DO NOW DROP BOX – Unit 2 Drag n Drop Market Segmentation

Unit 1 Review Marketing Strategy Understand the market needs, wants & buying power. Segment the Market Select a Target Market DEVELOP A VALUE PROPOSITION

Marketing Strategy

Marketing Concept Customer Lifetime Value Customer Relationships CRM

Marketing Timeline (History) Product Orientation Sales Orientation Customer Orientation Relationship Orientation

Marketing Functions

The goal is have the biggest piece of the _____________________ Hint: Highest sales volume in the same industry.

Value Proposition

Examples of Value Props Facebook YouTube BMW New Balance’s Minimus

Formatting a Value Prop Format: For [target market] that is looking for [needs, wants, problems], our product provides [value, solution]. By offering: [list benefits that support the value].

Formatting a Value Prop For teenagers that want to be stylish and cool without spending a lot of money ……… Converse provides a fun, casual shoe that will make you part of the cool crowd. It offers:  A variety of colors to express your sense of style.  And at only $29.99 a pair, you can afford to have a different shoe for every day!

What is your VALUE PROP? Imagine you are in a college interview. The interviewer asks: “Why should we offer you a place at Ivy League University?” How would you answer the question in three sentences?

FIVE WINNING VALUE PROPS #1 MORE FOR MORE Upscale = High Cost Signifies high quality and gives prestige to the buyer Ex. Mercedes, Rolex, Four Seasons

FIVE WINNING VALUE PROPS #2 MORE FOR THE SAME Attacks competitors in the more for more sector A brand with comparable quality for a lower price Ex. Lexus did a promotion with side by side comparison with Mercedes

FIVE WINNING VALUE PROPS #3 THE SAME FOR LESS Everyone likes a good deal Stores such as Walmart, Best Buy, Petsmart, David’s Bridal & DSW use this positioning They offer same brands as dept. stores at discounts based on superior buying power and lower cost operations

FIVE WINNING VALUE PROPS #4 LESS FOR MUCH LESS Products that offer less and therefore cost less Consumers will gladly give up “bells and whistles” for a lower price Ex. Hotels with no pools, dollar store

FIVE WINNING VALUE PROPS #5 MORE FOR LESS “The winning prop” When Home Depot first opened they had the best product selections at the best prices compared to hardware stores Very difficult position to sustain ( cannot have the best of both worlds” What happen to Home Depot when Loews opened?

Every company must design their value proposition based on their target market.

Let’s take a look at the product you will be creating a marketing strategy for! WHAT IS A MAN BAG?!