Customer-Driven Marketing Strategy Creating Value for Target Customers 6 Customer-Driven Marketing Strategy Creating Value for Target Customers

Do Now Do Now – Starbucks vs. Dunkin What do Starbucks and Dunkin Donuts call their coffee cup sizes?

Consumer Driven Marketing Strategy How do you create a marketing strategy? How does a marketing strategy impact your company?

“STP” Segment Target Position

Customer-Driven Marketing Strategy Notes to Accompany Slide: Each of the terms on this figure will be explained on the next few slides.

Dunkin vs. Starbucks Objective: understand marketing strategy of each firm and how it affects everything in their offering. You and your desk partner will work together to research both companies. Use Exercise – Starbucks vs. Dunkin fact finder. Web based information. Personal visit to Dunkin and Starbucks (homework) Summarize in 3-4 page power point. Fact based. Not unsupported opinion.

Break - Commercials Starbucks Blonde Roast Commerical Blonde Roast Infomercial Dunkin' Donuts Pumpkin Commercial - Bing Videos America Runs on Dunkin

Open – Do Now – Coffee Shop Seating Do Now – P1 Open – Do Now – Coffee Shop Seating

Do Now Open Unit 2: Do Now McDonald’s Changes Read article and answer questions.

Today’s Objectives Understand how marketing strategy impacts advertising, product offering and delivery. Incorporate your site visit information in the fact finder. Finish Starbucks and Dunkin comparison. Prepare a report to Tim Horton’s management.

Site Visit Comparisons Share your findings with another team. Add one good finding to your fact finder.

Next Step Incorporate your Dunkin and Starbucks site visit information into your fact finder.

Presentations Present comparisons Take notes in Reflection – Starbucks vs. Dunkin

Reflection Time Open – Reflection – Starbucks vs. Dunkin How is the marketing strategy of each company reflected in their advertising, product offering and delivery (place)?

Summary Marketing strategy impacts every aspect of a company: Advertising Product offering Distribution Getting strategy right is the reason behind the marketing success of a Starbucks or Dunkin.

Today’s Objectives How does marketing strategy impact a company’s advertising, product and distribution (delivery, place)? Turn in site visit notes. Finish fact finder and comparison slides. Comparison: list is not enough. Explain why they are doing what they do. Tie back to their marketing strategy.

Marketing Strategy Marketing Strategy = Target Market + Value Prop

Tim Horton’s Report Tim Horton’s chief marketing officer has hired you to provide a comparison of Dunkin vs. Starbucks’ marketing strategies. Report (in power point) should contain: Comparison of marketing strategies and how it impacts: advertising, product offering and distribution (stores). Support with facts. Which company is more successful? Support with market / financial data.

Dunkin vs. Starbucks: Final Thoughts Young, affluent professionals / students Coffee connoisseurs Middle class workers Premium coffee experience Keep them running. Variety, taste Caffeine and sugar Sophisticated, personalized drinks at a high price. Coffee + donuts quickly and cheaply Relaxing, low lights + comfort Fast service – drive thru, layout, chairs Mellow ads. Emphasis on sophistication. Store is the ad. High energy ads. Emphasis on “doing”

Summary Marketing strategy impacts every aspect of a company: Advertising Product offering Delivery Getting strategy right is the reason behind the marketing success of a Starbucks or Dunkin.

Do Now - Hit Them Where They Ain’t Open Unit 2: Do Now - Hit Them Where They Ain’t Read article and think about where Dunkin and Starbucks Ain’t

Do Now Open Exercise – Marketing Strategy

Today’s Objectives Find a marketing strategy for Tim Horton’s. Include in your presentation. Share presentations. And select a final strategy.

Get Ready to Take Notes Create: Notes – Marketing Strategy – [your name]

Marketing Strategy Target market + value prop = strategy

Tim Horton’s Strategy Add to PowerPoint What marketing strategy could Tim Horton’s use to expand into the U.S. market? Who would be the biggest competitor? How would your strategy beat the competition? No need to stick with Tim Horton’s today.

Marketing Strategy Development Market segment with an unmet need. Weak value prop among competitors. Be different.

Do Now - Hit Them Where They Ain’t Open Unit 2: Do Now - Hit Them Where They Ain’t Read article and think about where Dunkin and Starbucks Ain’t

Do Now Outbox – Unit 2 Do Now – Positioning Maps

Do Now – P1 & P6 Open Class Notes – Target Marketing and Differentiation. In Do Now section: explain where you hit the ball in baseball.

Today’s Objectives Answer: “What makes a strong marketing strategy?” Present possible Tim Horton’s strategies. Write an evaluation of the strategy most likely to succeed.

Review Strategy = target market + value prop Target market = “for whom” Value prop = “ we provide” “by offering”

Review Strategy vs. tactics Strategy is where we want to go. Tactics is how we do it (4 Ps).

Review – Strong Strategy Hit them where they ain’t. Different target market. Different value prop. Hard to copy. Turn a strength into a weakness. Avoid “me too” strategies.

3 Presentations Pick the strongest to pitch the class. Strategy Competition 3 Presentations Pick the strongest to pitch the class.

Assignment Edomodo Pick the Strategy “most likely to succeed”. Describe the strategy (target market and value prop). Explain why you think it will succeed vs. competition from Starbucks and Dunkin. Minimum three short paragraphs.

Summary Marketing strategy Be different Different target market Different value prop Difficult to copy Getting strategy right is the reason behind the marketing success of a Starbucks or Dunkin.