Latest / The Galaxy of Marketing / How marketing shapes business model and sells without ads?

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How marketing shapes business model and sells without ads? · The Galaxy of Marketing

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  Have you ever wondered how successful companies
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  know exactly what to launch, where to launch
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  it, and how to make people obsessed with it?
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  How do they survive in saturated markets and
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  manage to stay on top? That is exactly what we
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  are going to discuss today in the second episode
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  of the Galaxy of Marketing. I am your captain,
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  Olga K., a marketing major that will guide you
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  through the rules of where, what, and how. So
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  the answer to our question is, we do the market
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  analysis. But don't worry, it's not rocket science.
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  First and foremost, let us learn the difference
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  between market research or market analysis and
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  marketing research. Imagine a long space train
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  that goes to the Moon. Market research is its
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  first part that takes you to the orbit, where
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  it connects to the second part, marketing research,
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  that takes you to the Moon itself. Essentially,
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  the prior focuses on external environment, which
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  consists of market, competition, customers and
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  trends, and answers where and what to sell. The
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  marketing research is the next step that uses
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  market research to understand how to sell the
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  product or service. There are several instruments
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  that help us in this task. We'll take a look
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  at the most universal and convenient ones. I
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  recommend going from external environment to
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  internal. So we will begin from PESTEL. This
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  abbreviation stands for Political, Economical,
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  Social, Technological, Legal and Environmental.
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  These are the primary factors that influence
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  companies' decisions, products offer and marketing
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  strategy. Let us say, Reptiloid Bob decided to
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  open a cosplay shop in an intergalactic space
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  station. For political factor, we should consider
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  the stability of interspecies trade to know how
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  easy it will be to connect suppliers and check
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  intellectual property policies. From the economical
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  point of view, Bob must check the overall economical
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  stability and income levels to know the size
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  of the market and how much money customers are
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  willing to spend on his products. For our example,
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  we take favorable economical conditions with
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  many potential customers, most of which are in
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  the middle segment. Next, social factors. What
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  type of clothing Bob's target audience is typically
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  wearing? Open or closed? What is the social acceptance
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  of cosplay costumes anyways? Are they worn in
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  public places or only in the specific places,
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  on specific occasions? What species like wearing
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  them and what are their unique needs? All of
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  this will further shape Bob's marketing strategy
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  and maybe even location and products themselves.
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  For technological infrastructure knowledge, Bob
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  needs to learn the levels of technological literacy,
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  how integral it is in daily life, and what channels
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  his target group is using. Also, either an opportunity
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  to connect with domestic suppliers and manufacturers,
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  or he should import them. That is the primary
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  and very important thing. Because, well, import
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  costs a different money. Legal factors are tricky,
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  because While they are legal, M profound to know
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  to avoid huge losses and reputational damage.
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  To avoid problems, Bob writes down all the factors
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  that may concern his shop – intellectual property
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  rights, safety standards for materials, data
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  privacy, etc. Ecological factors concern the
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  safety and sustainability of manufacturing, recycling
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  practices, and legal dispose of waste. Congratulations!
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  We have covered an external macroenvironment
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  instrument, PESTEL. Let us move on to our meso
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  or middle -sized environment. Here we will analyze
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  competitors, industry and industry -related trends.
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  According to Porter's five forces framework,
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  there are five key forces that shape mesoenvironment.
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  Threat of new entrants, threat of substitutes,
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  bargaining power of suppliers, bargaining power
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  of customers and rivalry among existing competitors.
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  Sounds scary and overwhelming, Bob. Don't worry,
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  as I said, it's not rocket science. Threat of
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  new entrants is basically how easily new competitors
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  can enter the market. Let us see. Getting products
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  for cosplay, provided that there are lots of
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  manufacturers and import opportunities, is relatively
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  easy. however obtain permission to make popular
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  characters cosplays designs and sell them is
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  quite tricky so in the example conditions is
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  medium but gaining power of suppliers and customers
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  is how easily they can switch from reptiloid
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  bob to his competitors or in case with suppliers
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  dictate the price of materials and manufacturing
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  Substitute products for specialized cosplay shops
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  include readily available crafting materials
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  from hardware stores, thrifted clothing and general
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  hobby suppliers that are widely available. But
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  let's be honest, many people are too lazy to
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  do that on their own and prefer readily made
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  products. The internal space station is where
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  many aliens meet and conduct events, including
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  cosplay events, so let us imagine their rivalry
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  is medium to high. Oof. Let's make a pause here.
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  Don't worry if you feel overwhelmed. It takes
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  time for this information to sink in. But once
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  it does, trust me, it will make your life immensely
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  easier. Ready to continue? Based on what we've
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  learned from external environment, we know that
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  there is high traffic, medium to high interest
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  in cosplay products, lots of nuances when it
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  comes to satisfying all the species' needs, including
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  body shapes, color tones and number of limbs,
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  while the supply is abundant, competition is
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  fierce and demand for customization, which is
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  pricey, is rising. Having discovered all that,
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  Bob decides to build an inclusive cosplay shop
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  with a related product offer and customization
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  offers. Since most of his target audience is
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  in the middle income segment, Bob decides to
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  add default options with an opportunity for customers
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  to customize them on their own. Sounds great!
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  Now, let's move to the thing that you might have
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  already expected to hear about. The SWOT analysis.
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  Yes, I know, it's one of the most beaten tracks
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  in marketing. However, it works. And it doesn't
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  load your brain like the previous instruments
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  do. In strength, we can add inclusive product
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  offer, flexible and accessible pricing, unique
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  in this case, accessible customization, and legal
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  certification. Weaknesses include low awareness,
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  Need for aggressive marketing at the initial
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  stages and limited supply. Opportunities include
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  possibility to play in social tension and hope
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  on a trend for inclusivity, thus building trusted
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  customer relationships from the very beginning
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  and create loyal customer base. Threats facing
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  are that his business model will be copied by
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  competitors and the switching cost will drop
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  to the point that Bob will become irrelevant
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  on the market. We finally finished the analysis.
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  Now and only now we can move to the promotion
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  strategy. So how do we help Bob become the market
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  leader? We would advise Bob to choose the niche
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  strategy and cover the needs of customers that
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  his competitors never pay attention to. Next,
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  it would be wise to choose local social media
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  channels, word of mouth and influencer marketing.
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  He made an emphasis on inclusivity and customer
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  orientation through personalization. So, we could
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  launch something like Your Fit, Your Style, Always
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  Included marketing campaign. Congratulations!
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  We have reached the end of the episode. Thank
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  you for going all this way with me and Bob, who
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  is now a happy small business owner with a viral
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  marketing. See you soon in the next episode!