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• Professional marketer, blue chip brands
• MBA, undergraduate / post grad Marketing
• 25 years experience in UK, Australia, Asia
• Marketer of the Year / Top 100 Marketer UK
• Teaching 9 years!
• Advisor and Investor: eCommerce,Start-Ups
Colin Lewis
@colinalewis
linkedin.com/in/colinlewis/
2
Our Goal today: ‘Understanding’
• Understand Strategy
• Understand Segmentation + Targeting
• Understand Positioning
• Understand Propositions
• Understand Execution in market –> ‘tactics’
• Understand how to join them all together.
4
1. Introductions
2. Objectives
3. Create the context: What is Strategy?
4. The Marketing Mindset
5. STP: Segmentation, Targeting, Positioning
6. Positioning and Propositions
7. Putting the Fun in Funnels: Creating Funnels
8. Creating a complete strategy
9. Joining the dots and closing.
Today
5
6
Creating the context• What is strategy?
• What is the difference between strategy +
tactics?
• The difference with ‘classical’ & ‘digital’
marketing
Session 1 – Strategy
““
Richard Rumelt: Good Strategy, Bad Strategy
Strategy is designing a way to deal with a
challenge.
8
What is a strategy?
A strategy is a coherent set of analyses, concepts,
policies and actions that respond to a challenge.
9
What is in a strategy?
A Diagnosis: define or frame the nature of the
challenge
An approach: creating an approach based on the
insights learned
Use the approach + insights to provide guidance for
subsequent actions
Identify an appropriate, coherent set of tactics.
10
The reason why marketing strategy is
hard to deliver
• ‘Strategies’ and ‘tactics’ as terms are often used interchangeably
• The fragmentation of channels
• The emphasis on tactical plans
• Plans resources are not aligned with strategy, with business objectives
13
What is a bad strategy?
• A list of high sounding sentiments
• A list of objectives
• Ignoring the power of focus
• Conflicting goals
• Strategy = goals
• Laundry list of desirable outcomes
• Plan to spend more to get better
• Words like ‘desire’, ‘drive’ or ‘determination’
14
Why is strategy confusing? Lazy
language
Word(s) What we think it means
Strategic Very important
Strategic Decision Maker Senior manager
Strategically Cleverly
A Strategy Ambition
A difficult goal
Innovation
Determination
Vision
Inspirational Leadership
15
Once more: what is in a ‘good strategy’?
Diagnosis Design Actions
• Identification +
diagnosis of the
challenge to be
overcome
• Simplify complex reality
down to a simpler story
by identifying certain
aspects of the situation
as critical.
• Make it simple which
helps suggests a
domain of action.
• Design of a way to
overcome these
challenges
• The overall approach
chosen to overcome the
obstacles identified in
diagnosis
• A coherent set of
actions
• Co-ordinated use of
resources, policies, that
support each other
16
Good strategy - even simpler…
The core of strategy is always the same: discovering the critical factors in a situation and designing a way
of coordinating and focusing actions to deal with those factors.
Define the problem (correctly) Make (hard) choices.
Implement them.
17
Strategy
Brand positioning
Product & Proposition Product / Brand Activation
Execution in Market
Our Strategy Framework
19
Strategy• Devising a ‘strategy’ means diagnosis, deciding ‘where to play’ and ‘how to win’ based on a real understanding of the
market, the consumer, the opportunity, and how the product or brand can grow
Brand positioning• Defining the positioning of the product of brand relative to other brands in the category
Product & Proposition• Create the products and services combination
that maps to customer needs
Product / Brand Activation• Creating the communication programme and
activation relevant for the target audience
Execution in Market• Choose the ideas, the creative, the media and the assets to achieve the brand’s goals that create an activity schedule with
associated measurable objectives based on performance
Understanding strategy, segments and targeting helps research, reframe and refine positioning and links to brilliant briefs
Understanding positioning drives insight to create better products and brilliant briefs
Proposition and Product Activation are brilliant briefs in action
Brilliant briefs drive excellence in execution with SMART objectives, cut-through creative and targeted media
Strategy Framework in detail
20
Classical Marketing…….
• STP (Segmentation, Targeting,
Positioning)
• Advertising
• Brand management
• CRM
• Loyalty Marketing
• Distribution
• Events and Experiential
marketing
• Market research
• Packaging and labelling
• Product development
• Promotions
• PR
• Sponsorship
26
…Digital Marketing
• Performance-based marketing
• Google Adwords
• SEO
• Digital display advertising
• Content marketing – copywriting,
video
• Conversion rate optimisation CRO)
• Customer/user experience
• Digital analytics and measurement
• Influencer marketing
• Social media marketing
• Facebook Advertising
• Community Management
27
Classical v Digital
• STP (Segmentation, Targeting,
Positioning)
• Advertising
• Brand management
• CRM
• Loyalty Marketing
• Distribution
• Events and Experiential
marketing
• Market research
• Packaging and labelling
• Product development
• Promotions
• PR
• Sponsorship
• Performance-based marketing
• Content marketing – copywriting, video
• Conversion rate optimisation CRO)
• Customer/user experience
• Digital analytics and measurement
• Digital display advertising
• Influencer marketing,
• SEM: Paid – and SEO
• Search engine optimisation (SEO)
• Social media marketing
• Facebook Advertising
• Community Management
28
Modern marketers fuse classic and digital
marketing
Source: Econsultancy research, 2013 - 2019
MODERN
MARKETING
EXCELLENCE
DIGITAL
EXCELLENCE
CLASSIC
MARKETING
EXCELLENCE
Consumers demand their
brand blend Classic &
Digital Marketing
• Advertising
• Brand management
• CRM & Loyalty
• Database marketing
• Distribution
• Events and experiential
marketing
• Market research
• Marketing strategy
• Packaging and labelling
• Partner marketing
• Pricing
• Performance-based marketing
• Content marketing
• Conversion rate optimization
(CRO)
• Digital analytics &
measurement
• Data driven marketing –
schemas, feeds, APIs,
metadata, machine-to-machine
data
• Digital display advertising -
including retargeting and
programmatic
• Product & service
development
• Promotions
• Public relations
• Retail & shopper
marketing
• Sponsorship
• STP (Segmentation,
Targeting &
Positioning)
• Telemarketing
• Email & eCRM: marketing
automation, personalization
• Mobile marketing
• Influencer marketing
• Reputation management
• Paid search marketing (PPC)
• Search engine optimization
(SEO)
• Social media marketing:
community building,
collaboration/co-creation,
social CRM, social customer
care, social
monitoring/listening
© Econsultancy 2019 29
Exercise: Good Strategy / Bad Strategy
Developing a successful strategy is always
required a combination of rigorous thinking,
creativity in action and discipline in execution.
How do these brands stack up?
• Apple
• Vodafone
• Aldi + Lidl
• Barcelona – Case Study
Task: group discussion asking what is their
strategy, how do they display the strategy in terms
of execution.
30
Source: Econsultancy Skills of the Modern Marketer 2019.
✓ Being comfortable with the relentless
pace of change
✓ Being open to and seeking out
opportunities for learning
✓ Knowing your biases
✓ Taking responsibility for self-learning
✓ Knowing yourself
20
Profile of the Modern Marketer
32
Source: Econsultancy Skills of the Modern Marketer 2019.
20
The ‘Marketing Mindset’ supports it all
33
Source: Econsultancy Skills of the Modern Marketer 2019.
20
The ‘Marketing Mindset’ - The ‘Inner
Game’
34
#1 Availability Heuristic
Overestimating the importance of the first (or last) piece of information
that you hear.
See also – ‘Recency effect’
Example:
‘Smoking is not bad for you, as my granny lived to 100 and smoked 3
packets a day’.
36
# 2 Choice-supporting bias
When you choose something, you tend to think positively about it –
even if the idea has flaws.
Example:
My dog, Rover, is great.
(The fact that he bites people every once in a while is ignored.)
I drive MGs.
37
# 3 Confirmation Biases
We tend to listen only to the information that confirms our preconceptions
Example:
Leave v Remain.‘Climate change is fake’.
38
#4 Outcome bias
Judging a decision on its outcome rather than on how it’s made
(AKA – getting lucky)
See also – survivorship bias
Example:
I gamble all my money - and win – in Vegas.
I float my software startup for billions, so now I am an expert on
everything.
39
#5 Blind spot bias
Failure to recognise your own cognitive biases
Example:
I can easily spot other people biases.
I, however, am perfect.
40
#6 Illusion of truth effect
‘The tendency to hold statements and information as true after
repeated exposure’.
Regardless of the validity of that statement, people are more likely
to agree with it after seeing it or hearing it multiple times, because
repetition creates familiarity.
Example
£350m a week
‘Build the wall’
41
7 Rules for the Marketing Mindset
1. I’m willing to learn & constantly improve
2. I know what I don’t know
3. I examine the sources of information that I’ve used to
form my opinions
4. I know my own personal, cognitive biases
5. I am NOT my customer
6. I am totally objective
7. I am obsessed with understanding other people
43
7 Rules for the Marketing Mindset
1. I’m willing to learn & constantly improve
2. I know what I don’t know
3. I examine the sources of information that I’ve used to
form my opinions
4. I know my own personal, cognitive biases
5. I am NOT my customer
6. I am totally objective
7. I am obsessed with understanding other people
44
7 Rules for the Marketing Mindset
1. I’m willing to learn & constantly improve
2. I know what I don’t know
3. I examine the sources of information that I’ve used to
form my opinions
4. I know my own personal, cognitive biases
5. I am NOT my customer
6. I am totally objective
7. I am obsessed with understanding other people
45
Exercise: How might we…
Explore with Empathy +
Curiousity
46
Get into the mind of a Experian customer and develop a deeper understanding of them across their whole lives
#1 Target Experian Customer
#2 Target Experian Customer
Task: Break into two teams, select two target Experian customers and ‘get into their lives’. Use whatever means necessary including the Internet and your imagination and be able to spend minutes discussing the target customer at a very deep level.
““
What is market segmentation?
‘Market Segmentation is the process of dividing the total
market for a product / service into several segments.
Each segment has a tendency to be homogeneous in all
significant aspects with others within the segment, and
heterogeneous from those others in the segments’.
48
Professor William Stanton
What are we trying to do?
Research, analysis and segment the market in order to identify
market attitudes, behaviours and the most basic meaningful
differences between prospective buyers.
49
Why do we segment?
Segmentation is the cornerstone of modern marketing.
We use it because:
Not all customers are created equal
Helps maximise resources
It enables more effective marketing
It allows better targeted marketing programmes
50
““
Phil Barden: Decode Consulting
What is all this Gen Y, Z, b*llsh*t. Brains don’t
change in a decade. We’re still driven by the
same goals as our ancestors.
53
““
Professor Mark Ritson
If marketers start thinking all millennials are the same, they
reject the behavioural and attitudinal nuances of a hugely
heterogeneous population and collapse them into one big,
generic mess.
If you buy the idea of millennials, then you reject the
concept of segmentation and of consumers holding
different perceptions and experiences.
54
““
David Ogilvy
Consumers don’t think how they feel. They don’t say what
they think and they don’t do what they say.
55
7 Step Segmentation Checklist
1. Have we got name / population / value / share?
2. Is the whole potential market included?
3. Can a customer belong to only one segment?
4. Are names based on behaviour?
5. Is the segment sized and valued correctly?
6. Are segment dynamics included?
7. Would a (non-marketing) team member recognise these segments
clearly?
61
The difference.
Segmentation is
descriptive.
It’s about the market.
Targeting is strategy.
It’s about your brand
Experian Logo
63
66
Exercise: How might we… Segment and Target
• Break into two teams
• Select two product customers
• Work out their customer segments and targets
• Decide why you think they chose those
• Be able to explain why (20 minutes)
Products:
• Competitor to Experian Credit Score
• Monzo
What do you think when you say these?
‘I want us to be the Apple of this category’
‘I want us to be the Mercedes of this category’
‘I want us to be McDonalds of this category’
‘I want us to be the Ryanair of this category’
68
““
Al Ries and Jack Trout
The act of designing a brand’s image and value
offer so that the segments’ customers understand
and appreciate what the brand stands for in
relation to its competitors.
69
What is positioning?
Why?
‘Positioning’ means that by the time prospects arrive,they are:
• pre-disposed
• pre-interested
• pre-motivated
• pre-qualified
71
What is a unique selling point?
The best question to get the answer to ‘what is my USP?’
Why should I, your
prospective
customer, choose
you
versus
any & every other
alternative available
to me? A USP should:
•Differentiate from all competition
•Emphasise a positive, desirable benefit
•Be easily understood
72
What is it? Target Segment
(Short) statement that describes what the product
is
Specific target market targeting in the short term
Market Category Competitive Alternatives
Market that you compete in If your customers don’t use it, what do they use?
Primary Differentiation Key Benefit
The one thing that sets you apart Biggest benefit target market derives from your
offering
80
Positioning Concept Evaluation Criteria
Which need state(s) does this Positioning speak to?
Is it persuasive?
Is it believable?
Is it ownable?
Is it defendable?
Is this a media / messaging targetable positioning?
Is this valuable to the customer?
Pros: _______________________________________
Cons:_______________________________________
81
88
Exercise:Shaping your product + proposition
• Break into two teams
• Select two Experian products / propositions
• Define the positioning using the template (20 minutes)
• Present the positioning (5 minutes)
(Simple!) Definition of a Funnel
•Attract a large number of prospects
to enter the funnel at the top
•A percentage drops off at each stage
of the funnel
•Actual customers at the bottom!
90
Funnel definition & Usage
A marketing funnel is a set of stages that map the
customer journey.
Using a funnel, we can measure how effectively we
are filling the funnel with new leads, & how well
those leads convert through each stage.
91
# 3 McKinsey Funnel
Awareness
Familiarity (Brand Perception / Knowledge)
In-market / Active Evaluation
Purchase
Loyalty / Advocacy
95
Application of funnel
Awareness
Familiarity
In-market
Purchase
Loyalty / Advocacy
Reach & Impact
Engagement, Freq & Education
Service + Web experience
Communicate & Reward
Conversion: sales through offers
96
Reach / Impact
Engagement,
Education
Get the Sales
Great UX
Reward & communicate CRM – Email for offers,
reminder, news
Facebook Ads
PPC / SEO Email for offer
Content, Facebook Ads.
Video, Email for
Social Media, Content
Digital Display, Email
User experience
Email for confirmation
Objectives Media Type
What works at each stage?
Awareness
In-market
Purchase
Loyalty / Advocacy
Familiarity
97
98
Exercise:Create your funnel
• Break into two teams
• Select two Experian products /
propositions
• Define the customer funnel (20 minutes)
• Present the funnel (5 minutes) – and be
able to justify it
Strategy
• Devising a ‘strategy’ means diagnosis, deciding ‘where to play’ and ‘how to win’ based on a real understanding of the
market, the consumer, the opportunity, and how the product or brand can grow
Brand positioning• Defining the positioning of the product of brand relative to other brands in the category
Product & Proposition• Create the products and services combination
that maps to customer needs
Product / Brand Activation• Creating the communication programme and
activation relevant for the target audience
Execution in Market• Choose the ideas, the creative, the media and the assets to achieve the brand’s goals that create an activity schedule with
associated measurable objectives based on performance
Understanding strategy, segments and targeting helps research, reframe and refine positioning and links to brilliant briefs
Understanding positioning drives insight to create better products and brilliant briefs
Proposition and Product Activation are brilliant briefs in action
Brilliant briefs drive excellence in execution with SMART objectives, cut-through creative and targeted media
Apply the Strategy Framework
100
101
Exercise:Create the Strategy Framework for two Experian Products
• Break into two teams
• Select two Experian products
• Define every aspect of Strategy Framework (up to Brand
Activation)
• Combine all previous exercises
• Make a single presentation from each group
• 90 minutes preparation – 15 minutes presentation
• (Worksheets provided)
Exercise
In your teams divide into half
Half will play as ‘Account handlers’ in the agency
The other half will play as ‘Creatives’
The Creatives have produced some work that you need to
‘feedback on’(i.e. change!)
As you would expect, the creatives do not want to change it!
102
Strategy Framework
Strategy
• Devising a ‘strategy’ means diagnosis, deciding ‘where to play’ and ‘how to win’ based on a real understanding of the
market, the consumer, the opportunity, and how the product or brand can grow
Brand positioning• Defining the positioning of the product of brand relative to other brands in the category
Product & Proposition• Create the products and services combination
that maps to customer needs
Product / Brand Activation• Creating the communication programme and
activation relevant for the target audience
Execution in Market• Choose the ideas, the creative, the media and the assets to achieve the brand’s goals that create an activity schedule with
associated measurable objectives based on performance
Understanding strategy, segments and targeting helps research, reframe and refine positioning and links to brilliant briefs
Understanding positioning drives insight to create better products and brilliant briefs
Proposition and Product Activation are brilliant briefs in action
Brilliant briefs drive excellence in execution with SMART objectives, cut-through creative and targeted media
What is a strategy?
A strategy is a coherent set of analyses, concepts, policies and actions that respond to a challenge.
105
7 Rules for the Marketing Mindset
1. I’m willing to learn & constantly improve
2. I know what I don’t know
3. I examine the sources of information that I’ve used to
form my opinions
4. I know my own personal, cognitive biases
5. I am NOT my customer
6. I am totally objective
7. I am obsessed with understanding other people
106
Segmentation: What are we trying to do?
Research, analysis and segment the market in order to identify
market attitudes, behaviours and the most basic meaningful
differences between prospective buyers.
107
What is it? Target Segment
(Short) statement that describes what the product
is
Specific target market targeting in the short term
Market Category Competitive Alternatives
Market that you compete in If your customers don’t use it, what do they use?
Primary Differentiation Key Benefit
The one thing that sets you apart Biggest benefit target market derives from your
offering
Your positioning template
108
Fun with Funnels
109
Reach / Impact
Engagement,
Education
Get the Sales
Great UX
Reward & communicate CRM – Email for offers,
reminder, news
Facebook Ads
PPC / SEO Email for offer
Content, Facebook Ads.
Video, Email for
Social Media, Content
Digital Display, Email
User experience
Email for confirmation
Objectives Media Type
Awareness
In-market
Purchase
Loyalty / Advocacy
Familiarity
111
• Source material for seminar
• Definition of brand
• The 9 Elements of an Effective
Marketing Campaign
• Further Reading.
Added bonuses
What is the source material used through the
workshop?
Strategy
Devising a ‘strategy’ means deciding ‘where to play’ and ‘how to win’ based on a real understanding of the market, the
consumer, the opportunity, and how the product or brand can grow.
This enables the creation of brand goals and criteria that will drive the rest of the framework.
Brand positioning• Defining the positioning of the product of brand relative to other brands in the category
Product & Proposition• Create the products and services combination that maps
to customer needs
Product / Brand Activation• Creating the communication programme and
activation relevant for the target audience
Execution in Market• Choose the ideas, the creative, the media and the assets to achieve the brand’s goals that create an activity schedule with
associated measurable objectives based on performance.
SOURCES
• How Brands Grow
• Sustainable competitive
advantage
• Evidence-based Marketing
• Other brand propositions
• Current Experian propositions
• Competitive propostions
• Consumer journey
• Understanding the audience
• Customer Journey
• Creating brand assets
• Mapping assets to channels
• Measurable, relevant KPIs
SOURCES
• Positioning: Ries and Trout
• Brand key
• Examples: Unilever, Coca-
Cola
• Current insights
• Brand Assets
• Audience segmentation
• Micro-targeting versus
going broad and target
everyone
• Marketing effectiveness
(Binet and Field) as a
lens
112
What is a brand? 3 Levels
Psychological level: a brand is the sum total of interactions
customers have with a product / service…
Perceptual level: brands are a collection of distinctive assets
(icons, colours, jingles, etc.) employed to make products
easier to notice, understand and buy.
Risk-reduction level: brands assists consumers in making
decisions under conditions of uncertainty by ensuring certain
characteristics of a product.
113
The 9 Elements of an Effective Marketing Campaign
1. Diagnose the challenges (qualitative and quantitative)
2. Create clear strategic objectives that are grounded in reality
3. Ensure tight, differentiated positioning
4. Use long term, mass-marketing branding
5. Use targeted performance tools to drive revenue results in the short term
6. Heavy, consistent use of distinctive brand assets
7. Have fantastic creative driven by an amazing brief
8. Use multiple integrated channels – again, driven by a great media brief
9. Greater investment in marketing than competitors
114
Further Reading
•Good Strategy, Bad Strategy: Richard Rumelt
•Positioning: Al Ries + Jack Trout
•Positioning: April Dunford
•How Brands Grow: Professor Byron Sharp
•Influence: The Psychology of Persuasion: Robert Cialdini
•The Choice Factory: Richard Shotton
•Michael Porter: Competitive Strategy
•Michael Porter: Harvard Business Review – What is strategy?
•Hamal and Pralahad: Harvard Business Review – Core Competency
•The Rouser Manifesto 2019: www.rouser.se
•Martin Weigl:
115