Intro to Marketing - Class Material PDF

INTRODUCTION TO MARKETING BACHELOR OF ARTS IN DESIGN Teacher Valentina Franco Buenaventura [email protected]  HELLO : ) first of all… let s set our objectives and expectations ’  WHAT WILL WE DO?...

INTRODUCTION TO MARKETING BACHELOR OF ARTS IN DESIGN Teacher Valentina Franco Buenaventura [email protected]  HELLO : ) first of all… let s set our objectives and expectations ’  WHAT WILL WE DO? WE ARRIVED Who are we? Why are we here? Which are our expectations? Where have we arrived? What has changed vs. our previous ideas? Key insights that we will implement from now on Private authorship material - Valentina Franco B. Introduction to Marketing  WHAT WILL WE DO? ✓ Master research methodology in the generation of viable projects, ideas and solutions. ✓ Be able to adapt to changes and industrial technological evolution. WE ARRIVED ✓ Communicate ideas and projects to clients, argue reasonably, know how to evaluate proposals and channel dialogue. ✓ Know the economic, social and cultural context in which the design takes place. ✓ Approach, evaluate and develop appropriate learning strategies to achieve personal and professional goals. ✓ Optimize the use of necessary resources to achieve the planned objectives. ✓ Understand the behavior of the elements that intervene in the communicative process, master the technological resources and assess their influence on Where have we arrived? design processes and products. What has changed vs. our previous ideas? ✓ Analyse, evaluate and verify the productive viability of the projects, from criteria of formal innovation, business management and market demands. Key insights that we will implement from now on Private authorship material - Valentina Franco B. Introduction to Marketing  LET S START BY THINKING A LITTLE FURTHER… Private authorship material - Valentina Franco B. Introduction to Marketing ’ SETTING OUR MINDSET “People don’t buy WHAT you do; they buy WHY you do it” https://www.youtube.com/watch?v=qp0HIF3SfI4 Private authorship material - Valentina Franco B. Introduction to Marketing SETTING OUR MINDSET THE PURPOSE What is your cause? What do you believe? Apple: We believe in challenging the status quo and doing this differently. THE PROCESS Specific actions taken to realize the Why. Apple: Our products are beautifully design and easy to use. THE RESULT What do you do? The result of the Why, the proof. Apple: We make computers, mobiles and audiovisual devises. Private authorship material - Valentina Franco B. Introduction to Marketing SETTING OUR MINDSET Private authorship material - Valentina Franco B. Introduction to Marketing THE BASES MARKETING ( IN YOUR OWN WORDS ) Private authorship material - Valentina Franco B. Introduction to Marketing THE BASES MARKETING Philip Kotler “Social and administrative process by which John A. Howard (Columbia) groups and individuals satisfy their needs by It’s the process of: creating and exchanging goods and services” MARKET 1) Identifying consumer needs. Fundamentos de Mktg Stanton, Etzel y Walker 2) Conceptualizing those needs in terms of “Marketing is a total system of business activities the company's capabilities. designed to plan, price, promote, and distribute 3) Communicating this conceptualization to need-satisfying products to target markets in order to achieve organizational objectives.” NEEDS those who have decision-making capacity. 4) Conceptualizing the production obtained in terms of the previously identified American Marketing Association (A.M.A.) needs of the consumer. “Marketing is a way of organizing a set of actions 5) And communicating this and processes when developing a product to conceptualization to the consumer. create, communicate and deliver value to MARKETING customers, and manage relationships where the purpose is to benefit the organization by satisfying customers.” Private authorship material - Valentina Franco B. Introduction to Marketing  * Marketing must answer WHY people buy me vs. the competitors but how to answer that question? Private authorship material - Valentina Franco B. Introduction to Marketing  by building * EQUITY ( = perception ) built through COMMUNICATION and in order to transmit that “why” you need to build YOURSELF first! Private authorship material - Valentina Franco B. Introduction to Marketing THE BASES AND IT HAS TO CO-EXIST IN 2 WORLDS Private authorship material - Valentina Franco B. Introduction to Marketing THE BASES 2 WORLDS REALITY what companies CREATE PERCEPTION what consumers PERCEIVE Private authorship material - Valentina Franco B. Introduction to Marketing THE BASES REALITY what companies CREATE PERCEPTION what consumers PERCEIVE The identity The image Positioning proposal Positioning REALITY EXPECTATIONS Private authorship material - Valentina Franco B. Introduction to Marketing THE BASES REALITY what companies CREATE PERCEPTION what consumers PERCEIVE The identity The image Positioning proposal Positioning REALITY EXPECTATIONS BRAND BRAND IDENTITY IMAGE Private authorship material - Valentina Franco B. Introduction to Marketing THE BASES REALITY PERCEPTION BRAND BRAND IDENTITY IMAGE Who I am? Who I am compared to the competitors? How do I want to be perceived? How am I positioned? Created by the company Created by the consumer Private authorship material - Valentina Franco B. Introduction to Marketing THE BASES REALITY PERCEPTION BRAND BRAND IDENTITY IMAGE * VALUE PROPOSITIONS What am I proposing that makes me different? * PERCEIVED VALUE How consumers see me — We create OBJECTIVE things to be perceived SUBJECTIVELY — Private authorship material - Valentina Franco B. Introduction to Marketing THE BASES BRAND BRAND IDENTITY IMAGE * VALUE PROPOSITIONS * PERCEIVED VALUE the key: balance between what I promise and what I offer Private authorship material - Valentina Franco B. Introduction to Marketing THE BASES balance: CONSISTENCY among product - communication - user experience - activities (launches, offers, promos) Private authorship material - Valentina Franco B. Introduction to Marketing THE BASES balance: CONSISTENCY which builds BRAND NARRATIVE Private authorship material - Valentina Franco B. Introduction to Marketing THE BASES balance: CONSISTENCY which builds in the end generates BRAND NARRATIVE LOYALTY Private authorship material - Valentina Franco B. Introduction to Marketing THE BASES CONSISTENCY + BRAND NARRATIVE + LOYALTY EFFECTIVE MARKETING Private authorship material - Valentina Franco B. Introduction to Marketing  WHO “RULES” IN MARKETING? more than a question, a guideline… Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR the CONSUMER Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR information CONSUMER emotion (“golden circle”) Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR WHAT AFFECTS THE CONSUMER? Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR CONSUMER Variables Variables INTERNAL EXTERNAL Related to the consumer as such Relatd with the context Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR MASLOW s PYRAMID Private authorship material - Valentina Franco B. Introduction to Marketing ’ CONSUMER BEHAVIOR MASLOW s PYRAMID Which stages are affected by INTERNAL variables and which by EXTERNAL? Private authorship material - Valentina Franco B. Introduction to Marketing ’ CONSUMER BEHAVIOR how brands understand WHAT AFFECTS THE CONSUMER and use it to design the accurate communication? Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR Brands must use the knowledge about their consumers to design an ACCURATE communication FIRST NEED brands Functional https://www.youtube.com/watch?v=top22y9rBYw Emotional https://www.youtube.com/watch?v=W__CQTiQTP8 LOW COST brands https://www.youtube.com/watch? time_continue=52&v=4pf2pekhDtg&embeds_referring_euri=https%3A%2F%2Fmasterenmarketingdigitaldq.es% 2F&source_ve_path=Mjg2NjY&feature=emb_logo https://www.youtube.com/watch?v=XtIB3UpdbP0 LUXURY brands Referente https://www.youtube.com/watch?v=sPi0UbYtv9Y Lifestyle https://www.youtube.com/watch?v=s2rD36QwGcQ Concept https://www.youtube.com/watch?v=pIgDRxkuwwg / https://www.youtube.com/watch?v=TU-a3ntzSAA ESPECIALIZED brands https://www.youtube.com/watch?v=WYP9AGtLvRg&t=3s https://vimeo.com/786595441 Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR What happens when marketing is CONSISTENT with brand essence + empathizes with consumers? NIKE - “Find your greatness” ✓ During the 2012 Olympics it was the most viewed campaign online, the most mentioned on Twitter, and the most talked about on social media at large. ✓ Resulted in 55% community growth, with over three million new members joining in just 9 weeks. ✓ Nike encouraged everyday people to find their greatness and share it through the Nike+ app. ✓ It’s a masterclass on how highlighting the ordinary can make a brand stand out in extraordinary ways Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR What happens when marketing is CONSISTENT with brand essence + empathizes with consumers? NEW BALANCE – “Runlock” ✓ A problem: Cold for runners >> how to maintain them active during cold months? ✓ A solution: Combine motivation and incentives, aiming to inspire individuals to embrace running during the colder months, and also to reward their participation with tangible benefits. ✓ “Don’t just talk at your audience, involve them” It created an immersive experience that invited runners to engage, participate, be rewarded, and, reinforce their positive associations with the brand. Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR WHAT AFFECTS THE CONSUMER? Let s review the INTERNAL & EXTERNAL variables in detail Private authorship material - Valentina Franco B. Introduction to Marketing ’ CONSUMER BEHAVIOR Variables INTERNAL Motivations and needs Biological needs (physiological) = basic or biological needs (ex. Primark, Kiabi) Psychological needs (motivation) = taste, style, design, price (ex. low cost: Zara, Pull&Bear) Emotional needs = luxury, feeling good, status (Gucci, Hermes) Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR Variables INTERNAL Motivations and needs Biological needs (physiological) = basic or biological needs (ex. Primark, Kiabi) Psychological needs (motivation) = taste, style, design, price (ex. low cost: Zara, Pull&Bear) Emotional needs = luxury, feeling good, status (Gucci, Hermes) Perceptions It is the personal and subjective instrument through which each individual processes external information and interprets it. Determined by selective factors. Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR Variables INTERNAL Motivations and needs Biological needs (physiological) = basic or biological needs (ex. Primark, Kiabi) Psychological needs (motivation) = taste, style, design, price (ex. low cost: Zara, Pull&Bear) Emotional needs = luxury, feeling good, status (Gucci, Hermes) Perceptions It is the personal and subjective instrument through which each individual processes external information and interprets it. Determined by selective factors. Experience or learning Continuous process that is carried out through interaction >> own or external experience Allows to: - Evoke emotions - smell, music, sensations. - Generate symbolic recall / learning - distinctive symbols that allow the consumer to identify with the brand. - Aspirational reference - references with personalities. Determines LOYALTY by creating experiences that make consumers feel unique, exclusive, and identified with the brand. Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR Variables INTERNAL Personal characteristics Directly associated with fashion as it is a vehicle for expressing thoughts, feelings, mood and personality. Personality = set of individual traits that characterize an individual and are the driving force behind his or her actions. ✴ Demographic variables: Age / gender / family situation / geographical location ✴ Socioeconomic variables: Income level / profession / educational level / heritage ✴ Psychographic variables: Personality / Lifestyle Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR Variables INTERNAL Personal characteristics Directly associated with fashion as it is a vehicle for expressing thoughts, feelings, mood and personality. Personality = set of individual traits that characterize an individual and are the driving force behind his or her actions. Attitude Is the predisposition that has been acquired over time through learning. It allows the consumer to position themselves and express a favorable or unfavorable opinion regarding a brand or product. Components: - Cognitive: knowledge, beliefs. - Affective: subjective assessment. - Active: consumer tendency to act Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR Variables EXTERNAL Culture and subculture Set of beliefs, customs and social norms that an individual acquires throughout his life, and determine common patterns of behavior within the same society. ✴ Nationality groups: Determines the communication and promotion of a brand for each type of public Different ethnic tastes and according to specific values or characteristics. preferences. ✴ Religion groups: Share cultural beliefs, ethics, and taboos. ✴ Racial groups: Different cultural characteristics creating different attitudes. ✴ Geographic groups: Geographic areas determine differentiated subcultures with characteristic lifestyles. Private authorship material - Valentina Franco B. Introduction to Marketing ​​ CONSUMER BEHAVIOR Variables EXTERNAL Culture and subculture Set of beliefs, customs and social norms that an individual acquires throughout his life, and determine common patterns of behavior within the same society. Determines the communication and promotion of a brand for each type of public according to specific values or characteristics. Social class Position that we occupy in society according to socioeconomic factors (income, education, work, etc.) Formed by those individuals with whom the consumer identifies: * Primary group: with whom there is a frequent relationship. * Secondary group: with whom you maintain a more sporadic relationship. Private authorship material - Valentina Franco B. Introduction to Marketing ​​ CONSUMER BEHAVIOR Variables EXTERNAL Reference groups Groups that one aspires to be part of. Opportunity for brands to play with the aspirations of their target audience. Common objectives and needs. The degree of influence that the group exerts on a person determines their behavior as a consumer. ✴ Coexistence groups ✴ Aspiration groups ✴ Reference groups Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR Variables EXTERNAL Reference groups ✴ Coexistence groups: - The individual is immersed as a result of their daily relationships. - The structure of these groups depends on the place of residence, age, occupation, social class... - They have a great in uence on consumer behavior. - Ex: friends, colleagues, work, neighbors, family, etc. Private authorship material - Valentina Franco B. Introduction to Marketing fl CONSUMER BEHAVIOR Variables EXTERNAL Reference groups ✴ Aspirational groups: - With which the individual identi es himself and that exert in uence on his behavior, independently or not member of them. - Represent a model that the person tries to reach and surpass, if possible. Private authorship material - Valentina Franco B. Introduction to Marketing fl fi CONSUMER BEHAVIOR Variables EXTERNAL Reference groups ✴ Reference groups: - The one from which approval and acceptance is desired - Behaviors tend to be imitated. - In some cases the consumer may be in uenced by a group that he dislikes (actions are rejectable so the person adopts opposite attitudes) Private authorship material - Valentina Franco B. Introduction to Marketing fl CONSUMER BEHAVIOR how brands understand WHAT AFFECTS THE CONSUMER let's see it in practice… (class exercise) Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR Private authorship material - Valentina Franco B. Introduction to Marketing  Why should we focus on THE AUDIENCE THAT BELIEVES in our value promise? (and understand it) Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR LAW OF DIFFUSION OF INNOVATION It describes how new ideas, behaviors, technologies, etc. gradually spread through a population. Everett Rogers and Geoffrey Moore Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR Where the focus SHOULD be! Everett Rogers and Geoffrey Moore Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR CUSTOMER CENTRIC Respond to what CONSUMER seeks, desires, yearns for, needs. Tell him what he wants to hear, what he identifies with. Everett Rogers and Geoffrey Moore Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR The consumer determines the perspective from which we should approach the strategies Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR the theory behind WHAT AFFECTS THE CONSUMER Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR CONSUMER BEHAVIOR theories a) ECONOMIC-RATIONAL Consumption and price are directly related. - Part of Marshall's economic theory. - The rational factor predominates functional products at a low price. - Mainly for low cost consumers - Option for luxury brand participation: outlets / sister brands KEY: Find an optimal point between price and quality that allows the consumer to find the product useful. MARSHALL s theory - Principles of Economics (1890) The price and output of a good are determined by supply and demand. Private authorship material - Valentina Franco B. Introduction to Marketing ’ CONSUMER BEHAVIOR CONSUMER BEHAVIOR theories b) PSYCHOANALYTIC Consumer behavior is driven by internal forces (contradictory to each other) - Based on Freud's psychoanalytic theory (contrary to Marshall). - Emotional factor predominates  Price is NOT determinant. KEY: Stimulate the consumer through sexual attraction, admiration and/or desire. FREUD s theory (1923) Human behavior is influenced by unconscious memories, thoughts, and urges. Private authorship material - Valentina Franco B. Introduction to Marketing ’ CONSUMER BEHAVIOR CONSUMER BEHAVIOR theories c) EXPERIENCE Experiences previously lived will influence consumption decision making. - Based on Iván Pávlov's learning behavioral theory - Combine the emotional factor with the rationality of previous experience  verification - All contacts that the consumer have with the brand (store, online, influencers, etc) intervene - Related to consumer satisfaction  relative to the person and need. KEY: Seek coherence and consistency in all manifestations of the brand to generate fidelity. Private authorship material - Valentina Franco B. Introduction to Marketing CONSUMER BEHAVIOR CONSUMER BEHAVIOR theories d) SOCIAL Consumer behavior is explained based on your willingness to integrate into a certain social group, or resemble the people who integrate it, in order to distinguish themselves from the rest  status or differentiation. - Based on the ideas of the Veblen sociological school. - The emotional factor predominates. KEY: Play with the aspirational and reference. Private authorship material - Valentina Franco B. Introduction to Marketing PURCHASING PROCESS HOW DOES THE CONSUMER BUY? Private authorship material - Valentina Franco B. Introduction to Marketing PURCHASING PROCESS CONSUMER JOURNEY the different stages we go through while buying a product Private authorship material - Valentina Franco B. Introduction to Marketing PURCHASING PROCESS These stages will determine the actions and procedures of both: the consumers and the brand SALES FUNNEL & how prospects move through the sales process SALES PIPELINE how companies act to approach those prospects Private authorship material - Valentina Franco B. Introduction to Marketing PURCHASING PROCESS SALES FUNNEL& SALES PIPELINE Give us an x-ray about the business’ health by showing: at which stage of the sales funnel the customers are what deals are getting held up which activities are contributing the most to revenue Private authorship material - Valentina Franco B. Introduction to Marketing PURCHASING PROCESS SALES FUNNEL & SALES PIPELINE about the buyer about the company Private authorship material - Valentina Franco B. Introduction to Marketing PURCHASING PROCESS SALES FUNNEL CONSUMER JOURNEY the Prospect s journey to becoming a customer from discovering the business to making a purchase awareness consideration purchase retention & advocacy Private authorship material - Valentina Franco B. Introduction to Marketing ’ PURCHASING PROCESS SALES PIPELINE The Business journey internal processes and efforts to generate leads and closing a sale The visual representation of the sales process (steps that should be taken before closing a deal) Contains information about: - the total number of deals - the name of potential buyer - the value of each deal - where each deal is in the sales process Private authorship material - Valentina Franco B. Introduction to Marketing PURCHASING PROCESS SALES FUNNEL AWARENESS Where customer recognizes his need, identifies it, makes it conscious and begins to open his field of attention to the brands that can meet this need. In this phase, brands have to be noticed by potential customers and show all those attributes with which they can satisfy a need. * The key: generating contact with potencial buyers. Private authorship material - Valentina Franco B. Introduction to Marketing PURCHASING PROCESS SALES FUNNEL INTEREST The customer begins to get informed and research which is the best choice or brand that can meet that need. Brands must ensure providing the necessary information about their product to the customer, and why it’s what they are looking for. * The key: being transparent and verifiable. Private authorship material - Valentina Franco B. Introduction to Marketing PURCHASING PROCESS SALES FUNNEL INTENT & EVALUATION The customer begins to compare options to find out which one can best meet their need. The brand must reinforce both the information given about the product and its notoriety so that the customer can consider it. (ex. reviews, deal offers) * The key: The added value of the product must shine!! Private authorship material - Valentina Franco B. Introduction to Marketing PURCHASING PROCESS SALES FUNNEL PURCHASE The consumer buys and justi es his decision. The brand has to facilitate the purchase and use of the product/service to reinforce the decision made by the consumer. Private authorship material - Valentina Franco B. Introduction to Marketing fi PURCHASING PROCESS SALES FUNNEL LOYALTY The consumer is loyal and repeats the purchase of the same brand. The brand has to get the consumer to become a recommender >> making them feel that they haven’t been forgotten after their purchase and, on the contrary, they are engaged with new offers or invitations to rate the product. Private authorship material - Valentina Franco B. Introduction to Marketing PURCHASING PROCESS connecting SALES FUNNEL & SALES PIPELINE about the buyer about the company Private authorship material - Valentina Franco B. Introduction to Marketing PURCHASING PROCESS connecting SALES FUNNEL & SALES PIPELINE buyer company Lead generation: Attract and engage prospects through campaigns to capture contact information. Lead nurturing: Qualifying new leads and sending the best marketing-quali ed leads (MQLs) to the sales team for follow-up. Sales accepted lead (SAL): Sales teams choose from the leads and pursue them (only 27% of B2B leads are sales-ready *HubSpot). Sales quali ed lead (SQL): SQLs represent a quanti able business opportunity >> have a clear need, timeline, budget and are ready to purchase. Closed deal: The sale is made. (only 6% of opportunities are closed sales *HubSpot) Post-sale: Retaining customers cost less than acquiring new ones. Private authorship material - Valentina Franco B. Introduction to Marketing fi fi fi PURCHASING PROCESS That s why there are speci c strategies for each stage Private authorship material - Valentina Franco B. Introduction to Marketing ’ fi PURCHASING PROCESS ) SALES PIPELINE responsibility of the company ) That s why there are speci c strategies for each stage Private authorship material - Valentina Franco B. Introduction to Marketing ’ fi PURCHASING PROCESS Private authorship material - Valentina Franco B. Introduction to Marketing PURCHASING PROCESS HOW BRANDS APPROACH THE CONSUMER AT EACH STAGE (class exercise) ? Private authorship material - Valentina Franco B. Introduction to Marketing COURSE EXCERCISE #1 GLOSSARY (course exercise) Private authorship material - Valentina Franco B. Introduction to Marketing COURSE EXCERCISE #1 https://docs.google.com/spreadsheets/d/ 1om2DU6Ws8fpI7VSoWs9GLmFdW7I-9 j03gHyq3vh6DoE/edit? gid=710281469#gid=710281469 Private authorship material - Valentina Franco B. Introduction to Marketing COURSE EXCERCISE #1 EXAMPLE (good work) Private authorship material - Valentina Franco B. Introduction to Marketing COURSE EXCERCISE #1 EXAMPLE (good work) Private authorship material - Valentina Franco B. Introduction to Marketing COURSE EXCERCISE #1 EXAMPLE (mid work) Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION Since we don t value the same things, we don't buy in the same way, and we are not at the same point in the purchasing process… SEGMENTATION plays a key role in determining how a brand should approach its customers Private authorship material - Valentina Franco B. Introduction to Marketing ’ SEGMENTATION because…. The way we talk depends on WHO are we talking to Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION SEGMENTATION Identifying your target audience and being able to "divide it” according to certain common characteristics Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION SEGMENTATION Can be done from different approaches (considering different variables): ! 1. Geographic 4. Behavioral 2. Demographic - Customer Status The TYPE will depend on the 3. Psychographic - Purchasing habits brand's focus, objectives and target. - Global benefit - Consumer level / Interactions - Loyalty & feedback The objective: Identify the different consumer profiles, to assertively direct marketing strategies and obtain the best (and greatest) possible result. The benefits: ✓ Understand the different segments that create the market as a whole. ✓ To evaluate the degree to which each segment is satis ed with the current existing offer. ✓ To detect the opportunities and possibilities of the brand in each one of them. ✓... and thus be able to de ne the TARGET Recommendation: The clearest way to guide segmentation is determining the BUYER PERSONA to focus action plans on THAT consumer profile that you satisfy most literally. Private authorship material - Valentina Franco B. Introduction to Marketing fi fi SEGMENTATION GEOGRAPHIC Climate Culture SEGMENTATION based on general variables Language Population density (urban/rural) DEMOGRAPHIC Age, gender Income Level of education Religion Profession / role in a company PSYCHOGRAPHIC Personality Hobbies Social status Opinions Life goals BEHAVIORAL Values and beliefs Lifestyle Customer status Purchasing habits Global benefit Consumer level - Interactions Loyalty & feedback Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION SEGMENTATION based on behavioral variables Customer Status Potential customer / Non customer Beginners customer Regular customer Ex-customer Global Bene t (bene t sought) Functional: performance, quality, ef ciency Emotional: happiness, status, sense of achievement Social: recognition, acceptance Consumer level (interactions) Loyalty level Heavy users Never Medium users Medium Light users High Level of innovation adoption BEHAVIORAL within the purchase process Private authorship material - Valentina Franco B. Introduction to Marketing fi fi fi SEGMENTATION Introducing… THE TARGET & BUYER PERSONA Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION TARGET Abstract concept that groups a GENERIC AUDIENCE based on common aspects such as sex, age, purchasing power… which makes them suitable to consume your product or service. * Within the same target audience we can find different buyer personas >> by defining them well we can create more effective specific campaigns, vs. using a single target audience where we treat them all as the same segment. Watch out! By focusing on a single segment of the public, we can forget about other equally profitable segments. Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION BUYER PERSONA Consumer archetype that brings together the ideal characteristics for a specific product or service Semi-fictional representation of a business's ideal customer. Defined using specific sociodemographic data and information about their personal and professional behavior, and their relationship with the brand. * It is possible to have more than one buyer persona but it is important to focus actions on impacting one of them >> the one with the highest volume, the one that is most profitable... Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION BUYER PERSONA Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION BUYER Buyer persona DECISION-MAKER The person who can make the final decision to purchase. The most frequent case, especially in B2C. PERSONA Buyer persona PRESCRIBER The person who recommends the product. Influence on the purchase decision, although is not the one who makes the final decision, nor the one who will use or consume the product. Ex: The doctor prescribes deciding which medicine to take. But the patients are in charge of buying ! the medicine and using it. When designing the buyer persona, you should take into account not only WHO BUYS Buyer persona INFLUENCER the products/services, but also who influences The person who can positively or negatively influence the purchase decision. the decision-making, or which profiles you are not interested in reaching. It’s important to know who the influencers of our buyer persona are, in order to decide accurate collaborations / partnerships. NEGATIVE buyer persona People who interact with your marketing campaigns, are interested in your content, or follow your communication channels, BUT WILL NOT become customers. * Knowing which profiles NOT to reach helps to avoid waisting resources, work, time and budget. Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION BUYER Buyer Persona template: link PERSONA The Persona Canvas template: link Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION SEGMENTATION by target buyer persona Private authorship material - Valentina Franco B. Introduction to Marketing STRATEGIES BASED ON SEGMENTATION THE STRATEGIES based on SEGMENTATION Private authorship material - Valentina Franco B. Introduction to Marketing STRATEGIES BASED ON SEGMENTATION TYPES OF STRATEGIES UNDIFFERENTIATED To reach all segments with the SAME marketing actions. DIFFERENTIATED To reach all segments with DIFFERENT marketing actions. CONCENTRATED We select a SEGMENT or a few certain segments. NICHE We select a SMALL SEGMENT for its specialized but high pro tability character. Private authorship material - Valentina Franco B. Introduction to Marketing fi STRATEGIES BASED ON SEGMENTATION Benefits & Risks UNDIFFERENTIATED + Same treatment to the market segments: Common characteristics (average consumer) - Standardized marketing (same arguments, price and point of sale, mass intermediaries). NOT an advisable strategy in current markets. Limited orientation to the market. DIFFERENTIATED + Targeting with products-services and mix actions: Adapt more to the needs and desires of the consumer. Get more total sales. - Greater participation in the different segments. It implies higher costs (communication, intermediation, research) CONCENTRATED + Center the performance of the company in a certain sector and segments: Good knowledge of the consumers High participation in it - Purchase fidelity Increases the risk of the company. Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION ( THE GENERATIONS ) Understanding the consumer profiles according to their age Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION … BABY BOOMERS GENERATION X MILLENIALS CENTENNIALS / ZOOMERS GENERATION ALPHA 1946-64 1965-80 1981-95 1966 - 2013 Early 2010-2020 Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION BABY BOOMERS 1946-64 Marketing strategies for Baby Boomers must consider ✓ Keep it simple. ✓ Focus on functional benefits of the product. ✓ Make them feel safe and valued >> use first names in subject lines and salutations (email). ✓ Talk about price. ✓ Authenticity matters. ✓ Visual content mixing technology/digital + traditional media. ✓ Build trust and credibility >> look after long-lasting and trusting relationship. Arrived after World War II within a population explosion. Had to adapt to new technologies >> considered digital immigrants. Imbued with the culture of effort and sacrifice. They have great experience, are loyal and hard workers. Conservative tendency >> not impulsive. Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION The brand used the Gecko to tell their story reaching aprox. 2 million followers and 140 million views on YouTube. Geico developed a 15-minute mock documentary about his origin story, to debute during the Super Bowl to wild success. Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION Toyota has a long history of marketing to Baby Boomers >> since “Keep on Rolling” rst aired in 2011. Speaks to the aspirations of older consumers and reinforces desires. Boomers aren’t portrayed as old, stagnant or technologically inept. Toyota invest in features that will bene t older adults as they age. In 2020, the brand broke ground on “Woven City,” to test new mobility technology, like robots, wheelchairs, autonomous vehicles and scooters, among the city’s population. Private authorship material - Valentina Franco B. Introduction to Marketing fi fi SEGMENTATION GENERATION X 1965-80 Marketing strategies for Generation X must consider ✓ Talk about nostalgia, appeal to security and stay authentic. ✓ Look for making life easier >> great customer service. ✓ They seek to consume more >> create a loyalty program. ✓ Informe about details. ✓ Play with digital media. ✓ Offer discounts. The "X" represents a hidden generation, numerically inferior to the previous one and raised in the shadow of the boomers Sensibles to personal content, authenticity and nostalgia. Capitalism and consumerism >> they are ambitious. Grew up in the golden age of coupons (discount offers in newspapers and magazines) so they expect one as rst-time buyers. Cannot be considered digital natives either, but are friendly with digital media. Take the time to sift through reviews before making a purchase, and read management responses to reviews. Private authorship material - Valentina Franco B. Introduction to Marketing fi SEGMENTATION Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION MILLENIALS - Generation Y 1981-95 Marketing strategies for Generation Y must consider ✓ They are fully functional >> informe them. ✓ Digital marketing optimizing mobile. ✓ Seek for balance between family, friends and personal life. ✓ Focus on brand added values and true identity (genuine). ✓ Loyalty programs - engagement. ✓ Prioritize experiences >> customer centric. ✓ Time is vital and they feel that they must make the most of it. ✓ Social media presence. Undoubtedly the most popular. Digital natives and the rst generation that is truly global. Globalization and Internet connection allow them to share the same values in all countries. HOWEVER: they doesn’t want to be marketed to. They want to feel a human connection and make sure their voice and opinions are heard. Lived through 2008 crisis which made them tolerant to frustration, self-con dence and committed. Not afraid of changing jobs >> quick to adapt to new things. They are entrepreneurs and big consumers. A very different vision “family”. Having children is not a priority for them. Private authorship material - Valentina Franco B. Introduction to Marketing fi fi ​​  SEGMENTATION Lay’s “Do Us a Flavor” campaign Fans can submit their own avors and recipes in hopes to win a million-dollar prize and see their avor stocked on store shelves. Private authorship material - Valentina Franco B. Introduction to Marketing fl fl SEGMENTATION Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION CENTENNIALS / GENERATION Z / ZOOMERS 1996 - 2013 Marketing strategies for Generation Z must consider ✓ Focus on digital and social media. ✓ Generate flexible content >> responsive to different platforms. ✓ Look for engagement >> loyalty programs. ✓ Balance between professional and personal life. They are new entrants to the labour market. Characterized by living immersed in the Internet society >> consume only digital formats (study and read online, are self-taught - YouTube tutorials) They are at the forefront of social networks. Very creative, exible and multitask. Prefer remote work and have a great innovative and pragmatic spirit. Not so easy to retain in terms of marketing. Private authorship material - Valentina Franco B. Introduction to Marketing fl SEGMENTATION Private authorship material - Valentina Franco B. Introduction to Marketing SEGMENTATION GENERATION ALPHA Early 2010-2020 Marketing strategies for Generation Alpha must consider ✓ Digital technology & language (written over verbal). ✓ Multicultural strategies. ✓ Consciousness rst. ✓ Consider safety and reliability. Digitally Native: digital technology, mobile devices, and social media are integral part of everyday life. Adept at emojis, memes, and digital language, and often prefer written communication over verbal. Diversity and Multiculturalism: one of the most diverse generations in terms of ethnicity, race, and cultural background. Online Education: online and distance learning (COVID-19). Familiar with digital learning platforms and adapted to online environments. Environmental Awareness: more likely to adopt sustainable habits and support environmental causes. Individualism and Authenticity: look for brands and gures that are genuine and stand up for important causes. Parental In uence: since they are very young, parents play a major role in their lives and in shaping their values and attitudes. Online Safety and Flexibility: a major concern. They are exible and adaptable to new technologies and circumstances. Private authorship material - Valentina Franco B. Introduction to Marketing fl fi fi fl ​​ SEGMENTATION Private authorship material - Valentina Franco B. Introduction to Marketing INVESTIGATION & RESEARCH MARKETING INVESTIGATION Private authorship material - Valentina Franco B. Introduction to Marketing INVESTIGATION & RESEARCH HOW DOES A BRAND GETS INFORMATION ABOUT THE MARKET ? Private authorship material - Valentina Franco B. Introduction to Marketing INVESTIGATION & RESEARCH HOW DOES A BRAND GETS INFORMATION Research providers ABOUT THE MARKET ? Intelligence companies Trend reporters Consultancy rms Own resources (Ex: Google Analytics) Private authorship material - Valentina Franco B. Introduction to Marketing fi INVESTIGATION & RESEARCH HOW TO START THE RESEARCH? What to research about? What do we need to know? There must be a research PLAN Private authorship material - Valentina Franco B. Introduction to Marketing INVESTIGATION & RESEARCH RESEARCH TECHNIQUES CONSULTING OBSERVATIONAL EXPERIMENTATION direct communication Quantitative Qualitative Qualitative Qualitative Surveys Focus Group Bus Interview Panel Private authorship material - Valentina Franco B. Introduction to Marketing  INVESTIGATION & RESEARCH RESEARCH TECHNIQUES CONSULTING Quantitative Personal survey Remote survey Telephone survey Collection of face-to-face information Questionnaire that arrives by Collection of information through through the response to a questionnaire email/sites/equipment questionnaire by telephone/computer support + The information obtained by direct contact. Allows to obtain a high number of answers + Less cost than the personal survey. Reach more people scattered in + It allows reaching people who would not otherwise arrive. and to deepen aspects that are not clear. geographical areas. - Very high cost. Depends on the willingness to collaborate. - Low level of response. Might need an additional cost as an incentive. - It demands brevity. Dif cult to overcome distrust and Hard to control who lls out the questionnaire. control the validity of the interlocutor. Private authorship material - Valentina Franco B. Introduction to Marketing fi fi INVESTIGATION & RESEARCH RESEARCH TECHNIQUES CONSULTING Quantitative Omnibus Panel Questionnaire used simultaneously by several Fixed questionnaire on a companies/brands over a broad sample. constant sample over time. + Share costs >> each company pays each questions. + Periodic exploitation, always close to the time to market. Statistical validity of comparative data between periods of time. - Only close and simple questions. - It is only effective if there is a market research plan in the company. Private authorship material - Valentina Franco B. Introduction to Marketing INVESTIGATION & RESEARCH RESEARCH TECHNIQUES CONSULTING Qualitative Focus Groups Interview Semi-structured research script that allows Semi-structured research script that + Ittheallows knowing the real motivations and quality of the opinions expressed. group attendees (8/10 pax) to express their allows a person to express their opinion spontaneously led by a moderator (usually a psychologist). opinion spontaneously led by a moderator (usually a psychologist). - It can’t be quanti ed without doing a survey. * suitable for complex pro les. Private authorship material - Valentina Franco B. Introduction to Marketing fi fi INVESTIGATION & RESEARCH RESEARCH TECHNIQUES OBSERVATIONAL EXPERIMENTAL Qualitative Qualitative There is no direct interaction with the user. Based on assumptions made following the behavior Observation is carried in: of the users in certain points of the sales funnel Ex: AB Testing. Points of sale Information Service provision points Purchase Public traf c points Use/Consumption Other: entrances, exits, factories, etc. Private authorship material - Valentina Franco B. Introduction to Marketing fi THE BRAND definition THE BRAND Private authorship material - Valentina Franco B. Introduction to Marketing THE BRAND definition BRAND A brand is the promise of a ful lled experience is more than a logo, slogan, image… is the TOTAL set of elements that make up their promise Private authorship material - Valentina Franco B. Introduction to Marketing fi THE BRAND definition BRAND WHY TO DEVELOP ONE? THE BRAND BRAND BRAND MISSION & VISION of the company PERCEPTION EXPANSION general objectives of the brand How the consumer associates Related to what it projects (its vision). Mission = the purpose, everyday path the brand and the product with intangible bene ts. Growth, diversi cation, new audiences. Vision = how to move forward, the culture Image, reputation, emotions. Line extension: Introducing new versions of an + Brand Values, Pillars, Promise… existing product (different avors). Category extension: Launching products in entirely new categories but leveraging brand recognition. Geographic expansion: Entering international markets or regions where you are not already present. Private authorship material - Valentina Franco B.