(Week 1) BRANDING: Marketing Strategy and Brand Positioning Flashcards
What is the essence of marketing?
To have a very strong brand.
What is marketing?
The study of a market. For a market to exist you need an exchange. What marketing means is going to differ as a function of different aspects of those exchange. Seller’s market; Buyer’s Market; Connected Community; Economic Uncertainty
What is a seller’s market
Seller has a product, and if you want that product, you have to come to the seller. (seller has all the power)
What is buyer’s market
Lot’s of competition, lot of products out there, and the buyer has the power.
What is marketing in a seller’s market?
Product focussed marketing. You should develop that product to the best of your ability. You should innovate in that product, you should try to reduce cost and you should really focus on the product. I’m the expert, and I create the very best product I can based on my expertise.
What is your business objective in a product focused market?
to sell as much as you can. Increase your market share. The higher your volume, the lower the production cost and higher profitability.
Where does profitability come from in a product focused market?
Profitability from a product-focused market is going to come from volume. Sell as much as you can. profitability is tied to market share.
What is marketing in a Buyer’s market?
Customer focused marketing. to focus on the customer to get that customer to buy from me rather than the competition. What’s the best way to do that? To look at what the customer wants, and deliver a product that meets the needs of that customer.
Is customer focused marketing the opposite of product focused marketing?
Not exactly. It’s a different type of marketing.
Why is customer focussed marketing so different from product focussed marketing?
Because every customer wants something different.
What is the intuition of customer focused marketing?
to pick and choose customers. Say yes to some customers and no to other customers. (segmentation). If you try to please every customer, you’ll go out of business.
Where does the profitability come from in a customer focused market?
1) Not from volume, not from reduced cost, but from creating value. If you give a customer exactly what he wants, he’s willing to pay a premium price.
2) The other way, customer based marketing is profitable is by giving the customer what they want time after time after time (customer share or share of wallet => aka loyalty). This is because acquiring new customers is costy and time intensive, so it’s much cheaper if the same customer always comes back.
3) Figure out what other products a customer wants and cross sell them.
Explain “connected community” => Experience orientation
Because of globalization, internet, social media,…, we not only have an exchange between buyers and sellers, it’s not a one to one conversation anymore. Customers can talk to other customers. And so you have to be really careful, in every transaction with the customer now, that you deliver not only value, but that you deliver a top notch customer experience. Customer experience starts way before the transaction, and ends way after.
Explain “economic uncertainty”
=> Trust Orientation
Because of recession, trust is lost in marketing by people. Marketing now has to focus on authentic, genuine customer value. In order to be profitable, you not only have to deliver customer value over time and in an experiential way, but now because of the tightness of the economy and the uncertainty there, you really have to cut costs and figure out a way to deliver value in a very discipline manner and be very flexible to changes in the market place.
What is the competitive advantage in a production orientation market?
In a product orientation the bigger companies win because they tend to have larger market share and lower cost, and lower cost is a big strategic advantage.
