Some people market Idea’s—not necessarily goods or services
Understand meaning of 12 words (Sustainable means any business on which you can keep doing business you cannot dupe customers and run away. On Exchange, sometimes people think it’s a monetary exchange it can be barter. EG. Exchange between ME and Gainesville city, perhaps tax. Not obvious exchange. Exchange marketing of mosquito nets- to explain what can happen if they aren’t used. Sometimes money is given by a 3rd party. Sometimes there is an exchange of information between firm and individual, and someone else gives the money.
Porters 5 forces analysis. Often people confuse buyers and suppliers. What was the relationship between Mailboxes and UPS. Mailbox is the buyer of UPS services. Vertical integration, company buys either a buyer or supplier. If company buys supplier, it’s called backward integration. If company buys buyer, its forward integration.
Author -> Publisher -> Google
Name porter’s 5. Identify 5 forces. Competition is between similar companies. New entry, other company’s not necessarily in the business. Substitute, products which exist, and solve the core need of the customer.
Strategies, alliance, merger, differentiation, R&D.
New entry threat-- Build barriers, create brand so that new entrants much incur similar cost.
Threat of sub—R&D focus, You are the USPS, email is a substitute, so they can invent a new technology.
BCG Growth Share Matrix
Market Growth rate (Middle 5%) vs. Relative Market Share (Middle 1x) (Own market share/Largest Competitor’s share) i.e. Google = 70% / yahoo = 20% RMS GOOG = 3.5 RMS Yahoo RMS = .3.
Cash Cow, Star, Question Mark, Dog
BCG Strategies Business Unit Objective: Manage Risk Portfolio Marketing Objective: Build ?, Hold Star, Harvest Cow, Divest Dog
Ansoff’s Growth Strategies
Market Penetration, Product Development, Market Development, Diversification
New = New to the firm, something different from what it was doing earlier
Define Existing Product and Existing Market
Innovations: type I value – Removed Benefits all across
II Discontinuity – All improved
III Radical – New benefit
IV Incremental – Cutting on one benefit, Building on another
Product life cycle
Specifically based on category level (i.e. Smartphone, not Iphone)
Objective based on situation
Introduction – Gain awareness,
Growth - Differentiate
Maturity – Loyalty
Decline – Harvest, delete
CLV can lead to loyalty, i.e., the whale
Diffusioin of Innovatioin, Bell shaped.
Initial strategy is to target the innovators, then focus on next step
Why doesn’t early adoption happen? Advantage relates to benefits, whether a product gives a lot of extra benefit over others. Compatibility relates to behavior and technology and whether it works with other products or behavior. Complexity has to do with the learning curve and switching costs, Observability is it easily observed- home use or outside use (Perhaps incentivize posting of pictures to Facebook), Risk is about different kinds of financial risk and social risk, Divisibility is about how you make people try (I.e. car sellers give people a try, cost is depreciation from sample, but allow for more divisibility. Creating divisibility you must mimick actual usages)
Different product attributes Core offerings – Inside product Augmented – Incorporated outside (Best thing to do is read the 4 page article from HBR)
Mapping attributes to benefits
Benefits are slightly at the higher level
Attributes are many. Sometimes multiple attributes make a benefit.
Benefit of a car—Safety
Attributes—Airbags, Seatbelts, Shell, Center of Gravity
Vector Attributes- Customer wants more within reasonable bounds. Everyone wants it. Light bulb lasting longer.
Ideal Point attributes – Attributes where some people differ. Bright light or Diffused light bulb.