Market Orientation

The number 1 marketing rule: be market oriented. The number 2 rule: be aware that you are not a fair representation of the market. Crucial tips here, and tools for segmenting and targeting markets well

1. MARKET ORIENTATION
Iñigo Gallo
@InigoGallo
[email protected]

2. hard(er) times for CMOs?

3. hard(er) times for CMOs?

4. hard(er) times for CMOs?
CEOs will fire CMO first if
growth targets not met

5. what has happened?

6. tactics
strategy

7. basic pillars of a marketing plan
analysis strategy tactics

8. analysisstrategy
tactics
basic pillars of a marketing plan

9. analysisstrategy
productprice
placepromo
basic pillars of a marketing plan

10. analysisstrategy
productprice
place
(promo)
COMMUNICATIONS
basic pillars of a marketing plan

11. the dictatorship of tactics
of the slides are dedicated to tactics

12. need to bring equilibrium back
analysis strategy tactics

13. tactics
strategy
market
orientation

14. marketing
& sales

15. #1 marketing rule
constant effort to
be market oriented

16. what are some of the barriers to
be market oriented?

17. #2 marketing rule
you do not represent
the market

18. 51%
79%
56%
46%
87%
74%
7%
25%
28%
25%
14%
69%
92%
99%
86%
59%
86%
94%
19%
36%
42%
53%
34%
85%
88%
96%
82%
56%
90%
80%
9%
21%
7%
25%
16%
70%
%.cons%.b2c%.b2b
how frequently do you use…

19. 51%
79%
56%
46%
87%
74%
7%
25%
28%
25%
14%
69%
92%
99%
86%
59%
86%
94%
19%
36%
42%
53%
34%
85%
88%
96%
82%
56%
90%
80%
9%
21%
7%
25%
16%
70%
%.cons%.b2c%.b2b
how frequently do you use…

20. 51%
79%
56%
46%
87%
74%
7%
25%
28%
25%
14%
69%
92%
99%
86%
59%
86%
94%
19%
36%
42%
53%
34%
85%
88%
96%
82%
56%
90%
80%
9%
21%
7%
25%
16%
70%
%.cons%.b2c%.b2b
how frequently do you use…

21. 12
how many brands do you follow on SM?

22. 12
19
how many brands do you follow on SM?

23. 12
19
7
how many brands do you follow on SM?

24. 10%
13%
16%
12%
48%
14%
15%
26%
18%
27%
%.cons%.b2c
how frequently do you interact w/ them?

25. 10%
13%
16%
12%
48%
14%
15%
26%
18%
27%
%.cons%.b2c
how frequently do you interact w/ them?

26. MBA 2021 (n = 50)
howfrequentlydo MILLENIALS / you
interactwithbrandson social media?
0
5
10
15
20
25
Daily1/week1/month1/yearNever
MillenialsYou

27. MBA 2021 (n = 50)
howfrequentlydo MILLENIALS / you
interactwithbrandson social media?
0
5
10
15
20
25
Daily1/week1/month1/yearNever
MillenialsYou

28. getting to know the customer

29. 87%
13%
70%
30%
big data drives higher
marketing conversion
rates?
big data automatically
improves marketing
effectiveness?
Source: Dimensional Research
managers believe they
have to gather as much
info as possible from their
customers
%
yes yes
big data –big hopes

32. dataanalysisdecisions
(to be made)

35. decisions
(to be made)
Whoare mytop clients?
Wherecan I findmore likethem?
Whatdo theyvalue?
Howto persuade them?
…

36. dataanalysisdecisions
(to be made)

37. decisions
(to be made)
Whoare mytop clients?
Wherecan I findmore likethem?
Whatdo theyvalue?
Howto persuade them?
…
segmentation&
targeting

38. what is market segmentation?

39. homogeneouswithin
heterogeneousacross

40. substantial
stable
accessible
actionable
identifiable
able to identify them and
measure their characteristics
we’re able to come up with
products & campaigns for them
large enough for the company
to serve it profitable
reachable through
communication and distribution
over a long enough period of
time
Source: Segmentation and Targeting, Sunil Gupta
characteristics of good segmentation

41. variables for segmentation
demographicspsychographicsbehavioral
benefits
sought
region
climate
age
occupation
familysize
religion
ethnicity
lifestyle
personality
activities
interests
opinions
loyalty
product
knowledge
purchase
occasion
buyingstage
convenience
value
status
Source: Segmentation and Targeting, Sunil Gupta

42. which variables to use and when?
demographicspsychographicsbehavioral
benefits
sought

43. which variables to use and when?
demographicspsychographicsbehavioral
benefits
sought

44. how to uncover the unobservables?
demographicspsychographicsbehavioral
benefits
sought
region
climate
age
occupation
familysize
religion
ethnicity
lifestyle
personality
activities
interests
opinions
loyalty
product
knowledge
purchase
occasion
buyingstage
convenience
value
status
Source: Segmentation and Targeting, Sunil Gupta

45. how to uncover the unobservables?
consumer
research
being on the
field
A/B testing

49. once segmented: who to target?

50. Market size
Market access
Addressability
Number of clients
Willingness to pay
Growth
Speed of contact
Speed of decision
Use of alternatives
Seen as help
Ease of use
Impact is observable
Target 1Target 2Target 3321
123
---
123
321
223
223
223
223
P
C
R
Profitability
Reachability
Compatibility/
Credibility

51. COMPANY CLIENTS
COMPE-
TITORS
COLLABO-
RATORS
CONTEXT
Segmentation Targeting Positioning
Product
Price
Customer
acquisition
Customer
growth
Customer
retention
PROFITS
Market
analysis
Designing
the offer
Promotion
P-Distribution
Go to
market
sustainable servingeveryoneinvolved

52. MARKET ORIENTATION
Iñigo Gallo
@InigoGallo
[email protected]