Assignment
1. Define functions of marketing in your own words. Using an example, explain how they can be shifted and shared.
The functions of marketing consist of: buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information. In other words, the functions listed above are needed in macro-marketing systems to get products manufactured and made available to the consumer more efficiently; this means that a function can be eliminated. For example, the functions listed above can be shifted and shared, so not every step that is taken by every supplier/ producer. An example would be a hair stylist not having to pay for a salon/ location but he/she would need a place to store his/her supplies.
2. Give examples of some of the benefits and costs that might contribute to the customer value of each of the following products: (a) a wristwatch, (b) a weight-loss diet supplement, (c) a cruise on a luxury liner, and (d) a checking account from a bank.
a) Wristwatch:
Benefits - the style and you always know the time
Costs - price and repairs
(b) Weight loss diet supplement
Benefits - weight loss and self-esteem
Costs - price and side effects
(c) Cruise on a luxury liner:
Benefits - fun (i.e. live entertainment) and peace
Costs - price and sea sickness/ claustrophobia
(d) Checking account from a bank:
Benefits - security and convenience (i.e. online banking and direct deposit if your employers offers it)
Costs - start up costs and fees (i.e. overdraft)
3. Explain how many opportunities may be seen by defining a firm's market more precisely. Illustrate for a situation where you feel there is an opportunity - namely, an unsatisfied market segment - even if it is not very large.
Many new opportunities can be seen by defining a firm's market more precisely because it reveals things that weren't seen before. Defining a firm's market identifies new types of buyers, new ways to satisfy buyers, estimates of market sales potential, sale forecast and much more. These things can be discovered using an opportunity analysis, it consists of: opportunity identification, opportunity-organization matching, and opportunity evaluation. Market segmentation also identifies new development opportunities have two types: socioeconomic characteristics of consumer and behavioral variables.
A situation where I feel there is an unsatisfied market segment is a custom wig store. It is measurable, differentiable, accessible, and substantial. Who are they: the buyer would be someone that has knowledge about hair, what: a custom wig store, how: obtain a hair supplier, location and stylist(s), when: right after tax season in the spring when its warm outside, where: in a suburbs with a presence of minorities, why they want to buy: there is a large segment, supply is high and demand is low.
The Marketing Plan Questions
What is the target market for this marketing plan?
HVC suggested using two different target markets in this marketing plan. They are: (1) to attract and retain new customers with small pets within a 10 miles radius and (2) to keep their current customers and continue gaining current customers.
b. What is the strategy Hillside Veterinary Clinic intends to use?
Hillside Veterinary Clinic (HVC) intends to use two different market strategies. HVC wants to attract new customers and focus on current customers and objectives (this will cause HVC to use their health screening and dental services). The reason HVC is using two market strategies is because they found two related but different target markets for their services.