Bus M300 1nd Edition Lecture 13 Outline of Current Lecture I Cannibalization II 4 Strategies for Reaching Market Segments III Undifferentiated Mass Marketing IV Differentiated Marketing V Concentrated Niche Marketing VI Customized Marketing VII Brand Portfolio Strategies VIII POP vs POD IX Brand Adoption Process X Branch Architecture Current Lecture I Cannibalization a 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 Segments a 1 Undifferentiated Mass Marketing b 2 Differentiated Marketing c 3 Concentrated Niche Marketing These 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 Marketing III Undifferentiated Mass Marketing a Firms produce 1 product for the whole market b Example movies iPad books c Benefits cheap easier d Shortcomings all things to all people doesn t recognize people are different IV Differentiated Marketing a 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 Marketing a A strategy often used by small firms directing efforts toward serving a small segment i 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 Marketing a 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 Strategies a 3 kinds i 1 House of Brands 1 No corporate name 2 Several brands in same category 3 Example P G Yum Brands own KFC TacoBell ii 2 Branded House Umbrella Branding 1 Corporate name is dominant in promoting firm brands 2 Example Kashi Simple Truth iii 3 Mixed Brands 1 A set of family brands in addition to corporate name 2 Example Coke Coke Zero Diet Coke VIII POP vs POD a POP Point of Parity things that make you alike i Ex Cleanliness in store b POD Point of Differentiation things that make you different i Ex Laundry detergent scent IX Brand Adoption Process 5 Steps a 1 Presence i Do I know about it b 2 Relevance i Is it valuable to me c 3 Performance i Can you deliver d 4 Advantage i Do you offer and deliver something better than others e 5 Bonding i What about you and me ii Example Coke Starbucks have loyalty X Branch Architecture 4 Step pyramid a 1 Bottom of pyramid Basic needs i Ex Location price b 2 Reason to believe i Proof c 3 Rational benefit i Head connection problem solver d 4 Top of pyramid Emotional Benefit i Heart