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31 Cards in this Set
- Front
- Back
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The Big Picture framework helps you:
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o Identify
o Prioritize o Express |
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- The Big Picture framework can be used in a Marketing Plan for
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o Situation Analysis
o Marketing Strategy o Execution |
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Ethics--Tools and Responsibility
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o A skilled marketer use the tools of marketing to get people to do what they would
not otherwise have done (e.g. diamond engagement rings) o Marketing practitioners have an obligation to use their tools responsibly o Opportunities for unethical decisions throughout The Big Picture framework |
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o Consequences of an Inappropriate Target
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R. J. Reynolds received negative publicity when the target audience
description was leaked to the press. RJR responded by broadening the target to include males. Three test markets held in Houston, Phoenix, and Nashville failed to meet sales expectations. The product was withdrawn. |
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o Consequences of Deceptive Advertising
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In one study, subjects taking Xenadrine EFX lost an average of 1.5 lbs.
over 10 weeks while subjects taking a placebo lost 2.5 lbs. over the same period. Product endorsers, who were paid $1,000 to $20,000 for their testimonials, also dieted and exercised. The ads failed to mention the payments, diets, or exercise. “You won’t find weight loss in a bottle of pills that claims it has the latest scientific breakthrough or miracle ingredient. Paying for fad science is a good way to lose cash, not pounds.” (FTC Chairman Deborah Platt Majoras) FTC reaches combined $25 million settlement with four major marketers of weight-control pills who were accused on making false or unsubstantiated claims. |
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Whats the point of ethics?
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o We observe a range of practices in the marketplace.
o We have anecdotal evidence that highly unethical practices are punished in the marketplace. |
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Example of good ethics
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Dove
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What is and what question does Fundamental Entity answer?
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Fundamental entity represents the perspective which you will evaluate decisions
throughout the framework |
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What factors influence branding decision
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o Time frame: firms with a need for short product development timetables may
consider an umbrella strategy in order to leverage existing awareness and sped time to market o Robustness of brand positioning: some brand positioning are extendable across a wide variety of product/market/consumer segments. In particular, benefitoriented, as opposed to feature-based, positioning tend to be more robust and more appropriate for umbrella branding o Product risk: if the risk of product failure is high, or the negative impact of such a risk is high, a distinct brand strategy is recommended to mitigate this risk o Firm Competencies: certain competencies align better with distinct or umbrella strategies. For example, a firm implementing an umbrella strategy must possess the marketing abilities necessary to implement and maintain a consistent positioning across a number of brands. In contrast a firm implementing a distinct branding strategy with multiple brands will likely need strengths in product development |
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Characteristics of umbrella branding
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- Marketing efficiency
- Efficient decision-making - Engenders long term thinking - Homogeneous portfolio - Constrained positioning options - Constrained new market entry - Conflicting sources of volume |
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Pros and cons of distinct branding
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- Increased marketing expense
- Less efficient decision making - May engender short term thinking - Diversified portfolio - Flexible positioning options - Flexible new market entry - Flexible sources of volume |
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Core competence question and definition
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what are we good at?
o A skill that leads to a sustainable competitive advantage o Requires significant resource investment o Generates strategic assets that in turn generate products o Provides access to a wide variety of markets. o Should make a significant contribution to the perceived customer benefits of the end product. o Should be difficult for competitors to imitate. |
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Goal & Time frame question and definition
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Where are we going? o Share, profit, unit or dollar volume
o Time frame: short or long term o Initially, it serves as a decision aid o If the goal statement is a good one, it will serve as a reference point for accomplishing just this o The second function of a goal is that it serves to define performance - Goal Criteria o Measurable: Because one purpose of a goal is as a standard for measuring performance, it is crucial that is measurable – quantify the goal o Time Delimited: In order for a goal to be measurable, we must know when we are going to measure it |
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Types of Loyalty and definition
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Heart Loyalty
A strong emotional involvement with a particular brand “I Love My Diesel Jeans.” Badge/Neck-tie products / Products that are consumer in public and thought to reflect something about the nature of the person consuming them. Highly emotional and personal and resistant to rational appeals. Competitive challenge may be perceived as a personal challenge Head Loyalty A highly involved loyalty that is rational in nature Specific reasons why someone made their choice To steal share you need a compelling rational argument Primary Revenues Hand Loyalty A low involvement, habitual loyalty Loyal out of routine – toilet paper To steal share must convince them it is worth it to think about changing |
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Aquision activites
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o Awareness advertising: Ads that just make customers aware of the product
o Trial advertising: Ads that convince consumers to trying a new product o Trial promotions: Discount for first-time customers o Viral marketing: Word of mouth between customers o New product introductions: Products designed to appeal to new users |
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Retention Activities include:
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Advertising
Promotion (continuity objective) Loyalty programs (clubs) Customer relations Product improvements/line extensions |
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Core competency, business objective and time frame of acquision?
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Core competency: New product development, marketing
business objective: revenue, share time frame: Long |
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Core competency, business objective and time frame of retention?
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Core competency: customer service, market research
business objective: profitability time frame: Short |
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What does segmenting do?
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o Driven by customer benefit / considers key benefits sought by consumers
o Defines your key competitors o Reflects your core business o Coca-cola moved the soft drink category from the benefit of thirst quenching to a lifestyle benefit o Should drive choice of source of volume |
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Segmentaton vs. stereotyping
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o Segmentation:
Emphasize attitudinal variables Avoid drawing conclusions beyond these variables that might limit the size of the target audience When developing specific descriptions, consider them to be individuals, not representatives o Stereotyping Emphasize physical variables Draw unrealistic and potentially offensive conclusions regarding attitudes and behaviors Consider any individual in the population as a representative of the population as a whole - Consumer Segmentation Variables are |
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demographic examples
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Age, family size, family life cycle, gender, income, occupation,
education, religion, race, generation, nationality, social class |
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behavioral examples
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Occasions, user status, user rate, usage of related products,
media usage Highly predictive of sales |
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Attitudinal examples
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Examples: Preferences, opinions, beliefs
Difficult to measure May predict sales Dynamic/can provide competitive advantage |
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Aspirational examples
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Examples: Hopes for the future
Difficult to measure Could evoke a emotional response |
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What is main and dynamic variable
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Main variable: cost of entry to the category; the primary benefit that
consumers are seeking (Fast Food -> convenience) Dynamic variable: what we do different The decision to emphasize main or dynamic variable is made when you chose source of volume |
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Characteristic of a variable
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Must be able to measure fairly easily (extent to consumers need for
convenience vs. need for self esteem) Should generate a target audience that we reasonably believe can be accessed (need for convenience vs. need for privacy) Should generate a reasonably substantial target audience |
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Hoe to collect data for Acquisition/steal share
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we will take only to competitive brand users, exploring
their perceptions of performance on the two segmentation variable for all competitors. Find out their level or awareness of our brand |
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How to collect data for Retention/stimulate demand
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we will talk to current users of our brand for
whom we are seeking to either increase volume of user or average price paid. We will be interested in learning why these customers have selected our brand, what benefits they value, what benefit remain unmet, where we might be disappointing them. |
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How to collect data for Acquisition/stimulate demand
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we will talk to potential category users; those
customers who might be interested in the category but not currently participating in this category. It will be important to uncover very fundamental needs that this group has, and understand how they are fulfilling these needs right now |
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Components of Target Audience Description
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o Name: this name will automatically communicate important nuances about the
target that might not be conveyed otherwise, if chosen carefully o Habitat: Where our target lives and works o Revealing Behaviors: Speak a great deal about the type of customer we are targeting (does she walk the dog or let it out in the backyard?) o Consumption: The products and services that our target customer already consumers provide another set of insights into her character (Does she own a hybrid or a hummer) o Doesn’t have to be long and by choosing a few key elements can be very effective |
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What is STP with definition?
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o Segmentation: how we will define our market
o Targeting: describe who we will attempt to reach o Positioning: outlines what we will say to them |
