marketing
CharleneYY
mktRevision.pptxRevision Lecture
Individual Assessment
A 2,000-word individual report (60%)
Submission Deadline: Sunday 16th January 2021, 12pm noon
Requirements:
Student must choose an individual product or service ITEM (not a line, variant or company) and undertake a critical analysis of the following:
The consumer behaviour of a typical customer (20%)
The marketing mix strategies (40%)
The segmentation, targeting and positioning strategies (30%)
Make a recommendation to improve either the marketing mix strategies or the STP strategies (10%)
The analysis must be based in 2018-2021 and you must support your analysis with evidence from current academic and industry literature.
When choosing the product or service item, students must:
Choose one country in which to base their analysis
Ensure the product or service item is currently for sale in the chosen country and is different from the one selected for the group project
Ensure there is sufficient supporting evidence available in the public domain to undertake the required analysis
Uses/ integrates theories, frameworks and concepts
Demonstrate scope of knowledge and accuracy of use but in a task specific manner.
You need to convince the marker that you understand the concepts and ideas.
Best to do this via discussion, critical analysis and application of the concepts to the chosen product.
Use lecture slides, recommended textbooks and journal articles.
Selects and justifies
Word limit and space prevents most frameworks or issues being discussed in their entirety; hence, whilst showing spectrum of relevant knowledge is expected, you will need to select and justify what you think are critical aspects to explore in more depth.
Logical Structure
Introduction, main body (argument and discussion) and a conclusion.
Data Evidence is Provided
Elements of a Good Answer
Data evidence comes from annual reports of product parent company, competitor annual reports, marketing week, industry reports (Mintel etc.) journal articles, news articles, financial times etc.
What is your product/service? What country are you looking at?
Why is it selected?
Short paragraph – no more than 3-4 sentences.
Introduction (not included in word count)
Complete the 5 steps of the Decision Making Process for the ‘typical consumer’ of that product service
Identify what kind of purchase behaviour it is (i.e. routine, limited, extended)
Provide data to justify choices – where does the demographic of your ‘typical consumer’ go to find information (this will be different for different ages groups) and find data evidence to back this up etc.
Consumer Behaviour (20%~400 words)
Around .8 of page
2000 words = 4 pages single and 8 pages double space
Dimensions of Consumer Behaviour
Who?
Where?
Customers
How?
Why?
When?
A cognitive Cartesian perspective of consumer decision-making
Source: Engel, Blackwell & Miniard (1986)
Problem Recognition
Info search
Internal
External
Evaluation
Sets:
Awareness
Inept
Consideration
Choice
Choice criteria
Utilitarian
Hedonic
Purchase
Post-purchase evaluation and behaviour
Information Search
Internal sources:
Memory
Personal experience
External sources:
Personal – friends, family, work, etc.
Commercial – adverts and sales staff
Third party – ‘Which?’ reports
Directed personal experience – trial, demonstration, tasting, etc.
Evaluation & Purchase
Evaluation
large number of options matched against a small number of criteria
Purchase decision
small number of options and large number of choice criteria
Cognitive Dissonance
Depends on:
Expense
Number of alternatives
Complexity of choice criteria
Irrevocability of the decision
E.g. car ads
The Buying Situation
Level of
involvement
Differentiation &
no. of alternatives
Time pressures
Extent of
problem solving:
Extended
Limited
Habitual
Adapted from Jobber (2001)
Perceived relevance
Perceived risk:
Financial
Physical
Ego
Social
Product, Price, Place, Promotion
For each of the 4P’s apply/use a framework.
E.g. for Product – complete the anatomy of a product framework and explain how your product fits within its product line/mix
For Price – identify which pricing strategy is being used etc.
Again DATA is key, have evidence for each of you claims
4Ps Marketing Mix Strategies (40%~800 words, 200 each)
1.6 page
Pricing Strategies
Cost-based
Competitor-based
Market/ demand-based
Cost plus
Sales margin
Based break-even analysis
Going rate
Competitive bidding
Follow the leader
New product
Target costing
Psychological
Perceived value
Product mix
Cost Based Pricing
Cost plus (mark-up) pricing
A function of COST
Add a % mark-up to total cost
Sales margin pricing
A function of SELLING PRICE
% of the selling price is dedicated to profit
Demand/Market Based
New product
Target costing
Psychological
Bundle
Yield management
Segmentation
Perceived value
Product mix pricing/Tactics
Product line
Optional product pricing
Captive product pricing
New Product Launch Strategy
Rapid
skimming
High
Slow
skimming
Rapid
penetration
Slow
penetration
Price
Low
Promotion
High
Low
(Source: https://www.youtube.com/watch?v=RKYjdTiMkXM, https://commons.wikimedia.org/wiki/File:Low.cost.carrier.easyjet.arp.jpg , http://popsop.com/2010/04/design-week-awards-2010-winners/ ,fair dealing)
Odd-even pricing
Bundle pricing
Psychological pricing
(Source: https://www.nickkolenda.com/pdf/pricing-strategies.pdf?x96784 , https://www.dominos.co.uk/blog/dominos-winter-survival-deal/ ,fair dealing)
All images in this presentation are used for educational purposes. Fair dealing.
Yield management
Segmentation pricing
Psychological pricing
(Source: https://www.flickr.com/photos/kake_pugh/2617513849 ,fair dealing)
All images in this presentation are used for educational purposes. Fair dealing.
Value = low price.
Value = everything I want in a service.
Value = the quality
I get for the price I pay.
Value = all that I get for all that I give.
Discounting
Penetration Pricing
Prestige pricing
Skimming pricing
Good value pricing
Segmentation pricing
Price bundling
All images in this presentation are used for educational purposes. Fair dealing.
Perceived value pricing
(Source: http://management.sheffield.ac.uk/sitemap/iwp-conference-2016-information/ , http://thisluxlife.com/2014/09/25/victoria-beckham-and-her-dover-street-store/ , https://www.madametussauds.co.uk/london/en/tickets/ , http://www.ps4.sx/2013/11/ps4ps-vita-ultimate-bundle-pricing.html , fair dealing)
Pricing tactics
Product line pricing
(Source: http://productmargins.com/2012/11/12/extremeness-aversion/ . http://www.currys.co.uk/gbuk/toshiba-computing/laptops/laptops/315_3226_30328_54_xx/1_20/price-asc/xx-criteria.html ,fair dealing)
All images in this presentation are used for educational purposes. Fair dealing.
Pricing tactics
Optional product pricing
(Source: http://www.dell.com/uk/business/p/inspiron-3847-desktop/pd?oc=bd84754 ,fair dealing)
All images in this presentation are used for educational purposes. Fair dealing.
Pricing tactics
Captive product pricing
(Source: http://www.ebay.com/itm/Gillette-Fusion-Proglide-SilverTouch-Power-Razor-with-Flexball-8-Blades-Bundle-/321661666841 , http://home.bt.com/tech-gadgets/computing/6-ways-to-save-money-on-printer-ink-11363914456482 ,fair dealing)
All images in this presentation are used for educational purposes. Fair dealing.
Types of Distribution Channels
Consumer
Agent
Wholesaler
Consumer
Retailer
Consumer
Consumer
Producer
Producer
Producer
Producer
Retailer
Retailer
Wholesaler
Levels of Distribution Intensity
Intensive
Using all possible outlets (e.g. Coke)
Benefits =
Selective
Using some outlets (e.g. Levis)
Benefits =
Exclusive
Using very restricted outlets (e.g. Ducati)
Benefits =
convenience, impulse
resource efficient, quality control
resource efficient, quality control, premium image
Place Strategies– Channel Width
Distribution intensity (number of intermediaries a producer uses to distribute its goods)
3 levels
| Objective | Type of product | Number of intermediaries | Example | |
| Intensive | To achieve mass market selling | Convenience goods – routine and impulse | As many as possible | Coca-Cola |
| Selective | Control over number and quality of intermediaries | Shopping goods– shop around/brand preference | Some selected ones in specific locations | Sony TV or Apple iPod |
| Exclusive | One or very few intermediaries – scarcity, control over service levels, output | Specialty goods | One or a very few in one location | BMW |
Design the Promotion Mix
Designing the promotion mix involves:
Determining communication tools to be used
Specifying message to be communicated
Determining the communication channels to be used.
Solomon et al., (2018)
Click to edit Master title style
The Traditional Promotional Mix and Multichannel Promotion Strategies
Kotler et al., (2020)
Segmentation – identify which market segments are being targeted by your product (and justify your choices with evidence and data). Choose between 3-5
Targeting – which targeting strategy is being used by the company (this is the only time you will focus on the company and not the product) and how your product fits within this targeting strategy
Positioning – identify key criteria, create a perceptual map/undertake a 4C analysis
STP (30%~600 words, 200 each)
1.2 page
Click to edit Master title style
The STP framework
Market Segmentation Consumer markets
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Behavioral segmentation
Source: Kotler & Armstrong, 2018
Targeting Strategies
Source: Kotler & Armstrong, 2018
Perceptual map
Positioning approach-Perceptual/positioning Map (Cont.)
Perceptual map
Positioning approach-Perceptual/positioning Map (Cont.)
Based on your previous analysis of the strengths and weaknesses of your chosen product, identify one way in which EITHER the 4P Marketing Mix strategies OR the STP strategy could be improved.
Justify why this strategy should change, what it would change to, how this would improve the product, evidence of other products using a similar strategy.
Recommendation (10%~200 words)
.4
Toal = 4 pages
Academic references – use references for the frameworks/theories you are using/applying
Data references – evidence for every claim/statement you make about the product/company/consumer etc. Every fact stated must be referenced
Annual reports (your product’s parent company and competitors
Industry reports (euromonitor, Mintel etc.)
News articles (from trusted sources)
Financial times
Academic papers/journal articles
Use a diverse range of data sources to ensure it is objective
Two kinds of references
Completion of this assessment will require desk research into the selected organisation, the sector, relevant marketing communication tools and further exploration of the topics covered in lectures.
There are plenty of sources both in the library, online and in the provided reading list.
Draw on a range of sources: journal articles, books, news articles, practitioner orientated websites, research agent reports.
No expectation or requirement for you to contact the selected company or for conducting primary research, therefore:
DO NOT interview the owners or anyone linked to the organisation
DO NOT interview customers/ consumers
Important
