Bmw
When BMW first made a strong competitive push into the U.S. markel n Ihe early 1930s, il positioned ihe brand as being Ihe only automobile that offered both luxury and peifwmance. At thai time. American luxury cars were seen by many as lacking performance, and American performance cars were seen as lacking luxury. By relying on the design of its cars, its German heritage, and other aspects of a well-conceived marketing program. BMW was able lo simultaneously achieve Mia poinl-ol-difference on...
Mountain Dew
Pepsi initially introduced Mountain Dew in 1969 and marketed il wiih the countrified taglinE Yahoo Mountain Dewl It'll Tickte Your Innards. By the 1990s, the brantl was languishing on store shelves despite an attempt to evolve the image with outdoor action scenes. To turn the brand around, MoUilain Dew updated he packaging and launched ads featuring a group ol anonymous young males Ihe Dew Dudes participating iri extreme sports such as bungse jumping, skydiving, and smwbnarfling while consuming...
Keys To Longterm Market Leadership
The question of wtat accounis or tie success of loftg-lasting, successful comjjanbes. was addressed in a six-year study by Collins and Ponras called Built to Last. The Staniord researchers identified Wfb companies in each ol t8 industries, one Ihatlheyca'led a-visioiiasy company1 and one thai iney called a 'comparison company. The visionary companies were aftowledged as the industry leaders and widely admired they set ambitious goals, conrmtmicated Hiam 10 Heir employees, and embraced a h gn...
III Devising a Branding Strategy
The branding strategy for a firm reflecis iben timber and nam re of common and distinctive brand elements applied 40 the different products sold by the firm. In oilier words,, devising a branding strategy involves deciding the nature of new and existing brand elements to be applied to new and Existing products. The decision as to how to brand new products, 'is especially critical. When a firm introduces a n jw product, it lias three main choices I, It can develop new bland elements for the new...
Otis Elevator Company
AC a typical bank of elevators in an oflice beilding lobby, you press Ihe up button and take the lirsl elevator that comes, with no idea how many slops there will be until you get ta your floor, how Otis has developed a smart elevator. You key in your Hour on a cenlratized panel. The panel tells you high elevator is going to lake you to your floor. Ydyr elevator takes you right lo your Horn and races back to the looby, With this simple change. Otis has managed to turn every elevator into an...
Product Levels The Customer Value Hierarchy
In planning its market offering, the marketer needs to address five product levels see Figure 12.2 r Hacli level adds more customer value, and the five constitute a customer value hierarchy. The fundamental level is the core benefit the service or benefit the customer is really buying, A hotel guest is buying rest and sleep.' The purchaser of a drill is buying ''holes.' Marketers must see themselves as benefit providers. At die second level, the marketer has to turn the core benefit into a...
Capturing Marketing Insights 1
escape. Oth ctssoughfself-realization. People bought dream cars ami dream vacations and spent inure time iti health activities jogging. ten iris , in ii urns pee I ion, tmd in arts and crafts see Table 3.4 for a current profile . Today, some people are adopting more conservative behaviors and ambitions. Marketers must recognize that there are many different groups with different views of themselves, l it'di's qfothers. People are concerned about the homeless, crime aiul victims, nnd other...
Schwab
nnf t r1 - .'ii nt-c ij r i J gt , ii . fliramfUiWt ' Wi flfcRISSBItsUflWStF Utnp-o- GATHERING INFORMATION AND SCANNING THfc ENVIftONMEh, T CHAPTER 3 E3 Diversity goes beyond ethnic and racial markets. More than SH mil linn Americans have disabilities, and they constitute a market for home deli wry companies inch as Peapod. and for various medical services. The population in any society fails into flV lt SducatfcnaV groups illiterates, htgl Jchout drOpOutS, high school diplomas, college...
MARKETING INSIGHT MCommerce Opens Up New
Service Sector Channels 476 Channel-Design Decisions 476 Analyzing Customers' Desired Service Output Levels 476 Establishing Objectives and Constraints 477 identifying Major Channel Alternatives 477 MARKETING INSfGHT How Carmax is Transforming Evaluating the Major Alternatives 481 Channel-Management Decisions 483 Selecting Channel Members 483 Training Channel Members 403 Motivating Channel Members 483 Evaluating Channel Members 485 Modifying Channel Arrangements 495 Channel Integration and...
Image Differentiation
Buyers respond differently lo company and brand images.'Die primary way to account for Marlboro's extraordinary worldwide market share around 30 percent is that Marlboro's macho cowboy linage has struck a responsive chord with much of the rigareite-sino-kiu public. Wine and liquor companies also work hard to develop distinctive images for their brands. Image dirieteniiaiinn Tt'.s world-famous WaritMO Man image s Insianuy i cognija le on billboard and in prW ads Identity and image need to be...
Dealing With Competition Chapter 11 35c
must convince buyers hat iis product and service are comparable to the leader's. Second, buyers jurist he price sensitive. Third, the market leader must refuse tu cut its price in spile of the competitor's attack. Loiter price goods. The challenger can offer an average- or lower-quality product at a much lower price. Little Debbie Snack t, akes were priced lower than Drake's and outsold Drake's by 20 to 1. birms that establish themselves through a lower-price strategy however, can be attacked...
Info Bdn
Pepsi. U.S. Steel worries more about plastic and aluminum than about Betbleheifl Steel museums rtOw worry about theme parks and malls. Gvvd versus Mini Every industry coma ins good and bad competitors.16 A company should support its good competitors and attack its bad competitors. Good compelitors piay by the industry's rules. they make realistic assumptions about the industry's growth potential they set prices in reasonable relation to costs they Favor a healthy industry they limit themselves...
Research Insights On Brand Extensions
Academics ha e studied hrand extensions closely. Here is a sumniary of seme of their key research findings. Successful tirafd extensions occur vjhen the parent brand is seen as having favorable associations and here is a perception of fit between the parent Drand and the extension product. n There are' marry bases of fit product-related allrcbules and benefits, as well as non-ptortucf-relaled atlribules ano benefits related to common usage situations or user types. u Depending on consumer...
Ikea
Swedish rclailer IKEA look a luxury product home lumighings and furniture and made it a reasonably priced alternate for the mass marker IKEA supports its low prices by having customers self-serve, deliver, and assemble the products themselves. IKEA also gains a point-ol-difference through its product offerings. As one commentator noted, IKEA built ils reputation en the itol on Ihal Sweden produces good, safe, well-Dull tilings for the masses, it lias some of ine most Ionoiiaiive designs at he...
Info Oiw
'lliis ib un underestimate because weare omitting lit.1 cyst of advertisingand promotion, plus the fact thai only a fraction of alt pursued prospects end up belngconvcrtcd into customers. Now suppose the company estimates average customer liletimr value as follows Average number of loyal years 30 n Company profit margin .10 Customer lifctime value SVOUO This company is spending more to attract new customers than they are worth. Unless the company can sign up cus to tilers with fewer sales...
Marketing Spotlight
Krispy Kreme mates 2,1 Dill ion donuts a year. But it look more than Iresti, I Kit donuts In earn Knspy Kreme the hile ol'hottest bra id in America- in 2003. Krispy Kreflie's slock pnce quadruped in the three years Showing lis IPO in 2OQ0. and he entire cha n now generales a bill on dotas in annual revenues across more than 300 outlets. How did Krispy Kreme turn donufs into dol ais Careful brand positioning and local marketing tell Ike sltxy.' We liave o humble brand and product. says Kiispy...
MARKETING MEMO Selling Tech to the Government 233
Summary 234 Applications 254 Notes 235 Chapter 3 Identifying Market Segments and Targets 239 Segment Marketing 240 Niche Marketing 242 Local Marketing 244 MARKETING INSIGHT Experiential Marketing 245 Custornerization 24 Segmenting Consumer Markets Z47 Geographic Segmentation 247 Demographic Segmentation 249 Psychographic Segmentation 252 MARKETING INSIGHT Marketing to Generation V 253 MARKETING MEMO Cheat Sheet for 2VYear-Olds 253 Behavioral Segmentation 254 Bases for Segmenting Business...
Puma
German athletic footwear company Puma Iras used holistic marketing lo Lnng it product amp ack from being a sentimenlal maiastay of the 1970s to one o Ihe srendiest alhletic shoes around Puma uses multiple marketing approaches that wort synergisticalty to set Puma apart as an edgy, Irend-setting crand. Puma designs products with distinct customer groups in mind such assnowtjoarders, car teeing 'ans, arid yoga enthusiasts using market research generated lyy its retailer partners. Puma also target...
applications Mgm
Marketing Debate Is Target Marketing Ever Bad As marketers increasingly develop marketing programs tai' I o red to certain larget market segments, some critics have denounced these efforts as exploitative, For example, the preponderance of billboards advertising cigarettes, alcohol, and other vices in low-inconic urban areas is seen as taking advantage of a vulnerable market segment. Critics can bo especially harsh in evaluating marketing programs that target African Americans and other...
Fig 16
Fsrtois Influencing Company Marketing Slrateyy 1ARKETING 1 In practice, there is ei logical proccss that marketing follows, The marketing planning process consists of analysing marketing opportunities selecting target markets designing marketing strategies developing marketing programs and managing I h c n iaricet i ng effu rt. Figure 1 j6 presents a graiid su m ma ry of i lie ma rke t ing process and i lie forces shaping the company's marketing strategy. A number of important trends and forces...
Visa Versus American Express
Visa's POD in the credit card category is thai it is ft most widely available card, whicfl underscores the category's main benefit ol convenience. American Express, on the oilier hand, has built the equilyol its brand by highlighting the prestige associated will the use of its card. Waving established Iheir PCDs.ttsa and American Express mw compete by attempting lo b'unl each others' advantage to create POPs. Visa oilers gold and plat-mum cards to enhance Ihe prestige ol its brand and...
I Measuring Marketing Productivity
An important task of marketing research is to assess die efficiency at id effectiveness of marketing act ivii its, latkeu gt rs it cne isingly nn' being held accoumalile for thetr in vt sti n i'ins and m iisi be able tO justify marketing expenditures to senior manage me Lit.-21 In a recent Acccnturc survey, 70 percent Of marketingexecutives Stated that they did noi have a handle on the return on iheir marketing investments.- Another study revealed that ftf percent of senior management said f ii...
III Product Planning The Nature and Contents of a Marketing Plan
To carry out their responsibilities, marketing managers folJou a marketitig process. Working within the plans set by the levels above them, product managers come up with a marketing plan for individual products, lines, brands. channels, or customer groups. Each product level product line, brand must develop a marketing plan for achieving its goals. i marketing plan is a written document thai summarizes what the marketer has learned about the marketplace and Indicates how he firm plans to reach...
lit Developing and Communicating a Positioning Strategy
All iii irla'iing strategy is bin It pit SI I- Segmentation, Targeting. and Positioning. A company discovers different rieed amp and groups in the marketplace, unlets those needs and groups that it can satisfy in a superior way, and then positions i is offering st thai the target market recogniies the company's distinctive uffering and image. If a company does a pour job of positioning, the market will be confused. This happened when National Car Company and Alamo Rent-a-Car were combined by...
Competitive Frame of Reference
A starting point in defining a competitive frame of reference for a brand positioning is to determine category membership ilie products or sets of products with which a brand competes and which function as close substitutes. As we discuss in Chapter 11, competitive analysis unit consider a whole host of lac t o rs including the resources, capabilities, and likely mentions of various other firms in choosing those markets where consumers can be profitably serviced. Target market decisions are...
Contents
Chapter 11 Dealing with Competition 341 Competitive Forces 342 Identifying Competitors 343 Industry Concept of Competition 344 Market Concept of Competition 346 Analyzing Competitors 347 Strategies 347 Objectives 347 Strengths and Weaknesses 347 Selecting Competitors 348 Competitive Strategies for Market Leaders 349 ARKET1NG MEMO Benchmarking to Improve Competitive Performance 349 Expanding the Total Market 350 MARKETING INSIGHT When Your Competitor Delivers Defending Market Share 352 Expanding...
Methods Of Assessing Customer Value
Internal engineering assessment. Company engineers use laboratory lests 10 esEimate ihe product's performance characteristics. Weakness ignores me fad iiiai in different applications. ins proflucl wll have different economic value Field vsluc-in-use assessment. Customers am inter1, awf .1 aboul Cost elements associated with using lbs new-product oilenng compared lo an incombent product. The task is to asses totv mucn eiicfi e'cmcni rs worth te rte bujw. F os-group value assessment. Cos1 j ue'5...
Part 1 Myc
Program Formulation and Implementation Oiiul' the business unit has developed its principal strategics, it must wop out detailed support programs. A great marketing Strategy can bo sabotaged by poor implementation. If the unit has decided to attain technological leadership, it must plan programs to strengthen its I department, gather technological intelligence, develop leading-edge products, train the technical sales force, ana develop ads to communicate its technological leadership. Once the...
Info Jtu
Sitps Between Eva uaikxt if Alternatives and a Purchase Decision liven if consumers form brand evaluatiuns, two general factors can intervene between the purchase intent ion and the purchase decision Figure Li, i -fi-' The first factor is cite attitude of others. The extent to which another person's attitude reduces the preference for an alternative depends on nvn things I the intensity ol the other person's negative attitude toward the consumer's preferred alternative and 2 the consumer's...
Gathering Information And Scanning The Environment Chapter 3 S7
SAVINGS, DEBT, AND CREDIT AVAILABILITY Consumer expenditures arc affected by savings, debt. and credit avaipability. U.S. consumers have ei high debt-to-in co me ratio, which slows down further expenditures on housing and Iiirge-ticket items. Credit is very available in the United States but at fairly high interest rates, especially to lower-income borrowers. Mere the Internet can offer a helping hand Consumers seeking a mortgage can go to lcndingtrcc.com, fill out a single loan application,...
Stages in the Buying Process
At this point we are ready to describe the general stages in the business buying decision process, liobinson and Associates have identified eight Lages and called them bitypltases.-The stages are shown in Table 7.1. This model is called the buygnif framework. Table 7,1 describes the buying stages Involved in a new-task buying situation, in modified-re buy orslraight rehuy silualinns, some stages are compressed or bypassed. F or example, in a straiglu-rcbuy situation, the buyer normally has a...
The Internet Advantage
The internet gives today's companies a new sel of capabilities Companies can operate a powerful fl information and sales channel, Ihe Internal, with augmented geographical reach to inlorm and pronste their businesses and prork ls worldwide. Ry establishing one or more Web sites, a company can tel us products and services, its history, iis business philosophy. Us job opportunities, ami other informalicn ol iri'eresi to visitors, Unlike the ads and brochures ol the past, the internet permits a...
Market Summary
Pegasus possesses good Information about the market find knows a great deal about the common attributes of the most prized customer. This information will be leveraged to better understand who Is served, what their specific needs are, and how Pegaste can better communicate with them. Recreational Fitness Speed I lackey list rente The profile for the typical Pegasus customer consists of the following geographic, demographic, and behavior factors Pegasus has no set geographic target area, fly...
ErickandCck Compaas 495
Summary 497 Applications 49B Notes 499 Chapter 16 Managing Retailing, Wholesaling, and Logistics 503 MARKETING INSIGHT Franchise Fever 508 MARKETING MEMO Helping Stores to Sell 509 MARKETING INSIGHT Making Labels Smarter 513 . ARK ET I NG MEM ' gt What Women Want from Customer Trends in Retailing 517 Private Labels 518 House Brands 519 The Private Label Threat 519 Wholesafing 520 The Growth and Types of Wholesaling 521 Wholesaler Marketing Decisions 521 Trends in Wholesaling 522 Market...
applications
Marketing Debate Does Marketing Create or Satisfy Needs Marketing has often been defined in terms of satisfying customers' needs and wants, Critics, however, maintain ihat marketing goes beyond that arid creates needs and wants that did not exist before. According to these critics, marketers encourage consumers lo spend more money than they should on goods and services they really do not need. Take a position Maikeiing shapes . lt iri un er needs and wants versus Marketing merely refleels I he...
Capturing Marketing Insights
income has jumped percent since . to S S2 hi II ton in ni double ibe pocc of tin rest of the population. h - r-c n the Foot America its eat, to the clothing they wear, tile music they listen to, and the cars they buy, 11 is panics ire having it huge impact. Companies arc scraibbluigtb refine iheif.products and their marketing to renrh this fastesfrgrpwirtg end most influential cOttsnmur group 6 Procter amp iambic. In 2000 tile company set up a 65-person bilingual team to better target Latino...
Green Marketing
Allhough envinonmental issues have long affected marketing practices, especially in Europe, ihelr relevance has increased in the last decade or so, Mth the weM-pufoHciietl Earth Oay icflvitiies in the United Stales in April the green marketing movement mas Dorn. An explosion oi environmentally friendly prrxtucls and marketing programs apfieared as limn after lirm fried to capitalize on consumers' perceived increased sensitivity to environ nental issues. From a trancing perspective, However,...
Info Xxq
Focus spending on brand drivers fealurss and bene I its truly important to customers , not anies features and beneli s thai a brand needs lo stay in the game and Deepen insigbls ga ht .y customers gel prod tcl otyrmaiiOn arid mat buying decisions. Based on research on companies hat successfully ftevetop big ideas, MeKinsey identifies lfiree characteristics that help to position marketers as business development leaders 1. Force the widest view when defin ng iheir btisircss. assets, and...
Info Glv
Midietab Ultra and Miller Lite beer which happily proclaimed it contained half the carbs of category leader Bud Light and a whole line of products from Atkins Nutr itionals.1 The food industry isn't afone in having to make adjustments. The sales slump in the apparel sector has been attributed in part to a failure to properly design and size clothing to reflect a wider variety of American shapes, s ies, and cultures In this chapter, we consider how firms can develop processes to track trends. We...
Info Wkm
DEVELOPING MARKETING STRATEGIES AND PLANi CHAPTER 2 43 generally in heir teens through their early twenties. I tie extreme segment is of similar iigr to the hnekey players. Of the users who are over 20, fir percent have an Undergraduate degree qj substantial undergraduate euursewurk. c The ad 11 It users h avc a mot I in n persona I .i neom e o f 54 7,000. Users enjoy fitness activities not as a means for a healthy life, but as an intrinsically enjoyable activity in ilseli. h Users spend money...
Gathering Information And Scanning The Environment
iries, for instance will fiicc 1 litr huge problem of having lo support li vastly larger population of elderly people,1-'1 A population Ciui be subdivided into six age groups preschool, school-age children, Kens, yi gt H rig adults age 2b to 4 1, muidle-aged ai lulls age '10 to 65, and older ad nils age fij and up, For marketer . ihe most populous age groups shape the marketing environment, in Iht Qnited Stales, ihe baby boomers the 7fl million people bom between 1946 and 1984, are one of tlie...
Progress Amd Priorities In Customer Equity Management
Customer equity has tools in many di erent marking concepts drret ira te ig and database marketing. seirvtce qugNy, relationship marketiny. brand equity. Us unique incus. iMMfttiT. is on understanding he value of lhe custodier 10 me limn aod bpw to manage we cuslomer as a strategic asset to increase overall firm value for shareholders Customer equity can be seen as lhc expccted lifetime value of a firm's fisting customer IBSB pins me empatie tutors Ultime value oi newly acquifet customers. This...
Executive Summary
Tegasus Sports International is a start-up a f term artet inline skating accessory manufacturer. In addition to the aftcmiarket ptjpduds, Pegasus is developing Skat ours, a service that takes Clients out, in conjunction with a tor n skate shop, and provides them with an afternoon of skating using inline skates ami some of Pegasus' other accessories such as SkateSails. The aft er ma r-kci skate acccssory market has been laVgely ignored. Although there are several major manufacturers of the...
At Enterprise You Always Know Where You Stancl
I hrrt'it .l pb whit the numb'.T ui u pltatYlf is y4-.li 1 liilS why lit. iHMltf ulm till- scascm mi nutter i h ii lli Lt n, on il anil in Enicrprisc- I hrrt'it .l pb whit the numb'.T ui u pltatYlf is y4-.li 1 liilS why lit. iHMltf ulm till- scascm mi nutter i h ii lli Lt n, on il anil in Enicrprisc- Pick Enterprise. We'll pick you up i aoo reni-a-car Pick Enterprise. We'll pick you up i aoo reni-a-car
applications 1
the organization's objectives, skills, and resources and its changing market opportunities. The aim of strategic planning is to shape the company's businesses and products so that they yield target profits and growth. Straicgic planning takes place at four levels corporate, division, business unit, and product. 5. The corporate strategy establishes the framework within which the divisions and business units prepare their strategic plans. Setting a corporate strategy entails four activities...