Weekly Application #3
To help you integrate your learning, demonstrate your subject matter expertise, and build your professional brand, you will complete a weekly post that focuses on one or more of the topics covered that week. Each of the 8 weekly posts must be a minimum of 300 words in length (including the original post title) with no maximum limitation. Posts should be tailored to fit the personal/professional brand and/or expertise that youre trying to develop. After you have built your MSM WordPress website, you will upload your posts for each course to that site. (Thus, by the end of Term 5, you will have at least 80 uploaded posts on your website8 from each of the ten courses you will have completed by that time.)
Your weekly application posts should go beyond merely reiterating what was covered in the course materials. They should show your target audience(s) how to apply marketing concepts, techniques, or technologies to real-world problems or opportunities for which they have an interest. The topic of your post must be one of the main topics covered in each week’s lesson and the post must do more than merely mention a term from the week, it must demonstrate knowledge of the topic. Although the tone, style, voice, and mood of your writing is up to you, be sure to consider what would work best for your target audiences.
To build and maintain your professional expertise and to avoid appearing as only a student, it is imperative that you do not use words like professor, class, course, or other words (e.g., this week we learned about) that infer your role in these posts is one of being a student.
Also, make sure to submit your post PRIOR to posting it on your blog in order to ensure the plagiarism check works properly. Students showing a high score on the Turnitin results will receive a grade of zero.
Topic: why is it important to have a branding?
https://blog.marketo.com/2019/12/branded-videos-non-creatives.html
https://blog.marketo.com/2019/11/experiential-marketing-activation-brand.html
Please use the videos below to write the essay:
-https://www.ted.com/talks/seth_godin_the_tribes_we_lead
-https://www.ted.com/talks/seth_godin_how_to_get_your_ideas_to_spread#t-832375
Please make sure all the info given is used keep in mind this is a blog that will go in my page for academic purposes.
To Buy or Not To Buy
MAR 6805
Introduction:
This module covers pricing strategies, with an emphasis on the buyer decision process, and then the multicultural marketplace.
The following is a short outline and dialogue that focuses on one of the concepts that are covered to some degree in the text, but that are important enough for todays business environment that I want you to get a little more information, and I want you to do a little more thinking about how this concept applies to you in your workplace environment.
Remember, when you spend a few moments trying to apply what youve read or watched to your own situation, you learn better, retain information better, and will be better able to use the information in the future. And thats hopefully why youre in this program. I truly want you to be successful and to take useful information from this class to your lives outside of the MBA program.
To Buy or Not to Buy?
A wide range of businesses participate in B2B transactions. Many of these purchases with B2B are also managed through CRM systems like we talked about last week.
Youll find many purchasers or sellers of products in the B2B realm listed in the North American Industry Classification System NAICS the governments method of classifying business activity. Take a few moments to study the site and think about where your company (either where you work or the one youre using for your assignment) might be classified.
Did you know that the Local, State and Federal Government is the largest consumer in the world according to the Government Contractors Association with a total spending of $6 trillion?
Many firms sell exclusively to government entities and therefore are adept at meeting the unique needs of governmental buyers. For example, firms in the defense industry generally sell exclusively to governments.
One essential, yet potentially confusing component of doing business with Government organizations locally or globally is mastering the use of acronyms. Take a look at the Small Business Administrations sample list of Government acronyms just to get an idea.
If you have worked for a company of any size you will no doubt see that they have a process for making those purchases.
It begins with a request for solicitors or Request for Proposals (RFP). RFPs enable the buyer to solicit pricing and other information from a variety of suppliers and they also allow suppliers to learn about the buyer and its specific needs.
In the examples here, one school district is looking for an evaluator for a grant and another is seeking bids on various equipment. Potential suppliers can view the products/services being sought and then create a customized bid to supply that product or service.
A vendor is chosen, after a review of the criteria selected by the buyer as shown in the example. Then, for many institutions, a purchase order is generated to start the delivery process. Then an invoice is sent by the vendor and upon successful receipt of the order, the vendor is paid. This can be a 30-90 day process, so think about what type of reserves would you need as a company owner to compensate for this time lapse?
What is not always considered in this process is the critical part that marketers and marketing departments play in this purchasing process. Purchasing departments are the gate-keepers for many purchases. These departments must look at many purchase requests for products and then approve a purchase or require more information.
The individuals in the purchasing department frequently are not familiar with the products being requested for purchase and must rely solely on the descriptions of the product to make their decisions. If the products are missing some details or not fully represented by the marketers with the purchasing departments in mind, the companies and individuals requesting these purchases run the risk of not being approved.
Read the following to learn an example of such a case.
The Purchasing Dilemma
To demonstrate the power of Purchasing Departments in determining what can or can not be purchased. Take a moment to review this actual email exchange taking place in a public school district between a purchasing department and the physical education department. [Names have been removed.]
The value of a product may not be conveyed through conventional marketing messages and purchasing departments will look for the lowest price without really understanding the difference in specs. How well and detailed you construct the initial bid request in addition to how well the product itself is described by the company can make or break a deal.
This situation reminds me why it is so important for the marketing messages to be ultra-clear in communicating the value, not just the price. Descriptions need to be written with the purchasing decision-maker (Purchasing Dept.) in mind not simply the end user (PE Teacher). As you can see in the conversation belowthe PE Dept. was in jeopardy of not ending up with the desired type of pedometer and Company A may completely lose the sale (in this case over $60K.
———————————————————————————-
From: Instructional Services
To: Purchasing
Subject: RE: R1428011
What is the status of this purchase requisition? Please let me know if you need any additional information.
From: Purchasing
To: Instructional Services
Subject: RE: R1428011
I am still getting quotes. You can look for vendors on buyboard and TCPN that might be able to give you a quote.
From: Instructional Services
To: Purchasing
Subject: R1428011
We have already gotten several other quotes for the pedometers.
From: Purchasing
To: Instructional Services
Subject: RE: R1428011
Please send me the quotes that you have.
From: Instructional Services
To: Purchasing
Subject: RE: R1428011
Attached are all the quotes I have collected. Please let me know if you have any questions.
From: Purchasing
To: Instructional Services
Subject: FW: R1428011
Please attach the quote sheet and release your requisition back to purchasing. Please include all the emails and quotes. The recommended vendor is the lowest vendor its Company B.
From: Instructional Services
To: Purchasing
Subject: RE: R1428011
We appreciate your assistance in helping us find additional quotes however, the original Company A quote shows each pedometer priced at 20.79 and meets our requested needs. Therefore we still wish to continue with our original request of Company A. Please let us know if you have any questions.
From: Purchasing
To: Instructional Services
Subject: RE: R1428011
Company A is $10,000 more than Company B. That is a big difference. A is $19 each vs $20.79 for B. I am looking at pricing as our reason to go with the lowest vendor. We cannot purchase from A they are a lot higher unless you have a valid reason.
From: Instructional Services
To: Purchasing
Subject: RE: R1428011
When we attend our professional conferences, we have access to the exhibit hall to review products from many vendors to determine in advance which meet the needs of our students and PEP Grant.
We chose the Company A Pedometer for its ability be used as an assessment tool it uploads the movement data to our physical education teachers computer through proprietary software which allows specific reports to be generated for the students. This reporting feature is now compatible with the IHT system that we currently are using in our schools to allow even greater reporting capacities. This supports the health and physical education portion of the IB initiative in the District as well as the federal grant outcomes.
The Company B is a well-made pedometer, however it has only an internal system that tracks one individuals activity. There is no uploadable feature, no software and no reporting feature. While it is a pedometer, it does not have the additional software that we need offered by Company A.
Thanks again for your assistance, however we do still need to request the purchase from Company A, to meet our needs in the physical education program grant.
__________________________________________________________________________
To recap, the Purchasing Department was looking for other pedometers on their own to find cheaper versions because they determined that the requested pedometer was too expensive and did not find a significant difference based on product descriptions. They did not understand the unique software that came with the pedometer provided by Company A and were not going to approve that purchase. The software was a critical component of the pedometer purchase for the physical educators were going to use the software in the pedometers as assessment tools to report student progress to both a grant program and state education standards.
This exchange continued for several more days in attempt to help the purchasing department (clerk all the way up to Director) understand how this particular pedometer truly was unique from all other pedometers and why the software supplied made it necessary.
Without the continued intervention of the physical education administrators in the process to help describe the uniqueness of these pedometers, the sale would have been lost to a lower priced item that would not have met the intended functional requirements; initially because Company A had not provided enough details in their description of the product.
Now put this Purchasing Department situation in the global marketplace and it becomes even more complex. There are even more potential issues such as: language, culture, branding, product descriptions, channels, adaptation for a foreign market, etc.
Some companies use statistical resources such as the Nation Master website for decisions regarding how, where and when to expand into the global marketplace.
Consider again how your company or industry may interact with the individual buyer, business buyer or global buyer. What have you found to be successful or challenging in these areas?
Take a look at the United Nations Global Marketplace site to review the process for international RFP type opportunities. This is one of many type of clearinghouse type sites for a variety of products and services solicitations around the world. Prof. Cloudya Esther
Marketing Management 6805
FIU – MSM
The Marketing Plan
Part 3 – Segmentation | Mix: Product & Price
COMING UP
This lecture, will cover the underlined
sections of how to build a Marketing
Plan:
Executive Summary
Mission | Vision | Objectives | Value Proposition
Strategy
Segmentation | Mix | Budget | Timeline
1
2
3
4
Market Research
Buyer | Brand | SWOT | Industry
Execution
Create | Test | Launch
5 Analytics
Evaluation | Monitoring
WHAT IS MARKET
SEGMENTATION?
The process of grouping customers within a market
according to similar needs, habits or attitudes that
can be addressed through marketing.
The point is to identify distinct segments of customers with similarities
that respond to marketing efforts.
Within the Milk
Industry you have
Various Segments
WHY SEGMENTING THE MARKET?
Reason 2
Segmentation lays the foundation to for
identifying yourTarget Market, using marketing
to give the brand/product a distinctive and
meaningful place (position) in the minds of
targeted customers.
Reason 1
Segmentation is an important part of
marketing planning because it allows
marketers to focus their resources on the
most promising opportunities.
UNDIFFERECIATED
MARKETING
DFFERENCIATED
MARKETING
Targeting all market segments with the
same marketing strategy, also known as
Mass Marketing.
Creating a Separate Marketing Strategy for
each targeted segment.
The AIDA
Model
AwarenessAwarenessAwareness
InterestInterestInterest
DesireDesireDesire
ActionActionAction
Digital Funnel Awareness Phase
Collateral
Telemarketing
White Papers
Webinars
Banners
Print Ads
PR
SEO
Social Media
Transactional
Phase
Thank you Achnowledgment
Consideration Phase
Customer Evidence
Testimonials
Assesment Tools, calculators
Demos
Case Studies
References
Onboarding
Welcome Kit
Awareness
Consideration
Conversion
Loyalty
Advocacy
Loyalty Programs
Rewards
Newsletters
Events
Community
Customer Satisfaction Survey
Net Promoter Score Survey
TACTICS
Attract potential buyers, influencers and
referral sources
ATTRACT PROSPECTS
BUILD ENGAGEMENT
Deepen engagement with you prospects and turn
them into educated and qualified opportunities.
TURN OPPORTUNITIES
INTO CLIENTS
Make the decision easy for prospects that
are ready to buy.
THIS IS WHAT WE DO!
Elements of the Marketing Mix
Since the 1960s, marketing mix as been associated with thefour Ps:
Product
1 2 3 4
Price PlacePromotion
Identifying and arranging the elements of its marketing mix allows a
business to make profitable marketing decisions at every level.
These decisions help a business:
Develop its
strengths and
limit its
weaknesses
Become more
competitive and
adaptable in its
market
Improve
profitable
collaboration
between
departments
and partners
WHAT IS A DIGITAL
MARKETING MIX?
A digital marketing mix is how a business achieves its
marketing goals using digital technologies. As more
business is done online, digital marketing tools become
important to all types of businesses, not only those in the
tech industry.
A digital marketing mix follows the same principles of a traditional marketing mix. However, those
elements are adapted to the way the Internet influences new technologies and consumer behavior.
The Four Cs of a Marketing Mix
In the 1990s, the four Ps were adapted to the four Cs to place less
focus on the business and more on the customer.
Consumer
1 2 3 4
Cost CommunicationConvenience
Miyazaki’s
DISTRIBUTION
APPROACH
TO MARKETING
EXCHANGE
Seller
Transaction
Cost
INFORMATION
“BUYER”
INNOVATION
COMPENSATION
Seller
Transaction
Cost
Seller
Transaction
Cost
Buyer
Transaction
Cost
Buyer
Transaction
Cost
Buyer
Transaction
Cost
“SELLER”
To put the idea of the distribution approach to marketing in a real life scenario (or
a sit-come scene), lets watch this clip from a Friends episode where Ross buys a
couch, and ends up paying a very high transaction cost.
https://www.youtube.com/watch?v=BGt-Sdwzxyw
If you think
about it, we
make purchase
decisions based
on transaction
cost all the time.
– Do I get this from Amazon even if its a couple of bucks
more expensive so they bring it to my door? (innovation –
convineince)
– Do I buy this more expensive plane ticket so I get to use
their executive lounge? (innovation- loyalty)
– Do I buy this product because it says specifically that it
works with my mac model, instead of the other that only
says work with Apple computers? (information)
WHAT IS A PRODUCT?
A product is any good, service, or idea that can be offered to a market to
satisfy a want or need.
A good, service, experience or idea
Produced and marketed so that it justifies continuance
Serves customers
Produce satisfaction and innovation
Generates funding (profit/surplus)
Marketers must consider thelife cycle of the productto address any challenges
that may arise once it’s in the hands of the consumer.
Considered tangible
products that are interactive
with in some manner
Apparel
Equipment
Supplements
Non-tangible products
generally, provided by a
person with training or
expertise in an area
Personal Trainer
CPA Accountant
Freight Forwarding
Entertainment base event
Event (ultra)
Destination (wine tour)
Membership (time share)
TYPES OF PRODUCTS
GOODS
SERVICES EXPERIENCES
Promoting an idea or a lifestyle
Advocacy Groups
Research
Organizations
IDEAS
COMPLEXITY
OF PRODUCTS
To better meet customer-
specific and market-specific
demands, companies are
increasing the number
ofproductsandproductvariants
they manufacture.
CORE
CUSTOMER
VALUE
ACTUAL PRODUCT
ASOCIATED SERVICES
Brand Name Packaging
Features/Design Quality Level.
Financing
Product Warranty
Product Support
EXAMPLE: ONLINE
SUPPLEMENTS COMPANY
PRODUCT
DECISIONS
Breadth refers to the number
of product lines that you have
such as in this Adidas
examples, Footwear, Apparel
and Accessories.
Depth in this case refers to the
number of categories within
each of those product lines.
Packaging
Sometimes
it becomes part of the
brand identity
What is the
Real Exchange?
The answers to this questions are
opinion base.
What is the general product?
What is really exchanged?
What product is needed?
What product can be sold?
Determining
Product
Development
– The market will determine what can
and cannot.
– Thisanswer can be determined by
doing quality market research
Ask the right questions using
Market Research
What benefits do they offer?
What needs/desires do they
fulfilled?
What basic needs are fulfilled?
What satisfaction/value/utilities
the consumer receive?
Types of Pricing
Strategies
Competition-Based Pricing1
2
3
4
5
6
7
8
Cost-Plus Pricing
Dynamic Pricing
Freemium Pricing
High-Low Pricing
Hourly Pricing
Skimming Pricing
Premium Pricing Strategy
9 Project Based
10
11
12
Value Based
Bundle Pricing
Psychological Pricing
13 Geographic Pricing
COMPETITION-BASED
PRICING STRATEGY
This pricing strategy focuses on the existing
market rate (orgoing rate) for a companys product
or service; it doesnt take into account the cost of
their product or consumer demand.
Instead, a competition-based pricing strategy uses
the competitors prices as a benchmark.
Businesses who compete in a highly saturated
space may choose this strategy since a slight price
difference may be the deciding factor for
customers.
Whichever price you choose, competitive pricing is
one way to stay on top of the competition and keep
your pricing dynamic.
AKA competitive pricing or
competitor-based pricing.
1
COST-PLUS PRICING
STRATEGY
A cost-plus pricing strategy focuses solely on
thecost of producing your product or service, or
your COGS.
Its also known as markup pricing since businesses
who use this strategy mark up their products
based on how much theyd like to profit.
To apply the cost-plus method, add a fixed
percentage to your product production cost.
Cost-plus pricing is typically used by retailers who
sell physical products. This strategy isnt the best fit
for service-based orSaaS companiesas their
products typically offer far greater value than the
cost to create them.
AKA Mark-Up Pricing
2
DYNAMIC PRICING
STRATEGY
Its a flexible pricing strategy where prices fluctuate
based on market and customer demand.
Hotels, airlines, event venues, and utility companies
use dynamic pricing by applying algorithms that
consider competitor pricing, demand, and other
factors. Even Amazon has been openly using it.
These algorithms allow companies to shift prices to
match when and what the customer is willing to pay
at the exact moment theyre ready to make a
purchase.
AKA Surge Pricing, Demand Pricing,
or Time-Based Pricing
3
FREEMIUM PRICING
STRATEGY
A combination of the words free and premium
freemiumpricing is when companies offer a basic version
of their product hoping that users will eventually pay to
upgrade or access more features.
Unlike cost-plus, freemium s a pricing strategy commonly
used by SaaS and other software companies.
They choose this strategy because free trials and limited
memberships offer a peek into a softwares full
functionality and also build trust with a potential
customer before purchase.
With freemium, a companys prices must be a function of
the perceived value of their products.
Prices must present a low barrier to entry and grow
incrementally as customers are offered more features and
benefits
4
HIGH-LOW PRICING
STRATEGY
A high-low pricing strategy is when a company
initially sells a product at a high price but lowers
that price when the product drops in novelty
or relevance.
Discounts, clearance sections, and year-end sales
are examples of high-low pricing in action hence
the reason why this strategy may also be called
adiscount pricing strategy.
High-low pricing is commonly used by retail firms
who sell seasonal or constantly-changing items,
such as clothing, decor, and furniture. What makes
a high/low pricing strategy appealing to sellers?
Consumers enjoy anticipating sales and discounts,
hence why Black Friday and other universal discount
days are so popular.
AKA Discount Pricing Strategy
5
HOURLY PRICING
STRATEGY
Hourly pricing, also known as
rate-based pricing, is commonly used by
consultants, freelancers, contractors,
and other individuals or laborers who provide
business services.
Hourly pricing is essentially trading time for money.
Some clients are hesitant to honor this
pricing strategy as it can reward labor instead of
efficiency.
6
SKIMMING PRICING
STRATEGY
A skimming pricing strategy is when companies
charge the highest possible price for a new product
and then lower the price over time as the product
becomes less and less popular.
Skimming is different than high-low pricing in that
prices are lowered gradually over time.
Technology products, such as DVD players, video
game consoles, and smartphones, are typically priced
using this strategy as they become less relevant over
time.
A skimming pricing strategy helps recover sunk costs
and sell products well beyond their novelty, but the
strategy can also annoy consumers who bought at full
price and attract competitors who recognize the fake
pricing margin as prices are lowered.
7
PREMIUM PRICING
STRATEGY
Also known as premium pricing and luxury pricing,
aprestige pricing strategyis when companies price
their products high to present the image that their
products are high-value, luxury, or premium.
Prestige pricing focuses on the perceived value of a
product rather than the actual value or production
cost.Prestige pricing is a direct function ofbrand
awarenessand brand perception.
Brands who apply this pricing method are known for
providing value and status through their products
which is why theyre priced higher than other
competitors.
Fashion and technology are often priced using this
strategy because they can be marketed as luxurious,
exclusive, and rare.
8
PROJECT-BASED
PRICING STRATEGY
A project-based pricing strategy is the opposite of
hourly pricing this approach charges a flat fee
per project instead of a direct exchange of money for
time.
It is also used by consultants, freelancers, contractors,
and other individuals or laborers who
provide business services.
Project-based pricing may be estimated based on the
value of the project deliverables.
Those who choose this pricing strategy may also
create a flat fee from the estimated time of the
project.9
VALUE-BASED
PRICING STRATEGY
A value-based pricing strategy is when companies
price their products or services based on what the
customer is willing to pay. Even if theycancharge
more for a product, they decide to set their prices
based on customer interest and data.
If used accurately, value-based pricing can boost your
customer sentiment and loyalty. It can also
help you prioritize your customers in other facets of
your business, like marketing and service.
On the flip side, value-based pricing requires you to
constantly be in tune with your various customer
profiles andbuyer personasand possibly vary your
prices where your customers vary.10
BUNDLE PRICING
STRATEGY
A bundle pricing strategy is when you offer (or
“bundle”) two or more complementary products or
services together and sell them for a single price.
You may choose to sell your bundled products or
servicesonlyas part of a bundle, or sell them
asbothcomponents of bundlesandindividual
products.
This is a great way to add value through your offerings
to customers who are willing to pay extra upfront
for more than one product. It can also help you get
your customers hooked on more than one of your
products faster.11
PSYCHOLOGICAL
PRICING STRATEGY
Psychological pricing is what it sounds like it targets
human psychology to boost your sales.
For example, according to the “9-digit effect”, even
though a product that costs $99.99 is essentially $100,
customers may see this as a good deal simply because
of the “9” in the price.
Another way to use psychological pricing would be
toplace a more expensive item directly next to (either,
in-store or online) the one you’re most focused on
selling. Or offer a “buy one, get one 50% off (or free)”
deal that makes customers feel as though the
circumstances are too good to pass up on.
And lastly,changing the font, size, and color of your
pricing informationon and around your products has
also been proven, in various instances, to boost sales.
12
GEOGRAPHIC
PRICING STRATEGY
Geographic pricing is when products or services
are priced differently depending on geographical
location or market.
This strategy may be used if a customer from
another country is making a purchase or if there
are disparities in factors like the economy or wages
(from the location in which you’re selling a good to
the location of the person it is being sold to).
13
Its essential to know your products and understand how to price for value.
Part of that is being clear on the goals of both your product and your profits.
Are you designing/selling products that are for convenience, profit, solutions,
service, etc?Understanding why youre selling your product then helps you determine
more about the pricing.
Its not just the manufacturing costs, it also requires knowing the market rate,
competitors prices, the unique benefits and features, and what end of the branding
scale you desire to be on (exclusive vs. convenient).
PRICING
CONCLUSION
Recap
After today’s lesson you should
understand and be familiar with the
following concepts:
Executive Summary
Mission | Vision | Objectives | Value Proposition
Strategy
Segmentation | Mix | Budget | Timeline
1
2
3
4
Market Research
Buyer | Brand | SWOT | Industry
Execution
Create | Test | Launch
5 Analytics
Evaluation | Monitoring
