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77 Cards in this Set
- Front
- Back
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What, according to David Collins ("Can you Say What Your Strategy Is?"), is the essence of strategy?
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A sustainable competitive advantage. (According to a later note, the essence of strategy is also "choosing what NOT to do")
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What is a "strategy"?
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- a unique value proposition vs. competitors
- a different, tailored value chain - clear trade-offs, and choosing what not to do - activities that fit together and reinforce each other - continuity of position with continual improvement in realizing it |
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What is the job of a "strategist"?
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To make choices about how to make their company or organization unique
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What is NOT a "strategy"?
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- Aspirations
- Action - Agility (it's an attribute) - Alliances - Anything that's important - A corporate vision or mission - Adapting to the latest trend (important but not a strategy) |
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T or F: Growth is a strategy.
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FALSE. Growth is not a strategy, it's an aspiration
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Origins of strategic positions***
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1. Variety-based (choice of product or services)
2. Needs-based (targeting customer segments) 3. Access-based (segmenting customers who are accessible in different ways) |
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Why trade-offs arise [?]
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- Image
- Activities - Internal controls (Note says: "Trade-offs are good. A lot of people don't want to make them.") |
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McKinsey's Model for Business Strategy
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The Chosen Value Proposition and Value Delivery System
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The Chosen Value Proposition [part of the McKinsey Model; see example in 1/29 lecture]
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- Brand target
- Desired action - Best perceived alternative(s) - Experiences of value target receives * Benefits * Trade-offs * Experiences equal to alternatives - Price paid to get these experiences vs. alternatives |
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The Value Delivery System
[part of the McKinsey Model; see example in 1/29 lecture] |
Customer value experience delivery
--> Organizational capabilities developed to implement the delivery system * Where is focus/investment * What is divergent/differentiating |
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T or F: The Strategic Canvas can be a strategic profile of an industry, of current and potential customers, or of a business or organization
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TRUE. It can be all of these strategic profiles:
- of an industry - of current and potential customers - of a business or organization |
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What characterizes an effective strategy?
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1. Focus (on something different)
2. Divergence 3. A compelling "tag line" (sum it all up in a way you can understand, e.g., Expect more, pay less. --or-- Always low prices.) |
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What kind of trade-offs did Southwest strategists ignore?
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They ignored complaints about:
- no meals - less desirable seating (i.e., no reserved) - less comfort Note: It is not always effective to listen to your customers. |
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What is a brand?
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"The power of a brand lies in what resides in the minds of its consumers." - Kevin Keller
[Points made early on:] - Strategic point of view - Central to creating customer value - A key tool for creating and maintaining a competitive advantage - Cultures that circulate as stories, images, and associations - Must be engineered into the marketing mix A brand is a set of associations that provide the distinct image and the basis for a loyal customer relationship A brand is: - In the consumer's mind - A collection of impressions - Made up of functional and emotional benefits - Powerful enough to command a strong commitment and be a competitive advantage |
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T or F: Effective brand strategies help create brand value, and they can be measured
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TRUE.
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T or F: Brand cultures are formed individually.
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FALSE. They are formed collectively. (With Toyota, the collective view is starting to shift.)
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T or F: Once we accept a brand's story, we're reluctant to seek out conflicting information.
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TRUE. Brand myths are likely to become accepted.
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What a strong brand can do for you:
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- Drive repeat business through loyalty
- Receive higher margins through brand-base price premiums - Lend immediate credibility to new product introductions - Provide clarity in internal focus |
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What is NOT a brand?
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- The advertising
- The logo - Only of concern to the Mktg. Dept. - A slogan/tagline |
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What drives brand strategy?
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Business strategy
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What types of things does brand strategy drive?
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- Customer experience
- Product/services - Employee communications - Competitive response - Communications strategy - Employee hiring |
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Four essential principles of brand strategy:
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1. Actively championed and managed from the top-down
2. Its values are lived and breathed across the organization 3. The brand promise is consistently executed across all communications 4. Brand activities are monitored and adjusted when needed |
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The Brand Health Metrics:
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Awareness
Activity Attitudes Associations Attachment |
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Definition of "branding elements"
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- The set of brand assets and liabilities linked to the brand (and its name and symbol) that adds or subtracts value to a product or service for a firm and its customers
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Why are branding elements important?
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Every time the target audience touches the brand, the experience either enhances or diminishes brand equity
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Examples of emotional benefits:
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- Brand personality
- Brand tone - Brand symbols - Brand image - Brand organization (culture) |
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Examples of rational benefits:
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- Attributes
- Performance - Perceived value - Customer experience |
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Definition of "brand personality"
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The set of human characteristics associated with a brand
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Definition of "brand tone"
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The way the brand speaks to you
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What are "brand symbols"?
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Anything that represents the brand can be a symbol
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Definition of "brand image"
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How the brand is perceived
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Definition of "brand organization/culture"?
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The organization's value, culture, people, & programs
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4 Branding Models
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1. Mind-share Branding
2. Emotional Branding 3. Cultural Branding 4. Viral Branding |
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Mind-Share Branding
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Organizing your brand around one big thought/a set of associations
(think Toro and "reliability") |
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Emotional Branding
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A relationship partner
(think Starbucks --> they're your friend) |
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Cultural Branding
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Performing or containing an identity myth; it's the land of brand zealotry
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Viral Branding
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Let the customers own and define it.
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Why is it important to align your brand with an archetype?
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Creates a clear impression in the minds of consumers
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What are the polar points for the Brand Archetype Matrix?
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- Stability vs. Change
- Belonging vs. Independence |
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Where do Challenger brands tend on the Brand Archetype Matrix?
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Toward the Change side of the matrix
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What is the first step in positioning?
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Targeting
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3 Basic Target Market Segmentation Options
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* Niche market
* Undifferentiated market (mass market) * Differentiated market (segmentation) |
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What questions would you ask to determine who your priority target is?
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- Where are sales or usage going to come from?
- What do you know about them? - Who in the decision-making process do you need to reach? - Do you have a lot or limited resources? - What distribution channels? |
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What targets might require multiple messages?
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Mass targets or target segments (NOT niche targets)
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What is the primary use of segmentation?
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Define a target market, NOT a target audience.
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What is the scale for Target Segmentation Objectives?
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Shallow Decisions <---> Deep Decisions
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Criteria for Good Market Segmentation:
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- Differentiated (are they differentiated enough?)
- Related to value (are they somehow related to value?) - Identifiable (can you identify these people?) - Accessible (can you reach these people?) - Aligned |
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Order of the Differential Targeting Analysis:
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- Segment
- $ Value - Barriers - Communications Objectives - Broad Strategy - Targeted Strategy |
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What is an insight?
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A discovery about your consumer that opens the door to a brand opportunity
A universally accepted truth hiding in plain sight |
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What makes a good insight
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- Strikes a chord
- Gets people excited |
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Sources of insights
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- Consumer
- Usage - Brand - Market - Cultural - Competitive |
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How would you go about obtaining consumer insights?
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Quantitatively: tracking studies; zealot research; laddering
Qualitatively: zealot research; shop alongs; journals |
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Laddering: four steps
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(down to up)
Attribute --> Functional Benefit --> Personal Benefit --> Personal Value (first two rational; second two emotional) |
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What are some questions you might ask to obtain qualitative consumer insights?
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- What do they love or hate?
- What are their values? - Where do they live? |
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Where might you look for cultural insights?
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- Blogs
- Newspapers - Social media |
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What are some questions you might ask to obtain market insights?
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- What's going on in the category?
- What makes the category different? Unique? |
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What are some questions you might ask to obtain brand insights?
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- What is unique or different about your brand?
- Is there a story in the history of the brand? |
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What are some questions you might ask to obtain usage insights?
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- What do they love/hate about using the product?
- What's missing? |
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What are the main takeaways in insights?
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- Make the target real
- Be intellectually honest - Don't underestimate the value of getting buy in for your insights... - Keep pushing |
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What is positioning?
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1. The choice of target markets
2. The choice of the benefit that creates the differential advantage It's about putting the brand in the mind. (As opposed to branding, which is about the process of building a brand.) |
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Elements of positioning
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- Where to position on the benefits ladder
- Target customer - Competitive frame of reference - Points of parity - Points of difference |
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Point of Parity
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Not unique, but sometimes must be established first (e.g., with new products)
These are things that you need to register in order to be competitive (Think Nature Valley granola bar) |
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Points of Difference -- what do these need to be?
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(Desirability:)
- Relevant - Believable - Distinctive (Deliverability) - Feasability - Communicable - Sustainable |
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Negative correlation***
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"The High Performance Luxury Car"
Opposite of common brands; it challenge It creates a seeming contradiction |
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The value equation
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Value = (Expectations for Get)/(Expectations for Pay)
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What's the goal of working the numerator/denominator in the Value Equation?
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Getting back into the "fair value" corridor
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What is an opportunity?
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A situation or circumstance that can potentially give the company a marketing advantage
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Generic tactics for finding insights
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- Look for something obvious that others have missed
- Ask your customers - Go back to the customer journey - Ladder up to an emotional benefit - Find a different ladder |
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T or F: Brand Idea and Platform Idea are not the same thing.
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FALSE. They ARE the same.
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T or F: The Brand Idea is not just about storytelling.
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TRUE. It's not just stories, but ideas that are SO big that they contribute to all of these areas
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What four qualities are indicative of good brand ideas?
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1. Simple
2. Specific 3. Surprising 4. Story-worthy |
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What must precede executional integration?
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Strategic integration
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Brand persona (Strategic architecture)
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The visceral, emotional foundation
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Targeted message (Strategic architecture)
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Messages by target audience, product, or series
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Brand promise (Strategic architecture)
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The concise articulation of the brand positioning, perhaps with a bit of an idea baked into it (should reflect the benefit that gives you the differential advantage)
Covenant to customers For a service, it's often the description of how the human delivery service should behave (think Ritz-Carlton) |
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Targeted messages (in the strategic architecture) should correspond to what?
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- Communications objectives
- Key market drivers |
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Target messages (in the strategic architecture) should support what?
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The overall Brand Promise
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