Bus M300 1nd Edition Lecture 13 Outline of Current LectureI. CannibalizationII. 4 Strategies for Reaching Market SegmentsIII. Undifferentiated/Mass MarketingIV. Differentiated MarketingV. Concentrated/Niche MarketingVI. Customized MarketingVII. Brand Portfolio StrategiesVIII. POP vs. PODIX. Brand Adoption ProcessX. Branch ArchitectureCurrent Lecture I. Cannibalizationa. Definition: the theft of sales from existing products by the new PLE. b. Examples: Olay Soap comes out with Olay Regenerist. Will lose sales of Olay soap. c. Starbucks store launches grocery store products. II. 4 Strategies for Reaching Market Segmentsa. 1. Undifferentiated/Mass Marketingb. 2. Differentiated Marketingc. 3. Concentrated/Niche MarketingThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.d. 4. Customized MarketingIII. Undifferentiated/Mass Marketinga. Firms produce 1 product for the whole market.b. Example: movies, iPad, booksc. Benefits: cheap, easier.d. Shortcomings: all things to all people (doesn’t recognize people are different)IV. Differentiated Marketinga. A strategy where numerous products are offered to different segments through differential use of the 4P’s. i. This approach is the “opposite” of the undifferentiated strategy.b. Examples: Olay for different skin types, Coke (different flavor in different countries.)V. Concentrated/Niche Marketinga. A strategy often used by small firms, directing efforts toward serving a small segmenti. Only trying to appeal to small part of market. b. A risky strategy to employ, though it may be the only possible one for them. c. Why risky?d. Small group size, think pharmaceuticals. e. Example: organic laundry detergent. VI. Customized Marketinga. Extreme version of differentiated marketing, customizing their product offering to fit customers’ needs. b. Also called “one to one marketing” c. A result of more data on consumers. d. Employed by large firms.e. Example: reflect.com, shoe systems, teeth whitening.f. Extremely expensive. VII. Brand Portfolio Strategiesa. 3 kindsi. 1. House of Brands1. No corporate name2. Several brands in same category3. Example: P&G, Yum Brands (own KFC, TacoBell)ii. 2. Branded House (Umbrella Branding)1. Corporate name is dominant in promoting firm brands2. Example: Kashi, Simple Truthiii. 3. Mixed Brands1. A set of family brands in addition to corporate name 2. Example: Coke, Coke Zero, Diet CokeVIII. POP vs. PODa. POP: (Point of Parity) things that make you alikei. Ex. Cleanliness in storeb. POD: (Point of Differentiation) things that make you differenti. Ex. Laundry detergent scentIX. Brand Adoption Process – 5 Stepsa. 1. Presencei. Do I know about it?b. 2. Relevancei. Is it valuable to me?c. 3. Performancei. Can you deliver?d. 4. Advantagei. Do you offer and deliver something better than others?e. 5. Bondingi. What about you and me?ii. Example: Coke, Starbucks have loyalty. X. Branch Architecture – 4 Step pyramida. 1. (Bottom of pyramid) Basic needsi. Ex. Location, priceb. 2. Reason to believei. Proofc. 3. Rational benefiti. Head connection + problem solverd. 4. (Top of pyramid) Emotional Benefiti.