Marketing

Session 3:
Formulating marketing strategies
October 2016
Professor Anne-Laure Sellier
Green light on Propecia
Please answer the following questions:
1. Outline the possible consumer journey(s) that men suffering from some
degree of hair loss go through in the current market. At what point are they
likely to request Propecia?
2. Outline the physician journey to prescribing Propecia, being that Propecia
is a prescription drug,
3. Identify – in this (these) consumer / physician journeys, all the possible
reasons why Merck is likely to lose consumers.
4. Among consumers, which men are most likely to adopt Propecia early,
and why? Which men are least likely to adopt Propecia, and why?
5. Looking at the various options for Merck to advertise their product, how
attractive do you think each one is, and why? What are issues / limitations
of each option?
6. What other forms of promotion than those listed in the case may prove
helpful in Propecia’s launch? Being very specific, what would you
do with this approach (these approaches)?
Marketing plan anatomy

Market research
Segmentation
Targeting
Positioning
4 P’s: Price
Promotion
Product
Place
Segmentation: remember

•  Recognition of consumer heterogeneity

•  A chance to redefine the competitive game

•  Does not imply a complete redefinition of

marketing strategy: self-selection
Importance of the Necker
Cube
 Targeting
•  Step 2 of marketing strategy
•  Do not conflate segmentation & targeting
•  Divide up your pie. THEN pick your slices

A B C D
A B C D

Which particular segment do we target?

Which markets?
Choose markets offering a lot of surplus

High willingness to pay

Low cost to satisfy customer needs

Call waiting
Big market

Analgesics
 Basic principles of marketing targeting:
Which markets?

1.  Market attractiveness

–  Where lots of surplus is available (cost vs. willingness to
pay, market size and growth)

2.  Ability to compete

–  Where you have market power (horizontal competition)
–  Where suppliers and distributors don’t have market
power (vertical competition)
Targeting and competition
Stimulating?

Fattening?
Targeting
Targeting: remember

•  Where is consumer surplus & are you best at

reaching it?

•  Allows you to pick

–  Who your customers are
–  Who you do NOT want as customers
Positioning:
The throbbing headache analogy
 What is your brand positioning?
A brand is the opposite of a commodity
You - Commodity = Brand

SAFE - Car =

Magical
 What is a positioning statement?
Not a mission statement
– “Beat Coke”
– “We will crush, squash, and slaughter Yamaha”
– “A car every working man can afford”
– “A computer on every desk in every home
running Microsoft software”
– “Perform a manned lunar landing and return”
– “Improve life on Earth and search for and expand
life beyond Earth”
What is a positioning statement?

Not a mission statement

Not an advertising slogan

–  “It’s the real thing”

–  “Just do it”
–  “Play on”
–  “Because I’m worth it”
–  “The best a man can get”
What is a positioning statement?
Not a mission statement
Not an advertising slogan
An articulation of strategy/the DNA of the brand
–  Consistent with mission & advertising
–  Considers customers / competitors / capabilities
–  No fixed format
–  Clarity and consistence
Positioning statement at school

“To (target segment and need) our (brand) is

(concept) that (point-of difference).”

…what you do for whom, to uniquely solve an

urgent need.
 Who?
Target
customer To business managers and professionals
What? engaged in making time sensitive
decisions about international business,
Value
DHL delivers on time because its pickup,
proposition transportation and delivery system is
How? wholly-owned and managed by DHL
Capabilities personnel, not by third party providers.
The name of the game
◗  Getting out of anonymity
◗  An increasingly difficult challenge…

X X
Position Case 1: Quidel

B2B marketer of pregnancy tests

Quicker, more reliable than competition
Attracted to B2C Market (home pregnancy tests)
Consumer research: 2 Segments
Multiple targeting strategy
For each target segment…a different position
 ”Fearfuls”
Position Case 1: Quidel
Possibly pregnant women, age 16-42, whose income ranges from
unemployed to $100k. They do not want to become pregnant and
are hoping
B2B marketer offorpregnancy
a negative result.
testsThey are extremely nervous
about the test but view it as something that they must endure in
Quicker,
ordermore reliable
to relieve than competition
their uncertainty and (hopefully) quell their fears
Attracted to B2C Market (home pregnancy tests)
Consumer research: 2 Segments
Multiple targeting strategy
For each ”Hopefuls”
target segment…a different position
Possibly pregnant women, age 16-42, whose income ranges from
unemployed to $100k. They are trying to become pregnant and
are hoping for a positive result. They are extremely nervous
about the test and its implications,and they see the test as
something that may mark the start of a new phase in their
lives.
What Did Quidel Do?
HOPEFULS FEARFULS
Brand Name
Brand The simplest, most trusted, A reliable source of
way of knowing when your peace of mind in 30
Position family will grow or begin. seconds.

Packaging

SKU
Position Other HPT Condoms
Brand Ovulation Testing Self Tests:
Architecture Flu, Strep, Chlamydia
Price $9.99 $6.99
 Position lesson Customers
from Quidel
Position

•  It’s not what you sell, but what they buy

•  The position must reflect customer needs
•  Different segments, different needs
•  Local markets – Local positions
•  Multiple segments, multiple positions
The 3 C’s test to assess positioning quality
Customer
relevance?

Capabilities Competitive
support?
Brand differentiation?
positioning
 Customer relevance
Strategy
Drive market share by targeting new hyperlipidaemia
patients at risk of cardiovascular disease by
differentiating CRESTOR on its superior lipid efficacy
profile (LDL & HDL)
Concern about how Concern with patients
others will perceive them welfare (50% are not
when prescribing statins hitting targets)

Concern about being in

control (50% are not
hitting targets)

Customer insight = Need for reassurance

Brand proposition =
“Right the First Time”
 Positioning: The 3 C’s
Customer

Capabilities
relevance
û
Competitive
Brand
support differentiation
positioning
Competitive differentiation: toward
uniqueness

Copy-cat branding
40% 6%
 dunkers
•  Dairylea: A staple kids cheese brand
•  Goal: Create a new product for the school lunchbox
•  Challenge: Balance consumer’s desires (child’s) with
customer needs (parent’s)
•  Focus groups on packed lunches
•  Focus groups on “The 3rd thing”
“The 3rd Thing”
Nutritional

Dull Fun

Junk
“Dairylea is a fun and active way to provide daily nutrition for
children who eat packed lunches and the mothers who pack them”
 Positioning: The 3 C’s
Customer

Capabilities
relevance
û
Competitive
Brand
support differentiation
positioning

û
 Capabilities support
Volvo Safety Firsts
1927
BRANDSafety glass windshields with automatic windshield wipers
VALUES
1944 Steel cage created to help protect passenger compartment
Safety Preventative
Preventative Safety
Safety Increased Visibility
1944 Laminated windshields installed 15 years before mandatory
1958 Quality Personal Safety
Three-point shoulder/lap Improved
seat belt patented byHandling
Volvo
1959 Environment Safety First seat belts Ergonomic
Three-point shoulder/lap introduced Interiors
in some models
1960 Padded instrument
Safetypanel installed Volvo Innovations in
Centre
1967 Three-point seat belts
In-Car included
Child Safety in rear outboard seats
Preventative Safety
1970 Industry's first auto accident investigation team established
1973 Electric rear window defroster made standard on all models
1984 Antilock brakes (ABS) installed
1987 Three-point seat belts included in rear centre seat
1991 Integrated booster cushion added for children
1992 Side impact structure installed five years before mandatory
1995 World's first Side Impact Air Bags introduced
2000 Whiplash Protection System introduced
2003 World’s first SUV with Rollover Protection System and Roll
Stability Control
Summary
•  Positioning maximizes the perceived value to
target customers by communicating a
competitive advantage
•  creates expectations
•  identifies target and non-target users
•  involves the entire marketing mix
•  maximizes the profitability of the product portfolio

M arketing rocks!
 Positioning: The 3 C’s
Customer

Capabilities
relevance

Competitive
û
This shouldBrand
drive everything
support differentiation
positioning

û û
“Dedicated to the second best advertising agency
in the whole world.

Whoever they might be.”

Al Ries and Jack Trout,

Positioning: the Battle for your Mind,1981
 Next Monday / Tuesday

•  Prepare Unilever’s Ice-Cream Business

•  Marketing performance measurement

•  Article: The Balanced Scorecard

•  Key Marketing Metrics – Chapter 5