HS285: Marketing ManagementClass FourJune 6, 2013

Beth Goldstein

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• Marketing Director Interview• The Importance of

Innovation• Canadian Blood Services

Case• YOUR Elevator Pitches

Today’s Class

Click to edit Master title styleValue Proposition

Click to edit Master title style Marketing Director Interview

Due: Thurs, June 27 via LatteAssignment on Latte

15% of your grade. Explain what you learned about the field of marketing. Must reflect insight and analysis about the interview.

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How and why did you begin your marketing career?How is your success measured?Do you have a marketing plan in place? If not, how do you plan for the next 1 to 3 years?Do you tend to rely on your gut to make marketing/growth decisions or conduct research? How has this impacted your success?How do you identify new opportunities? What marketing activities have you recently implemented to seize these opportunities?

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How do you identify changing customer (target market) needs? How has marketing changed for your specific organization in the past five year? What do you think about the role of branding as it relates to your specific company/organization?What is the greatest challenge that you faced specifically related to your organization’s markets, products/services or competition? What is the most important lesson learned from your experience in marketing?

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Steve Jobs Introduces the iPhone in 2007 at MacWorld

How Do You Introduce Innovation?

Click to edit Master title styleInnovation & Differentiation are Paramount to Success

Who – specific customersWhat – unique productsWhere – specific market(s)When – right timingWhy – right messageHow – business model that ties it all together

Click to edit Master title styleLessons from the Tablet World

Click to edit Master title styleApple – one of the first tablets…

The Newton – an extension of “pen computing” devices

Considered a spectacular failure… ’93-’98

Click to edit Master title styleWhy did the Newton fail?

It was cool … but didn’t have a clear value proposition

Too many features = too complexLike a computer, but not fully functional

Some features were before its time:“Communication” tool – before widely available wireless infrastructure

Click to edit Master title styleMicrosoft in 2002 – what positioning?

Do they target as aREVOLUTIONARYnew experience…

Pursue early adopters, unique new uses?

… or EVOLUTIONARY?Enhanced laptop for specificuser segments

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Positioned as an upgraded PC laptopIdeal user: someone who spends a lot of time in meetings.

Click to edit Master title style2010 – iPad positioned as DIFFERENT

The web in your hands…

This is NOT anenhanced laptop

Click to edit Master title stylePower of simplicity

Source: The Peculiar Logic of Remote Control Design, Robert Fabricant - November 2, 2009

Click to edit Master title stylePriced to value proposition

Priced it at $499 in line with perceivedvalue proposition

Sales Results300,000 - first weekend3 million - 80 days12 million apps in 1st mo.>100 Million sold by end of 2012

Click to edit Master title styleLessons learned

Cool product ≠ automatic successNeed to understand marketMust have appropriate value proposition

Consider what else needs to happenTimingSupporting ecosystem

Respond to market cues

Click to edit Master title styleKeys to differentiation

Right marketWho to target, and who NOT to target

What to include, and what NOT to include

Compelling value propositionWhat need does it solve

Focused on competitive driversWhat else needs to happen to deliver value?

Overcoming barriers… Creating your own

Click to edit Master title styleSubstitutes = Competition

Holy Cow….I’ve been cloned!!!!

Click to edit Master title styleHVAC vs. Swimming Pool

What’s the Value

Proposition?

Click to edit Master title styleYour Substitutes

Your Top Value… What other companies provide this value…that don’t look like you?

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Click to edit Master title styleCanadian Blood Services (CBS)

Situation: How many of you have donated?What’s Causing the Increased demand?

Decrease wait time in hospitalsNew operating proceduresAging populationPeak demand = Low supply time

Solution:Increase # donors Increase # donations/yr

Click to edit Master title styleCanadian Blood Services

What are the objectives of CBS?Distance from tainted blood scandalCreate a plan to secure 1M blood-unit demandIncrease number of donors from 4 to 5 percentIncrease donation retention stats (now 51%)

Click to edit Master title styleSWOT Analysis: Strengths

Mobile clinics & 41 sites to reach donorsGrowth in units collectedHigh quality product – only voluntaryNegative sentiment seems to be recedingMarket research done on donor behavior>80% trust CBSGovernment funded

Click to edit Master title styleSWOT Analysis: Weaknesses

Blood contamination historyNo incentives to donateNo sustained growth in active donors (3%)

1.2 million total (10% population)New donor retention rate is 51%

Click to edit Master title styleSWOT Analysis: Opportunities

Media appeal had an impact – donors receptive to marketingAttractive segments have been identifiedYoung demographics more likely to donateAltruistic donors existPotential seems evident: 5% donor rate (vs. 4%) in similar western countries

Click to edit Master title styleSWOT Analysis: Threats

Demand increasing at 2%/yr – twice as fast as population growth

Increase due to aging populationIncrease due to decrease wait time in hospitals

Only 40% population eligible and active donors have droppedHurdles to getting new donors – address fear of needs, lack of time and awarenessSpikes in need occur during drops in donations

Click to edit Master title styleDecision-making process

1. Problem recognition2. Search for potential locations3. Subconscious (?) evaluation of

alternatives4. Confirm how, where, when5. Reflect on decision following donation

Click to edit Master title styleCanadian Blood Services (CBS)

How did they segment the marketObservational research interviews at clinicsFocus group with donorsCBS recruiting staffMarket research firm survey

Click to edit Master title styleWhy do consumers donate?

AltruismAwareness of needFamily or friend in needSocial/personal benefit

What barriers existFear of needlesLack of time, convenience, access

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1. Patients come first (family/friend in need)2. Community givers (practical altruism)3. Karma is king (true altruism/humanitarian)4. Life Savers (blood shortage)5. Healthy Souls (I’m the right person)6. Social Clubbers (group decisions)7. Personal Gratifiers (Proud to be a donor)

Click to edit Master title styleWho Would YOU Target?Altruism

Self-Fulfillment

Ease & Convenience

Habituation

Click to edit Master title styleHow do you attract new/more donors?

MessageSafety & confidence in supply

Catch a wide net with limited budgetTraditional media?Cross promotion (businesses/organizations)Social media?

Click to edit Master title styleIncrease Repeat Donors

All depends on first experienceScreeningWait timesNeedle insertionComfortRecovery experienceFollow-upRescheduling of next donation

Click to edit Master title styleWhat Happened

Click to edit Master title styleTV Ad’s

Click to edit Master title styleYoung Blood for Life

Click to edit Master title styleSocial Media

Click to edit Master title styleCBS

Click to edit Master title styleCBS

Click to edit Master title styleBreak Time

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How Do You Introduce Yourself?

What’s Your BusinessElevator Pitch?

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Remember: The Adult Attention

Span is….

15 to 30 seconds

Click to edit Master title styleThe Value of A SOLID Pitch

Reciprocal-give & takeLearn about othersPurposefulDevelop trust

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• Appropriate gestures help explain

• Demonstrate your passion

• Channel nervous energy

• Stand with confidence and ease

Body Language

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• Pacing• Inflection• Articulation• Volume

Voice

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• Impacts credibility• How confident you appear• Not a staring contest• Cultural differences

If you can’t “look someone in the eye” it may hurt your chances for success!

Eye Contact

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• Excitement

• Interest

• Sincerity

• Boredom

Facial Expressions

Click to edit Master title stylePower Posing – Increases Confidence

Increases testosterone levels Arms in the airFeet up on your deskStand on tiptoes with arms up

50Source: Amy Cuddy, Asst. Professor, Harvard Business School.

YES!!!!WOMEN HAVE

TESTOSTERONE!

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51

How Do You Introduce

YOUR business and prevent this reaction?

Click to edit Master title style10 Commandments: Thou Shall…1. Address the

audience’s needs2. Make strong eye

contact3. Be confident 4. Be clear and

articulate5. Pace yourself

6. Speak at an appropriate volume

7. Watch body language

8. Show sincerity 9. Be easily

approachable10. Practice,

practice, practice!!

Click to edit Master title styleYour Elevator Pitch

Your name and companyA brief but compelling statement about

your product’s or service’s value or benefit as it relates to this person

A concise description of your productA statement that reinforces your

credibility – offers proof of your unique expertise OR

A statement about what makes your product or service unique

Your personal energy and passion

Click to edit Master title styleTeams: Practice Your Pitches FIRST

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What did you learn?

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Click to edit Master title styleNow – Let’s Present

Click to edit Master title styleNext Class Assignment: June 11

Book: Lucky By Design: Chapters 15 – 16 Case: Marketing Planning at Just Us! Cafes Worksheets Due:

Worksheet 15.1: Industry Research at Your FingertipsIn Class Activity: Review of Business/Organization Challenges