Transcript Marketers
(c) 2012 Mary Caravella Marketing for Design Engineers: Key Concepts Mary Caravella, School of Business 1
What is marketing?
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What is marketing?
Creating, communicating and delivering VALUE to customers, and managing relationships with those customers to benefit the organization and its stakeholders
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Customer relationships are built on interactions with mutual value…
Marketers (with skills and resources)
Interactions
Customers (with problems and goals)
Three key types of interactions tracked by marketers:
Transactions (purchases)
Visits ( “ engagement ” ) Votes ( “ social influence ” ) Influence/enable other transactions (c) 2012 Mary Caravella 4
We develop customer value propositions to facilitate transactions Customer Value Proposition: The specific bundles we propose to help customers solve a problem or achieve a goal, including the benefits we claim they will receive and the costs we ask them to pay Brand Associations Customer Value Service Experiences Price Product Attributes Benefit Claims Transaction Costs Cost Claims Search Learning Negotiation Disposal (c) 2012 Mary Caravella 5
Two key questions we will focus on 1.
2.
Will what we design create value for customers?
How will customers find us?
Eric Ries (2011) The Lean Startup, Crown Business (c) 2012 Mary Caravella 6
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“People don’t want ¼” drill bits, they want ¼” holes”
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Two drills on Amazon…
$118.05
$179.99
Black & Decker SSL20SB 20-Volt MAX Smart Select Lithium Ion Drill/Driver with extra battery (c) 2012 Mary Caravella DEWALT DCD760KL 18-Volt 1/2-Inch Cordless Compact Lithium-Ion Drill/Driver Kit (includes second battery) 8
Two drills on Amazon…
$118.05
$179.99
SmartSelect Clutch; Choose your project icon and drill automatically adjusts power and speed for optimal results Gear indicator; 2-speeds indicates high or low setting 20-volt MAX Lithium batteries deliver extended run-time High torque motor delivers 175-Inch-pounds Ergonomic design for improved comfort and control (c) 2012 Mary Caravella Lightweight design (4.0 lbs) minimizes user fatigue Dual speed range 0-500/0-1700 rpm delivers optimal performance LED worklight provides increased visibility in confined spaces Compact track saw batteries (DC9181) are compatible with the existing system of DEWALT 18v power tools produced since 1996 Compact size (8.2-inch) allows users to fit into tight spaces; 9
Two different brands for two different targeted markets with different problems to be solved or goals to be achieved (c) 2012 Mary Caravella 10
Three DIMENSIONS of customer needs Functional Social Psychological (c) 2012 Mary Caravella 11
Why does he choose specific products/services?
• • • Because they help me Do something
(Functional)
Express myself with others
(Social)
Experience something enjoyable
(Psychological)
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Why does he choose specific products/services?
I need… • A drill I can use for everything • Assurance I am buying a reliable product (c) 2012 Mary Caravella 13
Why does he choose specific products/services?
Because they help me • Improve my business
(Functional)
• Market my business
(Social)
• Avoid risks
(Psychological) (and I
’
m a person too!)
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Why does he choose specific products/services?
I need… • Tools I can use all day •
Rugged
•
Compatible power supplies
• Tools that show I’m a professional (and make me feel like one) •
Distinctive styling consistent with me
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(c) 2012 Mary Caravella Your product is a tool to help customers create value for themselves.
The more you understand customers and what they value the more likely you will create value 16
(c) 2012 Mary Caravella Functional value:
helps solve a problem or achieve a goal
Social value:
connects with or distinguishes from others; expresses something about self to others
Psychological value:
interesting, enjoyable, anxiety-reducing, satisfying
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The sensors found in smart phones and Nintendo Wii controllers have migrated into Black & Decker’s cordless 4v MAX Gyro, billed as the world’s first motion activated screwdriver. Tilt it right by a mere quarter of an inch and it screws clockwise to tighten; left, and it turns counterclockwise—all thanks to an internal gyroscope that senses wrist motions, which are measured by a small microprocessor that turns those movements into changes in the drill’s speed and direction (c) 2012 Mary Caravella 18
(c) 2012 Mary Caravella Now that we better understand WHY people choose what they do, we turn to HOW they do it 19
HOW does he choose?
LIFE SEARCH SOLVE
DMP
(decision making process)
How a customers moves through a decision (c) 2012 Mary Caravella 20
1.Creating Customer Value
Life gives rise to problems and goals
LIFE SEARCH SOLVE
• • What ’ s going on in my life?
What triggers this need?
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We search for and evaluate solutions
LIFE
• • What ’ s going on in my life?
What triggers this need?
SEARCH
• • • • What do I already know about how to address this need?
Who should I ask?
Where else should I look?
What is important to consider?
SOLVE
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We choose, and evaluate our choice
LIFE
• • What ’ s going on in my life?
What triggers this need?
SEARCH
• • • • What do I already know about how to address this need?
Who should I ask?
Where else should I look?
What is important to consider?
SOLVE
• • • How satisfied am I with the product/service?
How satisfied was I with the purchase process?
Do I get the support I need?
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1: Target Segment Description Implications
Need characteristics affect the DMP…
LIFE SEARCH SOLVE
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Need Importance
Drives effort to get started AND increases effort spent searching
Need Frequency
Decreases effort spent searching 24
So they affect your marketing challenge HI LO LO FREQUENCY Getting him started
(“I know why… how?”)
HI Switching to you
(“Why are you better than your competition?”)
Getting him started
(“Why bother?”)
Switching to you
(“Why should I change my routine?”)
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We’re opening a deli, we’d like Sam to find us “ I need lunch ” (c) 2012 Mary Caravella 26
What is Sam’s “decision journey” (DMP)?
Sam likes to get outside of work during his 30 minute lunch break. He usually walks with a few of his coworkers to one of the nearby fast food places, but lately has been packing lunches– he ’ d like to eat healthier, but doesn’t want to make his friends change their lunch routine.
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Identify key decision criteria When Sam chooses a place to eat for lunch… What is non-negotiable? ( “
must haves
”
)
Can get in and out in 30 minutes What other things does he consider? (potential “
differentiators
” ) Healthy food Friends can get food they like too (c) 2012 Mary Caravella 28
Develop competitive decision matrix
Criteria McDonalds Subway Our Healthy Deli Differentiators
Tasty, familiar food my friends like Healthy food Fries Subs Small selection 2/3 selection Wraps Full selection None Less than 10 min away
Must haves
Within 30 minutes Pricing < $8.00
/meal Yes No Yes Limited selection* Yes 8 minutes away $5.00/meal 15 minutes away $5.00 core menu 8 minutes away $6.00 core menu 0 minutes away $4.00/meal + pre time Very useful for determining and communicating competitive situation and product development priorities (c) 2012 Mary Caravella 29
Decision criteria affect your POSITIONING How you distinguish yourself from competitors in your customer ’ s mind Positioning Statement For (our target segment), our ( product/brand ) is (ONE important and most differentiating decision criterion) among all (competing ways of solving targeted problem) because ( single most important “ supporting evidence ” ) (c) 2012 Mary Caravella 30
1.
2.
Some direction..
Will what we design create value for customers?
Work to understand all the dimensions of customer value: functional, social and psychological, that customers evaluate against costs Understand which product attributes are must haves and which are differentiators Use brands to signal (and deliver) intangible benefits How will customers find us?
Work to understand the customer decision journey (DMP) Understand what is most likely to trigger a search, where they are most likely to search and what causes them to stop searching Use brands to create mental shortcuts related to your positioning (c) 2012 Mary Caravella 31
Reach out if I can help [email protected]
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