! Customer driven marketing 151204

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November 2015 Dr. Ute Hillmer A Customer Driven Marketing Strategy: Creating and capturing CUSTOMER VALUE in an Online/Offline World Our age of anxiety is the result of doing todays jobs with yesterdays technology M. McLuhan

Transcript of ! Customer driven marketing 151204

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November 2015 Dr. Ute Hillmer

A Customer Driven Marketing

Strategy: Creating and capturing

CUSTOMER VALUE in an

Online/Offline World

“Ourage ofanxiety is the result of

doing todays jobs with yesterdays

technology“M. McLuhan

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November 2015 Dr. Ute Hillmer

WHO is Dr. Ute

Hillmer? an expert in positioning and promoting technology

products, with a carving for innovative products that

are not self-explaining.

With such products, human behavior is often outside the

boundaries of rationality -despite its economic context.

Buying behavior is here typically a result of social, cognitive

and emotional factors, along with the economic ones.

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What did Ute do?

• 27 years of international marketing (HP, CoCreate, MFG Innovation

Agency State of BW, Better Reality Marketing)

• Dissertation in business administration, behavioral economics in

technology marketing: Technology Acceptance in Mechatronics

• Worldwide company and product communication;

mainly 3 continents (America, Europe, Asia)

• Product-, program-, channel-, partner marketing, marketing

communication, branding, positioning

• Responsible for operative, strategic + corporate marketing, branding,

sales training

• Experienced in large corporations, SMEs and freelance work as well as

political institutions.

• Responsible for the first international website of Hewlett Packard in 1993

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What’s Ute’s

STORY?I am in business to change

the lives of my technology

clients by finding them

hungry customers that get

them into sustainable growth!

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and turn their customers into raving fans!

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To take the most

out of this lecture

… be in

STATE!

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Agenda1. Marketing Today: the new Buying

Decision Process

2. Creating and Capturing Customer

Value

3. Your Ideal Customer

4. Positioning for the Ideal Customer

5. Create your Value Proposition

Creating and capturing CUSTOMER VALUE!

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Marketing + Sales

Today:

a New Buying

Decision Process

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Role-play to discover:“Has Marketing changed?”

“Must Marketing change?”

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Funnel-Metaphor for a Buying Decision

active evaluation

many brands

Grafik close to Edelman 2010

buying decision

Initial

considerationTrigger

lesser and lesser brands

What brand creates

the most value to

me/us right now

and in the future?

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Digitally supported Buying Decision

active

Evaluation

Post-Sales

Experience

Enlarged

Evaluation

Ambassador

Loyalty Loop

Active

Evaluation

Model close to Edelman 2010, p.65

Moment of Purchase

Initial

Consideration

Trigger

What brand creates

the most value to

me/us right now

and in the future?

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Information Sources Today

The 2014 B2B Buyer Behaviour Survey

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2014 B2B Buyer Behavior Survey

• Web search is the top source of information

• B2B buyers strategically browse social media

• The number of sources used to research and

evaluate purchase has increased

• There is an increased awareness of purchase

options

• The evaluation process is longer and more

satisfying

DemandGen Report Survey 2014

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What Role does Social Media Play?

The 2014 B2B Buyer Behaviour Survey

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The Core Consequences

1. Consumers and buyers connect with brands in fundamentally new ways – often beyond manufacturers’ or dealers' control.

2. They evaluate a shifting array of options during the evaluation process and remain engaged with the brand after purchase.

3. Customers can have as much information and knowledge, as vendors do.

Its no longer about “information” it’s about creating and

capturing CUSTOMER VALUE!

You need a customer driven marketing strategy!

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Customer Driven

Marketing –

What does that

mean?

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From Product- Focus to Customer Focus

Product

Price

Place

Promotion

Customer Needs

Customer Cost

Convenience / Access

CommunicationMcCarthy: Basic Marketing: A managerial approach, 1960

Schullz, Stanley I. Tannenbaum, Robert F. Lauterborn, Integrated Marketing Communications, 1993

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From Product- Focus to Customer Focus

• Making a sale

• Abundance of products in

the nearby shopping

centers

• Television, magazine, and

direct-mail ads

• Satisfying customer needs

• Imaginative Web sites and

mobile phone apps, blogs,

online videos, and social

media

• Reach customers directly,

personally, and

interactively

Traditional View Contemporary View

Kotler, Armstrong 2014

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November 2015 Dr. Ute Hillmer Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014

Marketing: Creating Customer Value and Engagement

Amazon.com’s deep-down passion

for creating customer engagement,

value, and relationships has made it

the world’s leading online retailer.

Amazon has become the model for

companies that are obsessively and

successfully focused on delivering

customer value.

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• Objective 1: Understand the fundamental change in marketing

• Objective 2: Identify the key elements of a customer-driven

marketing strategy

• Objective 3: Apply the steps of a customer driven marketing

strategy to your project

Learning Objectives

Marketing: Creating Customer Value and Engagement

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The Aim of Marketing

• Marketing involves creating value for customers and building strong customer relationships in order to capture value from customers in return.

• Goals:

– Attract new customers by promising superior value

– Keep and grow current customers by delivering satisfaction

– influence the buyer and buying center in the place and at the moment when they are most open on their way to brand choice and a buying decision

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014

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The Marketing Process

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014

What is a prerequisite to create Customer Value?

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Customer Needs, Wants and Demands

Understanding the Marketplace and Customer Needs

• States of felt deprivation

• Physical needs - food, clothing, warmth, and safety

• Social needs - belonging and affection

• Individual needs - knowledge and self-expression

Needs

• Form taken by human needs when shaped by culture and individual personality

Wants

• Human wants that are backed by buying power

Demands

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014

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Learning Objective 3

• Identify the key elements of a customer-driven marketing strategy

and discuss the marketing management orientations that guide

marketing strategy.

Designing a Customer Value-Driven Marketing Strategy

Preparing an Integrated Marketing Plan and Program

Learning Objective

Marketing: Creating Customer Value and Engagement

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014

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This is a 2 Day Work Session on

Customer-Driven Marketing Strategy

Day 1: Designing a Customer Value-Driven Marketing Strategy

1. Selecting customers to serve

– Find your Ideal Customer

2. Creating value for these selected customers

– Define the Value Proposition

Day 2: Effectively communicate Customer Value

– Define a (digital) launch plan

Applying the 20/80

rule to this marketing

lecture …

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What does that mean for

you:

Market + sell YOUR

PROJECT in your Internal

and/or External Market

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• What is your business goal for the PSA 3?

• What is your business goal for the Master Thesis?

• What is so important about the goal?

• Why is it important?

• Ultimately, what would having that do for you?

Task:

Your WHY!

Write it down on a sheet of paper for you!

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PSA3: Goal Definition + Communication

Planning

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Creating Value for Customers

• Market Segmentation

• Targeting

• Differentiation

• Positioning

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrongcartoon: fotalia

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Contrasting Selling and Marketing Concepts

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong

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Marketing Management in a Customer Driven Marketing Strategy

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014

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Designing a Customer Value-Driven Marketing Strategy

Marketing Management is the art and science of choosing target

markets and building profitable relationships with them.

– What customers will we serve?

– How can we best serve these customers?

Market Segmentation refers to dividing the markets into segments

of customers.

Target Marketing refers to which segments to go after.

1. Selecting Customers to Serve

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014

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Task: What

do you

„Sell“

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Segmenting a

Market

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What is Market Segmentation?

Market segmentation requires dividing a market into

smaller segments with distinct needs, characteristics,

or behaviors that might require separate marketing

strategies or mixes. Kottler, Armstrong 2014

Segmentation is used to identify and further define

your ideal customer

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• Segmenting consumer markets?

• Segmenting business markets?

• Segmenting international markets?

• Effective segmentation?

Criterias for

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Segmenting Consumer Markets

• The big 4

Geographic segmentation

Demographic segmentation

Psychographic segmentation

Behavioral segmentation

Copyright © 2016 Pearson Education, Inc.

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Geographic Segmentation

Regions following ACNielsen

Geographic

segmentation

divides the market

into different

geographical units

such as nations,

regions, states,

counties, cities, or

even neighborhoods.

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Demographin Segmentation

Sinusmilieu

Demographic

segmentation

divides the market

into segments based

on variables such as

age, life-cycle stage,

gender, income,

occupation,

education, religion,

ethnicity, and

generation.

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Demographin Segmentation

Age, Gender, Income, …

Age and life-cycle stage segmentation divides a market into different age and life-cycle groups.

Gender segmentation divides a market into different segments based on gender.

Income segmentation divides a market into different income segments.

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Psychographic Segmentation

Sinusmilieu

Psychographic

segmentation divides

a market into different

segments based on

social class, lifestyle,

or personality

characteristics.

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Behavioral Segmentation

Behavioral

segmentation

divides a market into

segments based on

consumer knowledge,

attitudes, uses of a

product, or responses

to a product.

• Occasions

• Benefits sought

• User status

• Usage rate

• Loyalty status

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong

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Task:

Consumer Market Segmentation for GoPro

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Discussion on

Segmenting

Consumer vs.

Business Markets

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Segmenting Business Markets

• Consumer and Business have many of the same segmenting

variables. Additional variables include:

Customer Operating

Characteristics

Situational Factors

Purchasing Approaches

Personal Characteristics

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong

Geographic segmentation

Demographic segmentation

Psychographic segmentation

Behavioral segmentation

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Segmenting International Markets

Geographic location

Economic factors

Political and legal factors

Cultural factors

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong

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Intermarket segmentation involves forming

segments of consumers who have similar needs

and buying behaviors even though they are

located in different countries.

7-21

Segmenting International Markets

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong

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Task: Market Segmentation for UPS

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Requirements for Effective Segmentation

Measurable Accessible Substantial

Differentiable Actionable

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong

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When Segmenting Markets, watch out for:Measurability

• “otherwise the scheme will not be operational”

• next to impossible in some markets, hard in most markets => most companies use

qualitative and intuitive methods

Substantiality

• “the variable should be relevant to a substantial group of customers”

• Challenge: find the right size / balance: large group segment: risk of diluting

effectiveness

• Too small: you lose the benefits of economies of scale

• Sometime one large customer

Operational Relevance (Actionable)

• Segmentation should enable to offer the suitable product/service to the chosen

segment, e.g. faster delivery service, special 24-hour technical support, etc.

Source: Webster, 2003

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Market

Targeting

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Selecting Target Market Segments

.

.

.

.

..

.

.

A target market is a set of buyers who share

common needs or characteristics that the

company decides to serve.

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Undifferentiated marketing targets the whole

market with one offer

• Mass marketing

• Focuses on common needs rather than

what’s different

Copyright © 2016 Pearson Education, Inc.

Selecting Target Market Segments

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Differentiated marketing targets several different

market segments and designs separate offers for

each.

• Goal is to achieve higher sales and stronger

position

• More expensive than undifferentiated marketing

Selecting Target Market Segments

Copyright © 2016 Pearson Education, Inc.

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Concentrated marketing

targets a large of a smaller

market

• Limited company

resources

• Knowledge of the

market

• More effective and

efficient

Selecting Target Market Segments

Copyright © 2016 Pearson Education, Inc.

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Micromarketing is the

practice of tailoring products

and marketing programs to

suit the tastes of specific

individuals and locations.

• Local marketing

• Individual marketing

Selecting Target Market Segments

Copyright © 2016 Pearson Education, Inc.

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Local marketing

involves tailoring brands

and promotion to the

needs and wants of local

customer segments.

• Cities

• Neighborhoods

• Stores

Copyright © 2016 Pearson Education, Inc. 7-32

Selecting Target Market Segments

Copyright © 2016 Pearson Education, Inc.

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Individual marketing involves

tailoring products and

marketing programs to the

needs and preferences of

individual customers.

• Also known as:

– One-to-one marketing

– Mass customization

Selecting Target Market Segments

Copyright © 2016 Pearson Education, Inc.

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Choosing a targeting strategy depends on

• Company resources

• Product variability

• Product life-cycle stage

• Market variability

• Competitor’s marketing strategies

Selecting Target Market Segments

Copyright © 2016 Pearson Education, Inc.

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Socially Responsible Target Marketing

• Benefits customers

with specific needs

• Concern for

vulnerable segments

Selecting Target Market Segments

Copyright © 2016 Pearson Education, Inc.

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• What different market segment strategies are of

relevance in your master thesis project?

• What are 3-5 relevant market segments that you

could target in your internal and/or external

communication?

• Prioritize your market segments and make a short

note on your decision criteria.

Task:

Your Market Segmentation

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Segmenting by

Buying (User)

Behavior

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Consumer buyer behavior is the buying

behavior of final consumers—individuals and

households that buy goods and services for

personal consumption.

Consumer markets are made up of all the

individuals and households that buy or acquire

goods and services for personal consumption.

Consumer Markets and Buyer Behavior

Copyright © 2016 Pearson Education, Inc.

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Model of Consumer Behavior

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong

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November 2015 Dr. Ute Hillmer 5-10

Characteristics Affecting Consumer

Behavior

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong

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Business Markets and

Business Buyer Behavior

Business buyer behavior refers to the buying behavior of the

organizations that buy goods and services for use in the

production of other products and services that are sold, rented,

or supplied to others.

The business buying process is the process where business

buyers determine which products and services are needed to

purchase, and then find, evaluate, and choose among

alternative brands.

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong

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Business buyers usually face more complex buying

decisions than do consumer buyers. Compared with

consumer purchases, a business purchase usually

involves:

• More decision participants

• More professional purchasing effort

• More buyer and seller interaction

The Buying Unit

Copyright © 2016 Pearson Education, Inc.. Kotler, ArmstrongCopyright © 2016 Pearson Education, Inc.. Kotler, Armstrong

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Major Types of Buying Situations

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong

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User Typologies

„Personas“

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Archtypes:Roger’s

Innovation Adopter

Categories Foto by: ehoyerEverett Rogers, 1995 “Diffusion of Innovations”

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Time

Mar

ket s

ize

technology life cycle and its buyer

categories

Laggards

16%

Late

Majority

34%

Early

Adopters

13,5%

Early

Majority

34%

Innovators

2,5%

Chart based on Rogers 1995, p. 262 and Moore 1999, p. 12

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Persona: Techy

Time

Mar

ket s

ize

Laggards

16%

Late

Majority

34%

Early

Adopters

13,5%

Early

Majority

34%

Innovators

2,5%

Chart based on Rogers 1995, and Moore 1999

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Time

Mar

ket s

ize

Laggards

16%

Late

Majority

34%

Early

Adopters

13,5%

Early

Majority

34%

Innovators

2,5%

Persona: Visionary

Chart based on Rogers 1995, and Moore 1999

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Time

Mar

ket s

ize

Laggards

16%

Late

Majority

34%

Early

Adopters

13,5%

Early

Majority

34%

Innovators

2,5%

Persona: Pragmatist

Chart based on Rogers 1995, and Moore 1999

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Time

Mar

ket s

ize

Laggards

16%

Late

Majority

34%

Early

Adopters

13,5%

Early

Majority

34%

Innovators

2,5%

Persona: Conservative

Chart based on Rogers 1995, and Moore 1999

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Time

Mar

ket s

ize

Laggards

16%

Late

Majority

34%

Early

Adopters

13,5%

Early

Majority

34%

Innovators

2,5%

Personas: Laggard

Chart based on Rogers 1995, and Moore 1999

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LaggardsLate

Majority

Early

Adopters

Early

Majority

Innovators

Mainstream Behaviour

Increasingly conforming behaviour

Hillmer, Technology Acceptance in Mechatronics, 2009

Zeit

Mar

ktgr

öße

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November 2015 Dr. Ute Hillmer

LaggardsLate

Majority

Early

Adopters

Early

Majority

Innovators

Individualistic Behaviour

Increasingly individualistic

behaviour

Zeit

Mar

ktgr

öße

Hillmer, Technology Acceptance in Mechatronics, 2009

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Archtypes:Schein’s

Career Anchors

Foto by: ehoyer

Edgar H. Schein, 2006 “Career Anchors”

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Technical / Fictional Competence

Foto by merkapt

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General Management Competence

Foto by merkapt

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Autonomist / Independent

Foto by merkapt

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Security and Stability

Foto by merkapt

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Entrepreneurial Creative

Foto by merkapt

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Service and Goodwill

Foto by merkapt

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Challenge and Variety

Foto by merkapt

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Lifestyle

Foto by merkapt

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Schein’s Career Anchors

Adopted for the 21st Century

Chart by SR&A, Stuart Robertson

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What Stereotype is

your „Ideal Customer“?

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Learn about your

Target Market

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Where to get AnswersQuick Content Analysis: The right Product/Problem

description

1. Google Search with your key words from this morning

2. Google Adwords / Keyword Planner

Detailed Content Analysis: What exactly are people

looking for?

1. Amazon Booktitel-Search

2. Amazon 3-Star Search

3. Google Analytics

Interviews: In-Depth Understanding

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Task: Do a Google Search Analysis

Take your product/project description to Google Search

1. What wording does Google-Autofil suggest?

2. What topics, web-pages, blogs, companies come up

what is their wording?

what is their content?

Who is there?

3. Results:

– What are your new 2-4 keywords?

– Who are your 3-5 key competitors?

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Google Advanced Search

Video: https://www.youtube.com/watch?v=yc6ssZnCyuA

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Why Google? The Online Search Ecosystem 2013

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Task: Do a Google AdWords Analysis

Take your product/project description to Google Adwords

1. Open Google Adwords (maybe register), go to → Tools

→ Keyword Planer

2. Enter your keywords and take notes:

Keyword mtl. Search Competition Price (CPC)

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Task: Do the Amazon Booktitle Search

1. Start looking for book titles

2. What seems to be the core concern of people interested in this topic?

3. Modify the answers and the wording in your workbook based on your learnings

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Task: Do the Amazon 3-Star Search

1. Look at the 3-Star Reviews

2. What seems to be the core concern of people interested in this topic? What are they looking for and praise or can’t find?

3. Make a list of the core problems people seem to have

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Now: What

do you

„Sell“

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Your Ideal

Customer

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Your Ideal Customer

This isn’t about your most common customer –

it’s about who you want as your most wanted

customer! The 20% that create 80% of your revenue.

If you have more than one ideal customer, create

multiple copies, but set a limit to 3-5 max.

Your most hungry customer!

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Your Ideal Customer Profile - Outline

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Your Ideal Customer Profile - Motivations

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Your Ideal Customer Profile – Business Goals

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Your Ideal Customer Profile – Narrative + Letter

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Positio-

ningFoto: Pepe Laja

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What is Positioning?

Positioning defines where your product or service stands in relation to others

offering similar products and services in the marketplace as well as the mind of

the consumer.

Positioning always starts with a “product” (merchandise, a service, a company, an

institution, or even a person….)

but positioning is not what you do to that product. Positioning is what you do to

the mind of the prospect or customer.

Positioning is the act of designing the company’s

offering and image to occupy distinctive place in

the mind of the target market.

Kottler Keller

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What is Positioning?

Image by talk2frank from Stock.Xchng

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November 2015 Dr. Ute Hillmer

What is Positioning good for?

Position, differentiate and communicateThink from your customers perspective, before you talk to them

#1 Relevance – avoid price warsIs the promised added value of relevance to your target segment? Does your customer care?

#2 Differentiation – avoiding replicabilityAre you unique? Do you offer something „more“ that what your customers offer?

#3 everybody and everywhere, the message is the sameOne core message from every employee + partner and through every channel

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Value

PropositionFoto: Pepe Laja

Page 110: ! Customer driven marketing 151204

November 2015 Dr. Ute Hillmer

A brand’s value

proposition is the set

of benefits or values it

promises to deliver to

customers to satisfy

their needs.

Choosing a Value Proposition

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014

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November 2015 Dr. Ute Hillmer

Value proposition is the #1 thing that

determines whether people will bother

reading more about your product or hit the

back button. It’s also the main thing you

need to test – if you get it right, it will be a

huge boost.

Why choosing a Value Proposition

A VP explains the bottom line of what

your company doeshttp://conversionxl.com/

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November 2015 Dr. Ute Hillmer

A Value Proposition is

a promise of value to be delivered. It’s the primary reason a prospect should buy from you.

In a nutshell, value proposition is a clear statement that explains how your product

• solves customers’ problems or improves their situation (relevancy),

• delivers specific benefits (quantified value),

• tells the ideal customer why they should buy from you and not from the competition (unique differentiation).

It’s for people to read and understand!http://conversionxl.com/

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November 2015 Dr. Ute Hillmer

What a Value Proposition is not

It’s not a slogan or a catch phrase:

L’Oréal. Because we’re worth it.

Nike: Just do it

It’s not a positioning statement (positioning statement is a subset of a value proposition, but it’s not the same thing):

Germany’s #1 Skin Care. Trusted skincare for life.

And a bad example of a Value Proposition:

“Revenue-focused marketing automation & sales effectiveness solutions unleash collaboration throughout the revenue cycle”

http://conversionxl.com/

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November 2015 Dr. Ute Hillmer

A Value Proposition Consists of

• a block of text (a headline, sub-headline and one paragraph of text) with a visual (photo, hero shot, graphics).

There is no one right way to go about it, but I suggest you start with the following formula:

• Headline. What is the end-benefit you’re offering, in 1 short sentence. Can mention the product and/or the customer. Attention grabber.

• Sub-headline or a 2-3 sentence paragraph. A specific explanation of what you do/offer, for whom and why is it useful.

• 3 bullet points. List the key benefits or features.

• Visual. Images communicate much faster than words. Show the product, the hero shot or an image reinforcing your main message.

http://conversionxl.com/

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November 2015 Dr. Ute Hillmer

Create a Good Value Proposition

• A key role for the value proposition is to set you apart from the competition. Most people check out 4-5 different options / service providers before they decide. You want your offering to stand out in this important research phase.

• How do you make your offer unique? Often it’s hard to spot anything unique about your offering. It requires deep self-reflection and discussion.

• If you can’t find anything, you better create something. Of course the unique part needs to be something customers actually care about. No point being unique for the sake of being unique (“the ball bearings inside our bicycles are blue”).

http://conversionxl.com/

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November 2015 Dr. Ute Hillmer

Use the Right Language

• Your value proposition needs to be in the language

of the customer. It should join the conversation that

is already going on in the customer’s mind.

• You cannot guess what that language is. The way

YOU speak about your services is often very

different from how your customers describe it.

http://conversionxl.com/

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November 2015 Dr. Ute Hillmer

• BMW promises “the ultimate driving machine”

• Nissan Leaf electric car is “100% electric. Zero gas. Zero tailpipe.”

• New Balance’s Minimus shoes are “like barefoot only better.”

• Vibram FiveFingers shoes: “You are the technology.”

• Facebook helps you “connect and share with the people in your life”

• YouTube “provides a place for people to connect, inform, and

inspire others across the globe.”

Useful Value Proposition Examples

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014

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Examples of Value Propositions in Crowded

Markets: Sell a Customer Experience!Car Repair Shop

• Simple fix for blown head gaskets

• Repairs blown head gaskets in just one hour

Domino Pizza

• “You get fresh, hot pizza, delivered to you in under 30

minutes – or it’s free!”

http://conversionxl.com/

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Customer Experiences Online Buyers want

• Low Prices (38%)

• Shopping Convenience (35.1%)

• Easy To Compare (33.1%)

• Free Shipping (31.5%)

• Time Saving (30.8%)

• Easy To Buy (29.2%)

• Range of Products (17.4%)

Infographic by Invesp (sources data from eMarketer and Internetretailer.com)

Don’t take these things at face value, because not everything

is as it seems. Ask your customers or test it

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November 2015 Dr. Ute Hillmer

• USP (Unique Selling Proposition). USP is the most closely related concept. It’s often considered

synonymous with value proposition (especially in relation to copywriting). But it only focuses on

what makes your product better than competing options. And that’s just a part of a strong value

proposition.

• FAB (Feature-Advantage-Benefit). FAB is a process that helps you figure out what each of your

product’s features means to your customers, which enables you to address their concerns,

desires, wants, and needs. You start by listing your product’s features (e.g., stainless steel as the

material of a knife). Then consider what advantages it creates (it won’t corrode). And finally turn

that into the practical benefit (you don’t need to buy a new knife every year).

• POP-POD (Points of Parity – Points of Difference). POP-POD is a process used to find

differentiating factors between businesses. You start by finding “points of parity,” or the factors

you have in common with your competitors. And then you find “points of difference;” the aspects

of your business thatdifferentiate you from your competitors.

• UVP (Unique Value Proposition). UVP sounds nearly the same as value proposition. But the

strong focus on uniqueness makes it less useful (much like USP).

ValueProp-USP-FAB-POP-POD-UVP

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November 2015 Dr. Ute Hillmer

Value Proposition Canvas

Products &Services

• Welche Produkte oderDienstleistungen helfen dem Kd. seinen funktionalen, sozialen oderemotionalen Job zu machen. Was stilltBedürfnisse?

• Produkte in Kundenprio setzen.

Gain creators

• Wir ermöglichen Produkte oderDienstl. Chancen (funktional, sozial, emotional, monetär)

Pain-Reliefers

• Wie verhindern oder verringern d. Produkte/Dienstl. Kunden-Schmerzen(funktional, sozial, emotional, monetär)

Job-to-be-doneWelchen Job (funktional, sozial, emotional) versuchen die Zielkunden zuerledigen:• Welche Aufgaben erledigen sie• Welches Problem versuchen sie zu

lösen?• Welche Bedürfnisse versuchen sie zu

erfüllen?

Pains

• Welche negativen Gefühle, unerwünschte Kosten oderSituationen, welche Risiken könnenvor, während oder nachAufgabenerledigung aufkommen

Gains• Welche Vorteile erwartet, wünscht der

Kunde (funktional, sozial, emotional, monetär)

Value Proposition Customer Segment(s)

based on: businessmodelgeneration.com

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November 2015 Dr. Ute Hillmer

Value Proposition Canvas Video

https://www.youtube.com/watch?v=gB-YwlBrVVs

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November 2015 Dr. Ute Hillmer

Your Customer‘s Job

The tasks your target customer has (for now, forget the buying center)

What urgent needs do they have?

What are their

Compelling desires?

……

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November 2015 Dr. Ute Hillmer

What are the• largest wins you can gain for our customer

• the biggest benefit, customers can obtain?

• Biggest pains we can offer relief for?

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November 2015 Dr. Ute Hillmer

The biggest result

Determine the biggest result your customers get

… it must be a big one!

What is your big promise?

People buy results and the

benefits they get from

these results

Page 126: ! Customer driven marketing 151204

November 2015 Dr. Ute Hillmer

When and how do you keep our promisses?

When were your

customers really

happy?

Why?

What was the right

fit?

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November 2015 Dr. Ute Hillmer

What product(s) do we offer?

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November 2015 Dr. Ute Hillmer

Task:

Lead your Project to

Huge Success:• Position your project innovation with the VP Canvas

- 30 Min each one individually

- Discuss it in teams of 3 (20 Min each)

• Present your Value Proposition (1 Min each)

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November 2015 Dr. Ute Hillmer

Our promise (1)

We help…

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Our promise (2)

What we help our customers do is:

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Our promise (3)

Why we do what we do to serve our customers:

Our Vision, what we hope to achieve:

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November 2015 Dr. Ute Hillmer

Our Promise (4)

How we differenciate from alternatives in the

market

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November 2015 Dr. Ute Hillmer

Positionierung: Value Proposition

• Operative excellence

• Product excellence

• Customer insight

You have a choice:

economic benefits

emotional benefits

functional benefits

Page 134: ! Customer driven marketing 151204

November 2015 Dr. Ute Hillmer

Value Proposition

We help …

(do the following things) …

in order to …

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November 2015 Dr. Ute Hillmer

Task:

Built the Value Proposition für Your PSA Project

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November 2015 Dr. Ute Hillmer

Tomorrow:Designing a Customer Driven

Marketing Strategy in an Online

World

Production concept

Product concept

Selling concept

Marketing concept

Societal Marketing concept

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November 2015 Dr. Ute Hillmer

Suggested Reading

• Value Proposition Design by A. Osterwalder, Y.Pigneur

• Groundswell by Charlene Li, Josh Bernoff

• Positioning by Trout and Ries

• In Pursuit of Wow! + The Tom Peters Seminar by Tom Peters

• What would Google do by Jeff Jarvis

• All Marketeers tell Stories by Seth Godin

• 1 to 1 Marketing Future by Don Peppers

• CRM at the Speed of light by Paul Greenberg

• The Long Tail by Chris Anderson

• The Wisdom of Crowds by James Surowiecki

• Crossing the Chasm by Geoffery Moore

• Selling the Dream by Guy Kawasaki

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November 2015 Dr. Ute Hillmer

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November 2015 Dr. Ute Hillmer

Dankeschön!

Page 140: ! Customer driven marketing 151204

175 von EndSeitenzahl

HERZLICHEN DANK FÜR

IHRE AUFMERKSAMKEIT!

GIBT ES FRAGEN?

© 2015 School of International Business and Entrepreneurship (SIBE) der Steinbeis-Hochschule Berlin I www.steinbeis-sibe.de I Dr. Ute Hillmer