AB1501

Marketing
Lecture 02
and 03

boonchong@ntu.edu.sg
6790-5710
Analysing the Marketing
Landscape
Microenvironment
 The Company
Top Management
Finance
R&D
Purchasing
Operations
Accounting
Human Resource
Chapter 1 (p. 21) and Chapter 3 (p. 73)
 The Company
Identify and assess the existing and
potential resources:
Quantity and Quality of the Resources Available
SWOT
Nature of the Resources
(TOWS)
Extend to Which the Resources are Unique

Strength or Weakness
Source: Philip Kotler, Hermawan Kartajaya, Hooi Den Huan
and Sandra Liu, Rethinking Marketing, Prentice Hall, 2007
 The Suppliers
Suppliers provide the
resources needed by the
company for producing
its goods and services.

They should be treated as

partners to provide
customer value.
Chapter 1 (pp. 21-22), Chapter 3 (pp. 73-74), and Chapter 12 (pp. 375-376)
The Marketing
Intermediaries
• Help the company to find
Resellers customers or make sales to
them
Physical Distribution • Help the company with the
Firms logistical function
• Help the company to target and
Marketing Services
promote its products to the
Agencies right markets
• Help the company to finance
Financial
transactions or insure against
Intermediaries the risks
Chapter 1 (pp. 21-22), Chapter 3 (p. 74), Chapter 12-13, and Chapter 15 (pp. 496-498)
The Competitors
Firms must gain
advantage by
positioning their
offerings strategically
against competitors’
offerings.
Chapter 3 (p. 75) and Chapter 18
 The Competitors

Chapter 18 (p. 596)

Participate in the Polls
In order to participate
in the poll, scan the QR
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following link:

www.wooclap.com/JNKJLC
 The Competitors
Identifying Competitors

Ways to
Identify
Competition

Industry Perspective Market Perspective

What Companies are in the Same What Companies Satisfy the Same
Industry as You? Customer Needs as You?*

* Understanding marketing myopia is important. Chapter 18 (pp. 578-579)

 Identifying Competitors
The Competitors Market • Has the Largest
Leader Market Share

Market • Fighting to Increase

Challenger(s) Market Share

Market • Hold Onto Their

Follower(s) Market Share

Market • Serve Small Segments

Nicher(s) that are Uncontested
Chapter 18 (pp. 588-595)
“There are now 11 telcos in Singapore, including the mobile virtual
network operators (MVNOs) that have since flooded the scene…..
Knee-deep in a price war even before TPG has launched its full
commercial services, the three incumbent telcos have seen their
profit margins erode in recent years.” Source: Channel NewsAsia
“Netflix, Hulu, Amazon Prime Video and others are about to come head-to-head with
the likes of Disney Plus, Apple TV Plus, HBO Max and CNBC's parent company,
NBCUniversal. It's been dubbed the streaming wars.” Source: CNBC YouTube
 The Competitors
Assessing the Competitors
Objectives

Strategies Adopted

Strengths / Weaknesses

Possible Reactions

Chapter 18 (pp. 579-582)

 The Competitors
Selecting Competitors to Attack or Avoid
Uncontested
market spaces**
Strong Weak

Close Distant

** View HBR video “The Explainer:

Blue Ocean Strategy” about the
Good Bad* brief explanation about the blue
ocean strategy.

* Read TODAY Online article “Luckin, the Chinese challenger to

Chapter 18 (pp. 583-585) Starbucks, is burning cash but can it avoid Ofo’s fate?.”
 The Customers
Consumer • Individuals and households that buy
International Markets*

goods and services for personal

Markets consumption

Business • Organizations that buy goods and

services for further processing or for
Markets use in their production process

• Government agencies that buy goods

Government
Markets
*Refer to McKinsey’s report on their
predictions on the China market for 2020.
and services to produce public
services or transfer the goods and
services to others who need them
Chapter 3 (pp. 74-75), Chapter 5,
Chapter 6, and Chapter 19
 The Customers
Business Markets (Vs. Consumer Markets)
Demand Market Structure

Derived Demand
Fewer and
Larger
Higher Fluctuation
in Demand More
Geographically
More Inelastic Concentrated
Demand
Chapter 6 (pp. 177-178)
 The Customers
Business Markets (Vs. Consumer Markets)
Decision Characteristics Nature of Buying Unit
More Complex More Decision
Participants
Larger Sums of
Money Involved Professional
Purchasers
More Formal Process

Higher Buyer and Harder to Identify

Supplier Dependency Decision Participants
Chapter 6 (pp. 179-181)
 The Customers
Building Customer Relationships
Potential Profitability

High Butterflies True Friends

Profitability

Low Stranger Barnacles

Profitability
Short-Term Long-Term
Customers Customers
Projected Loyalty

Chapter 1 (pp. 23-24)

The Customers
Consumerism
The organised
movement of citizens
and government
agencies to improve
the rights and power
of buyers in relation
to sellers.
Source: case.org.sg
* Review Oxfam website “Select a Brand: Who Owns
the Brands You Love and How Have They Scored?”. Chapter 20 (pp. 652-653)
 The
Publics

Chapter 3 (p. 75)

 Customer-Driven
Marketing Strategy
Segmentation
Market Segmentation
Market segmentation is the
division of a heterogeneous
market into distinct groups of
buyers who:
Have Distinct Needs,
Characteristics, or Behaviour
Require Separate Products or
Marketing Mixes
Chapter 2 (pp. 53-54) and Chapter 7 (p. 207)
Segmenting the
Consumer
Markets

Chapter 7 (208-216)
Geographic
Segmenting the
Segmentation Consumer Markets
Countries

Regions

City Size

Density
Source: Google Maps

Climate
Chapter 7 (pp. 208-209)
Segmenting the Demographic
Consumer Markets Segmentation

Chapter 5 (pp. 145-148) * Read TODAY Online article “Rethinking Singapore’s

and Chapter 7 (pp. 209-211) Approach to Diversity and Social Inclusion”.
“A recent OCBC Bank survey found that about 60 per
cent of those earning more than $10,000 a month
admitted they wouldn't be able to last more than six
months if they were to suddenly lose their income.
Close to 30 per cent said they wouldn't last beyond
three months, and the remaining 10 per cent said they
had managed to save emergency funds amounting to
only one month of their usual income.”
Source: The Straits Times

Food for Thought: Why do you

think some high-income earners
do not have sufficient savings?
 Segmenting the Consumer
Markets Psychographic Segmentation
People in the same
demographic group
can have very different
psychographic
characteristics.
* View CNA video “Regardless of Class” Food for Thought: Do we
about the challenges of the class divide automatically classify people into
in Singapore. “classes” and assume their
behaviours in various circumstances?

Chapter 5 (p. 142, pp. 148-150, and pp. 164-165) and Chapter 7 (p. 212)
 Segmenting the
Consumer Markets
Psychographic Segmentation
An example of
psychographic
segmentation is the
VALS (Values and
Lifestyles Systems)
Source: Strategic Business Insights Framework.
Chapter 5 (pp. 148-150)
 Behavioural
Segmenting the Segmentation*
Consumer Markets Focus on
Benefits User whether
Occasions people
Sought Status
purchase a
Usage Loyalty product or not,
Rate Status*
how much, and
* Read BBC News article “What Do Prince Charles and how often they
Ozzy Osbourne Have in Common?”.
** Read Nielsen article “Nielsen: Consumer use it.
Disloyalty is the New Normal”. Chapter 7 (pp. 212-216)
 Segmenting the
Business Markets
Source: gov.sg

Business marketers can

utilize many of the
segmentation variables used
for consumer markets.
Business marketers can also
utilize variables such as:
Chapter 7 (pp. 216-217)
Requirements for
Effective Segmentation
To be useful, market segments must be:
Measurable
Accessible
Substantial
Differentiable
Actionable
Chapter 7 (p. 218)
 Customer-Driven
Marketing Strategy
Targeting
Targeting
The process of
evaluating each
market segment’s
attractiveness and
selecting one or
more segments to
enter.
Chapter 2 (p. 54)
and Chapter 7 (p. 207 and pp. 219-225)
Evaluating the Target
Segment(s)

Chapter 7 (pp. 219-220)

Targeting Strategies

Chapter 7 (pp. 220-224)

Choosing a
Targeting Strategy
Company Resources

Product Variability

Market Variability

Product Life-Cycle Stage

Competitor’s Marketing
Strategies Chapter 7 (pp. 224-225)
Socially Responsible
Target Marketing

Source: The Guardian

Chapter 7 (pp. 225-227) and Chapter 20 (pp. 649-650)

“A diet heavy on cheap, modern
food like instant noodles that fills
bellies but lacks key nutrients has
left millions of children unhealthily
thin or overweight in Southeast
Asia, experts say.”
Source: Channel NewsAsia
Review the video starting from 4:42 for ethical concerns of targeting
young children with “educational” videos. Source: WSJ YouTube
 Segmentation and
Example Targeting
Male Female

Working
Adults 1 2
Full-Time
Students 3 4
Retirees and
Unemployed 5 6 Source: theguardian.com
Segmentation and
Targeting Example
Male

Working Retirees and

Students
Adults Unemployed

Users Non-Users Ex-Users Users Non-Users Ex-Users Users Non-Users Ex-Users

Female

Working Retirees and

Students
Adults Unemployed

Users Non-Users Ex-Users Users Non-Users Ex-Users Users NonUsers Ex-Users

Segmentation and Targeting
Example
Male
50

Working Retirees and

Students
Adults
25 12 Unemployed
13

Users Non-Users Ex-Users Users Non-Users Ex-Users Users Non-Users Ex-Users

3 20 2
Female
50

Working Retirees and

Students
Adults Unemployed

Users Non-Users Ex-Users Users Non-Users Ex-Users Users NonUsers Ex-Users

 Customer-Driven
Marketing Strategy
Positioning
and Differentiation
 Positioning
The arranging for a product to occupy a
clear, distinctive, and desirable place
relative to competing products of the
target consumers*.
* Read Fast Company article
“The cult of Crocs: Can the
brand make a comeback by
fighting its haters?”.

Chapter 1 (p. 10 & pp 15-16),

Chapter 2 (pp. 54-55), and
Chapter 7 (p. 207, p. 225, & pp.
227-228) Source: Fast Company
“These are Crocs. And a lot of people think they’re really ugly.
People who love to hate Crocs had cause to celebrate in 2008, when
investors were writing the company off as a passing fad. Crocs lost
over $185 million that year and cut 2,000 jobs….. But over the next
decade, Crocs would go on to sell 700 million pairs of shoes
worldwide. Recently, the clogs have have been strutting down
runways at luxury fashion shows.” Source: CNBC Make It YouTube
 Positioning
Perceptual
positioning maps
show consumer
perceptions of their
brands versus
competing products
on important
buying dimensions.
Chapter 7 (p. 229)
 Differentiation
The firm has to
create superior
customer value
with its marketing
offering to
support its
positioning.
Chapter 2 (pp. 54-55), Chapter 7 (p. 207),
and Chapter 18 (pp. 587-588)
Choosing a Differentiation
and Positioning Strategy

Chapter 7
(pp. 229-234)
Choosing a Differentiation
and Positioning Strategy
Identifying Possible Value Differences
and Competitive Advantages
Companies can Product Differentiation
provide superior Service Differentiation*
value through: Channel Differentiation
* Read BBC News article “How
Cinema is Striking Back Against People Differentiation
Home Entertainment”.
Chapter 7 (pp. 230-231) Image Differentiation
and Chapter 8 (p. 273-274)
 Choosing a Differentiation
and Positioning Strategy
Choosing the Right Competitive Advantage
Difference(s) to promote should be:
Important Distinctive Superior

“Chick-fil-A is expanding off the

Preemptive Affordable Profitable strength of its simple chicken
sandwich. WSJ explains how its
leaner menu helps the company
avoid some of the pitfalls of its
Communicable competitors.”
Chapter 7 Source: WSJ YouTube
(pp. 231-232)
Choosing a Differentiation
and Positioning Strategy
Selecting Overall Positioning Strategy

*View
Euromonitor
International
video
“Megatrends –
Premiumisation”.
Chapter 1 (p. 10 & pp. 15-16)
and Chapter 7 (pp. 232-234)
As for marketers of luxury brands, Read
said that the value of luxury goods will be
associated with perceived scarcity. ‘It is
vital for luxury brands not to allow their
goods to be seen as too widely accessible,
because then they will be treated as less
valuable.”
Source: Channel NewsAsia
Choosing a Differentiation
and Positioning Strategy
Developing a Positioning Statement

To (target segment
and need) our
(brand) is (concept)
that (point of
difference).

Chapter 7 (p. 234-235)

 Alternative Model
Brand
Integrity
POSITIONING DIFFERENTIATION
Being strategy Core tactic

BRAND
Value indicator Source: Kotler, Kartajaya,
Hooi ,& Liu. Rethinking
Marketing, Prentice Hall,
2007.
“Our vision is that no one should be seriously injured or
killed in a new Volvo car by 2020. Since 1927, when the
founders of Volvo Cars decided to focus on safety as one
of the core values of the company, we have been a leader
in the field. That will never change. What will change is
the breadth of technologies we employ to improve your
driving experience and safety.” Source: Volvo.com
Alternative Model Example
Brand
Integrity
POSITIONING
DIFFERENTIATION
The World’s
Safety Features
Safest Car

Source: Kotler, Kartajaya,

Hooi ,& Liu. Rethinking
Marketing, Prentice Hall,
2007.
IS Volvo about to become "Slowvo"? The Swedish car maker has
announced that it will limit the maximum speed of its new cars to 180
kmh from next year onwards. The move is part of the safety-minded
brand's ambitious goal to ensure that no one is killed in a Volvo by 2020….
It is also researching how to use geofencing to automatically slow its cars
down around schools and hospitals. Apart from cutting speed, the
company is now looking at ways to tackle other dangerous driver
behaviour. "We want to start a conversation about whether car makers
have the right or maybe even an obligation to install technology in cars
that changes their driver's behaviour, to tackle things like speeding,
intoxication or distraction," said Håkan Samuelsson, president and chief
executive of Volvo Cars. Source: The Business Times
 Customer-Driven
Marketing Strategy
Marketing Mix
(Overview)
Communicating and
Delivering the
Chosen Position
The company has
to design the
marketing mix
(4Ps) to deliver
that position.
Chapter 2 (pp. 55-56)
and Chapter 7 (pp. 234-235)
 Marketing
Mix*
A thorough
understanding
of the target
customers is
essential.
* View CNA Insider video “A
for Tokyo’s Elderly” for
example of a service designed
specifically for one of the
Chapter 2 (pp. 55-56), Chapter 7 (pp. 234-235) and Chapter 8-17 mall’s target segments.