Marketing

4/11/2021 Marketing
Marketing Virago Quarter 1
Your marketing strategy and decisions will revolve around your target market selection and the
products, prices, and advertising to serve these markets.
YOUR TASK
In the current quarter, you may want to design

multiple brands for your test market.
In the next quarter, you will have to price and advertise
these brands.
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4/11/2021 Brand Management
Brand Management Virago Quarter 1
One of your most important decisions in this quarter is brand design.
In the next quarter, your sales people will try to sell your products to the market. Their success,
and the success of your company, depends on how well you design each brand.
To attract customers, consider designing one or two brands for each target
segment. Ultimately, you will want a good assortment of brands. After you gain
some experience, plan to offer a good, better, and best model in your target
segments.
Before you design your brands, it would be wise to review your target customers'
needs.
Read about Brand Management in the Help le.
4/11/2021 Customer Needs
Customer Needs Virago Quarter 1
Understanding what customers value
The market research data focusing on customer needs can be very helpful. It allows you to
examine the costs and bene ts of potential products. However, this data is incomplete because
it does not tell you which speci c features each segment might want. Customers are more
concerned with bene ts than with features. It will be your task to determine which features will
deliver the desired bene ts.
YOUR TASK
To help you select the right features for your target market, review your customers' needs
and applications. The numbers within the table quantitatively indicate how important the
need is to that segment.
A rating of 110 or higher indicates that the need is important to the segment. Ratings below
100 might suggest the opposite. That is, low numbers could potentially affect customer
value in a negative way.
DECISION TIP
For each market segment, you can sort the needs by importance.
Customer value hierarchy
Remember that customers do not buy components or features, they buy bene ts. At a higher
level, these bene ts help users to accomplish their goals and to realize certain values or end
states.
It is your job to gure out how to deliver the value desired. A good way to start is to apply the
logic behind the means-end hierarchy. Take the most important bene ts desired by each
segment and speculate on which components or services will be necessary to deliver these
bene ts.
Desired End States
Personal and organizational goals (core values, guiding principles): "Ends" which are served
by the product/service "means".
Consequences
What the product does for the user (subjectively de ned): Realizations, bene ts, desired and
undesired outcomes, sacri ces, costs, etc.
Attributes
What the product is (objectively de ned): Features, activities, options, and parts.
The means-end hierarchy will be useful in designing your new brands. Understanding the
relationship between features and bene ts is a prerequisite to developing successful brand
designs.
To learn more about Market Research, consult the Help le: Market Research. You may also nd
it useful to read the Match-up Bene ts and Features section.
Customer Needs Virago Quarter 1
Customer Needs and Wants
Recreation Mountain Speed

Colorful 116 120 109
Fits rider's personality 116 113 116
Simple to use 121 102 69
Safety 121 112 113
Low price point 117 98 70
Sleek 104 83 119
Stylish 111 118 116
Easy to ride 124 100 102
Comfortable 124 95 101
Soft ride 115 89 87
Repair, parts, support nearby 119 121 120
Can handle rough terrain 111 128 82
Can stop quickly 114 123 110
Precise speed control-turns, hills 103 106 117
On-road and off-road capabilities 114 95 69
Can carry things 117 104 69
Durable 108 127 117
Feel young at heart 120 115 117
Can turn sharply 113 124 115
Light weight 115 121 133
High visibility 117 103 119
Easily handles change in incline 107 131 113
Speed 110 109 134
Shifts smoothly 118 118 118
Provides competitive advantage 98 117 124
Aerodynamic 80 88 122
Rider expertise required 103 123 126
Status symbol/exclusivity 111 121 116
Navigation assistance 115 117 118
Soften the impact of rough terrain 116 124 90
Web Customer Needs and Wants

Easy to navigate on web site 128 118 123
Security of my credit card/identity 135 123 124
Likes to buy on the web 121 122 114
Wants human sales reps/support 133 122 118
Able to track my purchase 119 124 115
Easy to make purchase on web 127 113 119
Recreation - Top 10
Easy to ride 124
Comfortable 124
Simple to use 121
Safety 121
Feel young at heart 120
Repair, parts, support nearby 119
Shifts smoothly 118
Low price point 117
Can carry things 117
High visibility 117
0 20 40 60 80 100 120
Mountain - Top 10
Easily handles change in incline 131
Can handle rough terrain 128
Durable 127
Can turn sharply 124
Soften the impact of rough terrain 124
Can stop quickly 123
Rider expertise required 123
Light weight 121
Status symbol/exclusivity 121
0 20 40 60 80 100 120
Speed - Top 10
Speed 134
Light weight 133
Rider expertise required 126
Provides competitive advantage 124
Aerodynamic 122
Sleek 119
High visibility 119
Shifts smoothly 118
Navigation assistance 118
0 20 40 60 80 100 120
Recreation - Top 6
Security of my credit card/identity 135
Wants human sales reps/support 133
Easy to navigate on web site 128
Easy to make purchase on web 127
Likes to buy on the web 121
Able to track my purchase 119
0 20 40 60 80 100 120
Mountain - Top 6
0 20 40 60 80 100 120
Speed - Top 6
0 20 40 60 80 100 120
4/11/2021 Use Pattern
Use Pattern Virago Quarter 1
Consider the use patterns of customers in each segment
Knowledge of a segment's applications is vital for selecting components and services that will
satisfy that segment.
YOUR TASK
In the Workspace, you will nd some information regarding how customers intend to use
bicycles. Each segment has indicated those applications that are the most important to it.
DECISION TIP
Pay attention to any application that has a value over 110. Applications with values under
100 might have a negative effect on customer appeal.
To learn more about Market Research, consult the Help le: Market Research.
Use Pattern Virago Quarter 1
Segments by Application

Recreation 129 115 106
Exercise 115 118 121
Relaxation 122 108 102
Fun 123 115 102
Adventure 112 129 117
Sport 81 115 129
Recreation - Top 5
Recreation 129
Fun 123
Relaxation 122
Exercise 115
Adventure 112
0 20 40 60 80 100 120
Mountain - Top 5
Adventure 129
Exercise 118
Recreation 115
Fun 115
Sport 115
0 20 40 60 80 100 120
Speed - Top 3
Sport 129
Exercise 121
Adventure 117
0 20 40 60 80 100 120
4/11/2021 Design Brand
Design Brand Virago Quarter 1
Brand design is one of the most di cult tasks in marketing.
Customers buy bene ts, but your brands are built from components. The challenge is to select
the components that will provide the desired bene ts and satisfy the customers’ needs and
uses.
YOUR TASK
1. To design a new brand in the Workspace, rst choose a name for your brand. The name
should convey the desired image of your company and product line.
2. Next, choose the brand type. In other words, choose the bike frame. Each frame has
been designed to meet the needs of the chosen market segment.
3. Finally, select the components to include in your brand. Choose those that you think will
satisfy your target segment. Keep in mind the bene ts that are desired by the segment,
how the product will be used (applications), and the price the segment is willing to pay.
DECISION TIP
It is recommended that you design several brands for the test market. In order to effectively
gauge your customers' reaction to your offering, you may nd it helpful to design two
different brands for each of the two segments you have planned to target at this time. You
may wish to design an extra brand(s) to serve a third segment as well. Entering the market
with multiple brands will reduce your risk and maximize the opportunity to learn from the
test market. Also, your sales outlet will be more appealing to potential customers if you have
a good selection of bikes to choose from.
Note the cost to design or modify a brand.
In the Workspace, as you select components, you will see the total materials cost. However,
remember that your production cost is more than the simple sum of the materials cost of each
component. It also includes labor and overhead. You will see the unit production cost decline
sharply as the sales volume increases.
4/11/2021 Design Brand
Design Brand Virago Quarter 1
Design New
Copy to Cost this Quarter to

Your Brands View/Modify Design New Delete Design/Modify
Vira-Go Fun 30,000
Vira-Go Hill 30,000
Vira-Go Fast 30,000

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4/11/2021 Marketing

Marketing Virago Quarter 1

In the current quarter, you may want to design

Brand Management Virago Quarter 1

One of your most important decisions in this quarter is brand design.

Read about Brand Management in the Help le.

Customer Needs Virago Quarter 1

Understanding what customers value

Customer value hierarchy

Desired End States

Customer Needs Virago Quarter 1

Customer Needs and Wants

Recreation Mountain Speed

Web Customer Needs and Wants

Recreation Mountain Speed

Simple to use 121

Feel young at heart 120

Repair, parts, support nearby 119

Shifts smoothly 118

Low price point 117

Can carry things 117

High visibility 117

Can handle rough terrain 128

Can turn sharply 124

Soften the impact of rough terrain 124

Can stop quickly 123

Rider expertise required 123

Repair, parts, support nearby 121

Light weight 121

Status symbol/exclusivity 121

Light weight 133

Rider expertise required 126

Provides competitive advantage 124

Repair, parts, support nearby 120

High visibility 119

Shifts smoothly 118

Navigation assistance 118

Wants human sales reps/support 133

Easy to navigate on web site 128

Easy to make purchase on web 127

Likes to buy on the web 121

Able to track my purchase 119

Security of my credit card/identity 123

Likes to buy on the web 122

Wants human sales reps/support 122

Easy to navigate on web site 118

Easy to make purchase on web 113

Easy to navigate on web site 123

Easy to make purchase on web 119

Wants human sales reps/support 118

Able to track my purchase 115

Likes to buy on the web 114

Use Pattern Virago Quarter 1

Consider the use patterns of customers in each segment

Use Pattern Virago Quarter 1

Recreation Mountain Speed

Design Brand Virago Quarter 1

Brand design is one of the most di cult tasks in marketing.

Note the cost to design or modify a brand.

Design Brand Virago Quarter 1

Copy to Cost this Quarter to

Vira-Go Fun 30,000