Today’s Agenda

 Introductions
 Review Syllabus
 Review the final project outline
 Lecture
 Video Case Study
 Break into teams
Choose product/service by end of class

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Introductions

 Name
 15 - 30 second resume
 Position and responsibilities
 Next or Ideal position
 Objectives for the course
 How to help you accomplish your objectives

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“Marketing Insights”

Your name

What: Brief description of marketing piece

Marketing strategy: Brief description of what you think the

marketers’ strategy is

Effectiveness: Tell how effective you think the

strategy is and why

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 Lecture One
Chapter 1 & 2
Strategic Planning and Customer
Relationships

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Today’s Lecture Objectives

 Basic overview of the marketing flow

 Setting objectives and strategic planning
 Understanding the customer relationship

Note: relationship to final project

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Marketing Definition vs. Purpose

 The process of building profitable

customer relationships by creating value
for customers and capturing value in
return

 Bringing a product or service to the

marketplace

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Marketing Flow

 Develop Strategy
 Conduct Research
 Decide on Targeting and Positioning
 Product Management
 Marketing Communications (marcom)
 Measurement

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Setting Objectives &
Strategy

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 Business Objective

•Segmentation
Marketing Strategy •Targeting
•Positioning

Tactics

The four ‘P’s: Product, Price, Promotion and Place

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The four C’s
Bus. Objective and Mark. Strategy

 Keeps core competency in focus

Sets boundaries for business expansion
 New products and acquisitions
 Puts definition around business portfolio
 Frames day to day operations
 Gives Wall Street short and long term vision
 Helps define strengths/weaknesses
 Brands or divisions that are ‘failing’
 Those that are under-valued and can grow

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Strategy

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What is a Strategy?

 The “roadmap” or “game plan” on how you

are to achieve your objective

 It is an integrated set of actions aimed at

securing a sustainable, advantageous and
competitive position

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What is a Strategy?

 A strategy should:
 Create a unique and valuable position
 Measurable
 Definitive
 Should have a clear fit within organization
 Choose what and what not to do
 Clear and realistic timeline
 Distinctive
 Shouldn’t imitate anyone

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Strategy is the Tough Part

 Force tough decisions

 Cannot be all things to all people
 Unique = sustainable and competitive
 Fit within the organization
 Play off your strengths
 Interact and reinforce broader mission/efforts
 Trade-offs
 Delivering value to one set of customers means
ignoring another set of customers

The most difficult decision is what we will not be. 14

Creating A Strategy

 A strategy position can come from three

distinct sources:
 Serving the few needs of many customers
 Jiffy Lube
 Serving the broad needs of few customers
 J.P. Morgan’s Private Banking
 Serving the broad needs of many customers in
a narrow market
 Ikea

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Creating A Strategy
 Identify the implicit assumptions about your
product/service and the existing choices about
how you are to compete.

 Utilize research about your customer’s needs,

competitors’ offerings and value propositions

 Identify your options and choose a path to

success

 Above all should be customer centric

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Customer- Centric Marketing Strategy

 Key elements in customer identification:

Segmentation

Targeting

Positioning
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Segmentation

Groups of consumers who respond in

similar ways to marketing efforts.
Geographic
Demographic
Psychographic
Behavioral

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Targeting

 After segments are identified:

Evaluate worth and profitability
Short and long term opportunities
Potential barriers
Single or multi-segment target?

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Positioning

 The place a product occupies in the

mind of a consumer
Relative to other products in and
outside of the category
Should be distinct
• What’s the competitive advantage?
Should be desirable
Should be clear and focused
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Customer Relationships

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The Customer Relationship

 Marketing: The process of building

profitable customer relationships by
creating value for customers and capturing
value in return

 Understanding their demand for value

 Creating demand for value
 Fulfilling that demand
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Needs, Wants and Demand

 Key marketplace drivers:

Needs
 State of felt deprivation
 Basic physical, social and individual needs
Wants
 Needs shaped by culture/personality
Demands
 Wants turn into marketplace buying power

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Value and Satisfaction

 To fulfill want/demand, provide:

 Value
 Expectations and understanding of product/service
 Satisfaction
 Fulfillment of this satisfaction

Value Satisfaction
Positive = lead to a sale Positive = relationship
Negative = no consideration Negative = lost customer or
word of mouth
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Value and Satisfaction
 How do you adequately set expectations
with consumers?
Value Proposition
 Benefits or values you promise to customers to
satisfy their needs.
 Simple formula
• Customer need + product/service experience = benefit
• Ex. You driving our car = The ultimate driving experience
• Ex. You using our software = Realize your potential

 Turns the rational offerings of a product/service

into an emotionally fulfilling experience
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 Customer Satisfaction

 Depends on the product’s perceived

performance relative to buyers
expectations
HIGH
Dissatisfaction Satisfaction

Dissatisfaction Satisfaction

Dissatisfaction Satisfaction

LOW 26
Marketing Management Orientations

 How do you create a marketing strategy

that balances what a company wants and
what a customer wants?
 How far do you cater to marketplace
demand?

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Marketing Orientation vs. Mission

 How is a marketing management

orientation different than a company
mission?
 Review – mission is a reason the company
exists – i.e. in the business of X
 Marketing orientation is how they go about
accomplishing that
 Push product into the marketplace
 Or develop products based on marketplace demand

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Mission statements
 Walt Disney: “ To make people happy”
 WalMart: "Wal-Mart’s mission is to help people
save money so they can live better.“
 Starbucks: “Our mission: to inspire and nurture
the human spirit – one person, one cup and one
neighborhood at a time.”
 Microsoft: At Microsoft, we work to help people
and businesses throughout the world realize
their full potential.
How do each go about accomplishing their mission? 29
New Directions

 CRM
 Keeping loyalty
 Gathering data
 Managing data
 Lifetime Value
 Get them in and keep them in

Customer relationship management is the overall process of

building and maintaining profitable customer relationships by
delivering superior customer value and satisfaction –
acquiring, keeping and growing customers. 30
55% of marketers cannot measure ROI

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Organizational Challenges

 Selling within a strategy

 Building consensus
 Successful marketing = think different
 Being an advocate
 Remove the risk
 Measurement
 The market will speak --- listen

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Next Class

 Evaluating the environment through research

 Competitors
 Potential targets / customer segments
 Deciding on a position
 Confirming or changing your strategy
 How to turn customer research into an insight

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Final project groups

1. 2. 3.
• Tom • Angelica • Ryan
• Marta • Daniel • Tammy
• Melinda • Abbey P • Mary
• Abbie R • Rob • Pat
• Wiles • Kristin • Gretchen

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