Chapter 1: Introduction to Marketing
Content Covered:
- The scope and challenge of marketing
- The marketing process
- The customer-driven marketing strategy
- The marketing environment
- The company’s marketing mix
- The company’s customer value proposition
CUSTOMER VALUE DRIVEN MARKETING STRATEGY
MARKET SEGMENTATION
- Dividing the market into distinct groups of product and seeing their needs,
characteristics or behaviours and who might require separate marketing strategies or
mixes
- Divide larger markets to see the individual and unique needs of the smaller groups
SEGMENTING CONSUMER MARKETS
GEOGRAPHIC SEGMENTATION
- Dividing the market into different geographic units, and see where the company
wants to operate
- Must localise the products and ads, and sale efforts to fit the need of individuals
regions ,k cities and neighbours
DEMOGRAPHIC SEGMENTATION
- consumer needs, wants, and usage rates often vary closely with demographic
variables. Another is that demographic variables are easier to measure than most
other types of variables
AGE AND LIFE CYCLE
- Consumer needs change with needs,
, - Marketers can change their approaches for different age and life-cycle groups
- Age is a poor predictor of a person’s life cycle, heath, work or family status
and buying power
GENDER SEGMENTATION
- Used in marketing clothing, cosmetics, toiletries, toys and magazines.
INCOME
- Marketers use high-touch marketing programs, where lots of marketers target affluent
consumers with luxury goods and convenient services
- Not all companies that use income segmentation target the affluent. For example,
many retailers—such as the Dollar General, Family Dollar, and Dollar Tree store
chains—successfully target low- and middle-income groups.
PSYCHOGRAPHIC SEGMENTATION
- Dividing based on social class, lifestyle, or psychographic characteristics
- Also using personality variables to segment market
- Creating brand “tribes”
- Rei outdoor tribe
- Home depot has diy tribe
BEHAVIOURAL SEGMENTATION
OCCASIONS
- Buyers can be grounded according to occasions when they get the idea to buy,
actually make their purchase or use the purchased item
- Helps firms build up product use during nontraditional occasions.
BENEFIT SEGMENTATION
- Grouping buyers according to the different benefits that they seek from a product
- finding the major benefits people look for in a product class, the kinds of people who
look for each benefit, and the major brands that deliver each benefit.
USER STATUS
- Segmented into non users, ex users, potential users, first time users and regular
users
- Reinforce and retain regular users
- Attract targeted non-users
- Reinvigorate relationships with ex-users
- Potential users can be consumers facing life-stage changes
LOYALTY STATUS
- Market can be segmented by consumers who are strictly loyal to the company
- Company should begin by studying its loyal customers - powerful word of mouth
- Amasodder driven campaigns
- Company can learn about its weaknesses and correct them
CONCENTRATED MARKET
Niching lets smaller companies focus their limited resources on niches that may be
unimportant to or overlooked by larger competitors.
- Concentrated marketing can be highly profitable. At the same time, it involves
higher-than-normal risks. Companies that rely on one or a few segments for
all of their business will suffer greatly if the segment turns sour.
MICROMARKETING
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller marlymagharious. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.49. You're not tied to anything after your purchase.
