Download The Role of Marketing in Our Lives

The Role of Marketing in Our
Lives
KWHS Teacher Seminar
Professor David Reibstein
The Wharton School
October 26, 2013
What is Marketing?
What is marketing?
• First, marketing is ‘OUTSIDE IN’
• (put pictures here)
• The task is understanding
• What needs exist?
• For example, showers in the UK—the lack water pressure, temperature stability, speed to
heat, etc.this lead to the Aqualisa Quartz
• What is important to the customer
• For example, Apple, in designing their new iPad, had to find out how important was battery
life vs. weight of the device vs. quality of the pictures.
• Who might be in the greatest need?
• Not everyone has a need nor the same needs. Who has the greatest needs/less served
currently.
Next steps
• Segmentation—not every wants the same thing
• Segmentation for shampoo
• Segmentation for gasoline (Shell)
• Targeting—Identify who you want to target and who you do not
Definition of Positioning
• Positions are
• perceptual
• based on benefits sought by customers
• never wrong
• The customers’ perception of each brand relative
to the others in the market (and often relative to
an ideal) on important dimensions to the customer
Why Positioning?
• It is an apriori decision by the firm as to
how they would like the market to
perceive the brands/products they
have to offer.
• For a portfolio it is the desire to
position the brands to non-redundant
perceptions in order to appeal to
different parts of the market.
Differentiating with Positioning
• Position thyself with
• Services
• Distribution
• Product
• Relationships
• Experience
• Branding
Position
• With a target customer in mind
Differentiating Financial Services
• Unique approach
• Unique position
• Service and image
You’re Not On Wall Street Anymore...
You’re at Janus
American Express:
Platinum
Gold
Green
Optima
Blue
Let’s do a comparison between
brands …
•
Now that we have the STP, we develop our
Marketing Mix, the 4 P’s
• Product and services (package, brand, warranty, …)
• Promotion (advertising, key words, sales force, public relations…)
• Place (distribution)
• Price
Product/services (package, brand,
warranty,…)
• iPod
• Perrier
How does a brand help the firm?
 The consumer
 Quick recognition – reducing search costs
(tuna auction in Japan)
 Associations in the consumer’s mind
 Inferred attributes
 Gucci watch – fashionable, expensive, durable?
 Intel – latest technology
 Nordstrom’s – great service
 Consistency
 Simplifies decision process
How does a brand help the firm?
• The producer
•
Premium price or added market share
•
Faster recognition, thereby reduces advertising necessary
•
Speed of new product introductions
•
Power with trade (Hormel)
•
Durable asset (PanAm, Polaroid)
•
Ease brand extensions
•
Competitive barrier
•
Benefits Human Resource efforts
•
Balance sheet
Brand Equity as Financial Value
Price
p’
p
q
q’
Quantity
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Brand’s role in terms of the firm’s value
• (Erika, put my slides in here showing latest Interbrand values, then
remove the other slides that follow)
Best Global Brands 2010
Data: Interbrand, JPMorgan Chase & Co., Citigroup, Morgan Stanley, BusinessWeek
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Promotion
• We generally think about advertising, but it also includes all forms of
communication—PR, sales force, banner ads, key words, product
placement, etc.
• The decisions made are not just content, but:
•
•
•
•
What to say
Where to say it
How much money to put behind it
How to measure it
Place
• Where to put your products
• Everywhere is not always best
• Needs to match your target’s shopping behavior
• Not easy to get on “the shelf”
Price
• Particularly difficult
• Not to be driven by costs alone, but what is worth to the customer
• Problem is what it is worth differs significantly across customers
• Skim vs. Penetrate
Your students are marketers
• When they graduate, they have a product to sell—THEMSELVES
• They need to understand
•
•
•
•
Who is their target?
How to position themselves versus others?
What is best to communicate?
And, maybe, at what price
• Marketing is everywhere in our lives