1 - 13 Combined

Company and Marketing Strategy

MARK 3336

Class # 4

9/4/14

Topic Outline

New in Marketing Law of the Category OXO Video Marketing Strategy

The 22 Immutable Laws of Marketing

2. The Law of the Category

If you can’t be first in a category, set up a new category you can be first in.

Lindbergh

Hinkler

Earhart

Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities

Strategic Planning

Companywide Strategic Planning

Steps in Strategic Planning


The mission statement is the organization’s purpose, what it wants to accomplish in the larger environment

Market-oriented mission statement defines the business in terms of satisfying basic customer needs

Defining a Market-Oriented Mission

We help you organize the world’s information and make it

universally accessible and useful.

Business objectives

• Build profitable customer relationships

• Invest in research

• Improve profits

• Increase market share

• Create local partnerships

• Increase promotion

Marketing objectives

Setting Company Objectives and Goals


Planning Tools

Planning Tools

Porter BCG GE Ansoff

Porter: Structural Analysis of Industries

RIVALRY AMONGCOMPETITORS

THREAT OFSUBSTITUTES

THREAT OFSUBSTITUTES

THREAT OFNEW ENTRANTS

THREAT OFNEW ENTRANTS

BARGAININGPOWER OF

BUYERS

BARGAININGPOWER OF

BUYERS

BARGAININGPOWER OFSUPPLIERS

BARGAININGPOWER OFSUPPLIERS

The Boston Consulting Group Matrix

The Boston Consulting Group (BCG) Matrix

The BCG business portfolio analysis analyzes a firm’s business units (SBUs) or products/brands as though they were a collection of separate investments.

The technique locates SBUs on a market growth-relative market share matrix. Then the SBUs are classified as either “question marks,” “stars,”“cash cows,” or “dogs.”

12

Boston Consulting Group Matrix

Enhances multidivisional firms’ efforts to formulate strategies

Autonomous divisions (or profit centers) constitute the business portfolio

Firm’s divisions may compete in different industries requiring separate strategy

13


Graphically portrays differences among divisions

Focuses on market share position and industry growth rate

Manage business portfolio through relative market share position and industry growth rate

14

Relative market share position defined:

• Ratio of a division’s own market share in a particular industry to the market share held by the largest rival firm in that industry.



HIGH LOWRelative Market Share

MarketGrowth

HIGH

LOW

STARS * Market Leaders * Fast Growing * Require Investment to GrowSTRATEGY * Protect Share * Reinvest earnings through price cuts, Product Improvement, More Efficiency * Obtain Large Share of New Users

CASH COWS * Profitable Products * Generate More Cash Than Needed For Share Maintenance * Slow Sales GrowthSTRATEGY * Maintain Market Dominance * Invest in Process Technology Improvement and Price Leadership, R&D in Other Product Markets

QUESTION MARKS * Rapid Growth * Poor Profit Margins * Enormous Demand for CashSTRATEGY * Invest to Aggressively build share * Buy existing shares by acquiring

DOGS * Majority of Products fall in this category * Cost disadvantage - few growth opportunities at Reasonable Cost * Markets not GrowingSTRATEGY * Harvest: Cut back all support to maintenance * Divest (sell); Abandon (Delete from line)


The G.E. Multifactor Portfolio Model

Business Position

High

Medium Low

Hig

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Market Attractiveness * Market Size * Growth Rate * Cyclicality, Seasonality * Competitive Intensity * Rate of Technological Change * Barriers to Entry * Economies of Scale * Regulatory EnvironmentBusiness Position * Market Share * Product Quality * Price Competitiveness * Brand Image * Production Strength * Financial Resources * Technological Skills * Sales Effectiveness * Distribution Capability

General Electric’s stoplight strategy chartM

arke

t att

ract

iven

ess

Business positionStrong Medium Weak

High

Medium

Low

Green band = “Go” signal = Build Yellow band = “Caution” signal = Hold

High ov

erall

attrac

tiven

ess

overa

ll

Low ov

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attrac

tiven

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Med

ium

attrac

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Red band =“Stop” signal = Divest

Prescriptive Strategies for Businesses in Different Cells


Product/Market Expansion Grid

Managing the Marketing Effort



Executive summary

Marketing situation

Threats and opportunities

Objective and issues

Marketing strategy

Action programs

Budgets

Market Planning—Parts of a Marketing Plan


Marketing Implementation

Implementing Turns marketing plans into marketing

actions to accomplish strategic marketing objectives

Addresses who, where, when, how

Copyright ©2014 by Pearson Education, Inc. All rights reserved


Functional organization

Geographic organization

Product management organization

Market or customer management

Marketing Department Organization



Controlling evaluating of results taking of corrective action to achieve objectives Operating control Strategic control

Marketing Control



Measuring and Managing Return on Marketing Investment

Return on Marketing Investment (Marketing ROI)

Return on marketing investment is net return from a marketing

investment divided by the costs of the marketing investment.

provides a measurement of the profits generated by investments in marketing activities.

http://www.investor.sharehold.com/campbell/index.cfm

http://www.investor.sharehold.com/campbell/index.cfm

MEASURING MARKETING PERFORMANCE

What gets measured

gets managed!

Analyzing Marketing Environment

MARK 3336

Class # 5

9/9/14

Topic Outline

New in Marketing Law of Unpredictability Ecoist Video Analyzing the Marketing Environment


17. The Law of Unpredictability

Unless you write your competitors’ plans, you can’t predict the future.

Microenvironment Macroenvironemnt

– Demographic Environment– Economic Environment– Natural Environment– Technological Environment– Political and Social Environment– Cultural Environment– Responding to the Marketing

Environment

Analyzing the Marketing Environment

The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with customers

The Marketing Environment

Microenvironment consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

Macroenvironment consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political and cultural forces

The Marketing Environment

The Company’s Microenvironment

Entities in the Microenvironment


The Company

Top management Finance R&D Purchasing Operations Accounting


Suppliers

Provide the resources to produce goods and services

Treat as partners to provide customer value


Marketing Intermediaries

Help the company to promote, sell and distribute its products to final buyers


Types of Marketing Intermediaries

ResellersPhysical

distribution firms

Marketing services agencies

Financial intermediaries


Competitors

Firms must gain strategic advantage by positioning their offerings against competitors’ offerings


Publics Any group that has an actual or

potential interest in or impact on an organization’s ability to achieve its objectives

– Financial publics– Media publics– Government publics– Citizen-action publics– Local publics– General public– Internal publics


Customers

Consumer markets Business markets Reseller markets Government markets International markets

The Company’s Macroenvironment


Demographic Environment

Demography: the study of human populations-- size, density, location, age, gender, race, occupation, and other statistics

Demographic environment: involves people, and people make up markets

Demographic trends: shifts in age, family structure, geographic population, educational characteristics, and population diversity


Changing American Family

More people are: Divorcing or separating Choosing not to marry Choosing to marry later Marrying without intending to have children Increasing number of working women Increasing number of stay-at-home dads



Demographic EnvironmentGeographic Shifts in Population

Growth in U.S. West and South and decline in Midwest and Northeast

Change in where people work– Telecommuting– Home office



Changes in the Workforce– More educated– More white collar


Economic Environment

Economic environment consists of factors that affect consumer purchasing power and spending patterns

Industrial economies are richer markets Subsistence economies consume most

of their own agriculture and industrial output


Natural Environment

Natural environment: natural resources that are needed as inputs by marketers or that are affected by marketing activities

Trends– Increased shortages of raw materials– Increased pollution– Increased government intervention– Increased environmentally sustainable strategies


Technological Environment

Most dramatic force in changing the marketplace

New products, opportunities

Concern for the safety of new products


Political and Social Environment

Legislation regulating business– Increased legislation– Changing government

agency enforcement


Political and Social Environment

Increased emphasis on ethics– Socially responsible

behavior– Cause-related

marketing


Cultural Environment

Cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors

Managing Marketing Information to Gain Customer Insights

MARK 3336

Class # 6

9/11/14

Topic Outline

New in Marketing Law of the Division Dominos Video Marketing Strategy


10. The Law of the Division

Over time, a product category will divide and become 2 or more categories.

Marketing Information and Customer Insights

Customer Insights are:

Fresh and deep insights into customers needs and wants

Difficult to obtain– Not obvious– Customers are unsure of their behavior

Better information and more effective use of existing information


Customer Insights

Companies are forming customer insights teams– Include all company functional

areas– Collect information from a

wide variety of sources– Use insights to create more

value for their customers


Marketing Information Systems (MIS)

Marketing information system (MIS) consists of people and procedures for:

– Assessing the information needs– Developing needed information– Helping decision makers use the information for

customer


Assessing Marketing Information Needs

MIS provides information to the company’s marketing and other managers and external partners such as suppliers, resellers, and marketing service agencies

Assessing Marketing Information Needs

Characteristics of a Good MIS

Balancing what the information users would like to have against what they need and what is feasible to offer

User’s Needs

MIS Offerings

Developing Marketing Information

Marketers obtain information from

Internal data

Marketing intelligence

Marketing research


Internal Data

Internal databases are electronic collections of consumer and market information obtained from data sources within the company network


Competitive Marketing Intelligence

Is the systematic collection and analysis

of publicly available information

about consumers, competitors

and developments in the marketplace


Marketing Research

Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization


Steps in the Marketing Research Process


Marketing ResearchDefining the Problem and Research Objectives

Exploratory research

Descriptive research

Causal research


Marketing ResearchDeveloping the Research Plan

Outlines sources of existing data

Spells out the specific research approaches, contact methods, sampling plans, and instruments to gather data



Management problem

Research objectives

Information needed

Budget

How the results will help management decisions

Managing Marketing Information to Gain Customer Insights

(continued)

MARK 3336

Class #7

9/16/14

Topic Outline

New in Marketing Dominos Video Marketing Information and Customer Insights

(continued)


10. The Law of the Division

Over time, a product category will divide and become 2 or more categories.


Secondary data consists of information that already exists somewhere, having been collected for another purpose

Primary data consists of information gathered for the special research plan


Advantages

Cost

Speed

Could not get data otherwise

Disadvantages

Current

Relevant

Accuracy

Impartial

Developing Marketing InformationSecondary Data

Planning Primary Data Collection

Research approaches

Contact methods

Sampling plan

Research instruments

Marketing Research



Observational research involves gathering primary data by observing relevant people, actions, and situations

Ethnographic research involves sending trained observers to watch and interact with consumers in their natural environment

Market ResearchResearch Approaches



Survey research is the most widely used method and is best for descriptive information—knowledge, attitudes, preferences, and buying behavior

Flexible People can be unable or unwilling to answer Gives misleading or pleasing answers Privacy concerns



Experimental research is best for gathering causal information—cause-and-effect relationships


Market ResearchContact Approaches

Focus Groups– Six to 10 people– Trained moderator– Challenges

Expensive Difficult to generalize from small

group Consumers not always open

and honest


Market ResearchOnline Contact Approaches

Internet surveys

Online panels

Online experiments

Online focus

groups


Market ResearchOnline Contact Approaches

Advantages

• Low cost• Speed• Higher response rates• Good for hard to reach

groups

Marketing Introduction

MARK 3336

Class # 3

9/2/14

Topic Outline

New in Marketing Law of the Mind Finish 4P’s Discussion Zappos Video What Is Marketing – Pulling it all Together.


3. The Law of the Mind

It’s better to be first in the mind than to be first in the marketplace.

Mits Altair 3800Introduced in 1974

Apple Introduced in 1976

What Is Marketing? Pulling It All Together

Consumer Markets and Consumer Buyer Behavior

MARK 3336

Class #8

9/18/14

Topic Outline

New in Marketing Law of Perception Goodwill Video Consumer Markets and Consumer Behavior


4. The Law of the Perception

Marketing is not a battle of products, it’s a battle of perceptions.

Consumer buyer behavior : the buying behavior of final consumers, individuals and households, who buy goods and services for personal consumption

Consumer market : all of the personal consumption of final consumers

Model of Consumer Behavior

Model of Consumer Behavior

Characteristics Affecting Consumer Behavior

Factors Influencing Consumer Behavior

Culture is the learned values, perceptions, wants, and behavior from family and other important institutions and is the most basic cause of a person’s wants and behavior



Subcultures are groups of people within a culture with shared value systems based on common life experiences and situations

Hispanic American African American Asian American Cross-Cultural

Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors

Measured by a combination of occupation, income, education, wealth, and other variables


Major American Social Classes


Membership Groups

• Groups with direct influence and to which a person belongs

Aspirational Groups

• Groups an individual wishes to belong to

Reference Groups

• Groups that form a comparison or reference in forming attitudes or behavior

Groups and Social Networks


Word-of-mouth influence and buzz marketing– Opinion leaders are people

within a reference group who exert social influence on others

– Also called influentials or leading adopters

– Marketers identify them to use as brand ambassadors

Groups and Social Networks


Family is the most important consumer-buying organization in society

Social roles and status are the groups, family, clubs, and organizations that a person belongs to that can define role and social status

Social Factors


Age and life-cycle stage

Occupation affects the goods and services bought by consumers

Economic situation includes trends in:

Personal Factors

Personal income Savings Interest

rates


Lifestyle is a person’s pattern of living as expressed in his or her psychographics

Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment

Personal Factors


Personality: the unique psychological characteristics that lead to consistent and lasting responses to the consumer’s environment

Personal Factors


Psychological Factors

Motivation

Perception

Learning

Beliefs and attitudes


A motive is a need that is sufficiently pressing to direct the person to seek satisfaction

Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations

Psychological FactorsMotivation



Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes– Selective attention– Selective distortion– Selective retention



Selective attention is the tendency for people to screen out most of the information to which they are exposed

Selective distortion is the tendency for people to interpret information in a way that will support what they already believe

Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands


Types of Buying Decision Behavior

Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior

Variety-seeking buying behavior

Types of Buying Decision Behavior

Four Types of Buying Behavior

The Buyer Decision Process

Buyer Decision Making Process consists of 5 stages:

The Buyer Decision Process for New Products

Innovators Early Adopters Early Mainstream Late Mainstream Lagging Adopters

Differences in Innovativeness Adopter Categories

Business Markets and Business Buying Behavior

MARK 3336

Class #9

9/23/14

Topic Outline

New in Marketing Law of Success Eaton Video Business Markets and Business Buyer Behavior


18. The Law of Success

Success often leads to arrogance, and arrogance to failure.

Business Markets

Business buyer behavior refers to the buying behavior

of the organizations that buy goods and services for

use in production of other products and services that

are sold, rented, or supplied to others.

Business buying process is the process where

business buyers determine which products and

services are needed to purchase, and then find,

evaluate, and choose among alternative brands

Business Markets Decision Process

More complex More decision

participants More professional

purchasing effort Buyer and seller more

dependent

Business Markets Decision Process

Supplier development is the systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials that companies will use in making their own products or reselling to others

Business Buyer Behavior


Straight rebuy is a routine purchase decision such as reorder without any modification

Modified rebuy is a purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers

New task is a purchase decision that requires thorough research such as a new product

Major Types of Buying Situations


Buying center is all of the individuals and units that participate in the business decision-making process:

Users Influencers Deciders Purchasers Gatekeepers

Participants in the Business Buying Process


Users are those that will use the product or service

Influencers help define specifications and provide information for evaluating alternatives

Buyers have formal authority to select the supplier and arrange terms of purchase

Deciders have formal or informal power to select and approve final suppliers

Gatekeepers control the flow of information



Buying center provides a major challenge

Who participates in the process– Their relative authority– What evaluation criteria each

participant uses– Informal participants


Business Buyer BehaviorThe Model of Business Buyer Behavior


The Buying Process


Problem recognition occurs when someone in the company recognizes a problem or need

Internal stimuli– Need for new product or production equipment

External stimuli– Idea from a trade show or advertising

The Buying Process


General need description describes the characteristics and quantity of the needed item

Product specification describes the technical criteria

Value analysis is an approach to cost reduction where components are studied to determine if they can be redesigned, standardized, or made with less costly methods of production

The Buying Process


Supplier search involves compiling a list of qualified suppliers

Proposal solicitation is the process of requesting proposals from qualified suppliers

The Buying Process


Supplier selection is the process when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions

Order-routine specifications is the final order with the chosen supplier and lists all of the specifications and terms of the purchase

The Buying Process


Performance review involves a critique of supplier performance to the purchase terms

The Buying Process


Online purchasing Company-buying

sites Extranets

E-Procurement


Advantages– Access to new suppliers– Lowers costs– Speeds order processing and delivery– Shares information– Sales– Service and support

Disadvantages– Can erode relationships as buyers search for new

suppliers– Security

E-Procurement

Institutional and Government Markets

Institutional markets consist of schools, hospitals, nursing homes, and prisons that provide goods and services to people in their care

Characteristics– Low budgets– “Captive” audience

Institutional and Government Markets

Government markets tend to favor domestic suppliers, require suppliers to submit bids,

and normally award to the lowest bidder Affected by environmental factors Non-economic factors considered

– Minority suppliers– Depressed suppliers– Small businesses

Customer-Driven Marketing Strategy: Creating Value for Target Customers


MARK 3336

Class #10

9/25/14

Topic Outline

New in Marketing Law of Focus Boston Harbor Cruises Video Segmentation


5. The Law of Focus

The most powerful concept in marketing is owning a word in the prospect’s mind.

Customer-Driven Marketing Strategy:Creating Value for Target Customers

Topic Outline Segmentation Targeting Positioning

Market Segmentation

Market Segmentation

Market segmentation requires dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.


Market Segmentation

Segmenting consumer markets Segmenting business markets Segmenting international markets Requirements for effective segmentation


Market Segmentation

Segmenting Consumer Markets

Geographic segmentation

Demographic segmentation

Psychographic segmentation

Behavioral segmentation

Market Segmentation

Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities


Geographic Segmentation

Good Starting Point for Segmentation Because…– Data is Relatively Easy to Obtain– Less Expensive– Quick Snapshot of a Market– Populations Can Be Sampled & Accurately

Projected

Market Segmentation

Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality


Demographic/Socioeconomic Segmentation

Demographics– Human populations and their vital statistics

Socioeconomics– Economics and social-class variables

4 Major Demographic Segmentation Approaches– Market Size Factors– Age & Stage– Men & Women– Race, Nationality, & Religion

3 Major Socioeconomic Segmentation Approaches– Monetary Factors– Homeownership Factors– Social Class & Geodemographic Clustering


Sources of Demographic/Socioeconomic Data– Low-cost Library Sources

US Statistical Abstract State & Metropolitan Area Handbooks County & City Databooks Statistical Reference Index, Statistical Handbook Series CACI’s Sourcebooks Donnelley’s Market Profile Analysis


Sources of Demographic/Socioeconomic Data– Other Low-Cost Sources

Census Bureau (www.census.gov)– AMERICAN FACTFINDER

State and Local Agencies– HOUSTON-GALVESTON AREA COUNCIL

Universities– UT POPULATION CENTER, TEXAS A&M TEXAS STATE

DATA CENTER Other Sources


http://www.census.gov/

Market Segmentation

Psychographic segmentation

divides buyers into different groups based on social class, lifestyle, or personality traits


Psychographic Segmentation

3 Main Types of Psychographic Segmentation– Lifestyle Segmentation– Social/Value Segmentation– Personality Segmentation

Psychographic Segmentation

Advantages of Psychographics– Target Market Identification– Understanding Consumer Behavior– Strategic Marketing

Product, Price, Place, Promotion– Minimizing Risk

Limitations of Psychographics– Data Collection & Analysis– Cost Factors

Market Segmentation

Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product

Occasions Benefits sought User status Usage rate Loyalty status


Behavioral Segmentation

Importance of Product Usage2 Components of Product Usage

– Usage Frequency– Usage Variety


Advantages of Behavioral Segmentation– Useful Dimension for Understanding Consumer or

Industrial Markets– Can Increase Consumption among Heavy Users

in Moderately Competitive Markets– Increase Consumption among Light and Medium

Users in Highly Competitive Markets– Possible to Attract Non-Users or Neglected

Segments


Limitations of Behavioral Segmentation– Product Usage Segments are Often Difficult to

Explain through Traditional Demographics– Problems with Targeting Heavy Users

Competition for this segment can be great All heavy users are not purchasers for same reasons Often are not brand loyal

– Definitional Problems

Market Segmentation

Multiple segmentation is used to identify smaller, better-defined target groups

PRIZM NE classifies every American household into 66 unique segments organized into 14 different social groups.

Using Multiple Segmentation Bases

Market Segmentation

Consumer and business marketers use many of the same variables to segment their markets

Additional variables include: Customer operating characteristics Purchasing approaches Situational factors Personal characteristics

Segmenting Business Markets

Market Segmentation

Segmenting International Markets

Geographic location

Economic factors

Political-legal factors

Cultural factors

Market Segmentation

Intermarket segmentation divides consumers into groups with similar needs and buying behaviors even though they are located in different countries

Segmenting International Markets

Market Segmentation

To be useful, market segments must be:Requirements for Effective Segmentation

Measurable Accessible

Substantial Differentiable

Actionable

Market Targeting

Segment size and growth Segment structural attractiveness Company objectives and resources

Evaluating Market Segments

Market Targeting

Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve

Selecting Target Market Segments

Market Targeting

Undifferentiated marketing targets the whole market with one offer• Mass marketing• Focuses on common needs rather

than what’s different

Target Marketing Strategies

Market Targeting

Differentiated marketing targets several different market segments and designs separate offers for each

Goal is to achieve higher sales and stronger position

More expensive than undifferentiated marketing


Market Targeting

Concentrated marketing

targets a small share of a

large market Limited company

resources Knowledge of the market More effective and

efficient


Market Targeting

Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations

Local marketing Individual marketing

Target Market Strategies

Market Targeting

Local marketing involves tailoring brands and promotion to the needs and wants of local customer groups

Cities Neighborhoods Stores


Market Targeting

Individual marketing involves tailoring products and marketing programs to the needs and preferences of individual customers

Also known as:– One-to-one marketing– Mass customization


Market Targeting

Depends on: Company resources Product variability Product life-cycle stage Market variability Competitor’s marketing strategies

Choosing a Target Market

Differentiation and Positioning

Product position is the way the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products

Perceptions Impressions Feelings


Identifying a set of possible competitive advantages to build a position

Choosing the right competitive advantages Selecting an overall positioning strategy Communicating and delivering the chosen

position to the market

Choosing a Differentiation and Positioning Strategy


Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices

Identifying Possible Value Differences and Competitive Advantages


Identifying a set of possible competitive advantages to build a position by providing superior value from:

Choosing the Right Competitive Advantage

Product differentiation

Service differentiation

Channel differentiation

People differentiation

Image differentiation


Choosing the Right Competitive Advantage

Difference to promote should be:

Important Distinctive Superior

Communicable Preemptive Affordable

Profitable


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

Example, for Evernote: “To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, table, and the Web.”

Developing a Positioning Statement

Don’t use this! The authors are close to right, but a better templateappears on the following page.

Product Positioning

Creating a Positioning Statement:

For (target), (product, brand, service, company) is the (competitive qualifier) that (single or short list of truly distinctive benefits).

Product Positioning

Creating a Positioning Statement:

For competitive skiers who love to run moguls, the new XYZ variable stiffness ski is the first and only model of competitive ski that can be switched from flexible for control on mogul terrain, to stiff for speed on flat terrain, at the push of a button.

Communication and Delivering the Chosen Position

Choosing the positioning is often easier than implementing the position.

Segmentation and PositioningHow does a business select a Target and

Positioning/Value Proposition?

MARK 3336

Class #11

9/30/14

Positioning

Need Segment X

Represents 5% of total Market

Positioning Simulation

Perceptor Model: Urban Where you position your product vis-à-vis the

competition and the consumer’s ideal want has an impact on your market share and profitability.


New Product (Chardonnay) Exercise


Here is what you know about the category: Divides into 3 consumer segments, each

representing the following % of market demand:– Segment 1 = 20%– Segment 2 = 30%– Segment 3 = 50%


There are currently 3 brands of Chardonnay in the market: Highway 1, Oak Barrel, and Winter Creek. Research has shown that two product attributes determine most brand preference in this category: price and strength of flavor and aroma.


Your marketing research department informs you that the average price for a bottle of chardonnay is $7.75. They also tell you that the average price for the competitors is:– Highway 1 $3.50– Oak Barrel $8.00– Winter Creek $12.00


Last year the marketing research department did a survey where they obtained some important information. First, for each of the 3 consumer segments, they were able to identify an ideal preferred price, meaning a price the typical consumer in that segment would want to pay for a bottle of chardonnay. The results were as follows:– Segment 1 ideal price $11.00– Segment 2 ideal price $4.00– Segment 3 ideal price $9.00


Another important piece of information the marketing research department was able to identify in this survey was that consumers’ rating of the 3 competitors on the attribute of flavor and aroma strength was as follows (a rating of 1.0 =‘s very light, 10.0 =‘s very intense):– Highway 1 3.0– Oak Barrel 8.5– Winter Creek 3.0


The last piece of information relates to the 3 segment’s ideal desired flavor/aroma intensity level for chardonnay (a rating of 1.0 =‘s very light, 10.0 =‘s very intense):– Segment 1 2.5– Segment 2 4.0– Segment 3 7.0


What price and flavor/aroma strength positioning would you adopt for your new chardonnay?

Fill in your recommendation on the input form and complete your 2 dimension positioning map.

Support/explain your decision.

Chardonnay Exercise

Chardonnay Exercise

Chardonnay Exercise

Product, Services, and Brands: Building Customer Value

MARK 3336

Class #13

10/7/14


The Law of Line Extension– The is an irresistible urge to expand the equity of

the brand

Topic Outline

New in Marketing Law of Line Extension Boston Video Product, Services, and Branding Strategy

Product, Services, and Branding Strategy

Product, Services, and Experiences Product and Services Decisions Services Marketing Branding Strategy: Building Strong Brands

What Is a Product?

Consumer products are products and services for personal consumption

Classified by how consumers buy them– Convenience products– Shopping products– Specialty products– Unsought products

Product and Service Classifications

What Is a Product?

Convenience products

consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort– Newspapers– Candy– Fast food


What Is a Product?

Shopping products

consumer products and services that the customer compares carefully on suitability, quality, price, and style– Furniture– Cars– Appliances


What Is a Product?

Specialty products

consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

Medical services Designer clothes High-end electronics


What Is a Product?

Unsought products

consumer products that the consumer does not know about or knows about but does not normally think of buying

Life insurance Funeral services Blood donations


What Is a Product?

Industrial products

products purchased for further processing or for use in conducting a business

Classified by the purpose for which the product is purchased

– Materials and parts– Capital items– Supplies and services


What Is a Product?

Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users

Capital items are industrial products that aid in the buyer’s production or operations

Supplies and services include operating supplies, repair and maintenance items, and business services


What Is a Product?

Organization marketing

Person marketing

Place marketing

Social marketing

Organizations, Persons, Places, and Ideas

Product and Service Decisions

Brand is the name, term, sign, or design—or a combination of these—that identifies the maker or seller of a product or service

Individual Product and Service Decisions


Packaging involves designing and producing the container or wrapper for a product

Labels identify the product or brand, describe attributes, and provide promotion



Product support services augment actual products



Product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

Product Line Decisions


Product line length is the number of items in the product line

Line stretching Line filling

Product Line Decisions


Product mix consists of all the products and items that a particular seller offers for sale

Width Length Depth Consistency

Product Mix Decisions

Services Marketing

Government Private not-for-profit organizations Business services

Types of Service Industries

Brand Strategy and Brand Equity

Brand Strategy and Brand Equity

Brand Equitycan explain

the difference

Branding Strategy: Building Strong Brands

Brand equity

The differential effect that knowing the

brand name has on customer response to

the product or its marketing.



Brand strategy decisions include: Product attributes Product benefits Product beliefs and values

Brand Positioning


Desirable qualities

1. Suggest benefits and qualities

2. Easy to pronounce, recognize, and remember

3. Distinctive

4. Extendable

5. Translatable for the global economy

6. Capable of registration and legal protection

Brand Name Selection


Manufacturer’s brand

Private brand

Licensed brand

Co-brand

Brand Sponsorship


Brand Development Strategies

Interbrand Best Global Brands

Company 1996 2013

Marlboro $44,614 **

Coco-Cola $43,427 $79,213

McDonald's $18,920 $41,992

IBM $18,491 $78,808

Disney $15,358 $28,147

Kodak $13,267 *

Kellogg's $11,409 $12,987

Budweiser $11,026 $12,614

Nescafe $10,527 $10,651

Intel $10,499 $37,257

Gillette $10,292 $25,105

Motorola $9,624 **

GE $9,304 $46,947

Pepsi $8,895 $17,892

Sony $8,800 $8,408

Hewlett-Packard $8,111 $25,843

Nike $7,267 $17,085

Microsoft $5,634 $59,546

Apple $98,316

Google $93,291

* Dropped from top 100 in 2008** Dropped from top 100 in 2011

Numbers are in $millions

Documents

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