Principles of Marketing/Management Lecture Notes PDF

PRINCIPLE OF MARKETING/ PRINCIPLE OF MANAGEMENT 1st Semester 3rd Stage Assit. Lecturer Haneen Khalid Dany MSc. Information Technology Management THIS LECTURE Segmentation of the Market Defining segments and segmentation of the market, targeting and positioning of...

PRINCIPLE OF MARKETING/ PRINCIPLE OF MANAGEMENT 1st Semester 3rd Stage Assit. Lecturer Haneen Khalid Dany MSc. Information Technology Management THIS LECTURE Segmentation of the Market Defining segments and segmentation of the market, targeting and positioning of products SEGMENTATION, TARGETING, POSITIONING The most valuable and profitable, and important marketing terms any company hope to learn. SEGMENTATION Reaching every single person on the universe is a very expensive and wasting recourses, and the majority will not fit to your business. So the first step is: to segment your market! To start classify or categorize the group of people. Different customers need different needs and preferences Not to advertise for everybody at the exact same way! Be selective TARGETING After dividing the market into groups (segmentation), the Selecting process for which segment you want to go after is the TARGETING. Who you want to serve? Look at overall business picture try to dial in that exact segment to get maximum value of the services or products provided. Who do you most enjoy servicing? Specific segment of the population that reflect more value, and revenue. Find the common characteristics of your customers, laser focus to learn more about them TARGETING EXAMPLE: How Netflix Uses Targeting: Customer Data: Netflix tracks its users' viewing habits, including the shows they watch, how much of each show they watch, genres they prefer, and even the time of day they watch. Personalization: Based on this data, Netflix uses machine learning algorithms to recommend shows and movies that align with each user’s unique preferences. Targeting Example: If a user watches a lot of documentaries about nature and science, Netflix will recommend more content from those categories. Result: Netflix’s targeted recommendations increase user engagement and satisfaction, leading to higher subscription renewal rates and reduced churn. TARGETING EXAMPLE: How Amazon Uses Targeting: Customer Data: Amazon collects vast amounts of data from customer searches, purchases, and browsing behavior. The company also tracks items that customers have added to wish lists or carts but haven’t purchased. Personalization: Using this data, Amazon displays sponsored product ads tailored to a customer’s search history, recent views, and past purchases. For example, if a customer searches for “running shoes,” Amazon may show them targeted ads for running shoes from various brands or highlight similar products they have viewed before. Targeting Example: A customer who previously searched for fitness equipment will see sponsored ads for products related to fitness, such as dumbbells, resistance bands, or sports clothing. Result: This type of behavioral targeting helps increase conversions by showing customers relevant products at the right time, driving up sales through personalized recommendations. POSITIONING One of the most complicated and confused terms when it comes to marketing. It is about how you position the product or service in the mind of your customers. Positioning is reframe or re categorize or reposition your brand against competitors How douse the customer think or feel about the product? is your service reliable? Is it expensive? To position your product you will need to position it against other competitors in your space. Example, 7UP introduce themselves in the market as the un-Cola They showed that their competitor is Coca cola, and showed how they are different to it in the other hand. WAYS TO POSITION YOUR PRODUCT 1. Product differentiation: change the feature or improve the performance 2. service differentiation: providing faster, better, higher quality, solving problem services. 3. relationship differentiation: provide more customer communication points, customer services. 4. Image Differentiation: change the perception or point of view that customer have regarding the brand or product. BRAND POSITIONING STRATEGY t's about carving out a unique space in the market by communicating the brand’s distinctive value and benefits. The goal here is to ensure that when a customer thinks of a particular need or problem, they immediately think of your brand as the best solution. This could involve aspects like quality, price, innovation, customer service, or brand personality. The positioning should be consistently reflected in all brand communications, from advertising to customer interactions, ensuring a cohesive and memorable brand image. WHY IS BRAND POSITIONING IMPORTANT? Brand positioning plays an important role in helping you stand out from other companies offering similar products. When done well, it also ensures that your market message is derivable to your audience. By understanding your customers' needs and preferences, you can tailor your messaging to highlight the benefits that matter most to them, making your brand more relevant and appealing. But not only that, a well-defined brand position serves as a strategic guide for product development, marketing, and customer service. It helps ensure that all aspects of your business are aligned with your brand’s identity and goals. THANK YOU Any Question?