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„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 www.growdelta.com 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‖! www.growdelta.com WHAT IS MARKETING? The Marketing Process www.growdelta.com 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 www.growdelta.com 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. www.growdelta.com 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 www.growdelta.com Know Your Customer CHARACTERISTICS AFFECTING CONSUMER BEHAVIOR Factors Influencing Consumer Behavior www.growdelta.com CHARACTERISTICS AFFECTING CONSUMER BEHAVIOR Culture is the learned values, perceptions, wants, and behavior from family and other important institutions www.growdelta.com 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 www.growdelta.com 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 www.growdelta.com www.growdelta.com Understanding Your Brand www.growdelta.com 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) www.growdelta.com 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? www.growdelta.com THE BRAND EQUITY PREMIUM! Price: $7.99 Size: 12 OZ BAG VS. $.11 / oz. $.67 / oz. www.growdelta.com 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 www.growdelta.com www.growdelta.com 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 www.growdelta.com FACTORS TO CONSIDER WHEN SETTING PRICES Customer Perceptions of Value www.growdelta.com 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 www.growdelta.com www.growdelta.com 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 www.growdelta.com 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 www.growdelta.com SPONSORED PLACEMENTS ON SOCIAL NETWORKING SITES AND OTHERS www.growdelta.com CAN‟T FORGET TRADITIONAL MEDIA www.growdelta.com SO, WHAT IS MARKETING? PULLING IT ALL TOGETHER www.growdelta.com 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! www.growdelta.com THANKS FOR YOUR TIME!...
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