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ENTR/BAUD 351-050:Entrepreneurial Marketing
Week 1: Entrepreneurial Marketing, the Ultimate Challenge
Week 5: Branding, Pricing & Distribution
What is branding?
Walter LandorLandor Associates
“Products are made in the factory, but brands are created in the mind.”
A brand is not just.. LogoNameSlogan/TaglineColor PaletteTypographyDesign Guidelines
If a brand is essentially based on customer and public perceptions,
then branding is the process of shaping those perceptions.
Successful brands stand for something in the minds of their
customers. There is a differentiating idea at their core.
FOR EXAMPLE...
SAFETY LUXURY PERFORMANCE
John Hegarty
“In today’s world, people want to buy the product (or service) that says the right thing about them.”
You can’t build a memorable brand without understanding what is
valuable to your customers.
What do these brands stand for?
What are some of your favorite brands and why do you like them?
DISCUSS IN YOUR GROUP:
What are some of the attributes that our company stands for? What
brands do we want to be like?
Consumers have emotional connections to brands beyond
the rational benefits.
So how do you get customers to have an emotional
connection with your brand?
Seth GodinAll Marketers Tell Stories
“No one buys a feature. They buy a story.”
Why are stories effective?
Stories are universal.Stories are contagious.
Good stories stick.
What can we learn about storytelling from the
Budweiser puppy ad?
What makes a story worth telling?
Tell a story about connections and people coming together.
Share customer stories.
“Airbnb aims to connect millions of people in real life all over the world, through a community marketplace – so that you can Belong Anywhere.”
Airbnb website
OkCupid blog
Humans of New York
William Feather
“The philosophy behind much advertising is based on the old observation that every man is really two men - the man he is and
the man he wants to be.”
Vanderbilt MBA billboard
LEGO ad
TOMS “One Day Without Shoes” social media campaign
Dove “Real Beauty” ad campaign
Keep this in mind as we start talking about various marketing channels!
DISCUSS IN YOUR GROUP:
What are some of the ways we could utilize storytelling
in our marketing?
10 MINUTE BREAK
Does price matter in marketing (or to the
marketer?)
How much is this worth?How do you know?
Is value real?
The typical textbook mindset is that pricing is determined by:
● Fixed and variable costs● Competition● Company objectives● Proposed positioning strategies● Target group and willingness to pay
This barely touches on the audience.“Target group and willingness to pay.”
But the audience is so much more important than that.
Throughout this discussion of pricing and strategies, remember the audience.
The two most general pricing strategies:
Cost based vs. Value based
Cost Based Pricing:1. Find your break even point2. Decide on a desired profit margin3. Price accordingly
This is important. Consumers tend to compare your product to what they think a “fair” cost
strategy would be.
Value Based Pricing:Determine the value the consumer gets from your product and take a
percentage of that.
Hotel Dupont Green Room
Outback Steakhouse
As a small business, which one would you rather be?
Some more complex pricing strategies.
With examples!
Penetration Pricing:Temporarily lowering prices
to penetrate a market.
Notable Example:
Zenith Management Consulting
“Comparisons of the price of the other items in each section show that only 15% to 20% of the items Wal-Mart sells are actually priced
lower than competing retailers… This is Wal-Mart’s ‘price spin’ -- creating a strong
impression of lower prices.”
Loss Leader:A product intentionally sold at a
loss as to gain a customer for upsells, options, or replacements.
Notable Example: Printers, Razors
Skimming Pricing:Pricing high initially, the stepping
down prices over time.
Notable Examples:Gaming Consoles
Competition Pricing (Neutral Pricing):Price based upon your competitors.
Notable Examples:Freelancers. Commodity goods. Grocery.
Note that even small difference can be important.
So far we’ve been talking about one product or price vs. the competition. What about
having multiple offers?
Give Options(But not too many)
Three Scenarios:1. $492. $49 or $79 or $99 3. $49 or $79 or $99 or $149 or $250 or $500
Price Anchoring
Bundling
Bonus Sandwich
Is a pricing decision final?
The moral of the story:Pick a price. Gather data.
Repeat.
DISCUSS IN YOUR GROUP:
What pricing strategies do you think would work for
your business?
Distribution is the answer to “How do I get paid?”
Distribution Channels and Sales/Marketing Channels:
There’s a (blurry) line.
Products tend to have long channel paths while services
tend to have short ones.
Direct sales include:1. Your own salespeople2. Sales from your website3. Your affiliates4. Your storefronts5. Catalog, direct mailing
Some Pros:You have complete control
No middleman
Some Cons:Expensive people costs
You have to build your own network
Distribution includes:1. Wholesalers2. Warehouses3. Retailers4. Value Added Retailers 5. Fulfillment houses6. White labels7. etc.
Some Pros:You don’t need a sales force
Leverage the partner’s network
Some Cons:Expensive % from your profits
Risk in losing a partner
Distribution Intensity:1. Intensive (Milk)2. Selective (iPhone)3. Exclusive (Fashion Brands)
One challenge of large sales areas is fulfillment.
Convenience is worth $$$.
Your job as a marketer is to find the most efficient,
unexploited channels.
xxx
Distribution for the small business
Fulfillment By Amazon (FBA)
Digital app product?A “marketplace” is pertinent to you.
Software product? (SAAS?)What other software can
you integrate with?
Create your own channel!
When you sell an intangible good (service, info product, etc.) distribution channels blend into
marketing channels.
DISCUSS IN YOUR GROUP:
What distribution strategy will you use to get your product
or service to customers?
Choose a brand that you think uses storytelling effectively. In one paragraph, write about a campaign of theirs, how the story is told via marketing channels, and how it conveys and reinforces the brand’s
values. Hand in by 5pm next Monday (3/12).
Read Traction, chapters 1-5.
This week’s assignments:
