Marketing Cases

Marketing Myopia message
sustained growth depends on how you define your business. What business are you actually in?
Marketing Myopia industry example
railroad industry– thought of themselves as in the railroad industry when actually in the transportation industry
Petroleum industry– focus on mass production and marketing is neglected
4 Myths that put business at risk
1. An ever expanding and more affluent population will ensure our growth
2. There is no competitive substitute for our industry’s product
3. We can protect ourselves through mass production
4. Technical R&D will ensure our growth
The Measure of Success main message
Financial software company was in a tough place because they lost sight of their relationship with their customers. Profits don’t always equal customer happiness. Loyalty with family and friends
2 conditions that must be satisfied to make a referral
1. Company offers superior value
2. They must feel good about the relationship with the company
2 requirements for growth
1. Profitable customers
2. Happy customers
Promoters
highest repurchase rates and 80% of referrals
Passives
motivated by inertia rather than loyalty or enthusiasm– may not defect until someone offers them a better deal
Detractors
negative word of mouth, may appear profitable from accounting standpoint, but criticism diminishes company’s reputation
Net Promoter Score
% of promoters minus % of detractors
Blue Ocean
uncontested market spaces where competition is irrelevant. focus on non customers.
Red Ocean
overcrowded industries. Supply > Demand. Differentiation becomes harder. Leads to price wars. focuses on current customers
Example of red ocean
Soft drink industry
Examples of blue ocean
Cirque du soleil– competed as an entertainment source rather than directly against the circus. Created new market that is a combo of circus and theatre
BMW primary problem
need marketing program to sustain product excitement until dealer product availability. also need transition away from ‘German made’
Clorox Problems
1. need to decide whether to continue investing in sustainability or not. BB and Greenworks only small part of revenue but large part of growth.
2. What should they put Clorox name on?
3. Should they look for emerging markets or core business for growth?
Sephora problems
1. want to increase SM presence but unsure which platform to invest in.
2. need more traditional way to calculate ROI
HHonors
problem– lack of awareness about rewards program. Need to decide whether to match or differentiate selves from Starwood
Annies
1. Want to age up the franchise
2. Want to broaden the target audience
Dropbox
young company in mature market. struggled to get on feet. User vs Vision led? eventually differentiated by offering more for free & had one product rather than multiple. Simple.Word of mouth was successful marketing. wanted to target young people and let their trust lead to companies using the program.
Aqualisa Quartz
high end shower. buzz from launch has faded. plumbers afraid to use because aren’t familiar with the product. struggling to decide who to target– DIYers, developers or consumers directly
1. Companies catching up
2. Service lacking
3. Overpriced reputation
Key takeaways Aqualisa Quartz
1. good products don’t always sell
2. bad products don’t always fail
3. brand equity is not equal to brand power– people aren’t always brand loyal
4. Easy marketing isn’t the same as good marketing
Starbucks
don’t really do marketing. change in brand image over time as they have shifted from a place to hangout to a grab and go place. Question– invest in more labor for stores?
Pros/Cons of Starbucks labor additions
Pros– more people helping. investment in customer satisfaction
Cons– risky. expensive. diminishing marginal productivity
Microsoft office problems
1. Bad perception/reception on college campuses
2. Lacks social anything
key take aways from United Breaks Guitars
bad PR can be detrimental to a company. need to deal with problems like this directly and immediately
Burberry
-wanted to maintain currency and cachet while entering new product categories and expanding distribution
Problems
1. Lost exclusivity
2. Variation in price, design, and quality
-then cut product lines and used Kate moss as icon
New questions
1. What product categories to enter
2. Will new customers alienate old customers?
Boston Fights Drugs
Problem– don’t know how to advertise effects of drugs to youth. there has been an increase in arrest but also needs to be a decrease in demand
-used focus groups to understand more about the problem
HEB Own Brand
grocery store trying to expand. Struggling with product placement– which markets should each of its brands compete in? also how to respond to price cuts by stores like walmart
google glass
Problems–
1. Distribution-online channels, open platform or partnership.
2. Training public to be comfortable with product
Eddie Bauer
1. How to deal with multiple channels and variation between them. Where should they focus their energy?
2. Want to change brand reputation so they can be known as casual outfitter rather than just a store that sells coats.
3. Should retail stores be in malls?
Corporate America chases the mythical millenial
there is a general perception of millennial when in reality all milenials don’t fit this stereotype. people underestimate millennial