October 7, 2013

1. October 7, 2013 • Ads? • Understanding the W’s to drive Marketing Mix • Positioning • Assignment for next class

2. Marketing Mix PRODUCT PRICE PLACE POSITIONING

3. Getting to the Marketing Mix Who What Where When Why

4. Who Who are we targeting ? • Market segmentation is a powerful tool • Nearly all markets include groups of people or organizations with different product needs and preferences • Segmentation helps marketers define customer needs and wants more precisely • Because market segments differ in size and potential, segmentation helps decision makers more accurately define objectives and better allocate resources • Performance can be measured more effectively when objectives are more precise

5. Successful segmentation: 4 criteria • A segment must be large enough to warrant developing and maintaining a special marketing mix (Size Matters) • Segments must be identifiable and their size measurable (Identify & Measure) • The firm must be able to reach them in some way with the marketing mix (Accessible) • Responds differently than other segments to a marketing approach (Uniquely Responsive)

6. Typical Segment Attributes Geography Demographics Psychographics Benefits Usage Rate • Heavy, Medium, Light users • First timers • Repeaters • Lapsed • Age • Gender • Income • Race/ethnicity • Family • Personality • Motives • Lifestyle • Benefits sought • Region • Market size • Market density • Climate

7. Targeting • Once you understand the potential segments, you must choose which ones to target…

8. Targeting • Once you understand the potential segments, you must choose which ones to target… • Number of customers and potential spending power • Ability to reach customers in the segment—and the cost to reach • Existing competition in the segment • Level of satisfaction with competitors offer • Predicted growth • Potential profitability • Barriers to entry

9. What What are we trying to sell? • The what—or product—can be a good, a service or an idea • Defined by intended use: business product is intended for a business purpose; consumer product is intended for consumer use • Rarely does a company sell a single product: typically a hierarchy • Product Item • Product Line • Product Mix

10. What What are we trying to sell? • The what—or product—can be a good, a service or an idea • Defined by intended use: business product is intended for a business purpose; consumer product is intended for consumer use • Rarely does a company sell a single product: typically a hierarchy • Product Item • Product Line • Product Mix

11. Where Where are going to sell our products? • This is the “place” (distribution) part of the marketing mix and it defines making your product available when and where customers want it • Typically includes: • Retail Stores • Non-store Retail • Vending • Direct (e.g., door-to-door; person-to-person) • Direct Marketing (call now operators are standing by, LL Bean) • Electronic • Online • HSN

12. When When are we going to promote? • Promotion=Communication by marketers that informs, persuades and/or reminds potential buyers (target market) of a product in order to influence their opinion or elicit a response • Elements include advertising, public relations, personal selling, and sales promotion • Main function of a promotional strategy is to convince target market to buy

13. Why Why are they going to buy our product? • We have a competitive advantage…

14. Why Why are they going to buy our product? • We have a competitive advantage…the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. • Typically includes one or more of • Quality • Rapid delivery • Low price • Superior service • Unique feature

15. Positioning By understanding the Who, What , Where, When and Why you are then best able to create a Positioning for your product/brand What are your key takeaways from the book…what are the things you must know in order to position your product/brand?

16. Positioning • Positioning is the place a product, brand or service occupies in consumers‘ minds relative to the competition • Generally speaking, a firm’s positioning tries to leverage its competitive advantage

17. Classic Differentiated Positioning Framework For ________________________ _________________ (Target segment) (Product/brand) is _______________________ (Most important claim/Unique Selling Proposition) among all __________________________________________ (competitive frame) because ____________________________________________ (support, reasons why, benefit)

18. Classic Differentiated Positioning Framework For Younger Men , Axe grooming products (Target segment) (Product/brand) Will make you sexier (Most important claim/Unique Selling Proposition) compared to all other grooming products(competitive frame) Because girls go crazy over it… (support, reasons why, benefit) http://www.youtube.com/watch?v=fDmRiw8XdDU

19. ILLUSTRATIVE EXAMPLE: ESPN Positioning For Serious Sports Fans, ESPNis the best at delivering sports information and entertainment among all media companiesbecause it enriches the lives of the fan through its authority, passion, humor and storytelling.

20. Positioning Example • For deadline dependent people, FedEx is the overnight package delivery service that is most reliable because of its sophisticated tracking technology. http://www.youtube.com/watch?v=wGoM_wVrwng

21. A Word on Papers • Better than most – usually never give anything above an A-/B+ on first paper • Grades ranged from B- to A- with 2/3 a B or B+ • My expectation is that papers will get better as semester goes on so I grade accordingly; and I give more weight to last paper than first • My criteria: is this Clear, Concise, Compelling

22. For next week: Pick a Brand - 1 Page Paper • How would you describe the positioning of the brand? • What is its competitive advantage • What are 2-3 key marketing messages in support of CA and positioning

23. Snack Food Segmentation Goldfish