Transcript Course Wrap-up

Course Wrap-up
XMBA 206.1
Summer 2008
Ganesh Iyer
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Ten Takeaways
1. Marketing Orientation
 Successful marketing strategy entails two principles. Designing
products, services, and programs that emphasize attributes which:
 which customers value and connect to.
 Provide a sustainable differential advantage over competitors.
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Market leaders with technologically superior capabilities may suffer
from “Marketing Myopia” = do not be mesmerized by your product.
2. Competitive Positioning
 Integrated answer to 4 questions: For whom am I? Who am I? Why
buy me? and not the competition?
 Positioning is not what you do to the product but what you do to the
mind of the consumer!
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Ten Takeaways
3. Perceptual mapping = positioning in the mind of the consumer
 Perceptual maps are about “How our product is perceived by
consumers relative to competition?”
» Link Segmentation and Positioning.
 Two Methods:
» Attribute rating and Factor Analysis,
» Similarity ratings and Multidimensional scaling.
4. Brand equity and measuring consumer preferences = conjoint
analysis
 Successful branding creates a “virtuous cycle”
» Brands are credibility bonds that companies post.
 In technology markets = strategic value for brand equity in
changing the power balance in the channel.
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Ten Takeaways
5. Pricing Strategy is a critical and creative exercise.
 Pricing is a revenue generator, other marketing activities are costs.
 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
 Identify the attributes/features that are highly valued by some customer
segments yet are of little importance to other customer segments.
 Find the best way to reduce cannibalization.
7. Going to Market:
 Channel coordination is important for efficient retailer behavior.
 Channel decisions go hand in hand with the other elements of the
marketing mix.
 Channel decisions have greatest the most long-term impact and are the
hardest among all marketing strategy to change.
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Ten Takeaways
8. Direct Marketing
 Direct marketing useful when there are channel inefficiencies and when
it is easy to replace retail services.
 Key asset is the information about the consumer.
 Focus on the lifetime relationship and not the immediate transaction.
9. Advertising and Communication
 Positioning  Creative Strategy. Target Segment  Media planning.
 How you say it can be as important as what you say.
 Traditional advertising follows the hierarchy: Awareness  Interest 
Desire  Action.
 Nontraditional advertising “leverages the buzz”
10. Always, Always, Always think “Integrated Marketing Strategy.”
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Iyer’s Framework for Marketing Analysis
Perceptual mapping
Company Analysis
Marketing Myopia
First mover advantages
1. Customer Analysis
2. Competitor
Analysis
Positioning
Segmentation
3.Marketing Strategy
Pricing process (ODI)
Pricing and innovation
Non Traditional advertising and promotions
BMW Z3
Direct marketing
Product
Marketing Orientation
Branding
Price
Promotion
Place
Traditional Advertising
Going to market
Goodyear
Market
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Reading Suggestions
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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.
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Some Marketing Electives
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Marketing Strategy (Markstrat)
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Pricing
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Marketing Research
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Advertising Management
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High Technology Marketing Management
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