slides final

MARKETINGMAL PRACTICE

The cause and

the cure

Groupmembers

oKomal SohailoAsma ShahidoNazia AzamoAmina Zulfiqar

INTRODUCTION

INTRODUCTIONEver-narrower demographic segments

Ever-more-trivial product extensions

What jobs consumers need to get done

Purposeful products -- and genuine innovation.

INTRODUCTION30,000 new consumer products are launched each year

90% of them fail despite massive amounts of money spent trying to understand what customers want

INTRODUCTIONTo build brands that mean something to customers, you need to segment markets in ways that reflect how customers actually live their lives

AIMA way to re-configure the principles of market segmentation

Describe how to create products that costumer will consistently value &

Describe how new valuable brands can be built to truly deliver sustained profitable growth

BROKEN PARADIGMS OF MARKET SEGMENTATION

Quarter-inch drill, they want a quarter-inch hole

Marketers still benchmark the features and functions of their drill against those of rivals

Create more features and functions for their drill

They lose sight of the hole, and often solve the wrong problem


Segmenting markets by type of customer is no better.

Small, medium, and large enterprises Age , gender , or lifestyle bracketsNeeds of representative customers Create products that address those

needsThe problem is that customers don't

conform their desires to match those of the average consumer in their demographic segment


Address the needs of a typical customer, they cannot know whether any specific individual will buy the product

There is a better way to think about market segmentation and new product innovation

Adopt the customer's point of view


When people find themselves needing a job done they essentially “hire” products

Marketer's task is to understand what jobs periodically arise in customer’s lives

Creating products that make it easier and cheaper for customers to do something only matters if the customers want to do that something

DESIGNING PRODUCTS THAT DO THE JOB

Every job people need or want to do has a social, functional and emotional dimension.

40% of all milkshakes were purchased in the early morning

Long, boring commute and needed something to make the drive more interesting. While they weren't hungry, they knew that they would be by midmorning


They were usually in a hurry, and had at most one free hand to use. The milkshakes were competing against other drinks and breakfast foods like bagels, and were helping customers overcome boredom in their ride to work

The secret to selling more milkshakes wasn't to make them thicker or were more healthy, it was to have them pre-prepared for the early morning rush-hour


Knowing how to improve the product did not come from understanding the typical customer

It came from understanding the job done by specific customers


Job-defined markets are generally much larger than product category-defined markets

For example, P&G's stunningly successful Swifter was targeted at the job of cleaning floors, not at a demographic group of people who happen to mop

Asma Bibi

Komal Sohail

How a Job Focus Can Grow Product Categories

Cont’d

New growth markets are created when innovating companies design a product and position its brand on a job for which no optimal product yet exists.

1. Purpose Brands and Disruptive Innovations

Disruptive innovations are products or services whose performance is not as good as mainstream products, executives of leading companies often hesitate to introduce them for fear of destroying the value of their brands.

Cont’dPurpose branding has been the key, for example, to Kodak’s success with two disruptions.

The first was its single-use camera, a classic disruptive technology. Because of its inexpensive plastic lenses, the new camera couldn’t take the quality of photographs that a good 35-millimeter camera could produce on Kodak film.

The proposition to launch a single-use camera encountered vigorous opposition within Kodak’s film division. The corporation finally gave responsibility for the opportunity to a completely different organizational unit, which launched single-use cameras with a purpose brand—the Kodak FunSaver.

Cont’d(Sadly, a few years ago, Kodak pushed aside the FunSaver purpose brand in favor of the word “Max,” which now appears on its single-use cameras, perhaps to focus on selling film rather than the job the film is for. )

Kodak scored another purpose-branding victory with its disruptive EasyShare digital camera. The company initially had struggled for differentiation and market share in the head-on megapixel and megazoom race against Japanese digital camera makers (all of whom aggressively advertised their corporate brands but had no purpose brands).

Cont’d

Sharing fun, not preserving the highest resolution images for posterity, is the job—and Kodak’s EasyShare purpose brand guides customers to a product tailored to do that job. Kodak is now the market share leader in digital cameras in the United States.

Building Brands That Customers Will Hire

Cont’d

The brand of a product that is tightly associated with the job for which it is meant to be hired a purpose brand.

FedEx became a purpose brand—in fact, it became a verb in the international language of business that is inextricably linked with that specific job. It is a very valuable brand as a result.

Cont’dMost of today’s great brands—Crest, Starbucks, Kleenex, eBay, and Kodak, to name a few—started out as just this kind of purpose brand. The product did the job, and customers talked about it. This is how brand equity is built.

Brand equity can be destroyed when marketers don’t tie the brand to a purpose.

Cont’dWhen they seek to build a general brand that does not signal to customers when they should and should not buy the product, marketers run the risk that people might hire their product to do a job it was not designed to do.

clear purpose brand is like a two-sided compass.

1. One side guides customers to the right products.

2. The other side guides the company’s product designers, marketers, and advertisers as they develop and market improved and new versions of their products.

Cont’d

A good purpose brand clarifies which features and functions are relevant to the job and which potential improvements will prove irrelevant.

The price premium that the brand commands is the wage that customers are willing to pay the brand for providing this guidance on both sides of the compass.

Cont’d

The need to feel a certain way—to feel macho, sassy, pampered, or prestigious—is a job that arises in many of our lives on occasion.

When we find ourselves needing to do one of these jobs, we can hire a branded product whose purpose is to provide such feelings.

Cont’d

Gucci, Absolut, Montblanc, and Virgin, for example, are purpose brands.

They link customers who have one of these jobs to do with experiences in purchase and use that do those jobs well.

These might be called aspirational jobs.

In some aspirational situations, it is the brand itself, more than the functional dimensions of the product, that gets the job done.

Nazia Azam

Asma Bibi

Amina Zulfiqar

Nazia Azam

Journey of Successful Brands

Successful brands - one product and one job.

How Long Successful Brands Can Survive ?

Brands if not extended can become extinct or easily imitated by competitors.

Example: Crest lost its distinctiveness

Extending Brands

Stage 2:

Stage 1: Brand

Purpose Brand

Endorser Brand

Figure 1: Brand Extending Hierarchy

Purpose Brands

Brands can be extended into products hired for same jobs – “Purpose brands”.

Example: Sony’s Walkman product line

Endorser Brands

Brands can be extended into products hired for different target markets - “Endorser Brands”.

Endorser Vs Purpose Brands

Figure 2: Endorser Vs Purpose Brands

Issue with Endorser Brand!

Step: 1Successful Brand (One product one

job)

Step 2:Endorser

Brand (One brand many

jobs)

Step 3:Has a General

Sense of Quality

Step 4:Lacks

Customer Guidance

Step 5:Causes

Customer Dissatisfaction

Step 6:Leads to Brand

Distrust and Failure

Figure 3: The Endorser Brand Trap

The Question is.…

How to escape the endorser brand trap?

Avoiding Endorser Brand Trap

• Having a purpose brand along the side of an endorser brand range.Example Milwaukee

• Division of endorser brand into purpose brands for each job. Example Marriott

Extending Brands without Destroying Them

Figure 4: Extending Brands Without Destroying

Stage 3:

Stage 2:

Stage 1: Brand

Purpose Brand

Endorser Brand

Purpose alongside of Endorser Brand

Endorser divided into Purpose Brands

Why purpose brands so rare?

• Focusing too much on “job”, highlights the jobs for which the product cannot be hired for.

• Scared of focus, Marketer’s create subtle differentiations that do not help customers at all.

• Let’s see it through this example

For the first Time

Presents…

Idea: Amina

Director and Script: Asma

Cast

Qaiser

Amina

Komal

Bilal

Mrs. Dee

Dee DeeDexter

Mr. Dee

The Need…

Your dad and I have finally decided to buy you a car… If you’ll graduate this

year

Seriously Mom!!!!

She and graduate… Impossible

I’m not

You jealous hunh!

Best of luck Dee

Dee

Graduation Day…

Now my car

please!

Information Collection…

Safe with a must hands-

free telephone

GM’s OnStar service that called police

and home

Automatic car service reminder

system

Service could be delivered as a prepaid

gift

The car should be

stylish, sweet and fun to

drive

The Alternatives…

SenatorNeon

Accord

Sonata

Cavalier

Escape

Taurus

Camry

Avalon

Corolla

Prizm

Sentra

Civic

Wow!

Dexter !!!!! Stay out of

it

Or may be something like this……..

The Evaluation Process…

I want !

But that should be

stylish, safe

It can be Senator,Camry orCavalier

No! No! It should be Taurus or

PrizmMy own

Car!

Neon

Escape

Corolla

Accord

Camry

Taurus

PrizmCivic

The Final Choice…

Dad!!!!

We have decided that you should

continue riding you scooty

Ahm… Dee Dee! After

considering various options

Poor victim of marketer’s Laboratory!Hahaha

The End

slides final

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