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Essentials of marketing

A summary of a week long marketing course that I took at Wharton and many of the same principles are applicable today as well.

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Essentials of marketing

  1. 1. Essentials of Marketing Wharton School – University of Pennsylvania
  2. 2. Marketing Plan Template Consumers Competitors Company Collaborator s Positioning Product Price Place Promotion Step 1: Marketing Analysis 4C’s Step 2: Positioning Step 3: The Marketing Mix – The 4P’ s
  3. 3. Positioning ●Target Segment ●Point of Difference ●Frame of Reference ● Who is buying your product and for what purpose? ● Positioning may change over time. ○ Customer perceptions ○ Customer wants ○ Competition Who am I going after? Why should they buy the product? Who am I stealing the business from?
  4. 4. Lifetime Value of Customer (LTVC) ●Why Customers are profitable over time? ○Premium price ○Referrals ○Increased purchases ○Base profit ●Develop a buyer decision making model – which product , which seller ? ●Identify the rate limiting steps The greatest danger to a company is the inability to retain customers
  5. 5. Profit Strategy Checklist ● Increase Unit Volume ○ Increase primary demand (Develop new products, Target new segments) ○ Manage brand Switching (keep customers loyal, Steal new customers from competition) ○ Increase purchases by current customers ( Increase usage rate, trade-ups and complements selling. ● Increase prices ○ Increase Value for the customer ( Higher benefits , lower transaction costs) ○ Decrease price Sensitivity ( Communicate quality , target upscale segments) ● Decrease Costs ○ Decrease Fixed costs ( less advt. expenses , R&D ) ○ Decrease Variable Costs ( Improve negotiations with suppliers/resellers)
  6. 6. Branding ●Important to invest in brand ●Go where you are strongest. ●Regularly measure and manage brand value ●Have the brand value on your balance sheet.
  7. 7. Is Network Solutions a Sincere Exciting brand?
  8. 8. Relationship with Customers Where does network Solutions want to be ? Intense Superficial Functional/ Objective Symbolic/Emotional ● Master/Slave ● Best Friends ● WorkMates ● Drinking Buddies ● Committed Partnerships
  9. 9. Effect of Transgressions on Brand Personality ● Expectations are higher for Sincere brands. ● In the absence of transgressions Sincere brands have Higher Trust over time. ● Post recovery of Trust and Expectations after transgression is higher for Exciting brands. What should companies do ? ●Repair identified deficiencies ●Balance introduction vs. growth vs. maintenance ●Develop committed partnerships vs casual friendships
  10. 10. Brands Communities ● Emergence of brand communities ○ Specialized non-geographic bound community based on a set of social relationships among admirers of a brand ● Customer to customer communities ○ Customers are brand missionaries ○ Customer communities are more forgiving of transgressions ● Risks of brand Communities ○ Communities may not like company decisions ○ Marketers have no control over community ○ Competitors can snoop on communities. ○ Nurturing brand communities is time consuming
  11. 11. Customer Analysis ●Conjoint analysis ●Cluster analysis.( Attributes , Attribute levels, Part- worth's ) ●Define segments ●Approaches to segments ●Margins , size and ability to reach markets ●Comparative advantages
  12. 12. Channel Strategies ●Trends: ○Emergence of new channels ■Cars sold on the internet ○Wholesalers changing roles ■Do a variety of other functions like sales etc. ○Consolidating from regional to national. ■Globalization
  13. 13. Pricing Strategies ●Random Discounting ●Price Signaling ●Premium pricing ●Experience Curve pricing
  14. 14. 3 Important learning ●Importance of positioning ●Brand Equity ●Pricing Strategy
  15. 15. 3 changes to implement ●Positioning of product for both the company and competitors. ●Change pricing and promotion strategy. ●Critical incident management.
  16. 16. Steps company should take ●Brand value ●Brand Communities ●New markets