A compilation of the best spot covered by HBR articles

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HBR on Reinventing your Marketing
By: Roukaya ISSAOUI
March 2015

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Agenda
Introduction
Rethinking Marketing
Marketing Myopia
Marketing malpractice
The brand Report Card
The Customer Value Proposition

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Introduction
A compilation of Experts’ advices on how to maximize
your Marketing Effort

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Rethinking and reinventing Marketing
1- Cultivating customer
Companies should make the shift. From Product Marketing to value Marketing.
To understand your
customers needs and
how those needs
evolve through time
and adjust your offer
you are offering a
value not a product.

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Rethinking and reinventing Marketing
Example :How to Cultivate customer and build a tight relationship
Shoppers who buy diapers receive a coupon by E-mail not only for
baby products but also for beer
WHY??
The collected Data from the loyalty card about their customer
behavior: which stores they visit, what they buy, how they pay,
shows that they are young parents who can’t spend as much time at
the pubs and they enjoy beer at home.

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2- New Marketing departement organization
Customer Department: transform the
traditionally focused department on
current sales into customer department
by cultivating customer rather than
pushing product and bringing under the
marketing umbrella all customer
focused department
(CCO) Chief Customer officer:
Design and Execute the firm’s customer
relationship strategy Promote customer
centric culture, remove obstacle to the
flow of customer information Top
manager of Tesco spend 1W/ year in a
store
(CM)customer manager: They are customer behavioral scientist, observing
collection information about them, interacting with and learning from them,
analyze and synthesize sophisticated data, and sharing what they learned

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3- New metrics
As a company shift from Product push strategy to customer driven strategy
they need new metrics to gauge the customer centric strategy

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II- Marketing Myopia
“Concentrate on meeting customer’s needs rather than selling
products”
1- The risk of the decline shadow: Every Major Industry was once a
growth industry
2- The Big Mistake: To misunderstand your business Purpose, and fail
to answer those questions:
What business are you really in?
What are you offering for your customer?
Why the growth can stop?
How the ensure continued growth for your
company?
« Don’t lose sight of your customer »

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Marketing Myopia
3- Four Myths that put your business at risk of obsolescence:
M1: When markets are expanding increase the efficiency of our product
rather than boosting the delivered value:
M2:There is no competitive substitute for our industry’s major product
M3:We can protect ourselves through mass product
M4: R&D will ensure our growth
Example:
Railroads industry stopped to grow

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III- Marketing Malpractice; Cause and Cure
It is time to break the paradigms of Market segmentation
« People don’t want to buy a quarter inch drill, they want a quarter
inch hole » T.Levitt a Harvard Marketing professor
1- Instead of segmentation the market
based on customer type it is better to
find out what job to be done people
need!
2- Create a Purpose brand, why
customer will hire your product to solve
his problem or to fulfill his need?
3- The market structure should be
configured from the customer point of
view

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III- Marketing Malpractice; Cause and Cure
I need to send this from A to B with perfect certainty as fast as possible
Businesspeople use FedEx as a verb, the secret is that FedEx was so
much more convenient, reliable and reasonably priced than alternative.
New product innovation success is not a gamble! It a clear purpose brand
that acct as two sides compass:
-One side guides customer to the right product
-The other side guides your designers, marketers, and advertisers as they
develop and market new product

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Marketing Malpractice; cause and cure
How to recognize the Job to be Done of your product?
1- Observe Customer in action: to identify what they really need and how
they use your product
2-Link the product to the Job through Advertising: communicate and explain
to the customer what job your product can perform;
3-Extend your purpose brand

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The Brand report Card
What is it?
It is a method suggested by
“Keller” to grade your brand;
-To assess your brand
equity,
-To identify areas that need
improvement
-To recognize areas in which
your brand is strong and
learn more about how your
particular brand is configured
and positioned.
It helps to identify the actions needed to mTop10 traits maximize your
brand Equity
To grade your brand you can use shared by the world’s strongest brands

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Customer Value Proposition
Price is not the only buying criteria, even if it’s a very important (
Especially for business customers pressured to control cost) customers
seems to care only about price but in fact they care more about how to
maximize profit through the ration Price/Value.
You can persuade your customer to pay premium price by increasing
the value they get.
Thus, you should find out their specific CVP “ their unique
requirements”, than explain to them how your offering outmatch your
rivals, on the criteria that matter most to the customer:

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The Customer Value Proposition
The Customer Value elements: How to define a CVP?
A company’s offering may have many technical, economic, service, or
social benefit benefits that deliver value to customer but so do
competitors' offering How do the value element compare with those of
the next best alternative?
We sort value elements in 3 types:
-Point of parity: Element which essentially, the same performance or
functionality as those of next best alternative
-Point of difference are element that make a company offering either
superior or inferior to the next alternative
-Point of contention: Element which the company and its customers
disagree regarding how their functionality compares with those of next
best alternative. Either the company regards value element as a P
difference in its favor which the customer regards it as P of parity, or the
company regards that element a P of parity and the customer regards it
as P of difference in favor of the next best alternative

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There are 3 categories of CVP: How a company can design a
suitable CVP
The Customer Value Proposition

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The CVP: Resonating Focus
It is about: to concentrate on few element ( point of difference and parity)
that are the most critical and relevant for the customer
-How to build your resonating focus CVP?:
- Understand your customer business: to identify their real requirement and
preference
Example
Company: a leading supplier of specialty resin
They perceive an opportunity: strict environmental regulation
They build their CVP around that opportunity

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but the commercial customer they reject it because their customer ( the
coating contractors) refuse it, the price it is so high  their profitability shrinks
What they have done?
They conduct a deep CV research that extend to the customer of their
customer
What they have discovered?
-They find out the largest cost component for coating contractors is labor
-The Resin company developed a new resign enables coating producers to
make architectural coating providing faster time to dry that allowed 2 coats to
be applied during a single labor shift, painting contractors would likely accept
a higher price

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Conclusion
« Don’t lose sight of your
customer »
&
“Concentrate on meeting
customer’s needs rather
than selling products”