building competitiveness via marketing
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Building Competitiveness via Marketing. Kirk Smith 19 January 2013. Session Topics. Who are your competitors…really? How do customers choose between options? Building a marketing strategy (STP) Branding considerations Free-form marketing Q&A (time allowing). Some stuff I could buy. - PowerPoint PPT PresentationTRANSCRIPT
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Building Competitiveness via Marketing
Kirk Smith19 January 2013
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Session Topics
1. Who are your competitors…really?2. How do customers choose between
options?3. Building a marketing strategy (STP)4. Branding considerations5. Free-form marketing Q&A (time
allowing)
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Some stuff I could buy
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2013 Jaguar XK Convertible
$138,000
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2013 Subaru Legacy
$20,295
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2013 Dodge Durango SXT
$29,495
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1987 Dodge Ram 1500 2WD
$750.00
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Could each of those four cars be sold?
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Do these cars compete with each other?
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Topic 1 Review
Who are your competitors?
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What sort of person might buy the Jag, the Subaru, the Dodge, or the beater truck?
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So…
Different sorts of people (or companies) want different sorts of things from the same product category.
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Or, in marketing lingo…
Preferences are segment-specific.
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Timeout:
What if you try to create a product (or service) that appeals to everybody?
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Next Topic:
How do customers choose one product over the other?
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On one flip chart page, list your:
1. Vehicle2. A couple of competitive vehicles3. A couple of possible segments4. Pick a target segment5. List of reasons someone from that target
might choose your vehicle
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What is Value?
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How does your own organization (or this one, if you wish) create value for customers in
one of your key target markets?
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The Pepsi Challenge (and a break)
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Our Challenge Results
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A dollar does not always equal a dollar…
• I will cut my own grass to save $15, but I won’t cut my neighbor’s to make $15.
• Benefit dollars don’t always equal cost avoidance dollars.
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Communication can drive the decision
On a scale of 1-7 with 1 “not likely at all” and 7 “very likely,” how likely would you be to buy one pound of 80% lean hamburger for $2.49?
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Something else to consider…
• I will drive 10 miles to a store that has a car stereo on sale for $120 instead of buying the identical item for $140 at the store just down the street. Why?
• I will not drive 10 miles to the same electronics store to buy a giant LED HDTV for $4520 if I can buy it at the close store for $4540.
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So maybe value isn’t just simple math.
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Prospect Theory
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A sample application.
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Prospect Theory insights for how the Steelheads should present
• Their benefits and costs
And refer to
• The competition’s benefits and costs
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Timeout: Other Non-Marketing(?) Applications
• Performance Reviews• Sales Negotiations• Employee Benefits Increased/Decreased
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To Summarize…
• Value = perceived benefits – perceived costs• Losses loom larger than gains• Value estimates are relative to the starting point• People naturally keep mental accounts.
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Timeout: Commoditization
What happens to perceived value as a market slips towards a commodity?
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Source: “Fighting Commoditization….” by Kamran Kashani, in Perspectives for Managers, Oct 2006.
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Another Timeout:
What if your product is a service? What is good service?
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Service Benefits (Quality)
1. Tangibles2. Reliability3. Responsiveness4. Assurance5. Empathy
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Topic 2 Review:
How do customers choose between options?
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Two Questions:
1. What is position in marketing terms?2. How does perception of value relate to
position?
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Two factors influence position
1. Physical attributes: What’s really there2. Your marketing message: What you say is
there
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A Note About Physical Attributes and Competitive Advantage:
• You don’t have to be best at absolutely everything to succeed long term…
• You do have to be perceived best at something your target market feels is very important and “in the game” everywhere else that matters
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The tactics trap at work:
Segment, then target, then position
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Topic 3 Review:
Building a Marketing Strategy
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Brand Considerations
1. Do you want a brand name or should you go generic?
2. What are the two basic options for brand names?
3. Should you use the family (or umbrella) brand or create a stand-alone brand?
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How can tactical marketing skill create sustainable competitive advantage for your
organization?
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Topic 4 Review:
Branding
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Where have we been?
• What’s your competition?• How customers choose: value• Segment, then target, then position• Branding
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Final Exam: Is this a good ad and how do you figure that out?
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Marketing Q&A Free-For-All