2024_Module 4_ATES_ Introduction Marketing Management.pdf

Introduction to Marketing Module 4: Planning & STP Summer Semester 2024 Prof. Dr. Zelal Ates Introduction to Marketing Prof. Dr. Michael Volkmann Seite 1 Agenda 3. Analysis of current situation and Planning 3.1 Analysis statu...

Introduction to Marketing Module 4: Planning & STP Summer Semester 2024 Prof. Dr. Zelal Ates Introduction to Marketing Prof. Dr. Michael Volkmann Seite 1 Agenda 3. Analysis of current situation and Planning 3.1 Analysis status quo 3.1.1 External perspective 3.1.2 Internal perspective ´ 3.1.3 SWOT analysis 3.2 Planning 3.2.1 target setting 3.2.2 Strategic formulation Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 2 SWOT analysis SWOT analysis Analysis of company‘s Analysis of company‘s potential environment (external) (internal) Analysis macro environment Customer Customer Company Competition Company Competition Opportunities / Threats Strength / Weaknesses Introduction to Marketing Prof. Dr. Michael Volkmann Seite 3 SWOT analysis SWOT analysis is a quick method to analyze the status quo of a company. Due to diagnosis and prognosis of relevant influences on the company’s business the SWOT analysis is the basis for any further strategic decisions to ensure the long-term business success.   Strengths Weakness S W } Analysis of company’s potentials (internal)   Opportunities O Threats T } Analysis of company`s environment (external) Task:  Summarizing of relevant information  Discovering of strategic key problems  Discovering of strategic potential to be exploited  Deriving of strategies / strategic directions Introduction to Marketing Prof. Dr. Michael Volkmann Seite 4 SWOT analysis External analysis „Opportunities“ „Threats“ External factors that the Current and emerging external company may be able to exploit factors that may challenge the to its advantage company‘s performance „Strengths“ Internal capabilities Internal analysis that may help a company reach its objectives „Weaknesses“ Internal limitations that may interfere with a company‘s ability to achieve its objectives Introduction to Marketing Prof. Dr. Michael Volkmann Seite 5 SWOT analysis - strategies Enumeration of opportunities Enumeration of threats „Opportunities“ „Threats“ Enumeration of strengths „Strengths“ Matching: Neutralising: SO-strategy ST-strategy Enumeration of weaknesses „Weaknesses“ Converting: Defensing: WO-strategy WT-strategy Introduction to Marketing Prof. Dr. Michael Volkmann Seite 6 SWOT analysis - strategies External analysis „Opportunities“ „Threats“ „Strengths“ SO-Strategy ST-Strategy Which strengths can we use Do we have strengths to Internal analysis to exploit opportunities? defend threats? „Weaknesses“ WO-Strategy WT-Strategy Which opportunities can we Can we controll use to conquer weaknesses? weaknesses and avoid threats? Introduction to Marketing Prof. Dr. Michael Volkmann Seite 7 SWOT analysis - strategies Enumeration of opportunities Enumeration of threats O1 T1 O2 T2 O3 T3 „Opportunities“ „Threats“ Enumeration of strengths „Strengths“ Matching: Neutralising: S1 S2 SO-strategy (e.g. O2S4) ST-strategy (e.g. T2S3) S3 S4 Enumeration of weaknesses W1 „Weaknesses“ Converting: Defensing: W2 WO-strategy (e.g. O1W4) WT-strategy (e.g. T3W2) W3 W4 Introduction to Marketing Prof. Dr. Michael Volkmann Seite 8  Case Study: SodaStream International Do a SWOT Analysis for Soda Stream. What marketing challenges face SodaStream? Apart from marketing what other challenges is the company facing? What strategic action is SodaStream taking in reaction to its current challenges? Do you think the company will be successful? Justify your answer. Introduction to Marketing Prof. Dr. Michael Volkmann Seite 9 Evaluation of SWOT analysis Advantages Disadvantages / limits  SWOT analysis introduces  Subjective assessments significant information from the  Not empirical proven situation analysis together (integrative analysis tool)  Complexity can not be covered  Decision guidance of market  Comparability among specific time relevant influences period  Reduction of information  Error in the SWOT analysis run complexity through the entire planning process  Focus on key challenges of the  etc. market  Discovering of strategic potentials which can be exploited  Visualization is convincing  etc. Sources: Machazina/Wolf 2015; Meffert et al. 2014 Introduction to Marketing Prof. Dr. Michael Volkmann Seite 10 Agenda 3. Analysis of current situation and Planning 3.1 Analysis status quo 3.1.1 External perspective 3.1.2 Internal perspective ´ 3.1.2 SWOT analysis 3.2 Planning 3.2.1 target setting 3.2.2 Strategic formulation Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 11 Hierarchy of targets Corp. = Vision and Mission values increasing concretion of target setting means-end relationship Corporate goals Departmental goals Individual goals Source : Macharzina/Wolf, Unternehmensführung 2014 Introduction to Marketing Prof. Dr. Michael Volkmann Seite 12 Hierarchy of targets 1. Corporate values We help you organize the world’s information and make it universally accessible and useful. Financial targets: increase of profits worldwide by 8% until end of the year 2. Corporate goals Social targets: no relationship to suppliers which do not stick to wage laws or behave in a discriminatory way Etc. Marketing goals: increase of customer satisfaction by 10% until end of the year in the age group 20-49 in the 3. Departmental goals European market, increase of brand awareness by 5%, increase user group 60+ by 20% until end year Controlling goals: decrease fixed cost for offices and company cars by 5% until end of the year Etc. Conduction of customer survey, improvement of 4. Individual goals safety for personal data of users, easier and quicker payment options Etc. Introduction to Marketing Prof. Dr. Michael Volkmann Seite 13 Zielbeziehungen (In-)Dependencies within target system Independent goals achievement of a goal has no logical connection with the achievement of other goals Conflicting goals Complementary goals Increase of a target leads simultaneously Achievement of a goal leads to an to a decrease of another target increase or approach of another goal Source : Macharzina/Wolf, Unternehmensführung 2014 Introduction to Marketing Prof. Dr. Michael Volkmann Seite 14  Independent Goals Goal One: Sell more products Achievement of a goal has no logical connection with the achievement of other goals Goal Two: Decrease costs Introduction to Marketing Prof. Dr. Michael Volkmann Seite 15 Introduction to International Business Prof. Dr. Michael Volkmann Slide 15  Complementary Goals Goal One: Sell more products Achievement of a goal leads to an increase or approach of another goal (“you hit 2 flies with one stone”) Goal Two: Open more stores Introduction to Marketing Prof. Dr. Michael Volkmann Seite 16 Introduction to International Business Prof. Dr. Michael Volkmann Slide 16  2. Measuring Effectiveness Conflicting Goals Goal One: Sell more products Increase of a target leads simultaneously to a decrease of another target Goal Two: Reduce transportation costs Introduction to Marketing Prof. Dr. Michael Volkmann Seite 17 Introduction to International Business Prof. Dr. Michael Volkmann Slide 17  Exercise Which goals are usually characterised by a complementary relationship to each other? increasing employee satisfaction and saving personnel costs securing financial liquidity and improving the working atmosphere increasing diversity among employees and cost savings in the vehicle fleet cost reduction and profit increase no statement is correct Introduction to Marketing Prof. Dr. Michael Volkmann Seite 18 Target definition the basis of all decisions show future situations that you want to achieve, maintain, or prevent described by target content, target level, and time period ? TARGET CONTENT TARGET TASK TARGET SEGMENT What should be achieved? What is the Which target group objective? is being addressed? ↸ TARGET LEVEL TARGET PERIOD TARGET MARKET W ithin what period Which target How much should of time should it be market is in focus? be achieved? achieved? Introduction to Marketing Prof. Dr. Michael Volkmann Seite 19 Main marketing targets Psychographic targets Economic targets Image Awareness Preference EBIT Satisfaction loylaty Profit Re-Pur- Pur- Market Sales chase chase Share Costs Introduction to Marketing Prof. Dr. Michael Volkmann Seite 20 Anforderungen an Zielsysteme Requirements for target systems Requirements  realistic  quantifiable  hierarchical  consistent, compatible  current  complete (content, time period etc.)  congruent with company values  transparent and controllable Source : Macharzina/Wolf, Unternehmensführung 2014 Introduction to Marketing Prof. Dr. Michael Volkmann Seite 21 Agenda 3. Analysis of current situation and Planning 3.1 Analysis status quo 3.1.1 External perspective 3.1.2 Internal perspective ´ 3.1.2 SWOT analysis 3.2 Planning 3.2.1 Target setting 3.2.2 Strategic formulation Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 22  Strategy how to achieve an objective, goal (or even a mission). It is a thoughtfully constructed plan or method or action that will be employed to achieve the result. GOAL STRATEGIES HELP YOU REACH YOUR TARGET Introduction to Marketing Prof. Dr. Michael Volkmann Seite 23 Strategic Planning, Implementation and Controlling Introduction to Marketing Prof. Dr. Michael Volkmann Seite 24 Business Unit strategic planning process Introduction to Marketing Prof. Dr. Michael Volkmann Seite 25 Porter’s Generic Strategies OVERALL COST LEADERSHIP DIFFERENTIATION FOCUS Introduction to Marketing Prof. Dr. Michael Volkmann Seite 26 Marketing plan contents  Executive summary  Table of contents  Situation analysis  Marketing strategy  Marketing tactics  Financial projections  Implementation controls Introduction to Marketing Prof. Dr. Michael Volkmann Seite 27 Evaluation of marketing plan  Is the plan simple/succinct?  Is the plan complete?  Is the plan specific?  Is the plan realistic? Introduction to Marketing Prof. Dr. Michael Volkmann Seite 28 Basis literature of module 3 Kotler, P. / Keller, K. (2016): Marketing Management, 15th global edition, Essex, pp. 56-87 Jobber, D. / Ellis-Chadwick, F. (2020): Principles and Practice of Marketing, 9th edition, London, pp. 37-60 Introduction to Marketing Prof. Dr. Michael Volkmann Seite 29 Further reading Hollensen, S. (2013): Global Marketing. A decision-oriented approach, 6th edition Keegan, W. / Green, M. (2013): Global Marketing, 7th Edition Esch, F.-R./Herrmann, A./Sattler, H. (2017): Marketing – Eine managementorientierte Einführung, 5. Auflage Macharzina, K./Wolf, J. (2014): Unternehmensführung, 9. Auflage Meffert, H./ Burmann, C./ Kirchgeorg, M. / Eisenbeiß, M. (2018): Marketing: Grundlagen marktorientierter Unternehmensführung, 13. Auflage Introduction to Marketing Prof. Dr. Michael Volkmann Seite 30 Learning objectives module 5 1. In what ways can a company divide the consumer market into segments? 2. How should business markets be segmented? 3. How should a company choose the most attractive target markets? 4. What are the requirements for effective segmentation? 5. What are the different levels of market segmentation? 6. How can a firm develop and establish an effective positioning in the market? 7. How are brands successfully differentiated? Introduction to Marketing Prof. Dr. Michael Volkmann Seite 31 Agenda Market Segmentation and Positioning 1. Market Segmentation 1.1 Need assessment 1.2 Market identification 1.3 Market targeting 1.4 Target marketing strategies 2. Positioning 2.1 Definition 2.2 Perceptual map 2.3 USP 3. Literature Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 32 Agenda Market Segmentation and Positioning 1. Market Segmentation 1.1 Need assessment 1.2 Market identification 1.3 Market targeting 1.4 Target marketing strategies 2. Positioning 2.1 Definition 2.2 Perceptual map 2.3 USP 3. Literature Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 33 Recap: The “Black Box“ Marketing Buyer’s Black Box Buyer’s Responses Other Stimuli Stimuli Product Choice Product Economic Buyer Characteristics Brand Choice Price Technological Place Choice Place Political Buyer Decision Purchase Timing Process Promotion Cultural Purchase Quantity Source: Kotler / Armstrong 2015 Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 34 Recap: Influencing factors of consumer behavior Cultural Social Personal Psychological Age & lifecycle stage Motivation Culture Reference group Occupation Perception Subculture Family Economic circumstances Learning Life style Social class Roles & status Beliefs & attitudes Personality Source: Kotler / Armstrong 2015 Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 35 Example: Identifying Target Customers Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 36 Example: Identifying Target Customers Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 37  In mass marketing, the firm ignores segment differences and goes after the whole market with one offer. It designs a marketing program for a product with a superior image that can be sold to the broadest number of buyers via mass distribution and mass communications. When different groups of consumers have different needs and wants, marketers can define multiple segments. Introduction to Marketing Prof. Dr. Michael Volkmann Seite 38 Need analysis of consumers – example of chocolate Needs towards the product Needs towards marketing mix To enjoy To give yourself a treat To accompany a drink, e.g. coffee To fill up and get extra energy To offer as a gift To eat as part of a meal To eat for health benefits Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 39 Agenda 5. Market Segmentation and Positioning 1. Market Segmentation 1.1 Need assessment 1.2 Market identification 1.3 Market targeting 1.4 Target marketing strategies 2. Positioning 2.1 Definition 2.2 Perceptual map 2.3 USP 3. Literature Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 40 Market Segmentation and its advantages Target market selection Market Tailored Differentiation marketing mix segmentation Definition: “The identification of individuals or Opportunities organizations with similar and threats characteristics that have significant implications for the determination of marketing strategy.” Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 41 Process of Marketing Segmentation and Targeting The disaggregated The segmented The target market market market c1 1 2 3 1 2 3 c3 c2 c1 c3 c1 c3 c4 c6 c5 c2 c4 c5 c2 Marketing c4 c5 mix c7 c8 c7 c6 c8 c7 c6 targeted at c8 segment 3 The characteristics of Customers are grouped Segment 3 is judged to individual customers are into segments on the be most attractive and a understood basis of having similar marketing mix is characteristics. designed for that target market. Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 42 Market segmentation Market segmentation Market identification Targeting  Identifying subsegments within  Optimizes satisfaction of total markets which almost have consumer needs due to homogenous consumer needs differentiated marketing mix Selection of (sub-) Segment-specific Explanatory model of Collection of data Process of data adaption of consumer behavior segments marketing mix Introduction to Marketing Prof. Dr. Michael Volkmann Seite 43 Question Which criteria - besides age, sex and salary - should be considered in order to select the right customer group for the following products?  Rolex Daytona  Apple iPhone Introduction to Marketing Prof. Dr. Michael Volkmann Seite 44 Segmentation consumer targets Consumer segmentation Behavioral Psychographic Profile Benefits sought Lifestyle Demographic Purchase occasion Personality Socio-economic Purchase behaviour Geographic Usage Perceptions and beliefs Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 45 The basis of market segmentation General characteristics High degree of measurability, Geographic accessibility, and actionability Language Political factors Demography Economy Industrial structure Technology Social organization Religion Education Specific characteristics Culture Lifestyle Low degree of measurability, Personality accessibility, and actionability, but high degree of relevance Attitudes and tastes Introduction to Marketing Prof. Dr. Michael Volkmann Seite 46 Effective Segmentation Criteria Characteristics of an ideal and effective segmentation :  Relevant  Measureable  Profitable  Accessible / Responsive  Stable Introduction to Marketing Prof. Dr. Michael Volkmann Seite 47 Agenda 5. Market Segmentation and Positioning 1. Market Segmentation 1.1 Need assessment 1.2 Market identification 1.3 Market targeting 1.4 Target marketing strategies 2. Positioning 2.1 Definition 2.2 Perceptual map 2.3 USP 3. Literature Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 48  Market segmentation is a means to an end: Target Marketing A company needs to evaluate the segments and decide which ones to serve. When evaluating market segments, a company should examine two broad issues: market attractiveness and the company’s capability to compete in the segment. Introduction to Marketing Prof. Dr. Michael Volkmann Seite 49 Evaluating market attractiveness Segment size Segment growth rate Segment profitability Market factors Price sensitivity Bargaining power of customers Barriers to Bargaining power of suppliers market Market segment exit Barriers to market segment entry attractiveness Nature of competition Competitive factors New entrants Competitive differentiation Political, social Political issues and environmental Social trends factors Environmental issues Introduction to Marketing Prof. Dr. Michael Volkmann Seite 50  Capability to compete Exploitable marketings assets Managerial Capability capabilities Cost and to advantages commitment compete Technological edge Introduction to Marketing Prof. Dr. Michael Volkmann Seite 51  Market for Energy Drinks How could you segment the market for energy drinks? Introduction to Marketing Prof. Dr. Michael Volkmann Seite 52 Agenda 5. Market Segmentation and Positioning 1. Market Segmentation 1.1 Need assessment 1.2 Market identification 1.3 Market targeting 1.4 Target marketing strategies 2. Positioning 2.1 Definition 2.2 Perceptual map 2.3 USP 3. Literature Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 53 Target marketing strategies 1. Differentiated targeting strategy B C A D 2. Undifferentiated targeting strategy B C A D 3. Focused targeting strategy B C A D (4. Customized strategy) Introduction to Marketing Prof. Dr. Michael Volkmann Seite 54 Agenda 5. Market Segmentation and Positioning 1. Market Segmentation 1.1 Need assessment 1.2 Market identification 1.3 Market targeting 1.4 Target marketing strategies 2. Positioning 2.1 Definition 2.2 Perceptual map 2.3 USP 3. Literature Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 57 Positioning 1. Market segmentation 2. Target market Positioning 3. USP Where and how to compete Introduction to Marketing Prof. Dr. Michael Volkmann Seite 58 Introduction to Marketing Prof. Dr. Michael Volkmann Seite 59 Introduction to Marketing Prof. Dr. Michael Volkmann Seite 60 Introduction to Marketing Prof. Dr. Michael Volkmann Seite 61 Introduction to Marketing Prof. Dr. Michael Volkmann Seite 62 Brand Positioning: Definition All we do here deal with customers' Mind! Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 63 Brand Positioning: Definition Brand positioning is the act of designing the company's brand offering and image to occupy a distinctive position in the mind of the target market. Source: Marketing Management, Philip Kotler, 2006 Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 64 Why Brand Positioning? Brand choices are varied Competition among brands is tough What we are, is not exactly what our customers understand or want to be… Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 65 What influence customer’s perception of a brand Previous experience with the brand Interactions with sales & customer service Recommendations from friends and colleagues Reviews by reputable sources Advertising Etc. Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 66 Key to successful positioning Clarity Successful Credibility positioning Consistency Competitiveness Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 67  Before : Today: Introduction to Marketing Prof. Dr. Michael Volkmann Seite 68 Agenda 5. Market Segmentation and Positioning 1. Market Segmentation 1.1 Need assessment 1.2 Market identification 1.3 Market targeting 1.4 Target marketing strategies 2. Positioning 2.1 Definition 2.2 Perceptual map 2.3 USP 3. Literature Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 69 Customer’s perceptual map A perceptual map is of the visual technique designed to show how the average target market consumer understands the positioning of the competing products in the marketplace. Source: Kardes, Cronley, & Cline, 2011/ Ferrell & Hartline, 2008 Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 70 Customer Perceptual Map: Example (I) Source: Marketing Study Guide Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 71 Customer Perceptual Customer Perceptual Map: Map: Example Example (II) (II) Source: Marketing Study Guide Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 72  Customer Perceptual Map: Example (II) High A price B C D Wide product Narrow product range range G X F E Low price Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 73  Alternative: Spidergram positioning map (Example of robotic systems) Functionality (10) Our brand Nearest competitor Customisation (9) Financing (3) Price (4) Crisis help (9) Installation (5) Delivery (6) After-sales (6) Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 74  5 Steps for building a perceptual map 1. Need of customers 2. What does product stand for? Is this relevant for customers? 3. What are the advantages/disadvantages compared to the competitors? 4. Choose dimensions for map (no quality, no price) 5. Target positioning vs. current positioning Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 75 Team Work Create a conceptual map with dimensions of customer’s interest for TEMPO. Follow the 5 steps: 1. Need of customers 2. What does product stand for? Is this relevant for customers? 3. What are the advantages/disadvantages compared to the competitors? 4. Choose dimensions for map (no quality, no price) 5. Target positioning vs. current positioning Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 76 Agenda 5. Market Segmentation and Positioning 1. Market Segmentation 1.1 Need assessment 1.2 Market identification 1.3 Market targeting 1.4 Target marketing strategies 2. Positioning 2.1 Definition 2.2 Perceptual map 2.3 USP 3. Literature Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 77  Positioning and USP “Who is Buzz Aldrin?” Introduction to Marketing Prof. Dr. Michael Volkmann Seite 78  Positioning and USP "What´s the name of the first person to walk on the moon? Neil Armstrong, of course. What´s the name of the second? – What´s the name of the highest mountain in the world? Mount Everest in the Himalaya, right? What´s the name of the second highest mountain in the world?" Introduction to Marketing Prof. Dr. Michael Volkmann Seite 79  Unique Selling Proposition (USP) Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 80 USP: Definition Unique selling proposition (USP) is the decisive sales argument for customers to buy the product. Source: Hollensen, 2011 Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 81 USP: Definition "Buy this product, for this specific benefit." Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 82 Key Elements of a Unique Selling Proposition Customer Focus Functional and Emotional Uniqueness Reasons, Not Characteristics Positioning Versus Competitors Source: Brian Hill, 2013 Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 83 USP can take form in different ways by offering The lowest price The highest quality Being exclusive The best customer service The widest choice The best guarantee Etc. Source: Guide to management ideas and gurus, Tim Hindle, 2008 Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 84 Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 85 Benefit & USP What’s outstanding? What’s in there for me? 86 Introduction to Marketing Prof. Dr. Michael Volkmann Seite 86  Tasks The energy drink market in Germany is booming since years. Red Bull has been the market leader for years. Few years ago a new brand has been successfully launched in the German market: Club-Mate. I) Analysis of the brand image in der German market (status quo) Please use the internet (wwww.club-mate.de) to describe your perception of the brand image in Germany. What do you think is the main target group of the energy drink in Germany? Which differences do you see in the positioning of the main competitor brands Red Bull and Monster? Please put your perception into a perceptual map of these three brands in the German energy drink market. Introduction to Marketing Prof. Dr. Michael Volkmann Seite 87  Exercise Choose any one no-alcohol beer or low-alcohol beer that you are familiar with. Identify the positioning of this beer, i.e. its target market and differential advantage. How is the beer’s positioning communicated? Introduction to Marketing Prof. Dr. Michael Volkmann Seite 88 Agenda 5. Market Segmentation and Positioning 1. Market Segmentation 1.1 Need assessment 1.2 Market identification 1.3 Market targeting 1.4 Target marketing strategies 2. Positioning 2.1 Definition 2.2 Perceptual map 2.3 USP 3. Literature Marketing Essentials Module 3 Prof. Dr. Michael Volkmann / Dipl.-Kff. Stephanie Wersig Seite 89 Basis literature of module 5 Jobber, D. / Ellis-Chadwick, F. (2020): Pinciples and Practice of Marketing, 9th edition, London, pp. 203-233 Kotler, P. / Keller, K. (2016): Marketing Management, 15th global edition, Essex, pp. 267-319 Introduction to Marketing Prof. Dr. Michael Volkmann Seite 90 Further reading Hollensen, S. (2013): Global Marketing. A decision-oriented approach, 6th edition Keegan, W. / Green, M. (2013): Global Marketing, 7th Edition Esch, F.-R./Herrmann, A./Sattler, H. (2017): Marketing – Eine managementorientierte Einführung, 5. Auflage Meffert, H./ Burmann, C./ Kirchgeorg, M. / Eisenbeiß, M. (2018): Marketing: Grundlagen marktorientierter Unternehmensführung, 13. Auflage Introduction to Marketing Prof. Dr. Michael Volkmann Seite 91