Lifestyle, personality
Behavioral
Occasions, benefits, use status, usage rate
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Measurability: ability to obtain informationabout the size, nature, and behavior of a marketsegment
Accessibility: degree to which segments canbe reached, either through targeted advertisingand communication programs or multiple retailchannels
STP: Target Market Selection Criteria
Substantiality: size of the market—is it largeenough to be profitable?
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STP: Positioning
Positioning:
An attempt to manage how potential customersperceive a product or service
Volvo positions its vehicles in terms of durability andsafety
Apple: elegant in design and user friendly
Swatch
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STP: Positioning
A touch of class/a car to be proud to own
Practical/affordable/good gas mileage
Fun to drive/sportylooking/appeals toyounger people
Conservativelooking/appeals toolder people
Lincoln
Cadillac
Mercedes
ChryslerBuick
Oldsmobile
Porsche
BMW
Pontiac
Ford
Dodge
Plymouth
Chevrolet
Nissan
Toyota
VW
Perceptual MappingExample: automobiles
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Key TakeawaysWhat is Marketing
Marketing as a business philosophy
Marketing as a business function
Marketing Environment
PESTLE
STP
Why?
How?
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Additional Readings
Relevant chapters (i.e., marketing concepts, marketingenvironment, and segmentation) in• Marketing : an introduction / Gary Armstrong, PhilipKotlerOr• Marketing management [electronic resource] / PhilipKotler ... [et al.].