MOD 3 Global Bus Environement

8/10/2019 MOD 3 Global Bus Environement

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MARKETING IN TODAY’S GLOBAL

BUSINESS ENVIRONMENT

Module 3



INFORMATION NEEDS PROBES

What decisions do you regularly make? What information do you need to make

these decisions?

What information do you regularly get?

What studies do you periodically request? What information would you want that you

are not getting now?

What are the four most helpful

improvements that could be made in thepresent marketing information system?



INTERNAL RECORDS AND MARKETING INTELLIGENCE

Order-to-payment cycle

Sales information system

Databases, warehousing, data miningMarketing intelligence system



DATABASE MANAGEMENT



WHAT IS A

MARKETING INTELLIGENCE SYSTEM?

A marketing intelligence system is

a set of procedures and sources that

managers use to obtain everydayinformation about developments in

the marketing environment.



STEPS TO QUALITY MARKETING INTELLIGENCE

Train sales force to scan for new

developments

Motivate channel members to share

intelligence

Hire external experts to collect intelligence

Network externally

Utilize a customer advisory panel

Utilize government data sources

Purchase information



SOURCES OF COMPETITIVE INFORMATION

Independent customer goods and service

review forums

Distributor or sales agent feedback sites

Combination sites offering customer reviews

and expert opinions

Customer complaint sites

Public blogs



NEEDS AND TRENDS

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 3-8

Fad

Trend

Megatrend



MAJOR FORCES IN THE ENVIRONMENT

Demographic

Economic

Socio-cultural

Natural

Technological

Political-legal



POPULATION AND DEMOGRAPHICS

Population growth

Population age mix

Ethnic markets Educational groups

Household patterns



PERSPECTIVE ON THE GLOBAL DEMOGRAPHIC

ENVIRONMENT






ECONOMIC ENVIRONMENT AND CONSUMER

PSYCHOLOGY



INCOME DISTRIBUTION

Subsistence economies

Raw-material-exporting economies

Industrializing economies Industrial economies




SOCIAL-CULTURAL ENVIRONMENT

Views of themselves

Views of others

Views of organizations Views of society

Views of nature

Views of the universe



SOCIO-CULTURAL INFLUENCES



NATURAL ENVIRONMENT

Shortage of raw materials

Increased energy costs

Anti-pollution pressuresGovernmental protections



KEYS TO AVOIDING

GREEN MARKETING MYOPIA

Consumer Value Positioning

Calibration of Consumer Knowledge

Credibility of Product Claims



CONSUMER ENVIRONMENTAL SEGMENTS

Genuine Greens

Not Me Greens

Go-with-the-Flow Greens

Dream Greens

Business First Greens

Mean Greens



TECHNOLOGICAL ENVIRONMENT

Pace of change

Opportunities for innovation

Varying R&D budgets Increased regulation of change



THE POLITICAL-LEGAL ENVIRONMENT

Business Legislation

Growth of Special Interest Groups



FORECASTING AND

DEMAND MEASUREMENT

How can we measure market demand?

Potential market

Available marketTarget market

Penetrated market



A VOCABULARY FOR

DEMAND MEASUREMENT

Market Demand

Market Forecast

Market Potential

Company Demand

Company Sales Forecast

Company Sales Potential



ESTIMATING CURRENT DEMAND:

TOTAL MARKET POTENTIAL

Calculations

Multiple potential number of buyers by average

quantity each purchases times price Chain-ratio method




AREA MARKET POTENTIAL

Market-Buildup




AREA MARKET POTENTIAL

Multiple-Factor Index



ESTIMATING FUTURE DEMAND

Survey of Buyers’ Intentions

Composite of Sales Force Opinions

Expert Opinion

Past-Sales Analysis

Market-Test Method



CONSUMER BEHAVIOR



WHAT INFLUENCES

CONSUMER BEHAVIOR?

Cultural Factors

Social Factors

Personal Factors



WHAT IS CULTURE?

Culture is the fundamental

determinant of a person’s wants and

behaviors acquired through

socialization processes with familyand other key institutions.



SUBCULTURES

Nationalities

Religions

Racial groups

Geographic regions



FAST FACTS ABOUT

AMERICAN CULTURE

The average American:

chews 300 sticks of gum a year

goes to the movies 9 times a year

takes 4 trips per year

attends a sporting event 7 times each

year



SOCIAL CLASSES

Upper uppers

Lower uppers

Upper middles

Middle

Working

Upper lowers

Lower lowers



SOCIAL FACTORS

Reference groups

Family

Social roles

Statuses



REFERENCE GROUPS

Membership groups

Primary groups

Secondary groups

Aspirational groups

Disassociative groups



FAMILY DISTINCTIONS

AFFECTING BUYING DECISIONS



PERSONAL FACTORS

Age

Life cycle stage

Occupation

Wealth

Personality

Values

Lifestyle

Self-concept



AGE AND STAGE OF LIFECYCLE



OCCUPATION AND ECONOMIC CIRCUMSTANCES



PERSONALITY



BRAND PERSONALITY

Sincerity

Excitement

Competence

Sophistication

Ruggedness



LOHAS (LIFESTYLES OF HEALTH AND

SUSTAINABILITY) MARKET SEGMENTS

Sustainable Economy

Healthy Lifestyles

Ecological Lifestyles

Alternative Health Care

Personal Development



MODEL OF CONSUMER BEHAVIOR



MOTIVATION

Freud’s

Theory

Behavior

is guided by

subconscious

motivations

Maslow’s

Hierarchy

of Needs

Behavior

is driven by

lowest,

unmet need

Herzberg’s

Two-Factor

Theory

Behavior is

guided by

motivating

and hygienefactors



MASLOW’S HIERARCHY



PERCEPTION

Selective attention

Selective retention

Selective distortion

Subliminal perception



LEARNING



EMOTIONS



MEMORY



STATE FARM MENTAL MAP



CONSUMER BUYING PROCESS

Problem Recognition

Information Search

Evaluation of alternatives

Purchase Decision

Postpurchase Behavior



SOURCES OF INFORMATION

CommercialPersonal

Public Experiential



SUCCESSIVE SETS IN DECISION MAKING



A CONSUMER’S BRAND BELIEFS ABOUT LAPTOP

COMPUTERS





NON-COMPENSATORY MODELS OF CHOICE

Conjunctive

Lexicographic

Elimination-by-aspects



PERCEIVED RISK

Functional

Physical

Financial

Social

Psychological

Time



HOW CUSTOMERS USE OR DISPOSE OF

PRODUCTS



LOW-INVOLVEMENT DECISION MAKING



DECISION HEURISTICS

Availability

Representativeness

Anchoring and adjustment



FRAMING



MENTAL ACCOUNTING

Consumers tend to…

Segregate gains

Integrate losses Integrate smaller losses with larger gains

Segregate small gains from large losses



WHAT IS ORGANIZATIONAL BUYING?

Organizational buying refers to the

decision-making process by which

formal organizations establish the

need for purchased products andservices, and identify, evaluate, and

choose among alternative brands and

suppliers.



TOP MARKETING CHALLENGES

Understanding customer needs in new ways; Identifying new opportunities for growth;

Improving value management techniques

Calculating better marketing performance and

accountability metrics; Competing and growing in global markets

Countering the threat of product and service

commoditization

Convincing C-level executives to embrace themarketing concept



CHARACTERISTICS OF BUSINESS MARKETS

Fewer buyers

Close supplier-

customer

relationships Professional

purchasing

Many buying

influences

Multiple sales calls

Derived demand

Inelastic demand

Fluctuating demand

Geographically

concentrated buyers

Direct purchasing



BUYING SITUATION

Straight Rebuy

Modified Rebuy

New Task



SYSTEMS BUYING AND SELLING





OF CONCERN TO MARKETERS

Who are the major decision participants?

What decisions do they influence?

What is their level of influence?

What evaluation criteria do they use?



STAGES IN THE BUYING PROCESS: BUYPHASES

Problem recognitionGeneral need description

Product specification

Supplier search Proposal solicitation

Supplier selection

Order-routine specification Performance review



BUYGRID FRAMEWORK



FORMS OF ELECTRONIC MARKETPLACES

Catalog sites

Vertical markets

Pure play auction sites

Spot markets

Private exchanges

Barter markets Buying alliances



AN EXAMPLE OF VENDOR ANALYSIS

METHODS FOR RESEARCHING



METHODS FOR RESEARCHING

CUSTOMER VALUE

Internal engineeringassessment

Field value-in-use

assessment Focus-group value

assessment

Direct survey

questions

Conjoint analysis

Benchmarks

Compositional

approach Importance ratings



ORDER ROUTINE SPECIFICATION

Stockless purchase plans

Vendor-managed inventory

Continuous replenishment



CATEGORIES OF BUYER-SELLER RELATIONSHIPS

Basic buying and

selling

Bare bones Contractual transaction

Customer supply

Cooperative systems

Collaborative

Mutually adaptive

Customer is king



INSTITUTIONAL MARKETS



EFFECTIVE TARGETING REQUIRES…

Identify and profile distinct groups of buyerswho differ in their needs and preferences

Select one or more market segments to enter

Establish and communicate the distinctive

benefits of the market offering



WHAT IS A MARKET SEGMENT?

A market segment consists

of a group of customers who

share a similar set ofneeds and wants.



SEGMENTING CONSUMER MARKETS

Geographic

Demographic

Psychographic

Behavioral



GEOGRAPHIC SEGMENTATION



CLARITAS’ PRIZM

Education and affluence

Family life cycle

Urbanization

Race and ethnicity

Mobility



DEMOGRAPHIC SEGMENTATION

Age and life cycle

Life stage

Gender

Income

Generation

Social classRace and Culture



AGE AND LIFECYCLE STAGE



GENDER AND INCOME





RACE AND CULTURE

PSYCHOGRAPHIC SEGMENTATION



PSYCHOGRAPHIC SEGMENTATION

AND THE VALS FRAMEWORK

BEHAVIORAL SEGMENTATION BASED ON NEEDS



BEHAVIORAL SEGMENTATION BASED ON NEEDS

AND BENEFITS



BEHAVIORAL SEGMENTATION: BEHAVIORAL



BEHAVIORAL SEGMENTATION: BEHAVIORAL

VARIABLES

Occasions

Benefits

User StatusUsage Rate

Buyer-Readiness

Loyalty Status

Attitude

EXAMPLE OF A BRAND FUNNEL



EXAMPLE OF A BRAND FUNNEL

LOYALTY STATUS



LOYALTY STATUS

Hard-core

Split loyals

Shifting loyals

Switchers

BEHAVIORAL SEGMENTATION BREAKDOWN



BEHAVIORAL SEGMENTATION BREAKDOWN

SEGMENTING FOR BUSINESS MARKETS



SEGMENTING FOR BUSINESS MARKETS

Demographic

Operating variable

Purchasing approaches

Situational factors

Personal characteristics

STEPS IN SEGMENTATION PROCESS



STEPS IN SEGMENTATION PROCESS

Need-based segmentation

Segment identification

Segment attractiveness

Segment profitability

Segment positioning

Segment acid testMarket mix strategy

EFFECTIVE SEGMENTATION CRITERIA



EFFECTIVE SEGMENTATION CRITERIA

Measurable

Substantial

Accessible

Differentiable

Actionable

PORTER’S 5 FORCES MODEL



PORTER’S 5 FORCES MODEL

Threat of Rivalry

Threat of SupplierBargaining Power

Threat of BuyerBargaining Power

Threat of

New Entrants

Threat of

Substitutes



STEPS IN STRATEGIC BRAND MANAGEMENT



STEPS IN STRATEGIC BRAND MANAGEMENT

Identifying and establishing brand

positioning

Planning and implementing brand

marketing

Measuring and interpreting brand

performance

Growing and sustaining brand value



THE ROLE OF BRANDS



THE ROLE OF BRANDS

Identify the maker Simplify product handling

Organize accounting

Offer legal protection

THE ROLE OF BRANDS



THE ROLE OF BRANDS

Signify qualityCreate barriers to entry

Serve as a competitive advantage

Secure price premium

WHAT IS BRANDING?



WHAT IS BRANDING?

Branding is endowing

products and services with the

power of the brand.

WHAT IS BRAND EQUITY?



WHAT IS BRAND EQUITY?

Brand equity is the added valueendowed on products and services,

which may be reflected in the way

consumers, think, feel, and act withrespect to the brand.

ADVANTAGES OF STRONG BRANDS



ADVANTAGES OF STRONG BRANDS

Improvedperceptions of

product

performance

Greater loyalty

Less vulnerability to

competitive

marketing actions Less vulnerability to

crises

Larger margins More inelastic

consumer response

Greater tradecooperation

Increased marketingcommunicationseffectiveness

Possible licensingopportunities



WHAT IS A BRAND PROMISE?



WHAT IS A BRAND PROMISE?

A brand promise is the marketer’s vision ofwhat the brand must be and do for

consumers.

BRAND EQUITY MODELS



BRAND EQUITY MODELS

Brand Asset Valuator (BAV)

Brandz

Brand Resonance

BAV MODEL



BAV MODEL

UNIVERSE OF BRAND PERFORMANCE



UNIVERSE OF BRAND PERFORMANCE

BRAND DYNAMICS PYRAMID



BRAND DYNAMICS PYRAMID

BRAND RESONANCE PYRAMID



BRAND RESONANCE PYRAMID

BRAND BUILDING BLOCKS



BRAND BUILDING BLOCKS

MASTERCARD CREATED AN



EMOTIONAL BOND TO ITS BRAND

DRIVERS OF BRAND EQUITY



DRIVERS OF BRAND EQUITY

BRAND ELEMENTS



BRAND ELEMENTS

Brand names Slogans

Characters

Symbols Logos

URLs

BRAND ELEMENT CHOICE CRITERIA



BRAND ELEMENT CHOICE CRITERIA

Memorable

Meaningful

Likeable

Transferable

Adaptable

Protectable

SLOGANS



SLOGANS

Like a good neighbor,State Farm is there

Just do it

Nothing runs like aDeere

Save 15% or more in

15 minutes or less

We try harder We’ll pick you up

Nextel – Done

Zoom Zoom I’m lovin’ it

Innovation at work

This Bud’s for you Always low prices

SECONDARY SOURCES OF BRAND KNOWLEDGE



SECONDARY SOURCES OF BRAND KNOWLEDGE

INTERNAL BRANDING



INTERNAL BRANDING

Choose the right moment Link internal and external marketing

Bring the brand alive for employees



MEASURING BRAND EQUITY



MEASURING BRAND EQUITY

Brand audits Brand tracking

Brand valuation

THE 10 MOST VALUABLE BRANDS







DEVISING A BRANDING STRATEGY



Develop new brand elements Apply existing brand elements

Use a combination of old and new

BRANDING TERMS



Brand line

Brand mix

Brand extension Sub-brand

Parent brand

Family brand

Line extension

Category extension

Branded variants Licensed product

REASONS FOR BRAND PORTFOLIOS



BRAND ROLES IN A BRAND PORTFOLIO



FlankersCash cows

Low-end, entry-level

High-end prestige





VALUE PROPOSITIONS



Perdue ChickenMore tender golden chicken at a moderate

premium price

Domino’s A good hot pizza, delivered to your door within

30 minutes of ordering, at a moderate price

COMPETITIVE FRAME OF REFERENCE



CUSTOMER RATINGS OF COMPETITORS



DEFINING ASSOCIATIONS



Points-of-difference

Attributes or benefits

consumers strongly

associate with a

brand, positivelyevaluate, and believe

they could not find to

the same extent with a

competitive brand

Points-of-parity Associations that are

not necessarily unique

to the brand but may

be shared with otherbrands

POINT-OF-DIFFERENCE CRITERIA



Desirable

Deliverable

Differentiating

POP VERSUS POD



PERCEPTUAL MAP: CURRENT PERCEPTIONS



PERCEPTUAL MAP: POSSIBILITIES

Copyright © 2011 PearsonEducation, Inc. Publishing as

Prentice Hall

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DESIGNING A BRAND MANTRA


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Communicate

Simplify

Inspire




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CONVEYING CATEGORY MEMBERSHIP



Announcing category benefitsComparing to exemplars

Relying on the product descriptor



DIFFERENTIATION STRATEGIES


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MEANS OF DIFFERENTIATION


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Employee

Channel

Image

Services

EMOTIONAL BRANDING


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Strong culture

Communication style

Emotional hook

MARKET SHARE, MIND SHARE,

AND HEART SHARE


Prentice Hall

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AND HEART SHARE





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MOD 3 Global Bus Environement

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