Transcript Architecture lecture

Who am I?
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Key Concepts:
The Marketing Concept
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Marketing should focus first on
identifying the needs and wants of the
consumer.
Market-driven companies include Dell,
Harley-Davidson, Intel, UPS.
Two steps of the marketing concept:
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Determine customer needs and wants through
research.
Develop, manufacture, market, and service
goods that fill those needs and wants—solve
customers’ problems.
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Key Concepts:
Differentiation and Competitive
Advantage
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A brand’s competitive advantage is where it’s different
from its competitors and superior in some way.
In marketing, this concept is called differentiation.
Areas of differentiation include:
 Price
 Design
 Performance
 Distribution
 Brand image
 Reliability (Maytag’s lonely repairman)
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Key Concepts: Added Value
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Added value can come from
differentiation
Ways to add value:
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More convenient to buy
Lower price
More useful features
Higher quality
Status symbol
More knowledgeable employees
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Why do you spend more here?
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How Does Home Depot add value?
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Key Concepts: Branding
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Branding is the way marketers create a
special meaning for a product.
Brand image is based on communication and
on the consumer’s personal experiences with
the product.
Brand Equity refers to the financial value
based on the reputation and meaning the
brand name has acquired over time.
Principle:
Effective branding transforms a product by creating a
special meaning based on an emotional connection.
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Tiffany’s-Special Meaning?
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9 2-***
Table 2.1
Most Valued Global Brands
Brand
Market Value
($ Billions)
1. Coca-Cola
2. Microsoft
3. IBM
4. General Electric
5. Intel
6. Nokia
7. Toyota
8. Disney
9. McDonald’s
10. Mercedes-Benz
$67
$57
$56
$49
$32
$30
$28
$28
$28
$22
Source: Interbrand Group; quoted in “Best Global Brands,” Business Week,
August 7, 2006, p. 54. Reprinted with permission.
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A Motorcycle is a Motorcycle…
But a Harley is Something
Different
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When I say Marlboro…
What do you think of?
 What images?
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Something you’ve probably
never seen
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A cigarette TV ad
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