(c) Copyright 2011 Tery Spataro

MARKETING PRINCIPLESMKT (BA) 450 E-MARKETING

Week 2

May 12, 2011

Tery SpataroEmail: spata425@regis.eduHome Phone: 303-554-4444Mobile: 917-554-8908Skype; teryspataroTwitter: @teryFacebook: facebook.com/teryspataroLinkedIn: Linkedin.com/ins/terys

(c) Copyright 2011 Tery Spataro

Today’s Activities

o Week 2 Assignment Review

o Definition of Marketingo Customer Analysiso Needs vs Wantso Week 3 Assignment

(c) Copyright 2011 Tery Spataro

Definition of Marketing

“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”

Source: American Marketing Association. (2007).

(c) Copyright 2011 Tery Spataro

Learning Topics

o Customer Analysis and Market Research

o Buying Behavioro Product: Goods and

Services, Brands, Warranties

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Customer Analysis & Market Research

• What types of customers are there?• Business to business• Business to consumer• Non profit customers

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Difference?

• Define Needs• Define Wants

• How do you buy?

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Seven Step to Consumer Decision Making Process

Need Recognition

Search of Information

Pre-purchase Evaluation

of Alternatives

Purchase

Consumption

Post-consumption

Divestment

Why they buy?

Paco Underhill Video

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Customer Analysis

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Consumer: Addison

Meet Addisono She’s 39 years old a VP for a fashion magazineo Income $70,000o She works 12 hour dayso Married once now singleo She still has problems using her blackberry but

loves her IPodo Serious multi-tasker, she’ll listen to internet radio at

the office, while reviewing the latest P&L and talking to her co-workers on IM.

o On her own time she uses the internet for email, IM, watching her favorite tv programs, and to find dates.

o She’s on Facebook

Reach Relevance Relationships

*Research derived from laddering interviews of 20 adult dark chocolate lovers across the US.

(c) Copyright 2011 Tery Spataro

Addison’s Salient Beliefs

Tastes good

Made by Hershey’s

Best way to spend a dollar

Grew up eating it Available everywhere

Her beliefs about :

Hershey’s Special Dark chocolateSpecial Dark is milk and dark chocolateSpecial Dark is mildly sweetSpecial Dark is a good valueSpecial Dark comes in many different linesSpecial Dark comes in different sizesSpecial Dark 45% CacaoSpecial Dark will remind me of childhoodSpecial Dark is well knownSpecial Dark has a recognized packagingSpecial Dark is made in PennsylvaniaSpecial Dark has natural antioxidants

Has Cacao

Salient Beliefs about Special Dark chocolateSpecial Dark comes in many different linesSpecial Dark 45% CacaoSpecial Dark comes in different sizesSpecial Dark is well knownSpecial Dark has a recognized packaging

Attitude towardsSpecial Dark

Comes in many different lines

Comes in different sizes

Has well known name

Recognized packaging

Blend of milk & dark chocolate

Hershey’s Special Dark

Has antioxidants

Made in the US

Peter, J. Paul, Olson, Jerry C. (2005). “Consumer Behavior & Marketing”. McGraw-Hill Irwin. exhibit 6.2 Relationship between Salient Beliefs and an Object and Attitude toward the Object. Chpt6, p. 142

Beliefs Attitudes Associations

*Research derived from laddering interviews of 20 adult dark chocolate lovers across the US.

(c) Copyright 2011 Tery Spataro

Consequences

Means-End Chain Conceptualization Assessment Strategy [MECCAS]

Self-satisfied

Price Happiness

HE

RS

HE

Y’S

SP

EC

IAL

DA

RK

Ingredients

Nurtured

Percent Cocoa

Texture

Feeling GoodTaste

Happy FeelingsStress Reduction

NurturingHelps the Heart

Health Benefits

*Research derived from laddering interviews of 20 adult dark chocolate lovers across the US.

Attributes Functional ValuesPsychosocial

Attributes Consequences Values

(c) Copyright 2011 Tery Spataro

ADILO Addison

• Busy office, lots of stress.• It’s only 3pm, Addison is an attractive woman

about 39 years old, yawns, she pours over the work she has to do while listening to internet radio.

• She decides instead of a coffee break she craves something more. She gets up rushes out the door to the corner deli. Of course she can get an apple, instead she surveys the candy treats at the counter and finds her favorite, Hershey’s Special Dark.

• She pays for the bar with the dollar left over from lunch that’s in her pocket. Carefully she tears open the brown wrapper to the golden foil she is most familiar with and breaks off a piece, puts it in her mouth, it slowly melts. She’s then transformed to the happy moments of her childhood.

Reach Relevance Relationships

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Elements of Creative Strategy

Key Message: “Happiness is only a bite away.”

Relevance: Ingredients and health benefits in print ads and web.

Show how percent of cocoa, taste, health benefits creates happiness and satisfied feeling.

Reach: Internet Radio, Facebook

Relationships: Sharing the experience on Facebook

Executional Framework

Elements of Strategy

Leverage Point:Feeling Good

Consumer Benefits:Taste

Message Elements:Percent of cocoa

Driving Forces:Self satisfied

Reach Relevance Relationships

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Reach Relevance Relationships

Addison’s Behavior

• Time of day• 3pm• Internet Radio• Facebook

REACH RELEVANCE RELATIONSHIPS

• Addison will need a snack

• If we satisfy her needs • Addison may spread• Awareness, Education, • Or Participate

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AwarenessEducateParticipate

PR – articles online and in consumer magazines on the healthy benefits of dark chocolate.

Advertising – Print advertising and Cable television commercials will tie in the elements of ad strategy focused: % of cocoa, taste, feeling good, satisfied.

Product placement on media.

DM On Wrapper – Create promotional giveaway for a drawing for a special week in at a spa in Mexico. Customers submit 5 Special Dark wrappers and are submitted to contest. Helps in building database.

Internet – Internet Radio ad to encourage desire. Promotion to encourage dark chocolate lovers to should the love by video promoted on YouTube.

Brand Special Dark website.

In Store – In store Hershey’s reps will give away Special Dark chocolates to customers in grocery stores.

Traffic to website from PR and online advertising.

Special Dark Customer Appreciation signups

Consumer recommendation

PR: To create awareness and educate on nutritional benefits of Special Dark.

Advertising: Educate, encourage participation.

Product placement will establish authority with a celebrity/character eats Special Dark.

DM On Wrapper: encourage usage and loyalty.

Internet: Encourage participation, awareness, education

YouTube promotion viral marketing.

In Store: Encourage choice and purchase

Addison Strategy

MeasurementRoleRecommendationsObjectives

Reach Relevance Relationships

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Product

• What are the elements need to communicate Product/Service?

• Exercise• 2 groups• Product - Printer• Service –

Legal Services

Whose the buyer?Customer Profile: Business to businessProfessional – Chief Operating OfficerMid-large – Software manufacturer