Marketing exam 2.0 (Bec Business management with marketing) 1 year of uni

Marketing exam 2.0

Segmentation - the division of mass market into identifiable groups or segments, each of which have common characteristics 

Benefits:

• Resource allocation
• Competitive advantage 
• Maximises customer needs 

Dangers:

• Descriptive, not predictive 
• Assumes competition free
• May define wrong segments
  

STP process (Segmentation, targeting, positioning)

1. Situation analysis
2. Segmentation 
3. Targeting 
4. Positioning 
5. Marketing mix formulation 

Factors for an effective segment

• Identification - identifying distinct group of customers with the same needs
• Measurability - target segment must be capable of some form of measurement/guess
• Adequate size - has to be large enough to be worth while financially
• Accessibility - useless unless you can reach the group through promotion
• Responsiveness - should react to any change in marketing mix aspects 

Segmentation characteristics 

• Demographic - age, gender, social class, occupation, income, education, lifestyle 
• Sociological/Behaviourist -  culture, racial differences, lifestyle, race, culture, nationality 
• Psychographic - personality, delivery, loyalty, lifestyle, product feature, price, usage rate, innovation, readiness
• Geo-demographic (where) - rural, high street, out of town, south/north, village, global, European

Lifestyle profiling: sport, theatre, and cinema, arts, culture, keep fit, music outdoor, travel

Behavioural differences: stock pilers, brand seekers, low price ferrets, budget bound, promotion oblivious, promotion opportunists, promotion junkies

Product - tangible/ intangible; idea, thing, product, service, innovation, people, place, experiences 

Three product levels:

• The core product - consists of core functional/ emotional benefit of service
• The embodied product - physical good/ delivered service that provides expected benefit; durability, design, packaging, features, and capabilities 
• The augmented product - embodied product + other supporting factors necessary in supporting the purchase: credit, finance, delivery, training, installation, guarantees.

Types of consumer products:

• Durable goods - reflect purchasers high involvement level in purchasing 
• Non-durable goods - low level of involvement by buyers in purchasing 
• Convenience products - nondurable products or services that don’t involve too much thought from customers side 
• Shopping products - not bought frequently, shoppers doe always have up to date info on this product (furniture, electrical appliances, phones); additional research is required
• Speciality products - bought infrequently, have high risk, very expensive, often bought only once
• Unsought products - products that people don’t anticipate buying, like water meters

Types of business product:

• Equipment goods - everyday business operations; accessory and capital equipment goods
• Raw materials - basic goods that are used in production of finished goods
• Semi-finished goods - raw materials that have been converted into temporary state 
• Maintenance, repair and operating (MRO) - products other than raw materials; bolts, nuts, cleaning products; ensure that a firm keeps functioning 
• Component parts - complete parts bought from another business that is used to complete your product
• Business services - intangible services that are used to enhance organizations productivity/ operations

Product life-cycle:

1. Product development - no profit; a lot of expenses
2. Introduction - slow sales growth; little or no profit; high distribution/promotion expenses
3. Growth - sales increase, new competitors enter the…