Transcript Keys of Marketing - Fox School of Business and Management

Jaine Lucas, Executive Director, IEI
Branding and Marketing Executive
Key to Marketing
• Knowing the needs & wants of customers
• Building a strategy to serve customers
External Opportunities
& Threats
Know the niche market you
are uniquely qualified to
serve
Niche
Internal Strengths & Weaknesses
Marketing and the Purchase Decision
Target market
Awareness
Marketing Programs (Including Social Media)
Field Sales People
Mass Marketing
Public Relations
Word-of-Mouth
Consideration
Perceived Need
Referral Evaluation
Promotions
Trials
Purchase
Real need or want
Emotional “Hook”
Impulse
Marketing Strategy
• Marketing strategy and actions must promote the
company’s core values and “Brand” to be aligned
with the company strategy.
• Marketing initiatives and sales activity shape a
company and brand strategy by getting market
feedback
– Marketing strategy is important because it ties
the company to its customers in a logical way
– Sales activity/”feet on the street” closes the loop
Marketing Plan
• Detailed plan of who you are targeting
to purchase your product or service, at
what price, through which channels, and
with the support of what kinds of sales
and advertising
• Includes a strategy, a communications
mix, methods for measuring success,
attention to staffing/resources, and costs
• Included in the marketing and “go to
market” strategy section of the business
plan
What is a Brand?
• A brand is the sandbox that your company
“plays” in
• It is a company’s “Personality,” “Values”
and “Reputation”
• It is a living and breathing entity
• Great brands are no accident
A Brand Creates Value
Top Two Brands Globally
• Coca Cola & Apple tops
• Amazon, Samsung & Oracle have
grown their brand value by 20% YOY
• Top ten losers: Dell, Thomson
Reuters, Honda, MTV, Citi, Yahoo,
Moet & Chandon, Nokia, Goldman
Sachs, Blackberry (39% decline)
• Designer Brands
2012 Top Interbrand Brand Values
Why Managing Your Brand Matters
Branding, by its very
nature is not optional.
If you do not position
yourself in people’s
minds, they will do it
for you. …
Peter Drucker
Why Your Brand is Important for Sales
• People need to be aware of who you are
• People need to willing to consider buying
from you (“positively predisposed”)
• You need the tools to “close” the sale
• You brand addresses all three of these
phases of the sales process
Who Defines Your Brand?
• Your Brand is defined by how well you
deliver against customer expectations and
perceptions, that is… “THE PROMISE”
Who Influences Your Brand?
•
•
•
•
•
•
•
•
•
•
Customers
Sales
Marketing
Customer Service
Delivery People and Distributors
Workers
Receptionist
Product Performance
Competitors
Essentially… EVERYONE
Two Views of UPS
Jean’s
• They’re great!
• No problems with
service.
• Donna English.
• She tracks me down.
• I love them!
Rhonda’s
• They’re terrible!
• Left stuff in the rain.
• They’ve lost deliveries.
• Different driver every
day.
• I hate them!
Brand Loyalty is created or lost based on
Personal Experience
The ABC’s of Good Branding
A
Is for Appropriate
Know Your Audience
Cultural Communication Issues
What
you say
Content
Information explicitly
stated: Details, data,
words, images
What you do
How you do it
Context
Information implied by
location, manner, behavior
How OTHERS
perceive
what you say,
what you do,
and how
you do it.
Based on
THEIR Values,
Customs,
Frame Of
Reference,
Assumed Rules
Two Definitions Of Image
• The Visual Image:
The visual components of your Brand Identity: logo,
web site, signage, marketing materials, product
design
• The Contextual Image:
An impression created by your behavior and
appearance; your reputation
Visual Image is NOT Just the Logo
• Everything that is used around the
logo also contributes to your
“image”
– Mailers, Printed Brochures
– Web layout, components,
interface
– Color schemes, Fonts
– Graphics & Packaging
– Flow charts
• Are all of these consistent with your
brand vision?
Think the Intangibles Don’t Matter?
• At the drive-in teller at the bank, the sign has
withdrawal spelled incorrectly. The customer thinks,
“If they are that careless with their signs, how will
the treat my money?”
• MacDonald’s – OMG! & YUK!
Low-Cost Strategy
• Problem of even lower-cost competitors
• Difficult to keep costs down – especially
for small firms
• Reduced flexibility, seriously reduced
margins
• Finding markets where there is space
for a low-cost competitor
• Establishes your brand as “low-cost” =
“low quality”
Product/Service Differentiation
• Differentiate what is sold
– Branding, quality, innovation,
style and image
• Two common patterns:
– High margins/low share
(Mercedes): focus on status,
production efficiencies less
important
– Slightly lower margins but high
share (many branded items like
Coca-Cola, Nike)
• Works by reducing rivalry, substitutes
& buyer power
• Main objective of differentiation:
make the short list
Market segmentation/focus
• Serve a small segment
• Focus refers to following the trends of
an audience
– Oshkosh emergency trucks
– Specialty steel
– Micro breweries
– Focused low-cost/low-price
• Works by reducing rivalry, reducing
substitutes
• Main objective: redefine the market
served
Product Positioning
High
Q
U
A
L
I
T
Y
Medium
Low
Low
Medium
PRICE
High
Exercise:
Choose and defend a marketing strategy
• Low Cost/Low Price
• Product Differentiation
• Market Segmentation
(Focus)
• Your own…why?
Marketing Mix
• The right mix of marketing and sales support
elements that...
– Supports your strategy
– Fits your capabilities
– Doesn’t break your budget
•
•
•
•
•
•
•
Social media
Guerilla tactics
Shared advertising
Public relations
Networking
Events
Etc.
Promotion
“Any form of persuasive communication designed to inform
consumers about a product or service and influence them to
purchase these goods or services.”
Direct selling: Mail, internet, sales representatives
Promotions: Try it, you’ll like it
Advertising: Direct response, targeted, blanket
Public relations: Word of mouth (events), media coverage,
editorial content
• Marketing communications
• Networking
• Social media
•
•
•
•
Marketing Communications
•
•
•
•
•
•
•
Web Sites
Blogs
Newsletters
Brochures
Catalogs
White papers
Press Releases
“Brand Package”
• Business cards
• Business plans
• Annual report
• Logos
What’s Happening in the Market?
•
•
•
•
•
•
•
•
•
Customers can hardly hear you
>1,500 marketing messages a day
Customers are skeptical
Everybody is claiming “the best ____”
Customers are connected
Electronic communication
Professional meetings
Buyer are more educated
And have more choices
Value Proposition
•
•
•
•
What you have
Why it’s better than the competition
Clear statement of benefits to the customer
Need to understand your target market
• Needs
• Wants
• Includes:
• Unique selling points
• Quantification of the value to the customer
Price setting:
A make or break decision
• Assess demand
– How sensitive will customers be to price
changes?
• Analyze competition
– What’s the going price?
– Will competitors respond to a price cut?
• Set pricing objectives
– Target return, market share, long-term
profits, quick investment recovery, etc
The ABC’s of Good Marketing
U
Is for Unique
Cows, after you’ve seen them for a while, are boring.
They may be perfect cows, attractive cows, cows with
great personalities, cows lit by beautiful light, but
they’re still boring.
A Purple Cow, though. Now that would be interesting. (For
a while.)
– Seth Godin, 2002
Networking
Traditional
– Chambers of commerce
– Business associations
– Trade associations
– Customer groups
– Volunteer work
– Events
On-line Social Networking/Media
– Facebook
– Twitter
– Linked In
– Many more!!
What is Social Media?
Social Media is a conversation supported
by online tools that leverage human
relationships to carry messages
Who uses social media?
Facebook
Founded in 2003, originally called “Facemash”
Largest SMS - over 1B active users who
spend eight hours a month (4 times google)
Over 250 million photos
137.6 million unique visitors per month (In the USA
alone)
• 54% of monthly users access it via a mobile device
•
•
•
•
•
•
LinkedIn
• A business-oriented network founded in 2002
• Currently has 175 M members in 200+ countries
• “Gated Access Approach” and multi-tiered
connections
• LinkedIn Groups feature allows users to establish
new business relationships by joining alumni,
industry, or professional and other relevant
groups.
Twitter
• Founded in 2006
• Text posts of 140 characters or less called
“tweets”
• Tweets can contain links and pictures
• Twitter now has more than 140 million active
users, sending 340 million tweets every day
• Twitter users send over a billion tweets every 72
hours
• Twitter should see 250 million active users by
the end of 2012
Social Media Applications
Create brand awareness
Build or manage online reputation
Research competitive intelligence
New customer service tool
Recruiting initiatives
Business development tool
Social Media Etiquette
• Build trust-based relationships
• Talk about/comment on your sector, don’t
just sell, sell, sell
• Read others’ opinions and blogs,
comment
• Listen more than you speak
• Don’t say anything you wouldn’t say in
public
Let People In!
• Use photos, video, commentary and text to show people all
angles of your business.
• Keep the content on a blog.
• Tag photos and videos on YouTube and Flickr
• Regular communications can keep people coming back
for more, give potential clients an inside peek at your
process and document your project's lifecycle.
Sales promotions
•
•
•
•
•
Coupons & Discounts
Trade Shows
Samples
Contests
Free giveaways
– Key chains, mugs, calendars etc.
Advertising
• Newspapers, magazines, radio, internet,
television, yellow pages, direct mail
• Analyze the strengths & weaknesses
of the medium
– Which medium will target your customers?
– What is your advertising budget?
– What is the cost per million (CPM)?
Publicity
•
•
•
•
•
•
•
Articles in newspaper
Interview on radio or television
Coverable events
Newsletters
White papers
Speaking engagements & white papers
Volunteer (boards & local committees)
FREE, powerful, hard to control
Guerilla Marketing
• Used by entrepreneurs and small business
• Targeted, low-cost strategies that change the rules of the
game
• Focus on relationships
• Examples:
– Product: Midwifery, punk music – both embedded in
movements
– Price: Free web services (to drive advertising)
– Promotion: message in a fortune cookie
– Place (distribution):with Donald Trump, celebrity
endorcements, sports figures
The ABC’s of Good Branding
B
Is for Believable
It’s All About Expectations
Promise less … Deliver more
Make Your Message Memorable
• Make it easy for your customers to
become your best Sales People
• Develop a Story that is easy for people
to remember and repeat
• Find an “emotional connection”
• Pay attention to the “implicit” message
– the context, the body language
Blowing the Branding:
• Bad names
– Alu-Fanny foil wrap (France)
– Atum Bom tuna (Portugal)
– Happy End toilet paper (Germany)
– Pschitt lemonade (France)
– Zit lemonade (Germany)
• Clairol, a hair products company, introduced
the
"Mist Stick", a curling iron, into Germany only to
find out that, in German, “mist” is slang for
manure.
Lost in Translation
• Electrolux, a Scandinavian vacuum manufacturer, used this ad
in the U.S.:
"Nothing sucks like an Electrolux."
• The Dairy Association's huge success with the campaign "Got
Milk?" prompted them to expand advertising to Mexico. Their
Spanish translation read:
"Are you lactating?"
• In Italy, a campaign for "Schweppes Tonic Water" translated
the name into the much less thirst quenching
"Schweppes Toilet Water."
Lost in Translation
Ke-ke-ken-la
ko-kou-ko-le
• The name Coca-Cola in China was first
rendered as Ke-ke-ken-la.
• Unfortunately, the Coke company did not
discover until after thousands of signs had
been printed that the phrase means "bite the
wax tadpole" or "female horse stuffed with
wax" depending on the dialect.
• Coke then researched 40,000 Chinese
characters and found a close phonetic
equivalent, ko-kou-ko-le, which can be
loosely translated as "happiness in the
mouth."
The ABC’s of Good Branding
C
Is for Consistency
Monitoring
Keep monitoring your
marketing to make sure that
your images, messages, and
value stay consistent!
Messages…
• Can you hear me now?
• How do you spell relief?
• The Nightime Sniffling Sneezing Coughing Aching
Stuffyhead Fever So You Can Rest Medicine.
• We bring good things to life/Imagination at work
• You’re in good hands with …
• You’re fired!
Building the “Buzz”
• Fundamentals have to be in place:
• The right product and service
• You need an interesting story that
other people can remember and
repeat
• You need to be visible and
recognizable in whatever you do
• Keep your customers involved
Placement/Distribution
• The “bridge” to reaching customers
• Sales Channels
– Distributors, retailers, value added resellers
• Issues/norms:
– Sales cycle (time of year, length)
– Expected materials, order forms, support, etc.
– Sales force implications
– Inside vs. outside sales people
– Quotas and territories
– Compensation and commissions
– Coverage
Effective Distribution
– Complementary, strategic channels
– Clear objectives for each channel that facilitate
measures of success
• “Increase number of stores carrying our product by 25%”
• “Keep 90% of our current customers this year”
• “Increase sales volume to 100 largest accounts by 20%”
– Budget & timeline
– Detailed outline of required logistics
– Sensitive measures of success, and methods for
absorbing and adjusting to data
Values-Led Marketing Mix
“ Values-led marketing…promotes
products and brands by integrating
social benefits into many different
aspects of a business enterprise
- Ben & Jerry’s
– Product: Organic ingredients
purchased from alternative suppliers;
creative, recyclable packaging
– Pricing: Premium with lots of
giveaways & donations
– Placement: Regional, country stores,
youth scoop shops
– Promotion: Music festivals, free
samples, advocacy, public relations
QUESTIONS?
Contact Info:
[email protected]
REMEMBER ~ BYOBB
plans are due in March!!