Analysis on segmentation targeting and positioning (STP)
I have learned many new things about developing marketing strategies from chapter 2 . But still something was not clear in my mind and textbook information was not sufficient. So, I wanted to explore it much more, and read some article that is implemented in real life.
The article is about a major pharmaceutical firm search positioning and communicating
strategy which targets patients who would most benefit from a new drug therapy. So, they need clear, accurate, and actionable advertising campaign.
The firm collaborated to Knowledge Networks (KN) – the research company that delivers affordable, statistically valid online research through Knowledge Panel SM – to conduct a segmentation. KN’s design and approach defined three clearly elements.
1.Use of workshop and shareholder`s business needs
KN recognizes that marketing investment and communication decision are collaborative work. Therefore 1st step was to make a core project team. This team reviewed several key elements, including;
-who would use the product and targeting
-the distinct roles and responsibilities in core project team
-a formal review of info, and its survey, analytic plan
-segmentation solutions, senior management, PR, ad agency etc.
2. Getting Science right
KN used a technique that would support “visible” elements including demographics and other criteria used to reach targets with the intangible needs such as needs, attitudes, and concerns. To distinguish consumer needs and enhance the quality they highlighted the benefit of treatments( no upset stomach, fast acting, fewer doses). In addition, KN has provided more information such as intermediate health needs, lifestyle, and beauty advices. This resulted groups of consumers who have same needs, attitudes and benefits, yet within different between segments. The segments were richer, truer to life and easier to find.
3 . Choosing a representative data source.
It`s essential to choose right representative data source to increase firm`s opportunities. KN is the only nationally representative internet panel. Knowledge Networks helped its pharmaceutical partner attain actionable results. KN attained the right mix of input and quality data by providing a rich understanding of behaviors and emotional elements.
My opinion
As a consequence of successful STP , a firm can increase its strategic opportunities. I think this pharmaceutical firm could determine their segmentation and targets successfully. And know they should consider market positioning well. They should target several group people who are difficult to reach online, but who could pronounce treatment needs.
Reference:
http://www.marketingpower.com/content/Knowledge%20Networks%20Segmentation%20Case%20Study%20June%202007.pdf
Mar 22, 2008
20820007 Entry2 Bayarmaa
The Problems with Business as UsualAuthor who wrote this article is Keith McFarland a two time technology CEO also founder of McFarland Strategy Partners.
Everyone wants to succeed in their business but sometimes it goes far from our thoughts to wrong direction. When I read this article I feel something different from what I know and what I thought. To lead a company is not only making profit but also making and renewing it regularly by new strategies in order to keep it ceaseless. I understand from his examples that when people get into the routine their mind shift to neutral- they become less competitive and less adaptable which cause to loose in the business. There are 3 important questions he suggesting to evaluate your companies and avoid from hidden danger- routine. Maybe I can also apply this question strategy to my real life later. I hope it will probably work. Let’s look it together what was it !
When he was climbing near his home with his 2 friends who are good at climbing, hurt. He tried to see the reason: misunderstanding of climbers and belayer the person who holds the belay which controls the safety rope. “On belay” means that belayer can catch others in the event of a fall. “Off belay” is opposite. Injured friends believed that it was in “On belay” when he wasn’t.
Similarly, in the business when the environment of the company changes externally and internally, routines that causes problems tend to accumulate. For example company that one of the first in its industry segments to move production to China. It thinks that Chinese production is the only solution to all its problems but real was European customers. They plan to stop purchasing Chinese made products because of its company’s heavy use of coal for energy that harmful for ecology. European customers are against ecological pollution. Company thought that it was “On belay”. In the result they were the out of game.
What is the solution for our routine that causes problems? If we can’t change our thoughts according to external and internal environment we can’t succeed in our business. Smart leaders know how to manage their business appropriately. Let’s see the Talking strategy by Keith McFarland:
One way to eliminate the routine is regularly talking about new strategies. His company always makes few hours discussion of strategy together to adapt strategy all level employees and discuss how to avoid of routines. To experience it on your own company following questions will help you:
In the past 90 days, what were our three most important strategic accomplishments?
Talk only best strategic accomplishment that made company more successful.
In the 90 days, what were our three most important strategic ways we fell short of our potential?
Talk about aims that company should achieve but it couldn’t.
In the past 90 days, what are the three most important things we have learned about our strategy?
Talk about what was the advantage from the strategy.
Next time he will use not “on belay” and “off belay” but “safe” or “die”. You can also try finding routine and changing them. It can make you difference.
Reference:
http://www.businessweek.com/smallbiz/content/mar2008/sb20080321_755719.htm?chan=top+news_top+news+index_small+business
Mar 21, 2008
20500356 yang jinbyeong
How could Orion sustain their 1st mover at Choco-pie?
It was year 1974 that Orion made a product choco-pie. There wasn’t the snack like it, so orion became to open new market with choco-pie. They were 1st mover of the market. The market growed so fast, and so did the company. They monopolized the market, there was no competition, Orion had so strong identity with Choco-pie.(people usually reminded Orion’s when they heard Choco-pie).
But a competitor dived into the market. Lotte started to make cacao-pie, which is too similar to distinguish with choco-pie. Orion claimed them to the court, but they lose. Choco-pie became the common noun of that kind of product. Then any compony became able to make it if they wanted, and they did- Haitai in 1986, Crown in 1989. there were so many kinds of choco-pie, and consumers get confused.
*we call those kinds of product(lotte choco-pie) as ‘me-too product’. Sometimes me-too product destroy the 1st mover, by leaping or by destroy the whole market image. We can see leaping in case of pepsi, and second one can be seen in case of ‘비락식혜’. 비락식혜 was the 1st mover of traditional beverage market and once became a trend, but they couldn’t sustain the market, because so many me-too product appeared and spoil the unique image of that kind of beverage.
Orion says that they overcame the crisis by 2 stratage. One is to make brand-image. They connected concept ‘정’ with the product(‘정’ had many concept about feeling, like love ,sympathy communicate, which touched consumer’s heart. They made persuasive public perception about their choco-pie. That made their product unique, and Orion could sustain their 1st mover advantage in korea. Second is to go abraad. They made new market on Russia, china and Vietnam, and there they became 1st mover. Now orion has 73% of market share over the world.I think there are additional thing that Orion could keep their position. is the quality. Many companies make choco-pie, but they targets on the low-price market only. I think it is because they cannot catch up the quality and unique flavor of Orion. Lotte Chocopie is too sweet, crown’s is too easily crumble. I think Orion’s tech to make best quality product make it can be.
It was year 1974 that Orion made a product choco-pie. There wasn’t the snack like it, so orion became to open new market with choco-pie. They were 1st mover of the market. The market growed so fast, and so did the company. They monopolized the market, there was no competition, Orion had so strong identity with Choco-pie.(people usually reminded Orion’s when they heard Choco-pie).
But a competitor dived into the market. Lotte started to make cacao-pie, which is too similar to distinguish with choco-pie. Orion claimed them to the court, but they lose. Choco-pie became the common noun of that kind of product. Then any compony became able to make it if they wanted, and they did- Haitai in 1986, Crown in 1989. there were so many kinds of choco-pie, and consumers get confused.
*we call those kinds of product(lotte choco-pie) as ‘me-too product’. Sometimes me-too product destroy the 1st mover, by leaping or by destroy the whole market image. We can see leaping in case of pepsi, and second one can be seen in case of ‘비락식혜’. 비락식혜 was the 1st mover of traditional beverage market and once became a trend, but they couldn’t sustain the market, because so many me-too product appeared and spoil the unique image of that kind of beverage.
Orion says that they overcame the crisis by 2 stratage. One is to make brand-image. They connected concept ‘정’ with the product(‘정’ had many concept about feeling, like love ,sympathy communicate, which touched consumer’s heart. They made persuasive public perception about their choco-pie. That made their product unique, and Orion could sustain their 1st mover advantage in korea. Second is to go abraad. They made new market on Russia, china and Vietnam, and there they became 1st mover. Now orion has 73% of market share over the world.I think there are additional thing that Orion could keep their position. is the quality. Many companies make choco-pie, but they targets on the low-price market only. I think it is because they cannot catch up the quality and unique flavor of Orion. Lotte Chocopie is too sweet, crown’s is too easily crumble. I think Orion’s tech to make best quality product make it can be.
20501005 - Entry 2
Paul Kim ( 20501005 ) - Entry 2Have you heard of the hot dog professor?
When I saw the article about Hot Dog University in Milwaukee, I thought “oh what kind of stupid article is it?” Same as you guys, I’ve never heard about that kind of silly university. However, this is true.
Although, it might look a little bit stupid, we can learn many things from this article as students studying marketing management.
The founder of Hot Dog university is a man named Mark Reitman. He thinks himself PhD and professor of hot dogs.
His lecture would be summarized in several points. He focuses on some basic facts in marketing that we tend to neglect. These are his points.
1. Find a prime location
2. Keep your menu simple
3. Find ways to advertise for free
4. Put on a good show
5. Appeal to the senses
6. Pay attention to industry trends
It looks simple yet it is very important. We need to make these facts balanced.
I think this article is especially meaningful to us who have never tried our own businesses. We learn knowledge not only from our books but also from our experience. Since, my dream is to be a successful owner of an Italian restaurant, I am very interested in these points. Even though I have learned about 4Ps, STP and so on from my book, I have no experience in real marketing and business field. If we look at the assignments that Prof. Lee gave us, we can know what he is trying to tell us. He might think that the most important to know about marketing is to experience that!! From our real experience, we can learn many things that can’t be obtained from reading major books. I guess that is why Prof. Lee gave us lots of real making assignment.
Mar 19, 2008
2. The Era of Superpremium Water
Original ArticleSummary
Florida businessman Jeff Moats plans to sell a superpremium water brand, Equa in luxurious restaurants. His marketing plan is to emphasize on purity. They said “Equa is from Amazon rainforest. Amazon rainforest is probably the last place in Earth that holds boundless mystery and mystique.”
Looking around what’s going on here
Once I had an opportunity to have a meal in luxurious restaurant in Seoul. When I sat down, waiter came and he handed over water list. I was surprised seeing menu that is only for the water. On the list, there were various premium water brands from Norway, France. He even explained the tastes of water. The price of a glass of water is from 6,500 to 10,000 won. Later, I noticed he is water sommelier who evaluates the taste of various waters and recommends for customer. ‘Water Café’ that sells professionally only water is booming. Why is high premium water brand getting so popular.
Why is high premium water brand getting popular?
In my opinion, the reason why people are finding finest water brand might be mainly three things, growing awareness of environment, well-being, people’s purchasing power. They learned how harmful polluted water could be it but they don’t want to be harmed by that. Therefore, they are finding absolutely pure water. Increasing the number of people who have purchasing power is one of the factors. I believe those three things accelerate the demands of premium water brand.
The way of winning in water business
As I mentioned before, people expect absolute purity from the premium water. In this sense, Equa focuses on just purity. They emphasize on they made Equa with the water form the Amazon rainforest where people feel exotic and mysterious and might be pure. While the most dominant competitor, Norwegian brand Voss is manufacturing their water from Europe, producing water from Amazon could be regarded as new approach. To establish high quality water brand, design of bottle is critical as well. Equa’s bottle doesn’t have a lot of detail, it simple and just looks like rain droplets. You probably feel comfortable seeing Equa's bottle because there are not many letters, colors or pictures. Again, emphasize on purity. Hence, success would depense on how well they deliver the purity of their product to their target customers through advertisement and promotion.
Florida businessman Jeff Moats plans to sell a superpremium water brand, Equa in luxurious restaurants. His marketing plan is to emphasize on purity. They said “Equa is from Amazon rainforest. Amazon rainforest is probably the last place in Earth that holds boundless mystery and mystique.”
Looking around what’s going on here
Once I had an opportunity to have a meal in luxurious restaurant in Seoul. When I sat down, waiter came and he handed over water list. I was surprised seeing menu that is only for the water. On the list, there were various premium water brands from Norway, France. He even explained the tastes of water. The price of a glass of water is from 6,500 to 10,000 won. Later, I noticed he is water sommelier who evaluates the taste of various waters and recommends for customer. ‘Water Café’ that sells professionally only water is booming. Why is high premium water brand getting so popular.
Why is high premium water brand getting popular?
In my opinion, the reason why people are finding finest water brand might be mainly three things, growing awareness of environment, well-being, people’s purchasing power. They learned how harmful polluted water could be it but they don’t want to be harmed by that. Therefore, they are finding absolutely pure water. Increasing the number of people who have purchasing power is one of the factors. I believe those three things accelerate the demands of premium water brand.
The way of winning in water business
As I mentioned before, people expect absolute purity from the premium water. In this sense, Equa focuses on just purity. They emphasize on they made Equa with the water form the Amazon rainforest where people feel exotic and mysterious and might be pure. While the most dominant competitor, Norwegian brand Voss is manufacturing their water from Europe, producing water from Amazon could be regarded as new approach. To establish high quality water brand, design of bottle is critical as well. Equa’s bottle doesn’t have a lot of detail, it simple and just looks like rain droplets. You probably feel comfortable seeing Equa's bottle because there are not many letters, colors or pictures. Again, emphasize on purity. Hence, success would depense on how well they deliver the purity of their product to their target customers through advertisement and promotion.
Student ID : 20501034
#Reference
Business week
Chosun Ilbo
Mar 18, 2008
20400442-Entry 2
Market DevelopmentHyundai's trucks, buses gaining ground in Russia.
The article for this week is about the market development of Hyundai in Russia. The article states that as the Russian economy is booming with a constant increase of oil prices and an inflow of oil money, mid- and large-sized commercial vehicles are needed more and more. In fact, Hyundai already sold 1,955 commercial vehicles in the Jan-Feb period, which is 136% higher rate from a year ago.
In chapter 2 of our textbook states that in order for a firm to grow, it has mainly 4 choices that it can make; product development, market development, market penetration, diversification.
When a firm targets existing market with a new product, it's called product development. Similarly, market development is targeting new market with existing product. It can also find a way to sell more products to a current market (market penetration), or exploit new market with a new product (diversification).
This article clearly shows how hyundai is trying to grow using market developing strategy.
Hyundai saw a growing need for mid- and large-sized commercial vehicles in Russia. Wise marketers of Hyundai decide to exploit new Russian market with already existing product, in this case, vehicles with which Hyundai is famouse for the superior quality.
I still remember when I was in Thailand for my Junier-High. My house was in 30 minute-distance from the main city, there was a huge container warehouse near my home. I could easily saw a couple of large commercial vehicles everyday. Everything I can remember thinking about those big trucks is that they were Benz'. I hope Hyundai do same thing in Russia. There still are many challenges to be successfully win for marketers of Hyundai. I pray that careful researches about Russian economy and it's international business conditions will be made to make big success in Russia.
Referrnece: www.koreaherald.co.kr/
2008.03.18 - by By Jin Hyun-joo
"Hyundai's trucks, buses gaining ground in Russia"
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