Marketing Simplified

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Marketing Simplified 4Ps

• Definition of Marketing
• Identifying, anticipating and satisfying
• customer needs profitably
• A Product is more than just physical design
  characteristics or featuresits how it is
  perceived by the customer and how its delivered
  and serviced, etc.

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5 Principles of Marketing

• find out what your target market needs, and then
  (working with them) conceive a product to fulfill
  those needs.
• define who your customers are in detail (target
  market of people who write your check). 
• develop a message that speaks directly to their
  needs.  Offer clear benefits, not features . This
  is the VALUE PROPOSITION
• position yourself in the mind of the customer
  where they already go and search. 
• make your products and services easy to adopt and
  obtain by your target customer. 

3
Product includes services as well as physical
things.  So, a cruise, tax consulting and
babysitting are products just like a six-pack of
soft drinks and a plaid shirt.

• In fact all products are services because they
  all do something for the customer.
• To conceive your product, you have to consider
  all elements which, combined, satisfy your
  customer's needs -BETTER than your competitor.
  (product includes packaging and warranties, as
  well as features)

4
Research the competitions products

• You need to know what makes your product better
  than your competitors' to offer a good value
  proposition
• Lead user studies
• You can buy their products and try them out 
• Put yourself in your customer's shoes (use
  surveys or focus groups) to identify what they
  like (and hate) in competitors products.
• Surf! read reviews of products

5


Price

• Two things to consider
• Willingness to Pay
• How much will your product save your customer?
• How much does competition charge?
• What is your cost?

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Price
What makes a customer willing to pay more for
your product than for the competitions?
Benefits (things that are valuable to them)
you offer that they dont

• Two things to consider
• Willingness to Pay
• How much will your product save your customer?
• How much does competition charge?
• What is your cost?

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Important Points when setting price

• Target Market who is the customer (actually
  writes the check)? Who influences this person?
  What is customers willingness to pay?
• Business Model - describes the opportunity and
  how seller can make money. It tells who pays
  (above), how much, how often and why. It includes
  the Value proposition (see below)
• Value Proposition (offer to the customer)- tells
  customers WHY they should give up the price to
  obtain your offering. It also tells them why it
  is valuable to deal with you rather than
  competitors
• Demand Elasticity - Will customers in your market
  switch to your competitors product over a small
  change in price?

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Value Proposition an offering to the customer
that is worth more than the price he must pay.
Willingness to pay, W
W-P Value? Customer Happiness
Look for Business Models (opportunities) where
W-C is big! This lets you give the customer a
big W-PValue and you can still get a big
P-CProfit
Price, P
P-C Profit
Cost, C
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Market Segmentation

• Market segmentation is the process of dividing
  markets into groups of potential customers with
  similar needs or characteristics who are likely
  to exhibit similar purchase behavior. They react
  to your product offering in the same way

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Value Chain

• The Value Chain is a series of stages of
  processing performed by a string of companies or
  players collaborating to satisfy the customer.
  It includes Middlemen, partners and suppliers,
  etc.
• Streamlining the Value Chain can be the source of
  a great business model! Focus on places in the
  Value Chain where the majority of the value is
  added and let others handle the low value
  functions wheres the money?

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Price might be lowered over time and yet total
sales in dollars growsSkimming
Amount of Sales
Time
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PLACE - Direct or Indirect

• Direct

• Middleman

Use Cost / Benefit analysis Which way gives YOU
the highest rate of return
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PROMOTION
Promotion is to inform customers about the
Product, Price, and the Place where the product
is available.
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PROMOTION is all about perceptions

• How do they perceive your offering? Is it
  valuable to your customer because it's
  inexpensive for what they get or is it the "only
  offering available?
• Can you change perceptions with information?
• Whats the best way to get them that information?

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Positioning is related to Promotion rather than
place

• because it deals with how potential buyers see
  (perceive) the product. Marketers try to create
  an identity in the minds of their target market
  for the product, brand company in comparison
  to competing products companies.
• What differentiates our product from other
  solutions? Physical attributes, packaging,
  distribution or business model.
• How might we position our product? - we want to
  communicate a message that highlights the
  advantages of our product and carves us out a
  niche hopefully with less competition.

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Types of Promotion

• Newspaper/ Magazine
• Television ads
• Radio ads
• Telephone
• Internet

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Types of Promotion

• Direct Selling
• Direct Mail
• Specific Placing of Material
• Public Relations

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Questions?

• Two links (segmentation and positioning)
• SMART Market Segmentation - Market Research
• http//www.s-m-a-r-t.com/Exp_brandpos.htm