Slide 1 - The GrowDelta Initiati

							     „MARKETING AND BRANDING YOUR NEW
              SMALL BUSINESS‟


    Charles Noble, PhD
    Marketing Department, The University of Mississippi
    Principal, CSN Marketing Solutions




www.growdelta.com
                                        www.growdelta.com




OVERVIEW
   Basic Terms and Concepts
       What is Marketing?
       Needs, Wants & Demands
       Satisfaction
       Segmentation, Targeting & Positioning / Differentiation
   Know Your Customer
   Strategic Marketing
       Competitive Advantage
       Value Proposition
       Finding the Right Idea (SWOT)
   Understanding Your Brand
   The Marketing Mix
   Conclusions
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   Basic Terms and Concepts
     What  is Marketing?
     Needs, Wants & Demands

     Satisfaction

     Segmentation, Targeting & Positioning /
      Differentiation
   WHAT IS MARKETING?
Marketing is a process by which
 companies create value for customers
 and build strong customer relationships
 to capture value
(profits) from customers in
return.
Marketing is not just
 ―selling‖!

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WHAT IS MARKETING?
         The Marketing Process




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UNDERSTANDING THE MARKETPLACE
AND CUSTOMER NEEDS
     Customer Needs, Wants, and Demands

             •States of deprivation

 Needs        •Physical—food, clothing, warmth, safety
              •Social—belonging and affection
              •Individual—knowledge and self-expression




 Wants       •Form that needs take as they are shaped by culture and
              individual personality




Demands      •Wants backed by buying power
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SATISFACTION

   Consumer satisfaction is a function of
    consumer expectations and perceived
    product performance.
       If Performance Is BELOW
         Expectations = Disappointment
       If Performance EQUALS
        Expectations = Satisfaction
       Performance Is GREATER
        than Expectations = Delight!
MARKET SEGMENTATION
MARKETING STRATEGY AND THE MARKETING MIX
            Customer-Driven Marketing Strategy
Market segmentation is the division of a market
 into distinct groups of buyers who have distinct
 needs, characteristics, or behavior and who
 might require separate products or marketing
 mixes
Market segment is a group of consumers who
 respond in a similar way to a given set of
 marketing efforts
MARKET SEGMENTATION
       Segmenting Consumer Markets




        Geographic     Demographic
       segmentation    segmentation




       Psychographic    Behavioral
       segmentation    segmentation
   MARKET SEGMENTATION
               Segmenting Consumer Markets


Demographic segmentation
  divides the market into
  groups based on variables
  such as age, gender, family
  size, family life cycle,
  income, occupation,
  education, religion, race,
  generation, and nationality
   MARKET SEGMENTATION
                Segmenting Consumer Markets

Income segmentation divides
  the market into affluent or
  low-income consumers
Psychographic segmentation
  divides buyers into different
  groups based on social
  class, lifestyle, or
  personality traits
 MARKET SEGMENTATION
            Segmenting Consumer Markets


Behavioral segmentation
  divides buyers into groups
  based on their knowledge,
  attitudes, uses, or responses
  to a product
 Occasions
 Benefits sought
 User status
 Usage rate
 Loyalty status
MARKETING STRATEGY AND THE MARKETING MIX

           Customer-Centered Marketing Strategy



Market targeting is the process of
 evaluating each market segment‘s
 attractiveness and selecting one or more
 segments to enter
DEMOGRAPHIC TARGETING BY AGE




Crest targets adults with the ad and product on the left,
and children with the ad and product on right.
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MARKETING STRATEGY AND THE MARKETING MIX
          Customer-Centered Marketing Strategy


Market positioning is the arranging for a
 product to occupy a clear, distinctive, and
 desirable place relative to competing
 products in the minds of the target
 consumer
   DIFFERENTIATION AND POSITIONING

Product position is the way
   the product is defined
   by consumers on
   important attributes—
   the place the product
   occupies in consumers‘
   minds relative to
   competing products
     Perceptions
     Impressions
     Feelings
    DIFFERENTIATION AND POSITIONING


Positioning maps
 show consumer
 perceptions of
 their brands
 versus
 competing
 products on
 important buying
 dimensions
 DIFFERENTIATION AND POSITIONING
        Choosing a Differentiation and Positioning Strategy



Identifying a set of possible competitive
   advantages to build a position by
   providing superior value from:

   Product differentiation
   Service differentiation
   Channel differentiation
   People differentiation
   Image differentiation
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   Know Your Customer
CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
     Factors Influencing Consumer Behavior
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CHARACTERISTICS AFFECTING CONSUMER
BEHAVIOR


Culture is the learned values, perceptions, wants,
 and behavior from family and other important
 institutions
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CHARACTERISTICS AFFECTING CONSUMER
BEHAVIOR
Subculture are groups of people within a culture with
  shared value systems based on common life
  experiences
  and situations
 Hispanic
 African American
 Asian
 Mature consumers
CHARACTERISTICS AFFECTING CONSUMER BEHAVIOR
                   Groups and Social Networks

   Word-of-mouth influence and
    buzz marketing
     Opinion  leaders are people
      within a reference group who
      exert social influence on others
     Also called influentials or
      leading adopters
     Marketers identify them to use
      as brand ambassadors
CHARACTERISTICS AFFECTING CONSUMER BEHAVIOR
             Groups and Social Networks


                    Online Social Networks are
                     online communities where
                     people socialize or exchange
                     information and opinions
                    Include blogs, social
                     networking sites (facebook),
    Click!
                     virtual worlds (second life)
    CHARACTERISTICS AFFECTING CONSUMER
    BEHAVIOR
                       Social Factors

   Family is the most
    important consumer-
    buying organization in
    society
   Social roles and status
    are the groups, family,
    clubs, and
    organizations that a
    person belongs to that
    can define role and
    social status
   CHARACTERISTICS AFFECTING
   CONSUMER BEHAVIOR
                      Personal Factors


Lifestyle is a person‘s
   pattern of living as
   expressed in his or her
   psychographics
 Measures a consumer‘s
   AIOs (activities, interests,
   opinions) to capture
   information about a
   person‘s pattern of acting
   and interacting in the
   environment
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   Strategic Marketing
     Competitive Advantage
     Value Proposition

     Finding the Right Idea (SWOT)
COMPETITIVE ADVANTAGE
   Identifying Possible Value Differences and
              Competitive Advantages

Competitive advantage is an advantage over
 competitors gained by offering consumers
 greater value, either through lower prices
 or by providing more benefits that justify
 higher prices
DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY

              Choosing a Value Proposition



  The value proposition is the set of benefits
  or values a company promises to deliver to
  customers to satisfy their needs
   Hardee‘s Thickburgers Called ―Food Porn‖
    Chain Bucks Health Trends with 1,200-Calorie Burgers
   While some fast-food chains are earning kudos (and increased sales)
    for lighter sandwiches and salads, the Hardee‘s chain seems stuck in
    the past, according to the Center for Science in the Public Interest
    (CSPI). In fact, in the December issue of its Nutrition Action
    Healthletter, CSPI is calling Hardee‘s prehistoric line of Thickburgers
    ―Food Porn.‖ The new burgers, which come in 1/3-pound, 1/2-pound,
    and 2/3-pound payloads, make Quarter Pounders, Big Macs, and
    even some Whoppers seem downright dainty by comparison, says
    CSPI.
   ―Hardee‘s seems not only oblivious to America‘s obesity epidemic, but
    also to the trend toward healthier fast food,‖ said CSPI executive
    director Michael F. Jacobson. ―To those who say we don‘t need calorie          The Six Dollar Thickburger®
    counts on menu boards, I say, ‗Have you met the Thickburger?‘‖                 A charbroiled 100% Black
   The smallest Thickburger has 740 calories and 16 grams of saturated
    fat—roughly double that of a Quarter Pounder. A Monster Thickburger            Angus beef patty, American
    has two patties, three slices of cheese, and four strips of bacon, for a       cheese, lettuce, tomato, red
    total of 1,200 calories and 34 grams—almost two days‘ worth—of
    saturated fat.                                                                 onion, mayonnaise, ketchup,
    ―A good rule of thumb is that if a burger needs a comma in its calorie

    count, it‘s virtually impossible to fit into a healthy diet,‖ Jacobson said.   mustard and sweet pickles
   Food Porn is a regular back-page feature on CSPI‘s Nutrition Action            on a sesame seed bun.
    Healthletter, which is best known for its groundbreaking studies of
    various restaurant foods. With more than 800,000 subscribers in the
    U.S. and Canada, Nutrition Action is the largest circulation health and
    nutrition newsletter in North America.
FINDING YOUR OWN BUSINESS IDEA: “SWOT” YOURSELF!


            Marketing Analysis – SWOT Analysis




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   Understanding Your Brand
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BRANDING IS ABOUT:

 Creating true value in what you are offering…
 Developing a positioning that separates you
  from the competition…
 Offering something that connects and
  resonates with the target market(s)…
 Communicating this message to the people
  who need to hear it…
 Delivering the goods! (making good on the
  branding promise)
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SOME BRANDS YOU MIGHT KNOW...
PRODUCT AND SERVICE DECISIONS
   Individual Product and Service Decisions

Brand is the name, term, sign, or design—or a
   combination of these—that identifies the
   maker or seller of a product or service
Brand equity is the differential effect that the
   brand name has on customer response to the
   product and its marketing
  How much extra will you pay for your favorite brands?
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THE BRAND EQUITY PREMIUM!


                  Price: $7.99
                  Size: 12 OZ
                  BAG




                VS.



$.11 / oz.                  $.67 / oz.
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   The Marketing Mix
MARKETING STRATEGY AND THE MARKETING MIX

      Developing an Integrated Marketing Mix



  Marketing mix is the set of controllable
   tactical marketing tools—product, price,
   place, and promotion—that the firm
   blends to produce the response it wants
   in the target market
MARKETING STRATEGY AND THE MARKETING MIX

        Developing an Integrated Marketing Mix




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WHAT IS A PRICE?

 Price is the amount of money charged for a
    product or service. It is the sum of all
    the values that consumers give up in
    order to gain the benefits of having or
    using a product or service.
FACTORS TO CONSIDER WHEN SETTING PRICES

            Customer Perceptions of Value




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FACTORS TO CONSIDER WHEN SETTING PRICES

          Customer Perceptions of Value




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HOW DO SOME COMPANIES „GET
AWAY WITH‟ CHARGING MORE?




               VS.
      $17.80            $27.95 + tax
  SOME POSSIBLE PRICING STRATEGIES


High-low pricing involves charging higher prices on
   an everyday basis, coupled with frequent sales
   and other price promotions
Everyday low price (EDLP) involves charging
    constant, everyday low prices with few sales or
    discounts
Premium pricing charges high prices for a great
    product or service!
Price leadership is having the cheapest deal in town
THE PROMOTION MIX
         Major Promotion Tools




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ADVERTISING
Advertising is any paid form of non-personal
  presentation and promotion of ideas, goods, or
  services by an identified sponsor
ADVERTISING
              Setting Advertising Objectives

An advertising objective is a specific communication
 task to be accomplished with a specific target
 audience during a specific time
                   Objectives are classified by
                       primary purpose
                    Inform
                    Persuade
                    Remind
   ADVERTISING
              Creating the Advertising Message

Advertisements need to break through the clutter:
 Gain attention

 Communicate

   well
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PUBLIC RELATIONS

  Public relations involves building good
    relations with the company‘s various publics
    by obtaining favorable publicity, building up
    a good corporate image, and handling or
    heading off unfavorable rumors, stories,
    and events
  Public relations is used to promote product,
    people, ideas, and activities
  PERSONAL SELLING
               The Role of the Sales Force


Personal selling is the interpersonal part of the
  promotion mix and can include:
 Face-to-face communication

 Telephone communication

 Video or Web conferencing
    SALES PROMOTION

Sales promotion refers to the short-term
  incentives to encourage purchases or
  sales of a product or service:
   Consumer promotions
   Trade promotions
   Sales force promotions
THE NEW DIRECT MARKETING MODEL

               Direct marketing is:
                A marketing channel
                 without
                 intermediaries
                An element of the
                 promotion mix
                Fastest-growing
                 form of marketing
FORMS OF DIRECT MARKETING
 ONLINE MARKETING
             Placing Ads and Promotions Online

Viral marketing is the Internet version of word-of-
   mouth marketing and involves the creation of a Web
   site, e-mail message, or other marketing event that
   customers pass along to friends
    ONLINE MARKETING
     Creating or Participating in Social Networks (Web Communities)


 Social Networks (Web communities) allow
  members to congregate online and exchange
  views on issues of common interest
 iVillage.com

 Facebook
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SPONSORED PLACEMENTS ON SOCIAL NETWORKING SITES AND OTHERS
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CAN‟T FORGET TRADITIONAL MEDIA
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SO, WHAT IS MARKETING? PULLING IT ALL TOGETHER
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SOME SIMPLE CLOSING THOUGHTS
 It always begins and ends with customers –
  know who they are and what they want, then
  make them happy!
 Always monitor and competition, changing
  consumer tastes, and any economic factors
  that may influence your business.
 When times are tough, good companies get
  creative in their spending but often spend more
  on marketing!
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THANKS FOR YOUR TIME!...