Sprint+2010+Section+09-SS+Week+2

​ Follow-up/Additional Discussion from Week 1...

*Reminder for the students who have to get an "A": We have the ability to resubmit our cases for a 1 letter grade increase!

Books to Check Out:

__The Black Swan: The Impact of the Highly Improbable__ by Nassim Nicholas Taleb

The “Unknown Unknown” is infinitely larger than any knowledge base anyone in your group will have (and will usually be of gigantic magnitude). To try to dampen that effect, by increasing the "known known" and "known unknown", the idea is to have a group of people with a very diverse base of knowledge to anticipate that as much as possible. Have diverse mindsets. There are tons of blind spots.

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__Buyology: Truth and Lies About Why We Buy__ by Martin Lindstrom **

Forming, Storming, Norming and Performing**.

=
A model of group development, first proposed by Bruce Tuckman in 1965, who maintained that these phases are all necessary and inevitable in order for the team to grow, to face up to challenges, to tackle problems, to find solutions, to plan work, and to deliver results. ======


=Week 2: Market Analysis and Segmentation =

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Mirror Neurons
Y&M: “One way companies found to convince consumers that a product was perfect for them was to place in the advertising a person they resembled or wished they did.”

A mirror neuron is a neuron which fires both when an animal acts and when the animal observes the same action performed by another animal (especially by another animal of the same species).

Aspirational Lifestyle brands
A brand that attempts to embody the values and aspirations of a group. - Abercrombie & Fitch, BMW, Polo by Ralph Lauren 

The Gap is a good example of a company that has created multiple sub-brands targeting different market segments, all under one umbrella.

As explained on its website, "Our brands have a simple, common purpose: to make it easy for people to express their personal style. We constantly evolve each brand to better meet our customers' needs — through innovative and inspiring design; through convenient and engaging store experiences; and by communicating with people in a way that connects to how they live, work and play."

The three major brands are Banana Republic (the Luxury brand), Gap (the mainstream brand for all ages - with separate stores for adults, kids and babies) and Old Navy (the Value brand, known for "great fashion at great prices") More recenlty Gap has added new sub-brands: Piperlime, for handbags and shoes, and Atheta, for athletic gear. Gap struggled in 2006 and was criticized for having an unclear brand strategy. But recently Gap Inc has performed well - and in December launched its first holiday-season TV ads after a 3-year hiatus. For more info about the brands and how they're positioned, see:

Ideal and Real Segmentation
Today, the battle is waged in “hyper dimensions” through the use of data mining and computer AI algorithms—with huge dramatic databases, looking for the tiniest connectivity to give a company an edge. E.g., “Buffs” = enthusiasts – the ones who will buy it simply because they need to have the most recent model of something.

"Innovators" go all the way across the graph because they don’t really care what anyone else thinks; the far right side of the "innovators" are really "laggers". The Early adopters are concerned with being cool, and they see the innovators as cool and want to imitate them. “Laggers” are people who will wait to buy an iPhone until it’s being sold for $1 at the Dollar Store.

Segment size evolution over time
 We can be certain that the only constant in business is change. Evolution of a segment is a reality that if we fail to recognize the both subtle and obvious changes, we fail to meet customers' needs. Understanding the value in keeping up with changes in business, allows for customer retention and avoids losing customers and the high cost of attracting new ones. Re-evaluation of segments as customers' needs change,with factors such as social or economic, may allow for a successful strategic customer management.


For those products that are successful, the jobs performed meet some, or better yet, all three of the above criteria. Take for example the camera built into the phone. **Functional:** easy to use, reasonably good quality of the output (the picture). **Emotional:** people enjoy connecting with pictures of past events. **Social:** very easy to share with family, friends, and colleagues.
 * **Functional**
 * <span style="font-family: Arial,Helvetica,sans-serif;">**Emotional**
 * <span style="font-family: Arial,Helvetica,sans-serif;">**Social**

//“New growth markets are created when an innovative company designs a// //product and then positions its ////brand on a job// //for which no optimal// //product yet exists. When you// //segment and measure markets by// //job, your market is larger.”// //Clayton Christensen//

<span style="font-family: Arial,Helvetica,sans-serif;">Endorser Brands
<span style="font-family: Arial,Helvetica,sans-serif;">

<span style="font-family: Arial,Helvetica,sans-serif;">Disruptive vs. Sustaining Innovations
Dear NBC: You can't have your cake and eat it, too. But, nice try.
 * <span style="font-family: Arial,Helvetica,sans-serif;">**Distruptive:** H ow new businesses are created.
 * <span style="font-family: Arial,Helvetica,sans-serif;">**Sustaining:** C ompanies grow established businesses

In 2004 Jay Leno announced that he would be handing off the dynasty of the Tonight Show to Conan O'Brian and that it was a good thing. Wanting to "go out on top" and "spend more time with his cars" Leno reflected that he'd be 59 in 2009 and it would be the right time to transition away from the show. Clearly NBC wanted to sustain The Tonight Show, however, they didn't realize that putting Jay at 10pm they would harpoon their ratings. Clearly NBC's marketing folks were not invited to this discussion.

<span style="font-family: Arial,Helvetica,sans-serif;">** Strategy Revolution - 3 kinds of People: ** **<span style="font-family: Arial,Helvetica,sans-serif;">Fashion Channel Case (TFC): **
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 90%;">**Rule Makers**
 * <span style="font-family: Arial,Helvetica,sans-serif;">**Rule Takers**
 * **<span style="font-family: Arial,Helvetica,sans-serif;">Rule Breakers **

Dana Wheeler, the senior vice president of marketing for The Fashion Channel, crafts three alternative strategies for market segmentation and positioning to present to the networks senior management.

The Fashion channel needs to strengthen its competitive position.

The three alternative approaches for 2007 include:

1. Broad multi-segment approach - Fashionistas, Shoppers/Planners, and Situationalists

2. Single segment focus - Fashionistas

3. Dual segment focus - Fashionistas and Shoppers/Planners

TFC should focus it's marketing strategy on dual segments, Fashionistas and Shoppers/Planners. The Fashionistas are the fashion innovators and the Shoppers/Planners are fashion early adopters. Marketing cutting edge fashion programming which includes reality TV, international fashion, and interviews with up and coming designers will attract like minded advertisers and viewers. To capture viewers from competing networks CNN and Lifetime fashion related shows, TFC should offer exciting and cutting edge fashion programming.

Dana Wheeler should consider getting to know her target segments by observing them in action. Develop programming that includes by observing and interviewing Fashionistas shopping in stores or wearing brands that attract high paying advertisers.