Podcast
Questions and Answers
According to Peter Drucker's perspective from the early 1970s, what is the fundamental purpose of a business?
According to Peter Drucker's perspective from the early 1970s, what is the fundamental purpose of a business?
- To build brand awareness.
- To innovate and disrupt markets.
- To create a customer. (correct)
- To maximize shareholder value.
Theodore Levitt expanded on Drucker's idea by stating that the purpose of business includes not only creating but also _______ a customer.
Theodore Levitt expanded on Drucker's idea by stating that the purpose of business includes not only creating but also _______ a customer.
- understanding
- keeping (correct)
- satisfying
- educating
In the context of marketing strategy, Shapiro's 'Marketing Process' emphasizes the relationship among how many key elements?
In the context of marketing strategy, Shapiro's 'Marketing Process' emphasizes the relationship among how many key elements?
- Six (correct)
- Four
- Seven
- Five
What is the primary focus of 'marketing strategy formation' within Shapiro's framework?
What is the primary focus of 'marketing strategy formation' within Shapiro's framework?
According to Robert Davis, a marketing strategy can be best described as a:
According to Robert Davis, a marketing strategy can be best described as a:
Which of the following best describes the 'aspiration decision' in marketing strategy?
Which of the following best describes the 'aspiration decision' in marketing strategy?
The 'action plan decision' in marketing strategy is commonly known as:
The 'action plan decision' in marketing strategy is commonly known as:
What is the primary purpose of the '5 Cs analysis' in marketing strategy?
What is the primary purpose of the '5 Cs analysis' in marketing strategy?
In the context of 5Cs analysis, 'Context' primarily refers to which type of factors?
In the context of 5Cs analysis, 'Context' primarily refers to which type of factors?
What does STP stand for in marketing strategy?
What does STP stand for in marketing strategy?
What is the 'decision-making unit' (DMU) primarily concerned with in customer analysis?
What is the 'decision-making unit' (DMU) primarily concerned with in customer analysis?
What is a 'core competency' of a company, as described by Prahalad and Hamel?
What is a 'core competency' of a company, as described by Prahalad and Hamel?
Which of the following is NOT one of the 'three degrees of interaction' in the marketing mix identified by Benson Shapiro?
Which of the following is NOT one of the 'three degrees of interaction' in the marketing mix identified by Benson Shapiro?
What is 'product line breadth' primarily concerned with?
What is 'product line breadth' primarily concerned with?
Which of the following is an example of 'trading down' in product line evolution?
Which of the following is an example of 'trading down' in product line evolution?
In the 6 Ms model for communications strategy, 'Mission' refers to:
In the 6 Ms model for communications strategy, 'Mission' refers to:
What are the two dimensions used to contrast communication vehicles in Exhibit 8?
What are the two dimensions used to contrast communication vehicles in Exhibit 8?
Which of the following best describes a 'pull strategy' in promotion?
Which of the following best describes a 'pull strategy' in promotion?
What is the primary focus of 'place' decisions in the marketing mix?
What is the primary focus of 'place' decisions in the marketing mix?
What is the primary objective of 'pricing decisions' in the marketing mix?
What is the primary objective of 'pricing decisions' in the marketing mix?
What does 'perceived value' (PV) represent in pricing decisions?
What does 'perceived value' (PV) represent in pricing decisions?
What is 'true economic value' (TEV) calculated relative to?
What is 'true economic value' (TEV) calculated relative to?
Which of the following is NOT one of the three types of price customization generally practiced, as exemplified by Disney?
Which of the following is NOT one of the three types of price customization generally practiced, as exemplified by Disney?
According to Levitt, what is a critical challenge in customer retention?
According to Levitt, what is a critical challenge in customer retention?
What is 'buyer stickiness' in marketing terms?
What is 'buyer stickiness' in marketing terms?
Which 'C' in the 5Cs analysis is positioned at the center of the circle in Exhibit 2, to emphasize its primacy?
Which 'C' in the 5Cs analysis is positioned at the center of the circle in Exhibit 2, to emphasize its primacy?
What is the 'Zero Moment of Truth' (ZMOT) coined by Google, referring to?
What is the 'Zero Moment of Truth' (ZMOT) coined by Google, referring to?
Which of the following best describes 'coolhunting' in marketing strategy formation?
Which of the following best describes 'coolhunting' in marketing strategy formation?
What critical aspect of customer analysis did Peloton identify that differentiated them from competitors like SoulCycle?
What critical aspect of customer analysis did Peloton identify that differentiated them from competitors like SoulCycle?
What was a key strategic decision by Peloton in terms of distribution, given the 'market education job' required for their product?
What was a key strategic decision by Peloton in terms of distribution, given the 'market education job' required for their product?
Which of the following best describes the relationship between positioning and marketing mix, according to Kotler?
Which of the following best describes the relationship between positioning and marketing mix, according to Kotler?
What is the primary reason behind Samsung's shift from a low-cost strategy to focusing on high-quality products?
What is the primary reason behind Samsung's shift from a low-cost strategy to focusing on high-quality products?
In the context of price sensitivity, when is a customer's price sensitivity likely to increase?
In the context of price sensitivity, when is a customer's price sensitivity likely to increase?
Which of the following best represents the 'aspiration decision' for Zipcar, as described in the positioning statement example?
Which of the following best represents the 'aspiration decision' for Zipcar, as described in the positioning statement example?
What is the 'Achilles’ heel of strategy' in market definition?
What is the 'Achilles’ heel of strategy' in market definition?
What is the primary reason for the railroad industry's decline in the early 20th century?
What is the primary reason for the railroad industry's decline in the early 20th century?
In the context of market segmentation, what makes segments 'meaningful'?
In the context of market segmentation, what makes segments 'meaningful'?
What is the main benefit of using 'personas' in marketing strategy?
What is the main benefit of using 'personas' in marketing strategy?
According to McKinsey's credit card customer segmentation, which segment is characterized by 'loving rewards' and 'disliking revolving debt'?
According to McKinsey's credit card customer segmentation, which segment is characterized by 'loving rewards' and 'disliking revolving debt'?
What is a key difference between 'multitarget marketing' and 'niche marketing'?
What is a key difference between 'multitarget marketing' and 'niche marketing'?
What is the 'acid test' of a good segmentation scheme?
What is the 'acid test' of a good segmentation scheme?
Considering the three purposes of marketing (acquiring, retaining, incenting brand ambassadors), which purpose does Levitt primarily address with his customer-retention challenge?
Considering the three purposes of marketing (acquiring, retaining, incenting brand ambassadors), which purpose does Levitt primarily address with his customer-retention challenge?
Which of the following is the MOST intensely difficult question designed to test understanding of marketing strategy formation, integrating multiple concepts?
Which of the following is the MOST intensely difficult question designed to test understanding of marketing strategy formation, integrating multiple concepts?
In the context of pricing strategy, if a company decides to shift from a uniform pricing policy to price customization, which of the following would be the MOST important initial step?
In the context of pricing strategy, if a company decides to shift from a uniform pricing policy to price customization, which of the following would be the MOST important initial step?
Consider a hypothetical scenario: A luxury car manufacturer, traditionally focused on 'performance luxury' segment, is considering expanding into the 'city car performance' niche. Which aspect of their existing marketing strategy would require the MOST significant overhaul?
Consider a hypothetical scenario: A luxury car manufacturer, traditionally focused on 'performance luxury' segment, is considering expanding into the 'city car performance' niche. Which aspect of their existing marketing strategy would require the MOST significant overhaul?
According to Theodore Levitt, what is the dual purpose of a business?
According to Theodore Levitt, what is the dual purpose of a business?
Benson Shapiro's 'Marketing Process' outlines a series of steps for customer-centered marketing. Which of the following is the initial stage?
Benson Shapiro's 'Marketing Process' outlines a series of steps for customer-centered marketing. Which of the following is the initial stage?
Robert Davis describes marketing strategy as a 'blueprint'. What is the primary function of this blueprint?
Robert Davis describes marketing strategy as a 'blueprint'. What is the primary function of this blueprint?
In the 5 Cs analysis, which 'C' encourages marketers to consider broader influences such as cultural and legal factors?
In the 5 Cs analysis, which 'C' encourages marketers to consider broader influences such as cultural and legal factors?
Within the 'Aspiration Decision' of marketing strategy, what does the 'Targeting' step primarily involve?
Within the 'Aspiration Decision' of marketing strategy, what does the 'Targeting' step primarily involve?
The 'Action Plan' in marketing strategy is often described as the 'Marketing Mix'. What is the fundamental purpose of the 'Marketing Mix'?
The 'Action Plan' in marketing strategy is often described as the 'Marketing Mix'. What is the fundamental purpose of the 'Marketing Mix'?
Which of Shapiro's 'degrees of interaction' in the marketing mix focuses on ensuring a logical alignment between all marketing elements?
Which of Shapiro's 'degrees of interaction' in the marketing mix focuses on ensuring a logical alignment between all marketing elements?
If a company decides to offer a 'good, better, best' product line, what is the primary organizational logic behind this strategy in terms of customer perception?
If a company decides to offer a 'good, better, best' product line, what is the primary organizational logic behind this strategy in terms of customer perception?
What is the primary goal of 'promotion' within the marketing mix, especially after a customer has made an initial purchase?
What is the primary goal of 'promotion' within the marketing mix, especially after a customer has made an initial purchase?
What does the concept of 'Zero Moment of Truth' (ZMOT) primarily emphasize in the digital age of marketing?
What does the concept of 'Zero Moment of Truth' (ZMOT) primarily emphasize in the digital age of marketing?
In the context of 'Place' decisions within the marketing mix, what is the ultimate goal concerning product accessibility for customers?
In the context of 'Place' decisions within the marketing mix, what is the ultimate goal concerning product accessibility for customers?
What is 'perceived value' (PV) in pricing strategy, in relation to what a customer is willing to pay?
What is 'perceived value' (PV) in pricing strategy, in relation to what a customer is willing to pay?
When calculating 'True Economic Value' (TEV), against what benchmark must the calculation be made?
When calculating 'True Economic Value' (TEV), against what benchmark must the calculation be made?
Which of the following scenarios would typically NOT increase a customer's price sensitivity for a product?
Which of the following scenarios would typically NOT increase a customer's price sensitivity for a product?
What is the 'Achilles’ heel of strategy' specifically referring to in the context of market definition?
What is the 'Achilles’ heel of strategy' specifically referring to in the context of market definition?
Why did the railroad industry decline in the early 20th century, according to a classic marketing perspective?
Why did the railroad industry decline in the early 20th century, according to a classic marketing perspective?
What is the 'acid test' for evaluating the effectiveness of a market segmentation scheme?
What is the 'acid test' for evaluating the effectiveness of a market segmentation scheme?
What was a key strategic advantage Peloton gained by choosing to manage sales in-house rather than through intermediaries?
What was a key strategic advantage Peloton gained by choosing to manage sales in-house rather than through intermediaries?
Considering the three purposes of marketing (acquiring, retaining, and incenting brand ambassadors), which of these is MOST directly challenged by Levitt's customer-retention perspective?
Considering the three purposes of marketing (acquiring, retaining, and incenting brand ambassadors), which of these is MOST directly challenged by Levitt's customer-retention perspective?
Samsung's shift from a low-cost strategy to a high-quality product focus significantly altered its competitive positioning. Which aspect of the 5Cs analysis would have MOST directly prompted this strategic shift?
Samsung's shift from a low-cost strategy to a high-quality product focus significantly altered its competitive positioning. Which aspect of the 5Cs analysis would have MOST directly prompted this strategic shift?
Imagine a hypothetical scenario where a new entrant in the smartphone market adopts a 'multitarget marketing' strategy, directly competing with both Apple and Samsung across multiple segments. What is the MOST significant risk this new entrant faces compared to a niche marketing approach?
Imagine a hypothetical scenario where a new entrant in the smartphone market adopts a 'multitarget marketing' strategy, directly competing with both Apple and Samsung across multiple segments. What is the MOST significant risk this new entrant faces compared to a niche marketing approach?
Consider a company that initially adopted uniform pricing, but is now considering price customization. Which of the following analyses would be MOST crucial as the FIRST step in transitioning to price customization?
Consider a company that initially adopted uniform pricing, but is now considering price customization. Which of the following analyses would be MOST crucial as the FIRST step in transitioning to price customization?
If a luxury brand traditionally known for 'performance luxury' decides to expand into a 'city car performance' niche, which element of their marketing strategy would likely require the MOST radical change?
If a luxury brand traditionally known for 'performance luxury' decides to expand into a 'city car performance' niche, which element of their marketing strategy would likely require the MOST radical change?
In the context of the 6 Ms of communication strategy, which 'M' directly addresses the specific points to be conveyed to the target audience?
In the context of the 6 Ms of communication strategy, which 'M' directly addresses the specific points to be conveyed to the target audience?
Exhibit 8 contrasts communication vehicles along two dimensions. What are these two dimensions?
Exhibit 8 contrasts communication vehicles along two dimensions. What are these two dimensions?
What is the primary focus of a 'pull strategy' in promotion?
What is the primary focus of a 'pull strategy' in promotion?
Which 'C' of the 5Cs analysis is positioned at the center of Exhibit 2, symbolizing its importance in marketing strategy?
Which 'C' of the 5Cs analysis is positioned at the center of Exhibit 2, symbolizing its importance in marketing strategy?
What is 'buyer stickiness' in marketing?
What is 'buyer stickiness' in marketing?
What was a key differentiator Peloton identified in customer analysis compared to competitors like SoulCycle?
What was a key differentiator Peloton identified in customer analysis compared to competitors like SoulCycle?
Based on Exhibit 8, which communication vehicle is characterized by 'Two-Way Instantaneous' communication and 'Addressable/Customized' messaging?
Based on Exhibit 8, which communication vehicle is characterized by 'Two-Way Instantaneous' communication and 'Addressable/Customized' messaging?
What does 'product line breadth' primarily refer to in product decisions?
What does 'product line breadth' primarily refer to in product decisions?
What marketing term describes the practice of observing and predicting cultural and lifestyle trends, which is increasingly important in marketing strategy formation?
What marketing term describes the practice of observing and predicting cultural and lifestyle trends, which is increasingly important in marketing strategy formation?
What is the primary purpose of 'monitoring and auditing' in Shapiro's six-part marketing process?
What is the primary purpose of 'monitoring and auditing' in Shapiro's six-part marketing process?
Which of the following is NOT typically considered a 'buyer characteristic' used for price customization, as exemplified by Disney?
Which of the following is NOT typically considered a 'buyer characteristic' used for price customization, as exemplified by Disney?
In the context of segmentation, what makes a segment 'meaningful' for marketers?
In the context of segmentation, what makes a segment 'meaningful' for marketers?
What is the main advantage of using 'personas' in marketing strategy formation?
What is the main advantage of using 'personas' in marketing strategy formation?
According to McKinsey's credit card customer segmentation, which segment is MOST likely to actively seek balance transfer offers and pay annual fees for reward cards?
According to McKinsey's credit card customer segmentation, which segment is MOST likely to actively seek balance transfer offers and pay annual fees for reward cards?
What is the key distinction between 'multitarget marketing' and 'niche marketing' strategies?
What is the key distinction between 'multitarget marketing' and 'niche marketing' strategies?
In 'customer analysis', after defining the 'decision-making unit' (DMU), what is the next crucial step in understanding customer behavior?
In 'customer analysis', after defining the 'decision-making unit' (DMU), what is the next crucial step in understanding customer behavior?
According to Prahalad and Hamel, what are the two key components of a 'core competency'?
According to Prahalad and Hamel, what are the two key components of a 'core competency'?
Which of the following best exemplifies 'trading down' in product line evolution?
Which of the following best exemplifies 'trading down' in product line evolution?
Which of the 6 Ms of communication strategy relates to the quantifiable impact expected from a communication campaign?
Which of the 6 Ms of communication strategy relates to the quantifiable impact expected from a communication campaign?
What is the primary function of 'place' decisions in the marketing mix regarding the flow of products?
What is the primary function of 'place' decisions in the marketing mix regarding the flow of products?
What is the fundamental objective of 'pricing decisions' in the marketing mix?
What is the fundamental objective of 'pricing decisions' in the marketing mix?
According to Levitt, what is a significant challenge in customer retention that marketers must constantly address?
According to Levitt, what is a significant challenge in customer retention that marketers must constantly address?
When defining 'competition' in market analysis, what approach did Peloton take to broaden their competitive scope effectively?
When defining 'competition' in market analysis, what approach did Peloton take to broaden their competitive scope effectively?
What is the primary purpose of using 'personas' in marketing strategy, in relation to segmentation?
What is the primary purpose of using 'personas' in marketing strategy, in relation to segmentation?
In the context of price customization practiced by Disney, varying ticket prices based on the number of days purchased is an example of which type of price customization?
In the context of price customization practiced by Disney, varying ticket prices based on the number of days purchased is an example of which type of price customization?
Which of the following best describes the 'aspiration decision' for Zipcar, as reflected in their positioning statement example?
Which of the following best describes the 'aspiration decision' for Zipcar, as reflected in their positioning statement example?
According to the framework, what is the immediate next step after 'Marketing Strategy Formation' in Shapiro's 'Marketing Process'?
According to the framework, what is the immediate next step after 'Marketing Strategy Formation' in Shapiro's 'Marketing Process'?
In Robert Davis's description of marketing strategy as a 'blueprint,' what is the primary purpose of this blueprint?
In Robert Davis's description of marketing strategy as a 'blueprint,' what is the primary purpose of this blueprint?
Which component of the 5Cs analysis encourages a company to evaluate its internal capabilities and resources relative to its marketing objectives?
Which component of the 5Cs analysis encourages a company to evaluate its internal capabilities and resources relative to its marketing objectives?
Within the 'Aspiration Decision,' what is the ultimate goal of the 'Positioning' step?
Within the 'Aspiration Decision,' what is the ultimate goal of the 'Positioning' step?
Which degree of interaction in Shapiro's marketing mix goes beyond 'consistency' to ensure elements work together to amplify value?
Which degree of interaction in Shapiro's marketing mix goes beyond 'consistency' to ensure elements work together to amplify value?
In product policy decisions, 'product line depth' refers to the number of offerings ______.
In product policy decisions, 'product line depth' refers to the number of offerings ______.
What is 'trading down' in product line evolution primarily aimed at achieving?
What is 'trading down' in product line evolution primarily aimed at achieving?
In the 6 Ms of communication strategy, 'Message' directly refers to:
In the 6 Ms of communication strategy, 'Message' directly refers to:
Exhibit 8 contrasts communication vehicles based on 'Two-Way Communication' and what other dimension?
Exhibit 8 contrasts communication vehicles based on 'Two-Way Communication' and what other dimension?
What is the primary role of intermediaries, such as retailers, in a 'push strategy'?
What is the primary role of intermediaries, such as retailers, in a 'push strategy'?
In pricing strategy, 'perceived value' (PV) primarily sets ______ for the price a company can charge.
In pricing strategy, 'perceived value' (PV) primarily sets ______ for the price a company can charge.
When calculating 'True Economic Value' (TEV), the benchmark for comparison is always:
When calculating 'True Economic Value' (TEV), the benchmark for comparison is always:
Customer price sensitivity is likely to increase when:
Customer price sensitivity is likely to increase when:
The 'Achilles’ heel of strategy' specifically relates to which aspect of marketing strategy?
The 'Achilles’ heel of strategy' specifically relates to which aspect of marketing strategy?
The decline of the railroad industry in the early 20th century is classically attributed to a failure in ______.
The decline of the railroad industry in the early 20th century is classically attributed to a failure in ______.
What 'acid test' is used to evaluate the effectiveness of a market segmentation scheme?
What 'acid test' is used to evaluate the effectiveness of a market segmentation scheme?
Peloton's strategic decision to manage sales in-house, rather than through intermediaries, was primarily driven by the need to perform a significant ______.
Peloton's strategic decision to manage sales in-house, rather than through intermediaries, was primarily driven by the need to perform a significant ______.
According to Levitt's perspective on customer retention, the natural tendency of customer relationships in business is towards ______.
According to Levitt's perspective on customer retention, the natural tendency of customer relationships in business is towards ______.
Samsung's shift from a low-cost to high-quality product strategy would have MOST significantly impacted which area of the 5Cs analysis prompting this change?
Samsung's shift from a low-cost to high-quality product strategy would have MOST significantly impacted which area of the 5Cs analysis prompting this change?
If a luxury brand, known for 'performance luxury,' expands into 'city car performance,' which marketing strategy element requires the MOST radical change?
If a luxury brand, known for 'performance luxury,' expands into 'city car performance,' which marketing strategy element requires the MOST radical change?
Flashcards
Marketing strategy formation
Marketing strategy formation
Setting long-term goals and the basic marketing approach.
Marketing Planning
Marketing Planning
A detailed plan with near-term objectives, including resource allocation.
Programming, allocating, and budgeting
Programming, allocating, and budgeting
Assigning resources to activities to achieve objectives.
Implementation
Implementation
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Monitoring and auditing
Monitoring and auditing
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Analysis and research
Analysis and research
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5 C's Analysis
5 C's Analysis
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Aspiration Decision
Aspiration Decision
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Action plan decision
Action plan decision
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Segmenting
Segmenting
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Targeting
Targeting
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Positioning
Positioning
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Marketing mix
Marketing mix
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Four major tasks to link with customers
Four major tasks to link with customers
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Aspiration decision
Aspiration decision
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Customer Analysis
Customer Analysis
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Company analysis
Company analysis
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Collaborator Analysis
Collaborator Analysis
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Competitive Analysis
Competitive Analysis
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Context Analysis
Context Analysis
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True economic value (TEV)
True economic value (TEV)
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Potential Market
Potential Market
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Available market
Available market
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Target market
Target market
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Market Demand
Market Demand
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Market Forecast
Market Forecast
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Primary demand
Primary demand
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Secondary demand
Secondary demand
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Market minimum
Market minimum
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Market Potential
Market Potential
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Penetrated market
Penetrated market
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Market penetration index
Market penetration index
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Product penetration index
Product penetration index
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Market segmentation
Market segmentation
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Target market
Target market
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Positioning statement
Positioning statement
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Perceptual mapping
Perceptual mapping
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Buyer Stickiness
Buyer Stickiness
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Churn
Churn
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Coolhunting
Coolhunting
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Distribution channels
Distribution channels
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Product Line
Product Line
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Pull strategy
Pull strategy
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Push Strategy
Push Strategy
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Study Notes
Introduction
- Peter Drucker stated in the early 1970s that a business aims to create a customer.
- Theodore Levitt added that business should create and keep customers.
- Levitt noted that to achieve business goals companies should differentiate their products.
- Social media, with over two billion users monthly, can help make customers active ambassadors for a brand.
- Benson Shapiro's "The Marketing Process" explains how to differentiate by showing the link between the six key elements of a customer-centered marketing process.
Defining Marketing Strategy
- Marketing strategy formation is about setting goals and basic marketplace approaches, such as customer groups and value creation.
- Marketing planning depends on the industry and can vary based on situation.
- Programming, allocating, and budgeting involves setting objectives and plans.
- Implementation means executing specified programs.
- Monitoring and auditing involves evaluating results and developing corrective action plans.
- Analysis and research involves gathering data to aid the prior four steps.
- Robert Davis describes marketing strategy as the "blueprint" for a firm's competition plan.
- Companies aim to acquire, retain, and develop brand ambassadors.
- Levitt's "differentiation" focuses on a specific customer segment.
- Fitness startup Peloton faces various competitors for shape-help, including home fitness equipment, fitness facilities, and newcomers like SoulCycle.
- SoulCycle was founded in 2005 to create alternatives to fitness routines.
- Peloton identified shortcomings in offerings for some customers, creating the “Peloton Difference” by delivering a smart bike with live classes from Manhattan studios.
- Peloton originally priced its bike at $1,995 plus $250 for delivery, and access to live classes was $39 per month.
- By August 2018, Peloton reached annual sales of $700 million and had over 1 million members.
- Peloton's 96% annual renewal rate and over 400,000 Facebook followers showed its ability to retain customers and create brand ambassadors.
- Differentiation that leads to revenues, covers costs, and contributes profits is not a simple task, and most new products fail to achieve it.
- Organizations do not have to create a mass-market product loved by everyone to be successful.
- Electronics maker Vizio carved out a niche for home entertainment offering the latest innovations at a significant savings, while the luxury brand Bang & Olufsen directs its offerings to a price-insensitive group seeking maximum performance.
- Marketing strategy involves selecting customers, competitive differentiation, and creating a reaching plan.
- The classic 5 Cs analysis aids marketing strategy (customer, company, collaborators, competition, and context).
- Every organization requires two sets of decisions: aspiration decision (market) and action plan decision (marketing mix).
Essential Reading
- Organizations need different strategies for different offerings.
- Black and Decker uses contrasting marketing to sell power tools to homeowners and construction companies.
- Steinway focuses on "Making the World's Finest Pianos", limiting its products and sales outlets.
- Yamaha provides a large range of instruments from grand pianos to portable keyboards.
- L'Oréal Paris' cosmetics are in department stores, grocery stores, drugstores, and mass merchants, while Mary Kay can only be purchased from a certified beauty consultant.
- Samsung changed its marketing over time from a low cost strategy to focusing on manufacturing expertise, becoming a top-quality producer ranked 6th by Interbrand in 2018.
- Customer differences in product values mean that the market consists of varied products priced at different levels.
Overview of Marketing Strategy Formation
- Multiple approaches exist to go to the market, it is possible to articulate the best way to develop a marketing strategy for a circumstance.
- Three inter-related sections that make up this strategy include: Analysis, Decisions. and Outcomes.
- Aspiration decisions focuses on identifying the firm's ambitions, including segmenting to identify groups, who they target, and the positioning in the mind of customers.
- After the firm has an aspiration decision, it begins on its action plan, its marketing mix.
- This mix consists of the product that is offered, the communication to the customer, distribution mechanisms, and price charged.
Analysis Underlying Marketing Strategy Formation
- When developing a marketing strategy, a company assesses five factors which include: Customer Behavior, Company, Collaborators, Competition, and Context.
- With customer analysis the marketer assesses how customers are making their purchase process, and what is important in the decision making process.
- The decision-making unit must be understood as who is a part of the buying process.
- Formal market research such as surveys are often essential at this stage, making sure that the targeted segment fits product needs.
- John Foley created Peloton after being addicted to high-energy indoor exercise classes at SoulCycle.
- Due to his job and family constraints, getting to the studio was too challenging for Foley, he knew technology could come up with a solution to simulate the energy and support.
- Peloton researched that millions of Americans spend an equivalent on fitness, more than the cost of the Peloton itself.
- Its initial concept was aimed at its select market, the affluent and suburban audience.
- Through dialogue with the consumer community that there was an opportunity with the consumers who thought $2,000 was to much an investment, but that the product was important to them.
- Peloton surveys patrons to look for trends in its email and social channels.
- As its customer base widened beyond being affluent, communications began that it was really an economical alternative by offering interest-free plans.
- Peloton's DMU (Decision Making Unit) was rather simple, just an individual or a couple living together.
- Thomas Bonoma said there are six major roles in buying situations for a product, Initiators, Gatekeepers, Deciders, Influencers, Purchasers, and Users.
Company Analysis
- Company skills and weaknesses are assessed in company analysis for the strengths of marketing strategy.
- Customer Analysis allows Peloton to create a successful product, its is a necessity to ensure that its fits skill set needed or how these can be accomplished.
- Understand your firms finances, manufacturing skills, and RD. This is how to achieve success.
- Prahalad and Hamel set out a core competency with two features, contribute to customer value and be difficult for the competition to meet.
- Peloton succeeded by having a vision of its company.
- Its founder Carolyn Tisch Blodgett, said Peloton had aimed to revolutionize the fitness sector with tech.
Collaborator Analysis
- The C of collaborators involves analyzing external assets of the company to best reach consumers.
- One collaborator was the website Kickstarter to fund the product.
- Peloton gained money by pledging a bike for over $1500.
Competitive Analysis
- Creating more benefits minus cost for the consumer is needed when competing.
- Founding members of Peloton were quite familiar with competitors through prior job experience.
- Peloton identified one competitor as people not committing to work outs at the time.
- Most people who bought a peloton did not want to work out at the same traditional places.
- Competitive analysis demands the assessment of other's offers, the way they address it, and how that will all evolve.
- Begin with a fundamental understanding of strengths and weaknesses.
Context Analysis
- Context, defined as technology or internet, can rapidly change business practices.
- The internet has brought cultural trends to social interactions and vibrant online communities.
- Culture itself as context, can shift quickly and be monitored carefully.
- Most fortunes are made via anticipating cultural trends. The Marketing Landscape
- Politics, regulation, law, and social norms are not fixed landscape and are dynamic disruptors.
- Markets such as banking, television, and pharmaceuticals operate in volatile settings. It is dangerous design marketing strategies for heavily regulated settings.
- Understand your customer in order to analyze all the five C's of these analysis for proper implementation.
Aspiration Decision: Segmenting, Targeting, and Positioning
- The firm hopes to gain success in the market is defined in an aspiration process.
- Segmenting identifys the best market, its process includes market, targeting, and positioning the customers into their desires.
- Coke zero was intended to suit young adults in marketing.
- Chase Sapphire credit card was specifically geared to attract millenials.
- IKEA stated they wanted someone who was willing to assemble items.
- Burger Bugs limits customers to paying premium fees.
- Spirit Airlines targets price costumers.
Segmentation Variables
- Consider how organizations fine the market which allows organization to make particular needs of those customers.
- Segmentation has become key in marketing and theorodre levit says if you're not thinking segments, youre not thinking.
- Target market selection is critical for all those involved in the process.
- Segmentation should factor in those corporate goals.
The Action Plan: The Marketing Mix Decision
- Four Ps terminology of product, price, promotion. (communication strategy), and place (channels of distribution) is to set in the marketing mix.
- It is important for various elements to blend well
- The minimum standard, applying a good fit is the consistency of mix elements.
- Benson Shapiro identified degrees of interaction in the marketing mix; consistency, integration with existance of positive relation, and each element is used to its advantage to ensure overall capture of the mix.
Product Decisions
- The product in place can be referred to, in multiple ways, instead of a single core feature.
- A conventional cost thermostat, costing around 25.00 is the traditional amount compared to $249 ( in 2019 ).
- The nest thermostat can be used to provide multiple benefits.
- Brand name and reputation, assistence, or warrant are important because of their values, and why marketers to need to create them.
Promotion decisions
- How organization communicate among other customer in producing and better their positioning.
- It can be to great knowledge.
- After customers have tried something, promotion has the same level specified.
- More individuals seek an understanding about a brand in todays culture.
- Google is known for their moment of truth as a customer stands in a grocer store.
- Many uses use customer review on social platforms.
- The 6Ms model: the market, what's the mission, message, Media, money, and measuring metrics.
- Tv ads are typical in communications to mass audience.
Place Decisions
- The third P refers to places where organization decides to get to market.
- A firm must link from the chosen locations to have great major tasks.
- Depending on those requirements and strats, organization place product in fundamental different ways.
- The choices determine the importance if the players, and their power to play the profits shared.
Pricing Decisions
- Money and cost with three elements represent the marketing mix with effective exectution.
- Price as tapping to the to create value from all, can generate better effects with profits needed.
- Getting pricing right is critical because if its highly leveraged effects on the bottom line of that can improve price realization.
- Auctions, the which Price is determined can be for good sets of small projects only to some.
- Three points to consider value of the product to cutomer, opportunity to vary, and sensitivity.
The Value Based Approach
- The key is perceived value of where the item sets the upper consumer level.
- There is functional offerings because.
- The value of TCV Must make all take place over what the next level of alternative.
Conclusion
- The purposes of most marketers are to acquire customers, retain customers, and the incentiicng of the new brand at connected worlds.
- Marketing requires for a company to continue the constant fight and the erosion of sensitivitys and attentive of the marketing company.
- Distinguishing themselves in the superior ability to retain key cliental and Disney are known to excel.
- The net promotere score is to track those whom give the largest scores the the new company ( like Disney ).
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