MKTG 2030 Study Guide - Midterm Guide: Open Innovation, Voice Of The Customer, Pricing Strategies
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What do winning Organizations Do well?
They devise and maintain a clear marketing strategy.
A strategy is what adds superior value to customers and gives competitive edge over rivals.
They execute strategy flawlessly.
What is marketing?
Marketing is a disciplined process used by businesses to accomplish business challenges.
Example: Snap-on Tools
The Marketing Process:
o Target customer or customers. Make sure you have resources to create a marketing plan for
each customer group.
Create Value: satisfy the customer using the marketing mix tools:
Snap-on's strategy of making high quality tools creates a Value Chain. They identify
that the real customer is the mechanics customer; the car owner. By providing high
quality/ never-breaking tools, mechanics can keep their business flowing with fewer
Premium Pricing strategy,
o Marketing Communication
o Sales execution
o Cross-functional Alignment: align the marketing plan with the functional groups of the firm to
focus on the customer : customer focus
Manage value: "recalibration phase"
o Satisfaction measurement
o Segment review
o Customer review
o Product mix review
o Environmental scanning
Understanding Customer Needs
Smart Companies create customer needs.
Giving shape to a need the customer has a hard time articulating.
Understanding customer needs:
Need this to create value
Problem: customers may not know their needs. Or they provide their needs in Basic care variables
Need to learn difference between confirmation research and discovery research.
o Surveys and questionnaires are confirmation research: Not for innovating. Does not reveal
new needs / pain points.
o Need to use discovery research on their customers: This is qualitative research.
Could use primary or secondary research
Focus groups: they are like conversations; but it is guided; between a
professional (moderator) and consumers.
Start with screening questions to find good participants
Group dynamics vs group think
New questions could crop up
Dealing with the small sample size: we're not trying to extrapolate the data
onto a larger population; we are trying to discover new ideas.
Once we have a new idea / topic discovered, we can then do a much larger
confirmation survey on a big population.
Depth interview: engage 1 respondent for 60 minutes. Good for learning how
customers make decisions between competing alternatives, and what influences
Ethnography: watching the customers through participant observation
Secondary research: already available data. Good if it has the answer you want.
Faster, tells where people have already looked.
Example: Tesco -grocery store found customer needs for baby products so launched 'baby&toddler club"
Secretes of Smart Companies that succeed by not doing any formal marketing research
Ready fire aim
Co-create value with customer - "open innovation" - get customer to do research for them
o Example: Build - a - Bear
Treat the whole world as your research firm
o Look at global events/situation to gather ideas
Create new market space
o Innovate into new opportunities by looking:
Across substitute products
At different customer roles: influencers, purchasers, decision makers
Across complimentary goals.
Customer needs that competitors have not met yet
Developing a Marketing Plan
Business face several challenges
Commoditized goods / services
Hard to sustain competitive differentiation
Customers are more price sensitive
Customer loyalty is eroding
Increasing media channels
Consequence of not making marketing plan:
Businesses will tend to drift from one opportunity to another without any clear direction.
A good marketing plan answers 3 questions:
Who’s your customer
What am I offering my customer
Why am I different from my competitors