Marketing Natural Resources CSS 385
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1 Marketing Natural Resources CSS 385 Buyer behavior segmentation Macroenvironment Horizontal diversification strategy Product attributes Psychographic information Economic models Life cycle stages Definition Marketing: A social and managerial process by which people and groups obtain what they need and want through creating and exchanging products and value with others Kotler, Bowen, & Makens (2003) 5 6 1
2 Elements of Marketing Exchange relationships Design products, services Distribution of products, services Promotion Determine price Maximize profit Maintain desired image Why Use Marketing? Understand types of experiences people want Provide those experiences that people want, need Make money Justify your existence Interact with other organizations, agencies Change behaviors 7 8 The Marketing Milieu Case Study: Nestle Competition Culture Economics Legalities Technology Social: babies declining Competition: recognized untapped market Economics: poor but also untapped Culture: idealizes West Technology: low, outside communication minimal Legality: ethics = U.N. code 9 10 Types of Marketing Types of Marketing Product variety marketing Mass Marketing
3 Types of Marketing Benefits of target marketing Target marketing t wasting time/resources Understand user groups Develop specific products/services Attract the type of customer you want Reciprocity: better product/service/market share etc Types of Segmentation Geographic Demographic Psychographic Behavioral Geographic Geographical units--examples Does it really matter? 0/daily22.html Age Sex Family size Income Occupation Education Religion Nationality Demographic Psychographic Attitudes, preferences, lifestyles I like to attend sporting events Very unlikely Highly Likely I prefer designated Wilderness to other public lands Strongly disagree Strongly agree
4 Psychographic You trust reason rather than feelings You are more inclined to experiment than to follow familiar approaches You feel involved when watching TV soaps When solving a problem you would rather follow a familiar approach than seek a new one Behavioral About how many commercial rafting trips have you been on? Product usage segmentation heavy medium light 20/80 rule Jen s survey REP scales Recreation Experience Preference (Driver) scales Identify recreation motivations in different types of recreationists Very common in natural resources REP scales To experience challenging rapids To experience a thrill To experience a sense of adventure versus To get away from the usual demands of life To avoid everyday responsibilities To feel as though I m on river time Three Motivating Factors (or why do we do what we do?) Status Impressing others Experience Social, active Principle right versus wrong Three motivating factors (or why do we do what we do?) Example: Elk hunting Status (prestige-seeking): reference group encourages behavior Experience: enjoy outdoors, shooting Principle: should not eat meat if unwilling to hunt
5 Types of communication Information appeal: facts and figures Expression: just because Persuasion: intentional; want reactions Example: Most UI students (58%) drink 0-4 drinks per week Most UI students (68%) drink once a week or less Most UI students (71%) never drink and drive Types of competitive strategies broad cost superiority: low cost, broad customer/geographical location broad differentiation: provide unique/specialized products/services to broad customer/geographic base Types of competitive strategies niche cost superiority: low cost products to specific customer base niche differentiation: provide different/unique products to specific customer base
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