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This slide deck was shared by Pranesh Mishra at the TiE Institute Knowledge Series in Mumbai in July2010. The deck covers some concepts in Marketing targeted towards early stage entrepreneurs. Related Videos http://www.youtube.com/watch?v=UsMdP4nkdC0 http://www.youtube.com/watch?v=PpJtQ50t4Vg
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SALES, MARKETING, BRANDING: WHAT’S THE DIFFERENCE?
04/08/2023 1
IT ALL STARTS WITH YOUR BUSINESS MODEL
04/08/2023 2
WHAT IS YOUR BUSINESS MODEL FOCUSED ON?
Business Models: The Possibilities….
• Production Focus:– Optimize production process to make large quantities at
reasonable cost
• Product Focus:– Make products with better quality, performance and innovative
features
• Sales Focus:– Aggressively push your product backed by promotional offers,
high voltage advertising
• Marketing Focus:– Select your target audience and build the right products for them
04/08/2023 3
Production Focus
Pros & Cons• Pros:
– Lower Price = more consumers
– Mass Consumer Base– Scale - Opportunity to build a
big brand.
• Cons:– Heavy investment requirement– High competitive pressure– Commoditization– Low Margins– Mass Market confinement
04/08/2023 4
Product Focus
Pros & Cons
• Pros:– Differentiated– Consumer preference– Higher margins
• Cons:– Innovation: high investment– Features do not always
add consumer value– Heavy communication &
distribution investment
04/08/2023 5
Selling Focus
Pros & Cons
• Pros:– Speed of growth– Measureable return on
sales investment– Opportunity to expand
territories
• Cons:– Consumer resistance– Lower loyalty – lower
image– High cost of sales
04/08/2023 6
Marketing Focus
Pros & Cons
• Pros:– Demand based– Opportunity to differentiate– Build loyalty– Long term brand building
• Cons:– More time consuming– Investment in research– Constant investment in
fine-tuning.
04/08/2023 7
So Which Focus Is Right?
ProductionFocus
Product Focus
Sales Focus Marketing Focus
• There are no right or wrong answers.
• All aspects are required but it is a question of identifying the focus area
• Studies have shown that “on an average” Marketing Focus gives better business results..
04/08/2023 8
Types of Marketing Orientation
Reactive
• Focus on consumers’ expressed needs
Proactive
• Focus on consumers’ latent needs
04/08/2023 9
BRANDS & BRANDING
04/08/2023 10
Brand as signature have existed for a long time….
“Brand is…”
“A term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller and to differentiate it from those of competitors.”
American Marketing Association
04/08/2023 11
How Branding Helps?
The consumers
• Help in quick decision on choice of product within a category by:– Identifying the
manufacturer– Setting expectations of
consistent quality– Assigning responsibility for
past performance
The manufacturers
• Simplify product tracing• Protect brand name and
trade mark• Legal protection of unique
features of the brand• Copyright and design
protection• Valuation of the IP rights
that encompass the brand
04/08/2023 12
HOW DO YOU EVALUATE BRANDING?
04/08/2023 13
Criteria for Choosing Brand Elements
04/08/2023 14
Memorable
Meaningful
LikeableTransferable
Protectable
Easy to recognize, remember and ask for?
Is it distinctive enough to be legally
protectable?
Can it be used for new products or
categories?
Does it reflect and build the core brand proposition?
Is it inherently likeable and aesthetically pleasant?
Criteria for Choosing Brand Elements
04/08/2023 15
Easy to recognize, remember and ask for?
Is it distinctive enough to be legally
protectable?
Can it be used for new products or
categories?
Does it reflect and build the core brand proposition?
Is it inherently likeable and aesthetically pleasant?
Memorable
Meaningful
LikeableTransferable
Protectable
Criteria for Choosing Brand Elements
04/08/2023 16
Memorable
Meaningful
LikeableTransferable
Protectable
Easy to recognize, remember and ask for?
Is it distinctive enough to be legally
protectable?
Can it be used for new products or
categories?
Does it reflect and build the core brand proposition?
Is it inherently likeable and aesthetically pleasant?
Which of these has better branding?
04/08/2023 17
Criteria for Choosing Brand Elements
04/08/2023 18
Memorable
Meaningful
LikeableTransferable
Protectable
Easy to recognize, remember and ask for?
Is it distinctive enough to be legally
protectable?
Can it be used for new products or
categories?
Does it reflect and build the core brand proposition?
Is it inherently likeable and aesthetically pleasant?
Adaptability of Google
04/08/2023 19
BRANDING BEYOND LABELING…
04/08/2023 20
Four Aspects of Brand Buiding
Who Am I?
•Brand Name•Heritage•Category
What can I do for you?
•Product Benefits•Reasons to believe
How would I make you feel?
•Emotional Benefits•Reasons to believe
What role do I play in your life?
• The larger purpose•How do I improve life?
21
Pepsodent Toothpaste
Who Am I?
•Brand Name•Heritage•Category
What can I do for you?
•Product Benefits•Reasons to believe
How would I make you feel?
•Emotional Benefits•Reasons to believe
What role do I play in your life?
• The larger purpose•How do I improve life?
22
Who Am I?
•Pepsodent•Challenger to Colgate•Oral health
What can I do for you?
•Fight against oral germs longer•Clinically proven
How would I make you feel?
• Confident that my family is well protected.•Even when they indulge
What role do I play in your life?
• Make me a better mom!•By allowing occasional indulgences
Pepsodent Toothpaste
Who Am I?
•Brand Name•Heritage•Category
What can I do for you?
•Product Benefits•Reasons to believe
How would I make you feel?
•Emotional Benefits•Reasons to believe
What role do I play in your life?
• The larger purpose•How do I improve life?
23
Who Am I?
•Pepsodent•Challenger to Colgate•Oral health
What can I do for you?
•Fight against oral germs longer•Clinically proven
How would I make you feel?
• Confident that my family is well protected.•Even when they indulge
What role do I play in your life?
• Make me a better mom!•By allowing occasional indulgences
Pepsodent Toothpaste
Who Am I?
•Brand Name•Heritage•Category
What can I do for you?
•Product Benefits•Reasons to believe
How would I make you feel?
•Emotional Benefits•Reasons to believe
What role do I play in your life?
• The larger purpose•How do I improve life?
24
Who Am I?
•Pepsodent•Challenger to Colgate•Oral health
What can I do for you?
•Fight against oral germs longer•Clinically proven
How would I make you feel?
• Confident that my family is well protected.•Even when they indulge
What role do I play in your life?
• Make me a better mom!•By allowing occasional indulgences
Pepsodent Toothpaste
Who Am I?
•Brand Name•Heritage•Category
What can I do for you?
•Product Benefits•Reasons to believe
How would I make you feel?
•Emotional Benefits•Reasons to believe
What role do I play in your life?
• The larger purpose•How do I improve life?
25
Who Am I?
•Pepsodent•Challenger to Colgate•Oral health
What can I do for you?
•Fight against oral germs longer•Clinically proven
How would I make you feel?
• Confident that my family is well protected.•Even when they indulge
What role do I play in your life?
• Make me a better mom!•By allowing occasional indulgences
26
RULES OF ENGAGEMENT
04/08/2023 27
Marketing Value Management Process
04/08/2023 28
Choose the value
Provide the
value
Communicate
the value
- Segmentation
- Market Focus
- Value Positioning
- Product Development- Pricing- Sourcing/ Making- Distributing
- Integrated Communication- Sales promotion- Sales force
Which segment?
Which markets?
What is changing?
Customers expectatio
ns?
Any need gaps?
Functional and
emotional benefits?
What is the
consumer insight?
What is the core
differentiator for our brand?The
Value Positionin
g
Questions to be addressed at the first stage.
UNDERSTANDING INDIA: OPPORTUNITIES IN DIVERSITY
30
Where bullock carts co-exist with Asia’s largest wind farm in Dhule…
31
In little over a decade, Suzlon Energy has grown into the world's fifth-largest producer of wind turbines, with each machine selling at around 2 million dollars. 90% of orders come from markets outside India, for the most part the US, South America, and China.
A country with twice the number of English speakers as the UK
32
Top 5 English Speaking Countries
(MM)
USA 263
India 125
Nigeria 79
UK 60
Russia 60
Where English is the second most spoken language…
33
Top 5 Languages Spoken in India
(MM)
Hindi 552
English 125
Bengali 91
Telgu 85
Marathi 84
Two new religions that unite our country…
34
CRICKET
And BOLLYWOOD!
35
Where the richest live side by side the poorest….
• * Source: Forbes List., March 1, 2010• ** Source: CIA Handbook
36
Rank Name Citizenship AgeNet Worth
($bil) Residence1 Carlos Slim Helu
& familyMexico 70 53.5 Mexico
2 William Gates III United States
54 53.0 United States
3 Warren Buffett United States
79 47.0 United States
4 Mukesh Ambani India 52 29.0 India
5 Lakshmi Mittal India 59 28.7 United Kingdom
6 Lawrence Ellison United States
65 28.0 United States
7 Bernard Arnault France 61 27.5 France
8 Eike Batista Brazil 53 27.0 Brazil
9 Amancio Ortega Spain 74 25.0 Spain
10 Karl Albrecht Germany 90 23.5 Germany
Number of Indian Billionaires in 2010: 52*
Population Below Poverty Line:
25%**
WE NEED TO DEFINE OUR CORE TARGET WITHIN THIS DIVERSITY:SHARPER THE TARGET DEFINITION = BETTER THE BRANDING
37
38
So, which India are you interested in?
The Rich India?
The Middle India?
The BOP India?
39
There is a gold mine in each of the tiers of the PyramidIncome Percentile Population
(MM)% of Income GDP per capita
($)Total GDP($ Billion)
Class (Top 10%) 109 34.1% $ 1,878 $ 204.6 B
Mass (Next 30 %) 326 36.1% $ 662 $ 216.6 B
BOP (Last 60%) 653 29.7% $ 265 $ 178.2 B
Source: Rama Bijapurkar, We are like that only.
40
Further complexities of defining your core segment…
CLASS MASS BOPAge Cohorts Teens/ Young Adults, Youth, Middle Age, Mature
Geographic location Metro, Mini-metro, Other Urban, Affluent Rural, Other Rural
Consumer orientation Image or prestige seekers, benefit maximisers, cost optimizers, cash minimisers, fixed price seekers, etc.
Cultural orientation Tradition-driven, Open but still value tradition, Embracing new culture
Consumer experience Category familiar, First time users, Non-users
Economic sector Government, Agriculture, Manufacturing, Services, New Economy
41
An example for defining your core consumer segment …
CLASS MASS BOPAge Cohorts Teens/ Young Adults, Youth, Middle Age, Mature
Geographic location Metro, Mini-metro, Other Urban, Affluent Rural, Other Rural
Consumer orientation Image or prestige seekers, benefit maximisers, cost optimizers, cash minimisers, fixed price seekers, etc.
Cultural orientation Tradition-driven, Open but still value tradition, Embracing new culture
Consumer experience Category familiar, First time users, Non-users
Economic sector Government, Agriculture, Manufacturing, Services, New Economy
42
Targeting Influencers
• Influencers are individuals of types of individuals who have the power to shape purchase decision of other consumers.
• They may be potential consumers themselves, but could also be intermediaries like:– Dealers/ retailers– Doctors/ Architects/ Interior Decorators– Bloggers on particular topics– Columnists– Journalists
04/08/2023 43
Steps in Influencer Marketing
• Identifying Influencers – and ranking • Marketing to influencers (awareness building)• Marketing through influencers (amplification)• Marketing with influencers (advocacy)
04/08/2023 44
Spotting Influencers
• Activists: influencers get involved, with their communities, political movements, charities and so on.
• Connected: influencers have large social networks• Impact: influencers are looked up to and are trusted by
others• Active minds: influencers have multiple and diverse
interests• Trendsetters: influencers tend to be early adopters (or
leavers) in markets
04/08/2023 45
Putting Influencer Marketing into Practice• In developed markets specialized firms in this
space have mapped the influencer network and can tap it for companies:– Avant-guide Institute, New York– Influencer 50– Ammo Marketing– Liquid Intelligence– Agent Wildfire– Vocanic – SCB Partners
04/08/2023 46