mark 2 lectures
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/94
There's no tags or description
Looks like no tags are added yet.
95 Terms
STP meaning
Segmentation, Targeting, and Positioning
Segmentation
Grouping potential customers into distinct clusters based on similar needs, characteristics and behaviors (music, age, similar buying behaviors)
Targeting
Selecting a specific segment to target based on its attractiveness and feasibility for the company. (Which one am I going to go offer?)
Positioning
Define your value proposition for your target market
Why does STP matter?
Can allow companies to refine products, services and messaging for unique customer needs
Can reveal unmet needs which fuel new products and services.
Types of segmentation
Geographic
location based
(zip code, country, neighborhood)
Types of segmentation
Demographic
Things about people we can see
(Age, gender, income, race)
Types of segmentation
Psychographic
Things we cant see
(interest, activities, opinions)
Types of segmentation
Behavioral
Seeking convenience
(Benefits sought, purchasing habits, customer loyalty)
Dynamic Segmentation
Leveraging AI to continually update and refine customer segments based on real time data, behaviors and context
ISASDA (keys to a good segmentation)
Identifiable (segments you can clearly identify)
Substantial (segments 10% share big enough to serve)
Accessible (engage with them)
Stable (doesnt mean itll be good tmr)
Differentiable (clear how segments differ from others)
Actionable (take marketing action and reach)
How to select your target (shortcut)
Size of prize, right to win
How to select your target
Market size
Expected growth
Competitive position
Cost of reaching
Company compatibility
Brand positioning
the act of designing the companys offerings and image to occupy a distinctive place in the mind of the target market
Benefit of positioning
Simplicity (helps consumers categorize brands and distinguish b/w them)
Alignment (north star for decisions across all teams)
Value creation (create value, not just features)
Position vs positioning
Position: a cold hearted no-nonsense statement of how you are perceived in the minds of your prospects
Positioning statement: expressed how you wish to be perceived
Positioning statement
a strategic document that communicates the unique value the brands offer to a particular target segment
Answers “Why should I buy?”
Four components of a positioning statement
For who, for when, for where
Relative to whom
What benefit
Why and How (reasons to believe)
For ___ brand X is the only brand among all ___ that ___ because ____
target market
competitive set
benefit/ unique selling point (USP)
Reasons to believe
Reasons to believe (RTB) definition
the capabilities of your product or service that deliver the benefit
Benefit definition
the outcome your consumers will experience from your product or service
RTB ___, benefits ____
Tell, sell
Perceptual maps
a positioning tool that visualizes how consumers perceive brands across key attributes
Ex.
X-axis: Age
Y-axis: Usefulness
Segmentation groups customers by ___ while targeting selects a segment based on ___
similar needs
size of prize, right to win
___is the act of designing a companys offering and image to occupy a distinctive place in the mind of the target audience
Brand positioning
___ is the internal strategic direction of an organization, while a ___ is the consumers perception of the brand
brand positioning
brands position
Type of New products and services
New to the world products
No frame of reference for these products
Type of New products and services
New category products
existing brands, new products going into new category
Type of New products and services
Product line extensions
Rounding out portfolio for products
Type of New products and services
Product improvements
each year same product released with new features and improvements
Type of New products and services
Product repositioning
taking a good product and getting consumers to think about it in a different way
Type of New products and services
Cost reductions
can we take something out of it to make it profitable
Falling forward
failing is the tool for learning not a burden. Embracing failure and learning from it.
__% of products fail every year
95%
Stage Gate Process / New product development process
Develop and Scope
Business case
Develop
Test and Validate
Launch\
Gate review between each step, cross functional team meeting to decide if we should move on
the six types of new products are
new to the world products
new category products
product line extensions
product improvement
product repositioning
cost reduction
the best innovators
embrace and learn from failure
Stage gate process ___
helps organizations validate and align on innovation
Brand manager role in the product life cycle
trying to extend the life of the product in the decline section
Brand management
A function of marketing that uses techniques to increase the perceived value of a product line or brand over time
What do brand managers do?
Oversees and is accountable for every aspect of the brand with focus on driving incremental sales via brand building activities.
The role of the brand manager is similar to
A conductor of an orchestra, they’re the closest to the consumers hence why they’re so important
Brand equity
customers’ subjective and intangible assessments of the brand above and beyond its subjectively perceived value
Types of Brand architecture
Masterbrand
Most efficient type of brand, all aspects share the same brand name (ex google)
Types of Brand architecture
Endorsed
products are given theyre own name to give it uniqueness but it is endorsed by a parent company (Ex courtyard by marriott)
Types of Brand architecture
Individual
All products and companies have their own and unique name but all controlled by the same parent company (Ex. P&G)
Every product has a life cycle, and the goal of the brand manager is to ___ and help transition the products through the stages
help extend the cycle
___ is a function of marketing that focuses on driving perceived brand value, while _ is more like a mini general manager with accountability for the entire business, not just brand management.
Brand management
Brand manager
__ is a subjective and intangible assessment of the brand but it drives real tangible financial value
brand equity
Services make up more than ___ of US GDP
70%
Goods make up about __ of US GDP
18%
Value of services has increased more than __ since 2000
100%
4 I’s of service
Intangible(feeling of experience)
Inconsistent (Dependent on whos doing the service)
Inseparable (people are part of the service)
Inventory (service have no inventory, keep high utilization rate)
Product vs Service Comparison
Product
Price
Promotion
Place
Product: High control of consumer experience, Service: Low control of exp.
Price: More stable (less inputs), less stable (more costs inputs)
Promotion: Less difficult to communicate, More difficult
Place: More intermediaries, vs rarely any intermediaries.
3 additional Ps of service marketing
People, (people are service/ product)
Physical environment, (real elements of quality/ experience)
Process (training and development, high utilization)
(price, place, promotion, product)
Service marketing can be very challenging because of the four I’s of service ___
intangible, inconsistent, inseparable, and inventory
Product marketing can be more straightforward than services because there is ___, there are __ and__, promotions present a more __ and __ allow for rapid expansion
more control over the product
fewer
more stable costs
tangible benefit
intermediaries
the 7Ps of service marketing are __
price
product
place
promotion
people
physical environment
process
__ is the amount of money exchanged for products and services
Price
__ is what the consumer pays
__ is what the consumer recieves
Price
Value
Value equation
Value = Perceived benefits // Price
How to increase value
Increase perceived value
Decrease price
Six steps in setting price
Step one
Identify pricing objectives and constraints
Six steps in setting price
Step two
Estimate demand and revenue
Six steps in setting price
Step three
Determine cost, volume and profit
Six steps in setting price
Step four
Select an approximate price level
Six steps in setting price
Step five
Set the price
Six steps in setting price
Step six
make special adjustments
Market share equation
Market share = $/ unit brand sales // $/ unit category sales
(your sales versis the entire categories sales)
High price sensitivity
If you change price people are sensitive and wont buy as much
elastic demand
non-neccesity products
very sensitive to price
change in price will affect quanitity demanded
Inelastic demand
necessity products like gasoline
wont be happy with change in price but still need to pay
Price elasticity of demand
A graph of y axis = price and x axis = quantity demanded that shows how sensitive products will be to changes in price
Total cost equation
TC = FC + VC
Contribution margin equation
CM = Price - VC
Increasing revenue and costs but decreasing margins is a
bad thing, want margins to be positive
Break even analysis
a technique that analyzes total revenue and total cost to determine profitability at various quantities
Break even point
shows the quantity sold needed to cover costs
(revenue = costs)
BEP equation
BEP = FC / (Price - VC) ← CM
__ measures the relationship between price and the quantity demanded. __ items usually have more elastic demand where as __ items usually have more inelastic demand
Price elasticity of demand
Luxury type
Necessity type
__ allows companies to analyze their profitability at different quantity levels and the __ shows how much a company needs to sell to cover their costs
break even analysis
break even point
Skimming pricing approach
launch products at a high price for customers who are willing to pay more than decrease over time with newer model or time
Penetration pricing approach
start with a low price to grow market share, then increase price after people are already hooked
Prestige pricing approach
high price always and doesnt decrease because price is apart of the luxury of the brand
Price customization
a pricing strategy that improves price realization by varying price by type of customer
Dynamic pricing
price customization that can change real time based on constantly updated data
enabled by AI
4 factors that affect value and price customization
Tastes (people have different taste)
Nature of use (how are they using it)
intensity of use (how frequently they use it)
competition
How could dynamic pricing go wrong
customers can lose trust of company
Types of discounts
Quantity discounts
buy more, each becomes slightly cheaper
BOGO
Types of discount
Cash discount
2/10 Net 30
Pay cash earlier get a slight discount otherwise full price due by 30 days
Types of discount
Seasonal
during different seasons of the years, different things go on discount depending on how useful they are for that time period
Types of discounts
Promotional Allowances
giving discounts to incentivize promotion of products
__ sets the price based on consumers taste and preferences, and three common tactics are
Demand oriented pricing
Skimming
penetration
prestige
__ improves price realization by varying the price by type of consumer, and __ varies the price real time based on supply and demand dynamics
Price customization
dynamic pricing
__ are used throughout the marketing channels of distribution to incentivize buyers to purchase and promote products
Discounts and Allowances