Marketing as a Business Discipline

Marketing as a Business Discipline
Chapter 1 Marketing as a Business Discipline

Figure 1. Making Decisions Using a Framework
Typical problem Specific solution Typical solution Specific problem Framework Abstraction Application Trial and error The key reason for problems – non-systematic approach to solving problems Framework = generalized way of thinking © 2018 Alexander Chernev

Marketing Strategy and Tactics
Chapter 2 Marketing Strategy and Tactics

Figure 1. Identifying the Target Market: The 5-C Framework
Company Competitors Collaborators Customers Context © 2018 Alexander Chernev

Figure 2. Defining the Value Exchange
Context Collaborators Customers Company Competitors Value © 2018 Alexander Chernev

Figure 3. The 3-V Market Value Principle
Customer value Collaborator value Company value OVP The Optimal Value Proposition © 2018 Alexander Chernev

Figure 4. Marketing Tactics: The Seven Attributes Defining the Market Offering
Customer value Collaborator value Company value OVP Strategy Tactics Product Service Brand Communication Distribution Price Incentives Market Offering © 2018 Alexander Chernev

Figure 5. Tactics as a Process of Designing, Communicating and Delivering Value
Communicating value Designing value Product Service Brand Communication Distribution Incentives Price Value © 2018 Alexander Chernev

Figure 6. Marketing Tactics: Company Actions and Customer Impact
Communicating the offering Delivering Designing Awareness of the offering Availability of the offering Attractiveness of the offering Company actions Customer impact © 2018 Alexander Chernev

Figure 7. The Market Value Map
Target Market Market Offering Customers Product What customer need does the company aim to fulfill? Who are the customers with this need? What are the key features of the company’s product? Collaborators What other entities will work with the company to fulfill the identified customer need? Service What are the key features of the company’s service? Company What are the company’s resources that will enable it to fulfill the identified customer need? Brand What are the key features of the offering’s brand? Competition What other offerings aim to fulfill the same need of the same target customers? Price Context What is the offering’s price? What are the sociocultural, technological, regulatory, economic, and physical aspects of the environment? Incentives Value Proposition What incentives does the offering provide? Customer Value What value does the offering create for target customers? Communication How will target customers and collaborators become aware of the company’s offering? Collaborator Value What value does the offering create for the company’s collaborators? Distribution Company Value How will the offering be delivered to target customers and collaborators? What value does the offering create for the company? Strategy Tactics © 2018 Alexander Chernev

Figure 8. The 4-P Framework
Product Value Product Service Brand Communication Distribution Price Incentives Price Promotion Place © 2018 Alexander Chernev

Figure 9. The Five Forces of Competition
New entrants Competitors Suppliers Buyers Substitutes © 2018 Alexander Chernev

Chapter 3 The Marketing Plan

Figure 1. The G-STIC Framework for Marketing Management
Goal Strategy Business model Tactics Implementation Control © 2018 Alexander Chernev

Figure 2. The G-STIC Action-Planning Flowchart
Target market Value proposition Strategy Tactics Goal Focus Benchmarks Implementation Performance Environment Control Communication Distribution Product Service Brand Price Incentives The ultimate criterion for success The value created in the target market The specifics of the market offering The logistics of creating the offering Monitoring goal progress Development Deployment © 2018 Alexander Chernev

Executive Summary Situation Overview Company Market Goal Focus
What are the key aspects of the company’s marketing plan? Situation Overview Company Market What are the company’s history, culture, resources, offerings, and ongoing activities? What are the key aspects of the markets in which the company competes? Goal Focus Benchmarks What is the key performance metric the company aims to achieve with the offering? What are the criteria (temporal and quantitative) for reaching the goal? Strategy Who are the target customers, competitors, and collaborators? What are the company’s resources and context? Target market Value proposition What is the company’s value proposition for target customers, collaborators, and the company? Tactics Market offering What are the product, service, brand, price, incentives, communication, and distribution aspects of the offering? Implementation Development Deployment How is the company offering being developed? What processes will be used to bring the offering to market? Control Performance Environment How will the company evaluate the progress toward its goal? How will the company monitor the environment to identify new opportunities and threats? Exhibits What are the details/evidence supporting the company’s action plan? © 2018 Alexander Chernev

Identifying Target Customers: Segmentation and Targeting Analysis
Chapter 4 Identifying Target Customers: Segmentation and Targeting Analysis

Figure 1. Segment-Based Targeting
Customers whose needs the company aims to fulfill (target market) Targeting All potential customers (entire market) © 2018 Alexander Chernev

Figure 2. Strategic Targeting: Key Principles
Target Compatibility Target Attractiveness Company resources Customer needs Customer resources Company goals Customer value Company value © 2018 Alexander Chernev

Figure 3. The Resource Advantage Principle
Unutilized company resources Company resources The company’s ideal customers Competitive wasteland Unmet customer needs Unutilized competitor resources Customer needs Competitor resources Intense competition Competitors’ ideal customers © 2018 Alexander Chernev

Figure 4. The Customer Identification Problem
Customer need Unobservable customer needs Observable customer characteristics © 2018 Alexander Chernev

Figure 5. Linking Customer Value and Profile
Company value Strategic targeting Target customers Customer identification Customer demographics Profile Customer behavior Tactical targeting © 2018 Alexander Chernev

Figure 6. Tactical Targeting: Effectiveness
“Sniper” targeting (optimal) “Slice-of-the-pie” targeting (too narrow) “Shot-in-the-dark” targeting (off base) Value-based segment (unobservable) Profile-based segment (observable) © 2018 Alexander Chernev

Figure 7. Tactical Targeting: Cost-Efficiency
“Sniper” targeting (optimal) “Shotgun” targeting (too broad) Value-based segment (unobservable) Profile-based segment (observable) © 2018 Alexander Chernev

Figure 8. Targeting Multiple Segments
Offering B Offering A © 2018 Alexander Chernev

Figure 10. Market Segmentation and Targeting
Customers with similar needs (segmented market) All potential customers (entire market) Customers whose needs the company aims to fulfill (target market) Defining market segments Identifying target customers © 2018 Alexander Chernev

Figure 11. Segmentation, Mass Marketing, & One-to-One Marketing
Offering Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 Offering A Offering B Offering C Offering D Offering E Offering F Customer 1 Offering A Customer 2 Customer 3 Customer 4 Offering B Customer 5 Customer 6 Mass marketing Segment-based marketing One-to-one marketing © 2018 Alexander Chernev

Strategic segmentation Tactical segmentation
Figure 12. Strategic (Value-Based) and Tactical (Profile-Based) Segmentation Strategic segmentation (value-based) Tactical segmentation (profile-based) Group customers into segments based on their needs and resources Identify the behavioral, demographic, and psychographic profile of strategically viable customers Channel A All potential customers (entire market) Channel C Strategic targeting (value-based) Channel B Tactical targeting (profile-based) Identify a customer need that the company can meet better than the competition in a way that creates value for the company and its collaborators Identify effective and cost-efficient channels to reach strategically viable customers © 2018 Alexander Chernev

Figure 13. Common Segmentation Errors
A. Irrelevant B. Heterogeneous C. Not exclusive D. Not exhaustive © 2018 Alexander Chernev

Creating Customer Value:
Chapter 5 Creating Customer Value: Developing a Value Proposition and Positioning

Figure 1. Identifying Target Customers, Developing a Value Proposition, and Positioning
Benefits & costs Reason to choose © 2018 Alexander Chernev

Figure 2. The Customer Value Proposition
Company offering Alternative options Reason to choose Customer needs Value © 2018 Alexander Chernev

Figure 3. Dimensions of Customer Value
Functional value Customer value Psychological value Monetary value © 2018 Alexander Chernev

Figure 4. Reference-Point Dependence
Value Gains Performance Losses Reference point © 2018 Alexander Chernev

Figure 5. Loss Aversion Value Value of a gain Performance of a loss
© 2018 Alexander Chernev

Figure 6. Diminishing Marginal Value
Customer value Offering performance © 2018 Alexander Chernev

Figure 7. Competitive Value Map
Competitive advantage (PoD) Attribute 1 Competitive parity (PoP) Attribute 2 Competitive disadvantage (PoC) Attribute 3 Attribute 4 Company offering Competitive offering Attribute 5 © 2018 Alexander Chernev

Figure 7. Competitive Value Map
Competitive disadvantage Competitive advantage Attribute 1 Customer value Attribute 2 Attribute 3 Attribute 4 Attribute 5 Attribute importance Competitive parity Competitive offering Company offering © 2018 Alexander Chernev

Figure 8. Customer Value Proposition and Positioning
Primary benefit(s) Secondary benefit(s) Costs Trivial benefits Positioning Value proposition © 2018 Alexander Chernev

Figure 9. Single-Benefit Positioning
Key reason for choice Primary benefit Benefit 1 Benefit 2 Benefit 3 Benefit 4 Benefit 5 Secondary benefits © 2018 Alexander Chernev

Figure 10. Multi-Benefit Positioning
Key reason for choice Primary benefits Benefit 1 Benefit 2 Benefit 3 Secondary benefits Benefit 4 Benefit 5 © 2018 Alexander Chernev

Figure 11. Holistic Positioning
Benefit 1 Benefit 2 Key reason for choice Overall benefit Benefit 3 Benefit 4 Benefit 5 © 2018 Alexander Chernev

Psychological benefits
Figure 12. Positioning Strategies Based on their Ability to Create a Sustainable Competitive Advantage Sustainable competitive advantage Psychological benefits Functional benefits Monetary benefits Positioning © 2018 Alexander Chernev

Figure 13. Positioning Map
Attribute 1 Offering A Offering B Offering C Attribute 2 Offering E Offering D © 2018 Alexander Chernev

Creating Company Value: Managing Revenues, Costs, and Profits
Chapter 6 Creating Company Value: Managing Revenues, Costs, and Profits

Figure 1. The Company Value Proposition
Company offering Alternative options Reason to choose Value Company © 2018 Alexander Chernev

Figure 2. The Key Profit Drivers
Sales volume Unit price Revenues Net income Variable costs Fixed costs Costs © 2018 Alexander Chernev

Figure 3. Strategies for Growing Sales Volume
New to the category Market-growth strategy New customers Competitors’ customers Steal-share strategy Sales volume Current customers Market-penetration strategy © 2018 Alexander Chernev

Figure 4. Managing Profits by Lowering Costs
COGS R&D costs Marketing costs Other costs Costs © 2018 Alexander Chernev

Figure 5. The Profit Impact of Strategic Offerings
Company value Profit Profit Offering A Offering B Offering C Strategic value Strategic value © 2018 Alexander Chernev

Figure 6. Economic Value Analysis
Monetary value Company value Monetizing strategic value Strategic value © 2018 Alexander Chernev

Figure 8. Calculating Distribution Channel Margins
Manufacturer cost: $3 Selling price to the wholesaler: $10 Margin: $7 Margin (% of selling price): $7/$10 = 70% Manufacturer Purchase price from the manufacturer: $10 Selling price to the retailer: $15 Margin: $5 Margin (% of selling price): $5/$15 = 33% Wholesaler Purchase price from the wholesaler: $15 Selling price to the customer: $20 Margin: $5 Margin (% of selling price): $5/$20 = 25% Retailer Customer Purchase price: $20 © 2018 Alexander Chernev

Creating Collaborator Value: Managing Business Markets
Chapter 7 Creating Collaborator Value: Managing Business Markets

Figure 1. The Collaborator Value Proposition
Company offering Competitor offering Reason to choose Value Company collaborators © 2018 Alexander Chernev

Part III Marketing Tactics

Figure 1. Marketing Tactics as a Process of Designing, Communicating, and Delivering Value
Value-creation process: Company actions Designing the offering Communicating the offering Delivering the offering Value drivers Product Service Customer value Brand Price Incentives Offering attractiveness Offering awareness Offering availability Value-creation process: Customer impact © 2018 Alexander Chernev

Managing Products and Services
Chapter 8 Managing Products and Services

Figure 1. Product and Service Management as a Value-Creation Process
Customer value Collaborator value Company value OVP Product Service Brand Communication Distribution Price Incentives Market Offering © 2018 Alexander Chernev

Chapter 9 Managing Brands

Figure 1. Branding as a Value-Creation Process

Single-brand strategy
Figure 3. Single Brand, Cobranding, and Multi-Brand Portfolio Strategies Multi-brand strategy New sub-brand Endorsed new brand Independent new brand Single parent brand Cobranding Single-brand strategy © 2018 Alexander Chernev

Figure 4. Vertical Brand Extensions
Price Benefits Core offering Price tier B Upscale extension Price tier A Downscale Price tier C © 2018 Alexander Chernev

Figure 5. Horizontal Brand Extensions
Price Benefits Core offering Category B Extension A Category A Extension B Category C © 2018 Alexander Chernev

Figure 6. Brand Image, Brand Power, and Brand Equity
Company activities Brand power Brand image © 2018 Alexander Chernev

Chapter 10 Managing Price

Figure 1. Pricing as a Value-Creation Process

Figure 2. Price-Benefit Map
Value-equivalence line Offering A Offering B Offering D Offering E Offering C Benefits © 2018 Alexander Chernev

Chapter 11 Managing Incentives

Figure 1. Managing Incentives as a Value-Creation Process

Figure 3. Push and Pull Promotions
Manufacturer Manufacturer Communication Incentives Communication Incentives Demand Demand Retailer Retailer Communication Incentives Demand Demand Customers Customers Push promotions Pull promotions © 2018 Alexander Chernev

Figure 1. Communication as a Value-Creation Process

Figure 2. Developing the Communication Message

Executive Summary Situation Overview Company Market Goal Focus
What are the key aspects of the company’s communication campaign? Situation Overview Company Market What are the company history, culture, resources, offerings, and ongoing activities? What are the key aspects of the market in which the company competes? Goal Focus Benchmarks What are the temporal and quantitative benchmarks for reaching the goal? What is the focus of the company’s communication? Strategy Audience Message What is the message the company aims to communicate? Who is the company’s target audience? Tactics Media Creative How will the company’s message be expressed? Where will the audience encounter the company’s communication? Implementation Development Deployment What resources need to be developed/acquired to communicate the company’s message? What is the process of bringing the company’s message to the target audience? Control Performance Environment How will the company evaluate the effectiveness of the communication campaign? How will the company monitor the environment to identify emerging opportunities and threats? Exhibits What are the details/evidence supporting the company’s communication plan? © 2018 Alexander Chernev

Managing Distribution
Chapter 13 Managing Distribution

Figure 1. Distribution as a Value-Creation Process
Customer value Collaborator value Company value OVP Market Offering Product Service Brand Price Incentives Communication Distribution © 2018 Alexander Chernev

Figure 2. Distribution Channel Functions

Figure 3. Distribution Channel Structure
Wholesaler Retailer Customers Company Direct channel Indirect channels Hybrid channel © 2018 Alexander Chernev

Gaining and Defending market Position
Chapter 14 Gaining and Defending market Position

Figure 1. Steal-Share Strategy
Current users New users © 2018 Alexander Chernev

Figure 2. Market-Growth Strategy

Figure 3. Market-Growth Strategy for an Offering with a Superior Value Proposition

Figure 4. Market-Creation Strategy
Current users New users Current market New market © 2018 Alexander Chernev

Figure 5. Defensive Marketing Strategies
Price Benefits Stay the course Move upscale Increase benefits Reduce price Move downscale Launch value offering Launch premium offering Source: Hoch, Stephen J. (1996), “How Should National Brands Think about Private Labels?” Sloan Management Review, 37 (2), 89–102 © 2018 Alexander Chernev

Figure 6. The Product-Market Growth Framework
Current customers New customers Current products Market penetration Market development New products Product development Diversification © 2018 Alexander Chernev

Figure 7. The SWOT Framework
Favorable factors Unfavorable factors Internal factors Strengths Weaknesses Company analysis External factors Opportunities Threats Market analysis © 2018 Alexander Chernev

Chapter 15 Managing Sales Growth

Figure 2. Identifying Adoption Gaps
Manage sales growth by identifying and closing performance gaps Awareness gap Attractiveness gap Affordability gap Availability gap Purchase gap All target customers Aware of the offering’s existence Perceive the offering to be attractive Perceive the offering to be affordable Have access to the offering Purchase the offering © 2018 Alexander Chernev

Figure 6. The Customer Journey Map
Company activities Build and enhance preferences Increase availability and nudge Choose Managing adoption Create awareness Consider Purchase Customer journey Managing usage New customers Use Remind and encourage repurchase Foster usage Promote sharing Share © 2018 Alexander Chernev

Chapter 16 Managing New Products

Figure 1. The Stage-Gate Framework for Developing New Offerings
Idea discovery Concept development Business model design Offering development Commercial deployment Gate 1 Idea validation Gate 2 Concept validation Gate 3 Business model validation Gate 4 Offering validation © 2018 Alexander Chernev

Figure 2. Problem-Solving and Experience-Enhancing Offerings
Customer need state Customer value Delight (fully met need) Experience- enhancing (nice-to-have) offerings Indifference (largely met need) Slower adoption Problem-solving (must-have) offerings Problem (unmet need) Faster adoption © 2018 Alexander Chernev

Figure 3. The Validated-Learning Approach
Observe the market Formulate ideas Build a prototype Test the prototype Build the offering Learn from the outcome © 2018 Alexander Chernev

Figure 4. The Path of Least Resistance
Customers with an unmet need (all target customers) Customers who recognize the unmet need as a problem that needs solving Customers who actively seek a solution to the problem © 2018 Alexander Chernev

Figure 5. The Path of Least Resources
Customers with an unmet need (all target customers) Customers who can be informed about the offering in a cost-efficient manner Customers to whom the offering can be delivered in a cost-efficient manner Path of least resources © 2018 Alexander Chernev

Figure 6. The S-Curve of New Product Adoption: Total Adoptions
Time Total adoptions Inflection point Market potential Speed of diffusion © 2018 Alexander Chernev

Figure 7. Bell-Shaped Pattern of New-Product Adoption: New Adoptions
Individual adoptions Time Peak of adoptions © 2018 Alexander Chernev

Figure 8. Alternative New Product Adoption Patterns
Individual adoptions Individual adoptions Time Time © 2018 Alexander Chernev

Figure 9. Managing the Product Life Cycle
Sales Time Introduction Growth Maturity Decline Market size Small Moderate Large Moderate/Small Market growth Low High Low Negative Competition Low Moderate High Moderate/Low © 2018 Alexander Chernev

Figure 10. Extending Product Lifestyle through Innovation
Sales Third generation Second generation First generation Time © 2018 Alexander Chernev

Figure 11. Rogers’ Categorization of Customer Based on the Time of Adoption of Innovation
Innovators Early adopters Early majority Laggards Number of adoptions Time Late majority © 2018 Alexander Chernev

Figure 12. Moore’s Application of the Rogers Model to Technology Markets
Number of adoptions The chasm Early market Mainstream market Enthusiasts Visionaries Pragmatists Conservatives Skeptics Time © 2018 Alexander Chernev

Figure 13. Concept Storyboard
2 3 4 Customer Problem Alternative Options Company Offering Customer Value How does the offering solve customers’ problem better than the alternative options? What customer problem does the company aim to solve? What are the alternative means to solve this problem? What are the key aspects of the company’s offering? © 2018 Alexander Chernev

Figure 14. A/B Testing (Experimentation) as a Tool for Gathering Market Insight
Company Actions Customer Response Product Service Brand Price Incentives Communication Distribution Awareness Beliefs Preference Purchase intent Intent to promote Purchase Usage Advocacy Customer mindset Offering attributes Customer behavior Factors tested Factors measured © 2018 Alexander Chernev

Managing Product Lines
Chapter 17 Managing Product Lines

Figure 2. Horizontal Product-Line Extensions
Price Benefits Core offering Offering A Offering B © 2018 Alexander Chernev

Figure 3. Product-Line Cannibalization
Competitive offerings Current offering Competitive offerings Current offering New offering Competitive offerings New offering Current offering Cannibalized sales A. Single offering B. Two offerings without cannibalization C. Two offerings with cannibalization © 2018 Alexander Chernev

Figure 4. The Fighting-Brand Strategy
Price Quality Incumbent brand Low-price competitors Fighting brand Time © 2018 Alexander Chernev

Figure 5. The Sandwich Strategy
Price Quality Premium brand Incumbent brand Low-price competitors Fighting brand Time © 2018 Alexander Chernev

Figure 6. The Good-Better-Best Strategy
Price Quality Incumbent brand Good Low-price competitors Best Better Time © 2018 Alexander Chernev

Segmentation and Targeting Workbook
Chapter 18 Segmentation and Targeting Workbook

Figure 1. Identifying Target Customers
Define the key value drivers Segment the market Strategic targeting Assess segment attractiveness Assess segment compatibility Select strategically viable segment(s) Define the segment profile Tactical targeting Assess tactical viability of segment(s) Select target segment(s) © 2018 Alexander Chernev

The Business Model Workbook
Chapter 19 The Business Model Workbook

Figure 1. The Market Value Map
What are the key features of the company’s product? What are the key features of the company’s service? What are the key features of the offering’s brand? What is the offering’s price? What incentives does the offering provide? How will target customers and collaborators become aware of the company’s offering? How will the offering be delivered to target customers and collaborators? Market Offering Product Service Brand Price Incentives Communication Distribution What customer need does the company aim to fulfill? Who are the customers with this need? What other entities will work with the company to fulfill the identified customer need? What are the company’s resources that will enable it to fulfill the identified customer need? What other offerings aim to fulfill the same need of the same target customers? What are the sociocultural, technological, regulatory, economic, and physical aspects of the environment? Target Market Collaborators Customers Company Competition Context What value does the offering create for target customers? What value does the offering create for the company’s collaborators? What value does the offering create for the company? Value Proposition Collaborator Value Customer Value Company Value © 2018 Alexander Chernev

Figure 3. The Customer Value Map
What are the features of the product that the company offers to target customers? What are the features of the service that the company offers to target customers? What are the features of the offering’s brand? What is the offering’s price for target customers? What incentives does the offering provide to target customers? How will target customers become aware of the company’s offering? How will the offering be delivered to target customers? Customer Offering Product Service Brand Price Incentives Communication Distribution What value does the offering create for target customers? Why would they choose this offering? Customer Value Reason to choose What customer need does the company aim to fulfill? Who are the customers with this need? Target Customers Customer need Customer profile What other offerings aim to fulfill the same customer need? What value do these offerings create for target customers? What are the key aspects of the competitive offerings? Competition Key competitors Value proposition Offering attributes © 2018 Alexander Chernev

Figure 3. The Collaborator Value Map
What are the features of the product that the company offers to collaborators? What are the features of the service that the company offers to collaborators? What are the features of the offering’s brand? What is the offering’s price for collaborators? What incentives does the offering provide to collaborators? How will collaborators become aware of the company’s offering? How will the offering be delivered to collaborators? Collaborator Offering Product Service Brand Price Incentives Communication Distribution What value does the offering create for collaborators? Why would they partner with the company? Collaborator Value Reason to choose Which entities would partner with the company to create value for target customers? What goals do collaborators pursue by partnering with the company? Collaborators Collaborator profile Collaborator goals What other offerings aim to fulfill the same collaborator goals? What value do these offerings create for collaborators? What are the key aspects of the competitive offerings? Competition Key competitors Value proposition Offering attributes © 2018 Alexander Chernev

Figure 4. The Company Value Map
What are the features of the product that the company offers to target customers and collaborators? What are the features of the service that the company offers to target customers and collaborators? What are the features of the offering’s brand? What is the offering’s price for target customers and collaborators ? What incentives does the offering provide to target customers and collaborators? How will target customers and collaborators become aware of the company’s offering? How will the offering be delivered to target customers and collaborators? Company Offering Product Service Brand Price Incentives Communication Distribution What value does the offering create for target customers? Why would customers choose this offering? Company Value Reason to choose What entity is managing the offering? What are its key resources? What goal does the company aim to fulfill with this offering? Company Company profile Company goals What alternative options can fulfill the same company goal? What value do these options create for the company? What are the key aspects of the alternative options? Alternative Options Key alternatives Value proposition Option attributes © 2018 Alexander Chernev

Marketing as a Business Discipline

Similar presentations

Presentation on theme: "Marketing as a Business Discipline"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Marketing as a Business Discipline

Similar presentations

Presentation on theme: "Marketing as a Business Discipline"— Presentation transcript:

Similar presentations

About project

Feedback