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Marketing

Jay is currently studying branding in the net economy.
Mass advertising is wasteful when you can provide an experience for the same cost.

 Advertising Age - The Advertising Century

Products are dead. Services are dead.

Sell offers.


from Ted Levitt's

The Marketing Imagination

 The purpose of a business is to create and keep a customer.  To do that, you have to do those things that will make people want to do business with you.

 To do that you have to produce and deliver goods and services that people want and value at prices and under conditions that are reasonably attractive relative to those offer by others to a proportion of customers large enough to make those prices and conditions possible.

 Customers buy hopeful expectations, not actual things.  The ability to satisfy those expectations is more effectively communicated by the packaging than by simple generic description of what's in the package.

 The total product concept:  generic product, surrounded by expected product, by augmented product, by potential product....

 The form of a product is a variable, not a given.  Products are planned and developed to serve markets.

 There is no such thing as a commodity.  All goods and services are differentiable.

from Marketing is Everything by Regis McKenna (HBR 1-2/91)

 Knowledge- and experience-based marketing spells once-and-for-all the death of the salesman.

 Twenty years ago there were fewer than 50,000 computers in use; today more than 50,000 computers are sold every day.

 Today's marketing is geared toward creating rather than controlling a market. Several decades ago, sales-driven companies practiced "any-color-as-long-as-its-black" marketing. Now it's "let's figure out together whether color matters to your long-term goal."

 Marketing must find a way to integrate the customer into the company--to create and sustain a relationship. It's not a function--it's a way of doing business.

 The real goal of marketing is to own the market.

 When you own the market, you develop your products to serve that market specifically; you define the standards in that market; you bring into your camp third parties who want to devleop their own compatible products or offer you new features or add-ons to augment your product; you get the first look at new ideas that others are testing in that market; you attract the most talented people because of your acknowledged leadership position.

 The technology embodies adaptability, programmability, and customizability; now comes marketing that delivers on those qualities. Today technolgy has created the promise of "any thing, any way, any time."  ...advertising's dirty little secret: it serves no useful purpose. In today's market, advertising simply misses the fundamental point of marketing--adaptability, flexibility, and responsiveness. The new marketing requires a feedback loop; it is this element that is missing from the monologue of advertising but that is built into the dialogue of marketing.

...the new marketing model, a shift from monologue to dialouge.

 The line between products and services is fast eroding. What once appreared to be a ridid polarity now has become a hybrid: the servicization of products and the productivization of services. Marketers who appreciate the importance of the product-service hybrid focus on building loyal customer relationships.

 From The Regis Touch

 Today diversity costs no more than uniformity.

 Marketing a product is a continuous experiment.

 Innovators (2.5%), early adopters (13.5%), majority, laggards (16%)

 "The only quantitative data I use are what people have done, not what they are going to do.  No great marketing decisions have ever been made on quantitative data."  -- John Sculley

 Customers are always enthusiastic about future products once they are introduced.  In many cases, there seems to be an infinite demand for the unavailable.

From HBS notes:

 the process....

             analyze primary demand (trends, "the trade," competition, technology, gov't, consumer behavior

             market segmentation --> product positioning

                        hope vs. help

                        Yankelovich: "Once you discover the most useful ways of segmenting a market, you have produced the beginnings of a sound marketing strategy."

             devise a marketing mix 

                        product

                                    price

                                    pkg

                                    brand

                        channels of distribution

                                    physical dist (delivery)

                        price and margin

                        promotion

                                    advertising

                                    personal selling

                        way of doing business

                                    (made to order?)

People buy intangibles (the sizzle, not the steak).

 Y&R identified typical Merrill Lynch customers as independent-minded private investors rather than as those who follow the herd.  Merrill Lynch consequently changed its advertising campaign from a herd of bulls to a solitary bull, and its slogan from "Bullish on America" to "A Breed Apart."

 Good marketing is:

             o          association/positioning  (i.d., rep for quality, competition)

             o          dialog (meets needs)

             o          building relationships (trust, know you)

             o          removing barriers to sale

                                                 --Kristen Zhivago

from Gordon Bell's High Tech Ventures:

  1. marketing is responsible for clearly segmenting the market, providing initial sales leads, and supplying the right product information for the sales personnel and customers. sales is responsible for identifying specific buyers, closing sales, and when the product has been delivered, ensuring that the customers are happy.
  2. marketing is the collective mouthpiece for the firm and the guidance system for the sales organization. marketing's job is to make selling easy.
  3. the head of marketing needs to be an artist and an inventor. part wizard, part technologist, part street fighter, and part strategist. powerful imagination but is able to balance a checkbook. charter is to invent a product in the minds of buyers.  an idea-driven artisant who feeds on creative opportunity.
  4.  requirments are creativity and analytical ability. "a rare blaned of intuitive and analytical skills." also someone who can develop a marketing plan, lead a department and team, and manage according to the plan.
  1. Diamonds are forever (DeBeers)
  2. Just do it (Nike)
  3. The pause that refreshes (Coca-Cola)
  4. Tastes great, less filling (Miller Lite)
  5. We try harder (Avis)
  6. Good to the last drop (Maxwell House)
  7. Breakfast of champions (Wheaties)
  8. Does she ... or doesn't she? (Clairol)
  9. When it rains it pours (Morton Salt)
  10. Where's the beef? (Wendy's)

 

 

 


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