Business Bootcamp (Marketing)

#1 Marketing Lesson

Cannot target the market as a whole, need to segment the market

#2 Marketing Lesson

What problem are you solving? Can we give you something we want?

Marketing

Answers who are your customers, what do they value, how can you give them what they value better than the competition

Strategic Marketing Decisions

Customers (most important), Collaborators, Competitors, Company, Value Proposition

Tactical Marketing Decisions

Product, Service, Brand, Price, Incentives, Communication, Distribution

4 P's of Marketing

Product, Price, Promotion, Place (Distribution)

Strategic Assets

Distributor relationship, Brand, Human Capital, Customer Base

Product Market Fit

Intersection of company value, customer value, and collaborator value

Ansoff Matrix

Helps businesses decide how to grow; Should we sell existing or new products to existing or new customers?

Existing customers, new customers on the x axis

Current products, new products on the y axis

Market Penetration

Top left of Ansoff Matrix

Companies sell existing products to existing customers (tries to sell more) --> Lowest Risk

Ex. lowering prices, running ads, loyalty programs

Market Development

Top right of Ansoff Matrix

Companies sell the same product but find new markets --> Moderate Risk

Ex. Expanding into another country, expanding into the online market, targeting a different age group

Product Development

Bottom Left of Ansoff Matrix

Companies create new products for existing customers --> Moderate Risk

Ex. Apple creates AirPods for iPhone users, coffee shop now sells sandwiches

Diversification

Bottom Right of Ansoff Matrix

Company offers new products to new consumers --> High Risk

Ex. Samsung producing home appliances in addition to tech stuff

Segmentation

Grouping customers by needs to market to each group differently (those within the group respond similarly, those in different groups respond differently)

Why segment?

Helps the firm identify the most valuable customers, allows for efficiency in marketing communications

Increased profit for firms, higher satisfaction for customers

More resonant products for the customer, personalized interactions with the firm, more relevant promotions

Rule for Segmentation

Segmentation should be based on what the customer values, not demographics

B2B Segmentation

Companies segment their business customers by industry, size, geography, channel

4 types of Market Segmentation

Demographic, Psychographic (lifestyle, interests, social class, habits), Behavioral (how consumers interact with the product / how much they know about it), Geographic

Isomorphic (Least Common)

Each demographic group has its own specific customer value group

Ex. Age Group A --> Customer group A

Age Group B --> Customer group B

Nested

One demographic group contains several customer value group

Difference in values between the same members of a demographic group

Transverse (Most common)

Customer value overlaps with many different demographic groups

High value customers come from many different demographic groups

Cluster Analysis

A statistical technique that groups people or items that are similar.

Used to find different types of customers so that companies can tailor their products and advertising

Labeling Segments

Giving segments names that intuitively communicate the key sources of value for that segment

Targeting

The process of identifying which segments to serve and which to ignore

Positioning

The process of creating an image, reputation, or perception of a product or brand in the consumer's mind.

How you want customers to think about your product

Positioning Statement

Summarizes marketing strategy to guide tactical decisions

Should include:

Target customer, point of parity, point of differentiation

Point of Parity

A feature that a product must have so customers consider it a legitimate option in a product category

Job

What a customer is seeking to accomplish with a specific product/service