Chapter 8

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Chapter 8

  1. 1. CHAPTER 8 DISCUSSION QUESTIONS1) Define marketing.2) What % of small business owners say that their companies do not need marketing because their products/services sell themselves? 3) Define guerrilla marketing strategies. 4) What 4 objectives should a guerrilla marketing plan accomplish? 5) Define target market. 6) What do most marketing experts contend is the greatest marketing mistake most small businesses make? 7) To be customer-driven, an effective marketing strategy must be based on what? 8) What is the vehicle for gathering the information that serves as the foundation for the marketing plan? 9) Why cant small companies afford to make marketing mistakes? 10) What are the 4 steps to successful market research? 11) Define individualized (1-to-1) marketing.12) State the 12 guerrilla marketing principles. 13) What is any commercial news covered by the media that boosts sales but for which a small company does not pay? 14) What is a marketing concept designed to draw customers into a store by creating a kaleidoscope of sights, smells, & activities to entertain? 15) What is a key customer benefit of a product/service that sets it apart from the competition? 16) More than half of Facebook users are over what age? 17) What is a frequently updated online personal journal that contains a writers ideas on a multitude of topics? 18) Systematically creating the optimum experience for the customers every time they interact with the company is known as what? 19) What is the philosophy of producing a high quality product/service & achieving quality in every aspect of the business & its relationship with the customer? 20) What are the 4 Ps of marketing? 21) As described in Figure 8.2, what are the 5 characteristics of a great product?
  2. 2. SHOULD A BRAND APPEAL TO EVERY TYPE OF CONSUMER?
  3. 3. TO BE SUCCESSFUL, SHOULD A BRAND APPEAL TO EVERYBODY?•85% OF BEER SOLD INAMERICA IS LIGHT LAGER. •BEST SELLING BEER IS 60•BUDWEISER IS A 5% ABV & MINUTE IPA.11 IBU LIGHT AMERICAN-STYLE LAGER. •6% ABV & 60 IBU.•IT IS MADE WITH UP TO 30% •$8.99/6 PACK BOTTLES.RICE.•$5.99/6 PACK CANS.
  4. 4. IT DEPENDS ON HOW YOU DEFINE “SUCCESS.”-BUDWEISER, & MOST BIG BREWERIES, IS SUCCESSFUL IN SALES BUT THEYARE NOT SUCCESSFUL IN CREATING A QUALITY PRODUCT.-DOGFISH HEAD, & MOST CRAFT BREWERIES, IS SUCCESSFUL IN CREATING AQUALITY PRODUCT BUT COMPARED TO BUDWEISER NOT IN SALES.-A SMALL BUSINESS SHOULD BE MORE CONCERNED WITH PROVIDING AQUALITY PRODUCT/SERVICE & STAYING TRUE TO THAT PRODUCT/SERVICE.-CREATE THE PERCEPTION THAT THERE IS NO OTHER COMPANY/PRODUCTON THE MARKET LIKE YOURS.
  5. 5. BRANDING-THE EFFORTS INTENDED TO IDENTIFY THE GOODS & SERVICES OF ONE SELLER & TODIFFERENTIATE THEM FROM THOSE OF OTHER SELLERS.-IT’S ABOUT GETTING PROSPECTIVE CONSUMERS TO SEE YOU AS THE ONLY ONE THATPROVIDES A SOLUTION TO THEIR PROBLEM.-SIMILAR TO BRANDING ON THE RANCH.-USED TO DIFFERENTIATE YOUR COMPANY (COW) FROM ALL OTHER COMPANIES (CATTLE).-USED BY CORPORATIONS TO CREATE UNIQUE & ATTRACTIVE PERSONALITIES FORTHEMSLEVES.-CORPORATIONS’ BRAND IDENTITIES ARE PERSONIFICATIONS OF WHO THEY ARE & WHERETHEY’VE COME FROM.-IT IS ABOUT CREATING & EVOLVING CUSTOMER PERCEPTIONS OF THEMSELVES.-ENABLES THEM TO CREATE INTELLECTUAL & EMOTIONAL BONDS WITH THE GROUPS THATTHEY DEPEND ON: -CUSTOMERSS & EMPLOYEES
  6. 6. BRAND DRIVERS-SLOGANS, LOGOS, SYMBOLS, MACOTS, CELEBRITYENDORSEMENTS, ETC. TO REINFORCE “HUMANQUALITIES.”
  7. 7. EFFECTIVE BRANDING WILL:-DELIVE A CLEAR MESSAGE.-CONFIRM YOUR CREDIBILITY.-CONNECT YOUR TARGET PROSPECTS EMOTIONALLY.-MOTIVATE THE BUYER.
  8. 8. WHO IS CURRENTLY THE BEST-PERCEIVED BEER BRAND AMONG U.S. ADULTS (21+) NATIONWIDE?
  9. 9. KEY INGREDIENTS TO CRAFT BEER SUCCESS
  10. 10. AN AUTHENTIC STORY-CRAFT BEER BRANDS HAVE AN AUTHENTIC STORY AT THEROOT OF THEIR COMMUNICATION.-MORE IMPORTANTLY, THEY LIVE IT. -EMPLOYEES AREN’T JUST EMPLOYEES, THEY REPRESENT THE BRAND.
  11. 11. TAKE ADVANTAGE OF YOUR HOME BASE-SUCCESSFUL CRAFT BEER BRANDS FOCUS THEIR EFFORTS AROUNDTHEIR BREWERY WHERE THEIR STORY IS MORE MEANINGFUL TOCONSUMERS.-IT’S EASIER TO ACTIVATE A BRAND’S STORY IN A HOME MARKET: -IT’S REPEATED MORE OFTEN (BY BREWERY EMPLOYEES). -IT IS REINFORCED BY BREWERY TOURS.-CRAFT BREWERS ARE MORE PROFITABLE IF THEY SELL A HIGHER %OF THEIR BEER IN THEIR HOME MARKET.-EXPANSION IS NOT MADE UNTIL THERE IS SUFFICIENT CONSUMERDEMAND IN ADJACENT MARKETS.
  12. 12. KEY INGREDIENTS TO CRAFT BEER SUCCESS
  13. 13. CREATE CONVERSATION OPPORTUNITIES-CRAFT BEER BRANDS ARE BUILT ON CONVERSATIONS. ONECONSUMER AT A TIME.-THE STORY & THE PASSION IN WHICH IT IS PRESENTED IS CRITICAL.-CRAFT BEER CONSUMERS RESPOND TO BRANDS THAT HAVE A DEEPPASSION FOR THEIR BUSINESS.-CONSUMER INTERACTIONS ARE BEST WHEN THEY ARE WITH THEBRAND’S “RELIGIOUS ZEALOT.” -JIM KOCH: SAM ADAMS -SAM CALIGIONE: DOGFISH HEAD-CONVERSATION OPPORTUNITIES: -BEER FESTIVALS -ON-PREMISE PROMOTIONS -OFF -PREMISE HAND-SELLS -SOCIAL MEDIA
  14. 14. HAVE FEET ON THE STREET-CRAFT BEER BRANDS NEED PEOPLE IN THE MARKET TOBUILD DISTRIBUTION & INTERACT WITH CONSUMERS.-REPRESENTATION IN THE MARKET ADDS TO BRANDAUTHENTICITY.-THE “FEET ON THE STREET” ARE THERE FOR SALES &MARKETING EXECUTION.
  15. 15. EXPLOIT THE POWER OF INFLUENCERS-THE ONLY CRAFT BEER BRAND THAT ADVERTISES NATIONALLY IS SAMADAMS.-MOST CRAFT BEER BRANDS RELY ON SOCIAL MEDIA & WORD OF MOUTHTO ADVERTISE THEIR BRAND.-INFLUENCER CONSUMERS ARE VIEWED AMONGST FRIENDS & FAMILY ASKNOWING THE TRENDS, WHAT’S NEW & EXCITING, & CREDIBLE.-WAYS TO REACH INFLUENCERS: -SAMPLING. -PRODUCT/BRAND EXPERIENCES (TOURS, FOOD & BEER PAIRING DINNERS, ETC.) -MAKING THEM FEEL THEY HAVE A SAY IN THE BRAND (MUGCLUBS)
  16. 16. ACTIVATE THE ICON-CRAFT BRANDS MUST BE CREATIVE & BRING THE SPIRITOF THE BRAND TO LIFE.-A GREAT WAY FOR CRAFT BEER BRANDS TO DO THIS ISTHROUGH BRANDED EVENT.
  17. 17. BRANDING SUMMARY-TO SUCCEED IN BRANDING YOU MUST UNDERSTAND THE NEEDS & WANTSOF YOUR CUSTOMERS & PROSPECTS.-YOUR BRAND RESIDES IN THE HEART & MINDS OF YOUR CUSTOMERS &PROSPECTS.-IT IS THE SUM TOTAL OF THEIR EXPERIENCES & PERCEPTIONS (SOME YOUCAN INFLUENCE, BUT SOME YOU CAN’T).-A STRONG BRAND IS INVALUABLE AS THE COMPETITION FOR PROSPECTSINTENSIFIES.-BRANDING IS A FOUNDATIONAL PIECE IN YOUR MARKETINGCOMMUNICATION.
  18. 18. WHAT IS MARKETING?
  19. 19. MARKETING-THE ACTIVITY, SET OF INSTITUTIONS, & PROCESSES FOR CREATING, COMMUNICATING, DELIVERING, & EXCHANGING OFFERINGS THAT HAVE VALUE FOR CUSTOMERS, CLIENTS, PARTNERS, & SOCIETY AT LARGE. (AMERICAN MARKETING ASSOCIATION)-IT IS ABOUT FIGURING OUT WAYS TO DRUM UP SALES. 3 MAIN PURPOSES1) BUILD AWARENESS.2) BUILD ADOPTION.3) BUILD LOYALTY.
  20. 20. BRAND LOYALTY-A CUSTOMER’S COMMITMENT TO REPURCHASE A COMPANY’S PRODUCT/SERVICE.-ACQUIRING A NEW CUSTOMER COSTS 5X MORE THAN KEEPING AN EXISTING CUSTOMER. FACTORS INFLUENCING BRAND LOYALTY1) PERCEIVED VALUE2) BRAND TRUST3) SATISFACTION
  21. 21. -ALL FOUR P’S MUST REINFORCE THE IMAGE OF THEPRODUCT/SERVICE THE COMPANY REPRESENTS TO THE POTENTIAL CUSTOMER.
  22. 22. PRODUCT-ANY ITEM OR SERVICE THAT SATISFIES THE NEED OF ACUSTOMER.
  23. 23. PLACE-THE METHOD OF DISTRIBUTION OF A PRODUCT/SERVICE FROM THE MANUFACTURER TO THE CONSUMER.-4 COMMON CHANNELS OF DISTRIBUTION FOR CONSUMER GOODS1) MANUFACTURER TO CONSUMER2) MANUFACTURER TO RETAILER TO CONSUMER3) MANUFACTURER TO WHOLESALER TO RETAILER TO CONSUMER*4) MANUFACTURER TO WHOLESALER TO WHOLESALER TO CONSUMER*MOST COMMON CHANNEL OF DISTRIBUTION
  24. 24. PRICE-KEY FACTOR IN CUSTOMER’S DECISION TO BUY.-PRICE FOR A PRODUCT/SERVICE DEPENDS ON 3 FACTORS:1) A COMPANY’S COST STRUCTURE2) AN ASSESSMENT OF WHAT THE MARKET WILL BEAR3) THE DESIRED IMAGE THE COMPANY WANTS TO CREATE IN ITS CUSTOMERS’ MINDS
  25. 25. PROMOTION-INVOLVES BOTH ADVERTISING & PERSONAL SELLING.ADVERTISING:-COMMUNICATES TO CUSTOMERS THE BENEFITS OF APRODUCT/SERVICE THROUGH SOME MASS MEDIUM (TV,PRINT, RADIO, WEB).PERSONAL SELLING:-THE ART OF PERSUASIVE SALES ON A ONE-TO-ONEBASIS.
  26. 26. MARKETING CONCEPT-ACHIEVING ORGANIZATIONAL GOALS DEPENDS ON KNOWING THE NEEDS & WANTS OF OF TARGET MARKETS AND DELIVERING THE DESIRED SATISFACTIONS.TARGET MARKET-A GROUP OF CUSTOMERS WITH SIMILAR NEEDS THAT FORMS THE FOCUS OF A COMPANY’S MARKETING EFFORTS.-MARKETING EFFORTS MUST BE PRECISELY FOCUSED ON THE GROUP(S) OF EXISTING & PROSPECTIVE CUSTOMERS WHO ARE MOST LIKELY TO BUY YOUR PRODUCTS/SERVICES.-IF YOU ATTEMPT TO REACH EVERYONE, YOU WILL END UP REACHING NO ONE.DEMOGRAPHICS-THE STATISTICAL CHARACTERISTICS OF HUMAN POPULATIONS USED TO IDENTIFY MARKET SEGMENTS. -AGE -INCOME -SEX -EDUCATION -RACE -EMPLOYMENTPSYCHOGRAPHICS-VARIABLES CLASSIFYING POPULATION GROUPS ACCORDING TO PSYCHOLOGICAL VARIABLES. -INTERESTS -VALUES -LIFESTYLE
  27. 27. MARKETING IS ALSO ABOUT THE ART OF PERSUASION
  28. 28. Yawning is a surprisingly powerful act. Just by reading the two yawns inthe previous two sentences--and the two additional yawns in thissentence--a good number of you will probably yawn within the next fewminutes. Even as Im writing this Ive yawned twice. If youre reading thisin a public place, and youve just yawned, chances are that a goodproportion of everyone who saw you yawn is now yawning too, and agood proportion of the people watching the people who watched youyawn are now yawning as well, and on and on, in a ever-widening,yawning circle.Yawning is incredibly contagious. I made some of you reading this yawnsimply by writing the word "yawn". The people who yawned when theysaw you yawn, meanwhile, were infected by the sight of you yawning--which is a second kind of contagion. They might even have yawned ifthey only heard you yawn, because yawning is also aurally contagious: ifyou play an audio-tape of a yawn to blind people, theyll yawn too. Andfinally, if you yawned as you read this, did the thought cross your mind--however unconsciously and fleetingly--that you might be tired? I suspectthat for some of you it did, which means that yawns can also beemotionally contagious. Simply by writing the word, I can plant a feelingin your mind.
  29. 29. -THE TRUE ESSENCE OF MARKETING IS PERSUASION.-THE ABILITY TO PERSUADE THE CUSTOMER INTO:1) PARTING WITH ONE OF THEIR MOST PRIZED POSSESSIONS ($)2) PURCHASING A PRODUCT/SERVICE THAT THEY MAY NOT KNOW THEY WANT.-MARKETING = SELLING & IF YOU CAN’T PERSUADE THEN YOU CAN’T SELL. 2 KEYS TO PERSUASION1) SHOES: WALK IN YOUR CUSTOMER’S SHOES2) EYES: SEE THROUGH YOUR CUSTOMER’S EYES.
  30. 30. MARKETING CRAFT BEER-CRAFT BEER BRANDS DON’T HAVE BIG ENOUGHMARKETING BUDGETS TO BUILD AWARENSS, ADOPTION,& LOYALTY THE TRADITIONAL WAY.-CRAFT BRANDS HAVE TO BE REMARKABLE* SO THATCONSUMERS EXPERIMENT & RECOMMEND TO OTHERS(WORD OF MOUTH). *THE REMARKABLE NATURE NEEDS TO BE IN THE PRODUCT ITSELF, NOT THE MARKETING.
  31. 31. CHARACTERISTICS OF A GREAT PRODUCT
  32. 32. 1) DEEP-INCLUDES FEATURES & FUNCTIONS THAT MEET A RANGE OFCUSTOMERS’ NEEDS
  33. 33. 2) INDULGENT-MAKES CUSTOMERS FEEL SPECIAL WHEN THEY PURCHASE IT
  34. 34. 3) COMPLETE-PROVIDES AN EXCELLENT TOTAL CUSTOMER EXPERIENCE, FROMPACKAGING TO TECHNICAL SUPPORT
  35. 35. 4) ELEGANT-IS INTUITIVE TO USE; WORKS THE WAY CUSTOMERS EXPECT IT TO
  36. 36. 5) EMOTIVE-CONNECTS WITH CUSTOMERS IN SUCH A WAY THAT THEY ARECOMPELLED TO TELL OTHERS ABOUT IT

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