Enterprise Marketing

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Enterprise Marketing
2
Question

• Which is better?
• Sell 10 items and make 10 profit on each one.
• Sell 1 item and make 100 profit.
• Answer
• Sell 1 item and make 100 profit

3
Competitive Strategies

• Cost leadership strategy
• Price your products lower than the competition of
  similar value. Better value
• Differentiation strategy
• Make your product unique or special in some way.
  Better perceived value

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Which strategy is better?

• Answer Differentiation strategy
• Whats wrong with a cost leadership strategy?
• Lower margins
• Higher manufacturing, inventory, customer support
  and transactions costs
• No brand loyalty. If a competitor responds with a
  lower price then you are uncompetitive

5
How do you differentiate your product?

• Answer Add value.
• Customer value Customer benefit Cost
• Customer benefit can be tangible or intangible.
• Intangible benefits can be emotional, social or
  peace of mind.

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Intangible Value

• How do you increase intangible value for the
  customer?
• Answer Branding
• Branding creates perceived value because the
  customer has a name that they trust.
• Branding increases social status and image
  associated with the product.
• Branding builds customer loyalty.

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Branding

• Definition Brand
• An identifying name, term, design or symbol
• Definition Brand Name
• Part of the Brand that can be spoken
• Definition Brand Mark
• The part of the Brand not made of words
• Definition Trademark
• A legal designation of exclusive use of a Brand

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Branding continued

• Definition Brand Loyalty
• A customers favourable attitude toward a
  specific Brand
• Definition Brand Recognition
• A customers knowledge of a particular Brand
• Definition Brand Equity
• The marketing and financial value associated with
  a Brand

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Brand Equity
Brand Loyalty
Brand Recognition
Brand Image
Brand Equity
Perceived Brand Value
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Companies with the greatest Brand Equity
Rank Brand Country Value in Billions US
1 Coco-Cola USA 72.5
2 Microsoft USA 70.2
3 IBM USA 53.2
4 Intel USA 39.0
5 Nokia Finland 38.5
6 General Electric USA 38.1
7 Ford Motor Company USA 36.4
8 Disney USA 33.6
9 McDonalds USA 27.9
10 ATT USA 25.5
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Branding case study Guinness

• Founded 1759, Dublin, Ireland
• Guinness is the most recognized brand of beer in
  the world.
• It is not the largest selling beer. It has a
  small but very loyal customer base.
• Guinness is very selective about the bars and
  restaurants that sell its product.
• The draught equipment is specialized, the
  presentation and customer experience are unique.

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Case Study Intel Inside

• Intel is the worlds largest supplier of
  microprocessors
• Intel is the computer industry standard.
• Intel had a brand recognition problem. Most
  computer buyers did not know them or did not
  care.
• Intels product names were numbers such as 386
  and 486. Numbers cannot be trademarked.

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Case study Intel continued

• Intel had a problem with cheaper copycat
  competitors that didnt have the R D costs of
  Intel
• Solution Intel invested heavily in developing
  an ingredient brand, an industry first
• Intel trademarked the brand, Pentium which
  means, number 5

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Case study Intel continued

• Intel created the Intel Inside co-op marketing
  program.
• Intel created an extensive marketing campaign,
  educating consumers to look for the Intel Inside
  sticker on the computer.
• Intels name became associated with a high
  quality, high performance product.
• Customers perceived that if the computer maker
  used a non-Intel CPU that it was an inferior
  computer.

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Case Study Harley Davidson

• Harley Davidson is the leader in manufacturing
  large, highway cruising motorcycles.
• Harley Davidson was facing near bankruptcy due to
  superior, lower cost competitors from Japan
• Harley Davidson had an image problem with their
  name being associated with undesirables.

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Harley Davidson continued

• Harley Davidson correctly identified what their
  value was.
• The marketing team was able to turn their
  negative image into a positive image.
• Harley Davidson was able to take an inferior
  product and use it as a differentiation.

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Harley Davidson continued

• Today Harley Davidson has a fiercely loyal
  customer base.
• Their image is the envy of the industry
• The superior competitors must copy Harley
  Davidsons inferior products in order to
  compete.
• Harley Davidsons brand merchandise accounts for
  5 of total revenue.

18
The marketing project

• Scenario You are a marketing manager for a
  Chinese manufacturing company. The company
  wishes to begin exporting into the Canadian
  market. You are asked by the V.P. to produce a
  marketing plan.
• Work in your groups of 5 students. Imagine a
  product that you think will sell in Canada. You
  are marketing to other enterprises. This will
  not be a consumer item.
• Create a marketing plan using the format and the
  analysis tools discussed in class. Due date is
  Wednesday, December 9th.