1. Business / Marketing Minor Marketing Fundamentals M21439 Session 5: Appropriate Mixes & Stakeholder Relationships

2. Key Concepts Stakeholder groups Changing role of marketing in relation to these stakeholders Market segmentation Varying the marketing mix

3. Organisational Stakeholders ORGANISATION Employees Providers of Finance Consumers/Customers Community & Environment Government Other Organisations or Groups Source: Mullins,J.L. (1996) Management & Organisational Behaviour 4 th ed, UK:Pitman Publishing

4. Connecting Inside the Company “Traditionally, marketers have played the role of intermediary, charged with understanding customer needs and representing the customer to different company departments, which then act upon these needs.” Source: Kotler,P & Armstrong,G (2001) Principles of Marketing 9 th ed, Prentice Hall, p29

5. Connecting Inside the Co “Forward-looking companies are reorganising their operations to align them better with customer needs. Rather than letting each department pursue its own objectives, firms are linking all departments in the cause of creating customer value. Rather than assigning only sales and marketing people to customers, they are forming cross-functional customer teams” Source: Kotler,P & Armstrong,G (2001) Principles of Marketing 9 th ed, Prentice Hall, p29

6. Connecting with Outside Partners “Rapid changes are occurring in how marketers connect with their suppliers, channel partners and even competitors. Most companies today are networked companies, relying heavily on partnerships with other forms.” Source: Kotler,P & Armstrong,G (2001) Principles of Marketing 9 th ed, Prentice Hall, p29

7. Connecting with Outside Partners Supply Chain Management: Marketing channels consist of distributors, retailers and others who connect the company to its buyers. Strategic Alliances: Marketing alliances maybe service or product orientated

8. Connecting with Outside Partners Global Connections: Geographical and cultural differences have shrunk over the past two decades resulting in a vastly more complex marketing environment. Corporate Ethics and Social Responsibility: Organisations are encompassing these aspects more strongly in the past decade.

9. Examples of Marketing Objectives for Different Types of Exchanges Source: Philip Kotler, Marketing for Non-profit Organisations, 2nd edn, © 1982, p. 38. Adapted by permission of Prentice-Hall, Inc., Englewood Cliffs, N.J.

10. Definition of a Market “A market is the set of all people who have an actual or potential interest in a product or service and the resources to acquire it.” Kotler & Fox (1995)

11. Steps in Market Segmentation Source: Kotler,P. & Armstrong,G.(2001) Principles of Marketing 9 th ed, New Jersey:Prentice Hall MARKET SEGMENTATION MARKET TARGETINGMARKET POSITIONING 1. Identify bases for segmenting the market 2. Develop segment profiles 3. Develop measure of segment attractiveness 4. Select target segments 5. Develop positioning for target segments 6. Develop a marketing mix for each segment

12. Main Segmentation Bases – Consumer Markets 1.Geographic – for example, region, density, climate 2.Demographic – for example, age, gender, race, income 3.Psychographic – for example, lifestyle, personality 4.Behavioural – for example, user rate, loyalty, occasions 5.Multivariable – a combination of the above Source: Kotler,P. & Armstrong,G.(2001) Principles of Marketing 9 th ed, New Jersey:Prentice Hall

13. Main Segmentation Bases – Business Markets 1.Demographic – for example, industry, company, location 2.Operating Variables - for example, technology 3.Purchasing Approaches – for example, power structure 4.Situational Factors – for example, urgency, size of order 5.Personal Characteristics – for example, loyalty, attitudes towards risk Source: Kotler,P. & Armstrong,G.(2001) Principles of Marketing 9 th ed, New Jersey:Prentice Hall

14. Varying the Market Mix In different markets or industry sectors, different types or variation in focus on various elements of the marketing mix may be important to gain competitive advantage.

15. Business-to-Business Markets Characteristics of Business-to-Business Marketing Mixes –Promotion –Price –People Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin

16. Typical marketing channels for industrial products/business-to-business markets Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin

17. Service Markets Amending the Marketing Mix for Services –Product Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin

18. Complexity/variability grid for medical services Source: Adapted from Lynn Shostack, 1985 American Marketing Association Faculty Consortium on Services Marketing, Texas A&M University, 7-11 July. Reprinted by permission of the American Marketing Association.

19. Service Markets Amending the Marketing Mix for Services –Promotion –Price –Place/Distribution –Process –Physical Evidence (Ambience) –People Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin

20. The Extended Marketing Mix for Services – Boom & Bitner Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin

21. Service Marketing Mix The marketing mix designed originally for the service market is now becoming more popular with organisations who produce traditional goods. This is because people, process and place are starting to be seem as becoming important variable in customer choice.

22. International Markets Strategic Adaptation of Marketing Mixes for International Markets –Product and Promotion: Keep Product and Promotion the Same Worldwide Adapt Promotion Only Adapt Product Only Adapt Both Product and Promotion Invent New Products Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin

23. International Product and Promotion Strategies Source: Adapted from Warren J. Keegan, Global Marketing Management, 4th edn, (Englewood Cliffs, N.J.: Prentice-Hall, 1989), pp. 378-382. Used by permission.

24. International Markets Strategic Adaptation of Marketing Mixes for International Markets –Place/Distribution and Pricing: Distribution Pricing People Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin

25. Strategies for International Distribution and Pricing Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin