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?
3. TO BE SUCCESSFUL, SHOULD A BRAND APPEAL TO EVERYBODY?
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•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
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
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.
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.
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).
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SOCIAL MEDIA MARKETING
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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.
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-SOCIAL MEDIA ALLOWS SMALL BUSINESSES TO REACH A
LOT OF PEOPLE WITHPOUT SPENDING A LOT OF MONEY.
37. CONSUMER’S ONLINE BRAND RELATED ACTIVITIES (COBRAs)
-PROVIDING YOUR CUSTOMERS A WAY TO SHOW THEMSELVES
USING YOUR PRODUCT/SERVICE THROUGH SOCIAL MEDIA.
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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.
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40.
41. DOGFISH HEAD & THE AMERICAN RED CROSS #GETTINGSLIZZERD FUNDRAISING CAMPAIGN
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