Fundamentals of Marketing 2024-2025 PDF

Fundamentals of Marketing Unit 2: The marketing environment © Professors of Fundamentals of Marketing Program 1. Micro and macroenvironment 2. Market segmentation and demand analysis 3. Analysis of competitors: positioning 1. Micro and macroenvironment...

Fundamentals of Marketing Unit 2: The marketing environment © Professors of Fundamentals of Marketing Program 1. Micro and macroenvironment 2. Market segmentation and demand analysis 3. Analysis of competitors: positioning 1. Micro and macroenvironment Company Micro Macroenvironment Marketing environment: includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.  1. Micro and macroenvironment General environment Evolution of industry structure Environmental Main competitors Macro environment Suppliers Intermediaries Legal Company Consumers Micro environment Technological Political Economic Social-Cultural  1. Micro and macroenvironment Macroenvironment Stability Global warming Lobbies Environmental laws Intervention Recycling Macroeconomic conditions. Demographic shifts Consumer income Cultural changes Changing product Legal changes that could affect Suppliers’ country Population and technology our activity Economic stability distribution Technology of Fiscal laws Consumer trends tomorrow Favorable new laws  1. Micro and macroenvironment Microenvironment Companies or Companies that Organizations Intermediaries Consumers Competitors Suppliers individuals who operate in the that help the Individuals or provide the same market company in companies that necessary and offer similar distributing and purchase/buy resources for or substitute selling their the products or the company to products and products to the services of the develop its markets market(primarily company products wholesalers, retailers, and agents)  2. Demand analysis: market segmentation Determine Market segmentation (S) requires dividing a market into segments (using statistical who techniques). Potential consumers with similar your potential characteristics consumers will be Strategies for choosing the target market (T) Target market (T) a group of potential buyers that the company aims to turn into clients/consumers Current market  2. Demand analysis: market segmentation Market segmentation requires dividing a market into segments (using statistical techniques) with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. The purpose is to develop a specific marketing strategy for each one of these segments in order to satisfy their needs and achieve the objectives of the company. A procedure that can assist in more accurately determining the needs of consumer groups, allowing the company to serve them better by offering the selected groups a suitable marketing mix. 2. Demand analysis: market segmentation Segmenting consumer markets Geographic Demographic segmentation segmentation Psychographic Behavioral segmentation segmentation Source: Kotler and Armstrong (2018)  2. Demand analysis: market segmentation Segmenting consumer markets-criteria: Geographic segmentation divides the market into different geographical units such as nations, regions, climates, states, counties, cities, or even neighborhoods. Demographic segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation. Psychographic segmentation divides a market into different segments based on social class, information sources, lifestyle, or personality characteristics. Behavioral segmentation divides a market into segments based on consumer knowledge, attitudes, benefit sought, usage rate, purchasing approach (place, time, etc.), uses of a product, or responses to a product.  2. Demand analysis: market segmentation Examples of typical target market variables in Canadian consumer markets: Source: Kerin (2010) 2. Demand analysis: market segmentation Market segment: consists of a group of customers/consumers who share a similar set of needs and wants. They might require different products or marketing combinations. 1. Evaluate the attractiveness of each segment 2. Choose the segments which will become your target market 3. Decide the marketing strategy  2. Demand analysis: market segmentation Strategies for choosing the target market Undifferentiated Company (mass-marketing) Total market marketing mix strategy Marketing mix 1 Segment 1 Differentiated strategy Marketing mix 2 Segment 2 Marketing mix 3 Segment 3 Micromarketing Marketing mix strategy Concentrated (niche) strategy Marketing mix Segment 2 2. Demand analysis: market segmentation Strategies for choosing the target market Undifferentiated (mass-marketing) strategy Differentiated strategy Micromarketing strategy Concentrated (niche) strategy 2. Demand analysis: market segmentation Strategies for choosing the target market Undifferentiated (mass-marketing) strategy It occurs when a company, despite knowing the various segments within its market, chooses not to focus on any specific one. Instead, the organization prefers to have a broad or mass-market approach. For example, a clothing brand that designs its clothes for the general public without targeting specific demographic groups or market segments. 2. Demand analysis: market segmentation Strategies for choosing the target market Differentiated strategy It occurs when a company identifies and selects two or more specific market segments. For each segment, the company may develop a different product or a distinct marketing campaign. For example, a clothing brand that offers specific products for athletes and a different line for children. In this context, segmentation is also used to create separate marketing campaigns that target each segment individually. 2. Demand analysis: market segmentation Strategies for choosing the target market Micromarketing (customized) strategy The "customized strategy" involves creating campaigns or products tailored to specific market segments. This approach is particularly evident in contemporary marketing strategies. Today's companies seek to thoroughly understand their customers' preferences, needs, and interests. Based on this information, they design marketing campaigns with personalized messages and distribution channels to reach only the specific segments that are of commercial interest. 2. Demand analysis: market segmentation Strategies for choosing the target market Concentrated (niche) strategy Concentrated segmentation strategies are when a company identifies multiple segments but chooses to focus exclusively on one of them. This type of strategy is often adopted when companies lack the necessary resources to address multiple potential segments. 2. Demand analysis: market segmentation Controversies or concerns in market segmentation: 1. Targeting and exploitation of vulnerable or disadvantaged consumers with controversial or potentially harmful products 2. Concern about potential harassment in the quest for detailed information using sophisticated analytical techniques  2. Demand analysis: market segmentation Market definition from a Marketing perspective Total market Group or set of potential (Mobile phones-Spain) buyers or existing consumers of a product or service Demand calculations Current market Current market (Vodafone) (Movistar)  2. Demand analysis: market segmentation Market definition Demand Demand analysis Sales Volume Value Demand (physical units) = Demand (currency units-€) = people who demand * purchase rate people who demand * purchase rate * price Example: Kyoto company estimates that its demand for Kyoto company estimates that its demand for compact compact passenger cars in Spain next year will be 60,000 units passenger cars in Spain next year will be 1,080 million euros 2. Demand analysis: market segmentation Market share (%) Company sales (Comparison of the Industry sales current market with the total market) 2. Demand analysis: market segmentation Market share (%) (Comparison of the current market with the total market) 3. Analysis of competitors: positioning Unless you have a unique product or service, when you decide to start a business, it's inevitable that you will encounter competitors. The way to survive is to find how to differentiate yourself, and competitive analysis is of great help in that regard.  3. Analysis of competitors: positioning What is competitor analysis? Evaluating competitors:  Understanding how they operate  Predicting their current and future strategic direction  Analyzing strengths and weaknesses  Understanding why customers/consumers buy from them Understanding and analyzing our competition allows us to identify our competitive advantage and be more effective in establishing our strategy 3. Analysis of competitors: positioning Identifying competitors 1. Direct competitors are those brands that are focusing on the same market, satisfying similar needs through same or similar products/services or solutions (using similar technology), and targeting the same profile of potential customers. 2. Indirect competitors are those brands that are operating in the same market, targeting the same profile of potential customers, and mainly satisfying the same needs, although offering a product/service or solution that differs somehow from ours (different technology).  3. Analysis of competitors: positioning Crafting the strategy Targeting: who to sell to Differentiation: What do we offer? What sets us apart from the competition? Communication: What are we going to say to the customer? 3. Analysis of competitors: positioning Value proposition Differentiated promise that guides positioning development Communication of the positioning Strategies to be implemented to promote the brand and create a perception of the brand in the minds and hearts of users Positioning  3. Analysis of competitors: positioning Positioning is the art of asserting a brand's presence in the minds of buyers. It's not about what we do to the product, but about what we do to the mind of the potential consumer Positioning comes from the value proposition and is the way we choose to transmit our unique points of difference Positioning is one of the pillars of the classic marketing strategy STP  3. Analysis of competitors: positioning Positioning must present our product in a way that helps change consumer perceptions and build preference Positioning addresses three fundamental questions (Fournier and Eng, 2010): Different from competitors Relevant and desirable to target consumers by resonating in their lives and in the broader culture Credible: consistent and believable business model  3. Analysis of competitors: positioning Differentiation through product, service, employee, image… Product Services Employees/People Image Versions Delivery Courtesy Brand Quality level Facility Credibility Mass and Consistency Customer Service digital media Duration training performance Atmosphere Reliability Technical Responsibility (store) Style advice, Communication Sponsorship assistance skills Company Design and Etc. values Patent guarantee Packaging Etc. Etc. Price Etc. 3. Analysis of competitors: positioning Authentic Is it a credible concept? Is it part of our personality? Simple What statement synthetizes all the information we need to know about the brand? Committed The concept must inspire, suggest… Relevant A good concept embodies what is really important for the consumer Helps the consumer buy the product or builds relevant emotional values 3. Analysis of competitors: positioning Every contact point is an opportunity to build or destroy the brand perception. 3. Analysis of competitors: positioning Facilities and Name Price Communication processes Point-of-sale Product Employees Customers (POS) Influencers’ Media opinion opinions  Gracias, Thanks Fundamentals of Marketing 2024-2025