What is it?
- The communication link between the marketplace and the organization
What is its purpose?
- Designs, develops and communicates values
TWO FUNDAMENTAL PRINCIPLES
1. Customers buy solutions to problems and needs not just products
2. Why pay more when you can get it for less? - Customers will not pay more if there is
something similar for less
VALUE PROPOSITION (customer experience)
= Service Benefits + Product Benefits + Brand Benefits + Cost Benefits + Emotional Benefits
CORE CHALLENGES OF MARKETING
Need Identification – Where do opportunities exist?
Ansoff Matrix (product opportunity matrix) and McDonald’s
Current Product New Product
- Monopoly, - going into
New Market Current Market
Developing a unique, credible, sustainable and valued place in the mind of the consumer
o primary (personally developed)
o secondary (already existing)
2. Define target market
o the level of need
o who is willing to pay PRODUCT
PRICE MIX PROMO
WARRANTY • toll free number of toothpaste
SERVICE • "care about your experience"
BLENDING • trust in brand
• WHY DO PEOPLE BUY IT?
CORE • hygiene
• teeth whitening TARGET PRICE PRODUCT PLACE PROMOTION
MIO Teens (15-25) - -energy -sampling