Transcript Customer
1 Introduction K4020 The Pill Cam How do you market this? http://www.youtube.com/watch?v=DAjlApH4qrs Page 2 Page 3 Why New Products Fail Common reasons for product failure Failure to understand consumers and competitors Too small a target market KODAK ULTRALIFE Lithium Power Cells, the world's first 9-volt lithium cells for consumer use Bad timing Low Carbohydrate Diets Page 4 The Low-Carb Trend Page 5 The Low-Carb Trend Page 6 Why New Products Fail Common reasons for product failure Poor execution of marketing mix Poor product quality Inappropriate differentiation No access to market Page 7 What is Marketing? To achieve organizational goals by determining the needs and wants of customers and delivering the desired benefits more effectively and efficiently than competitors “Creating shareholder wealth is not the purpose of the business. It is the reward for creating customer value.” Michael Tracy and Fred Wiersema in CFO magazine “Everything starts with the customer.” Lou Gerstner, CEO of IBM (1993-2002) Page 8 Marketing Decision System Competition Product Customers Company Price Promotion Place Intermediaries Complements Page 9 Course Objectives and Structure Identify Market Opportunities Set Strategy Formulate Marketing Program CUSTOMER SEGMENTATION PRODUCT COMPANY TARGETING PRICE COMPETITION POSITIONING ACQUISITIONRETENTION PROMOTION PLACE Page 10 Course Overview: Strategy Industry • Market definition • Market size/growth • Industry structure • Market segments Competition • Current and future • Strength/weakness • Current behavior • Future behavior Customer • Who buys • When, where, how • Benefit sought • Purpose of buying Company • Philosophy/Mission • Image/product fit • Objectives • Capabilities • Profitability Page 11 Course Overview: The 4Ps Product • Features • Benefits • Packaging • Testing • Selection Price •Skimming/penetration •Price discrimination •Setting price Place •Outlets •Channels •Coverage Promotions •Advertising -Measurement -Media planning •Sales promotion •Trade promotion Page 12 What You Can Expect Mix of learning environments lecture, discussion, assignments Useful tools and frameworks that are both quantitative and qualitative Interesting discussion and examples Page 13 Expected From You Class Participation Exams 1 and 2 Project (groups of 5) Page 14 15 Customer Analysis Overview Understanding customers and their buying behavior Sources of value to customers Economic value (EVC) Functional value Psychological value Measuring value Page 16 Customer Analysis Who are your customers? Buyers vs. users / Decision making unit (DMU) Customer’s customers Decision making and purchase process Who buys, when, where, .. How do they get information Purpose of purchase Awareness, Info search, evaluation of alternatives, choice Page 17 Value to Customers Economic Value Functional Value Psychological Value http://www.youtube.com/watch?v=c5Ljh8YvsgI Page 18 Economic Value to Customers (EVC) EVC is the maximum a customer is willing to pay EVC is useful for: Setting a price for a product/service Market segmentation Guiding new product development Page 19 EVC Example Page 20 Summary Customer analysis involves understanding what customers want and how they value the competitive offerings Three sources of values: Psychological Functional Economic Sustained competitive advantage is the result of creating and delivering customer value either better or more efficiently than competitors Page 21