Marketing Primer

THE BIG PICTURE: Summary Christie L. Nordhielm Kellogg School of Management Northwestern University

THE BIG PICTURE marketing objective source of volume evaluate business objective place price promotion execute product service position segment target STP goal time frame competence retention acquisition steal share demand- stimulation main variable dynamic variable TA description 5-box search experience credence value or competitive length breadth depth awareness information image behavior

THE BIG PICTURE
Identify
Prioritize
Express

THE BIG PICTURE marketing objective source of volume evaluate business objective place price promotion execute product service position segment target STP entity goal competence retention acquisition steal share demand- stimulation main variable dynamic variable TA description 5-box positioning statement search experience credence value or competitive length breadth depth awareness information image behavior Identify

Fundamental Unit of Analysis (FUA)
Corporation
Nike, McDonalds
Business Unit
Quaker Hot Cereals
Brand Line
Nabisco Crackers
Brand
Gatorade, Gap

Business Objective
Business Goal:
measurable
time frame
realistic
single-minded
integrated with lower and higher-level goals
Time Frame
short-term vs. long term

Core Competence
A skill that leads to a sustainable competitive advantage
Requires significant resource investment
Generates strategic assets that in turn generate products
FedEx: "Stanley Cup" Walmart

Marketing Objective (primary)
Acquisition
acquire new customers
more expensive (time & money)
Retention
maintain current customer base
increase usage occasions among current users
indicator of long term viability of firm
Synoptic: "Bowling" Heinz: "Cow" Synoptic: "Bowling"

Source of Volume
Stimulate Primary Demand
category definition
category benefit (main variable)
#1 brand strategy
brand name not as important
Steal Share
from whom?
dynamic variable
#2 brand strategy
no “long-term place to live”
Duracell: "Will"

Source of Volume key activity: attract new category users attract new brand users increase consumption among current users increase consumption occasions among multi-brand users marketing objective source of volume retention acquisition stimulate demand steal share

Segmentation, Targeting and Positioning T P S 1. brainstorm segmentation variables 3. evaluate/ select variables 4. plot the market 5. select target 6. select position 7. articulate position 2. delete redundant variables

Consumer Segmentation Variables
Demographic
Behavioral
Attitudinal
Aspirational

Identify Segmentation Variables
Main Variable
“cost of entry” for category
key variable for category leader
will change as the category matures
Dynamic Variable
key variable for new entrants
must dominate category leader to succeed

Identify Segmentation Variables segmentation variables: emphasize category variable emphasize dynamic variable emphasize category variable/new use emphasize dynamic variable marketing objective source of volume retention acquisition stimulate demand steal share

Target: Plot the market
What business are we in?
Competitors
Variables
main: “cost of entry to category”
dynamic:
steal share: variable to dominate on
stimulate demand: future main variable for category

Target
Target Audience description
Rich description of single user
Refer to segmentation brainstorm
Should “paint a picture” for creatives, sales force, customer service

Target Audience target audience: potential category users competitive brand users current users (loyal) current users using as part of brand set marketing objective source of volume retention acquisition stimulate demand steal share

Position current belief currently do consumer proposition desired do desired belief

Product Attributes
Search: can be evaluated prior to consumption
Experience: can be evaluated after consumption
Credence: cannot be evaluated even after consumption
Visa "Bob" Telenordia "Blind Date" Dunlopillo "Gorilla"

Product Involvement & Product Attributes functional risk of loss ego-involved risk of loss utilitarian choice ego-involved choice low involvement search credence experience learn-do-feel feel-do-learn do-learn-(feel) Michelin

Product key product attribute search, experience (where feasible) search (compare to competitor) credence experience (compare to competitor) marketing objective source of volume retention acquisition stimulate demand steal share

Pricing variable cost price paid perceived value Consumer surplus Producer surplus “ true” value Unrealized surplus perceived value Consumer surplus

Pricing pricing objective trial value trial competitive continuitiy value continuity competitive marketing objective source of volume retention acquisition stimulate demand steal share

Channels – Channel Length # of intermediaries direct indirect

Channels – Channel Breadth # of outlets exclusive mass

Channels – Channel Depth integration minimal forward/backward integration maximal forward/backward integration

Channels channel objective direct exclusive/ selectiive direct selective/ intensive indirect selective/ intensive indirect intensive marketing objective source of volume retention acquisition stimulate demand steal share

Advertising Objective behavior image information basic awareness top-of-mind awareness $$$$$
increase retail inquiries from 100/week to 250/week
increase % agreement with “brand x is contemporary” from 10% to 40%
increase awareness of <information> from 15% to 50%
increase % of “first mentions” from 25% to 60% among target
increase aided awareness (recognition) among target from 5% to 25%
$

Advertising Spending target audience size segments advertising objective target # of exposures media type postioning total cost creative

Advertising advertising objective awareness information information behavior image behavior top of mind information behavior marketing objective source of volume retention acquisition stimulate demand steal share

THE BIG PICTURE marketing objective source of volume evaluate business objective place price promotion execute product service position segment target STP steal share Identify Prioritize increase revenues 10% logistics cc acquisition

THE BIG PICTURE marketing objective source of volume evaluate business objective place price promotion execute product service position segment target STP steal share Identify Prioritize Express stimulate demand increase revenues 10% logistics cc acquisition goal impediment solution

Problem statement: Goal
Single-minded statement of primary BP goal
Time frame
Measurable
Realistic
Linked to higher and lower level goals
Expressed in BP metric
Marketing Objective: “acquire x new customers in x months”
Source of Volume: “steal x% share from x in x months”

Problem statement : Impediment
Current strategy that is preventing you from reaching your goal
1 box to the right of goal in BP

Problem Statement : Solution
Fix impediment box in BP
Fix remaining boxes to the right of impediment

THE BIG PICTURE marketing objective source of volume evaluate business objective place price promotion execute product service position segment target STP goal FUA competence retention acquisition steal share demand- stimulation main variable dynamic variable TA description 5-box search experience credence value or competitive length breadth depth awareness information image behavior

Marketing Primer

by mailtrinetra on Jan 27, 2008

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