Marketing Strategy Niche and Mass PDF

Marketing strategies appropriate for different types of market  Mass market strategies A mass market is one that caters for (almost) everyone, mass marketing is the process of selling products to all consumers regardless of age, gender, etc. in the same way These products can be...

Marketing strategies appropriate for different types of market  Mass market strategies A mass market is one that caters for (almost) everyone, mass marketing is the process of selling products to all consumers regardless of age, gender, etc. in the same way These products can be marketed to consumers all over the world in the same way Large quantities produced mean lower average costs means EOS, which means high profits Media used will be; TV, radio, newspapers, mass media Examples include: Perfume, pop stars, Coca cola, computers and Microsoft  Niche market strategies A market segment is consumers who can be grouped in different ways; income, gender, lifestyle, ethnicity, religion, age, interest A niche market is one that caters to a small subset of a segment and will target consumers in a very specific way Products are designed for a specific purpose Small turnover keeps larger firms from entering the market Inelastic demand means higher prices can be charged Media used will be; specialist magazines, trade fairs, websites, word of mouth, leaflets  B2B marketing B2B stands for Business to Business marketing. Many businesses just deal with other businesses rather than consumers. For example a school or college will have a paper supplier so they can keep giving you handouts and you can print your work out. Advertising needs to be informative rather than persuasive or “clever” This will typically involve larger transactions than with consumers (think paper again) Suppliers need to build up closer relationships with customers Focus will be on offering a quality product and a quality service B2B Business to business or B2B is selling to industrial buyers or retailers are not direct to the public. Businesses purchase: goods for resale raw materials to make other products and consumables services needed for their day-to- day operations What is a consumable? Related marketing activities B2B Marketing B2B involves promoting the product at trade fairs, networking with contacts in the industry and talking to potential purchases face to face Business buyers are focused on price and benefits and expect to: receive detailed information about a product, see demonstrations and presentations, negotiate discounts and payment terms  B2C Marketing B2C means business to consumer They are not looking to build up long term relationships with the supplier, maybe a one off purchase like a sofa Consumers want a variety of distribution channels for convenience e.g. online, click and collect, delivery etc. Short advertising messages which clearly point out the benefits e.g. Olay face cream will make you look 10 years younger Emotional connection with the product or supplier e.g. Watch the John Lewis Penguin advert here B2C Business to consumer or B2C is selling to private individuals and households who buy goods and services for their own use, such as clothes retailers and hairdressers Can you think of other examples? Related marketing activities B2C Marketing to consumers involves; persuading people to purchase carrying out market research promoting a brand identifying the benefits communicating to potential customers through targeted advertising A business in this market needs to provide excellent customer service to enhance its reputation e.g. a good returns policy Consumer behaviour – how businesses develop customer loyalty Customer loyalty Businesses have discovered that it is much cheaper to keep a loyal customer than to gain new customers through marketing The expression “plugging the leaky bucket” is used – where business owners should focus on keeping their existing customers with loyalty schemes, discounts and extras rather than continually trying to attract new customers Customer loyalty is creating a product or service that ensures repeat purchases Effective customer service Customer service can be During the purchase e.g. on a defined as; the assistance and car test drive, the sales person advice provided by a company can answer questions on fuel to those people who buy or use economy, reliability and its products or services features of the car This can be After the purchase e.g. repairs, Before the purchase e.g. warranties, guarantees and answering questions on the service plans phone or by e-mail Loyalty Cards Loyalty cards can work in a number of ways: They can improve customer retention e.g. a coffee shop making sure customers return by offering a stamp They can also collect important data on buyer behaviour and purchase decisions e.g. Boots advantage card, Tesco Clubcard Saver schemes Each week consumers can carry out their shopping and pay into a saver card – ready for Christmas They are rewarded by the supermarket for paying in. Here is the current ASDA scheme: Save £49 and get a £1 bonus Save £97 and get a £3 bonus Save £144 and get a £6 bonus