1. Fred R. David Prentice Hall Ch 8-1 Marketing variables affect success or failure of strategy implementation Market SegmentationMarket Segmentation Production PositioningProduction Positioning Marketing Issues

2. Fred R. David Prentice Hall Ch 8-2 Strategy Analysis & Choice Marketing Decisions requiring polices – –Use exclusive dealerships or multiple channels of distribution –Use heavy, light, or no TV advertising –Limit (or not) the share of business done with a single customer Implementing Strategies: Marketing Issues

3. Fred R. David Prentice Hall Ch 8-3 Strategy Analysis & Choice Marketing Decisions requiring polices – –Be a price leader or price follower –Offer a complete or limited warranty –Reward salespeople based on straight commission or combination salary/commission Implementing Strategies: Marketing Issues

4. Fred R. David Prentice Hall Ch 8-4 Subdividing of a market into distinct subsets of customers according to needs and buying habitsSubdividing of a market into distinct subsets of customers according to needs and buying habits Market Segmentation

5. Fred R. David Prentice Hall Ch 8-5 Widely used in implementing strategiesWidely used in implementing strategies Small and specialized firmsSmall and specialized firms Market Segmentation

6. Fred R. David Prentice Hall Ch 8-6 Market Segmentation Important Variable: 1. Market and product development, market penetration, and diversification require increased sales through new markets or products Market Segmentation

7. Fred R. David Prentice Hall Ch 8-7 Market Segmentation Important Variable: 2. Firm can operate with limited resources. Enables a small firm by maximizing per- unit profits and per-segment sales. Market Segmentation

8. Fred R. David Prentice Hall Ch 8-8 Market Segmentation Important Variable: 3. Segmentation decisions directly affect marketing mix variables: - Product, place, promotion, and price Market Segmentation

9. Fred R. David Prentice Hall Ch 8-9 Marketing Mix – Component Factors Service level Warranty Transportation carriers Product line Inventory levels/locations Packaging PublicitySales territoriesBrand name Payment termsSales promotionOutlet locationStyle Discounts & allowances Personal selling Distribution coverage Features LevelAdvertisingDistribution channelsQuality PricePromotionPlaceProduct

10. Fred R. David Prentice Hall Ch 8-10 Bases for Segmenting Markets -- – Geographic – Demographic – Psychographic – Behavioral Market Segmentation

11. Fred R. David Prentice Hall Ch 8-11 Geographic Basis: – Region – County Size – City or SMSA size – Density – Climate Market Segmentation

12. Fred R. David Prentice Hall Ch 8-12 Demographic Basis: – Age – Family Size – Family Life Cycle – Income Occupation – Education – Religion – Race Nationality Market Segmentation

13. Fred R. David Prentice Hall Ch 8-13 Psychographic Basis: – Social Class – Lifestyle – Personality Market Segmentation

14. Fred R. David Prentice Hall Ch 8-14 Behavioral Basis: – Use occasion – Benefits sought – User status – Usage rate – Loyalty status – Readiness Stage – Attitude toward product Market Segmentation

15. Fred R. David Prentice Hall Ch 8-15 Developing schematic representations that reflect how products or services compare to competitors’ on dimensions most important to success in the industry Product Positioning

16. Fred R. David Prentice Hall Ch 8-16 Product Positioning based on: – Customers wants – Customers needs Product Positioning

17. Fred R. David Prentice Hall Ch 8-17 Product Positioning Steps Product Positioning Steps 2. Diagram Map 1. Select Key Criteria 3.Plot competitors’ products 4. Look for niches 5. Develop Marketing Plan

18. Fred R. David Prentice Hall Ch 8-18 Product Positioning Map Low Convenience High Customer Loyalty Low Customer Loyalty High Convenience Firm 1 Firm 2 Firm 3 Rental Car Market

19. Fred R. David Prentice Hall Ch 8-19 Product Positioning Map as Strategy- Implementation Tool— – Look for vacant niche – Avoid suboptimization – Don’t serve 2 segments with same strategy – Don’t position in the middle of the map Product Positioning