1. Target (targeting): decisions about which market segments to enter and in what order, and how to use marketing in each
- Strategic Marketing Analysis (2nd Edition) – Chernev – Page 29
2. Tactical Targeting: develops strategies for communicating to already selected targets
- Strategic Marketing Analysis (2nd Edition) – Chernev – Page 31
3. Value Proposition: a business or marketing statement that a company uses to summarize why a consumer should buy a product or use a service
- Strategic Market Management (9th Edition) – Aaker – Page 124
4. Core Competency in Technology: the company's ability to design new technological solutions
- Strategic Marketing Analysis (2nd Edition) – Chernev – Pages 55-56
5. (Sustainable) Competitive Advantage: advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices
- Strategic Marketing Analysis (2nd Edition) – Chernev – Aaker – Page 56
- Marketing Strategy: A Decision-Focused Approach (Seventh Edition) – Walker and Mullins – Pages 40-41
- Google Search - What is competitive advantage in marketing?
6. Product Adoption Process: mental process all prospective customers go through, with the following 7 steps: awareness, understanding, attractiveness, affordability, availability, purchase intent, and purchase
- Strategic Market Management (9th Edition) – Aaker – Page 124
7. Product Repurchase Process: a multistep process in which each step identifies a factor that is essential for repurchase with the following 6 steps: satisfaction, usage frequency, usage quantity, repurchase intent, and repurchase
- Strategic Market Management (9th Edition) – Aaker – Pages 148-149
Google and Apple are currently competing to develop high-tech televisions that can run Apps. They have created new set-top boxes and TV sets, to allow both regular television programming and interactive experiences. These companies need to focus on reaching both new and current clients, by effectively targeting customers and explaining the benefits of this new product.
These companies need to devise a plan to Target their audience. They should focus on Tactical Targeting by, “developing strategies to communicate and deliver the offering’s value to the already selected target customers” (Chernev). These two rivaling companies each have their own loyal following and they already know their target market. Their goal is to find a way to successfully communicate to the already existing market about their new televisions and set-top boxes.
In order to communicate effectively, these companies need to have a strong and understandable Value Proposition. Three simple questions customers ask of companies are, “What do you do, what are the key benefits, and how are you unique or different” (Forbes). If customers do not appreciate the value proposition offered, they will, “move on because they’re time-strapped, and there are so many competitive options” (Forbes). Google and Apple need to explain that their new TVs and set-top boxes are better than the competition because they are the leaders in technology.
Google and Apple both have a Core Competency in Technology, which is a “source of Sustainable Competitive Advantage” (Chernev). They lead the industry and are constantly developing new technology. “A core competence makes a significant contribution to the perceived customer benefits of the end product” (The Economist). This builds trust in the brand, with both new and existing customers.
The new customers these companies will try to persuade will go through the Product Adoption Process. The seven stages include, “Awareness, Understanding, Attractiveness, Affordability, Availability, Purchase Intent, and finally/hopefully Purchase (adoption)” (Chernev). “Understanding” is important because it is the, “customers’ comprehension of the benefits and costs of the offering” (Chernev). If customers do not understand your product, they will not buy it. These companies need to effectively communicate the, “benefits in marketing and sales efforts” (Entrepreneurship) because if the products don’t, “deliver solutions and satisfy needs…they won’t be successful” (Entrepreneurship).
After a customer purchases the new TV, Google and Apple should focus on retaining these customers and encouraging the Product Repurchase Process. One way to tempt customers is to offer loyalty programs which, “aim to entice consumers to make repeat purchases by offering them rewards” (WSJ). Overtime, Google and Apple’s customers will hopefully become brand loyal. As loyal customers, they will continue to purchase from that particular company, as well as, advocate for that company. The more loyal customers they have, the more they will grow and succeed.
- Aaker, David A. Strategic Market Management. 9th ed. New York: Wiley, 1995. Web. 12 June 2016. <https://blackboard.temple.edu/bbcswebdav/pid-4996933-dt-content-rid-52170905_2/courses/51201652400/316201531621_ImportedContent_20150422032019/External and Customer Analysis R7(1).pdf>.
- "Core Competence." The Economist. The Economist Newspaper, 15 Sept. 2008. Web. 12 June 2016. < http://www.economist.com/node/12231124>.
- Chernev, Alexander. Strategic Marketing Analysis. 2nd ed. Place of Publication Not Identified: Brightstar Media, 2007. Web. 13 June 2016.
- Clark, Don. "Silicon Valley Races to Make TV the Next Frontier for Apps." WSJ. N.p., 27 May 2015. Web. 12 June 2016. < http://www.wsj.com/articles/silicon-valley-races-to-make-tv-the-next-frontier-for-apps-1432772306>.
- "Product/Service Features and Benefits - Entrepreneurship.org." Entrepreneurship.org. N.p., n.d. Web. 13 June 2016. < http://www.entrepreneurship.org/resource-center/productservice-features-and-benefits.aspx>.
- Evans, Mark. "Why Value Propositions Are Important (And How To Create Them)." Forbes. Forbes Magazine, 31 Oct. 2013. Web. 12 June 2016. < http://www.forbes.com/sites/markevans/2013/10/31/why-value-propositions-are-important-and-how-to-create-them/#41c81924b0d2>.
- Meyer-Waarden, Lars, and Christophe Benavent. "Making Loyalty Programs Work." WSJ. N.p., 17 Sept. 2008. Web. 13 June 2016. < http://www.wsj.com/articles/SB122160028857244783>.
- Walker, Orville C., and John W. Mullins. Marketing Strategy: A Decision-Focused Approach. 7th ed. Boston: McGraw-Hill Irwin, 2008. Web. 12 June 2016. <https://blackboard.temple.edu/bbcswebdav/pid-4996930-dt-content-rid-52170871_2/courses/51201652400/316201531621_ImportedContent_20150422032019/Businness Strategies and Marketing Implications R1(1).pdf>.