Post on 08-Aug-2015
MARKETINGMAL PRACTICE
The cause and
the cure
Groupmembers
oKomal SohailoAsma ShahidoNazia AzamoAmina Zulfiqar
INTRODUCTION
INTRODUCTIONEver-narrower demographic segments
Ever-more-trivial product extensions
What jobs consumers need to get done
Purposeful products -- and genuine innovation.
INTRODUCTION30,000 new consumer products are launched each year
90% of them fail despite massive amounts of money spent trying to understand what customers want
INTRODUCTIONTo build brands that mean something to customers, you need to segment markets in ways that reflect how customers actually live their lives
AIMA way to re-configure the principles of market segmentation
Describe how to create products that costumer will consistently value &
Describe how new valuable brands can be built to truly deliver sustained profitable growth
BROKEN PARADIGMS OF MARKET SEGMENTATION
Quarter-inch drill, they want a quarter-inch hole
Marketers still benchmark the features and functions of their drill against those of rivals
Create more features and functions for their drill
They lose sight of the hole, and often solve the wrong problem
BROKEN PARADIGMS OF MARKET SEGMENTATION
Segmenting markets by type of customer is no better.
Small, medium, and large enterprises Age , gender , or lifestyle bracketsNeeds of representative customers Create products that address those
needsThe problem is that customers don't
conform their desires to match those of the average consumer in their demographic segment
BROKEN PARADIGMS OF MARKET SEGMENTATION
Address the needs of a typical customer, they cannot know whether any specific individual will buy the product
There is a better way to think about market segmentation and new product innovation
Adopt the customer's point of view
BROKEN PARADIGMS OF MARKET SEGMENTATION
When people find themselves needing a job done they essentially “hire” products
Marketer's task is to understand what jobs periodically arise in customer’s lives
Creating products that make it easier and cheaper for customers to do something only matters if the customers want to do that something
DESIGNING PRODUCTS THAT DO THE JOB
Every job people need or want to do has a social, functional and emotional dimension.
40% of all milkshakes were purchased in the early morning
Long, boring commute and needed something to make the drive more interesting. While they weren't hungry, they knew that they would be by midmorning
DESIGNING PRODUCTS THAT DO THE JOB
They were usually in a hurry, and had at most one free hand to use. The milkshakes were competing against other drinks and breakfast foods like bagels, and were helping customers overcome boredom in their ride to work
The secret to selling more milkshakes wasn't to make them thicker or were more healthy, it was to have them pre-prepared for the early morning rush-hour
DESIGNING PRODUCTS THAT DO THE JOB
Knowing how to improve the product did not come from understanding the typical customer
It came from understanding the job done by specific customers
DESIGNING PRODUCTS THAT DO THE JOB
Job-defined markets are generally much larger than product category-defined markets
For example, P&G's stunningly successful Swifter was targeted at the job of cleaning floors, not at a demographic group of people who happen to mop
Asma Bibi
Komal Sohail
How a Job Focus Can Grow Product Categories
Cont’d
New growth markets are created when innovating companies design a product and position its brand on a job for which no optimal product yet exists.
1. Purpose Brands and Disruptive Innovations
Disruptive innovations are products or services whose performance is not as good as mainstream products, executives of leading companies often hesitate to introduce them for fear of destroying the value of their brands.
Cont’dPurpose branding has been the key, for example, to Kodak’s success with two disruptions.
The first was its single-use camera, a classic disruptive technology. Because of its inexpensive plastic lenses, the new camera couldn’t take the quality of photographs that a good 35-millimeter camera could produce on Kodak film.
The proposition to launch a single-use camera encountered vigorous opposition within Kodak’s film division. The corporation finally gave responsibility for the opportunity to a completely different organizational unit, which launched single-use cameras with a purpose brand—the Kodak FunSaver.
Cont’d(Sadly, a few years ago, Kodak pushed aside the FunSaver purpose brand in favor of the word “Max,” which now appears on its single-use cameras, perhaps to focus on selling film rather than the job the film is for. )
Kodak scored another purpose-branding victory with its disruptive EasyShare digital camera. The company initially had struggled for differentiation and market share in the head-on megapixel and megazoom race against Japanese digital camera makers (all of whom aggressively advertised their corporate brands but had no purpose brands).
Cont’d
Sharing fun, not preserving the highest resolution images for posterity, is the job—and Kodak’s EasyShare purpose brand guides customers to a product tailored to do that job. Kodak is now the market share leader in digital cameras in the United States.
Building Brands That Customers Will Hire
Cont’d
The brand of a product that is tightly associated with the job for which it is meant to be hired a purpose brand.
FedEx became a purpose brand—in fact, it became a verb in the international language of business that is inextricably linked with that specific job. It is a very valuable brand as a result.
Cont’dMost of today’s great brands—Crest, Starbucks, Kleenex, eBay, and Kodak, to name a few—started out as just this kind of purpose brand. The product did the job, and customers talked about it. This is how brand equity is built.
Brand equity can be destroyed when marketers don’t tie the brand to a purpose.
Cont’dWhen they seek to build a general brand that does not signal to customers when they should and should not buy the product, marketers run the risk that people might hire their product to do a job it was not designed to do.
clear purpose brand is like a two-sided compass.
1. One side guides customers to the right products.
2. The other side guides the company’s product designers, marketers, and advertisers as they develop and market improved and new versions of their products.
Cont’d
A good purpose brand clarifies which features and functions are relevant to the job and which potential improvements will prove irrelevant.
The price premium that the brand commands is the wage that customers are willing to pay the brand for providing this guidance on both sides of the compass.
Cont’d
The need to feel a certain way—to feel macho, sassy, pampered, or prestigious—is a job that arises in many of our lives on occasion.
When we find ourselves needing to do one of these jobs, we can hire a branded product whose purpose is to provide such feelings.
Cont’d
Gucci, Absolut, Montblanc, and Virgin, for example, are purpose brands.
They link customers who have one of these jobs to do with experiences in purchase and use that do those jobs well.
These might be called aspirational jobs.
In some aspirational situations, it is the brand itself, more than the functional dimensions of the product, that gets the job done.
Nazia Azam
Asma Bibi
Amina Zulfiqar
Nazia Azam
Journey of Successful Brands
Successful brands - one product and one job.
How Long Successful Brands Can Survive ?
Brands if not extended can become extinct or easily imitated by competitors.
Example: Crest lost its distinctiveness
Extending Brands
Stage 2:
Stage 1: Brand
Purpose Brand
Endorser Brand
Figure 1: Brand Extending Hierarchy
Purpose Brands
Brands can be extended into products hired for same jobs – “Purpose brands”.
Example: Sony’s Walkman product line
Endorser Brands
Brands can be extended into products hired for different target markets - “Endorser Brands”.
Endorser Vs Purpose Brands
Figure 2: Endorser Vs Purpose Brands
Issue with Endorser Brand!
Step: 1Successful Brand (One product one
job)
Step 2:Endorser
Brand (One brand many
jobs)
Step 3:Has a General
Sense of Quality
Step 4:Lacks
Customer Guidance
Step 5:Causes
Customer Dissatisfaction
Step 6:Leads to Brand
Distrust and Failure
Figure 3: The Endorser Brand Trap
The Question is.…
How to escape the endorser brand trap?
Avoiding Endorser Brand Trap
• Having a purpose brand along the side of an endorser brand range.Example Milwaukee
• Division of endorser brand into purpose brands for each job. Example Marriott
Extending Brands without Destroying Them
Figure 4: Extending Brands Without Destroying
Stage 3:
Stage 2:
Stage 1: Brand
Purpose Brand
Endorser Brand
Purpose alongside of Endorser Brand
Endorser divided into Purpose Brands
Why purpose brands so rare?
• Focusing too much on “job”, highlights the jobs for which the product cannot be hired for.
• Scared of focus, Marketer’s create subtle differentiations that do not help customers at all.
• Let’s see it through this example
For the first Time
Presents…
Idea: Amina
Director and Script: Asma
Cast
Qaiser
Amina
Komal
Bilal
Mrs. Dee
Dee DeeDexter
Mr. Dee
The Need…
Your dad and I have finally decided to buy you a car… If you’ll graduate this
year
Seriously Mom!!!!
She and graduate… Impossible
I’m not
You jealous hunh!
Best of luck Dee
Dee
Graduation Day…
Now my car
please!
Information Collection…
Safe with a must hands-
free telephone
GM’s OnStar service that called police
and home
Automatic car service reminder
system
Service could be delivered as a prepaid
gift
The car should be
stylish, sweet and fun to
drive
The Alternatives…
SenatorNeon
Accord
Sonata
Cavalier
Escape
Taurus
Camry
Avalon
Corolla
Prizm
Sentra
Civic
Wow!
Dexter !!!!! Stay out of
it
Or may be something like this……..
The Evaluation Process…
I want !
But that should be
stylish, safe
It can be Senator,Camry orCavalier
No! No! It should be Taurus or
PrizmMy own
Car!
Neon
Escape
Corolla
Accord
Camry
Taurus
PrizmCivic
The Final Choice…
Dad!!!!
We have decided that you should
continue riding you scooty
Ahm… Dee Dee! After
considering various options
Poor victim of marketer’s Laboratory!Hahaha
The End