Marketing

Step 4

Defing Marketing Mix, define "4Ps" of your business.

Step 6

Determine Marketing budget: New companies: 12% to 20% of gross revenue or projected revenue on marketing. Established companies: between 6% and 12% of gross revenue or projected revenue. This money will be spent on: Branding 品牌设计; Digital marketing (website, social media) Social mediaAdvertising; Events.

Step 5

Determine your Market position: you need to know your business's market position before you can create an effective brand for your product, or service. 3 interrelated main tasks for determining your market position: 1. Figure out your point of difference 确定自己的独特之处 2. Decide which customers you will serve the best. 决定主要的服务对象 3. Find your place in the competitive landscape. 找到自己在竞争中所处的位置

Understand customer（Step 1）, Analyse market(Step 2), Analyse competition( Step 3) are part of the process of market researching 市场调研的一部分

market research involves gathering information about customers, market, product, and competition in an organised way

Glocalization

"Glocalization" means that mixing the standardized production and adding some local elements, in order to suit people in different local markets. There is a transfer变换 between different countries. However, it doesn't often work efficiently: Usually that is because of customers' habits. For example, people already have an image in their mind for McDonald's, if McDonald's sell some products which are far from their image, it would cause some unexpected results.

Key elements from Starbucks' marketing strategy 星巴克的主要营销策略

1. Adding value: Starbucks starts with a commodity product--coffee beans, and invest them with extraodinary added value by creating an experience that transcends the simple act of drinking an unnecessary beverage. For example: Starbucks tried to add value through innovation, offering free WIFI service, creating and selling its own music. That extra value beyond the fare of coffees keeps customers going back again and again. 2. Clusters of coffee shops 集中在一起的咖啡店: they often open a few coffee shops in very relatively close proximity to one another. That creates the impression in consumers' minds that "they are everywhere" and this omnipresence often both compels consumers to use the stores, and validates the decision because they are so accessible. 3. Starbucks has changed several times their logo.（Logo的不断变化)：Starbucks keeps seeking to build its own brand style, Starbucks also uses the logo change to tell the world that it was changing. Starbucks wants to use the change of its logo to draw customers' attention back, it's a way to keep and attract more customers. Besides, the logo change on the basis of their new products will lead to success in popularize its new products. 4. Facing the competition resulted from the introduction of the Clover, Starbucks' CEO secured a deal to have exclusive rights of it. 对这机器享有专有权，收购Clover咖啡机商 5. Starbucks is getting personal with customers by asking your name when you ordered a drink and then write it on your cup. A lot of regular customers really loved the fact that the staff at their local Starbucks remembered their names. 6. Starbucks has its own platform.（见下面）

3 main ways of gathering information

1. From internal information already held by an organisation. Ex: details of existing customers and their spending habits. 2. gather external primary information, which means that collecting information at first hand by interviewing customers and potential customers to get their views about a company, products and services. 3. Using published sources of information to collect external secondary information. For example, those produced by marketing organisations about products, markets and brands.

Global marketing strategies

1. Multi-domestic strategy: It's a strategy by which companies try to achieve maximum local responsiveness by customizing按规格定制 both their product offering and marketing strategy to match different national conditions; 2. Global strategy: It's the plans developped by an organisation to target growth on a global level for sales of products or services. You need to come up with a good sound global strategy if you plan on expanding your business overseas.

4Ps (with the example of Starbucks)

1. Product: this component of the marketing mix focuses on what the business offers to customers (ex: Starbucks has an ongoing product innovation process 产品不断革新 that aims to offer new products to attract and keep more customers. Continuing to innovate its product mix can help to capture more of the market.) 2. Place: this component of the marketing mix determines the venues at which customers can access the products (firm should adapt to changing times and technologies, in terms of the ways through which consumers can access your product. For example, Starbucks originally sold its products through Starbucks Cafes, now, the company offers some products through the online Starbucks Store. In addition, the company uses Starbucks App to allow customers to place their orders.) 3. Promotions: this component of the marketing mix refers to the communication strategies used to disseminate 广泛传播information about the firm and its product. (ex: Starbucks promotes its product through advertising, although for many years, Starbucks had no conventional advertising, the products, experience and word-of-mouth were enough to establish and build the business; The company infrequently uses public relations, which has not always been successful for the business, for example, Starbucks' Race Together public relations campaign was widely criticized; Word-of-mouth recommendations are also a cornerstone of Starbucks' marketing strategy, the company devotes itself to build up a customer base of loyal fans.) 4. Price: before determining or changing the price of its product, a firm should find out if there are established price points(中心价) for products in the area, and if customers in this area are price sensitive or not. (ex: Starbucks uses a premium pricing strategy高价策略, this pricing strategy takes advantage of the behavioral tendency of people to purchase more expensive products on the basis of the perceived correlation between high price and high value. This pricing strategy helps the business to maintain its premium brand image 有利于维持高端的产品形象) 市场营销组合对于星巴克的重要性：Starbucks Coffee Company's marketing mix(4Ps) supports the company's industry position as the leading coffeehouse chain in the world. Starbucks uses its marketing mix as a way of developing its brand image and popularity. 使星巴克能一直处于世界咖啡品牌前列

Factors influence your buying habits

1. Social factors: understanding and using the value of the country can help you better target your market and appeal your potential customers; Countries are different from each other, there are a lot of cultural differences we need to conform with to appeal to customers. 2. Demographic factors: each generation is marked by specific social characteristics. So for each generation, you have to have different strategies. 3. Ethnic factors: Ethnic background is fundamental for you to sell product and target customers. Understanding each community is important, you have to know first what they exactly care about, and then decide how to appeal to them. 4. Economic factors: In an economic dynamic region or an economic depressed region, you need different strategy. For example, you can introduce a product with cheaper price in the region during the period of its economic recession, like what Mc's did. 5. Political and legal factors：consumer behaviour would also be influenced by regulations in their countries. There are some common regulations almost in all countries but also there some specific ones. You have to know these regulations to better target your market. 6. Competition factors: It will be your key to work out project. You need to know the state of competition, in order to set a niche for your product.

7 key steps of marketing (in logical order)

1. Understand customer 2. Analyse market 3. Analyse competition 4. Define Marketing Mix 5. Determine market position 6. Marketing budget 7. (develop)Execution plan

Factors to take into account (when implement global marketing)

1. regulations of the country 国家的规定条例 2. Taxes (tax policies) 税收政策 3. Political stability 政治稳定性 4. Currency fluctuations 货币波动情况

Pay attention! Don't mess up!

Ad placement fails: Be careful, when combing your ad with another causes chaos; Acronym fails: 决定用首字母缩略词来标榜产品时，要确定该缩略词没有其他负面意思； Clumsy phrasing：如"white power(on a toothpaste)"-- the racism

Their business plan

Ben & Jerry's is an Ice Cream and Crepe Parlour featuring homemade ice cream, dessert crepes and so on. It will be appealing to people who appreciate high quality, good tasting and nutritious food in a warm, friendly atmosphere. The plan went on to cite引证 government statistics that predicted 'ever-increasing percentage of dollars being spent away from home and a national trend toward more specialized eating establishments.' (They had very humble粗陋的 beginnings: started with very low personal financial statement) (They learned to make ice cream from a textbook called Ice Cream, by W.S. Arbuckle)

Starbucks has its own platform for innovation and customer feedback--My Starbucks Idea

Benefits that Starbucks is receiving from this site: Starbucks has received ideas for free from customers. The platform lets the company know about small but important things that customers want to see changed. That helps Starbucks to build customer loyalty "Starbucks listen to me!" and helps its engagement within communities.

Starbucks spends more on health care for its employees than it does on coffee beans. 相比对咖啡豆的投资，星巴克对员工医疗保健方面的投资更多

Even during hard times (in 2008), Schultz refused to cut the employees' health care

Step 7

Execution Plan: it's the key to successful marketing. Ability to execute each part of the plan and measuring how useful your plan is. Knowing what is working and what is not through customers' feedback will help you make future budget decisions.

Haagen-Dazs

Founded by Reuben and Rose Mattus, American Jewish entrepreneurs. They started out in the Bronx布朗克斯, introduced Haagen Dazs in 1960, they used only all-natural ingredients of the highest quality, decreased the overrun to 20%. They created an ice cream that was richier, heavier, and more flavorful. Their targeted market: well-educated, middle- and upper-income consumers 受过良好教育的，中等和高收入消费者群体 Their name was brought from Danish (nobody hated the Danes 丹麦人) They opened the first shop in City of New York in 1976, sales kept increasing over the next years. The company was bought out by Pillsbury in 1983.

Howard Schultz

He grew up poor; He graduated in Business & Marketing; He joined Starbucks Company in 1982 as Marketing Executive. He resigned in 2000, he got back 8 years later to reverse the trend of sales decline.

3 goals of promotion

Informing: before you convince people, you have to inform them what your product is; Persuading: convince people to do their purchase; Reminding: you have to remind people of your products to keep your place in the market. The goals of promotion: To maintain image and educate consumers; To reach the masses; To stimulate the purchase.

McDonald's （Origins: Sanbernardino, CA）

It's a brilliant example of adaptation to specificities of each culture and each market. Well aware of the importance to have an offer with specific products to meet the needs and tastes of customers from different cultures.

Promotion

It's a part of 4Ps, a part of marketing mix. It will be central to your marketing plan. promotion is to raise people's aware of your product. The goal is to convince consumers that the product you offer provides a competitive advantage. You try to modify their puchasing behaviors through promotion, that means your try to manuplate people and make them to buy your product.

Global marketing

It's a way through which a company decide to set a corporation over the world. It's the marketing on a worldwide scale reconciling协调 or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. In the global market, products need to be standardized, in order to meet global needs. Considering all countries as a whole market, the goal is to marketing the same products in all countries.

Marketing research (in global marketing)

Marketing research is a fundamental stage of global marketing, it helps to understand each countries, such as culture of the country, economic factors, natural resources, etc.

McDonald's marketing strategy

McDonald's marketing strategy includes two parts: Stable strategy: trying to appeal to the general public; At the second time, they are also trying to appeal to different segments of the public by understanding various consumer segments.

Failure of Starbucks in Australia

Many US food businesses failed to enter Australian market, because they have tried to replicate what they do in their home market here. But Australian market is different. Example: Starbucks: They failed because: 1. The Australians have preferences towards Australian brands. Australian coffee market has already dominated by an Australian brand. 2. There is a strong competition from McDonald's, Gloria Jeans and local coffee shop. 3. There are not enough Starbucks stores to make it accessible. 4. Mainly because of cultural differences. For example, the Australians like using abbreviations, they have a penchant for jocular幽默的 nicknames. So McDonald's rebrands to Macca's in Australia, using it as their Australian nickname. However, Starbucks didn't do that. Starbucks should also rebrand itself to a recognized Australian nickname, to penetrate into the Australian community. 5. Starbucks hasn't understood the coffee market in Australia. Australians like their coffee stronger without any flavored sugary syrups糖水, unlike Americans. Australians prefer less flavors in their coffee. 6. The price of Starbucks coffee is higher than that of others. In addition, they have low quality.

Marketing (definition)

Marketing is the process of developing and carrying out a plan to identify, anticipate and meet consumer's requirements to make financial profits.

marketing mix ( 4Ps )

Marketing mix is a business tool used in marketing and by marketers. Marketing mix is often crucial when determing a product or a brand's offer, and is often associated with the 4Ps. The 4Ps is one way of defining the marketing mix, it helps you to define your marketing options in terms of price, product, promotion, and place so that your offering meets a specific customer need or demand.

Marketing mix（讲义）

Marketing mix is the set of decisions, actions, and tactics that a company will use to promote its product or service. Marketing mix: This marketing tool is very important as a way of ensuring that the firm promotes the right products at the right prices and places. Marketing mix is also called "4Ps", it's the right combination of Product, Place, Price, and Promotion.

Ben & Jerry's

Our original concept for the store as ' Ice cream for the People. We wanted to make the best ice cream available and sell it at a price that everyone could afford. In 1978, they opened a homemade ice cream parlour 冰淇淋店 in an abandoned gas station

Positioning (definition)

Positioning is a marketing strategy that aims to make a brand occupy a distinct 不同的position, relative to competing brands, in the mind of the customer. It is used to define what we are going to sell and to whom we are going to sell.

Standardization vs. Adaptation (global marketing)

Product: Alter改装 or stay original Product invention is one way to alter your product, for example, create new flavors of ice cream on the basis of local preferences. Product invention also has to do with cheap price. Or you keep the products but advertise them in different ways, it's also a kind of invention. (ex: in developing countries, bikes are promoted as a mode of transportation交通方式; in developed countries, they are promoted as a leisure activity 消遣活动)

Ray Kroc (he was impressed with the concept of franchise)

Ray Kroc was famous for saying that the McDonald's franchise was built on the "three-legged stool". McDonald's business model is depicted描述 by the "3-legged stool" of restaurant owners, suppliers, and company employees, which is its foundation. The balance of interests among the three groups is essential to the company's success.

McDonald's Positioning Strategy

Segment is central to McDonald's marketing strategy. Instead of having brand managers for each kind of product, McDonald's has segment directors, specialized in one category of population. In order to better target market, McDonald's use segment insight. They collect information and data about different segments. Pieces of information help them to understand how to describe their products in a way that will be most compelling for the particular segment.

Starbucks

Starbucks was founded in Seattle, Washington in 1971. Now, 23 thousands Starbucks in the world (65 countries)

McDonald's global strategy

The company transfers their American lifestyle across the world. They have restaurants throughout the world. They focus on emerging market 他们关注新兴市场, and McDonald's has explored organizational strategy over its franchise system. McDonald's managed to impose themselves across the world: By using different logo designs in different countries（ex: its logo in France is with green background, to convey positive images）; By selling standardized products on the one hand, such as Big Mac, on the other hand, they sell adapted products, like McDonald's Café in France; They also adapt their products by launching different advertising campaigns in different countries (ex: using the image of Wang Lihong in China).

Ben & Jerry

The company wanted to be a force for social change (so they created special edition flavors linked to what was happening in society.) In 2001, Ben & Jerry was bought by UNILEVER. Ben & Jerry now develops its products into other area: beer.

AIDA model

The model describes the different stages in the promotional process: The first stage is attention stage: attract the attention of the customer, raise awareness. The second is interest stage: create and raise interest. The third is desire stage: convince customers that they want and desire the product or service and that it will satisfy their needs. creating their desire for product by illustrating different features of your product, creating brand preference. The last stage is action stage: lead customers towards taking action and purchasing by using different tools of promotion. in conclusion: it's important to cross the four elements of AIDA MODEL with the fives tools of promotional mix

the concept of promotional mix

The promotional mix: Marketers have to come up with promotional mix. You do not just promote your products in one way, you should combine the different tools to boost your sales: The first tool is advertising: use websites, emails, etc. The second tool is Public Relations(PR): it's not promotion of product, but the promotion of your company, in order to build an image you want about your company. The third tool is personal selling: it's rather dealing with micro-promotion. The forth is sales promotion: it's more local, it usually works along with advertising,but it's short-term oriented. The impact is to boost directly the sales. It can take different forms: coupons优惠券, discounts etc. The latest one is social media: a new promotional tool to convey your mesage and promote product. So promotion is not just about advertising.

Ben & Jerry's image and marketing approach

Their image: funky and unpretentious 简约的, down-home 淳朴的 and genuine 真实的 Their Marketing approach: 1. Creative flavors--more flavors were available, Ben & Jerry made world-class ice cream in some really unusual flavors (in Vermont), which set them appart from the competition； 2. They tried to enter Boston market. The supermarket buyers there insisted on a TV schedule for any new product launch. So, Ben & Jerry need a TV commercial to target Boston consumers. But they don't have much money, so they played their own TV commercial; 3. They decided up front to cast themselves in a fight against Pillsbury. (The Fortune against Two hippies). When Haagen-Dazs wanted to limit distribution of Ben & Jerry's in Boston (1984), Ben & Jerry decided to deal with this themselves, so they launched "What's the doughboy afraid of " campaign, to defend their market share. (led to 120% increase in sales the same year) 4. In Ben & Jerry's, they set up a compressed salary structure which dictated a maximum spread between the lowest and the highest paid employees of 5 times. This policy aimed to recognize the contribution of lower-level employees and to link top management rewards to company-wide compensation, in order to build up a strong and unique set of values in the company.

Their secret

They make a good homemade ice cream which weighs more than the commercial products and is creamier. (has less overrun膨胀度，搅起泡) They added chunks or cookies or candy into ice cream. They make chunky ice cream. Other than its ice cream, the company is best known for bringing "sixties values" to today's business world: For instance, the company has a Free Cone Day, where they give out free scoops勺 of cold dessert. It's their way of thanking their customers. That helps them to increase market share among existing customers.

Offensive marketing (of Ben & Jerry's)

They printed out bumper stickers 贴在保险杠上的小标语：'Lick it'. These were given away for free to their customers; Ben and Jerry came to describe their business as being "funky". They create funky flavors. The shop became a community favorite thanks to its rich ice cream and creative flavors; They started selling two and half gallon tubs盒 to restaurants. When winter was coming, sales would plummet, so they came up with the idea of packaging ice cream in pint containers and selling it to grocery stores and supermarkets. They also added "Vermont's finest all natural ice cream" under their logo. Results: increased the wholesale business more than 300% over the previous year.

Offensive marketing strategy (definition)

This strategy is employed when more than one company in a market offers the same kind of product; therefore each company has a market share and any company that takes extraordinary efforts to gain more market share by directly attacking the competitors' business plan, and taking away its market is described as the offensive marketing strategy.

reason for going global

To access new markets, reach more markets, also, to increase sales and profits; 拓展市场，增加盈利 If you have a technological advantage or a unique product, going global allows you to give full play to your advantage. 充分发挥技术优势 It can help you to improve global efficiency 提升全球实力 It helps to remain competitive 保持竞争力

why analyze the market environment?

To understand your external market; To understand your customers; To define a "target market"; it's central to define your "marketing mix" and determine market position.

Determine your market position--Positioning

Two main tasks for positioning: 1. Differentiation: Figure out characteristics of your brand and the image imparted to your product. 2. Segmentation: Decide which customers you will serve the best and segment your customers on the basis of their buying habits, different lifestyles and values. （与Step 5相似）

Different kinds of promotion

promotion has to do with communication, there are two kinds of communication: One-on-one communication: it's more effective than mass communication. Mass communication: it's the one-way communication. one message try to reach people as many as possible. The time is one obstacle. The other issue is that the messages may lose because people are inundated with many similar information. The ways to deliver message in an effectiveq way (make your message stand out): Come up with clear and original promotion (clear message about your company and your product); Match promotion to your targeted market; Try to avoid miscommunication, words have to be choosen carefully; Using bright colors to catch your audience's attention.