Successful Marketing Strategies Part 1
Economic Empowerment FellowsOctober 2014
Today’s Agenda
• What is Marketing?• Why do organizations need marketing?• What are the critical marketing
decisions for success?
What is Marketing?
• Evaluation of trends and opportunities• Deep insights about customer needs and
value• Knowledge of competitors• Segmentation, targeting, and positioning• Effective use of Product, Price, Place, and
Promotion – the “4 Ps”• Effective relationship management
strategies
An Integrated Marketing Viewpoint
• Be RESPONSIVE to customers
• Provide RELEVANCE to customers
• Develop RELATIONSHIPS with customers
• Capture RETURNS for the organization
Why do Organizations Need Marketing?
• To create awareness of products and services
• To influence the perceptions of the organization among key constituents
• To ensure that once the hard work of service and product development is done, those services and products will be effectively used (stay in business)
Three Levels of Marketing Decisions
• Strategic: Proactive decisions to chart the company’s efforts in the market– Segmentation, targeting, positioning
• Functional: – 4 Ps – R&D/Marketing interactions– Moments of truth (influential interactions between customer
and brand)
• Tactical– Build a Website – Attend trade shows – Distribute through outdoor markets
Strategy decisions are VERY difficult
• Feels risky to “narrow your options” • Why not cater to everyone’s needs?
The Flip Side:
NOT narrowing your options means spreading your resources too thin
Catering to everyone means meeting no customers’ needs particularly well
How does your market function?
How should you prioritize?
1. What is the product being considered?2. What market segments exist and what are
their needs?3. What segment will you focus on and why?4. How do product attributes lead to benefits
needed by customers?5. Which product attributes/marketing
actions are most important for creating a competitive advantage? [Tomorrow]
Executional Framework
Converting Product Attributes
ProductAttributes
CustomerBenefits
CoreValue
Attributes Benefits Personal Values
Low fat Healthy Self-respect Wisdom
Calcium Healthy bones Comfortable life Wisdom
Ingredients Good taste Pleasure Happiness
Vitamins Enhanced sexual ability
Excitement Fun Pleasure
An example: Milk
Benefits/ Segments Table
SegmentA
SegmentB
Segment…
Segmentn
Benefits 1 **Important
----- ** **
Benefits 2 *Valued
----- *** **
Benefits …
***Critical
** *** **
Benefits n ----- ----- *** *
WHAT IS CUSTOMER VALUE? [From the Customer’s Perspective]WHAT IS CUSTOMER VALUE?
[From the Customer’s Perspective]
Value
- Sacrifice
Benefits
Determinants of Delivered Value
Totalcustomer
benefit
Totalcustomer
benefit
Totalcustomer
cost
Totalcustomer
cost
Customerdelivered
value
Customerdelivered
value
Image benefitImage benefit
Personnel benefitPersonnel benefit
Services benefitServices benefit
Product benefitProduct benefit
Monetary costMonetary cost
Time costTime cost
Energy costEnergy cost
Psychic costPsychic cost
Using the Kano ConceptSatisfaction
Dissatisfaction
Low Level of Attribute
High Level of Attribute
“Delight” Linear
Spoken vs. Unspoken“Expected”
Supply Chain for Auto Industry
SuppliersCar
ManufacturersCar
Dealers Customers
-raw materials-components-production equipment-services
-personal consumption-business use (fleets, etc.)
© Mohr, Sengupta, Slater 2009
Developing Customer Insights
◦Ask customers; ask non-customers; ask competitors’ customers
◦What am I doing well?
◦What could I be doing better? (differently?)
◦What could I do differently to better meet your needs?
◦How is their business going?
◦If you could make one of their problems go away, what would it be?
◦Customer visits
◦Listening
◦Observation
◦Customer satisfaction studies
What are your top three business strategy and/or marketing challenges / questions?
• How do customers make decisions? [touch points]
McKinsey Quarterly, 2009/2012
Successful Marketing Strategies Part 2
Economic Empowerment FellowsOctober 2014
Today’s Agenda
• What are the critical marketing decisions for success?– Segmentation and Targeting– Positioning– Value Propositions– Communicating to Target Audiences
For your organization:• Briefly describe how your products/
services are positioned(compared to competitors) for your customers/clients
• What are your top three business strategy and/or marketing challenges/questions?
• How do you create awareness of your company with your customers?
• How important is your online presence/website to your organization/why?
Market Strategy: Key Strategy Decisions
Who are my
customers?
What value do
I offer them?
How can I create
and deliver that value?
The StrategySweet Spot
Part 2: Key Strategy Decisions – Positioning & Communication
Discussion #1: Competition & Competitive Advantage
Page 8
Multi-Attribute Model with Competition
Our company
Comp 1 Comp 2
Scalability (8) 10 5 5
Security (6) 8 5 6
Ease of Use (7) 3 6 8
(paren) = importance Numbers = scores (10 = highest score)
Discussion #2: Positioning How are you currently positioning your product/ service? [Choose one product]
Page 9
AOur Points
of Difference
BPoints
of Parity
D CTheir points
of difference
Urbany, J. and Davis, J. “Strategic Insight in Three Circles” Harvard Business Review Nov. 2007
E Customers’
Needs
F Company’s Offerings
G Competitor’s
Offerings
Strategic Insight to Positioning
Sustainable Competitive Advantage
• Advantage over competitors• Gained through superior capabilities
(core competencies)• Gained through unique product benefits
or price• Providing greater customer value
Discussion #2: Differentiation and Value Propositions Select the most commonly purchased alternative (competitor) to your product. Does your organization have an advantage over this competitor? What is it? Is it a sustainable advantage?
Page 10
Value Proposition: Drives the Communication Strategy
• Value Propositions: – Capture the essence of what problem
you solve and how you solve it (relevance);
– Are compelling: evidence; data; testimonial
For <target audience>,
who <emotional benefit>,
the <value offering> provides <key functional/economic benefit(s)>
that is <point of differentiation>
For <target audience>,
who <emotional benefit>,
the <value offering> provides <key functional/economic benefit(s)>
that is <point of differentiation>
The Value Proposition
Discussion #3: Delivering on the Value Proposition Promise Proof Points: Reasons to Believe
Page 11
Proof Points: Reasons to Believe
• Provides Relaxation & Enjoyment– Room is 25%
larger– Pool/whirlpool– Thoughtful
amenities (in-room hair dryer)
• Enables Productivity– High speed
Internet– Small meeting
room– Express check out– Business services
For your organization:• Briefly describe how your products/ services are
positioned(compared to competitors) for your customers/clients
• What are your top three business strategy and/or marketing challenges/questions?
• How do you create awareness of your company with your customers?
• How important is your online presence/website to your organization/why?
Discussion #4: Other Marketing Factors: Communication How are you currently creating awareness for your product/ service?
Page 12
Communication Considerations
Now, think about marketing communications from an efficiency perspective:
Objectives (awareness, image, leads, inquiries)Target Market
Wasted coverageMeasuring performance/effectiveness
Monitor your online presenceMonitor your competitors’ online presence
[Inbound Marketing by Halligan and Shah, 2010]
Do a break-even analysis on the cost of the campaign
Deliver on moments of truth (touch points)!!
Discussion #5: Being Strategic about Marketing Communications Answer these questions:
1) Your target audience?
Page 13
• What is the product or service or idea?• Who/what is the competition?• Who are we talking to? [Target audience]• What customer need/problem do we address?• What do we want the customer to do/ how do we
want the customer to respond? [Objective]• What does the customer currently think of us?• What one thing do we want them to believe?• What can we tell them that will make them
believe this? [Proof points; support]• What is the theme/ tonality of the
communication?
Communication Questions (this is a Creative Brief):
What are your top three business strategy and/or marketing challenges / questions?
• How can you strategically utilize social media?– Assess: Are we making the right investments in
products/services, markets, campaigns, employees, partners?
– Segment: Are we reaching the intended audiences—and are we listening?
– Relate: What is driving social media activity, behavior and sentiment?
– Discover: What new ideas can we discover?
(from IBM White Paper, 2013)
Best Practices in Marketing Today
• Content marketing – “Thought leadership”
• Online and social media marketing – Who, why, strategy, results[Inbound Marketing by Halligan and Shah, 2010]
• Triple Bottom Line:
– Social Responsibility – Environmental impacts– Organization’s Goals; e.g., Profit
Content marketing is a marketing technique of
creating and distributing valuable, relevant and
consistent content to attract and acquire a clearly defined audience – with the objective of driving profitable customer
action.
(Definition from the Content Marketing Institute)
What is Content Marketing?
• 80% of business decision makers prefer to get company information in a series of articles vs. an advertisement– 70% say content marketing makes them feel closer to
the sponsoring company– 60% say that company content helps them make better
product decisions.
“Think of this – what if your customers looked forward to receiving your marketing? What if when they received it, via print, email, website, they spent 15, 30, 45 minutes with it?”
(from contentmarketinginstitute.com; results from Roper Public Affairs research)
Importance of Content Marketing
Create Content Simply and Quickly
• Blog posts• White papers (
http://www-01.ibm.com/software/analytics/solutions/customer-analytics/social-media-analytics/)
• Videos• Webinars• Podcasts• Webcasts• Stories on website (http://www.umt.edu/)
• Stories for publicationshttp://contentmarketinginstitute.com
Learning about Content & Storytelling from Coca-Cola
https://www.youtube.com/watch?v=LyDf-twhpCo
Learning about Content & Storytelling from Coca-Cola
https://www.youtube.com/watch?v=LyDf-twhpCo
Did you learn these marketing principles?:• Be responsive; Develop relationships; Deliver
relevance• Convert product features to customer benefits• Analyze customer-perceived value:
Benefits/Sacrifice• Understand customer “pain” points and
expectations• Diagram the decision journey: From Trigger to
Repeat Purchase• Determine the role of partners/collaborators• Position and create a Sustainable Competitive
Advantage• Write a compelling Value Proposition &
Deliver on the Promise!• Be strategic about Marketing Communications• Get MORE out of Social Media• Learn to tell stories
Summary- Essentials For Marketing Success
• Identify key market segment(s) – rather than diluting efforts across multiple
segments • Articulate a compelling value proposition • Have internal “house in order” prior to
advertising• Have staying power with marketing
campaigns• Measure and assess returns
THANK YOU!THANK YOU!