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Successful Marketing Strategies
Part 1
Economic Empowerment Fellows
October  2014
Today’s Agenda
• What is Marketing?
• Why do organizations need marketing?
• What are the critical marketing decisions for
success?
What is Marketing?
• Evaluation of trends and opportunities
• Deep insights about customer needs and
value
• Knowledge of competitors
• Segmentation, targeting, and positioning
• Effective use of Product, Price, Place, and
Promotion – the “4 Ps”
• Effective relationship management
strategies
An Integrated Marketing Viewpoint
• Be RESPONSIVE to customers
• Provide RELEVANCE to customers
• Develop RELATIONSHIPS with customers
• Capture RETURNS for the organization
Why do Organizations Need
Marketing?
• To create awareness of products and
services
• To influence the perceptions of the
organization among key constituents
• To ensure that once the hard work of
service and product development is
done, those services and products will
be effectively used (stay in business)
Three Levels of Marketing Decisions
• Strategic: Proactive decisions to chart the
company’s efforts in the market
– Segmentation, targeting, positioning
• Functional:
– 4 Ps
– R&D/Marketing interactions
– Moments of truth (influential interactions between customer
and brand)
• Tactical
– Build a Website
– Attend trade shows
– Distribute through outdoor markets
Strategy decisions are VERY difficult
• Feels risky to “narrow your options”
• Why not cater to everyone’s needs?
The Flip Side:


NOT narrowing your options means
spreading your resources too thin
Catering to everyone means meeting no
customers’ needs particularly well
How does your market function?
How should you prioritize?
1. What is the product being considered?
2. What market segments exist and what are their
needs?
3. What segment will you focus on and why?
4. How do product attributes lead to benefits
needed by customers?
5. Which product attributes/marketing actions are
most important for creating a competitive
advantage? [Tomorrow]
Converting Product Attributes
Product
Attributes
Executional
Framework
Customer
Benefits
Core
Value
An example: Milk
Attributes
Benefits
Low fat
Healthy
Calcium
Ingredients
Vitamins
Personal Values
Self-respect
Wisdom
Healthy bones Comfortable life
Wisdom
Good taste
Pleasure
Happiness
Enhanced
Excitement
sexual ability Fun
Pleasure
Benefits/ Segments Table
Benefits 1
Segment
A
Segment
B
Segment
…
Segment
n
**
-----
**
**
-----
***
**
**
***
**
-----
***
*
Important
Benefits 2
*
Valued
Benefits …
***
Critical
Benefits n
-----
WHAT IS CUSTOMER VALUE?
[From the Customer’s Perspective]
Benefits
- Sacrifice
Value
Determinants of Delivered Value
Image benefit
Personnel benefit
Services benefit
Total
customer
benefit
Product benefit
Customer
delivered
value
Monetary cost
Time cost
Energy cost
Psychic cost
Total
customer
cost
Using the Kano Concept
Satisfaction
Linear
“Delight”
Low Level of
Attribute
High Level of
Attribute
“Expected”
Spoken vs. Unspoken
Dissatisfaction
Supply Chain for Auto Industry
Suppliers
Car
Manufacturers
Car
Dealers
-raw materials
-components
-production equipment
-services
Customers
-personal
consumption
-business use
(fleets, etc.)
© Mohr, Sengupta, Slater 2009
Developing Customer Insights
◦ Ask customers; ask non-customers; ask competitors’
customers
◦ What am I doing well?
◦ What could I be doing better? (differently?)
◦ What could I do differently to better meet your needs?
◦ How is their business going?
◦ If you could make one of their problems go away, what
would it be?
◦ Customer visits
◦ Listening
◦ Observation
◦ Customer satisfaction studies
What are your top three business strategy
and/or marketing challenges / questions?
• How do customers make decisions? [touch points]
McKinsey Quarterly, 2009/2012
Successful Marketing Strategies
Part 2
Economic Empowerment Fellows
October  2014
Today’s Agenda
• What are the critical marketing decisions for
success?
–
–
–
–
Segmentation and Targeting
Positioning
Value Propositions
Communicating to Target Audiences
For your organization:
• Briefly describe how your products/ services are
positioned(compared to competitors) for your
customers/clients
• What are your top three business strategy
and/or marketing challenges/questions?
• How do you create awareness of your company
with your customers?
• How important is your online presence/website
to your organization/why?
What value do
I offer them?
Who are my
customers?
The Strategy
Sweet Spot
How can I create
and deliver that value?
Part 2: Key Strategy Decisions – Positioning &
Communication
Discussion #1: Competition & Competitive Advantage
Page 8
Multi-Attribute Model with Competition
Our
Comp 1 Comp 2
company
Scalability (8)
10
5
5
Security (6)
8
5
6
Ease of Use (7)
3
6
8
(paren) = importance
Numbers = scores (10 = highest score)
Discussion #2: Positioning
How are you currently positioning your product/ service?
[Choose one product]
Page 9
Strategic Insight to Positioning
F
E
Company’s
Offerings
Customers’
Needs
A
Our Points
of
Difference
B
D
Points
of
Parity
C
Their points
of
difference
G
Competitor’s
Offerings
Urbany, J. and Davis, J.
“Strategic Insight in Three
Circles” Harvard Business
Review Nov. 2007
Sustainable Competitive
Advantage
•
•
•
•
Advantage over competitors
Gained through superior capabilities (core
competencies)
Gained through unique product benefits or
price
Providing greater customer value
Discussion #2: Differentiation and Value Propositions
Select the most commonly purchased alternative (competitor)
to your product. Does your organization have an advantage
over this competitor? What is it? Is it a sustainable advantage?
Page 10
Value Proposition:
Drives the Communication Strategy
• Value Propositions:
– Capture the essence of what problem you
solve and how you solve it (relevance);
– Are compelling: evidence; data; testimonial
The Value Proposition
For <target audience>,
who <emotional benefit>,
the <value offering> provides <key
functional/economic benefit(s)>
that is <point of differentiation>
Discussion #3: Delivering on the Value Proposition Promise
Proof Points: Reasons to Believe
Page 11
Proof Points: Reasons to Believe
• Provides Relaxation
& Enjoyment
– Room is 25% larger
– Pool/whirlpool
– Thoughtful amenities
(in-room hair dryer)
• Enables Productivity
–
–
–
–
High speed Internet
Small meeting room
Express check out
Business services
For your organization:
• Briefly describe how your products/ services are
positioned(compared to competitors) for your
customers/clients
• What are your top three business strategy and/or
marketing challenges/questions?
• How do you create awareness of your company with
your customers?
• How important is your online presence/website to your
organization/why?
Discussion #4: Other Marketing Factors: Communication
How are you currently creating awareness for your product/
service?
Page 12
Communication Considerations
 Now, think about marketing communications from an efficiency
perspective:
 Objectives (awareness, image, leads, inquiries)
 Target Market
 Wasted coverage
 Measuring performance/effectiveness
 Monitor your online presence
 Monitor your competitors’ online presence
[Inbound Marketing by Halligan and Shah, 2010]
 Do a break-even analysis on the cost of the campaign
 Deliver on moments of truth (touch points)!!
Discussion #5: Being Strategic about Marketing Communications
Answer these questions:
1) Your target audience?
Page 13
Communication Questions (this is a Creative Brief):
•
•
•
•
•
•
•
•
•
What is the product or service or idea?
Who/what is the competition?
Who are we talking to? [Target audience]
What customer need/problem do we address?
What do we want the customer to do/ how do we want
the customer to respond? [Objective]
What does the customer currently think of us?
What one thing do we want them to believe?
What can we tell them that will make them believe this?
[Proof points; support]
What is the theme/ tonality of the communication?
What are your top three business strategy
and/or marketing challenges / questions?
• How can you strategically utilize social media?
– Assess: Are we making the right investments in
products/services, markets, campaigns, employees, partners?
– Segment: Are we reaching the intended audiences—and are
we listening?
– Relate: What is driving social media activity, behavior and
sentiment?
– Discover: What new ideas can we discover?
(from IBM White Paper, 2013)
Best Practices in Marketing Today
• Content marketing
– “Thought leadership”
• Online and social media marketing
– Who, why, strategy, results
[Inbound Marketing by Halligan and Shah, 2010]
• Triple Bottom Line:
– Social Responsibility
– Environmental impacts
– Organization’s Goals; e.g., Profit
What is Content Marketing?
Content marketing is a marketing
technique of creating and
distributing valuable, relevant and
consistent content to attract and
acquire a clearly defined audience –
with the objective of driving
profitable customer action.
(Definition from the Content Marketing Institute)
Importance of Content Marketing
•
80% of business decision makers prefer to get company
information in a series of articles vs. an advertisement
–
–
70% say content marketing makes them feel closer to the
sponsoring company
60% say that company content helps them make better product
decisions.
“Think of this – what if your customers looked forward to
receiving your marketing? What if when they received it, via
print, email, website, they spent 15, 30, 45 minutes with it?”
(from contentmarketinginstitute.com; results from Roper Public Affairs research)
Create Content Simply and Quickly
• Blog posts
• White papers
(http://www-01.ibm.com/software/analytics/solutions/customeranalytics/social-media-analytics/)
•
•
•
•
•
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Videos
Webinars
Podcasts
Webcasts
Stories on website (http://www.umt.edu/)
Stories for publications
http://contentmarketinginstitute.com
Learning about Content & Storytelling
from Coca-Cola
https://www.youtube.com/watch?v=LyDf-twhpCo
Did you learn these marketing principles?:
•
•
•
•
•
•
•
•
•
•
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Be responsive; Develop relationships; Deliver relevance
Convert product features to customer benefits
Analyze customer-perceived value: Benefits/Sacrifice
Understand customer “pain” points and expectations
Diagram the decision journey: From Trigger to Repeat
Purchase
Determine the role of partners/collaborators
Position and create a Sustainable Competitive Advantage
Write a compelling Value Proposition &
Deliver on the Promise!
Be strategic about Marketing Communications
Get MORE out of Social Media
Learn to tell stories
SummaryEssentials For Marketing Success
• Identify key market segment(s)
– rather than diluting efforts across multiple segments
• Articulate a compelling value proposition
• Have internal “house in order” prior to
advertising
• Have staying power with marketing campaigns
• Measure and assess returns
THANK YOU!