Laure Summary

Introduction to Marketing (Session 1)

• Marketing involves more than social media, using diverse communication channels
• Aim for the correct price that matches the value added to the product, and avoid simply over-pricing
• It is more effective to capture the attention of a specific audience instead of trying to appeal to everyone

Key Performance Indicators (KPIs)

• Minimum Viable Product (MVP): A new product version with core features
• AB Testing: Method for comparing two versions of a marketing effort
• Customer Acquisition Cost (CAC): Expenses to acquire a new customer. Calculated as total marketing and sales expenses divided by the number of new customers acquired
• Customer Lifetime Value (CLV): Total revenue a business can expect from a customer throughout their relationship. CLV = Average Purchase Value x Purchase Frequency x Customer Lifespan
• CLV is compared with CAC to assess the profitability of acquiring customers. CLV should be significantly higher than CAC to ensure sustainable growth
• Customer contribution can be determined with CLV - CAC
• Marketing decisions relate to the business model (B2B, B2C, B2B2C) and the company's life cycle, which impacts targeting and segmentation
• Weighted Average Contribution per Unit: A financial metric averaging contribution margins, weighted by sales volume
• Contribution Margin per Unit Selling Price per Unit - Variable Cost per Unit, it does not include fixed costs
• Sales Mix Percentage: Proportion of total sales represented by each product
• True Economic Value: Price of the best substitute on the market
• Brand Ambassadors: Individuals who promote a company's brand, products, or services
• Customer Lifetime Social Value (CLSV): Measures a customer's total impact on the brand's social presence and reputation

Marketing Strategy and Analysis

• Marketing is not isolated; it analyzes and forecasts demand based on fulfilling consumer needs, using a customer-centric approach
• 5C Analysis: A situation analysis that considers Company, Context, Competitors, Customers, and Channels/Collaborators
• Focus on customer acquisition, customer development, and customer retention

Prosper Case Study

• A Canadian startup that launched twice, starting with a Minimum Viable Product (MVP) by initially giving basic services for free and later charging for them
• Freemium is a revenue stream
• Value proposition includes personalized service for job interviews
• A human touch (human coaching) is included through flexible feedback

Key Decisions

• Raising capital should be approached by convincing investors
• The growth model can be B2B or B2C
• The pricing strategy went from high quality low price did not work, to high price high quality
• Customer targets include institutions, consumers, switchers
• Other considerations include the pricing strategy and where to invest money (social media, referrals)
• Changing the product may be an option
• CAC & CLV vary significantly between B2B (more predictable, lower CAC) and B2C
• Losing one B2B account leads to important consequences
• Variables and Place (distribution) change between B2B and B2C
• Considerations for sales or marketing development
• Communication strategy includes social media presence

Additional Considerations

• Factors for customers are friends, foes, and families
• • analysis of the size, Willingness To Pay (WTP), scalability, and competition
• Product market fit is only for students

5C Analysis Example

• Company (Strength) expertise of the founders, network, minimum viable product, no investment, high student debt, high connectivity and phone coverage, high unemployment
• Competitor less expensive then competitors, with experts, no direct influence
• Customer Different types of students (last minute, in advance)
• Big reach, not a one time cost is included through institution promotions

Weaknesses and Strengths

• Company needed on the product itself, strong operationally, strong words of mouth, Human attractiveness, personalization
• The company education is long
• New students come every year, creating a stable income
• Risk of a spill over effect. (use a service again after some times because of good memories)
• The company does not have a lot of credibility (need of reviews, shares, institutions - negotiation power
• 100% dependance on the coaches

Market Valuation (Session 2)

• Market Analysis Toolkit measures market size and share

Market Measurement

• Potential Markets: Consumers with interest in a product
• Available Markets: Consumers with interest, income, and access to a product
• Target Markets: The part of the available market a company targets
• Penetrated Market: Consumers currently buying products in the category
• Market Demand: The total volume bought by a customer group in a specific period and marketing environment. This depends on:
  • Marketing investment
  • Competitors
  • Customer awareness
• Market Forecast: The demand related to a certain level of marketing expenditure (e.g., a budget of 10M$ leads to sales of 1M units). This is Impacted by our own expenditure and competitors' spending
• Primary Demand: Total volume demanded for a product category, such as razors
• Secondary Demand: Total volume demanded for a specific brand or product,. e.g. Gilette razors

Factors Affecting Market Demand

• Marketing expenditure affects market demand
• Market Minimum: A certain level of demand without any spending
• Market Potential: Demand when the marketing expenditures become ineffective
• generating incremental demand can depend on external market environment
• The distance between market potential and minimum indicates sensitivity of the market (sensitive / insensitive: low)
• Market demand ($) = Market Demand (units) * Average retail price point in Market

Estimating Product Demand

• Product Demand: Secondary demand for brand
• Product demand ($) = Product Demand (units) * Average price point of Firm

Market Share Calculations

• Used to understand how our firm is doing VS the competition analysis:
• Unit Share = Product demand in Units / Market demand in Units
• Dollar Share = Product demand in $ / Market demand in $
• Note that both are not that related

Market Penetration

• Utilized to evaluate how much room there is to grow by understanding a market
• Market Penetration Index: Measures percentage of consumers in potential market
• Market Penetration Index = Market Demand / # of consumers in potential market
• A low market penetration index indicates room to grow in the primary market
• Product Penetration Index = Product Demand / # of consumers in the target market which means there is low room to grow in the secondary market

Market Build-Up Methods

• Market demand = (# of buyers in the market) x (annual quantity purchased by an average buyer) x (average price paid by units)
• Refinement Questions:
  • Is there already products presents in the houses of our customers that will depress sales this year ?
  • What is the trend? Is there a trend affecting the customer target?
  • What is the growing trend of the target population?
  • Are new buyers coming in likely to fall into the same usage patterns as existing customers ? Managers track market share development over time

Case Study - Aqualisa Quartz

• Gainsborough manufactures electric showers

Key Learning Outcomes (KLOs)

• Brand Portfolio: A company's collection of brands and its standing within its portfolio
• Portfolio Analysis: Assess brand positions alongside distribution factors, like numerical and weighted amounts
• Numerical Distribution: How many stores carry the product
• Weighted Distribution: In stores, sales shares that stores represent

Growth Strategies

• Options firms use to grow a saturated market:
  • Price War: Price decreasing to get a more competitive edge
  • Mergers & Acquisitions (M&A): Acquiring competitor firms to consolidate market share to gain control
  • Innovation: Developing new products or features to differentiate with competitors

Market Opportunity Analysis

• Evaluating new market opportunities, consider: -Unsatisfied consumer needs or frustrations within that market
• Company's capability to address needs -Availability of financial power to invest
• Sufficient market size to ensure return on investment

Competitive Advantage

• Defining a competitive advantage:
• Possesses uniqueness and solves the consumer problem
• Is difficult to copy, by way of patent, etc.
• Maintainable over time

The BCG Matrix

• Analytical tool measuring a firm's portfolio on market growth and share
• Cash Cows High share, generate profits (e.g., Gainsborough)
• Stars High share, needs investment (e.g., 609)
• Dogs Low share, used to attack competitors
• Question Marks High growth and require further investment

Sales and Distribution Strategies

• Push Strategy pushing products to retailers (discounts for bulk)
• Sell-in vs. Sell-out: selling to retailers vs customer
• Tapped vs. Untapped Markets: Distinguishes a saturated market and a non saturated one.

Pricing Strategies

• Value-Based Pricing: Setting prices based on the customer's view
• Bundle Pricing: Discount when several products are sold

Consumer-Centric Marketing

• Marketing now prioritizes consumers, not the firm
• 5Cs analyses consumer, company, competition
• Network Effect: The idea of consumers bringing other consumers, for exponential growth

Blue Ocean Strategy

• Instead of facing saturated markest, creating "blue" ones

Spillover Effect

• From brand effects/marketing, portfolios are affected

Creating Value and Segmentation (Session 3)

• Market: Group of consumers share the same goals
• Segmentation and Marketing: Business-focused, decides position
• Segments Change Over Time: They can evolve

Data-Driven Marketing

• Conduct qualitative research: interviews vs data-based
• Conduct quantitative research: confirm/validate those interviews

Value Proposition Canvas

• It is about how you achieve those goals, benefits

Segment Attractiveness

• Check growth/profit/competition or not
• Make them broad/effective and be aware of assumptions
• Use company resources. A good consumer is measurable vs actionable and goal-oriented.

Segmentation Costs

• How to get consumers, give support, and manage

Targeted Markets

• Mass marketing = large focus
• Some marketing = specialized focus

Prioritization and Resource Allacation

• The brand will change/shift in high-value

Example - Ontela

• They created pickdek value

Creating Value and Positioning (Session 4)

• Make impact
• Brands use position internally
• Look at consumers, company, and competition
• Check product for unique attributes. KLO

Market Analysis

• More is better
• Challenge is to lower product costs
• Better segment and position

4 Key Points for Brand

• Solve problems and look believable

Growth

• Create product to cater need, show how it is fast but cheap and easy

Examples from Telenor:

• A case study for the brand in Serbia. They offer:
• Mobile use + trust and strong networks
• They have a large client base but zero past

Telenor's Analysis

• Strengths: Banking with cellphones and low fees/barriers
• Target user group would boost profitability
• It makes lives simpler It's all about timing and a good team.

Key Actions

• Make use of market to give product a better edge
• Always check product. Offer support, be available.
• Talk with consumer to better offer quality
• Be transparent in sales/distribution numbers

The YES Case Study

• Founded by Julie Bornstein and Amit Aggarwal
• Al-driven e-commerce startup personalizing an online shopping experience for women
• THE YES creates a dynamic individualized store for each user
• Focus lies in enhancing product discovery, reducing decision fatigue, and improving conversion rates
• THE YES is encountering dilemmas where one is to focus on improving algorithm or invest in paid advertisements
• One faces the challenge in maintaining user trust while monetizing the platform.
• Shifting consumer behaviour lies between targeting "Fashionistas" (High end) with "Fashion Followers" (price sensitive customers)

Company History and Goal

• To find a static and inefficient user experience
• Create Al Individual experiences
• Focus on building capital
• THE YES makes 300 billion in sales and helps traditional retailers that are struggling with transformation and social media

AI Role

• Give shoppers a unique feel, with user interaction
• Over 500 clicks refine. The search matches user preferences
• Seamless brand integration

Brand Relations

• Some brands trust Al. The YES makes 25% with a commission model
• While maintaining its brand, unlike competitors.

Consumers

• There are two persona: fashionistas and followers.