UGBA 10 Marketing Module

Price ex: Apple

Apple 7 collaboration with Hermes (helping elevate apple watch to the next level). Elevate status in branding. Apple 7 collaboration with Nike.

The Place P and ex: Apple

Apple using retail stores as distribution centers to speed up new product deliveries.

True Friends

Both profitable and loyal. Marketing strategy - Invest to turn them into brand advocates.

The Price P

List price, discounts, allowances, payment periods, credit terms.

Strangers

Low potential profitability and little projected loyalty. Marketing strategy - Avoid investing

The Product P

It is the foundational P. It can be a product or a service that customer (or "persona") are buying. Components of product - variety, quality, design, features, brand name, packaging, services.

Projected Loyalty

Share of category requirements met.

Positioning Framework

similarities to value proposition: who we are ~ frame of reference why it matters ~ key benefit Differences to value proposition: includes target audience includes reasons to believe or proof points that make it credible and relevant to its target audience, and differentiated from alternatives

Name 2 trends in packaging (product)

sustainability, direct-to-customer

What are the 2 key dimensions in pathways to growth? (Think matrix)

(1) Who/Where (Markets/Customers) and (2) What (Products)

How does the Apple 7 watch reinforce the Product "P"?

-Any band, any color (allows someone to express their "personal" style) -Packaging: cost of packaging an apple product represents up to 10% , sleek, easy to open, simple -Bundling

What are the 4 ways that marketers create value for targeted customers?

1) Segmentation -- Select customers to serve 2) Targeting -- Select customers to serve 3) Differentiation -- Leveraging value proposition 4) Positioning -- Leveraging value proposition

What 4 questions does positioning answer?

1) Target 2) Category/Frame of reference 3) Key benefit (alludes to competitors) 4) Table stakes (alludes to competitors) 5) Differentiators (what makes the offering distinctive)

Market

A group of end users with a need and the desire and the means to fill it.

Marketing Value Proposition

A values proposition should answer three questions: 1)Who are we? The capabilities or special expertise we bring to bear. 2)What do we do? The key aspects of our offering. 3)Why does it matter? The product benefit delivered, customer need addressed/how we make life better.

The Promotion P

Advertisement, personal selling, sales, promotions, public relations. It's about "getting the word out". Prevalence of digital "promotion".

What are the four customer relationship groups?

Butterflies, True Friends, Strangers, Barnacles.

Place

Can be physical location or virtual. Channels, coverage, assortments, locations, inventory, transportation, logistics.

What are the cells in the growth/share matrix?

Cash cow, Dog, Question Mark, and Star. Keep in mind that marketing's job/function differs by cell of the matrix.

Ex: Amazon

Company's mission often reveals value proposition. ...

Financial Marketing Objectives

Describe the effect marketing will have on the top (revenue) and/or bottom line (profits) within a specific time frame. These objectives flow from the overall business objectives. Ex: % increase in market share, $ increase in average order size, increase in purchase frequency, increase profitability

Luxury products and "Pricing"

Designer brands use element of scarcity to drive up demand. These products rarely go on sale. Give customers a feeling of exclusivity.

Competitions and giveaways, Free trial or demo, Limited-time free shipping or transfer between platforms or services, Limited-time freebies, First purchase coupon, buy one, get one free.

Example of sales promotions.

Barnacles

Highly loyal, low profitability. Marketing strategy - Invest to make them profitable

Market growth rate

How fast the industry or category is growing (usually measured in revenue growth).

Relative market share

How much bigger or smaller the company or brand's share is compared to competitors (usually measured in company revenue vs market/industry leader).

What are the 2 components of the BCG Growth Share Framework?

Market growth rate and relative market share.

SWOT analysis

Marketing plans start with an assessment of the state of the business, summarized in a SWOT (a matrix consisting of cells for strengths, weaknesses, opportunities, and threats). Internal - something the organization has or could address with enough time or money External -something in the environment that affects all players

What are the 4 types of behavioral groupings?

Occasion, Benefit, User Status, Usage Rate You want discrete effective segments and not lots of overlap.

Customer Funnel

One of marketing's jobs is to move customers down the tunnel, from awareness to advocacy. Marketer's use the 4Ps to move customers through the funnel.

Marketing Functions

One of marketing's main jobs is knowing the customer. Ex: wants & needs, attitudes & hopes, expectations, behaviors & preferences, and perceptions of alternatives.

Non-Financial Marketing Objectives

Other objectives to be achieved in a specific time frame that are believed to drive long term value. These objectives flow from the overall business objectives. Ex: Increase customer satisfaction, increase % of customers who see brand as innovative, increase % of employment offers accepted, increased willingness to recommend.

Dove Campaign for Real Beauty

Outside-In approach to

What are some factors beyond marketing which affect how companies and products are received?

Overall customer satisfaction, price & billing, project billing, and service & support. Employees also impact customer perceptions. Happy employees are important in delivering a good experience for customers.

What are the cells in the product/market expansion matrix?

Penetration, Product Development, Market Development, Diversification.

Butterflies

Potentially profitable but not loyal. Marketing strategy - Invest to get as much of their business as possible.

Marketing Mix: Marketer's Toolkit (4P's)

Product, Price, Promotion, Place.

Ex: One of UC Berkeley's marketing objectives is to be rated as the best public university every year by US News and other rankings. Which type of marketing objective is this?

SMART non-financial objective (In this scenario, we are not informed whether this fulfills the Aggressive and Realistic dimension of SMART. However, on the exam such information will be provided).

SMART acronym

Specific, Measurable, Aggressive (or Acheivable), Realistic (or Relevant), Time-bound

Marketing Orientation

Suggests a company's marketing concept & focus. (1) Inside-Out (2) Outside-In

Marketing Mix - ex: Apple watch

Target customers are people that want a healthier life.

Identify the positioning Ex: Crest toothpaste

Target: Parents Category/Frame of Reference: Toothpaste Key Benefit: Cleans kids teeth best Table stakes: "has fluoride" Differentiators: Because it's the only toothpaste that tastes good so they brush longer.

Identify the positioning Ex: Dove Self-Esteem Project

Target: Young people Category/Frame of reference: Education program Key Benefit: Builds positive body image Table stakes: Partnerships with leading experts in the fields of psychology, health, and body image. Differentiators: Program of evidence-based resources to help young people form healthy relationships, overcome body image issues, and be their best selves.

Marketing

The process of creating value for customers in order to capture value ($$) from them. It is an additive experience.

The Promotion P ex: Apple

Video "ad" targeting young age group, athletic customers, measuring performance, discussed health issues/quality of sleep, captures what's relevant, brand building.

Potential Profitability

Willingness to pay full price.