Marketing Management Reconsidered - KEDGE Bordeaux - Session #4 - Positioning PDF

MARKETING MANAGEMENT RECONSIDERED SESSION 4 POSITIONING HOW TO DESIGN AN INCLUSIVE AND SUSTAINABLE POSITIONING? YANNICK LE GENISSEL SESSIONS AND GROUP PROJECTS PROGRESS ACCORDING TO THE LOGIC OF THE MARKETING STRATEGY Session Date C...

MARKETING MANAGEMENT RECONSIDERED SESSION 4 POSITIONING HOW TO DESIGN AN INCLUSIVE AND SUSTAINABLE POSITIONING? YANNICK LE GENISSEL SESSIONS AND GROUP PROJECTS PROGRESS ACCORDING TO THE LOGIC OF THE MARKETING STRATEGY Session Date Course theme Workshop theme S1 Thursday, October 3 Introduction to marketing management in a constrained world Project definition & context analysis S2 Tuesday, October 15 Brand management: How to manage a brand sustainably? Brand image/identity analysis & context analysis Segmentation & Targeting: How to implement an inclusive and S3 Thursday, October 17 sustainable segmentation and targeting strategy? Building segmentation & assessing the segments Positioning: How to design an inclusive and sustainable S4 Friday, October 18 positioning? Setting up targeting and positioning Intermediary report submission (Oct 20) - WIP meetings (Oct 22) S5 Tuesday, October 22 Mix Product: designing a sustainable offer Implementing the positioning in the product mix S6 Wednesday, October 23 Mix Price: implementing a responsible pricing strategy Implementing the positioning in the pricing mix Mix Distribution: designing an inclusive and sustainable S7 November 4 or 7 distribution strategy Implementing the positioning in the distribution mix Mix Communication: implementing a responsible communication S8 November 7 or 8 strategy Implementing the positioning in the communication mix S9 End of Nov / Beg; of Dec Final individual exam (quiz) Finalizing the group project and preparing for presentations S10 Thursday, December 12 Final presentations of group projects MARKETING MANAGEMENT RECONSIDERED | S1: Introduction to marketing management in a constrained world 2 S 4.1. WHAT IS POSITIONING? S 4.2. DEFINING THE COMPETITIVE UNIVERSE S 4.3. CHOOSING DIFFERENTIATION AXES S 4.4. STATING AN EFFECTIVE POSITIONING MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 3 WHAT IS POSITIONING? MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 4  POSITINING DEFINITION Positioning is the strategic choice of the key elements of a value proposition, which enables a product or service to stand out as credible, attractive and different in its market and in the minds of its customers. Source: De Baynast, A., Lendrevie, J., & Lévy, J. (2021). Mercator 13th ed. Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 5  POSITIONING DEFINITION Brand/product Brand/product Brand policy ≠ image ≠ positioning Brand policy is concerned The image of a product or Positioning is the choice of a with developing brand brand is all the knowledge, simplified, comparative and communication in all its beliefs and evocations that a distinctive representation of complexity, depth and defined public associates with the offer. richness. an offering. This policy aims to influence While it must be consistent It can be abundant, vague, and control the image that with positioning, it is richer contradictory, positive or targeted audiences form of and broader. negative. the offering. MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 6 WHY POSITION YOUR OFFERING? MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 7  WHY POSITION YOUR OFFERING? 1 2 3 4 To prevent the customer from Positioning plays an important Positioning is the keystone of Positioning is a guarantee of doing it for you... or not doing role in customers' purchasing the marketing mix and the continuity, as a lever for it at all! decisions. condition for its coherence. action but also as a constraint. Otherwise, there's a risk that Purchasing decisions are The choice of positioning must Positioning is a lasting the customer will switch to mainly based on pre- be made before the marketing element, allowing the mix to another offer, or get the wrong referencing in the consumer's mix is worked on, and must evolve while guaranteeing impression of the offer, which mind, based on the positioning guide the latter to ensure consistency. It is also a is not consistent with the mix. of familiar offers synergies. constraint when the market context changes and the offer needs to be repositioned. MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 8 WHAT ARE THE PILLARS OF POSITIONING? MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 9  POSITIONING'S GOLDEN TRIANGLE ATTRACTIVENESS  Difficult to imitate on a short-term & long-term perspective DIFFERENCIATION CREDIBILITY  Long-lasting MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 10 POSITIONING PROCESS MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 11  POSITIONING PROCESS 1. Define the competitive universe, to be used as a reference 2. Identify possible competitors in this reference universe, and select the 3 closest potential competitors or groups of competitors 3. Assess the competitors' points of differentiation and similarities 4. Select a position 5. State this position Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 12 S 4.1. WHAT IS POSITIONING? S 4.2. DEFINING THE COMPETITIVE UNIVERSE S 4.3. CHOOSING DIFFERENTIATION AXES S 4.4. STATING AN EFFECTIVE POSITIONING MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 13 HOW TO CHOOSE YOUR REFERENCE UNIVERSE? MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 14  WHAT IS A COMPETITIVE UNIVERSE? These are the products to which we will naturally compare the offer. Usually, this is a product category. But it’s also important to think in terms of use (market versus product approach). MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 15  IMPORTANCE OF REFERENCE UNIVERSE When Apple launched its first wearable object, there were a number of possible positioning options: fitness, health, connected device for...etc. The company finally chose, to everyone's surprise, the least surprising and most traditional product category: the watch. The Apple Watch clearly refers to this universe in its name and appearance. But it's very different from other watches: it's a smart watch. By referring to a traditional category, Apple has inserted itself into an established market and uses, while at the same time bringing strong innovations. The product has revolutionized the world of luxury watches to which it belongs, thanks to its price. MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 16 IMPORTANCE OF REFERENCE UNIVERSE Minute Maid offers fruit juices like Tropicana, Pampryl or Joker. Yet the brand has chosen another competitive universe by positioning itself on the occasion of consumption out of home, with the can format. The reference universe here becomes soft drinks MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 17 HOW TO CHOOSE THE COMPETITORS TO ANALYZE? MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 18  COMPETITION ANALYSIS 1. Think usage rather than product. 2. Proceed to a product segmentation of the market(s) under consideration. To do this, identify the market's product segmentation criteria (expected benefits? socio-demographic criteria?). 3. Identify competitors who are leaders in their market(s) and those who are close to the positioning you are considering (2-4 competitors). 4. Analyze in detail the characteristics of these Product segmentation of the French bottled water market competitors' offer mix to identify their (DDB in De Baynast et al. (2021)) positioning. MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 19 S 4.1. WHAT IS POSITIONING? S 4.2. DEFINING THE COMPETITIVE UNIVERSE S 4.3. CHOOSING DIFFERENTIATION AXES S 4.4. STATING AN EFFECTIVE POSITIONING MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 20 POINTS OF DIFFERENCE VERSUS POINTS OF SIMILARITY MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 21  POINTS OF SIMILARITY The similarity points are the mental associations of the brand that it shares with other actors in its competitive universe. Similarity related to the product category = What is expected in this category (e.g., a travel agency is expected to propose hotel and train booking) Correlational similarities = negative or positive correlation to other attributes (e.g., low cost positioning often implies low quality service) MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 22  POINTS OF DIFFERENCE Apple's points difference Design Ease of use Impertinent attitude A point of difference must be : strongly associated with the brand positively judged by consumers Nike’s points difference not be found at the same level with a Performance competitor Technological innovation Taste of victory 3 criteria for quality: Nintendo’s points difference Relevant for customers a constantly renewed Achievable by the company gaming experience Fun Differentiating against competitors Technology MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 23 MAKING SURE THOSE POINTS OF DIFFERENCE ARE VALUE DRIVERS & SOURCES OF COMPETITIVE ADVANTAGE MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 24  THE BLUE OCEAN VS. RED OCEAN STRATEGY MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 25  THE BLUE OCEAN VS. RED OCEAN STRATEGY MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 26  THE BLUE OCEAN CANVAS MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 27  THE BLUE OCEAN CANVAS MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 28  THE BLUE OCEAN CANVAS MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 29 THE ANTES VS DRIVERS MATRIX Step 1 – Make your list Make a list of everything you can say about your organization. Look for statements you make about your brand, what it offers and what it represents. Be sure to include everything you actually have said in your marketing and advertising materials. My tip: organize a brainstorming in order to gather as much raw material as you can Example for a Bank: friendly, personal service, FDIC insured, top 100 local employer, free checking, free online bill pay, mobile banking, iPad app, innovative, we’re on Facebook, etc., etc., etc. MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 30 THE ANTES VS DRIVERS MATRIX Step 2 – Evaluate each statement For each item on your list, ask how different it is from what your competitors offer. Take each statement and rate it on a scale ranging from “identical to the competition” to “no one else in the world does it.” Then determine how important each item on your list is to your target audience. At the bottom of the scale is “no one cares at all” on up to a “vital issue of utmost importance” at the top. Example for a Bank: MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 31 THE ANTES VS DRIVERS MATRIX Step 3 – Map it out For each statement in your list, figure out in which quadrant it belongs on the grid below: MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 32  OTHER MAPPINGS TO IDENTIFY POINTS OF SIMILARITY & DIFFERENCE Semantic scales Value Assessment Map on 2 Criteria Perceptual map MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 33 POSSIBLE DIFFERENTIATION AXES MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 34  DIFFERENTIATION AXES All segmentation-relevant criteria can be used as differentiation axes for positioning. To summarize, we can identify 5 main axes: product performance / features / benefits brand imaginary vs a direct competitor vs a market vs another product type Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 35 DIFFERENTIATION AXES – PRODUCT PERFORMANCE Vacuum cleaners traditional positioning: Duracell offers batteries that last longer MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 36 DIFFERENTIATION AXES – PRODUCT PERFORMANCE Dyson “The Male” positioning: Duracell offers batteries that last longer MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 37 DIFFERENTIATION AXES – PRODUCT FEATURES Car usual positioning before the 60’s in the US: Duracell offers batteries that last longer MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 38 DIFFERENTIATION AXES – PRODUCT FEATURES Volkswagen disruptive approach in the early 60’s: Duracell offers batteries that last longer MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 39 DIFFERENTIATION AXES – PRODUCT BENEFITS Sensodyne way: Duracell offers batteries that last longer MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 40 DIFFERENTIATION AXES – BRAND IMAGINARY Ferrero Rocher & Rituals: Duracell offers batteries that last longer MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 41 DIFFERENTIATION AXES – VS A COMPETITOR Coke vs Pepsi: Duracell offers batteries that last longer MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 42  DIFFERENTIATION AXES – VS A MARKET Lingerie or cosmetics traditional positioning: Duracell offers batteries that last longer MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 43  DIFFERENTIATION AXES – VS A MARKET Dove “We are all beautiful” campaign: Duracell offers batteries that last longer MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 44 DIFFERENTIATION AXES – VS ANOTHER PRODUCT TYPE Uber vs Taxi corporation: MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 45  DIFFERENT LEVELS OF DIFFERENTIATION Product attributes Benefits for consumers Company value  Finding the right level to ensure the sustainability of the positioning while giving it credibility. MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 46 DIFFERENTIATE ON SUSTAINABILITY? MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 47  POSITIONING ON SUSTAINABLE ATTRIBUTES ALONE? Some brands capitalize on the fact that altruistic-social or biospheric benefits not only represent a strong vector for differentiation from competitors, but are also a factor of preference. Consumers would be willing to buy a sustainable product because of its positive effects on the planet, for example. MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 48  THE LIMITS OF A POSITIONING FOCUSED SOLELY ON SUSTAINABLE ATTRIBUTES 1 2 Sustainable attributes are intangible. Sustainable attributes are associated with correlational similarities that can be positive or negative. They are perceived as vague, ambiguous and remote Sustainable attributes work well in association with from the self: kindness or gentleness, for example. either because they are "belief-based", i.e. not identifiable even after the offer has been But they are also strongly negatively correlated with consumed the notion of performance (e.g. ecological either because they are "experiential", i.e. not detergents are perceived as less effective than observable by the consumer prior to purchase. conventional detergents). MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 49 SO HOW DO YOU INTEGRATE SUSTAINABILITY INTO YOUR POSITIONING? Reassuring consumers about the performance of sustainable products. 1 E.g., Le Chat Eco Efficacité: Name + European ecolabel + claims of efficency MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 50 SO HOW DO YOU INTEGRATE SUSTAINABILITY INTO YOUR POSITIONING? Considering the sustainable attribute as one element among others, associating it with egocentric benefits 2 E.g., Green bundle or Triple Value proposition approaches Green bundling (Delmas and Colgan, 2018) Personal co-benefits that can be associated Description with a sustainable attribute Quality Best performance for sustainable products Health Link between environmental impacts and individual health Economy Monetary gain Public context likely to reinforce the role of sustainable attributes, as it highlights consumer choices and Status responsibilities Psychological well-being following the purchase of a sustainable product or the adoption of a pro-environmental Emotion practice, which corresponds to an eudemonic value (expressing a meaningful life) Triple Value Proposition (BBMG, 2008) A sustainable offer must offer: (1) egocentric benefits responding to individual interests for the consumer; (2) altruistic-social/biospheric benefits; (3) benefits linked to the stakeholders' belonging to a wider community that shares their values. MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 51 S 4.1. WHAT IS POSITIONING? S 4.2. DEFINING THE COMPETITIVE UNIVERSE S 4.3. CHOOSING DIFFERENTIATION AXES S 4.4. STATING AN EFFECTIVE POSITIONING MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 52 WHAT ARE THE QUALITIES OF EFFECTIVE POSITIONING? MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 53  6 QUALITIES Be simple Be attractive Be credible Be different Be profitable Be long-lasting Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 54 HOW TO STATE THE POSITIONING? MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 55  POSITIONING STATEMENT What you should NOT do MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 56  POSITIONING STATEMENT What you should do A1 Industries has developed an economical and easy-to-use chemical additive that allows paint manufacturing companies to reduce the environmental impact of their products. A1 Industries has developed an economical and easy-to-use chemical additive that allows paint manufacturing companies to reduce the environmental impact of their products. What is it? Who is it for? Why is it valuable? MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 57  POSITIONING STATEMENT [Product/offer X] is/proposes [product category to which the offer belongs, i.e. reference universe] With [characteristics retained as points of differentiation] Which allows [target] To [expected benefit(s)] MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 58  POSITIONING STATEMENT [Data Soluce] is [a SaaS platform] that brings Product X Product Category together [all construction stakeholders (from architects to builders to maintenance)] Target around [a double digital building (model, plans, description) that is constantly updated], Differentiating characteristics for [greater productivity in the construction and maintenance phases]. Expected benefit MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 59  POSITIONING STATEMENT [Minute Maid] is the [soft drink brand] Product X Product Category for [diet-conscious young people] Target that offers [a juice made from quality fruit, full of vitamins] Differentiating characteristics and [good for the health]. Expected benefit MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 60 HOW TO TEST THE EFFECTIVENESS AND RELEVANCE OF A POSITIONING? MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 61  FIRST STEP: FILTERING IDEAS INTERNALLY Criteria Concept 1 Concept 2 Concept 3 Target size Feasibility (duration and cost of product development) Innovative benefit and value for the consumer Competition Brand fit  Rate each criteria from --- to +++ or with a 5-points grade MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 62  SECOND STEP: EXTERNAL TEST General principles:  Always test several concepts  Avoid "overdetermined" concepts  Write all concepts following the same structure MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 63  SECOND STEP: EXTERNAL TEST Goals:  Evaluate concept understanding  Eliminate unattractive product ideas  Prioritize concepts MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 64  SECOND STEP: EXTERNAL TEST Methods: Qualitative Focus group and interviews  Analysis of concept understanding and concept attractiveness Quantitative Questionnaires  Evaluation of the interest of the concept, intent to purchase, and prioritization of concepts MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 65  SECOND STEP: EXTERNAL TEST Quantitative method, standard questionnaire: Q1- Compared to the products you know, this product seems to you: Very different / Quite different / Moderately différent… Q2- For your personal use, would you say that this product is: Very / pretty… / not at all interesting Q3- What is said about this product seems to you: (Very) Easy to believe / (Very) hard to believe What seems difficult to believe? Q4- If you found this product in your store, would you buy it: Surely - Probably…- Surely no Q5- Would you buy it Instead your usual product? / Alternatively – In addition? MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 66  #4 – POSITIONING THE OFFER MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 67  WORK IN PROGRESS Where you should be after Workshop #3: A. Full external & internal SWOT analysis done of your brand within its market B. Brand purpose, mission, identity & equity clearly identified C. Recommendations for a sustainable Product-Service System done, explaining the social & environmental challenges you resolve D. Full segmentation made and targeting Powered by Midjourney strategy defined MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 68  WORKSHOP #4 A. Define the triple layered Business Model Canvas of your sustainable PSS. Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 69  THE TRIPLE LAYERED BUSINESS MODEL CANVAS Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 70  THE TRIPLE LAYERED BUSINESS MODEL CANVAS Offering - Value Proposition: The collection of products and services a business offers to meet the needs of its customers. A company's value proposition is what distinguishes itself from its competitors. The value proposition provides value through various elements such as newness, performance, customization, "getting the job done", design, brand/status, price, cost reduction, risk reduction, accessibility, and convenience/usability. The value propositions may be: Quantitative – price and efficiency Qualitative – overall customer experience and outcome Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 71  THE TRIPLE LAYERED BUSINESS MODEL CANVAS Customers - Customer segments: To build an effective business model, a company must identify which customers it tries to serve. Various sets of customers can be segmented based on the different needs and attributes to ensure appropriate implementation of corporate strategy meets the characteristics of selected group of clients. - Channels: A company can deliver its value proposition to its targeted customers through different channels. Effective channels will distribute a company’s value proposition in ways that are fast, efficient and cost effective. An organization can reach its clients either through its own channels (store front), partner channels (major distributors), or a combination of both. Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 72  THE TRIPLE LAYERED BUSINESS MODEL CANVAS - Customer relationships: To ensure the survival and success of any businesses, companies must identify the type of relationship they want to create with their customer segments. Various forms of customer relationships include: ▪ Personal Assistance: Assistance in a form of employee-customer interaction. Such assistance is performed either during sales, after sales, and/or both. ▪ Dedicated Personal Assistance: The most intimate and hands on personal assistance where a sales representative is assigned to handle all the needs and questions of a special set of clients. ▪ Self Service: The type of relationship that translates from the indirect interaction between the company and the clients. Here, an organization provides the tools needed for the customers to serve themselves easily and effectively. ▪ Automated Services: A system similar to self-service but more personalized as it has the ability to identify individual customers and his/her preferences. An example of this would be Amazon.com making book suggestion based on the characteristics of the previous book purchased. ▪ Communities: Creating a community allows for a direct interaction among different clients and the company. The community platform produces a scenario where knowledge can be shared and problems are solved between different clients. ▪ Co-creation: A personal relationship is created through the customer's direct input in the final outcome of the company's products/services. Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 73  THE TRIPLE LAYERED BUSINESS MODEL CANVAS Infrastructure - Key Activities: The most important activities in executing a company's value proposition. - Key Resources: The resources that are necessary to create value for the customer. They are considered an asset to a company, which are needed in order to sustain and support the business. These resources could be human, financial, physical and intellectual. - Key Partner Network: In order to optimize operations and reduce risks of a business model, organization usually cultivate buyer-supplier relationships so they can focus on their core activity. Complementary business alliances also can be considered through joint ventures, strategic alliances between competitors or non-competitors. Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 74  THE TRIPLE LAYERED BUSINESS MODEL CANVAS Finances - Cost structure: ▪ Fixed Costs – Costs are unchanged across different applications. e.g. salary, rent ▪ Variable Costs – These costs vary depending on the amount of production of goods or services. e.g. music festivals ▪ Economies of Scale – Costs go down as the amount of good are ordered or produced. ▪ Economies of Scope – Costs go down due to incorporating other businesses which have a direct relation to the original product. Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 75  THE TRIPLE LAYERED BUSINESS MODEL CANVAS Finances - Revenue streams: The way a company makes income from each customer segment. Several ways to generate a revenue stream: ▪ Asset Sale – (the most common type) Selling ownership rights to a physical good. e.g. Wal-Mart ▪ Usage Fee – Money generated from the use of a particular service e.g. UPS ▪ Subscription Fees – Revenue generated by selling a continuous service. e.g. Netflix ▪ Lending/Leasing/Renting – Giving exclusive right to an asset for a particular period of time. e.g. Leasing a Car ▪ Licensing – Revenue generated from charging for the use of a protected intellectual property. ▪ Brokerage Fees – Revenue generated from an intermediate service between 2 parties. e.g. Broker selling a house for commission ▪ Advertising Powered by Midjourney – Revenue generated from charging fees for product advertising. MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 76  THE TRIPLE LAYERED BUSINESS MODEL CANVAS Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 77  THE TRIPLE LAYERED BUSINESS MODEL CANVAS … adding the environmental part Actions that How the company organization Number of units Energy & undertakes to manages the consumed by a materials All other materials create value material reuse? user over a consumption and production defined period. generated while activities needed for functional All materials Shipment, using the value that are not needed to create distribution product. “core” to company a product. modes and distances traveled Ecological costs coming from the Ecological benefits coming from the organization’s actions organization’s actions Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 78  THE TRIPLE LAYERED BUSINESS MODEL CANVAS … adding the environmental part -> Nespresso example Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 79  THE TRIPLE LAYERED BUSINESS MODEL CANVAS … and the social part Organizational How business How business structure & model matches Benefits for model adresses decision-making Social stakeholders and with society’s needs of people policies. norms & values relationships society at large who consume built with the value communities Description of proposition, around company employees, How BM benefits contributing to its & suppliers training programs, spread and reach quality of life. facilities. inclusivity, etc. others than users. Social costs coming from the organization’s Social benefits coming from the actions organization’s actions Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 80  THE TRIPLE LAYERED BUSINESS MODEL CANVAS … and the social part -> Nespresso example Source: The triple layered business model canvas: A tool to design more sustainable business models – Journal of cleaner production Powered by Midjourney June 2016 MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 81  THE TRIPLE LAYERED BUSINESS MODEL CANVAS Attention to the coherence! Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 82  WORKSHOP #4 A. Define the triple layered Business Model Canvas of your sustainable PSS. B. Work on the Value Proposition Canvas of your sustainable PSS. Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 83  THE VALUE PROPOSITION CANVAS The Value Proposition Canvas helps you to challenge, design, and build your company’s value proposition in a more structured and thoughtful way than the Business Model Canvas does. Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 84  THE VALUE PROPOSITION CANVAS Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 85  THE VALUE PROPOSITION CANVAS Customer Jobs: In the box ‘Customer Jobs’ you gather all the customer needs, the problems that they are trying to solve and the tasks they are trying to perform or complete. Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 86  THE VALUE PROPOSITION CANVAS Customer Pains: In the box ‘Customer Pains’ you gather all the negative emotions and undesired costs, situations and risk which the customer could experience before, during and after getting the job is done. Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 87  THE VALUE PROPOSITION CANVAS Customer Gains: In the box ‘Customer Gains’ you gather all the customer’s benefits and desires, and may span personal, functional, or economical etc. For example, this box could include positive emotions, functional requirements, or specific cost savings. Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 88  THE VALUE PROPOSITION CANVAS Product & Services: In the box ‘Product & Services’ you list all the products and services which your value proposition is built around. This includes for example the services that you offer or the help the customer receives either a functional, social or emotional. Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 89  THE VALUE PROPOSITION CANVAS Pain Relievers: In the box ‘Pain Relievers’ you describe how your products addresses the challenges needs and the pains of the customer, how you eliminate negative emotions, undesired costs or avoidable situations Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 90  THE VALUE PROPOSITION CANVAS Gain Creators: In the box ‘Gain Creators’ you describe how your product creates customer gain, how it offers an added value to your customer. Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 91  WORKSHOP #4 A. Define the triple layered Business Model Canvas of your sustainable PSS. B. Work on the Value Proposition Canvas of your sustainable PSS. C. Build a Blue Ocean Canvas of your offer vs your competitors D. Build an Antes vs Drivers Matrix of your sustainable Product-Service System E. Make the Positioning Statement of your brand Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 92  WORK-IN-PROGRESS SUBMISSION REMINDER: first draft report due by October 20th Word document in PDF format with: - Full diagnosis (market + company) - New product-service system idea -> show economic / social / environmental benefits of your new offer - Segmentation & targeting strategy - Positioning strategy (today’s workshop) Email address: [email protected] Powered by Midjourney MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 93 THANK YOU!  BIBLIOGRAPHY BBMG. (2008). Branding for sustainability: Five principles for leveraging brands to create shared value. https://www.csrwire.com/press_releases/14047-branding-for-sustainability-five-principles-for-leveraging-brands-to- create-shared-value Colgan, D., & Delmas, M. A. (2018). The Green Bundle: Pairing the Market with the Planet. Stanford University Press. De Baynast, A., Lendrevie, J., & Lévy, J. (2021). Mercator: Tout le marketing à l’ère de la data et du digital. Dunod. Dekhili, S., Merle, A., & Ochs, A. (2021). Marketing durable. Pearson. Kotler, P., Keller, K. L., Manceau, D., & Hemonnet, A. (2019). Marketing management (16e éd). Pearson. Volle, P., & Schouten, J. W. (2022). Marketing plus durable. De Boeck supérieur. Wiki AFM - https://marketingpourunesocieteresponsable.org/ MARKETING MANAGEMENT RECONSIDERED | S4: Positioning 95