CM2_full-5-84.pdf Marketing Studies II

Part 2a: Strategic Marketing From the Marketing Environment to the Marketing Mix (Theory related to BrandPro) 5 Marketing Studies II 6 Marketing Studies II  https://app.wooclap.com/BRANDPROSS ▪ Which of these tw...

Part 2a: Strategic Marketing From the Marketing Environment to the Marketing Mix (Theory related to BrandPro) 5 Marketing Studies II 6 Marketing Studies II  https://app.wooclap.com/BRANDPROSS ▪ Which of these two men is more likely to survive? ▪ An OLD man who travels WEST and gets lost in a FOREST ▪ A YOUNG man who travels EAST and gets lost in a DESERT  Forest vs Desert 8 Marketing Studies II  Choose wisely where you go 9 Marketing Studies II  Vision x Strategy Vision Deep understanding of the unmet needs you serve The importance of vision lies in its ability to provide WHY organizations with a clear and inspiring picture of their future, guiding their actions and decision- making towards success. Strategy …is a detailed plan of action designed to achieve specific goals and objectives How to reach the vision by......constantly monitoring opportunities and threats in the HOW environment... and leveraging your strengths to take advantage of these opportunities 10 Marketing Studies II  Vision vs Strategy ▪ RIGHT vision, RIGHT strategy = very likely SUCCESS … you know where you’re going and how to get there ▪ RIGHT vision, WRONG strategy = likely SUCCESS … it might require adjustments or changes in the approach along the way ▪ WRONG vision, RIGHT strategy = probable FAILURE … the goal itself is not appropriate or achievable ▪ WRONG vision, WRONG strategy = certain FAILURE … failure is almost guaranteed because there is no clear direction or effective means 11 Marketing Studies II  https://www.youtube.com/watch?v=ilptDccPQDM The case of Kodak 12 Marketing Studies II  https://thepracticalleader.com/4-components-to-include-in-your-vision-statement/ 4 Components to consider in a Vision Statement Vision vs Mission: A vision statement looks toward the HOW WHO future (what the company attempts to achieve), but a mission statement talks about what the company is doing in the present (what your company does). WHAT Company’s vision must align with: its mission, strategic plan, 13 organizational culture and values Marketing Studies II  Examples of Iconic Product Visions “to create a better everyday life for many people” “Bring inspiration and innovation to every athlete* in the world. (*If you have a body, you are an athlete.)” “A world without poverty.” https://www.projectmanager.com/blog/guide-writing-perfect-vision-statement-examples 14 Marketing Studies II Wrong Vision? 15 Marketing Studies II 16 Marketing Studies II  Steve Jobs' Visions and Strategies Core strength: Simplify / beautify the user experience Mature vision: Early vision: “Enriching people’s lives” “Computers for ordinary people” Leaves Apple in 1985 Returns 17 in 1997 Marketing Studies II Steve Jobs’ Golden Opportunities  Steve Jobs’ Golden Opportunities In 1976 computers were ugly and difficult to use Leaves Apple in 1985 Returns 19 in 1997 Marketing Studies II  Steve Jobs’ Golden Opportunities In 1983 computers were STILL ugly and difficult to use Leaves Apple in 1985 Returns 20 in 1997 Marketing Studies II  Steve Jobs’ Golden Opportunities In 1997 computers were old fashioned Leaves Apple in 1985 Returns 21 in 1997 Marketing Studies II  Steve Jobs’ Golden Opportunities In 2000 you could not easily carry “1000 songs in your pocket” Leaves Apple in 1985 Returns 22 in 1997 Marketing Studies II  Steve Jobs’ Golden Opportunities In 2006 a phone, a music player and a web navigator were three separate devices Leaves Apple in 1985 Returns 23 in 1997 Marketing Studies II  A Cautionary Tale: The Nokia Case ‘‘More than seven years before Apple rolled out the iPhone [late 1990s], the Nokia team showed a phone with a color touch screen set above a single button. The device was shown locating a restaurant, playing a racing game and ordering lipstick. In the late 1990s, Nokia secretly developed another alluring product: a tablet computer with a wireless connection and touch screen—all features today of the hot-selling Apple iPad.’’ “We had it all!” Frank Nuovo, the former chief designer at Wall Street Journal, July 18th, 2012 Nokia Corp. 24 Marketing Studies II  Nokia were not the only blind ones in 2007... Motorola Q phone Blackberry phone 25 Marketing Studies II  The Nokia Case 26 Marketing Studies II  https://www.youtube.com/watch?v=PL83PinTIkI The Nokia Case 27 Marketing Studies II 28 Marketing Studies II External Factors of SWOT Analysis (PESTEL and Porter’s Five Forces)  Two Components of Military Strategy ▪ Internal (under your control) - Strengths and weaknesses - Your own troops, their formation, their weapons, their training, their tactics ▪ External (outside your control) - Opportunities and threats - The terrain, the weather, the enemy - You cannot change them, but you can adapt to them 30 Marketing Studies II  Sun Tzu (died 496 BCE) The Art of War “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” Knowing both yourself and your enemy leads to confidence and strategic advantage, while lacking 31 either Marketing Studies IIcan lead to mixed results or total failure  Sun Tzu EXTERNAL INTERNAL Opportunities Strengths & Threats & Weaknesses “Know the enemy” “Know yourself” 孙子 32 Marketing Studies II 33 Marketing Studies II  Segmentation x Targeting x Positioning Source: Kotler et al. 2020 34 Marketing Studies II  Segmentation, Targeting, Positioning 35 Marketing Studies II Source: Armstrong, G., Kotler, P., & Da Silva, G. (2006). Marketing: An Introduction: An Asian Perspective. Pearson/Prentice Hall.  Using the ‘Correct’ Segmentation Bases Source: Armstrong, G., Kotler, P., & Da Silva, G. (2006). Marketing: An Introduction: An Asian Perspective. Pearson/Prentice Hall.  https://youtu.be/ktmAaT2hlho?si=GrqoNkURRtf8hf_q Banyan Tree Case  Application of Multi-Stage Segmentation Source: Armstrong, G., Kotler, P., & Da Silva, G. (2006). Marketing: An Introduction: An Asian Perspective. Pearson/Prentice Hall.  Determining Market Segment Attractiveness 39 Marketing Studies II Exercise: Segmentation DISCUSS WITH YOUR NEIGHBOUR: How would you market ORGANIC EGGS? 1. How would you SEGMENT the market? 2. Which POSTIONING would you choose? Marketing Studies II 40  1. How to segment the market? Scientific Research on Egg Segmentation Marketing Studies II 41  Segment 1: Economic oriented It contains the brand, price, ingredient, authentications, nutrition, promotion, safety, effectiveness, the suggestions from the specialists, and if the organic eggs purchase easily. →Customers would notice the prices of the organic eggs → Communication: the greatest organic eggs with cheaper price Source: Huang & Chien (2006) 42 Marketing Studies II Segment 2: Product oriented It contains the weight and size of the organic eggs, package, fashion tendency that the customers notice and would be fit the customers’ identities as they use the products. →Customers choose is the weight, the size, and the package → Communication: eating organic eggs is a fashionable thing to do Source: Huang & Chien (2006) 43 Marketing Studies II  Segment 3: Production-process oriented It contains the ways of producing high quality organic eggs, the benefits of eating organic eggs, and the processes of producing the organic eggs. →Customers choose based on different steps of the production and should be under control → Communication: produced their organic eggs by law and regulations and through specific processes 44 Marketing Studies II 2. Which segment would you target? Core segment is Segment 2 Biggest segment: Most interesting segment: (Product oriented) Economic oriented Production oriented BUT: smallest segment (15% market share) 44% market share 41% market share BUT: most concerned about price (attractive segment?) Marketing Studies II 45 46 Marketing Studies II Positioning Map 47 Marketing Studies II Positioning and the Marketing Mix  Example: Positioning ▪ Positioning Statement for Mountain Dew: - To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine. 49 Marketing Studies II  Positioning ▪ Is this the right perceptual map for Mountain Dew? 50 Marketing Studies II  https://youtu.be/pd0IlE966h4?si=Ek0nnsVE9yjqDdve Re-Positioning ▪ Which effect would this campaign have on Mountain Dew’s positioning? (use the positioning map below) Energy 51 Marketing Studies II Source: http://www.slideshare.net/madhusudanpartani/segmentation-targeting-and-positioning Re-Positioning 52 Marketing Studies II  Positioning ▪ Avoid Negatively Correlated Attributes! - Low-price vs. High quality - Taste vs. Low calories - Nutritious vs. Good tasting - Efficacious vs. Mild - Powerful vs. Safe - Strong vs. Refined - Ubiquitous vs. Exclusive - Varied vs. Simple 53 Marketing Studies II Source: http://www.slideshare.net/madhusudanpartani/segmentation-targeting-and-positioning  often used to boost Possible Value Propositions for Positioning Maps a company’s position above that of their competitor A B C The trap D Source: Kotler et al. 2020 E 54 Marketing Studies II 55 Marketing Studies II  Technologic Forces Economic Forces Product/Brand Cultural Positioning Forces Marketing Mix Segmentation Place/ /Targeting Decisions: Product Distribution PRODUCT Social Promotion Price Forces Competitive Legal/Political Advantage Forces Competitive Forces  Three Levels of a Product Example: Smartphone - Core value: Communication - Actual product: brand, size, colour, features (e.g. camera, processor etc.) and packaging - Augmented product: warranty, customer support, cloud storage, or a software update that adds new features 57 Source: Kotler et al. 2020 Marketing Studies II  Product Life Cycle and Marketing Mix Decisions 58 Marketing Studies II Source: Kotler et al. 2020  Product Life Cycle and Marketing Mix Decisions 59 Marketing Studies II Source: Kotler et al. 2020  Technologic Forces Economic Forces Product/Brand Cultural Marketing Mix Positioning Segmentation Forces Decisions: Product Place/ Distribution /Targeting PRICING Social Promotion Price Forces Competitive Legal/Political Advantage Forces Competitive Forces  Price decisions + -- Source: Kotler et al. 2020 61 Marketing Studies II  Value-based vs Cost-based Pricing Source: Kotler et al. 2020 62 Marketing Studies II  Source: Kotler et al. 2020 Responding to competitor price changes 63 Marketing Studies II  Skimming versus Penetration Strategies Promotion high low high Rapid- Slow-skimming skimming strategy strategy Price Rapid- Slow-penetration low penetration strategy strategy Source: Gauri et Kateora 2014 64 Marketing Studies II  Technologic Forces Economic Forces Product/Brand Cultural Positioning Forces Segmentation Marketing Mix Product Place/ Distribution /Targeting Decisions: PLACE Social Promotion Price Forces Competitive Legal/Political Advantage Forces Competitive Forces  Distribution in Brand PRO ▪ There are NO distribution decisions to be made in Brand PRO ▪ For more information, please refer to « Principles of Marketing » course 66 Marketing Studies II  Technologic Forces Economic Forces Product/Brand Cultural Marketing Mix Positioning Segmentation Forces /Targeting Decisions: Product Place/ Distribution PROMOTION Social Forces Promotion Price Competitive Legal/Political Advantage Forces Competitive Forces  Typical advertising decisions Affordability: Spending what the organization can afford after other expenses. Percentage of Sales: Allocating a percentage of current or projected sales to advertising. Competitive Parity: Matching the advertising spending of competitors. Objective and Task: Defining Source: Kotler et al. 2020 objectives and estimating the costs of achieving them, focusing 68 on what is needed to meet thoseMarketing Studies II objectives.  Promotion tools Promotional Definition Types/Methods Tool Advertising Paid, non-personal communication - Traditional Media: TV, radio, print, outdoor through various - Digital Media: Online ads, social media, email media. Short-term - Coupons: Discounts Sales incentives to - Contests and Sweepstakes: Chance to win prizes Promotion encourage - Samples: Free trials purchases. - Loyalty Programs: Rewards for repeat purchases Building and - Press Releases: Announcements to media Public Relations maintaining a - Event Sponsorships: Supporting events (PR) positive brand - Community Relations: Engaging with local communities image. - Face-to-Face Sales: In-person meetings Direct interaction to Personal Selling - Telemarketing: Selling over the phone persuade customers. - Online Sales Chats: Engaging customers via chat Direct - Email Marketing: Targeted messages via email Direct - Direct Mail: Physical mailings (brochures, catalogs) communication to Marketing - Telemarketing: Direct calls to customers generate a response. 69 Source: Kotler et al. 2020 Marketing Studies II 70 Marketing Studies II  The Marketing Planning Process Phase 1 Preliminary analysis and screening: The Competitive Environment Information derived from each phase, Phase 2 market research Segmentation, Targeting, and evaluation Positioning of programme performance Phase 3 Adapting the marketing mix to target market(s) Phase 4 Implementation and control 71 Marketing Studies II  https://app.wooclap.com/BRANDPROSS ▪ Find the match- How well do you know the main marketing concepts? b)  Part 2b: Strategic Marketing How to implement in BrandPro 73 Marketing Studies II  So what? How do these insights apply to 74 Marketing Studies II  Marketing Objectives In Brand Pro Initial Share Price Index (SPI) = 100 75 Marketing Studies II  The BrandPro World THE BRANDPRO WORLD The BrandPRO world is a fictitious country of 80 million Your inhabitants that roughly behaves like most markets. TEAM Inflation is virtually zero and no major political, social or economic event is anticipated in the near future. THE SONITE MARKET Understanding consumer needs and matching their expectations is key to designing a favorable offering. Exceeding consumer expectations is not always a smart decision. This may in particular result in a lower margin or you may upset your consumers. For instance, a long-lasting battery may be heavy and a large screen may not fit in a Your COMPETITORS purse.  Marketing process overview in Brand PRO 77 Marketing Studies II The Marketing Planning Process OPPORTUNITIES / THREATS Phase 1 Preliminary analysis and screening: Competitive The Competitive Environment Economic Political/legal Phase 2 Level of technology Segmentation, Targeting, Positioning Culture Structures of distribution Geography Phase 3 Adapting the marketing mix Other to target market(s) Phase 4 Implementation and control 78 Marketing Studies II  Copyright by StratX Know yourself - get familiar with your products 79 Marketing Studies II Know your enemy - get familiar with the marketing environment (market, competitors) Your TEAM Your COMPETITORS  app.wooclap.com/BRANDPROSS ▪ Which brands are you going to manage in Brand PRO ? The Marketing Planning Process Phase 1 Preliminary analysis and screening: matching company/country needs Segmentation What are the available markets? Targeting Phase 2 In which market segment can we Segmentation, Targeting, be most effective? Positioning Positioning Considering the competitive Phase 3 environment and our competitive Adapting the marketing mix advantages, what is our to target market(s) differentiation strategy for the targeted segment(s)? Phase 4 Implementation and control 82 Marketing Studies II The Marketing Planning Process Phase 1 Segmentation Preliminary analysis and screening: matching company/country needs Trendy Phase 2 Segmentation, Targeting, Positioning Savvy Phase 3 Adapting the marketing mix to target market(s) Phase 4 Implementation and control Pros 83 Marketing Studies II  Segmentation Which segment to target? Which segment is most attractive? 84 Marketing Studies II