HS285: Marketing Management Class Six June 13, 2013

HS285: Marketing ManagementClass Six

June 13, 2013

Beth Goldstein

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• Start-Stop-Continue• Chapters 17 – 18 • Healthcare for Homeless • Creating a Brand• Guest Jennifer Powell

Today’s Class

Click to edit Master title styleStart-Stop-Continue

Start doing XYZ. This is something I haven’t done at all or enough ofStop doing XYZ – This is something that isn’t helping youContinue doing XYZ – This is something that is very helpful in terms of your business success

Click to edit Master title styleUpdates

• Social Media Critiques: June 20• How’s this going?

• Marketing Director Interviews: June 27• Does everybody have a partner?• Marketing Director?

Click to edit Master title styleHealthcare for the Homeless Case

How is branding different for non-profits?Same??

Do non-profits see branding as something only for profit companies strive for?

Click to edit Master title styleHCCH

Do they need a new brand image?

What else needs to change at HCCH?

Click to edit Master title styleHCCH Stakeholders

What matters to each stakeholder?PatientsDonorsVolunteersStaff & Board of Directors

Click to edit Master title styleConsultants’ Recommendations

What do you think of the recommendations?

YOU BE THE CONSULTANT

Click to edit Master title styleGroup Assignment

Present a marketing recommendation:ONE SMART Goal to achieve in the next year that supports sustainable growth and aligns with stakeholder valuesCreate an Elevator Pitch (30 second)Name, tagline & logo recommendation Explain how they should execute your recommended strategy

Click to edit Master title styleWhat happened…

Now recognized by Fed’l gov. as a provider of healthcare services for the homeless and the ‘housed but uninsured’More supportive internally of marketing & branding effortsNew website, social media and email marketing to improve communicationLet’s Check It Out and See…

Click to edit Master title styleWhy Do People Buy YOUR

Click to edit Master title styleConsider these brands…

Click to edit Master title styleTendency to move to sameness

Audi matches Volvo in safety ratings…

… and Volvo turns naughty?

Click to edit Master title styleBlurring distinctions…

Click to edit Master title styleInnovators celebrate their strengths

… while being up front about what is missing

Click to edit Master title styleConsider… Starbucks

Specialty coffeesComfortMeals

Click to edit Master title styleConsider… Starbucks vs. McDonalds…

Specialty coffeesComfortMeals Specialty

coffeesComfortMeals

Click to edit Master title styleMcDonald’s / Starbucks

McDonalds adds premium coffees…

Click to edit Master title styleMcDonalds / Starbucks

… And Starbucksaddsfood items

Click to edit Master title styleCompetition

Understanding your competitorsis critical…

Image: plus.maths.org

Click to edit Master title styleCompetitor Analysis

It’s also critical to evaluate who or what they might become…

… What they will do to react to you?

Click to edit Master title styleAnticipating Competitive Actions

Competitive intelligence – difficult to do… but critical

Always involves using imperfect information

1st – know what you need to know

What to consider

Motivation

Future GoalsWhat do they say – on their web site… at conferences?

AssumptionsHeld about itself and the industry

Actions

Current StrategyHow are they competing now? Price, service?

Apparent CapabilitiesStrengths and weaknesses

Click to edit Master title styleWhere do you find competitive information?

Staff knowledgeCompany materials

Annual reports, websites, marketing materials, speeches at conferences, press releases and announcements, government filings

Industry materialsAnalysts reports, newspapers, trade journals, conferences

Shared connectionsShared industry resources, distributors, customersYour sales force

Click to edit Master title styleHow will competitors react to you?

Consider Behavioral factors – remain objectiveDon’t assume they are not smartDon’t assume a few facts represents a studyConsider potential for non-rational actions

Click to edit Master title styleBiases that can cause trouble…

OverconfidenceOverestimate own capabilities and underestimate those of others – “… We’re Second to None…”

Confirmation bias Embrace data that confirms your thinkingDismissing data that refutes it…

Click to edit Master title stylePrice Conveys a Brand Message

What’s Your Price Say About You?

Click to edit Master title styleThoughts on pricing

Tends to be the one least managed of the 4 P’s of marketing… though its impact can be most significant

A 1% increase in price (assuming no impact on demand) would increase net income of:

6.4% for Coca Cola16.7% for Fuji Film17.5% for Nestle26.0% for Ford Motor Company

Source: Principles of Pricing,Dolan, Robert J. and Gourville, John T. 2006

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Hypothetical coffee maker choice

At the store..

$39 $59 $89 $109 $129

Click to edit Master title stylePricing

Pricing decisions are criticalNot just cost-plus – think VALUEStructure of pricing – or options – can have significant impactOn revenuesOn profitability

Pricing also sends a message about your positioning and your brand

Click to edit Master title styleDistribution

What role does this play in your companies?What’s it tell your customers?

Click to edit Master title styleTwo Different Brand Experiences

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Click to edit Master title styleEffective Branding Touches All Points

User Interface

Click to edit Master title styleThe Purchase Experience

Click to edit Master title stylePackaging

Click to edit Master title styleA Different Experience… From the Start

You Had Me at Hello?X

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Microsoft:The new Apple – Wannabe????

They Say Imitation is the Most Sincere Form of Flattery….BUT REALLY!

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Click to edit Master title styleA Strong Brand is a Powerful Asset

Enduring Brand Power comes from a consistent value proposition

…delivered at every customer touch point!!!

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5 Tips To Reinforce Your Brand

Click to edit Master title style1. Determine Your Value Proposition

• What’s our current position in the market?• What’s our ultimate direction?• What makes us unique?• What needs do we fulfill?

Click to edit Master title style2. Align Customer Needs with Value

• What is the true value we offer?• Do we SOLVE problems or CREATE

opportunities?• Do we align our brand with the

right customers and fire the rest?

Click to edit Master title style3. Focus on Your Competitive Advantage

What sets us apart from the competition?Are we just-as-good or better than the competition?Are we unique enough to command a premium?

Click to edit Master title style4. Align Distribution & Price

What sources do customers use to make purchasing decisions?Does our price reinforce our value or clash with it?Do our distribution channels match customer needs?

Click to edit Master title style5. Communicate at Every Touchpoint

How do we communicate our brand value to others?Does everybody support THE message?Does our message reach all of our customers and prospects?

Click to edit Master title styleYOUR Sticky Brand

Three-word sentence that describes your business/organization’s brand value – do thisindividually

Examples:Accelerate client growthIncrease client productivityImprove customer loyalty

Click to edit Master title styleNow in Teams: Elevator Pitch

Your name and companyA brief but compelling statement about

your product’s or service’s value or benefit as it relates to this person

A concise description of your productA statement that reinforces your

credibility – offers proof of your unique expertise OR

A statement about what makes your product or service unique

Your personal energy and passion

Click to edit Master title styleWelcome Jennifer Powell

The Excellent Writers Group Formerly with the Boston Heraldwww.excellentwriters.com

Click to edit Master title styleNext Class Assignment: June 18

Book: Lucky By Design: Chapters 19 – 21 Case: United Breaks GuitarsArticle:

Selling to Millennials with online reviews Adding Social Media to the Marketing Mix

Worksheets Due: Worksheet 20.1: Choose Your Tools