Marketing for?

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CONTENT

INTRODUCTION ______3 TERMS ______4 ______4 MARKETING______4 PUBLIC RELATIONS ______4 ______4 ______4 MARKETING PLAN ______5 MARKETING METHODS ______5 MARKETING MIX ______5 ______7 CASE STUDY – GREGGS BAKERY ______8 ______9 BASIS OF MARKET SEGMENTATION ______10 THE PROCESS OF MARKET SEGMENTATION ______10 CRITERIA FOR SEGMENTATION ______11 BARCLAYS CASE STUDY ______11

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INTRODUCTION

These pre-materials were composed only for one purpose, to help understand and reach basic knowledge about marketing, especially about marketing plans, methods, how to do a research, that there is not only 4 P´s in marketing mix and at least how to handle and win with marketing segmentation. There is also shown two case studies from two big London’s companies: Barclays and Greggs which will help you to understand the theory.

SuitUpMarketers! core team is looking forward to meet you in Kosice.

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TERMS

ADVERTISING Bringing a product or service to the attention of potential and current customers. Focused on one product or service Done with signs, brochures, commercials, direct mailings or e-mail messages, personal contact, etc.

PROMOTION Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. Promotion involves ongoing and publicity activities. These activities together with public relations are often considered aspects of promotions.

MARKETING Marketing is the wide range of activities involved in makingÿ sure that you're continuing to meet the needs of your customers and getting value in return. Marketing activities include market research, competitors analysis, positioning, promotion…

PUBLIC RELATIONS Ongoing activities to ensure the company has a good public image. Activities include making the public understand the company and its products or services. Often, public relations are conducted through the media (newspapers, television, magazines, etc. )

PUBLICITY Publicity is mention in the media. Organizations usually have little control over the message in the media, at least, not as they do in advertising. Regarding publicity, reporters and writers decide what will be said.

MARKET RESEARCH The systematic gathering, recording, analyzing and use of data related to the market where a business functions.

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MARKETING PLAN

Objectives The goals you want to achieve. It should be similar to the goals of the event/LBG.

Strategies What strategies can you develop to achieve these goals? Before everything, do some market research.

Tactics The day-to-day actions that you need to take in order to implement the strategy.

MARKETING METHODS

Evangelism marketing Guerrilla marketing Internet marketing Permission marketing Viral marketing Search engine marketing

MARKETING MIX

- appeared in 1964 - need to have a mix “ingredients” - the result would help taking better marketing decisions

4Ps - Product - Price - Place - Promotion

7Ps - Product - Price - Place - Promotion - People - Process - Physical evidence

PRODUCT - Tangible = product - Intangible = services

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Product decisions include aspects such as function, appearance, packaging, service, warranty, etc.

PRICE The price is the amount a customer pays for a product. It is determined by a number of factors: – market share – Competition – product identity – the customer's perceived value of the product.

Pricing models - Free - Freemium - Paid - - Subscription - Per unit - Per weight - Etc.

PLACE Place (or placement) decisions are those associated with channels of that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions. Can be: Virtual Physical Faculty Classrooms Dorms Outside the university grounds etc.

PROMOTION Worth the communicating with the purpose of selling to potential consumers. It is useful to know the value of a customer in order to determine whether additional customers are cost of acquiring them. Promotion decisions involve advertising, public relations, media types, etc.

SUMMARY Product Price Place Promotion

Functionality List price Market coverage Advertising Appearance Discounts Locations Quality Allowances Logistics Public relations Packaging Financing Message Leasing options Media Warranty Budget Support

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PEOPLE - Represent the company - Are part of the service

PROCESS Process is an element of service that sees the customer experiencing an organisation's offering. It's best viewed as something that your customer participates in at different points in time.

PHYSICAL EVIDENCE All the material things around a service that are related to it

MARKETING RESEARCH

Market research is the process by which businesses find out about customers' needs, wants and desires. It makes possible the successful development of new products. It usually involves selecting a sample of the potential market and then questioning this sample to find out these peoples' opinions e.g. about potential new products. Market research can be carried out using either a large sample e.g. through questionnaires, or a small sample e.g. through a focus group, in which small numbers of consumers are encouraged to give detailed opinions about products.

Types of marketing research ad-hoc research  focuses on a specific marketing problem and collects data at one point in time from one sample of respondents. Examples of Ad-hoc studies are: usage and attitudes surveys, product and concept tests, advertising development and evaluation studies, corporate image surveys and customer satisfaction surveys.

Types of ad-hoc surveys:  Custom-designed studies: they are based on the specific needs of the client. The research design is based on the research brief given to the marketing research agency or internal marketing researcher. Because they are tailor-made surveys, can be expensive.  Omnibus studies: consist from questionnaires for face-to-face or telephone interviews. Is cheaper alternative as custom-designed studies. The client can buy a space in common questionnaire with another clients and benefit from cost sharing. Usually the type of collected information is relatively simple and general (awareness levels, ownership data) continuous research  interview the same sample of people repeatedly (periodically). The client can measure the change in customers attitudes and the change of spending patterns.

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Two types of continuous surveys:  Consumer panels are formed by recruiting large number of households which provide information on their purchase over time. By using the same households over a period of time, measures of brand loyalty and switching can be compared to the demographic profile of customers.  audits by gaining the cooperation of retail outlets sales of can be measured by means of laser scans of bar-codes on packaging which are read at the checkout. Although brand loyalty and switching cannot be measured, retail audits can provide accurate assessment of sales achieved by store. the survey methods - Face-to-Face interviews - Telephone interviews - Mail surveys - Internet surveys

Costs Response rate Impact Data quality

Face to Face High High Medium High

Telephone Int. Medium Medium Medium High

Mail surveys Low Low High Medium

Internet surveys Low Medium High Medium

CASE STUDY – GREGGS BAKERY

Greggs plc is the UK's leading bakery retailer, specialising in sandwiches and savouries, with a particular focus on takeaway food and catering. The research helps provide customers with superior products that combine taste, satisfaction and value for money. This case study looks at an activity that is, for Greggs plc, a key part of the total market research process. It involves carrying out taste tests. They also uses a range of other market research techniques. Taste tests are ideal for goods such as food that are consumed directly. Interviewers recruit random respondents on the street and invite them to take part in the research.

Carrying out taste tests With taste tests, respondents eat products within a controlled setting and then give their opinion on them. It is good practice to test no more than three products in a session. Greggs plc carry out two main types of taste test: - Single Product Test ( one product only ) - Comparison Test (more than one variant of the same product e.g. the same filling in different types of bread)

Advantages of taste test methodology

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For any business, the most relevant views come from those people who are most likely to buy and use the product. Having identified that group, an appropriate sample can be selected for testing using a screening questionnaire that provides the right balance of age, gender and frequency of purchase.

Small-scale v large-scale tests Testing is an expensive exercise. Although it is helpful to carry out tests on as large a sample as possible, it makes good economic sense first, to conduct a sample test using perhaps 30 people to obtain an initial reaction to a product. If it proves to be well received then large- scale tests can be carried out on samples of not less than 100 people.

Rules for accurate taste testing - Location - Equipment - Respondents - Sample size - Product preparation - Questionnaire - Carrying out the test - Rotation of order - Results

Set out the results as percentages and show clearly the number of respondents. Larger samples require a data processing package like Excel.

Conclusion For producers of foods, properly conducted taste tests are an excellent way of gauging consumers' views in order to inform ongoing product development. Greggs plc is heavily committed to providing good value, high quality products to its customers. In order to do this, Greggs plc place great faith in this type of research, and the firm's growth is testimony to the success of its approach.

MARKET SEGMENTATION

„The identification of individuals or organizations with similar characteristics that have significant implications for the determination of .“

The objective of segmentation is to identify groups with similar requirements so that they can be served effectively while being of a sufficient size for the product or service to be supplied efficiently. Generally three criteria can be used to identify different market segments: 1) Homogeneity (common needs within segment) 2) Distinction (unique from other groups) 3) Reaction (similar response to market)

A market segment is a small unit within a large market comprising of likeminded individuals. One market segment is totally distinct from the other segment. A market segment comprises of individuals who think on the same lines and have

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similar interests. The individuals from the same segment respond in a similar way to the fluctuations in the market. BASIS OF MARKET SEGMENTATION gender The marketers divide the market into smaller segments based on gender. Both men and women have different interests and preferences, and thus the need for segmentation. Organizations need to have different marketing strategies for men which would obviously not work in case of females The segmentation of the market as per the gender is important in many industries like cosmetics, footwear, jewellery and apparel industries. age group Division on the basis of age group of the target audience is also one of the ways of market segmentation. The products and marketing strategies for teenagers would obviously be different than kids.

- Age group (0 - 10 years) - Toys, Nappies, Baby Food, Prams - Age Group (10 - 20 years) - Toys, Apparels, Books, School Bags - Age group (20 years and above) - Cosmetics, Anti-Ageing Products, Magazines, apparels and so on income Marketers divide the consumers into small segments as per their income. Individuals are classified into segments according to their monthly earnings. The three categories are: - High income Group - Mid Income Group - Low Income Group

Stores catering to the higher income group would have different range of products and strategies as compared to stores which target the lower income group. marital status Market segmentation can also be as per the marital status of the individuals. Travel agencies would not have similar holiday packages for bachelors and married couples. occupation Office goers would have different needs as compared to school / college students. THE PROCESS OF MARKET SEGMENTATION the disaggregated market: - Consist from dispersed individual clients - C1 – C9 circles = clients - All types of markets before segmentation the segmented market: - Customers are grouped into segments - In the same group are customers with similar characteristics and attitudes - The Company is preparing special product for the selected segment

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CRITERIA FOR SEGMENTATION

Three main groups: - Behavioural criteria - Psychographic criteria - Profile criteria a) Behavioural criteria Describe the buying patterns and the human acting This group includes specific criteria, the construction of which is based on the marketer’s experience and skills b) Psychographic criteria Are used when researchers believe that purchasing behaviour is correlated with the personality or lifestyle of consumers This form of segmentation attempts to group people according to their way of living as reflected in their activities, interests and opinions. These variables help companies to construct product with specific design or functions, which are applicable only for one type of segment.

Personality: Extroverts, introverts, aggressive, submissive… c) Profile criteria Describe the demographic, socioeconomic and geographic properties of customers

Examples: Age, Gender, Life cycle (young single, young couples, young parents, retired), Social class (white-collars, blue-collars, upper middle, unwaged), Income, Residence, Property relations. BARCLAYS CASE STUDY

Barclays is a global bank. It provides a range of financial services in 56 countries. Barclays provides retail banking services to customers, whether they are individuals or businesses. It offers a broad range of financial products and services including current accounts, savings accounts and general insurance.

Different kinds of customers represent distinct markets for Barclays. The market for personal banking services is very competitive. Personal customers have a choice of banks on the high street or on the web to assist them in managing their finances. For example, they can have their salaries paid into accounts, pay bills through the bank or save money to gain interest on their savings.

There is also a competitive market for business banking services. Businesses require different services such as credit management, payments for suppliers or loans and overdrafts to help them to survive and grow. For example, an expanding business may need a mortgage to buy a new building.

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Market segments Each market is capable of being further sub-divided into segments. A market segment is a part of a whole customer group that shares particular characteristics. These include such factors as age, life stages, geography or occupation.

Within the market of personal banking, the segments could include categories such as: - Students - Graduates - new to work' - mature - families

By identifying different market segments, organisations can ensure they are providing products or services to meet the needs of these customers.

In addition to this, appropriate promotional techniques can be used to reach the people in the separate segments.

Through segmentation, Barclays has been able to devise appropriate banking offers for customers in different segments. This approach is helping Barclays to improve its market share of the student accounts market. Barclays believes students constitute a very important market segment for the business. Students may be choosing a bank for the first time and Barclays hopes to retain these customers.

By focusing on the specific needs of this segment, Barclays hopes to attract more student customers and keep them in the long term. Using market research has enabled Barclays to identify the right product offer that will meet their needs.

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