Introduction to Marketing Quiz 1 Class 1-6 + Guest Lecture
1. Walgreens buys Tylenol from a wholesaler at $420/case (100 units/case) and has a target margin of 30%. What should the retail price be?
$6.00
Which of the following is true?
***a. Breakeven analysis implies that we are looking for the minimum number of sales that yield zero profit b. CLV assumes that a retained customer is always a satisfied customer c. Sensitivity analysis compares the expected cost of error to the expected cost of marketing, and assesses whether the risks of marketing outweigh benefits d. We calculate economic values to determine the breakeven sales e. None of the above
Rogers' framework
helps firms predict and influence diffusion of adoption through population • Can be used in conjunction with purchase funnels (awareness and interest) • Know where to plug in the numbers for analytics
Isolate barriers to (repeat) purchase
- Awareness: Lack of general brand knowledge (remedy with mass media, PR, social media, search engine optimization, etc.) - Consideration Set: Mistaken belief that the product won't work for the customer (remedy with salesforce training or targeted communications, etc.) - Preference: Sense that a different product fits customer goals or identities better (remedy with endorsers, identity signals, etc.) - Purchase: Inability to afford or find a desired product (remedy with financing, sales promotions, etc.) - Satisfaction: Performance falls short of expectations (remedy by addressing expectations and/or performance)
1. A firm spends $200 to acquire a customer and earns constant margin of $100 per period from each customer. The interest rate is 10% and at each period there is a 15% probability that the customer will leave and never come back. What is the lifetime value for this customer?
200
1. How did segmentation help Nanda Home determine their next steps after the success of Clocky?
Analytics suggested positioning Clocky products as novelty sleep aids
Marketing Math Recap
BEA: What is the bottom line not to lose money • Markup/margin: Connects retail/wholesale prices and cost • Cannibalization: New product impacts incumbents' profit • Sensitivity Analysis: How reliable your assumptions are • Economic Value Calculation: how to do we split value with customers
PharmaSim: Company and Competitor
Basic Question • How should we measure the performance of a company---ours or our competitors'? • Standard answer—by it's financial measures, e.g. profit, ROI, etc. •Is there another set of metrics? • Internal measures of marketing performance • External measures of market/customer performance
Customer Lifetime Value Formula
CLV = Sum of ((m x r^t)/(1-r+WACC)^t ) - C AC • m = margin of a customer (dollar value of variable profits), assuming constant over time • r = retention rate • CAC = customer acquisition cost • WACC = weighted average cost of capital (used as discount rate for investments)
Humans are
Cognitive Misers - Stingy, Lazy/Effortless Cold - but also hot Egocentric - seflish Social Highly influenced by our environments
3 C's
Company - what you do best Customer - what people want most Competition - what they struggle at Background
Economic Value-in-use
Consumer Surplus Margin Cost of Production Annual cost of incumbent =200 (rings) x 6 changes/year x $5/O-ring = $6,000 versus =200 (rings) x 3 changes/year x $???/O-ring => VIU of $10/Oring Use costs = (Annual) • Purchase cost + Fabrication cost + Finishing cost + Inventory cost + Maintenance/Service cost Scrap adjustment + Level-of-requirement adjustment + Changeover cost + Risk premium + other
Digital marketers sometimes pay for display ads that match or complement the website content. For example, someone reading an article online about home exercise habits during the pandemic might be shown a Peloton ad. This is known as:
Contextual Advertising
Product Life Cycle and Marketing Strategy
Demand Focus Primary Demand: convincing innovators and early adopters to make that first purchase Transition: anticipate need for differentiation Secondary Demand: convincing target markets that your brand is better than competitors Strategic Focus Developing the market by encouraging adoption (use Rogers Framework) Begin to differentiate (sales growth may mask need to differentiate) Defending (or expanding) our place in the market by differentiating (competitors have entered) Managing assets and costs, or finding some profitable niche Key Metrics (level and change rate) Market Penetration = # of customers who purchase / # of customers in potential market Share = brand units sold / all units sold in market
Marketing Management
Designing marketing programs that are: • Create value for customers and ... • Provide a sustainable differential advantage over competitors and ... • Are a good fit with the company's competencies
1. According to Malcolm Gladwell, food manufacturers should use segmentation in marketing to combine small, diverse groups into large, homogenous markets.
False
1. True or False? According to the Chicago Beer Perceptual Map, Budweiser's best strategy for competing with Miller was to increase advertising costs and offer price promotions.
False
True or False? Prior to social media, it was very easy for brands to actively engage and converse with their customers.
False
Positioning
Firm actions, through the marketing mix, to define or alter one's position I'm not concerned with how you use these words; Instead, I am concerned about recognizing what we can and cannot control as marketers • Control our actions (4 Ps), not the resultant position • Control our own research, not the underlying heterogeneity in segments
Break-even analysis formula
Fixed Costs/Per Unit Contribution to Fixed Costs (Price-Variable Costs) Profit = (P-VC)Q-FC • Set profit = 0 • Q = FC/(P-VC) =FC/Contribution • Any fixed expense to numerator, variable expense to denominator
Clocky
Functional Need (Sleep Aid) • Main benefit ~ help waking • Narrow basis of competition with other sleep tools (niche) • Build Marketing Advantage around wake-up expertise • More clocks (e.g., Tocky) • Cannibalization risks are focal • Novelty Need (Novelty Item) • Main benefit ~ entertainment • Broad basis of competition with household items and decorations • Build Marketing Advantage around novelty product development • Different product types (e.g.,Spitlet) • Alienation risks are focal
Julia O'Brien
Guest Speaker
Fair and Lovely promotes colorism or the notion that fairer shades of skin can be equated with beauty, confidence and success
Hindustan Unilever (HUL) recently rebranded their popular, but controversial, Fair and Lovely skin cream. Which of the following best describes the controversy HUL faced in marketing this brand?
Impacting Users
Impacting users, customers, public: Learn, Build, Test Impacting Organizations: Think, Apply
Fixed costs remain the same with production while variable costs increase
In a breakeven analysis which of the following is true of fixed and variable costs?
1. According to our guest speaker, a health campaign encouraging consumers to eat five servings of fruit and vegetables per day resulted in which of the following?
People became very aware of how to eat healthier but did not eat healthier
You are managing a brand with low sales. Awareness is at 20%, price is average, and satisfaction is high. What should you do?
Increase advertising
Information Motivaiton Incentives
Information Motivation Incentives
Search Advertising and SEO
Internet marketing • Online ads show results from search engine queries • Ads are targeted to match key search words (keywords) • Sponsored search is less intrusive than banner/display ads (based on user's own queries); reduces user's search costs • Search engines (Google) run auctions to determine which firm's ads will be shown • "pain reliever" "aspirin" "Tylenol" "Advil" • The higher the demand for the product or keyword, the higher the cost of delivering the ad • You can buy your own brand, or competitor's, keywords • Search ads and contextual ads • Keywords lead to search results • Keywords are highlighted within text (click takes to brand's webpage) • Keywords align ads with content
External Market-Based Measures
Market Metrics Customer Metrics
Digital Tools and Analytics
Marketing Analytics Goal: gain knowledge relevant to marketing actions • Isolate variables that link to strategic concepts and decisions • Assess relationships, evaluating indications of causality • Marketing Advantage: Analytics are a value creating capability àdifferentiation • Is this new? • Analytics always mattered; data sources were limited • Now we are drowning in data! • "Martech" promise of automating marketing tasks; still need analytics to set up models and criteria for automation
1. Uber's recent increase in promoting new services such as subscription packages for both ride-sharing and food delivery suggests they are at what stage of the product lifecycle?
Maturity
Measures of Net Marketing Contribution
NMC = Unit Sales x Margin - Marketing Costs •ROS= NMC/sales = (Unit Sales x Margin - Marketing Costs)/Sales = Margin - Marketing Costs/sales •ROI = NMC/marketing costs = (Unit Sales x Margin - Marketing Costs)/Marketing Costs
Value Proposition
Net Value to Target Market = Benefits to Target Market - Cost to Market
Birds of a Feather Flock Together
Opposites don't attract
Imagine that you are introducing a new beverage to the soft drink market. There is debate among your team about how to position the drink - it can be either a sports drink or an energy drink. These are both popular and growing markets so you must conduct some market research to see how your product is perceived by customers relative to your competitors. Once you are done with the research, which tool will best help you identify the correct positioning for your new beverage?
Perceptual Map
4 P's
Product - create value Promotion - communicate value (advertising/sales/social/PR) Place - deliver value (distribution) Price - capture value value Strategic Decisions
Primary Demand Strategies
Require capabilities and resources (marketing advantage) • Do not necessarily require competitive differentiation • EX: new ride share customer New customers • Or, new/increased use from current customers work together with secondary e.g., Disruptors shift plan from primary to secondary demand as competition enters
Secondary Demand Strategies
Require capabilities and resources (marketing advantage) • Do require competitive differentiation • EX: Lyft/VRBO > Uber/Airbnb aim to create company sales that would otherwise be competitor sales work together with primary e.g., Disruptors shift plan from primary to secondary demand as competition enters
Chase Sapphire
Revolvers - spend initiatives, find ways for brand image offerings to grow Churners - monitor spending to predict defection
1.Which of the following is true of the segments in the Chase Sapphire case?
Revolvers are more desirable than Churners
Customer Lifetime Value
Segment value = Segment CLV * Segment Size Contribution Margin (foundation of BE analysis) • Dollar contribution per unit • C (contribution margin) = P (price) - V (unit variable cost) • CM - fraction of sales that offset fixed costs r=1-d CLV = CM / (i+d) Retention rate Consider each customer as a resource that creates cash flows • AC = acquisition cost • CLV = (CM / (i+d)) - AC
STP
Segmentation Targeting Positioning Used to identify and evaluate opportunities for increasing sales and profits Tactical
CLV - Customer Lifetime Value
Specify finite horizon Specify nonlinear defection rates (d) Specify non-constant contribution margin (CM) Insights from CLV: A customer's long-term expected value to the firm is a function of: • +Contribution Margin (across entire relationship) • + Revenue from customer (prices paid) • - Variable costs to serve customer • - Defection rate: probability the customer stays with a firm (e.g., 100 customers in year 1 with 10% defection will become 90 customers in year 2) • Note: Interest rate reflects the time value of money, but does not differentiate across customers or segments
1. You are a video game developer who is launching a new version of a popular game. The CLV of the average user is $100, mostly from in-app purchases. You have a loyal following and predict that 5 of every 100 customers who see your ad for the new game will click and download the game app. Google will charge you $3 every time the ad is seen by a user in your target audience (i.e., cost = $3/impression). What should you do?
Stick with Google, you will at least break even
Brand Assessment
Take a customer perspective on the effects of brand equity • Perceptual map • Brand Identity: Awareness • Salience = Awareness of brand and elements (e.g., logo) • Breadth in terms of linkages to categories and situations • Brand Meaning: Specific Associations • Brand performance = beliefs about meeting functional needs • Brand imagery = beliefs about relevance to psychological and social needs (e.g., associations re: users, situations, personality, history) • Brand Responses: What customers think and feel as a result of the brand • Brand Judgments (e.g., quality, trustworthiness, worthiness of consideration) • Brand Feelings (e.g., excitement, reassurance / trust, social approval) • Brand Relationships: Psychological bond creating behavioral results from loyalty to engagement
What was the primary reason that Amazon introduced the Shopper Panel?
To entice customers to voluntarily share information about their non-Amazon purchases
Social Media Advertising
Using social media websites and networks to market products and services • Facilitates two-way communication • Brands can actively engage and converse with customers • Revolutionary! • Most marketing (e.g., TV, radio, display) is one-way "push" • Some marketing (e.g., SEO, paid search, native ads) is one-way "pull" • Before social, two-way streams of communication were limited to sales force, customer service call centers and in-store interactions • Social media interactions are public & public record • Digital format creates ample opportunity for data analytics
Customer Decision Making
We ultimately want sales, often focus on moment of sale (pos) • But, choice takes place within context of wider psychological processes • All of these processes can be influenced by marketing • Sometimes the customer needs to know the active ingredients • Sometimes the customer needs to find out your product exists • Sometimes the customer needs to know that you can be trusted • The funnel breaks down customer decision making stages and assigns a probability to each transition from one stage to the next
Internal Market-Based Measures
What is the marketing function responsible for? • Creating, communicating and delivering value to customers •What are some measurable firm outputs of this activity?
1. Apple just announced the launch of the new iPhone 13, which retails for $799 (markup = 100%). Apple spent $30,000,000 on R&D and marketing for the new phone knowing that it would cannibalize sales for the iPhone 12 - every 10 iPhone 13 sales cannibalizes a $350 margin iPhone 12. The variable cost iPhone 13 is $100, so approximately how many does Apple need to sell in order to break even?
a. 113,307
1. In order to get the breakeven sales for their new phone, Lenovo needs to know:
a. Advertising and R&D costs b. Cost to produce 1 unit c. Wholesale price d. Cannibalization rate *e. All of the above
Creating, communicating and delivering value
Which of the following best describes Marketing's role in an organization?
Which of the following is not true of primary demand strategies?
Which of the following is not true of primary demand strategies?
Demand Analysis
Would the sale happen without the marketing action? YES (Secondary demand strategies): Take customers / share from competitors ex. target price for brand switching NO (Primary demand strategies): Bring a new customer into the available market ex. demographic or geographic market dev Increase usage by customers currently in the market ex. customer support or reminders for usage
Conduct a sensitivity analysis that varies the cannibalization rate to determine how high it can go before you no longer break even on the new product
Your company recognizes that while the new air filter will likely attract competitor's customers, it will also likely cannibalize some of your own sales for the less efficient air filter. The problem is that you aren't sure of the exact cannibalization rate - it may be as low as 10% or as high as 25%. In order to ensure that your firm still breaks-even on the launch of the new efficient air filter, what should you do?
Value-In-Use
Your goal is to convince the building managers that the price increase is justified because the more durable and efficient air filter reduces other costs, such as HVAC maintenance and labor associated with scheduling access to residential units and changing out the filters. Highlighting that the switch to the more expensive air filters might result in overall cost savings to the customer is commonly referred to as:
1. According to PharmaSim, Allround has a 40% share of manufacturer sales of OTC products, but according to a consumer survey, just 25% share of purchases for colds. The best explanation for this discrepancy is:
a. Cross-usage of Allround for symptoms other than colds is high
1. According to the researchers who developed Stickk.com, what type of contract best motivates consumers to follow through with their commitments?
a. Having to pay a fine to a charitable organization that they despise if they fail to meet their goal
1. According to our guest speaker, an energy company's test to determine the best approach to retaining customers revealed which of the following insights?
a. Highlighting customers' feelings of making progress toward their energy savings goals was 3x more effective than highlighting price savings
How does Rogers' Framework help us understand primary demand for new products?
a. It helps firms predict and influence adoption diffusion rates
1. According to Malcolm Gladwell, why did Progresso introduce a line of extra chunky spaghetti sauce to compete with Ragu?
a. Market research uncovered latent demand from a large segment of customers that preferred the chunky formulation, even though they did not specifically ask for it
What are the 4 Ps?
a. Product, place, price, promotion
1. As a small business owner, a key aspect of your digital marketing strategy is to maximize the number of visitors to your website by ensuring that your site remains high on the list of search engine results. This is known as:
a. Search engine optimization
A customer's long-term expected value (CLV) to a firm depends on which of the following?
a. The interest rate b. The defection rate c. The contribution margin d. The acquisition costs Answer: All of the above
Secondary Demand
consumer demand for the particular advantages of one brand over another
Synchrony
doing things together at same time is important for a meaningful experience ex. used for exercise GL
Product Life Cycle framework
helps firms anticipate evolution of strategic challenges • From primary demand (market penetration) focus to secondary demand (market share) focus
Insights from CLV
insights from CLV: A customer's long-term expected value to the firm is a function of: • +Contribution Margin (across entire relationship) • + Revenue from customer (prices paid) • - Variable costs to serve customer • - Defection rate: probability the customer stays with a firm (e.g., 100 customers in year 1 with 10% defection will become 90 customers in year
Purchase Funnel Calculations
p(sale) = p(aware) * p(interest/consideration) * p (preference) * p(action) •p(repeat customer) = p(sale) * p(satisfaction) % Aware % Consideration Set % Preference % Market Share % Return/complain or Recommend
Primary Demand
the demand for a particular product category or type rather than for a certain brand. It focuses on the benefits of a product without highlighting the advantages of using goods from one specific company.
Position
the place you occupy in customers' minds • Most often useful at the level of market segments (e.g., how does a particular segment conceptualize a market in terms of focal attributes and key competitors) • Focus on target segments, try to understand: How are we (or can we be) perceived by the target, relative to competitors?
Digital Tools Align with Purchase Funnel
}Awareness - Non-branded keyword search advertising } Interest - Targeted price promotions }Desire - Brand building with community content }Action - Accessible, online sales support, reduced friction }Satisfaction - Tech support (synchronous and asynchronous)
Cannibalization
• Analyze dynamics across firm offerings • Worry about cannibalization most when customers might "trade-down" to lower-margin (often cheaper) offerings; iPad > Mac • Resale, refurbished items often act to cannibalize (e.g., older gen iPhones) • Some "customer lifetime value" (CLV) strategies aim to motivate trading up to higher contribution margin offerings over time (e.g., Chase mortgages; Apple Watch)
Value Proposition: Attribute Types
• Attribute Types • Points of parity: Shared across competitive set (define the market, not your positon) • Points of difference: Focus of value proposition and support • Leverage marketing advantages (e.g., brand, patent, new product development, expertise) • Create competitive differentiation (valued and unique position) • Points of difference may involve: • Vertical differentiation: Fastest, cheapest, cutting-edge • Horizontal differentiation: Unique attribute, benefit, feature
Perceptual Maps: Underlying Statistics
• Attribute-Based • Factor analysis or multiple discriminant analysis • Have to know the attributes • offered at low price? • good for waking up heavy sleepers? • Similarity-Based • MDS (multidimensional scaling) common • Have to determine attributes from the map
Purchase Funnel
• Awareness - brands generate awareness (almost definitional) • Interest - brand associations include brand/product knowledge • Desire - brand associations include and create emotional responses • Action - brand acts as a simplifier during purchase • Satisfaction - brand loyalty and satisfaction can create a positive feedback loop
Purchase Funnel
• Awareness - do I know about it? • Interest - do I judge it as worth serious thought? • Desire - do I want to do it? • Action - do I actually do it? • Satisfaction - would I do it again (or recommend it)? Is the customer aware of the brand? Is the customer willing to consider it? Does the customer like it best? Can the customer find and afford it? Purchase Brand Is the customer happy about purchasing? If no > purchase competing product multiple probabilities to reach conversion rate
Marketing Innovation
• Common sources of innovation inspiration • Search for new markets (often need to adapt the product) • Search for new products (often need to find the market) New Markets - Market Driven, e.g., known but unsatisfied customer needs - EX: Chase, Allround New Products - Market Driving, e.g., latent customer needs Clocky, iPhone
Brand Association
• Consistency is key (strengthens associations) • Consumers resolve confusion by ignoring the brand, or worse (e.g., assuming low credibility) • Brand associations create expectations • This process leads to satisfaction if expectations are met • But, broken promises, even implicit ones, create dissatisfaction
Positioning Statement: Strategy
• Defines value proposition and reason to believe (support) • Based on a point of difference that leverages your marketing advantage • Provides competitive differentiation (i.e., argument for how your firm is the best or only offering)
Primary uses for CLV
• Determine investment in acquisition costs • Customer Relationship Management (CRM) • Defection / Retention: CLV quantifies the value of actions to increase satisfaction • Margins: • CLV helps quantify the value of cross-selling and / or improving variable costs • CLV may also identify customers to "fire"
Primary Uses for CLV
• Determine investment in acquisition costs • Imagine: • Customers have $1000 average CLV • New promotion results in one new customer for every 500 impressions • What is the breakeven acquisition cost per impression? • ($1000 payoff) * (.002 probability of a customer) = $2 per impression • Customer Relationship Management (CRM) • Defection / Retention: CLV quantifies the value of actions to increase satisfaction • Margins: • CLV helps quantify the value of cross-selling and / or improving variable costs • CLV may also identify customers to "fire"
Digital Display Ads: Advantages over Mass Advertising
• Flexibility • Match ad to website context topic (also possible with some mass advertising) • Re-targeting ads to customers who have visited firm website previously • Morphing ads matched to (inferred or known) customer characteristics • Assessment advantage over traditional advertising • Test and improve ROI of display ads • Gain insights that are useful for traditional advertising • Assessment is the focus of the rest of our discussion of outbound marketing • Understanding variability: Independent variables • Assessing tactics: Dependent variables aligned with purchase funnel
Market-Driving Innovation
• Innovation results in new offerings. Two main "places" to look for what to offer: • Market (what customers want) • Product (what the firm can create) • Think broadly (Clocky): • emotional, identity, fun, novelty benefits • distribution, competition, and price • Remain true to marketing advantages (Clocky): • Product innovation & avant-garde brand
Brand Equity
• Is multi-dimensional (usually awareness and a variety of associations) • Has different roles at different stages of the purchase funnel • Is valuable to because it changes customer behavior (creates pull) • Adds efficiency in the marketing mix Awareness and Associations • Brand associations have an important, pervasive influence • That can be valuable and automatic • Consistency in marketing implementation builds brand equity
Marketing Expenses
• Marketing administration • Sales and service • Advertising • Marketing research • Promotions (including sales discounts)
How do I build Primary Demand?
• Micro (Customer Decisions): Understand customer processes of adoption to influence the market • Macro (Evolution of Market and Competition): Understand the product life cycle (PLC) to anticipate strategic issues
Market Driving Innovation: Changing the market
• Newer (less expected), strategies become market-driving • Was anyone asking for Clocky, iPod, Minivans? (Probably not) • Did consumers realize that the snooze button was a problem? (Probably not) • Customer doesn't realize they have the need (latent needs) • Customer often can't articulate specific benefits they are seeking • Qualitative research may be important (observation, salesforce and customer support insights, ZMET, etc.) • Observe customers interact with products or prototypes (design thinking approach) • Proctor & Gamble Google Car • Broader competitive landscape • More varied competition (often, going beyond an established market means new competitors) • Sales are generated by increasing primary demand • Resources and capabilities related to product innovation can be an important marketing advantage • Cannibalization (generally) becomes less of an issue
Positioning tools
• Perceptual maps to understand current reality (external & actual) • Positioning statements to articulate desired outcomes (internal & aspirational)
Value Proposition & Reason to Believe
• Positioning is communicating with customers about how your product is different from competing products (creating a "unique selling proposition" in reading)
Rogers' Framework: Diffusion Rate (speed to majority adoption)
• Predict diffusion rate (speed of adoptions diffusing through population) • Influence diffusion rate by addressing barriers to adoption • Does it work? (relative advantage) • Will people see it? (observability) • Will people understand it? (complexity) • Does it impose switching costs? (compatibility) • Can people easily try/sample it? (trialability)
Innovation
• Product (and service) innovation is a crucial aspect of marketing strategy • Innovation may often need to go beyond current customer preferences • Inspiration may come from a focus on new markets or new products • Market-driving innovation creates new sources for generating primary demand • Guided by marketing advantage • Generating primary demand for innovations requires specific understanding of • Customer adoption processes - Rogers' framework • Strategic evolution of markets - Product life cycles
Purchase Funnel Summary
• Purchase funnels help whenever firm goals involve customer influence • Model of customer decision processes (customer journey) • Determine important metrics Funnels foster an analytical approach to customer decisions • Encourages firms to explicitly model customer behavior --> sales • Provide rigor and a shared basis for discussions of customer • Helps organize multiple tools for customer influence
Leverage Insight
• Some consumers are "sophisticated" (i.e., self-aware) about their self control problems • Oversleeping, overeating, overspending • Smoking, texting and driving • Screen time, resume, language learning, writing thank you notes • Willing to "precommit" to actions now that prevent them from acting against their own self interest in the future • Restrict access • Avoidance, restraint • Impose penalties • Financial, physical, social
Positioning Statement
• Statement of strategy: How you wish to be perceived; internal goals For _________________ (target market segment), __________________ (product/brand) is the only brand among all ______________ (competitive set) that provides __________________ (value proposition) because ______________ (reasons to believe / support)
Customer Privacy Concerns
• Targeted advertising is a particular hot button • Consumers dislike actions they perceive as non-transparent: • Third-party information sharing (one site/platform shares with another) • Inference (deducing from analytics) • Firms enjoy wider latitude under conditions of: • Brand trust: explain targeting in terms of benefits to customers • Consumer perceived control: advertise the existence of opt-out mechanisms
Perceptual Maps
• Use perceptual maps to understand important dimensions of competitive differentiation • What you do to customers' perceptions regarding these dimensions may be as important as what you do to the product • You are where your customer thinks you are • This is not necessarily where you think you are • Plot brands using criteria that your customer considers important • Close brands = more active competition • Open space is not necessarily a good opportunity: depends on ideal points (segment preferences)
Competitive Dynamics
•To whom are you losing? in what segment? • EX: Unaware are buying Competitor X (low expertise customers?) • EX: Those who prefer you, but buy Competitor Y (lower price? financing? Convenience?) •Different types of marketing advantages create vulnerabilities at different funnel stages • Excellence in communicating value often results in high awareness • Excellence in tailoring value to customer often results in high preference
