Marketing SAQ

1. Marketing segmentation
-Divide market into smaller segments of buyers with distinct needs,
characteristics, behaviours
-Buyer in any market differ in their needs, wants, resources, location, buying
attitudes. Through MS they divide large market into smaller segments that can be
reached efficiently and effectively.

(i) Geographic
-divided into nation, country, state, city, region
-Adjust their products to fit the local needs of the place
- Localize products, advertising, promotion and sales to fit the local area.

In Hispanic neighbourhoods Ll in
Texas, Walmart has more Hispanic
focused stores with the
signs/product assortment and all
being in bilingual. Msia also got
things in Malay and English
MCD offers only halal stuff
although other countries offer
pork ours doesnt bcs Malay
sensitivity
Store timings also: Shopping malls in rural
areas close earlier than in KL
- Bank is open from 9-5
- Malls open from 11-10 (to capture
more customers after workhours)

(ii) Demographic
-divide into segments based on age, gender, education, family size, life
cycle, income, race, religion
-Most popular bases for segmenting customers bcs usually needs and
wants of customers usually closely related to these demographic needs.

In cinema diff age groups diff price Gender segmentation usually for
Old- cheaper Hhh
Adult-normal like clothes, cosmetics, magazines.

Child below 3 free Theres Garnier for men

facewash/for women
Student -Discount

(iii) Psychographic
-Divides buyers into social class, lifestyle, personality characteristics,
- People in the same demographic g can have very different psychographic
characteristics
- marketers segment their product by consumer lifestyles and base their
marketing strategies on lifestyle a

Use personality variables to Lifestyle= Gucci/Prada etc target the

segment mkt rich people

-Certain activities like rock climbing Daiso- target the low-middle income
attracts high energy people with people
their promotion etc
 (iv) Behavioural
Divides buyers based on their knowledge/attitudes/uses/responses to a
product
Occasions- can be grouped based on when the idea for them to buy the
product was sparked/ actually make the purchase or use the purchased
item.
E.g.: Mothers Day and Fathers Day was to increase sale of flowers and
stuff/ Seasonal sale is there during Christmas/ new year/ Deepavali
Benefits Sought: group buyers into different benefits they seek from
product. Find the kind of benefit they look from a product
(Car dealer egg: Male want- (horsepower, fuel consumption)
Female- (Safety, design, style)
User Status: segmtd into users, nonusers, exusers, potential users.
Usage rate : light, medium, heavy product users
Loyalty status: They hve like a cult status like Apple.

SAQ 2: Consumer Product

Product is anything that can be offered in a market for attention, acquisition use or
consumtion that might satisfy a want or a need of consumers. CP are products and
services bought by final consumer for personal consumption. Usually classify it based on
how the consumers buy the product.
Define product and the three levels of it
-core customer value, actual product, augmented product.
Each level adds more value to the product. Core customer value addresses the question like
what the buyers really are buying ? Why are they buying? For example a lady buys red lipstick
because nice color for makeup but also buys it bcs wanna feel empowered. So when designing
the product they must first define the core, problem solving benefits or services that the
consumers seek. At the second level they must turn it to like an actual product. They have to
develop the legit product and service features then a quality level and brand+ packaging.
Finally they must build augmented product. Like iphone isnt really new like ip 6 and 5 isnt
new If you compare they just have added a couple of features. SO they build the augmented
product around the benefit and actual product by offering additional consumers service and
benefits.
(i) Convenience- something bough often/frequently
i. little planning, comparing, low customer involvement
ii. - low price
iii. widespread, available everywhere at convenient locations
iv. mass promotion
v. (toothpaste, pads, detergents)
(ii) Shopping Less frequently purchased
i. More planning, more effort
ii. Customer involvement more, brand comparison
iii. Higher price
iv. Selective distribution
v. (Television, furniture, clothes)
 (iii) Speciality - Unique stuff
i. Strong brand preference and loyalty
ii. Little brand comparison
iii. Low price sensitivity
iv. High price
v. Exclusive distribution
vi. Carefully targeted promo
vii. (Luxury goods, Rolex, cars, diamond)
(iv) Unsought Products - Something the consumers dont realize they need or dont
know about it.
i. Major innovations are UP until recognized
ii. Little product awareness
iii. Aggressive advertising
iv. Funeral casket, life insurance, blood donation

ESSAY!!!!!!!
Promotion mixes
1. What is promotion mix?
- It is called marketing communications mix.
- Consists of advertising, PR, direct marketing, personal selling, sales promo
- Tools are used to communicate to the consumers like why they should buy and
stuff. Persuasively convince them!!! Communicate customer value and build
customer relationship
2. 5 promotion tools are direct mkt, advertising, pr, personal selling, direct marketing

3. Push/Pull strategies
- PUSH involves pushing the product through marketing channels to final
customers. The producers direct its marketing activities towards channel members
to induce them to carry the product and promote it to the final consumers.
(promote to channel members then CM will promote to the final buyers)
- PULL involves the producer directs its marketing activities towards final
consumers to encourage them to buy the products. Spend a lot on advertising to
include final consumers to buy the product creating a demand vacuum that pulls
the product through the channel. If this method is effective, then the consumers
will demand to get it from the retailers. So, consumers demand pulls the product
through the channel?
Difference between Push and Pull
- It lies on how consumers are approached. Push mkt the idea is to promote product
by pushing them onto people. E.g.: Sales display at the grocery store
- Pull mkt is to establish a loyal following and draw consumers to the product
(Lamborghini, Porsche dont need to advertise already have a following)
Public Relations
- Build good relationships with the companies various publics by obtaining
favourable publicity; building up a good corporate image
- Handling or heading of bad rumours

1. Press relations or press agency

- Create and placing of newsworthy information to attract attention to a person/
product or service
2. Public affair
- Involves building and maintain national or local community relationship
3. Product publicity
- Involves publicising certain products
4. Lobbying
5. involves building and maintaining relations with legislators and government
officials to influence legislations and regulation
6. Development
Involves public relations with donors or members of non-profit organizations
to gain financial or volunteer support.

Role of public relations

It is used to promote product, people, places, ideas, activities and even orgz.
-Used to build good relationship with consumer, media, investor.
-To rebuild interest in declining commodities.
- For awareness, health stuff (Denggi/breast cancer)

Can have a stronger impact at a lower cost than advertising.

Doesnt pay for the space or time in media but it pays for the news to be
circulated by staff/ message developed by staff and managed.
-Creates a buzz, excites people to the extent sometimes no need like
advertising
Downside:

-handled by third party

-may not always share the same

ideas

Major public relation tools

1. News: create favourable news about the company

2. Speeches: must get questions from media or talk at trade associations or
sales meetings. These speeches can either increase or decrease the image
of the company
3. Special programs: firework show, press tour, grand opening, news
conferences, multimedia presentations.
4. Written material- brochures, articles, pamphlets, magazines
 5. Audio-visual, Public service actv ect

WEB also super imp

- Youtube, FB, Twitter, Instagram
- Can tell a story and spark a convo
- The companys website itself is super imp
Tools of promotion in general: Advertising, PR, Sales Promo, Personal selling, Direct Mkt
Essay 2!!!!
Stratergies for differentiation with diff example (product) using it
-Produces of convenience product (Tissue paper, pads, toothpaste,ciggs) and common raw materials
typically seek intensive distribution. Bcs the product is like needed everywhere so they gotta stalk it in
as many places as possible (outlets). These products must be available to where the customers need it.
They dont look at brand when buying such a product, price also cheap. If not yours then buy others
so they use this distribution stratergy to like expand. Its easier to find the product do more profit the
company will have.

-Some purposely use selective distrb.

Unlike intensive its not there everywhere and not like exclusive only there at limited places. A few
outlets with calculated potential are identified and then they are given the rights to stock and sell it.
Cars are example. Not the luxury kind but cheaper. Like Axia Proton ect. You see it at many dealers
but not all. Iphones also. Sold by them and also resellers. Develop good working relationship with
channel members and expect a better selling effort from their behalf. Gives producer good market
coverage, with more control and less cost than intensive distribution
Exclusive distrb
Enhances the image of the product bcs exclusive. Sold at very limited location/stores only. Its the
most extreme form of intermediaries. Found like for rly expensive cars and clothes and stuff. Bcs of
this distribution it allows for higer markups/price. Makes the product very atas. Gains stronger
dealer selling support , more control over the prices, promotion, and services.

Vertical Marketing System

Provides channel leadership and consists of producers, wholesalers and retailers acting as a unified
system. (Indirect distributin)
- Corporate marketing system
Intergrates successful stages of production and distribution under single ownership.
Buy over channel members. By doing so they can control the entire distribution chain so
everything like decisions are all under their control. (intergrates successful production
and distribution under single ownership.
- Contractual mkt syst
Independent firms of different levels of production and distribution who join together
through contracts to obtain more economies or sales impact than each could do alone. The
most common form is franchise. There are 3 kinds of franchise

- Administered VMS
Has a few dominant members with common ownership. Leadership comes from size
and power of one or a few dominant channel members.