Course Wrapup EWMBA 206 1 Fall 2009 Ganesh

Course Wrap-up EWMBA 206. 1 Fall 2009 Ganesh Iyer 1

Ten Takeaways 1. Marketing Orientation l Successful marketing strategy entails two principles. Designing products, services, and programs that emphasize attributes which: l which customers value and connect to. l Provide a sustainable differential advantage over competitors. l Market leaders with technologically superior capabilities may suffer from “Marketing Myopia” = do not be mesmerized by your product. 2. Competitive Positioning l Integrated answer to: For whom am I? Who am I? Why buy me? and not the competition? l Positioning is not what you do to the product but what you do to the mind of the consumer! Ganesh Iyer 2

Ten Takeaways 3. Perceptual mapping = positioning in the mind of the consumer l Perceptual maps are about “How our product is perceived by consumers relative to competition? ” » Link Segmentation and Positioning. l Two Methods: » Attribute rating and Factor Analysis, » Similarity ratings and Multidimensional scaling. 4. Brand equity and measuring consumer preferences = conjoint analysis l Successful branding creates a “virtuous cycle” » Brands are credibility bonds that companies post. l In technology markets = strategic value for brand equity in changing the power balance in the channel. Ganesh Iyer 3

Ten Takeaways 5. Pricing Strategy is a critical and creative exercise. l Pricing is a revenue generator, other marketing activities are costs. l Pricing’s impact on profitability is often more significant and more immediate than the impact of other elements of the marketing mix. 6. Product Line design integrates pricing, product and segmentation l Identify the attributes/features that are highly valued by some customer segments yet are of little importance to other customer segments. 7. Going to Market: l Channel coordination is important for efficient retailer behavior. l Channel decisions go hand in hand with the other elements of the marketing mix. l Channel decisions have greatest the most long-term impact and are the hardest among all marketing strategy to change. Ganesh Iyer 4

Ten Takeaways 8. Direct Marketing l Direct marketing useful when there are channel inefficiencies and when it is easy to replace retail services. l Key asset is the information about the consumer. l Focus on the lifetime relationship and not the immediate transaction. 9. Advertising and Communication l Positioning Creative Strategy. Target Segment Media planning. l How you say it can be as important as what you say. l Traditional advertising follows the hierarchy: Awareness Interest Desire Action. l Nontraditional advertising “leverages the buzz” 10. Always, Always think “Integrated Marketing Strategy. ” Ganesh Iyer 5

Iyer’s Framework for Marketing Analysis 2. Competitor Analysis Perceptual mapping Company Analysis Marketing Myopia First mover advantages 1. Customer Analysis Positioning Segmentation 3. Marketing Strategy Pricing process (ODI) Pricing and innovation Non Traditional advertising and promotions BMW Z 3 Direct marketing Product Marketing Orientation Branding Price Promotion Place Traditional Advertising Going to market Goodyear Market Ganesh Iyer 6

Reading Suggestions l l l l l Ganesh Iyer Design and Marketing of New Products, Glen Urban and John Hauser. Strategy and Tactics of Pricing, Thomas Nagle and Reed Holden. Advertising Management, R. Batra, J. Myers and D. Aaker. Marketing Channels, A. Coughlan, E Anderson, L. Stern Store Wars, M. Corstjens and J. Corstjens. Positioning, Reis and Trout. The Loyalty Effect, F. Reichheld Thinking Strategically, Avinash Dixit Coopetition, Brandenburger and Nalebuff. 7

Some Marketing Electives l Pricing l Marketing Strategy (Markstrat) l Marketing Research l Advertising Management l High Technology Marketing Management Ganesh Iyer 8

Letter to Yourself l Ganesh Iyer Write down two things that you have learnt in this course that you believe will be relevant in your work and which you think you will be applying in your job over the next two years. 9

That is all folks… Ganesh Iyer 10