6. Before we move to M.P Let’s
Discuss the Following first
Marketing
mix
4 C‟s & P‟s
Market Segmentation
Target Market
Marketing Strategies
7. Marketing Mix Defined
Marketing mix is the set
of marketing tool that the
firm uses to pursue its
marketing objectives in the
target market.
Now what these tools are….
8. Let‟s just say that ….
When marketing those products a firms
need to create a successful mix of:
the right product
sold at the right price
in the right place
using the most suitable promotion
9. To create the right marketing mix, businesses
have to meet the following conditions:
The product has to have the right features - for
example, it must look good and work well.
The price must be right. Consumer will need to
buy in large numbers to produce a healthy
profit.
The goods must be in the right place at the
right time. Making sure that the goods arrive
when and where they are wanted is an
important operation.
The target group needs to be made aware of
the existence and availability of the product
through promotion. Successful promotion
helps a firm to spread costs over a larger
output
10. Marketers use numerous tools to elicit desired
responses from their target markets. These tools
constitute a marketing mix.
11. Well what you know we have
actually discussed the 4 P‟s of
Marketing mix. Now what were 4
C‟s my mate was talking
about….
I‟d say to achieve 4 P‟s we need to
convert 4 P‟s into 4 C‟s without
that We can‟t Complete
marketing mix. And its also
important for the purpose to
market the product.
13. The product part of the Four Ps model is replaced by
consumer or consumer models, shifting the focus to
satisfying the consumer.
Product is replaced by Customer: You have to
study consumer wants and needs and then attract
consumers one by one with something each one
wants. It is to create a custom solution rather than
pigeon-holing a customer into a product.
Pricing is replaced by cost, reflecting the reality of
the total cost of ownership. Many factors affect cost,
including but not limited to the customers cost to
change or implement the new product or service and
the customers cost for not selecting a competitors
capability. You have to realize that price - measured
in dollars - is one part of the cost to satisfy. If you sell
hamburgers, for example, you have to consider the
cost of driving to your restaurant, the cost of
conscience of eating meat, etc.
14. Place is replaced by the convenience function. With the
rise of internet and hybrid models of purchasing, place is
no longer relevant. Convenience takes into account the
ease to buy a product, find a product, find information
about a product, and several other considerations. You
have to know how each subset of the market prefers to
buy - on the Internet, from a catalogue, on the
phone, using credit cards, etc. Lands End
clothing, Amazon Books and Dell Computers are just a
few businesses who do very well over the Internet.
Promotions feature is replaced by communication.
Communications represents a broader focus than simply
promotions. Communications can include
advertising, public relations, personal selling, viral
advertising, and any form of communication between the
firm and the consumer. Be creative and you can make
any advertising "interactive". Use phone numbers, your
web site address, etc. to help here. And listen to your
customers when they are "with" you.
15. Now winning companies will be those who
can meet customer needs economically
and conveniently and with effective
communication. How it can be done see for
yourself.
17. Target Marketing Defined
A target market is a group of customers that
the business has decided to aim its
marketing efforts and ultimately its
merchandise towards. A well-defined target
market is the first element to a marketing
strategy The marketing mix variables of
product, place (distribution), promotion and
price are the four elements of a marketing
mix strategy that determine the success of
a product in the marketplace.
18. Target marketing means identifying specific
market segments within a larger audience
and targeting them with ad campaigns.
This process is commonplace in marketing
and helps companies get more value for
their advertising investment. It goes against
historical approaches to marketing
whereby companies would simply pay to
deliver messages to mass markets without
considering the waste in paying to reach
consumers who would never buy. By
targeting select markets, businesses with
tight budgets can get more return from their
advertising dollars.
19.
20. Segmentation
Segmenting means breaking up the market into
smaller, homogeneous segments. Within S-T-P, it is
a virtual brainstorming step where by the business
considers all possible market segments. Segmenting
strategies
include
demographics, lifestyle, geographic and behavioral
approaches. Demographics segmentation means
you break up markets based on personal traits like
age, race, marital status, gender and income.
Lifestyle segmenting means you divide customers by
hobbies and interests. Geographic segmentation
makes local, state, regional, national or international
markets key. Behavioral segmenting is based on
such things as usage patterns and benefits sought
from the product.
21. Targeting
Following the brainstorming of possible
segments in step one, the next step is to
pick a select market to target or focus on.
Companies often focus on one market
segment at a time with marketing and ad
campaigns. Whichever market is the most
attractive from a profit standpoint or longterm potential is usually selected first.
Factors including size of the
market, growth potential and competitive
intensity impact the perceived opportunity
in targeting a given market.
22. Positioning
Positioning is how the company wants the
targeted market to perceive its brand or
product. Some companies make quality a key
positioning message and try to market their
product as top quality for the target market
segment. Other qualities commonly used to
differentiate include service, unique
features, environmental friendliness, family
friendliness, safety, reliability, durability and
low cost. The key is to stand out from
competitors with a unique message that
appeals to the interests of the targeted market
23. Market Segmentation Defined
Philip Kotler's Says Market Segmentation
Is Subdividing Of Market Into
Homogeneous Sub Set Of Customers
Where Any Subset May Conceivably Be
Selected As Marketing Target With To
Be Reached With Essays and Term
Papers .
24.
Marketers can rarely satisfy everyone in
the market. So they start with ‗ market
segmentation„.
Identify and profile different groups of
buyers.
Target segments that present the
greatest opportunity – those whose
needs the firm can meet in a superior
fashion.
For each chosen target market, the firm
develops a market offering, which is
positioned as offering some central benefit
Marketers view the sellers as
constituting the industry and the buyers
as constituting the market.
25. Markets May Be Segmented
On Following Grounds.
Need markets (the diet seeking market)
Product markets (the shoe market)
Demographic markets (the youth
market)
Geographic market (the French market)
Other markets like voter markets, donor
markets and labor markets.
Marketplace v/s market space – physical
v/s digital
26. Marketing Strategies
Defined
Marketing strategy is defined by David Aaker as
a process that can allow an organization to
concentrate its resources on the optimal
opportunities with the goals of increasing sales
and achieving a sustainable competitive
advantage. Marketing strategy includes all
basic and long-term activities in the field of
marketing that deal with the analysis of the
strategic initial situation of a company and the
formulation, evaluation and selection of
market-oriented strategies and therefore
contribute to the goals of the company and its
marketing objectives
27. Product imitation could be better than
product innovation. In industries with low
image differentiation, comparable service
quality, price sensitivity. There is high
possibility of price wars. Strategy against
short run gains but for long term
sustainability. Market follower – know to
hold on to current customers – win a
fair share of new customers – distinctive
advantages in
location, services, financing – low
manufacturing costs – high product &
service quality – new market penetration
28. Four Broad Strategies
Counterfeiter: duplicate leader„s product &
package sell it in the black market through
disreputable dealers.
Cloner: emulate leader„s
products, name, and packaging, with slight
variations.
Imitator: copy some things from the
latter but maintain differentiation in
packaging, advertising, pricing, etc.
Adapter: take the leaders products and
adapt or improve them. Choose to sell to
different markets. Grows into the future
challenger.
30.
Company History:
Founded 1937 by Paul and Marie Lamfrom in Portland, Oregon. Began as
a small hat distributor but quickly expanded into
outerwear, sportswear, footwear, accessories, and equipment.
Mission Statement:
“Columbia Sportswear outfits outdoor enthusiasts with unmatched
performance and advanced technology from head to toe with
outerwear, sportswear, footwear, and accessories”
Key competitors: The North Face, Patagonia, Timberland
Industry Background
Apparel Manufacturing Industry, (subsector Outerwear Manufacturing)
$7.2 Billion, 6% growth - 2006
2012
2011
2010
2009
2008
Net Sales
$1,356,039
$1,287,672
$1,555,791
$1,095,307
$951,786
Net Income
$144,452
$123,018
$130,736
$138,624
$120,121
31.
Our recommendation is to expand into sports equipment industry by offering a full line of
snowboards and snowboard equipment.
This strategy fits with Columbia‟s mission statement of offering high quality “head to toe” products
for outdoor enthusiasts.
Sports Equipment Industry Five Force
Analysis
Threat of Entry: Low. High Brand
Awareness, economies of scale.
Supplier Power:
Raw materials (wood)
are plentiful, no threat
of forward integration.
Low.
Industry
Rivalry: Medium.
Products are interchangeable
Numerous established
competitors
Substitutes: Medium. Other
extreme sports such as mountain
biking, climbing, etc
Buyer Power: Low.
products sold through many
smaller retailers with
limited bargaining power.
32. Strengths:
- Strong brand-name that is
synonymous with quality and
durability
- Healthy financials
- Innovative marketing
-Reputation as an eco-friendly
company
Weaknesses:
- Slowdown in revenue growth due
to increased costs and increased
competition
- International expansion has not
been very successful
Opportunities:
-Very fast growing industry
- Strong demand for high quality,
durable products
- Emerging markets show good
future potential
Threats:
-Economic slowdown may
negatively affect demand
- Unpredictable seasonality and
warmer winters may reduce
demand
- Burton Snowboards is a very
strong competitor
33. - Columbia‟s strategic
growth entails expanding
product offering for every
outdoor segment
- Our recommendation is
to acquire a premium
snowboard manufacturer
and market their products
under Columbia brand
34.
35.
Segment: regular snowboarders-practitioners
Growth rate: 30%
Access to segment: accessible
Geographic concentration: US and Europe
Emotional motives: high
Company fit & ease of business
Other business opportunities provided by the
segment: immersion in extreme-sports!
36. Demographics
most snowboarders are 12-to-24-year-olds
females make up roughly 25 percent
Geographic targeting: US (38 states)
Social/cultural influences
inspired by surfing and skateboarding
came to rebel the more sophisticated way of skiing
Snowboarders stereotypes: "lazy", "grungy", "punk", "stoners", "troublemakers"
Purchasing behavior: high appealing durable good
less frequent purchases
greater consumer investment
more intensive personal selling
37.
38. Achieve market share large enough to consolidate the new product line
as a strong competitor in the market.
Create an association of snowboarding equipments and Columbia‟s
name inside the target audience‟s minds.
Making Columbia‟s snowboards available and reachable for any
American customer.
Convey a high-quality message about the new product line to the
target audience.
Achieve 5% of market share in revenue measure ($24.4M annual
sales) in the second year.
Sponsor 2 of the 5 best snowboarding professionals in the United
States at the end of 1 year.
Sponsor at least 2 major US snowboarding competitions at the end of
1 year.
Having snowboards available in all states where snowboarding resorts
are popular at the end of 1 year.
Reach superior product performance indicators than any industry
competitor in 1 year
39.
40. a board that slides on snow
shape with front and back upturned
high speed and agility; no
scratches, and graphics printed on both sides.
3-years warranty; free
engraving; option to customize
boards made of lighter materials,
such as titanium, aluminum, or carbon fiber.
41. Performance
high performance levels
constantly assessed: indoor, in a science lab; and
outdoor, a team of pros and amateurs will take the boards
to the slopes and subject them to different riding styles and
terrains
Price-value-quality relationship
• both amateurs and professionals it
is imperative to deliver a high valueadded product
• practice of higher prices than the
average of competition
