4 - 0 today 9:30 to 10:50 check your group # -- are you in a group? if not – you need to get in...
TRANSCRIPT
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Today
9:30 to 10:509:30 to 10:50Check your group # -- are you in a Check your group # -- are you in a group? If not – you need to get in onegroup? If not – you need to get in oneSimulation informationSimulation informationFinish Seinfeld’s “Soup Nazi”Finish Seinfeld’s “Soup Nazi”Notice – Group Pictures today and on Notice – Group Pictures today and on Thursday Thursday Get the “Groups” SettledGet the “Groups” SettledChapter 4Chapter 4
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SimulationTeams for simulation are Teams for simulation are comprised of 2 to 3 students comprised of 2 to 3 students from the same marketing plan from the same marketing plan groupgroupI’ll be around to ask you who are I’ll be around to ask you who are the simulation team membersthe simulation team membersI will give you a team (group #) I will give you a team (group #) and a Game ID allowing you to and a Game ID allowing you to sign-up for the simulationsign-up for the simulation
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The Soup Nazi
GroupSoupNazi2005.pptGroupSoupNazi2005.ppt
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Groups After watching the video (last Thursday) After watching the video (last Thursday) we need to answer the following we need to answer the following questions:questions:What is his value proposition?What is his value proposition?Is there a value chain?Is there a value chain?Is there a value delivery network? Is there a value delivery network? Who’s the segment?Who’s the segment?Who’s the target market?Who’s the target market?What’s the market position?What’s the market position?What marketing mix elements are What marketing mix elements are emphasized?emphasized?
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8 Steps of SBU Strategic Planning
6 Basic Objectives-Profit-Growth-Share-Risk containment-Reputation
MOA – 5Q’s-Benefit articulated to target-Reach target effectively with promotion and price-Capabilities and resources-Deliver value better than competition-ROR meet or exceed company threshold
4 Elements-What’s the business-Who’s the customer-What’s the value to the customer-What should the business become
Strengths/Weaknesses Analysis - Org. Dept., rate, rank
The Mix -Product-Price-Promotion-Place
Porter Generic Strategies-Cost leader-Differentiation-Focus
Opportunity and threat matrix
Probability of success and how attractive is opportunity Probability of occurrence and seriousness of threat
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Opportunity and Threat Matrices
Opportunities and Threats Matrices (external) A market opportunity is an area of buyer need or potential interest in which the company can perform profitably. Opportunity Matrix
MOA Questions 1. Can the benefits involved in the opportunity be articulated convincingly to a defined
target market? 2. Can the market be located and reached with cost-effective median and trade channels? 3. Does the company possess or have access to the critical capabilities and resources
needed to deliver the customer benefits? 4. Can the company deliver the benefits better than any actual or potential competitors? 5. Will the financial rate of return meet or exceed the company’s required threshold for
investment? A market threat is a challenge posed by an unfavorable trend or development that would lead, in the absence of defensive marketing action, to deterioration in sales or profit Threat Matrix
1. Major threat 2. Monitor cell 3. Monitor cell 4. Minor threat
Strengths and Weaknesses (internal)
Four outcomes of a SWOT analysis 1. An ideal business high in major opportunities and low in major threats 2. A speculative business is high in both major opportunities and threats 3. A mature business is low in major opportunities and low in threats 4. A troubled business is low in opportunities and high in threats
Opportunity Threat
Strength and Weaknesses Analysis
Performance ImportanceMajor Minor Neutral Minor Major Hi Med Low
Strength Strength W eakness W eakness
MARKETINGI. Company reputation2. Market share3. Customer satisfaction4. Customer retention5. Product quality6. Service quality7. Pricing effectiveness8. Distribution effectiveness9. Promotion effectiveness 10. Sales force effectiveness 11. Innovation effectiveness 12. Geographical coverage
FINANCE13 Cost or availability of capital14 Cash flow15 Financial stability
MANUFACTURING16. Facilities17. Economies of scale18. Capacity19. Able, dedicated workforce20. Ability to produce on time21. Technical manufacturing skill
ORGANIZATION22. Visionary, capable leadership23. Dedicated employees24. Entrepreneurial orientation25. Flexible or responsive
1 2
3 4
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Value Creation
Value Creation and Delivery Sequence
PromotionPlacePriceProduct
Product Strategy
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The Marketing Process
The Marketing ProcessThe Marketing Process Analyzing Market OpportunitiesAnalyzing Market Opportunities Researching and Selecting Researching and Selecting
Target MarketsTarget Markets Designing Marketing StrategiesDesigning Marketing Strategies Planning Marketing ProgramsPlanning Marketing Programs Organizing, implementing, and Organizing, implementing, and
Controlling the Marketing Effort Controlling the Marketing Effort
The MarketingEnvironment
Chapter 4Chapter 4
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Key Environments
Aspects of the marketing environment:Aspects of the marketing environment: Microenvironment: Microenvironment:
Actors close to the companyActors close to the company MacroenvironmentMacroenvironment
Larger societal forcesLarger societal forces
For the exam, know the actors or For the exam, know the actors or forces comprising each marketing forces comprising each marketing environment and general trendenvironment and general trend
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Actors in the Microenvironment
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Major Macroenvironmental Forces
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The Macroenvironment
Key Demographic TrendsKey Demographic Trends World population World population
growthgrowth Now 6.2 billionNow 6.2 billion Projected to Projected to
reach 7.9 billion reach 7.9 billion by 2025 by 2025
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The Macroenvironment
Key Demographic TrendsKey Demographic Trends Changing age structureChanging age structure
The U.S. population consists The U.S. population consists of seven generational groups. of seven generational groups.
• Baby boomers, Generation X and Baby boomers, Generation X and Generation Y are key groups.Generation Y are key groups.
Distinct segments typically Distinct segments typically exist within these generational exist within these generational groups. groups.
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Figure 4-3:
Seven U.S. Generations
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The Macroenvironment
The Economic EnvironmentThe Economic Environment Affects consumer purchasing power and Affects consumer purchasing power and
spending patterns.spending patterns. U.S. consumers now spend carefully and U.S. consumers now spend carefully and
desire greater value.desire greater value.
Key Economic TrendsKey Economic Trends U.S. income distribution is skewed.U.S. income distribution is skewed.
Upper class, middle class, working class, underclassUpper class, middle class, working class, underclass Rich:Rich: getting richer getting richer
Middle class:Middle class: shrinking shrinking Underclass:Underclass: still poor still poor
Consumer spending patterns are changing.Consumer spending patterns are changing.
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The Macroenvironment
The Natural EnvironmentThe Natural Environment Concern for the natural Concern for the natural
environment has grown environment has grown steadily, increasing the steadily, increasing the importance of these trends:importance of these trends: Shortage of raw materialsShortage of raw materials Increased pollutionIncreased pollution Increased governmental Increased governmental
intervention intervention
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The Macroenvironment
Key Technological TrendsKey Technological Trends The technological environment The technological environment
is characterized by rapid is characterized by rapid change.change.
New technologies create new New technologies create new opportunities and markets but opportunities and markets but make old technologies obsolete.make old technologies obsolete.
The U.S. leads the world in The U.S. leads the world in research and development research and development spending.spending.
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The Macroenvironment
The Political EnvironmentThe Political Environment Includes laws, governmental agencies, and Includes laws, governmental agencies, and
pressure groups that impact organizations and pressure groups that impact organizations and individuals. individuals.
Key trends include:Key trends include: Increased legislation to protect Increased legislation to protect
businesses as well as consumers. businesses as well as consumers. Changes in governmental agency Changes in governmental agency
enforcement. enforcement. Increased emphasis on ethical Increased emphasis on ethical
behavior and social responsibility. behavior and social responsibility.
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The Macroenvironment
The Cultural EnvironmentThe Cultural EnvironmentIs composed of institutions and other forces that affect a Is composed of institutions and other forces that affect a society’s basic values, perceptions, preferences, and society’s basic values, perceptions, preferences, and behaviors.behaviors.Core beliefs are persistentCore beliefs are persistent Passed from parents to children; reinforced by societyPassed from parents to children; reinforced by society Shape attitudes and behaviorShape attitudes and behavior
Secondary cultural values change and shift more easilySecondary cultural values change and shift more easilySociety’s cultural values are expressed through people’s Society’s cultural values are expressed through people’s views of:views of: ThemselvesThemselves OthersOthers OrganizationsOrganizations SocietySociety NatureNature The UniverseThe Universe
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Responding to the Marketing Environment
Reactive:Reactive: Passive Acceptance and Adaptation Passive Acceptance and Adaptation Companies design strategies that avoid threats and Companies design strategies that avoid threats and
capitalize upon opportunities.capitalize upon opportunities.
Proactive:Proactive: Environmental ManagementEnvironmental Management Use of lobbyists, PR, advertorials, lawsuits, complaints, Use of lobbyists, PR, advertorials, lawsuits, complaints,
and contractual agreements to influence environmental and contractual agreements to influence environmental forces.forces.
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Soup Nazi
2GroupSoupNazi2005.ppt2GroupSoupNazi2005.ppt
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Today
9:30 to 10:509:30 to 10:50
Groups and namesGroups and names
How to sign-up for the simulationHow to sign-up for the simulation
Chapter 5Chapter 5
VideoVideo
Groups question and picturesGroups question and pictures
And a surpriseAnd a surprise
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Photos
Group photo --- please write Group photo --- please write your group # on the photo, your group # on the photo, and list the group members and list the group members from left to right from left to right
List names of group members List names of group members notnot in photo after the first set in photo after the first set of names of names
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TeamsWithin your group you will have Within your group you will have two (2) teams (Group 1 will have two (2) teams (Group 1 will have Teams 1 and 2….Group 15 will Teams 1 and 2….Group 15 will have teams 29 and 30)have teams 29 and 30)
The teams will be comprised of 2 The teams will be comprised of 2 to 3 group members each to 3 group members each
You decide who is on what teamYou decide who is on what team
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Simulation Sign-up
Go to: Go to: https://web.marketplace-simuhttps://web.marketplace-simulation.com/home2/purchase/plation.com/home2/purchase/purchase.phpurchase.php
Purchase student licensePurchase student license
Follow hand-out instructionsFollow hand-out instructions
Managing Marketing Managing Marketing InformationInformation
Chapter 5Chapter 5
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Marketing Info. System
Marketing Information System (MIS)Marketing Information System (MIS) Consists of people, equipment, and Consists of people, equipment, and
procedures that gather, sort, procedures that gather, sort, analyze, evaluate, and distribute analyze, evaluate, and distribute needed, timely, and needed, timely, and accurate information accurate information to marketing to marketing decision makers.decision makers.
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Marketing Info. SystemInternal Data is Internal Data is gathered via customer gathered via customer databases, financial databases, financial records, and records, and operations reports.operations reports.AdvantagesAdvantages of internal of internal data include quick/easy data include quick/easy access to information.access to information.DisadvantagesDisadvantages stem stem from incompleteness from incompleteness or inappropriateness or inappropriateness of data to a particular of data to a particular situation.situation.
Internal dataInternal data
Marketing Marketing intelligenceintelligence
Marketing Marketing researchresearch
Developing Developing InformationInformation
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Marketing Info. SystemMarketing intelligenceMarketing intelligence is the systematic is the systematic collection and analysis collection and analysis of publicly available of publicly available information about information about competitors and trends competitors and trends in the marketing in the marketing environment.environment.Competitive Competitive intelligence gathering intelligence gathering activities have grown.activities have grown.Many sources of Many sources of competitive info. exist.competitive info. exist.
Internal dataInternal data
Marketing Marketing intelligenceintelligence
Marketing Marketing researchresearch
Developing Developing InformationInformation
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Marketing Info. System
Sources of Sources of Competitive IntelligenceCompetitive Intelligence
Company Company employees employees
InternetInternet
GarbageGarbage
Published Published information information
Competitor’s Competitor’s employees employees
Trade showsTrade shows
BenchmarkingBenchmarking
Channel members Channel members and key customers and key customers
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Something Neat
Cipher SystemsCipher Systems
http://www.cipher-sys.comhttp://www.cipher-sys.com
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Marketing Info. System
Marketing researchMarketing research is is the systematic design, the systematic design, collection, analysis, collection, analysis, and reporting of data and reporting of data relevant to a specific relevant to a specific marketing situation marketing situation facing an organization.facing an organization.
Several steps are Several steps are involved in the involved in the marketing research marketing research process.process.
Internal dataInternal data
Marketing Marketing intelligenceintelligence
Marketing Marketing researchresearch
Developing Developing InformationInformation
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Figure 5-2:
The Marketing Research Process
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Marketing Info. System
Step 1:Step 1: Defining the problem and Defining the problem and research objectivesresearch objectives Don’t confuse the symptoms Don’t confuse the symptoms
of the problem with its cause of the problem with its cause when defining the problem.when defining the problem.
Exploratory, descriptive, and Exploratory, descriptive, and causal research each fulfill causal research each fulfill different objectives.different objectives.
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Marketing Info. System
Step 2:Step 2: Developing the Developing the Research PlanResearch Plan Research Research
objectives objectives guide the guide the determination determination of specific of specific information information needs.needs.
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Marketing Info. System
Step 2:Step 2: Developing the Research Plan Developing the Research Plan Research proposals outline the Research proposals outline the
type of data needed and the type of data needed and the research plan.research plan. Secondary data:Secondary data: Information Information
collected for another purpose collected for another purpose which already exists. which already exists.
Primary data:Primary data: Information collected Information collected for the specific purpose at hand for the specific purpose at hand
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Marketing Info. SystemSecondary data Secondary data sources:sources: Government informationGovernment information Internal, commercial, Internal, commercial,
and online databasesand online databases PublicationsPublications
Advantages:Advantages: Obtained quicklyObtained quickly Less expensive than Less expensive than
primary dataprimary data
Disadvantages:Disadvantages: Information may not Information may not
exist or may not be exist or may not be usable.usable.
Secondary Secondary datadata
Primary dataPrimary data
Types of DataTypes of Data
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Marketing Info. System
Planning primary Planning primary research:research: Research Research
approaches:approaches:ObservationObservationSurveySurveyExperimentExperiment
Contact methodsContact methods Sampling planSampling plan Research Research
instrumentsinstruments
Secondary Secondary datadata
Primary dataPrimary data
Types of DataTypes of Data
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Marketing Info. System
Research approaches:Research approaches: Observation research using people or Observation research using people or
machinesmachines Mystery shoppers, traffic counters, web Mystery shoppers, traffic counters, web
site “cookies” are some examples. site “cookies” are some examples. Discovers behavior but not motivations.Discovers behavior but not motivations. Ethnographic research expands Ethnographic research expands
observation research to include observation research to include consumer interviews. consumer interviews.
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Marketing Info. System
Planning Planning primary research:primary research: Research Research
ApproachesApproaches Contact methods:Contact methods:
MailMailTelephoneTelephoneOnlineOnlinePersonalPersonal
Sampling planSampling plan Research Research
instrumentsinstruments
Secondary Secondary datadata
Primary dataPrimary data
Types of DataTypes of Data
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Marketing Info. System
Step 3Step 3 of the of the Research Process: Research Process: Implementing the Implementing the Research Plan Research Plan Involves collecting, Involves collecting,
processing, and processing, and analyzing information.analyzing information.
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Marketing Info. System
Step 4Step 4 of the Research Process: of the Research Process: Interpreting Interpreting and and Reporting Reporting the Findingsthe Findings
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The Persuaders
9 minute video highlighting 9 minute video highlighting the impact marketing the impact marketing (political) research can have (political) research can have on the way we interpret on the way we interpret issuesissues
FinalPersuaders.wmvFinalPersuaders.wmv
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GroupsBased on your knowledge of the Based on your knowledge of the research process, what types of research process, what types of marketing research might you marketing research might you employ in your marketing plan?employ in your marketing plan?
Why?Why?
Group Pictures--- SmileGroup Pictures--- Smile
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Pop-Quiz Time
Pop-Quiz #1Pop-Quiz #1