Course Wrap-up

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Course Wrap-up

• XMBA 206.1
• Summer 2008

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Ten Takeaways

• 1. Marketing Orientation
• Successful marketing strategy entails two
  principles. Designing products, services, and
  programs that emphasize attributes which
• which customers value and connect to.
• Provide a sustainable differential advantage over
  competitors.
• Market leaders with technologically superior
  capabilities may suffer from Marketing Myopia
  do not be mesmerized by your product.
• 2. Competitive Positioning
• Integrated answer to 4 questions For whom am I?
  Who am I? Why buy me? and not the competition?
• Positioning is not what you do to the product but
  what you do to the mind of the consumer!

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Ten Takeaways

• 3. Perceptual mapping positioning in the mind
  of the consumer
• Perceptual maps are about How our product is
  perceived by consumers relative to competition?
• Link Segmentation and Positioning.
• Two Methods
• Attribute rating and Factor Analysis,
• Similarity ratings and Multidimensional scaling.
• 4. Brand equity and measuring consumer
  preferences conjoint analysis
• Successful branding creates a virtuous cycle
• Brands are credibility bonds that companies post.
• In technology markets strategic value for brand
  equity in changing the power balance in the
  channel.

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Ten Takeaways

• 5. Pricing Strategy is a critical and creative
  exercise.
• Pricing is a revenue generator, other marketing
  activities are costs.
• Pricings impact on profitability is often more
  significant and more immediate than the impact of
  other elements of the marketing mix.
• 6. Product Line design integrates pricing,
  product and segmentation
• Identify the attributes/features that are highly
  valued by some customer segments yet are of
  little importance to other customer segments.
• Find the best way to reduce cannibalization.
• 7. Going to Market
• Channel coordination is important for efficient
  retailer behavior.
• Channel decisions go hand in hand with the other
  elements of the marketing mix.
• Channel decisions have greatest the most
  long-term impact and are the hardest among all
  marketing strategy to change.

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Ten Takeaways

• 8. Direct Marketing
• Direct marketing useful when there are channel
  inefficiencies and when it is easy to replace
  retail services.
• Key asset is the information about the consumer.
  
• Focus on the lifetime relationship and not the
  immediate transaction.
• 9. Advertising and Communication
• Positioning ? Creative Strategy. Target Segment
  ? Media planning.
• How you say it can be as important as what you
  say.
• Traditional advertising follows the hierarchy
  Awareness ? Interest ? Desire ? Action.
• Nontraditional advertising leverages the buzz
• 10. Always, Always, Always think Integrated
  Marketing Strategy.

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Iyers Framework for Marketing Analysis
Perceptual mapping
Company Analysis Marketing Myopia
First mover advantages
1. Customer Analysis
2. Competitor
Analysis
Segmentation
Positioning
Marketing Orientation
3.Marketing Strategy
Branding
Product
Pricing process (ODI) Pricing and innovation
Price
Traditional Advertising
Promotion
Non Traditional advertising and promotions BMW Z3
Place
Going to market Goodyear
Direct marketing
Market
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Reading Suggestions

• Design and Marketing of New Products, Glen Urban
  and John Hauser.
• Strategy and Tactics of Pricing, Thomas Nagle and
  Reed Holden.
• Advertising Management, R. Batra, J. Myers and D.
  Aaker.
• Marketing Channels, A. Coughlan, E Anderson, L.
  Stern
• Store Wars, M. Corstjens and J. Corstjens.
• Positioning, Reis and Trout.
• The Loyalty Effect, F. Reichheld
• Thinking Strategically, Avinash Dixit
• Coopetition, Brandenburger and Nalebuff.

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Some Marketing Electives

• Marketing Strategy (Markstrat)
• Pricing
• Marketing Research
• Advertising Management
• High Technology Marketing Management