Vocabulary of Introduction to Marketing

Loyalty: fidelidad
Core: centro, principal
Brand equity: valor de marca
Need-gathering: necesidades localizadas
Start off: iniciar
Enhance: mejorar, realzar
Overall: en general (adj)
Beyond: mas alla de
Prompt: impulsar o provocar a alguien.
Revenues: ingresos.
Willing: dispuesto a
Acquire: adquirir
Abide: tolerar, soportar, permanecer, seguir.
Assumption: suposiciones
Allow: permitir
Allocate: distribuir, asignar
Fair: justo, equitativo, claro
Tricky: complicado
Lukewarm: tibio, templado.
Upon: sobre, en cuanto, luego de,
Sought: buscado, deseado
Current: actual
Trademark: marca registrada
No longer: ya no
Statement: declaracion
Crisp: Nuevo
Hone: perfeccionar, pulir.
Grasp: agarrar, captar, coger
Worth of material: lo major del material.
Right away: inmediatamente
Trigger: detonante, desencadenante, gatillo.
Embody: personifica, encarna.
Plunge: zambullida, cada, sumergirse
Approach: acercarse, aproximarse
Gauge: medir, estimar
Fine tuning: ajuste de precisin
Regardless: en cualquier caso.
Sum up: resumir
BRANDING: Marketing Strategy and Brand Positioning
This week introduces the foundational concepts in marketing strategy and brand positioning.
Beyond marketing promotions, marketing and brand strategies in today's business world
require consideration of buyers'/sellers' markets, customer segmentation, and brand
mantras. In order to understand how best to position a brand, we need to explore the
underlying mechanisms of brand positioning so that we may understand not only the
cognitive associations with brands, but also the social, behavioral, emotional, and cultural
associations.
Week #2

2. Customer Centricity: The Limits of Product-Centric Thinking

We start this portion of the course with an overview of the traditional product-centric
approach and some of the evolving concerns arising from it. We discuss the common
objectives and operational procedures that businesses follow, and the "cracks" in product
centricity that create the need for a new strategic approach. Here we bring sharp clarity to
the concept of customer centricity, and we convey what executives really need to know
about it, namely, the key factors and challenges in implementing it successfully. We carefully
examine the tactical "building blocks" underlying customer centricity, and point out some
subtle but important insights about the interplay among them.

Week #3:

3. Online-Offline Interaction & How to Find Lead Users and Facilitate Influence and
Contagion

The go to market strategy offers more possibilities than ever before as firms have the
potential to address consumers both offline and online, and through a variety of platforms.
This session aims to define what going to market involves when firms can access
customers in the virtual world, as well as in the physical world. We also briefly explain some
unique demands and challenges that the virtual world creates for brands and customer
centricity. A critical goal of the go to market market is the identification of lead users, i.e.,
those who will be most enthusiastic and who will potentially influence others. This session
also introduces the idea of customer networks, neighbors and contagion. We explain the
important distinction between identifying groups of customers who are likely to behave the
same way (birds of a feather, flocking together) and identifying contagion.

4. Branding: Effective Brand Communications Strategies and Repositioning Strategies

To build a strong brand, one has to consider the tactical elements as well: What are
reasonable strategies to creating a new brand name? What about brand slogans or brand
symbols. Are celebrities effective for brand positioning? Further, once you have built a strong
brand it is essential that the brand stays relevant and is responsive to changing
environments. What are the best ways to reposition a brand once it has lost its way? What
are appropriate ways for brands to respond to brand crises?

BRANDING: Marketing Strategy and Brand Positioning

Marketing 101: Building Strong Brands Part I:

What is marketing? Is the studies of a market, and what is market? Is an exchange between two partners:
most of the times are buyers and sellers. Moreover, market applies to non-profit or things where there isnt
necessarily money being transacted. But exchange have to exist.

Sides: sellers market and buyers market. Both are different because sellers one has the power about
products and buyers need them. By the other hand, buyers market has power because there is a lot of
competition and a lot of products. As a consequence, marketing is not the same in the two sides.

Seller marketing is what we call product focus market. The idea is develop that product to the best of your
ability, innovate in that product and reduce cost. My business objective in product-focused market is to sell as
much as I can. Additionally, profitability from a product-focused market is going to come from volume. In other
words, market share.

Costumer focused marketing means that I need to focus on the costumer to get that costumer to buy from me
rather than the competition. And the best way to do that is look what the customer wants, and deliver that meets
the needs of that customer.

What does the customer want?, but first which is the customer? I have to do a segmentation to give some
customer what they want and the profit will come from value instead of volume. It means, if I give exactly what
they want, theyll be willing to pay a higher price for it. The other way of profitable is doing more than one
transaction, Ill build customer loyalty, and deliver value to that customer over time: customer share.

Cross selling: sell other things to you besides that one specific product.

Experience orientation: Im delivering value and a top-notch customer experience. I try to manage the entire
experience with the firm.

Trust orientation: build a relationship based on authenticity, on trust, and on discipline.

Marketing 101: Building Strong Brands Part II

There are three principles of marketing.

- Principle of customer value.

- Principle of differentiation.
- Principle of segmentation, targeting and positioning.
Tools to deliver the three principles of marketing: 4 Ps of marketing

- Product: what the seller puts into the exchange.

- Place (decision): the way the seller delivers the product to the customer
- Promotion: the way the seller communicates the benefits about that product to the buyer.
- Price: what the buyer puts into the exchange.
Strategic Marketing

How to think competitively to become a leader in your market. (Market leadership)

There are market-driven principles. 1) You have to know your markets. Besides what my customers want, Ill
look for how competitors are likely to react. 2) Customers have the final say. They summarize in three bundles,
sorts of operation factors: price, cost, delivery, service and reliability; product features or designs, so product
attributes, innovation and technology; it meets my needs. 3) If you want to be the first in the markets that you
serve, you better be the best at something and good enough at the other two things. 4) Deliver total quality to
guarantee customer satisfaction.

Fair Value: perception about what you are offering (benefits) and the lower price. It means that the benefits will
be fewer. This fair value can be develop by operational competence, product differentiation and customer
responsiveness. As a consequence, I have to research where competition is building fair value in order to
design my strategy of market.
- Operational excellence (Short strategy with a hit)
- Performance superiority (Short strategy with a hit)
- Customer Intimacy (long strategy)

Segmentation and Targeting

Is call STP framework: segmentation, targeting and positioning.

- Segmentation: identify variables that allow one to segment the market.
- Targeting: evaluate the attractiveness of each segment and choose a target segment.
- Positioning: identify positioning concepts for each target segment, select the best, and communicate
it. In other words, you position your brand and your product to meet the needs of that target segment.
Note: If I dont do a segmentation, Id meet the needs lukewarm and no one stay happy.

Market segmentation is the process of dividing a market into distinct subsets, where any subset may
conceivably be selected as a marketing target to be reached with a distinct marketing mix.

Marketing mix are the three principles of marketing: 4 Ps of marketing.

Segmentation methods
CHARACTERISTICS OF CUSTOMER: demographics, male, female, old, young, rich, poor.
BENEFITS SOUGHT: comfort, technology, esthetics.

SYSTEMATIC, PRODUCT-RELATED BEHAVIORS: some people purchase online, others physical store,
purchase by phone, other purchase frequently or once a year, other switch around or be loyal

COHORT ANALYSIS: is understand the life experiences that youve experience as a cohort. (Todays cohort is
Generation Y and Millenials)

ZIP CLUSTERING (GEOGRAPHIC), RELATED TO ZIP CODE: people who are similar tend to live together in
the same neighborhoods. Or prism segmentation says that is similar features neighbors could be in different
neighborhoods.

Select a target segment

What makes a segment attractive? To choose one I need to balance the attractiveness of segment with my
capability to deliver to that segment. Moreover, I need to constantly monitor whether the actually buyers that
Im targeting are matching what I think that they should be doing.

Segment selection criteria

How big is it? (Segment size)
How much growth is there? (Growth of segment)
How much money do they have to spend? (Value of segment)
How stable is it? (Stability)

How good am I at meeting the needs of that segment?

What is the current company position within segment?
How easy is it for me to address the needs of that segment?

What about the competition?

How many people are going after that segment?
Whats the strength of the competitors?
Are there potential competitors coming in?

Note: develop measures of segment attractiveness; select among attractive segments based on business
capabilities.
Brand Positioning

Positioning is positioning your product to meet the needs of the target segment.

What is a brand? A proprietary trademark for a specific product or service. Brand is also a relationship or a
contract from the company to its customers; a promise of specific benefits, quality and value (relationship).

Scott D. Cook said in Founder and Chairman of the executive committee intuit board of directors P&G a
brand is no longer what we tell the consumer it is it is what consumers tell each other it is.

What a good positioning statement has? Theres three pieces to the positioning statement. Theres who is the
target segment, what is the point of difference that theyre offering to that target segment and then theres what
is the frame of reference? By the other hand, the frame of reference are the competitors that they are
comparing themselves.

- For example Apple, their target segment are students, educators, creative professionals and
consumers around the world. The point of difference is that they innovate, and the frame of reference
is the personal computing experience.

A positioning statement defines the value proposition of product to the target market. In order with the frame of
reference, brand should share some aspects to be in that specific set. On the contrary, customers will create a
bad brand in their minds. On the other hand, the positioning must be difference in order to people cant copy
very easily.

The elevator speech

What is the brand mantra or an elevator speech? This is the way you define a brand in 30 seconds. It has to be
define in three words.

Mental map: is a kind of a graphic, with circles and arrows and things like that, of what brand is. Portrays
brand associations and responses for a target market. Show how it is actually perceived. Ill ask to consumers
what comes to mind when you think about ______. And I write down what the brand is, what the essence of
the brand is from the consumer point of view.
Brand associations lead other associations.

You start with what differentiate McDonalds, the brand, and then, you come up with things that are
characteristics of the category and those are the red circles. After that, the yellow circles here are the
associations of each one of these point of parity.
Experiential Branding

So it is not enough to just define a brand in terms of a crisp, clear brand mantra and a crisp, clear brand
positioning, but you also have to define all of the experiences that exists around the brand.
What is an experience? Is a process that occurs as a result of living through a situation. Undergoing that
situation. So its not just a moment in time, its a dynamic notion where you sense or feel this experience.
Triggered stimulations to the senses, heart and mind. They connect the company and the brand to the
customers lifestyle and place individual customer actions and purchase occasions in a broader social context.

- Instead brand positioning, is experimental brand positioning: whats the brand stand for?
Should be multisensory strategy; should be different in some real and valuable way from
all competitors.
 - Experimental brand value promise: describes what customers gets in experimental terms
(senses, feel, think, act, relate like the context and people where brand will stay). Create a
sensory experience that extends across channels.

Strong brand: make clear promises, clarity is very important and has to be dynamic. You have rich
unique brand equity, strong emotions, strong thoughts with it and they are delivered dependably
and consistently. Strong brands have really loyal customers who help spread the brand message.

Consistency in delivering on their promise.

Superior products and processes.

Distinctive positioning and customer experience.

Alignment of internal and external commitment to the brand.

CUSTOMER CENTRICITY
From Product-Centric to Customer-Centric Management

This module is focus on basic kinds of strategies that companies can follow. In fact, it is interested on customer
intimacy or customer centricity. What it is? What it isnt? Motivating why its important?

- Our job is maximize the value of the corporation which means, maximizing the net present value of
profits that the company is going to get. OVERALL OBJECTIVE OF A COMPANY
- Key performance indicators such as market share.

What are the sources of a major growth that a company can enjoy? One source of growth is taking the product
and services that weve been delivering already and bringing them to new customers. The other source of
growth would be innovation. But the main source of growth is extending our overall product or service delivery

How to extend the existing product? Well if you look at the organizational chart of almost any company on the
planet, the company tends to be organize around the different kind of products and services that it delivers.
PRODUCT ORIENTED
The competitive advantage is product expertise.