Nyserda Week 2 06 Aug2009

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  • Point: people differ in attitudes on “green” technologies
  • Proud Traditionalists..
  • Eco-CentricMaybe Green Naives
  • “Customers want products that are more efficient, that last longer and perform better," said Mike Duke, Wal-Mart’s president and CEO. “And increasingly, they want information about the entire lifecycle of a product so they can feel good about buying it. They want to know that the materials in the product are safe, that it was made well and that it was produced in a responsible way.”http://www.brandweek.com/bw/content_display/news-and-features/green-marketing/e3ibdf529f18374f6c998971ae6b7c53fb6
  • Print out. They plan to create a database of information on all suppliers. Can NYSERDA use a similar method and maintain a similar database?
  • Nyserda Week 2 06 Aug2009

    1. 1. Marketing <br />Class #2<br />August 6, 2009<br />John W. Huppertz, Ph.D.<br />Associate Professor of Management<br />Christie M. Griner, MBA<br />Adjunct Instructor<br />
    2. 2. Today’s Agenda<br />Fill out 1-page survey<br />Quick review from last class<br />Where to, for Marketing?<br />Market data and analysis<br /> Break<br />Segmentation<br />Green marketing and social marketing<br />Framing<br />
    3. 3. Some key concepts from Week 1:<br />Definition of Marketing, the Marketing Concept<br />Difference between marketing and selling, advertising<br />Different types of markets (consumer, business, government, etc.)<br />The four “P’s”<br />Disintermediation<br />Push and Pull marketing strategies<br />
    4. 4. Strategic Business Planning and Decision Making<br />How marketing links to strategic business planning<br />Translating business goals to marketing strategy<br />From---To: Where are we now in terms of a marketing approach and where do we want to be in terms of marketing at NYSERDA <br />
    5. 5. Translating business goals to marketing strategy<br />NYSERDA ‘s business goals are intertwined with marketing.<br />How to get customers to change behavior?<br />How to get customers to care?<br />How to make sure that energy considerations get factored into their decisions?<br />Choosing the right markets, the right products, the right messages.<br />That is what marketing strategy is all about.<br />
    6. 6. Strategic Business Planning and Decision Making<br />From---To: Where are we now in terms of a marketing approach and where do we want to be in terms of marketing at NYSERDA <br />Where do we go now?<br />
    7. 7. QuizQuestion 1.<br />Your friend comes to you, all excited about a great idea for a business, and she wants you to invest some money to help start it.<br />If you were considering investing in her new business venture, what should you know before writing a check?<br />
    8. 8. QuizQuestion 2.<br />You’re the Director of NYSERDA. The leader of the group in charge of new energy technologies comes to you, all excited about a great idea for a NYSERDA program, and wants your support and additional funding.<br />If you were considering investing in this new idea, what should you know before writing a check?<br />
    9. 9. Category Development Index (CDI) CalculationExample: Foot-Joy Golf Shoes<br />Market Penetration = <br /> Annual Golf Rounds / Population (1,000’s)<br />
    10. 10. Category Development Index (CDI) CalculationExample: Foot-Joy Golf Shoes<br />Market Penetration<br /> Average<br />x 100<br />CDI =<br />
    11. 11. CDI Summary<br />
    12. 12. Let’s apply this tool to energy.<br />
    13. 13. Census data: Consumers<br />http://factfinder.census.gov/servlet/DatasetMainPageServlet?_program=DEC&_submenuId=&_lang=en&_ts=<br />http://factfinder.census.gov/servlet/DTSubjectKeywordServlet?_ts=267529505781<br />
    14. 14. Census data: Businesses<br />http://factfinder.census.gov/servlet/IBQTable?_bm=y&-ds_name=BE0200I101&-_lang=en<br />
    15. 15. Target Market<br />Having a customer in mind when designing a product, advertising campaign, channel strategy, or price level.<br />Which customer offers the greatest opportunity?<br />
    16. 16. Defining the Target Market<br />How would you define the target market for:<br />Solar water heating?<br />Geothermal wells?<br />Energy audits?<br />NYPA Power?<br />Compact fluorescent bulbs?<br />Co-generation?<br />
    17. 17. Target Market Segmentation<br />Source: Childbirth Connection, survey of 1,600 new moms.<br />
    18. 18. Market Segmentation<br />In the Target Market Not In the Target Market<br />
    19. 19. Market Segmentation<br />*<br />* Ages 14+<br />
    20. 20. Market Segmentation<br />Or, 280 million segments with <br />N = 1 <br />
    21. 21. Market Segmentation<br />*<br />* Ages 14+<br />
    22. 22. Market Segmentation<br />*<br />* Ages 14+<br />
    23. 23. Market Segmentation<br />*<br />* Ages 14+<br />
    24. 24. Market Segmentation<br />
    25. 25. Market Segmentation: Age<br />
    26. 26. Who Wants to Be a Millennial?<br />Source: Harris Interactive YouthPulse/The Harris Poll<br />
    27. 27. Market Segmentation<br />You can create segments on almost any characteristic.<br />Demographics <br />Lifestyle <br />Buying habits<br />Behaviors<br />Health status<br />Benefits<br />??<br />Find those which are relevant.<br />
    28. 28. Market Segmentation<br />
    29. 29. Benefit Segmentation<br />Segment customers based on the benefits they seek from a particular product.<br />Group customers based on their needs.<br />EX: non-prescription pain relievers and exercise.<br />
    30. 30. If you have aches and pains, do you prefer:<br />
    31. 31.
    32. 32. 5<br />4<br />3<br />2<br />1<br />5<br />4<br />3<br />2<br />1<br />4<br />3<br />2<br />1<br />5<br />3<br />2<br />1<br />5<br />4<br />2<br />5<br />4<br />3<br />1<br />
    33. 33. Segmentation by Attitude<br />
    34. 34. Segmentation by Attitude<br />5-10  Couch potatoes<br />11-19  Casual exercisers<br />20-25  Exercise nuts<br />
    35. 35. If you have aches and pains, do you prefer:<br />
    36. 36. If you have aches and pains, do you prefer:<br />
    37. 37. Green Marketing: Best Practices<br />
    38. 38. Shades of Green<br />
    39. 39. Green Segmentation<br />Points of interest<br /><ul><li>Respectful Stewards: 86% Hispanic
    40. 40. Eco-Villans are mostly middle income white males
    41. 41. Green Naivesmostly female
    42. 42. Most Gen X’s are lighter green, reason?</li></li></ul><li> Why market to Millennial’s? <br />Born early 80’s-late 90’s<br />Market Segmentation is critical<br />Two segments-13-17; 18-29<br />Most educated demographic<br />79% get info from web<br />Problem: Understand why but not how<br />Must quantify not simply preach-give them instant gratification<br />If families recycle newspaper for 1 year saves half million trees<br />Cut shower time down by 2 minutes saves 10 gallons of water<br />Put a sweater on when cold, turn thermostat down save 500,000 barrels of oil/day<br />Marketing technique Align marketing with corporate responsibility <br />Creates loyalty<br />
    43. 43. Commercial Case Study: Wal-Mart<br />Does WMT market “green” to each segment? How?<br />
    44. 44. Who is this targeting?<br />
    45. 45. ..and this?<br />
    46. 46. How is WMT reaching their audience? <br />
    47. 47. Wal-Mart’s LT Goals<br />To be supplied by 100% by renewable energy<br />To create zero waste<br />To sell products that sustain resources and environment<br /> Are they attainable? <br />
    48. 48. The Power of Wal-Mart<br />Choose Suppliers<br />Wal-Mart will list criteria and suppliers must adhere to be part of the supplier list<br />Requests full-disclosure on products via supplier<br />Will it be worth it long-term for suppliers to alter their practices for one retailer?<br />
    49. 49. Supplier Survey<br />
    50. 50. Sustainability 360<br /><ul><li>Alternative Energy to Power Facilities
    51. 51. Purchased Solar Power (22 CA&HI stores)
    52. 52. Wind energy supplies 15% of power to run TX stores
    53. 53. Energy-Efficient Transportation Fleets
    54. 54. Wants to improve by 25%
    55. 55. Overnight trucks have APUs to regulate temperature and communication
    56. 56. Testing hybrid trucks and alternative fueled trucks
    57. 57. Sustainable Packaging Network
    58. 58. Reduce packaging by 5% by 2013
    59. 59. Laundry liquid, private labels, digital media packaging
    60. 60. Plastic Bags
    61. 61. Reduce by 33% by 2013
    62. 62. High-Efficiency Store Formats</li></li></ul><li>High-Efficiency Store Format<br />HE.6- Western US-Sacramento, CA<br />Post HE.5 (Vegas)<br />30% more energy efficient than the 2005 baseline –added evaporative cooling and radiant flooring<br /><ul><li>Goal: Conserve energy, and reduce greenhouse gas emissions through heating, cooling, refrigeration and lighting systems. </li></ul>Cooling Towers reduces temperature<br />CO2 refrigerant system reduces the refrigerant charge in the store by 90%<br />
    63. 63. Why does HE.6 matter?<br />Market Pioneers<br />Skylights<br />LED lighting<br />Recycled cement<br />Low flow toilets/faucets<br />Improved customer experience <br />Wider isles<br />Lower shelves<br />Improved sightlines<br />Service area<br />
    64. 64. NYSERDA implementation<br /> How can you get a local retailer to implement a high-efficiency store format?<br />
    65. 65. What goals has WMT achieved?<br />Sold 100M compact fluorescent light bulbs in 2007<br />Effect: does away with the need for 100 million old-fashioned bulbs to be manufactured, packaged, shipped, bought, and discarded next year--and every year until 2012 or beyond<br />Most of WMT’s goals slated out 4-5yrs<br />
    66. 66. Do these companies “feel” green to you? Why?<br />
    67. 67. Industrial Case Study: HP<br />In general, HP..<br />Owns “e-waste” recycling plants that shred discarded, obsolete computer products into raw materials that are reused in the industrial food chain<br />Takes back computer equipment of all brands<br />All HP products are 100% recyclable <br />Promises to lower energy consumption 20% by next year<br />
    68. 68. HP Campaign: Power to Change<br />
    69. 69. “Power to Change”<br />HP Philosophy: industry leadership is about an ongoing contribution to society<br />Launched 6/09 by Leo Burnett<br />Modern, stylish, innovative, colorful, results-driven<br />Gives consumer autonomy and purpose<br />Taps into behavioral changes<br />Quantitative<br />Tracks cumulative energy savings if turning off idle PCs when not in use<br />Method<br />Widget<br />Commitment: must enroll & install<br />Gathers demographic information<br />Enables campaign success metrics<br />
    70. 70. Campaign Motives<br />Small commitment yields large impact<br />If 100,000 users shut down work computers each day, energy savings could total more than 2,680 kilowatts<br />Reduce carbon emissions by 1,500 kilos/day <br /> equivalent to removing 105 cars from the road/day<br />
    71. 71. HP Recycling Campaign<br />
    72. 72. Education at POS via Labeling<br />Energy Star labeling impacts Green Purchases 66%<br />
    73. 73. Ex: HP Labeling<br />Greater Variety + Eco-labeling = Increased sales + Customer Loyalty<br />
    74. 74. Recession<br /><ul><li>Primary motivation
    75. 75. Save money in difficult times
    76. 76. Consistent trends
    77. 77. Recycled paper
    78. 78. Green household cleaning products
    79. 79. Environmental safe laundry detergent
    80. 80. This links to where people see the need but not know how to implement it
    81. 81. Cloth grocery bags
    82. 82. Unplugging unused chargers</li></li></ul><li>Geodemographic Segmentation<br />PRIZM (Claritas, Inc.)<br />Cluster-analysis based <br />Residential neighborhoods<br />“Birds of a feather flock together.”<br />
    83. 83.
    84. 84.
    85. 85. Cohort Segmentation<br />Simple age combination / aggregation into generational segments<br />Message tailoring<br />Example of simplistic segmentation (Yankelovich and Meer, 2006)<br />
    86. 86. Cohort Segmentation<br />
    87. 87. Cohort Segmentation<br />What can you do with this?<br />
    88. 88. Segmenting Business Markets<br />Note: SIC  NAICS<br />
    89. 89.
    90. 90.
    91. 91. Segmentation Conclusion:Three Reasons to Segment the Market<br />Better understand the customer<br />Develop new products to meet needs of similar users.<br />Create features that most segment members want.<br />Message development: figure out what to say, so that they “get it” even if others don’t.<br />Reach customers more efficiently<br />Get message to your customer with out wasting money on reaching others.<br />Locate where your customers are.<br />Select the best target market<br /><ul><li>Select customers with highest potential.
    92. 92. Profitability (ability to buy)
    93. 93. Loyalty – for long-term profitable relationship</li></li></ul><li>Web 2.0 is changing the dynamic<br />Better understand the customer<br />Develop new products to meet needs of similar users.<br />Create features that most segment members want.<br />Message development: figure out what to say, so that they “get it” even if others don’t.<br />Reach customers more efficiently<br />Get message to your customer with out wasting money on reaching others.<br />Locate where your customers are.<br />Select the best target market<br /><ul><li>Select customers with highest potential.
    94. 94. Profitability (ability to buy)
    95. 95. Loyalty – for long-term profitable relationship</li></li></ul><li>Things are changing<br />In politics: <br />50% plus one. <br />Red states, Blue states<br />In marketing research:<br />Survey research<br />Sales analysis<br />Consumer testing, R&D cycle<br />In marketing plans:<br />Charge premium “Price”<br />More “Promotion”<br />In customer selection: <br />It’s easier to sell $10,000 to one customer than to sell $1 to 10,000 customers.<br /> Some customers just aren&apos;t worth chasing.<br />
    96. 96. Things are changing<br />In politics: <br />50% plus one. <br />Red states, Blue states<br />In marketing research:<br />Survey research<br />Sales analysis<br />Consumer testing, R&D cycle<br />In marketing plans:<br />Promotion to everyone <br />In customer selection: <br />It’s easier to sell $10,000 to one customer than to sell $1 to 10,000 customers.<br /> Some customers just aren&apos;t worth chasing.<br />In politics: <br /><ul><li>Everyone counts.
    97. 97. United States</li></ul>In marketing research:<br /><ul><li>Qualitative observation
    98. 98. Analytics
    99. 99. Quick prototyping</li></ul>In marketing plans:<br /><ul><li>Promotion to those ready to respond</li></ul>In customer selection: <br /><ul><li>It’s becoming easier to sell $1 to 10,000 customers. (Think i-tunes).
    100. 100. More customers than you think are worth chasing.</li></li></ul><li>Segmentation Conclusion:Three Reasons to Segment the Market<br />Better understand the customer<br />Develop new products to meet needs of similar users.<br />Create features that most segment members want.<br />Message development: figure out what to say, so that they “get it” even if others don’t.<br />Reach customers more efficiently<br />Get message to your customer with out wasting money on reaching others.<br />Locate where your customers are.<br />Select the best target market<br /><ul><li>Select customers with highest potential.
    101. 101. Profitability (ability to buy)
    102. 102. Loyalty – for long-term profitable relationship</li></li></ul><li>Framing<br />In politics:<br />Senator Moyer missed 14 critical opportunities to vote on matters of importance to her constituents.<br />Senator Moyer had a “99% perfect voting attendance record. <br />See: Tversky, A., and Kahneman, D. (1981). The framing of decisions and the psychology of choice. Science, 211, 453-458.<br />
    103. 103. Framing<br />In retail promotion:<br />Hurry in and save $20.<br />Hurry in and save 20%.<br />
    104. 104. Framing<br />In energy:<br />Lower your energy use and save the environment.<br />If you don’t lower your energy use, you won’t have an environment to save.<br />
    105. 105. Framing<br />In energy:<br />Lower your heating bill by 30% and save the environment.<br />Lower your heating bill by 30% and enjoy a vacation with the money you save.<br />
    106. 106. Framing<br />In class strategy session:<br />Three teams, five minutes<br />Come up with two alternativesways of framing the following:<br /> “You should buy compact fluorescent bulbs instead of incandescent bulbs because _________________________.”<br />
    107. 107. Assignment, due next class<br />Marketing “best practices”<br />Teams:<br />Marketing Services<br />EES, EA, Clean Energy, REAP<br />Economic Development<br />New Technologies<br /> 10 pages, 10 minutes.<br />
    108. 108. Summary<br />What did we learn today?<br />Some key take-aways?<br />Some things you won’t forget?<br />

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