Chapter 8
- 1. CHAPTER 8 DISCUSSION QUESTIONS 3) What is guerrilla marketing? 4) Why are guerrilla marketing strategies beneficial to small businesses? 3) Define "target market" & explain how small businesses can pinpoint their target markets. 4) What do most marketing experts contend is the greatest marketing mistake most small businesses make? 5) Define "demographics” & explain what you are the demographics of a craft beer drinker. 6) Define “market research” & state the objective of market research. 7) Explain what “branding” is. 8) What are the 4 major elements of a marketing strategy?
- 2. SHOULD A BRAND APPEAL TO EVERY TYPE OF CONSUMER?
- 3. TO BE SUCCESSFUL, SHOULD A BRAND APPEAL TO EVERYBODY? QuickTimeª and a decompressor are needed to see this picture. QuickTimeª and a decompressor are needed to see this picture. •85% OF BEER SOLD IN AMERICA IS LIGHT LAGER. •BEST SELLING BEER IS 60 •BUDWEISER IS A 5% ABV & MINUTE IPA. 11 IBU LIGHT AMERICAN- STYLE LAGER. •6% ABV & 60 IBU. •IT IS MADE WITH UP TO 30% •$8.99/6 PACK BOTTLES. RICE. •$5.99/6 PACK CANS.
- 4. IT DEPENDS ON HOW YOU DEFINE “SUCCESS.” -BUDWEISER, & MOST BIG BREWERIES, IS SUCCESSFUL IN SALES BUT THEY ARE NOT SUCCESSFUL IN CREATING A QUALITY PRODUCT. -DOGFISH HEAD, & MOST CRAFT BREWERIES, IS SUCCESSFUL IN CREATING A QUALITY PRODUCT BUT COMPARED TO BUDWEISER NOT IN SALES. -A SMALL BUSINESS SHOULD BE MORE CONCERNED WITH PROVIDING A QUALITY PRODUCT/SERVICE & STAYING TRUE TO THAT PRODUCT/SERVICE. -CREATE THE PERCEPTION THAT THERE IS NO OTHER COMPANY/PRODUCT ON THE MARKET LIKE YOURS.
- 5. BRANDING -THE EFFORTS INTENDED TO IDENTIFY THE GOODS & SERVICES OF ONE SELLER & TO DIFFERENTIATE THEM FROM THOSE OF OTHER SELLERS. -IT’S NOT ABOUT GETTING YOUR TARGET MARKET TO CHOOSE YOU OVER THE COMPETITION, BUT IT IS ABOUT GETTING YOUR PROSPECTS TO SEE YOU AS THE ONLY ONE THAT PROVIDES A SOLUTION TO THEIR PROBLEM. -SIMILAR TO BRANDING ON THE RANCH. -USED TO DIFFERENTIATE YOUR COMPANY (COW) FROM ALL OTHER COMPANIES (CATTLE). -USED BY CORPORATIONS TO CREATE UNIQUE & ATTRACTIVE PERSONALITIES FOR THEMSLEVES. -CORPORATIONS’ BRAND IDENTITIES ARE PERSONIFICATIONS OF WHO THEY ARE & WHERE THEY’VE COME FROM. -IT IS ABOUT CREATING & EVOLVING CUSTOMER PERCEPTIONS OF THEMSELVES. -ENABLES THEM TO CREATE INTELLECTUAL & EMOTIONAL BONDS WITH THE GROUPS THAT THEY DEPEND ON: -CUSTOMERSS & EMPLOYEES
- 6. BRAND DRIVERS -SLOGANS, LOGOS, SYMBOLS, MACOTS, CELEBRITY ENDORSEMENTS, ETC. TO REINFORCE “HUMAN QUALITIES.”
- 7. EFFECTIVE BRANDING WILL: -DELIVE A CLEAR MESSAGE. -CONFIRM YOUR CREDIBILITY. -CONNECT YOUR TARGET PROSPECTS EMOTIONALLY. -MOTIVATE THE BUYER.
- 8. WHO IS CURRENTLY THE BEST-PERCEIVED BEER BRAND AMONG U.S. ADULTS (21+) NATIONWIDE?
- 9. KEY INGREDIENTS TO CRAFT BEER SUCCESS
- 10. AN AUTHENTIC STORY -CRAFT BEER BRANDS HAVE AN AUTHENTIC STORY AT THE ROOT OF THEIR COMMUNICATION. -MORE IMPORTANTLY, THEY LIVE IT. -EMPLOYEES AREN’T JUST EMPLOYEES, THEY REPRESENT THE BRAND.
- 11. TAKE ADVANTAGE OF YOUR HOME BASE -SUCCESSFUL CRAFT BEER BRANDS FOCUS THEIR EFFORTS AROUND THEIR BREWERY WHERE THEIR STORY IS MORE MEANINGFUL TO CONSUMERS. -IT’S EASIER TO ACTIVATE A BRAND’S STORY IN A HOME MARKET: -IT’S REPEATED MORE OFTEN (BY BREWERY EMPLOYEES). -IT IS REINFORCED BY BREWERY TOURS. -CRAFT BREWERS ARE MORE PROFITABLE IF THEY SELL A HIGHER % OF THEIR BEER IN THEIR HOME MARKET. -EXPANSION IS NOT MADE UNTIL THERE IS SUFFICIENT CONSUMER DEMAND IN ADJACENT MARKETS.
- 12. CREATE CONVERSATION OPPORTUNITIES -CRAFT BEER BRANDS ARE BUILT ON CONVERSATIONS. ONE CONSUMER AT A TIME. -THE STORY & THE PASSION IN WHICH IT IS PRESENTED IS CRITICAL. -CRAFT BEER CONSUMERS RESPOND TO BRANDS THAT HAVE A DEEP PASSION FOR THEIR BUSINESS. -CONSUMER INTERACTIONS ARE BEST WHEN THEY ARE WITH THE BRAND’S “RELIGIOUS ZEALOT.” -JIM KOCH: SAM ADAMS -SAM CALIGIONE: DOGFISH HEAD -CONVERSATION OPPORTUNITIES: -BEER FESTIVALS -ON-PREMISE PROMOTIONS -OFF -PREMISE HAND-SELLS -SOCIAL MEDIA
- 13. HAVE FEET ON THE STREET -CRAFT BEER BRANDS NEED PEOPLE IN THE MARKET TO BUILD DISTRIBUTION & INTERACT WITH CONSUMERS. -REPRESENTATION IN THE MARKET ADDS TO BRAND AUTHENTICITY. -THE “FEET ON THE STREET” ARE THERE FOR SALES & MARKETING EXECUTION.
- 14. EXPLOIT THE POWER OF INFLUENCERS -THE ONLY CAFT BEER BRAND THAT ADVERTISES NATIONALLY IS SAM ADAMS. -MOST CRAFT BEER BRANDS RELY ON SOCIAL MEDIA & WORD OF MOUTH TO ADVERTISE THEIR BRAND. -INFLUENCER CONSUMERS ARE VIEWED AMONGST FRIENDS & FAMILY AS KNOWING THE TRENDS, WHAT’S NEW & EXCITING, & CREDIBLE. -WAYS TO REACH INFLUENCERS: -SAMPLING. -PRODUCT/BRAND EXPERIENCES (TOURS, FOOD & BEER PAIRING DINNERS, ETC.) -MAKING THEM FEEL THEY HAVE A SAY IN THE BRAND (MUG CLUBS)
- 15. ACTIVATE THE ICON -CRAFT BRANDS MUST BE CREATIVE & BRING THE SPIRIT OF THE BRAND TO LIFE. -A GREAT WAY FOR CRAFT BEER BRANDS TO DO THIS IS THROUGH BRANDED EVENT.
- 16. BRANDING SUMMARY -TO SUCCEED IN BRANDING YOU MUST UNDERSTAND THE NEEDS & WANTS OF YOUR CUSTOMERS & PROSPECTS. -YOUR BRAND RESIDES IN THE HEART & MINDS OF YOUR CUSTOMERS & PROSPECTS. -IT IS THE SUM TOTAL OF THEIR EXPERIENCES & PERCEPTIONS (SOME YOU CAN INFLUENCE, BUT SOME YOU CAN’T). -A STRONG BRAND IS INVALUABLE AS THE COMPETITION FOR PROSPECTS INTENSIFIES. -BRANDING IS A FOUNDATIONAL PIECE IN YOUR MARKETING COMMUNICATION.
- 18. MARKETING -THE ACTIVITY, SET OF INSTITUTIONS, & PROCESSES FOR CREATING, COMMUNICATING, DELIVERING, & EXCHANGING OFFERINGS THAT HAVE VALUE FOR CUSTOMERS, CLIENTS, PARTNERS, & SOCIETY AT LARGE. (AMERICAN MARKETING ASSOCIATION) -IT IS ABOUT FIGURING OUT WAYS TO DRUM UP SALES. 3 MAIN PURPOSES 1) BUILD AWARENESS. 2) BUILD ADOPTION. 3) BUILD LOYALTY.
- 19. BRAND LOYALTY -A CUSTOMER’S COMMITMENT TO REPURCHASE A COMPANY’S PRODUCT/SERVICE. -ACQUIRING A NEW CUSTOMER COSTS 5X MORE THAN KEEPING AN EXISTING CUSTOMER. FACTORS INFLUENCING BRAND LOYALTY • PERCEIVED VALUE • BRAND TRUST • SATISFACTION
- 20. MARKETING CRAFT BEER -CRAFT BEER BRANDS DON’T HAVE BIG ENOUGH MARKETING BUDGETS TO BUILD AWARENSS, ADOPTION, & LOYALTY THE TRADITIONAL WAY. -CRAFT BRANDS HAVE TO BE REMARKABLE* SO THAT CONSUMERS EXPERIMENT & RECOMMEND TO OTHERS (WORD OF MOUTH). *THE REMARKABLE NATURE NEEDS TO BE IN THE PRODUCT ITSELF, NOT THE MARKETING.
- 21. MARETING CONCEPT -ACHIEVING ORGANIZATIONAL GOALS DEPENDS ON KNOWING THE NEEDS & WANTS OF OF TARGET MARKETS AND DELIVERING THE DESIRED SATISFACTIONS. TARGET MARKET -”A GROUP OF CUSTOMERS WITH SIMILAR NEEDS THAT FORMS THE FOCUS OF A COMPANY’S MARKETING EFFORTS.” -IF YOU ATTEMPT TO REACH EVERYONE, YOU WILL END UP REACHING NO ONE. -MARKETING EFFORTS MUST BE PRECISELY FOCUSED ON THE GROUP(S) OF EXISTING & PROSPECTIVE CUSTOMERS WHO ARE MOST LIKELY TO BUY YOUR PRODUCTS/SERVICES.
- 22. DEMOGRAPHICS -THE STATISTICAL CHARACTERISTICS OF HUMAN POPULATIONS USED TO IDENTIFY MARKET SEGMENTS. -AGE -INCOME -SEX -EDUCATION -RACE -EMPLOYMENT PSYCHOGRAPHICS -VARIABLES CLASSIFYING POPULATION GROUPS ACCORDING TO PSYCHOLOGICAL VARIABLES. -INTERESTS -VALUES -LIFESTYLE
- 23. MARKETING IS ALSO ABOUT THE ART OF PERSUASION
- 24. Yawning is a surprisingly powerful act. Just by reading the two yawns in the previous two sentences--and the two additional yawns in this sentence--a good number of you will probably yawn within the next few minutes. Even as I'm writing this I've yawned twice. If you're reading this in a public place, and you've just yawned, chances are that a good proportion of everyone who saw you yawn is now yawning too, and a good proportion of the people watching the people who watched you yawn are now yawning as well, and on and on, in a ever-widening, yawning circle. Yawning is incredibly contagious. I made some of you reading this yawn simply by writing the word "yawn". The people who yawned when they saw you yawn, meanwhile, were infected by the sight of you yawning-- which is a second kind of contagion. They might even have yawned if they only heard you yawn, because yawning is also aurally contagious: if you play an audio-tape of a yawn to blind people, they'll yawn too. And finally, if you yawned as you read this, did the thought cross your mind-- however unconsciously and fleetingly--that you might be tired? I suspect that for some of you it did, which means that yawns can also be emotionally contagious. Simply by writing the word, I can plant a feeling in your mind.
- 25. -THE TRUE ESSENCE OF MARKETING IS PERSUASION. -THE ABILITY TO PERSUADE THE CUSTOMER INTO: 3) PARTING WITH ONE OF THEIR MOST PRIZED POSSESSIONS ($) 4) PURCHASING A PRODUCT/SERVICE THAT THEY MAY NOT KNOW THEY WANT. -MARKETING = SELLING & IF YOU CAN’T PERSUADE THEN YOU CAN’T SELL. 2 KEYS TO PERSUASION • SHOES: WALK IN YOUR CUSTOMER’S SHOES • EYES: SEE THROUGH YOUR CUSTOMER’S EYES.
- 26. THE MARKETING MIX (4 P’S) PRODUCT PLACE PRICE PROMOTION -ALL FOUR P’S MUST REINFORCE THE IMAGE OF THE PRODUCT/SERVICE THE COMPANY REPRESENTS TO THE POTENTIAL CUSTOMER.
- 27. PRODUCT -ANY ITEM OR SERVICE THAT SATISFIES THE NEED OF A CUSTOMER.
- 28. PLACE -THE METHOD OF DISTRIBUTION OF A PRODUCT/SERVICE FROM THE MANUFACTURER TO THE CONSUMER. -4 COMMON CHANNELS OF DISTRIBUTION FOR CONSUMER GOODS 7) MANUFACTURER TO CONSUMER 8) MANUFACTURER TO RETAILER TO CONSUMER 9) MANUFACTURER TO WHOLESALER TO RETAILER TO CONSUMER* 10) MANUFACTURER TO WHOLESALER TO WHOLESALER TO CONSUMER *MOST COMMON CHANNEL OF DISTRIBUTION
- 29. PRICE -KEY FACTOR IN CUSTOMER’S DECISION TO BUY. -PRICE FOR A PRODUCT/SERVICE DEPENDS ON 3 FACTORS: 5) A COMPANY’S COST STRUCTURE 6) AN ASSESSMENT OF WHAT THE MARKET WILL BEAR 7) THE DESIRED IMAGE THE COMPANY WANTS TO CREATE IN ITS CUSTOMERS’ MINDS
- 30. PROMOTION -INVOLVES BOTH ADVERTISING & PERSONAL SELLING. ADVERTISING: -COMMUNICATES TO CUSTOMERS THE BENEFITS OF A PRODUCT/SERVICE THROUGH SOME MASS MEDIUM (TV, PRINT, RADIO, WEB). PERSONAL SELLING: -THE ART OF PERSUASIVE SALES ON A ONE-TO-ONE BASIS.
- 31. WHAT IS GUERRILLA MARKETING?
- 32. GUERRILLA MARKETING -”UNCONVENTIONAL, LOW-COST, CREATIVE MARKETING STRATEGIES.” 4 OBJECTIVES: • PINPOINT SPECIFIC TARGET MARKETS. • DETERMINE CUSTOMER NEEDS & WANTS. • ANALYZE THE FIRM’S COMPETITIVE ADVANTAGES. • CREATE A MARKETING MIX THAT MEETS CUSTOMER NEEDS & WANTS. -GUERRILLA MARKETING ATTEMPTS TO USE THE ELEMENT OF SURPRISE & MARKET TO CUSTOMERS WITHOUT CUSTOMERS REALIZING THEY ARE BEING MARKETED TO. (SUBLIMINAL MARKETING).
- 33. QuickTimeª and a decompressor are needed to see this picture. SOCIAL MEDIA MARKETING QuickTimeª and a decompressor are needed to see this picture.
- 34. SOCIAL MEDIA MARKETING “THE PROCESS OF GAINING ATTENTION THROUGH SOCIAL MEDIA SITES.” -IT’S ABOUT FINDING OPPORTUNITIES TO HAVE HONEST INTERACTION WITH YOUR CUSTOMERS & PROSPECTS. -SOCIAL MEDIA TOOLS ALLOW YOU TO ENGAGE WITH YOUR CUSTOMERS BUT ALSO YOUR CUSTOMERS TO CONNECT WITH EACH OTHER. -THIS MEANS YOUR CUSTOMERS BECOME AMBASSADORS FOR YOUR BRAND. -YOUR SOCIAL MEDIA MARKETING SHOULD GENERATE UNIQUE & ENTICING CONTENT FOR YOUR CUSTOMERS & THE PROSPECTS YOU HOPE TO ATTRACT.
- 35. -THE CONGLOMERATE BREWERIES SPEND MORE THAN $1.5 BILLION/YEAR ON ADVERTISING. QuickTimeª and a decompressor QuickTimeª and a are needed to see this picture. decompressor are needed to see this picture. -SOCIAL MEDIA ALLOWS SMALL BUSINESSES TO REACH A LOT OF PEOPLE WITHPOUT SPENDING A LOT OF MONEY.
- 36. SOCIAL MEDIA MARKETING TECHNIQUES
- 37. CONSUMER’S ONLINE BRAND RELATED ACTIVITIES (COBRAs) -PROVIDING YOUR CUSTOMERS A WAY TO SHOW THEMSELVES USING YOUR PRODUCT/SERVICE THROUGH SOCIAL MEDIA. QuickTimeª and a decompressor are needed to see this picture. QuickTimeª and a decompressor are needed to see this picture. QuickTimeª and a decompressor are needed to see this picture.
- 38. QuickTimeª and a decompressor are needed to see this picture.
- 39. ELECTRONIC WORD OF MOUTH (eWOM) -WAYS FOR CUSTOMERS TO UPLOAD ELECTRONIC RECOMMENDATIONS & APPRAISALS OF COMPANIES, PRODUCTS, & SERVICES. -eWOM IN A CONVENIENT MANNER TO HAVE A PRODUCT PROMOTED VIS CONSUMER-TO-CONSUMER INTERACTIONS. QuickTimeª and a decompressor are needed to see this picture.
- 41. DOGFISH HEAD & THE AMERICAN RED CROSS #GETTINGSLIZZERD FUNDRAISING CAMPAIGN QuickTimeª and a decompressor are needed to see this picture. QuickTimeª and a decompressor are needed to see this picture.