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October 7, 2013October 7, 2013
• Ads?Ads?• Understanding the W’s to drive Marketing Understanding the W’s to drive Marketing
MixMix• Positioning Positioning • Assignment for next classAssignment for next class
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Marketing MixMarketing Mix
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PRODUCT
PLACE
POSITIONING
PRICE
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Getting to the Marketing MixGetting to the Marketing Mix
Where
What
Who
Why
When
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WhoWhoWho are we targeting ?
Market segmentation is a powerful tool
• Nearly all markets include groups of people or organizations with different product needs and preferences
• Segmentation helps marketers define customer needs and wants more precisely
• Because market segments differ in size and potential, segmentation helps decision makers more accurately define objectives and better allocate resources
• Performance can be measured more effectively when objectives are more precise
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Successful segmentation: 4 criteria
1.1. A segment must be large enough to warrant developing A segment must be large enough to warrant developing and maintaining a special marketing mix (Size Matters)and maintaining a special marketing mix (Size Matters)
2.2. Segments must be identifiable and their size Segments must be identifiable and their size measurable (Identify & Measure)measurable (Identify & Measure)
3.3. The firm must be able to reach them in some way with The firm must be able to reach them in some way with the marketing mix (Accessible)the marketing mix (Accessible)
4.4. Responds differently than other segments to a Responds differently than other segments to a marketing approach (Uniquely Responsive)marketing approach (Uniquely Responsive)
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Typical Segment Attributes
Geography Demographics Psychographics Benefits Usage Rate
• Region
• Market size
• Market density
• Climate
• Age
• Gender
• Income
• Race/ethnicity
• Family
• Personality
• Motives
• Lifestyle
• Benefits sought • Heavy, Medium, Light users
• First timers
• Repeaters
• Lapsed
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TargetingTargeting
Once you understand the potential segments, you must choose which ones to target…
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TargetingTargeting
Once you understand the potential segments, you must choose which ones to target…
• Number of customers and potential spending power• Ability to reach customers in the segment—and the cost
to reach• Existing competition in the segment• Level of satisfaction with competitors offer• Predicted growth• Potential profitability• Barriers to entry
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WhatWhatWhat are we trying to sell?
• The what—or product—can be a good, a service or an idea
• Defined by intended use: business product is intended for a business purpose; consumer product is intended for consumer use
• Rarely does a company sell a single product: typically a hierarchy
• Product Item
• Product Line
• Product Mix
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WhatWhatWhat are we trying to sell?
Canned Canned SoupsSoups
Microwave Microwave SoupsSoups
GraviesGravies Meal KitsMeal Kits Tomato Tomato JuiceJuice
Chicken Chicken NoodleNoodle
Creamy Creamy TomatoTomato
BeefBeef Chicken Chicken PastaPasta
RegularRegular
TomatoTomato VegetableVegetable TurkeyTurkey Stroganoff Stroganoff PastaPasta
Low Low SodiumSodium
Vegetable Vegetable BeefBeef
Chicken Chicken NoodleNoodle
MushroomMushroom Chicken Chicken with Ricewith Rice
OrganicOrganic
French French OnionOnion
Creamy Creamy ChickenChicken
ChickenChicken Pork Pork Chops with Chops with StuffingStuffing
Healthy Healthy RequestRequest
More…More… More…More… More…More… More…More…
• The what—or product—can be a good, a service or an idea
• Defined by intended use: business product is intended for a business purpose; consumer product is intended for consumer use
• Rarely does a company sell a single product: typically a hierarchy
• Product Item
• Product Line
• Product Mix
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WhereWhereWhere are going to sell our products?
This is the “place” (distribution) part of the marketing mix and it defines making your product available when and where customers want it
Typically includes:
• Retail Stores
• Non-store Retail
• Vending
• Direct (e.g., door-to-door; person-to-person)
• Direct Marketing (call now operators are standing by, LL Bean)
• Electronic
• Online
• HSN
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WhenWhen
When are we going to promote?
•Promotion=Communication by marketers that informs, persuades and/or reminds potential buyers (target market) of a product in order to influence their opinion or elicit a response
• Elements include advertising, public relations, personal selling, and sales promotion
• Main function of a promotional strategy is to convince target market to buy
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WhyWhyWhy are they going to buy our product?
• We have a competitive advantage…
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WhyWhyWhy are they going to buy our product?
• We have a competitive advantage…the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.
• Typically includes one or more of
• Quality
• Rapid delivery
• Low price
• Superior service
• Unique feature
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PositioningPositioning
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By understanding the Who, What , Where, When and Why you are then best able to create a Positioning for your product/brand
What are your key takeaways from the book…what are the things you must know in order to position your product/brand?
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PositioningPositioning
• Positioning is the place a product, brand or Positioning is the place a product, brand or service occupies in consumersservice occupies in consumers‘‘ minds minds relative to the competitionrelative to the competition
• Generally speaking, a firmGenerally speaking, a firm’’s positioning s positioning tries to leverage its competitive advantagetries to leverage its competitive advantage
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Classic Differentiated Positioning Framework
For ________________________ _________________
(Target segment) (Product/brand)
is _______________________
(Most important claim/Unique Selling Proposition)
among all __________________________________________
(competitive frame)
because ____________________________________________
(support, reasons why, benefit)
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Classic Differentiated Positioning Framework
For Younger Men , Axe grooming products (Target segment) (Product/brand)
Will make you sexier
(Most important claim/Unique Selling Proposition)
compared to all other grooming products (competitive frame)
Because girls go crazy over it… (support, reasons why, benefit)
http://www.youtube.com/watch?v=fDmRiw8XdDU
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ILLUSTRATIVE EXAMPLE: ESPN Positioning
For Serious Sports Fans, ESPN is the best at delivering
sports information and entertainment among all media
companies because it enriches the lives
of the fan through its authority, passion, humor and storytelling.
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Positioning ExamplePositioning Example
For deadline dependent people, FedEx is For deadline dependent people, FedEx is the overnight package delivery service that the overnight package delivery service that is most reliable because of its is most reliable because of its sophisticated tracking technology.sophisticated tracking technology.
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http://www.youtube.com/watch?v=wGoM_wVrwng
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A Word on PapersA Word on Papers
• Better than most – usually never give Better than most – usually never give anything above an A-/B+ on first paperanything above an A-/B+ on first paper
• Grades ranged from B- to A- with 2/3 a B or B+Grades ranged from B- to A- with 2/3 a B or B+• My expectation is that papers will get better My expectation is that papers will get better
as semester goes on so I grade accordingly; as semester goes on so I grade accordingly; and I give more weight to last paper than firstand I give more weight to last paper than first
• My criteria: is this Clear, Concise, CompellingMy criteria: is this Clear, Concise, Compelling
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For next week: For next week: Pick a Brand - 1 Page PaperPick a Brand - 1 Page Paper
• How would you describe the positioning How would you describe the positioning of the brand?of the brand?
• What is its competitive advantageWhat is its competitive advantage• What are 2-3 key marketing messages What are 2-3 key marketing messages
in support of CA and positioningin support of CA and positioning
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Snack Food SegmentationSnack Food SegmentationNutritional Snackers
Weight Watchers
Guilty Snackers
Party Snackers
Indiscriminate Snackers
Economy Snackers
% of Snackers 22% 14% 9% 15% 15% 18%
Lifestyle Characteristics
Self-assured, controlled
Ourdoorsy, adventuresome
Highly anxious, isolated
sociable hedonistic Self-assured, price sensitive
Benefits
Sought
Nutritious, all natural
Lo-cal, quick energy
Low cal, good tasting
Guest satisfaction, goes well w drinks
Good tasting, satisfies hunger
Low price, good value
Snack consumption level
low low heavy average heavy average
Usual snack Fruit, veggie, cheese
Yogurt, veggies Yogurt, cookies, candy
Nuts, chips, crackers, pretzels
Candy, ice cream, cookies, chips
No specific usual
Demographics Well educated w young kids
Young, single young./old female, lower income
Middle-aged, suburban
teens Well educated, large families
Goldfish