HS285: Marketing Management Class Four June 6, 2013

1. HS285: Marketing Management Class Four June 6, 2013 Beth Goldstein

2. Today’s Class • Marketing Director Interview • The Importance of Innovation • Canadian Blood Services Case • YOUR Elevator Pitches

3. Value Proposition

4. Marketing Director Interview • Due: Thurs, June 27 via Latte • Assignment on Latte • 15% of your grade. • Explain what you learned about the field of marketing. • Must reflect insight and analysis about the interview.

5. Sample Questions • How and why did you begin your marketing career? • How is your success measured? • Do you have a marketing plan in place? If not, how do you plan for the next 1 to 3 years? • Do you tend to rely on your gut to make marketing/growth decisions or conduct research? How has this impacted your success? • How do you identify new opportunities? What marketing activities have you recently implemented to seize these opportunities?

6. Sample Questions • How do you identify changing customer (target market) needs? • How has marketing changed for your specific organization in the past five year? • What do you think about the role of branding as it relates to your specific company/organization? • What is the greatest challenge that you faced specifically related to your organization’s markets, products/services or competition? • What is the most important lesson learned from your experience in marketing?

7. How Do You Introduce Innovation? Steve Jobs Introduces the iPhone in 2007 at MacWorld

8. Innovation & Differentiation are Paramount to Success • Who – specific customers • What – unique products • Where – specific market(s) • When – right timing • Why – right message • How – business model that ties it all together

9. Lessons from the Tablet World

10. Apple – one of the first tablets… • The Newton – an extension of “pen computing” devices • Considered a spectacularfailure… ’93-’98

11. Why did the Newton fail? • It was cool … but didn’t have a clear value proposition • Too many features = too complex • Like a computer, but not fully functional • Some features were before its time: • “Communication” tool – before widely available wireless infrastructure

12. Microsoft in 2002 – what positioning? • Do they target as aREVOLUTIONARYnew experience… • Pursue early adopters, unique new uses? • … or EVOLUTIONARY? • Enhanced laptop for specificuser segments

13. Join the EVOLUTION? • Positioned as an upgraded PC laptop • Ideal user: someone who spends a lot of time in meetings.

14. 2010 – iPad positioned as DIFFERENT • The web in your hands… • This is NOT anenhanced laptop

15. Power of simplicity Source: The Peculiar Logic of Remote Control Design, Robert Fabricant - November 2, 2009

16. Priced to value proposition Priced it at $499 in line with perceivedvalue proposition • Sales Results • 300,000 -first weekend • 3 million - 80 days • 12 million apps in 1st mo. • >100 Million sold by end of 2012

17. Lessons learned • Cool product ≠ automatic success • Need to understand market • Must have appropriate value proposition • Consider what else needs to happen • Timing • Supporting ecosystem • Respond to market cues

18. Keys to differentiation • Right market • Who to target, and who NOT to target • What to include, and what NOT to include • Compelling value proposition • What need does it solve • Focused on competitive drivers • What else needs to happen to deliver value? • Overcoming barriers… Creating your own

19. Substitutes = Competition Holy Cow….I’ve been cloned!!!!

20. HVAC vs. Swimming Pool What’s the Value Proposition?

21. Your Substitutes • Your Top Value… • What other companies provide this value…that don’t look like you?

23. Canadian Blood Services (CBS) Situation: How many of you have donated? • What’s Causing the Increased demand? • Decrease wait time in hospitals • New operating procedures • Aging population • Peak demand = Low supply time • Solution: • Increase # donors • Increase # donations/yr

24. Canadian Blood Services What are the objectives of CBS? • Distance from tainted blood scandal • Create a plan to secure 1M blood-unit demand • Increase number of donors from 4 to 5 percent • Increase donation retention stats (now 51%)

25. SWOT Analysis: Strengths • Mobile clinics & 41 sites to reach donors • Growth in units collected • High quality product – only voluntary • Negative sentiment seems to be receding • Market research done on donor behavior • >80% trust CBS • Government funded

26. SWOT Analysis: Weaknesses • Blood contamination history • No incentives to donate • No sustained growth in active donors (3%) • 1.2 million total (10% population) • New donor retention rate is 51%

27. SWOT Analysis: Opportunities • Media appeal had an impact – donors receptive to marketing • Attractive segments have been identified • Young demographics more likely to donate • Altruistic donors exist • Potential seems evident: 5% donor rate (vs. 4%) in similar western countries

28. SWOT Analysis: Threats • Demand increasing at 2%/yr – twice as fast as population growth • Increase due to aging population • Increase due to decrease wait time in hospitals • Only 40% population eligible and active donors have dropped • Hurdles to getting new donors – address fear of needs, lack of time and awareness • Spikes in need occur during drops in donations

29. Decision-making process • Problem recognition • Search for potential locations • Subconscious (?) evaluation of alternatives • Confirm how, where, when • Reflect on decision following donation

30. Canadian Blood Services (CBS) • How did they segment the market • Observational research interviews at clinics • Focus group with donors • CBS recruiting staff • Market research firm survey

31. Why do consumers donate? • Altruism • Awareness of need • Family or friend in need • Social/personal benefit What barriers exist • Fear of needles • Lack of time, convenience, access

32. What factors are important • Patients come first (family/friend in need) • Community givers (practical altruism) • Karma is king (true altruism/humanitarian) • Life Savers (blood shortage) • Healthy Souls (I’m the right person) • Social Clubbers (group decisions) • Personal Gratifiers (Proud to be a donor)

33. Who Would YOU Target? Altruism Habituation Ease & Convenience Self-Fulfillment

34. How do you attract new/more donors? • Message • Safety & confidence in supply • Catch a wide net with limited budget • Traditional media? • Cross promotion (businesses/organizations) • Social media?

35. Increase Repeat Donors • All depends on first experience • Screening • Wait times • Needle insertion • Comfort • Recovery experience • Follow-up • Rescheduling of next donation

36. What Happened

37. TV Ad’s

38. Young Blood for Life

39. Social Media

40. CBS

41. CBS

42. Break Time

43. How Do You Introduce Yourself? What’s Your BusinessElevator Pitch? 43

44. Remember: The Adult Attention Span is…. • 15 to 30 seconds 44

45. The Value of A SOLID Pitch • Reciprocal-give & take • Learn about others • Purposeful • Develop trust

46. Body Language • Appropriate gestureshelp explain • Demonstrate yourpassion • Channel nervousenergy • Stand with confidence and ease

47. Voice • Pacing • Inflection • Articulation • Volume

48. Eye Contact • Impacts credibility • How confident you appear • Not a staring contest • Cultural differences • If you can’t “look someone in the eye” it may hurt your chances for success!

49. Facial Expressions • Excitement • Interest • Sincerity • Boredom

50. Power Posing – Increases Confidence Increases testosterone levels • Arms in the air • Feet up on your desk • Stand on tiptoes with arms up YES!!!!WOMEN HAVE TESTOSTERONE! Source: Amy Cuddy, Asst. Professor, Harvard Business School.