Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
63 Cards in this Set
- Front
- Back
|
Organizational Objective What is it? |
– Single most important goal of the organization– Examples: share price, corporate profits,enrollment, funds raised, membership, votes |
|
|
Organizational Objective How do we know what it is? |
Mission statement |
|
|
Mission Statement |
A formal document that describes the firms overall purpose and what it hopes to achieve in terms of its customers, products, and resources A useful mission statement must: 1. Define the core business 2. Conceptualize the core business in terms of benefits rather than functions |
|
|
Customer: |
Any person or organization downstream in the distribution channel or decision process whose actions can affect the purchase of your offer |
|
|
5 C’s |
Customer, Competition, Company, Collaborators, Context |
|
|
What do Customers value? |
Functional Psychological Economic |
|
|
Segment: |
Group of actual or potential customers who either possess similar characteristics, who share the same benefit requirements, or who respond similarly to marketing mix variables |
|
|
Customer Profile Exercise |
• Step 1: Identify customer segment • Step 2: Identify Customer Jobs – Functional – Social – Personal/Emotional – Supporting (B2B) • Step 3: Rank Customer Jobs • Step 4: Identify (at least 3) Customer Pains – Bad outcomes – Obstacles – Risks • Step 5: Identify Gains – Required – Expected – Desired – Unexpected • Step 6: Prioritize– Jobs: Insignificant to Important– Pains: Moderate to Extreme– Gains: Nice to have to Essential |
|
|
Steps in the Research Process |
Define problem/objectives Determine research design Choose data collection method Design the sample Collect the data Analyze data Prepare report |
|
|
EXPLORATORY (Qualitative) |
* Identifies motivations underlying behavior
* Yields initial hunches & insights for future research • Focus Groups • Depth Interviews • Projective Techniques Hypothesis Generation Problem/Issue Identification |
|
|
CAUSAL (Experimental) |
* Formally establishes cause and effect relationship • Observational Studies • Surveys • Consumer Panels Segment Description Sales Response Modeling |
|
|
DESCRIPTIVE (Quantitative) |
* Describes consumer behavior Who, when, where, how much * Verifies insights with numerical data for action • Lab Experiments • Field Experiments • Quasi-Experiments IsolatingCausalRelationships(price vs.reference vs.price spread) |
|
|
Start with secondary data |
on the basis of cost over relevance.
|
|
|
Tradeoff expertise and bias |
across internal and external sources.
|
|
|
PRIMARY DATASOURCES |
External Sources • Market research firms • Advertising agencies • Web analytics (paid) Internal Sources External • Web analytics (unpaid) • In-House marketingresearch department |
|
|
SECONDARY DATASOURCES |
External Sources • Government agencies • Competitors • Trade associations • Business publications • Syndicated sources – Store audits– UPC scanner data– Advtg. exposure data– Single source data– Specialized syndicatedproducts/expert systems Internal Sources • Accounting data • Sales reports • Factory shipments |
|
|
Competitor: |
Any organization whose goods and services could provide the same benefits to your target segment(s)
|
|
|
Collaborator: |
Any organization who assists in the delivery of benefits to your target segment(s)
|
|
|
Company: |
Your organization (strengths & weaknesses)
|
|
|
Competitor, Collaborator & CompanyAnalysis – Key Questions |
• Who are they? • What capabilities/skills/assets do they have?
• How can/will they go to market? – Strategies – Objectives – Historical reaction patterns on marketing mix variables • What motivates their behavior (esp. forcollaborators)? |
|
|
Competitor Analysis Successful Organizations |
Define competition broadly Anticipate future competition, both new competitors and ways of competing Consider not only product/market competition, but also intermarket competition between organizations Consider competitive response both in terms of capabilities and anticipated behaviors |
|
|
Competitor Analysis Successful Organizations Define competition broadly |
– Actual competitors – in the market now – Potential competitors – may enter later – Direct competitors – offer very similar benefit solutions though similar products or services – Indirect competitor – offer similar benefit solution through substitute product or service |
|
|
Competitor Analysis Consider competitive response both in terms ofcapabilities and anticipated behaviors |
– Capabilities • Strengths & weaknesses • Financial statements – Predicted behavior • Past behavior • Optimal decision making (game theory) • Strategic intent: Mission, objectives, letters to shareholders, etc.11 |
|
|
Context Analysis – External factors thatinfluence the other 4 Cs Examination of “external environments” whichinfluence the marketplace |
– Factors that affect the firm’s ability to… • Generate differential advantage • Maintain differential advantage • Exploit differential advantage – Key Environments • Macroeconomic • Social/Cultural • Technological • Political – Look for factors/dynamics in each environment that impact: • Firm’s ability to deliver benefits • Benefits desired by customer segments |
|
|
Differential Advantage: |
You have differential advantage when a segment of customers values the benefit(s) you provide and believes you are the one best able to deliver them. Becomes the basis for positioning your offer relative toyour target segment |
|
|
Differential Advantage: A segment by benefit by business strength construct Template |
UM SoBA has a differential advantage in delivering benefit ________ tosegment ________________ through business strength(s)___________________. |
|
|
Sources of Differential Advantage |
Business strengths, often defined as assets and skills, provide the basis for differential advantage • Asset: Something the firm possesses, such as a brand name, retail location, human capital, etc. that is superior to that of the competition • Skill: Something the firm does better than it’s competitors, such as advertising, merchandizing, efficient manufacturing, etc. 14 |
|
|
Differential Advantage Dynamics |
• Tend to erode over time - Knowledge and capabilities diffuse through the industry - Competition drives markets from differentiated offers tocommodities • Often sustained by focusing on functional or psychologicalbenefits |
|
|
STP |
Segmentation, Targeting &Positioning |
|
|
Marketing Strategy: |
Set of target segments plus a positioning for eachsegment that frames the offer in customers’ minds |
|
|
Marketing Strategy: Segmentation, Targeting &Positioning (STP) |
• Serves as a guide for all marketing communications • Consider Marketing Strategy as a set of “elevatorpitches” for your offer |
|
|
Choosing a Target SegmentFive Criteria |
• Measurability • Accessibility • Differentiability • Substantiality • Actionability |
|
|
• Measurability: |
Can we identify how to measure a particular segmentation base (age vs. attitude)?
|
|
|
• Accessibility: |
Can we reach this segment? How much will it cost?
|
|
|
• Differentiability: |
Can we tell one segment from another?
|
|
|
• Substantiality: |
Size of the segment, in terms of population or profit potential
|
|
|
• Actionability: |
Do we have a differential advantage that the segment values?
|
|
|
Positioning: |
The act of framing the organization’s image and its offer in the target customer’s mind, so it occupies a distinct and valued place relative to competition.
|
|
|
Positioning consists of |
a frame of reference (comparison set) and one or a few compelling points of difference that succinctly and dramatically state the value to the target
|
|
|
Positioning StatementsFrame of Reference |
The mental classification upon which we wantpeople to hang new information Often communicated through a point of parity ormembership in a product category/class Should be understandable by target segment andconvey little/no baggage. It’s like an X, but… |
|
|
Key “points of parity” |
often convey the frame of reference to target customers.
|
|
|
Frames of reference |
convey both the good and the bad
|
|
|
Positioning Statements: Point of Difference |
• One phrase that dramatizes our value compared to other offers in the same frame of reference – Exploits Differential Advantage • Communicate key benefit delivery advantage in a clear, concise statement • Should stress exclusivity (sole provider of benefit/benefit combination) or superlative (most of benefit or ____est) relative to other offers in same frame of reference |
|
|
The point of difference is the |
most dramatic, conciserepresentation of the offer’s unique value comparedto others in the frame of reference. |
|
|
Positioning Statement Template |
To _______________________________ (customer target description) …the ____________________(name) is the ___________________ (frame of reference) …that _____________________________________ (compelling point of difference) because ____________________ (reason to believe)
|
|
|
Sometimes the point of difference |
appears tangential to the primary product or category benefit.
|
|
|
Positioning may be reflected |
graphically. This is a perceptual map.
|
|
|
A complete marketing strategy includes positioningstatements for target segments Multiple sets of… |
• Customer target segments • Frame of reference • Compelling point of difference |
|
|
Evaluate any proposed marketingstrategy against these final checks |
Have you selected target segment(s) based onmeasurability, accessibility, differentiability,substantiality, and actionability? Does each positioning dramatize the unique valuecreated to each target? If believed, will each positioning motivate the targetto take action? Can customers move from one segment to anotherand is there risk associated with this movement? |
|
|
SMART |
specific, measurable, achievable, relevant, and time bound.
|
|
|
Specific |
—The objective pertains to a sufficiently detailed dimension such that all decision makers can reliably agree upon its definition
|
|
|
Measurable |
—The dimension underlying the objective is quantitative in nature and can be reliably and validly measured through known criteria
|
|
|
Achievable |
—The objective must be attainable given our understanding of the marketspace
|
|
|
Relevant |
—The objective identified should be relevant to the attainment of the overall Organizational Objective given the current and anticipated marketing environment.
|
|
|
Time bound |
—The objective must include a time frame for evaluation purposes,
|
|
|
SMART goals |
tend to be very poor tools for performance management |
|
|
Customer acquisition |
activities are those actions dedicated to acquiring or re‐acquiring new customers to our brand franchise
|
|
|
STP: Steps in the Process |
Brainstorm variables Select VariablesPlot the Market |
|
|
Segmenting
|
at its most basic, is the separation of a group of customers with different needs into subgroups of customers with similar needs and preferences.
|
|
|
Truths About Segmentation |
One, companies rarely create a segment— more often they uncover one. Two, segmentation and demographics are very differentthings. three: you have to ask yourself why you want to segment and what decisions you’llmake based on the information. |
|
|
Customer Value- Functional |
• Efficacy• Reliability• Ease of use• Efficiency• Safety
|
|
|
Customer Value- Psychological |
Status
Self-assurance Security Risk reduction |
|
|
customer Value- Economic |
• Price • Credit Terms • Discounts |
