Grateful 7 speech thanking everyone that has helped.pdf
! Customer driven marketing 151204
1. November 2015 Dr. Ute Hillmer
ACustomer Driven Marketing
Strategy: Creating and capturing
CUSTOMER VALUE in an
Online/Offline World
“Ourageofanxietyistheresultof
doingtodaysjobswithyesterdays
technology“
M.McLuhan
2. November 2015 Dr. Ute Hillmer
WHO is Dr. Ute
Hillmer? anexpertinpositioningandpromotingtechnology
products,withacarvingforinnovativeproductsthat
arenotself-explaining.
Withsuchproducts,humanbehaviorisoftenoutsidethe
boundariesofrationality-despiteitseconomiccontext.
Buyingbehaviorisheretypicallyaresultofsocial,cognitive
andemotionalfactors,alongwiththeeconomicones.
3. November 2015 Dr. Ute Hillmer
What did Ute do?
• 27 years of international marketing (HP, CoCreate, MFG Innovation
Agency State of BW, Better Reality Marketing)
• Dissertation in business administration, behavioral economics in
technology marketing: Technology Acceptance in Mechatronics
• Worldwide company and product communication;
mainly 3 continents (America, Europe, Asia)
• Product-, program-, channel-, partner marketing, marketing
communication, branding, positioning
• Responsible for operative, strategic + corporate marketing, branding,
sales training
• Experienced in large corporations, SMEs and freelance work as well as
political institutions.
• Responsible for the first international website of Hewlett Packard in 1993
4. November 2015 Dr. Ute Hillmer
What’s Ute’s
STORY?Iaminbusinessto change
thelivesofmytechnology
clientsbyfindingthem
hungrycustomers that get
them intosustainablegrowth!
5. November 2015 Dr. Ute Hillmer
and turn their customers into raving fans!
6. November 2015 Dr. Ute Hillmer
To take the most
out of this lecture
… be in
STATE!
7. November 2015 Dr. Ute Hillmer
Agenda1. Marketing Today: the new Buying
Decision Process
2. Creating and Capturing Customer
Value
3. Your Ideal Customer
4. Positioning for the Ideal Customer
5. Create your Value Proposition
Creating and capturing CUSTOMER VALUE!
8. November 2015 Dr. Ute Hillmer
Marketing + Sales
Today:
a New Buying
Decision Process
9. November 2015 Dr. Ute Hillmer
Role-play to discover:
“Has Marketing changed?”
“Must Marketing change?”
10. November 2015 Dr. Ute Hillmer
Funnel-Metaphor for a Buying Decision
active evaluation
many brands
Grafik close to Edelman 2010
buying decision
Initial
considerationTrigger
lesser and lesser brands
What brand creates
the most value to
me/us right now
and in the future?
11. November 2015 Dr. Ute Hillmer
Digitally supported Buying Decision
active
Evaluation
Post-Sales
Experience
Enlarged
Evaluation
Ambassador
Loyalty Loop
Active
Evaluation
Model close to Edelman 2010, p.65
Moment of Purchase
Initial
Consideration
Trigger
What brand creates
the most value to
me/us right now
and in the future?
12. November 2015 Dr. Ute Hillmer
Information Sources Today
The 2014 B2B Buyer Behaviour Survey
13. November 2015 Dr. Ute Hillmer
2014 B2B Buyer Behavior Survey
• Web search is the top source of information
• B2B buyers strategically browse social media
• The number of sources used to research and
evaluate purchase has increased
• There is an increased awareness of purchase
options
• The evaluation process is longer and more
satisfying
DemandGen Report Survey 2014
14. November 2015 Dr. Ute Hillmer
What Role does Social Media Play?
The 2014 B2B Buyer Behaviour Survey
15. November 2015 Dr. Ute Hillmer
The Core Consequences
1. Consumers and buyers connect with brands in
fundamentally new ways – often beyond manufacturers’
or dealers' control.
2. They evaluate a shifting array of options during the
evaluation process and remain engaged with the brand
after purchase.
3. Customers can have as much information and
knowledge, as vendors do.
Its no longer about “information” it’s about creating and
capturing CUSTOMER VALUE!
You need a customer driven marketing strategy!
16. November 2015 Dr. Ute Hillmer
Customer Driven
Marketing –
What does that
mean?
17. November 2015 Dr. Ute Hillmer
From Product- Focus to Customer Focus
Product
Price
Place
Promotion
Customer Needs
Customer Cost
Convenience / Access
Communication
McCarthy: Basic Marketing: A managerial approach, 1960
Schullz, Stanley I. Tannenbaum, Robert F. Lauterborn, Integrated Marketing Communications, 1993
18. November 2015 Dr. Ute Hillmer
From Product- Focus to Customer Focus
• Making a sale
• Abundance of products in
the nearby shopping
centers
• Television, magazine, and
direct-mail ads
• Satisfying customer needs
• Imaginative Web sites and
mobile phone apps, blogs,
online videos, and social
media
• Reach customers directly,
personally, and
interactively
Traditional View Contemporary View
Kotler, Armstrong 2014
20. November 2015 Dr. Ute Hillmer
• Objective 1: Understand the fundamental change in marketing
• Objective 2: Identify the key elements of a customer-driven
marketing strategy
• Objective 3: Apply the steps of a customer driven marketing
strategy to your project
Learning Objectives
Marketing:
Creating Customer Value
and Engagement
25. November 2015 Dr. Ute Hillmer
This is a 2 Day Work Session on
Customer-Driven Marketing Strategy
Day 1: Designing a Customer Value-Driven Marketing
Strategy
1. Selecting customers to serve
– Find your Ideal Customer
2. Creating value for these selected customers
– Define the Value Proposition
Day 2: Effectively communicate Customer Value
– Define a (digital) launch plan
Applying the 20/80
rule to this marketing
lecture …
26. November 2015 Dr. Ute Hillmer
What does that mean for
you:
Market + sell YOUR
PROJECT in your Internal
and/or External Market
27. November 2015 Dr. Ute Hillmer
• What is your business goal for the PSA 3?
• What is your business goal for the Master Thesis?
• What is so important about the goal?
• Why is it important?
• Ultimately, what would having that do for you?
Task:
Your WHY!
Write it down on a sheet of paper for you!
28. November 2015 Dr. Ute Hillmer
PSA3:GoalDefinition+ Communication
Planning
35. November 2015 Dr. Ute Hillmer
What is Market Segmentation?
Market segmentation requires dividing a market into
smaller segments with distinct needs, characteristics,
or behaviors that might require separate marketing
strategies or mixes. Kottler, Armstrong 2014
Segmentation is used to identify and further define
your ideal customer
36. November 2015 Dr. Ute Hillmer
• Segmenting consumer markets?
• Segmenting business markets?
• Segmenting international markets?
• Effective segmentation?
Criterias for
38. November 2015 Dr. Ute Hillmer
GeographicSegmentation
RegionsfollowingACNielsen
Geographic
segmentation
divides the market
into different
geographical units
such as nations,
regions, states,
counties, cities, or
even neighborhoods.
39. November 2015 Dr. Ute Hillmer
DemographinSegmentation
Sinusmilieu
Demographic
segmentation
divides the market
into segments based
on variables such as
age, life-cycle stage,
gender, income,
occupation,
education, religion,
ethnicity, and
generation.
40. November 2015 Dr. Ute Hillmer
DemographinSegmentation
Age,Gender,Income,…
Age and life-cycle stage segmentation divides a
market into different age and life-cycle groups.
Gender segmentation divides a market into
different segments based on gender.
Income segmentation divides a market into
different income segments.
41. November 2015 Dr. Ute Hillmer
PsychographicSegmentation
Sinusmilieu
Psychographic
segmentation divides
a market into different
segments based on
social class, lifestyle,
or personality
characteristics.
50. November 2015 Dr. Ute Hillmer
When Segmenting Markets, watch out for:
Measurability
• “otherwise the scheme will not be operational”
• next to impossible in some markets, hard in most markets => most companies use
qualitative and intuitive methods
Substantiality
• “the variable should be relevant to a substantial group of customers”
• Challenge: find the right size / balance: large group segment: risk of diluting
effectiveness
• Too small: you lose the benefits of economies of scale
• Sometime one large customer
Operational Relevance (Actionable)
• Segmentation should enable to offer the suitable product/service to the chosen
segment, e.g. faster delivery service, special 24-hour technical support, etc.
Source: Webster, 2003
52. November 2015 Dr. Ute Hillmer
Selecting Target Market Segments
.
.
.
.
..
.
.
A target market is a set of buyers who share
common needs or characteristics that the
company decides to serve.
61. November 2015 Dr. Ute Hillmer
• What different market segment strategies are of
relevance in your master thesis project?
• What are 3-5 relevant market segments that you
could target in your internal and/or external
communication?
• Prioritize your market segments and make a short
note on your decision criteria.
Task:
Your Market Segmentation
70. November 2015 Dr. Ute Hillmer
Archtypes:
Roger’s
InnovationAdopter
Categories
Foto by: ehoyerEverett Rogers, 1995 “Diffusion of Innovations”
71. November 2015 Dr. Ute Hillmer
Time
Marketsize
technology life cycle and its buyer
categories
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Chart based on Rogers 1995, p. 262 and Moore 1999, p. 12
72. November 2015 Dr. Ute Hillmer
Persona: Techy
Time
Marketsize
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Chart based on Rogers 1995, and Moore 1999
73. November 2015 Dr. Ute Hillmer
Time
Marketsize
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Persona: Visionary
Chart based on Rogers 1995, and Moore 1999
74. November 2015 Dr. Ute Hillmer
Time
Marketsize
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Persona: Pragmatist
Chart based on Rogers 1995, and Moore 1999
75. November 2015 Dr. Ute Hillmer
Time
Marketsize
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Persona: Conservative
Chart based on Rogers 1995, and Moore 1999
76. November 2015 Dr. Ute Hillmer
Time
Marketsize
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Personas: Laggard
Chart based on Rogers 1995, and Moore 1999
77. November 2015 Dr. Ute Hillmer
LaggardsLate
Majority
Early
Adopters
Early
Majority
Innovators
Mainstream Behaviour
Increasingly
conforming behaviour
Hillmer, Technology Acceptance in Mechatronics, 2009
Zeit
Marktgröße
78. November 2015 Dr. Ute Hillmer
LaggardsLate
Majority
Early
Adopters
Early
Majority
Innovators
Individualistic Behaviour
Increasingly
individualistic
behaviour
Zeit
Marktgröße
Hillmer, Technology Acceptance in Mechatronics, 2009
79. November 2015 Dr. Ute Hillmer
Archtypes:
Schein’s
CareerAnchors
Foto by: ehoyer
Edgar H. Schein, 2006 “Career Anchors”
80. November 2015 Dr. Ute Hillmer
Technical / Fictional Competence
Foto by merkapt
81. November 2015 Dr. Ute Hillmer
General Management Competence
Foto by merkapt
82. November 2015 Dr. Ute Hillmer
Autonomist / Independent
Foto by merkapt
83. November 2015 Dr. Ute Hillmer
Security and Stability
Foto by merkapt
84. November 2015 Dr. Ute Hillmer
Entrepreneurial Creative
Foto by merkapt
91. November 2015 Dr. Ute Hillmer
Where to getAnswers
Quick Content Analysis: The right Product/Problem
description
1. Google Search with your key words from this morning
2. Google Adwords / Keyword Planner
Detailed Content Analysis: What exactly are people
looking for?
1. Amazon Booktitel-Search
2. Amazon 3-Star Search
3. Google Analytics
Interviews: In-Depth Understanding
92. November 2015 Dr. Ute Hillmer
Task: Do a Google SearchAnalysis
Take your product/project description to Google Search
1. What wording does Google-Autofil suggest?
2. What topics, web-pages, blogs, companies come up
what is their wording?
what is their content?
Who is there?
3. Results:
– What are your new 2-4 keywords?
– Who are your 3-5 key competitors?
93. November 2015 Dr. Ute Hillmer
GoogleAdvanced Search
Video: https://www.youtube.com/watch?v=yc6ssZnCyuA
94. November 2015 Dr. Ute Hillmer
Why Google?
The Online Search Ecosystem 2013
95. November 2015 Dr. Ute Hillmer
Task: Do a GoogleAdWordsAnalysis
Take your product/project description to Google Adwords
1. Open Google Adwords (maybe register), go to → Tools
→ Keyword Planer
2. Enter your keywords and take notes:
Keyword mtl. Search Competition Price (CPC)
96. November 2015 Dr. Ute Hillmer
Task: Do theAmazon Booktitle Search
1. Start looking for book titles
2. What seems to be the core
concern of people interested
in this topic?
3. Modify the answers and the
wording in your workbook
based on your learnings
97. November 2015 Dr. Ute Hillmer
Task: Do theAmazon 3-Star Search
1. Look at the 3-Star
Reviews
2. What seems to be
the core concern of
people interested in
this topic? What are
they looking for and
praise or can’t find?
3. Make a list of the
core problems
people seem to
have
100. November 2015 Dr. Ute Hillmer
Your Ideal Customer
This isn’t about your most common customer –
it’s about who you want as your most wanted
customer! The 20% that create 80% of your revenue.
If you have more than one ideal customer, create
multiple copies, but set a limit to 3-5 max.
Your most hungry customer!
101. November 2015 Dr. Ute Hillmer
Your Ideal Customer Profile - Outline
102. November 2015 Dr. Ute Hillmer
Your Ideal Customer Profile - Motivations
103. November 2015 Dr. Ute Hillmer
YourIdealCustomerProfile – BusinessGoals
104. November 2015 Dr. Ute Hillmer
YourIdealCustomerProfile – Narrative+ Letter
106. November 2015 Dr. Ute Hillmer
What is Positioning?
Positioning defines where your product or service stands in relation to others
offering similar products and services in the marketplace as well as the mind of
the consumer.
Positioning always starts with a “product” (merchandise, a service, a company, an
institution, or even a person….)
but positioning is not what you do to that product. Positioning is what you do to
the mind of the prospect or customer.
Positioning is the act of designing the company’s
offering and image to occupy distinctive place in
the mind of the target market.
Kottler Keller
107. November 2015 Dr. Ute Hillmer
What is Positioning?
Image by talk2frank from Stock.Xchng
108. November 2015 Dr. Ute Hillmer
What is Positioning good for?
Position, differentiate and communicate
Think from your customers perspective, before you talk to them
#1 Relevance – avoid price wars
Is the promised added value of relevance to your target segment? Does
your customer care?
#2 Differentiation – avoiding replicability
Are you unique? Do you offer something „more“ that what your customers
offer?
#3 everybody and everywhere, the message is the same
One core message from every employee + partner and through every
channel
111. November 2015 Dr. Ute Hillmer
Value proposition is the #1 thing that
determines whether people will bother
reading more about your product or hit the
back button. It’s also the main thing you
need to test – if you get it right, it will be a
huge boost.
Why choosing a Value Proposition
A VP explains the bottom line of what
your company does
http://conversionxl.com/
112. November 2015 Dr. Ute Hillmer
AValue Proposition is
a promise of value to be delivered. It’s the primary
reason a prospect should buy from you.
In a nutshell, value proposition is a clear statement that
explains how your product
• solves customers’ problems or improves their situation
(relevancy),
• delivers specific benefits (quantified value),
• tells the ideal customer why they should buy from you
and not from the competition (unique differentiation).
It’s for people to read and understand!
http://conversionxl.com/
113. November 2015 Dr. Ute Hillmer
What a ValueProposition isnot
It’s not a slogan or a catch phrase:
L’Oréal. Because we’re worth it.
Nike: Just do it
It’s not a positioning statement (positioning statement is a
subset of a value proposition, but it’s not the same thing):
Germany’s #1 Skin Care.
Trusted skincare for life.
And a bad example of a Value Proposition:
“Revenue-focused marketing automation & sales effectiveness
solutions unleash collaboration throughout the revenue cycle”
http://conversionxl.com/
114. November 2015 Dr. Ute Hillmer
AValue Proposition Consists of
• a block of text (a headline, sub-headline and one paragraph of
text) with a visual (photo, hero shot, graphics).
There is no one right way to go about it, but I suggest you start with
the following formula:
• Headline. What is the end-benefit you’re offering, in 1 short
sentence. Can mention the product and/or the customer. Attention
grabber.
• Sub-headline or a 2-3 sentence paragraph. A specific
explanation of what you do/offer, for whom and why is it useful.
• 3 bullet points. List the key benefits or features.
• Visual. Images communicate much faster than words. Show the
product, the hero shot or an image reinforcing your main message.
http://conversionxl.com/
115. November 2015 Dr. Ute Hillmer
Create a Good Value Proposition
• A key role for the value proposition is to set you apart
from the competition. Most people check out 4-5 different
options / service providers before they decide. You want your
offering to stand out in this important research phase.
• How do you make your offer unique? Often it’s hard to spot
anything unique about your offering. It requires deep self-
reflection and discussion.
• If you can’t find anything, you better create something. Of
course the unique part needs to be something customers
actually care about. No point being unique for the sake of
being unique (“the ball bearings inside our bicycles are blue”).
http://conversionxl.com/
116. November 2015 Dr. Ute Hillmer
Use the Right Language
• Your value proposition needs to be in the language
of the customer. It should join the conversation that
is already going on in the customer’s mind.
• You cannot guess what that language is. The way
YOU speak about your services is often very
different from how your customers describe it.
http://conversionxl.com/
118. November 2015 Dr. Ute Hillmer
Examples of Value Propositions in Crowded
Markets: Sell a Customer Experience!
Car Repair Shop
• Simple fix for blown head gaskets
• Repairs blown head gaskets in just one hour
Domino Pizza
• “You get fresh, hot pizza, delivered to you in under 30
minutes – or it’s free!”
http://conversionxl.com/
119. November 2015 Dr. Ute Hillmer
Customer Experiences Online Buyers want
• Low Prices (38%)
• Shopping Convenience
(35.1%)
• Easy To Compare
(33.1%)
• Free Shipping (31.5%)
• Time Saving (30.8%)
• Easy To Buy (29.2%)
• Range of Products
(17.4%)
Infographic by Invesp (sources data from eMarketer and Internetretailer.com)
Don’t take these things at face value, because not everything
is as it seems. Ask your customers or test it
120. November 2015 Dr. Ute Hillmer
• USP (Unique Selling Proposition). USP is the most closely related concept. It’s often considered
synonymous with value proposition (especially in relation to copywriting). But it only focuses on
what makes your product better than competing options. And that’s just a part of a strong value
proposition.
• FAB (Feature-Advantage-Benefit). FAB is a process that helps you figure out what each of your
product’s features means to your customers, which enables you to address their concerns,
desires, wants, and needs. You start by listing your product’s features (e.g., stainless steel as the
material of a knife). Then consider what advantages it creates (it won’t corrode). And finally turn
that into the practical benefit (you don’t need to buy a new knife every year).
• POP-POD (Points of Parity – Points of Difference). POP-POD is a process used to find
differentiating factors between businesses. You start by finding “points of parity,” or the factors
you have in common with your competitors. And then you find “points of difference;” the aspects
of your business thatdifferentiate you from your competitors.
• UVP (Unique Value Proposition). UVP sounds nearly the same as value proposition. But the
strong focus on uniqueness makes it less useful (much like USP).
ValueProp-USP-FAB-POP-POD-UVP
121. November 2015 Dr. Ute Hillmer
Value Proposition Canvas
Products &
Services
• Welche Produkte oder
Dienstleistungen helfen dem Kd.
seinen funktionalen, sozialen oder
emotionalen Job zu machen. Was stillt
Bedürfnisse?
• Produkte in Kundenprio setzen.
Gain creators
• Wir ermöglichen Produkte oder
Dienstl. Chancen (funktional, sozial,
emotional, monetär)
Pain-Reliefers
• Wie verhindern oder verringern d.
Produkte/Dienstl. Kunden-Schmerzen
(funktional, sozial, emotional,
monetär)
Job-to-be-done
Welchen Job (funktional, sozial,
emotional) versuchen die Zielkunden zu
erledigen:
• Welche Aufgaben erledigen sie
• Welches Problem versuchen sie zu
lösen?
• Welche Bedürfnisse versuchen sie zu
erfüllen?
Pains
• Welche negativen Gefühle,
unerwünschte Kosten oder
Situationen, welche Risiken können
vor, während oder nach
Aufgabenerledigung aufkommen
Gains
• Welche Vorteile erwartet, wünscht der
Kunde (funktional, sozial, emotional,
monetär)
Value Proposition Customer Segment(s)
based on: businessmodelgeneration.com
122. November 2015 Dr. Ute Hillmer
Value Proposition Canvas Video
https://www.youtube.com/watch?v=gB-YwlBrVVs
123. November 2015 Dr. Ute Hillmer
Your Customer‘s Job
Thetasksyour
targetcustomer
has(fornow,forget
thebuyingcenter)
What urgent
needs do they
have?
What are their
Compelling
desires?
…
…
…
…
124. November 2015 Dr. Ute Hillmer
What are the
• largestwinsyoucan gainforourcustomer
• thebiggestbenefit,customerscanobtain?
• Biggestpainswecanofferrelieffor?
…
125. November 2015 Dr. Ute Hillmer
The biggest result
Determine the biggest result your customers get
… it must be a big one!
What is your big promise?
People buy results and the
benefits they get from
these results
126. November 2015 Dr. Ute Hillmer
Whenand how do you keepour promisses?
When were your
customers really
happy?
Why?
What was the right
fit?
…
…
128. November 2015 Dr. Ute Hillmer
Task:
Lead your Project to
Huge Success:
• Position your project innovation with the VP Canvas
- 30 Min each one individually
- Discuss it in teams of 3 (20 Min each)
• Present your Value Proposition (1 Min each)
130. November 2015 Dr. Ute Hillmer
Our promise (2)
What we help our customers do is:
…
…
…
131. November 2015 Dr. Ute Hillmer
Our promise (3)
Why we do what we do to serve our customers:
…
Our Vision, what we hope to achieve:
…
132. November 2015 Dr. Ute Hillmer
Our Promise (4)
How we differenciate from alternatives in the
market
…
133. November 2015 Dr. Ute Hillmer
Positionierung: Value Proposition
• Operative excellence
• Product excellence
• Customer insight
Youhaveachoice:
economic
benefits
emotional
benefits
functional
benefits
134. November 2015 Dr. Ute Hillmer
Value Proposition
We help …
(do the following things) …
in order to …
135. November 2015 Dr. Ute Hillmer
Task:
Builtthe ValuePropositionfürYour PSAProject
136. November 2015 Dr. Ute Hillmer
Tomorrow:
Designing a Customer Driven
Marketing Strategy in an Online
World
Production
concept
Product
concept
Selling
concept
Marketing
concept
Societal
Marketing
concept
137. November 2015 Dr. Ute Hillmer
Suggested Reading
• Value Proposition Design by A. Osterwalder, Y.Pigneur
• Groundswell by Charlene Li, Josh Bernoff
• Positioning by Trout and Ries
• In Pursuit of Wow! + The Tom Peters Seminar by Tom Peters
• What would Google do by Jeff Jarvis
• All Marketeers tell Stories by Seth Godin
• 1 to 1 Marketing Future by Don Peppers
• CRM at the Speed of light by Paul Greenberg
• The Long Tail by Chris Anderson
• The Wisdom of Crowds by James Surowiecki
• Crossing the Chasm by Geoffery Moore
• Selling the Dream by Guy Kawasaki