[MUSIC] Hi. Welcome to Week 2 of this course of understanding your customers. On Week 1, we covered marketing fundamentals. We've gone through marketing process and how does it go about creating value. You've understood marketing segmentation principles. We've covered some of the marketing research methods. And finally we looked at how to go about targeting. This week we're going to deal with fundamental elements of how to communicate and deliver elements of your value proposition to the customers. And those are critical elements of the marketing mix. In particular, we're going to deal with products. How to think about them, how to manage them. We're going to deal with pricing. What are the fundamental things and items to think about how to set those prices which is a fundamental value in marketing. This is the only one that truly captures all the value we have been creating. And, finally, with distribution, channel design, and how to manage channels. Welcome. If you recall from Week 1, this is the process that we have been walking through. Two fundamental concepts that we dealt with on Week 1 were those of segmentations and differentiation. Finally, that we have chosen the targets that we want to serve and that we have chosen the value proposition to differentiate as much as we possibly can from other competitors. Now we have to position the product. Critical elements to positioning are defining the product, setting the price, and choosing the right distribution strategy for our products or services. So in order to learn about these three key marketing mix elements, we're going to walk through the following outline. First, we're going to start with product definition. We're going to go through the basics of how to go about estimating demand and how to manage product, product line extensions and the product line. Next, we're going to move on to the pricing fundamentals. And we're going to walk through an example of how to go about estimating channel prices and manufacturer prices in the case of Dodot, the diaper manufacturing leader in the Iberian market. Finally, we're going to go into the distribution strategy. How to think about designing channels, and finally, how to think about managing, and especially managing conflict when the conflict shows up. Let's go to session number one. [MUSIC]