Transcript DO NOW
DO NOW DROP BOX – Unit 2 Drag n Drop Market Segmentation Unit 1 Review Marketing Strategy Understand the market needs, wants & buying power. Segment the Market Select a Target Market DEVELOP A VALUE PROPOSITION Marketing Strategy Marketing Concept • Customer Lifetime Value • Customer Relationships • CRM Marketing Timeline (History) • Product Orientation • Sales Orientation • Customer Orientation • Relationship Orientation Marketing Functions The goal is have the biggest piece of the _____________________ Hint: Highest sales volume in the same industry. Value Proposition • A company must decide how it will serve targeted customers • How it will DIFFERENTIATE and POSITION itself in the market place • A brand’s Examples of Value Props • Facebook • YouTube • BMW • New Balance’s Minimus Formatting a Value Prop Format: For [target market] that is looking for [needs, wants, problems], our product provides [value, solution]. By offering: [list benefits that support the value]. Formatting a Value Prop For teenagers that want to be stylish and cool without spending a lot of money ……… Converse provides a fun, casual shoe that will make you part of the cool crowd. It offers: A variety of colors to express your sense of style. And at only $29.99 a pair, you can afford to have a different shoe for every day! What is your VALUE PROP? • Imagine you are in a college interview. The interviewer asks: “Why should we offer you a place at Ivy League University?” How would you answer the question in three sentences? FIVE WINNING VALUE PROPS • #1 MORE FOR MORE • Upscale = High Cost • Signifies high quality and gives prestige to the buyer • Ex. Mercedes, Rolex, Four Seasons FIVE WINNING VALUE PROPS • #2 MORE FOR THE SAME • Attacks competitors in the more for more sector • A brand with comparable quality for a lower price • Ex. Lexus did a promotion with side by side comparison with Mercedes FIVE WINNING VALUE PROPS • #3 THE SAME FOR LESS • Everyone likes a good deal • Stores such as Walmart, Best Buy, Petsmart, David’s Bridal & DSW use this positioning • They offer same brands as dept. stores at discounts based on superior buying power and lower cost operations FIVE WINNING VALUE PROPS • #4 LESS FOR MUCH LESS • Products that offer less and therefore cost less • Consumers will gladly give up “bells and whistles” for a lower price • Ex. Hotels with no pools, dollar store FIVE WINNING VALUE PROPS • #5 MORE FOR LESS • “The winning prop” • When Home Depot first opened they had the best product selections at the best prices compared to hardware stores • Very difficult position to sustain ( cannot have the best of both worlds” • What happen to Home Depot when Loews opened? Every company must design their value proposition based on their target market. Let’s take a look at the product you will be creating a marketing strategy for! WHAT IS A MAN BAG?!