MKT 5750 Study Guide PDF

Week 1: Marketing Strategy Fundamentals Strategy Execution: Success comes from excellent execution. A well-executed average strategy often outperforms a poorly executed great strategy. Marketing Strategy Framework: 1. Disruption: Changes in the market that shake up establi...

Week 1: Marketing Strategy Fundamentals Strategy Execution: Success comes from excellent execution. A well-executed average strategy often outperforms a poorly executed great strategy. Marketing Strategy Framework: 1. Disruption: Changes in the market that shake up established players (e.g., new technology).- The introduction of ride-sharing apps like Uber and Lyft disrupted the traditional taxi industry by offering more convenient, technology-driven solutions. 2. Market Assessment: Analyzing the environment and competitors.- A smartphone company analyzes its competitors like Apple and Samsung, looks at customer demand for new features, and assesses the potential of entering emerging markets like India and Brazil. 3. Strategic Target: Identifying the audience with the highest business potential. (A luxury watch brand identifies high-net-worth individuals aged 30-50, who value exclusivity and craftsmanship, as the audience with the highest business potential for their premium line of watches.) 4. Marketing Plan (4Ps): Product, Price, Place, Promotion. 5. Brand Positioning: How you want customers to perceive your brand.(Tesla positions itself as a premium, innovative electric car brand that combines cutting-edge technology with environmental sustainability. Customers perceive Tesla as a leader in the electric vehicle market, known for luxury, innovation, and eco-consciousness) Key Focus: Great execution drives growth, even with basic strategies​(MKT 5750 Week1). Week 2: Disruptive Business Models Disruption: When innovative companies change the game and outcompete established businesses (e.g., Kodak’s failure to adapt to digital). Business Models: 1. Subscription Model: Recurring payments for ongoing services (e.g., Netflix). 2. Freemium Model: Basic services are free; premium features require payment (e.g., Spotify). 3. Sharing Economy: Customers use rather than own products (e.g., Airbnb). 4. On-Demand Model: Immediate access to services (e.g., Uber). 5. Experience Model: Unique customer experiences are the selling point. (Disneyland) 6. Ecosystem Model: A universe of products/services around one brand (e.g., Apple). Defensive Strategies: Use strengths to slow competitor progress, retain customers, and innovate to stay relevant​(MKT 5750 Week 2). Week 3: Market Assessment 5C’s of Market Assessment: 1. Context (PESTLE): Political, Economic, Social, Technological, Legal, and Environmental forces. A global fast-food chain is conducting a PESTLE analysis to expand into a new country: 1. Political: The company considers the stability of the country's government and any regulations regarding foreign businesses or fast food operations, such as trade policies or taxes. 2. Economic: The company assesses the country's economic conditions, like the level of disposable income, inflation rates, and employment levels, to determine if the population can afford their products. 3. Social: The chain looks at cultural preferences and lifestyle trends, such as the increasing demand for healthier food options, to see if their menu needs adjustments. 4. Technological: They evaluate the technological infrastructure, like the availability of mobile payment systems or the use of delivery apps, to enhance customer convenience. 5. Legal: The company reviews food safety laws, labor regulations, and advertising restrictions that could impact their operations. 6. Environmental: They consider the country's environmental policies, such as sustainability requirements, waste management, and carbon footprint regulations, which could affect packaging or sourcing ingredients. 2. Competition: Evaluate rivals with tools like SWOT and Porter’s 5 Forces (Supplier Power, Buyer Power, Threat of Substitution, Threat of New Entry, Industry Rivalry). 3. Category: Understand the market and its dynamics. 4. Channel: Routes to market (distribution strategies). 5. Consumer: Buyer needs, behaviors, and trends​(MKT 5750 Week 3 F24). Week 4: Advanced Market Assessment PESTLE Analysis: Assesses external macro forces affecting business strategy. Case Study – Coca-Cola: ○ Key Pressure: Rising health concerns. ○ Response: Innovation, such as reducing sugar content, to meet consumer demands and stay competitive​(MKT 5750 Week 4 F24 R). Week 5: Insight Generation What is an Insight?: A deep understanding of what drives consumer behavior that can spark action and unlock growth. 4i’s Tool: A method for generating insights. 1. Issue: What’s the problem? 2. Info: Data and facts on consumer behavior.  3. Insight: The key learning that will lead to change. 4. Implication: What action should we take based on the insight? Usage of Insights: Drives brand positioning, product innovation, and marketing campaigns​(MKT 5750 Week 5 Insight…). Week 6: Strategic Targeting Strategic Target: The consumers with the most potential to generate long-term business. They share common needs and are receptive to your brand. Segmentation Types: 1. Geographic: Based on location (city, region, etc.). 2. Demographic: Based on age, gender, income, etc. 3. Behavioral: Based on product usage and buying behaviors. 4. Psychographic: Based on lifestyle, values, and personality traits. Category Definition: Defines where your brand fits in the market. Broad definitions allow for more competition; narrow definitions help focus efforts​(MKT 5750 Week 6 Strateg…). Week 7: Brand Management 1. Marketing Strategy Framework Market Trends: Identify current trends to stay relevant (e.g., sustainability in fashion). Target Segment: Focus on a segment that aligns with your business goals (e.g., Nike targeting health-conscious individuals). Brand Positioning: Position your brand with meaningful associations (e.g., Apple’s positioning as an innovative, premium tech brand). 2. Target Segment Principles Size of Prize: Select a segment large enough for long-term success (e.g., IKEA focusing on urban home lovers who want stylish, affordable furniture). Right to Win: Offer a product that uniquely fits consumer needs (e.g., Dove’s emphasis on real beauty, setting it apart from beauty industry competitors). 3. Profiling Consumers Use the 5 W Model: Who: Demographics and lifestyle (e.g., 25-35 year-olds who are environmentally conscious). What: Products consumed and how (e.g., Tesla owners looking for eco-friendly transportation).  Where: Buying location (e.g., consumers who purchase athletic gear from online retailers like Nike.com). When: Occasions for consumption (e.g., people consuming Starbucks during their morning commute). Why: Why do they choose the product (e.g., Apple customers value quality and design). 4. Brand Positioning Pyramid Proof: Provide evidence to support brand promises (e.g., Nike’s association with elite athletes as proof of superior performance). Discriminator: What sets your brand apart (e.g., Coca-Cola’s global reach and brand recognition). Personality: Human characteristics (e.g., Harley-Davidson being associated with ruggedness and freedom). Benefit: Functional and emotional (e.g., Apple’s functional benefit is user-friendly tech, while the emotional benefit is feeling part of an exclusive community). Insight: Consumer motivation (e.g., IKEA’s insight that urban dwellers want affordable, stylish solutions). Target: Demographic/psychographic profile (e.g., Patagonia targets environmentally conscious outdoor enthusiasts). Market & Competition: Direct and indirect competitors (e.g., Pepsi and Coca-Cola are direct competitors in the soft drink market). Roots: Internal strengths (e.g., LEGO leveraging its heritage as a leader in educational toys). 5. Consumer Insights Insight: Explain why consumers behave as they do (e.g., IKEA understands that their consumers want stylish homes, but at affordable prices). Example Insight: “People want to stay fit but are overwhelmed by their busy schedules,” leading to the creation of fitness apps like Peloton that offer convenient, at-home workouts. 6. Benefits Functional: What the product does (e.g., Nike shoes improve athletic performance). Emotional: How the product makes you feel (e.g., wearing luxury brand Gucci makes you feel exclusive and fashionable). Societal: How the product benefits society (e.g., TOMS Shoes' buy-one-give-one model helps provide shoes to those in need). 7. Discriminator  The reason consumers choose your brand over others (e.g., Amazon’s fast, reliable delivery differentiates it from competitors). Example: Dove is the only brand that promotes “real beauty,” differentiating itself from other beauty brands that rely on unrealistic beauty standards. 8. Reason to Believe (RTB) RTB: Offers proof of your brand’s claims (e.g., Colgate’s scientific testing as proof of superior cavity protection). Example: Nike’s “Just Do It” campaign, endorsed by top athletes, gives credibility to its brand message of athletic excellence. 9. Brand Personality Describes how the brand would be seen if it were a person (e.g., Red Bull would be described as energetic, daring, and adventurous). Example: Chanel is seen as elegant, timeless, and luxurious. 10. Purpose A brand's purpose should align with societal values and emotional fulfillment (e.g., Patagonia’s commitment to environmental sustainability as part of its brand mission). Example: IKEA’s purpose of "democratizing design" by offering affordable, well-designed furniture that’s accessible to everyone. Quick Definitions Recap: Disruption: Market shifts that challenge established players. Market Assessment: Evaluating the market environment. PESTLE: Political, Economic, Social, Technological, Legal, Environmental factors. Strategic Target: The most valuable customer segment. Brand Positioning: The image you want to create in customers' minds. —--------------------------- Case studies 1. Segmentation and Targeting (Sunil Gupta)​(ebe28aab-86b4-40d7-9aee…) Main Idea: The article explains how companies can effectively group customers into segments based on shared needs, allowing them to tailor products and marketing strategies.  Key Concepts: ○ Segmentation: Dividing a diverse market into subgroups with common preferences (e.g., Mac users vs. PC users). ○ Targeting: Selecting specific segments to focus on based on size, profitability, and competition. ○ Positioning: Tailoring the product or service to meet the needs of the targeted segment. ○ Why Segment?: To better meet the diverse needs of customers and uncover untapped market opportunities. 2. Framework for Marketing Strategy Formation (Robert J. Dolan)​(24a670d0-0f88-47b9-b968…) Main Idea: This article outlines a systematic process for creating a marketing strategy that maximizes competitive advantage. Key Concepts: ○ 5 C's Analysis: Focus on Customer, Company, Collaborators, Competition, and Context to understand the market. ○ STP: Segmenting, Targeting, and Positioning helps decide which customers to serve and how to differentiate the brand. ○ 4 P's of Marketing Mix: Product, Price, Place, and Promotion—ensure all these elements align with customer needs to create value. ○ Strategy Formation: A blueprint that helps companies gain and retain customers through competitive positioning. 3. Competitive Strategies (Jill Avery & Sunil Gupta)​(85b8ddcd-cccc-412e-8bc7…) Main Idea: This article discusses how companies can compete effectively by understanding the competitive dynamics in the marketplace. Key Concepts: ○ Competitive Dynamics: The constant change in market conditions and how companies must adapt by anticipating competitors' actions. ○ Offensive and Defensive Strategies: Companies can either attack competitors' weaknesses (offensive) or protect their market position (defensive). ○ Disruptive Innovation: New competitors with cheaper, simpler products often disrupt established companies, as seen in Kodak’s failure against digital photography. HubSpot: Inbound Marketing and Web 2.0 Case Study Summary​(44b492f3-88b3-4f0c-8b5d…) Overview: HubSpot, founded by Brian Halligan and Dharmesh Shah in 2006, became a leader in inbound marketing by helping businesses attract and engage customers using Web 2.0 tools like blogs, social media, and search engine optimization (SEO). The company reached 1,000 customers by 2009, relying on the inbound marketing philosophy they preached. Key Concepts: Inbound Marketing: Focused on creating content that pulls customers toward a business rather than traditional "outbound" methods like cold calling or ads. Web 2.0: Leveraged interactive tools such as blogs, SEO, and social media to engage customers. Challenges: 1. Customer Segmentation: HubSpot identified two key customer personas: ○ Owner Ollie: Small business owners needing simple lead generation tools. ○ Marketer Mary: Professional marketers seeking advanced tools for detailed analytics. 2. Pricing and Growth: The company considered whether their SaaS pricing model and reliance solely on inbound marketing could sustain long-term growth. They debated if they should target Ollies or Marys or if they should begin integrating outbound tactics to scale faster. Key Decisions: HubSpot needed to decide whether to stay committed to inbound marketing alone or to incorporate outbound methods like traditional advertising and cold-calling to boost sales. They also needed to choose between focusing on Owner Ollies (easier to sell to) or Marketer Marys (more profitable long-term customers). Outcome: HubSpot's debate around customer segmentation, pricing, and scaling through either pure inbound marketing or a blend of inbound/outbound was crucial to their next phase of growth. They were already becoming a leader in inbound marketing, but to continue growing, they needed to refine their strategy.