Lecture 11: Unique Marketing Issues Confronting New Ventures

Co-branding refers to a relationship between two or more firms where the firm’s brands promote each other.

-> Red Bull and GOPRO

• The brand is all about the attributes and promises that people associate with a company.
• The position is all about the details.

A marketing mix is the set of controllable, tactical marketing tools that is used to produce the desired response in the target market.

• Product

• Price

• Promotion

• Place

Determining the product/ service to be sold is central to the firm’s entire marketing effort.

(Die Bestimmung des zu verkaufenden Produkts/Dienstleistung ist von zentraler Bedeutung für die gesamte Marketingstrategie des Unternehmens.)

The consumer buys the actual product (see picture).

The price is the amount of money consumers pay to buy a product and is the only element of the marketing mix that produces revenue

A firm needs to communicate the merits of its product to its target market in order to persuade people to buy the product.

Ways:

1. Advertising
2. Public Relations

Advertising is used by entrepreneurs to promote their firms

PR refers to a number of techniques

-> siehe bild

A firm's product needs to move from its place of origin to the consumer by taking a distribution channel.

+ control

- capital tied up in fixed assets

+ less capital tied up in fixed assets

- loss of control

1. Identify the purpose of the ad
2. Determine the target audience
3. Select a medium
4. Create the ad
5. Selecta  time and place for the ad to appear
6. fulfill expectations

Following the three step process, you need to segment the market, determine
the target market and establish a unique position within the target market.

The market is divided into groups of customers which are similar
enough that the same product/ service will appeal to them.

• Involves studying a firm’s industry and determining the different target markets in that industry.

Markets can be segmented in a number of different ways, including:

− Geography (city, state, country).
− Demographic variables (age, gender, family size).
− Psychographic variables (personality, lifestyle, values).
− Behavioral variables (benefits sought, brand loyalty).
− Product type (varies by product).

a place within a market segment that represents a narrower group of customers with similiar interests.

• understand the market

• meet its customers’ needs

• become an expert

• provide customers with high levels of value and service

A firm establishes a position in order to differentiate itself from its competitors.

• part of a market/ segment the firm is claiming as its own

• how the firm is situated relative to its competitors

• A firm establishes a unique position in its customers’ minds by drawing attention to two or three of the product’s attributes

• Firms often develop a tagline to reinforce the position they have staked out in their market. 

Selling benefits rather than features. 

While features are nice, they typically do not entice someone to buy a product.

a set of positive or negative attributes that people associate with a company

• monitoring the integrity of the brands, protecting the image and value of an organization's brand in consumers' minds.

• the term denotes the set of attributes and liabilities that are linked to a brand and enables it to raise a firm's valuation

1. a brand is an EXPECTATION of performance
2. a brand is an unwritten WARANTEE 
3. a brand is a PROMISE
4. a brand is a GUARANTEE
5. a brand is a REPUTATION
6. a brand is a collection of MEMORIES
7. a brand is a PLEDGE 
8. a brand is a mark of TRUST and REDUCED RISK