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What is Marketing?

Sellers Market

Production: Focus on Company

BuyersMarket

Marketing: Focus on Customer

and Competition

Connected
Community

Experience: Focus deeper on

customer experiential value

Economic
Uncertainty
(Madoff)

Trust: Focus on genuine

customer valueRESET,
Discipline, flexibility

Production
Orientation

Marketing
Orientation

Experience
Orientation

Trust
Orientation

Persuade customer to
want what firm has

Persuade firm offer

what the customer
wants

Managecustomers
entire experience
with the firm

Prioritize building a
relationship based
on trust &
discipline

Generic
Product

Differentiated
Product/Service

Experiential
Value

Genuine
Value

Competitive Advantage:
Lowest Cost Quality & Service
Experiences
Trust
Customer Knowledge Transformation;
Customer as
co-creator of
Profitability Drivers:
value
Market Share Customer Share
Customer Loyalty

Buzz
Discipline
W-o-m, Referrals

Principle of Customer Value

Principle of Differentiation
Principle of Segmentation, Targeting, and
Positioning

Product
Place
Promotion
Price

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Strategic Marketing
Find your niche and offer value better than th
competition

Know our markets

Customers have the final say
Commit to being first in the markets we
serve
Deliver total quality to guarantee customer
satisfaction

* Adapted from CSC Index

higher

INFERIOR
VALUE

Premium

fair-value line

Parity

Relative Costs
to Customer
Economy

SUPERIOR
VALUE

lower

inferior

superior

Relative Perceived
Benefits

Operational
Excellence

Operational
Competence
Product
Differentiation
Performance
Superiority

* Adapted from CSC Index

Customer
Responsiveness
Customer
Intimacy

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Segmentation and Targeting

Positioning Process
Segmentation

Identifyvariables
thatallowoneto
segmentthemarket

Targeting

Evaluatethe
attractivenessof
eachsegmentand
chooseatarget
segment

Positioning

Identifypositioning
conceptsforeach
targetsegment,
selectthebest,and
communicateit.

IterativeProcess.

Segment 1
Segment 2

Attribute 1
Low PRICE

Attribute 2
BEAUTY

Attribute 3
DURABILITY

Market segmentation is the process of

dividing a market into distinct subsets,
where any subset may conceivably be
selected as a marketing target to be
reached with a distinct marketing mix.

I. Characteristics of the
Customer
II. Benefits Sought
III. Systematic, Product-Related
Behaviors
purchasing behavior
by channel

regional segmentation
zip clustering

distinct marketing strategies created for similar

types of neighborhoods stretched across the nation
e.g., PRIZM

What makes a segment attractive?

Balancing Segment Attractiveness with our
Capability.
Continuously monitoring whether the actual
buyers match the target segment.

Segment Size
Growth of Segment
Value of Segment ($)
Stability

Current Company position within

segment
Ease of entry into segment

Ease of competitive entry into segment

Number and strength of competitors

SegmentAttractiveness
LOW

HIGH
HIGH

Competitive
Strength

LOW

Perfect!

Domination
is essential.

ProfitPotential
Beware
of the
shake-out.

Stay
away!

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What is a brand?
Brand Positioning

Formally A proprietary trademark for a

specific product or service
Conceptually A contract from the
company to its customers; A promise of
specific benefits, quality, and value. A
relationship.

Apple Computers offers . the best

personal computing experience to students,
educators, creative professionals and
consumers around the world through its
innovative hardware, software and Internet
offerings.
Positioning Statement
Target Segment
Point of Difference
Frame of Reference

A positioning statement defines the value

proposition of product to the target market.

Target Market [For Whom]
Point of Difference [Reason to Buy]
Points of Parity [Frame of reference]

Positioning is implemented through all

elements of the marketing mix: product,
price, promotion, place.
Should focus on a few key benefits [unique
selling proposition]
Position must be defensible.
Positioning requires making choices.

Are POD desirable to the customer?

Is POD Relevant (ex: consumers didnt care about

clear cola, or unbreakable chips)
Is POD Distinctive? (distinctive and superior )

Can you deliver the POD to the customer?

Feasibility (affordable? Possible? E.g., can airlines

deliver on-time arrival?)
Communicability (evidence to communicate?)
Sustainability (internal commitment, difficult to
attack; must be consistent at any point in time
andover time)

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Brand Mantras
The Elevator Speech

Portrays brand associations and responses

for a target market. Shows how it is actually
perceived.
Ask consumers What comes to mind when
you think about V8?
Then brand associations are grouped into
categories.

Set of abstract concepts or phrases that

characterize the five to ten most important
dimensions of the mental map of a brand
Relate to points-of-parity and points-ofdifference

Mental map Core brand values Brand

mantra

An articulation of the heart and soul of the brand

Similar to brand essence or core brand promise

Short three- to five-word phrases that capture the

irrefutable essence or spirit of the brand positioning
and brand values
Considerations
Communicate
Simplify
Inspire

The brand functions describe the nature of

the product or service or the type of
experiences or benefits the brand provides.
The descriptive modifier further clarifies its
nature.
The emotional modifier provides another
qualifierhow exactly does the brand provide
benefits, and in what way?

Used internally to guide decisions- what the

brand should and should not be associated
with.
Brand Mantra Considerations

Communicate: define the business and boundaries;

clarify what is unique about the brand
Simplify: Memorable, short, vivid, and crisp.
Inspire: Have higher level meaning from employees
and consumers.

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