to

1

• Introduction
• to
• Integrated Business Management

2
The Following Slides are for Quarter 2

• Establishing the Firms Strategic Direction and
  Setting Up Shop
• (with a focus on brand design considerations)

3
Q2, Establish Strategic Direction

• Analyze market information to evaluate the market
  opportunity
• Consider
• Available financial resources
• Costs to open sales outlets
• Costs to set up and operate factory
• Establish strategic direction
• Formulate corporate strategy
• Formulate functional strategies

4
Q2, Setup Shop Tactical Decisions

• Locate factory
• Build fixed plant capacity
• Open initial sales offices
• Design two brands for target market segments

5
Review Software
6
Things to Think About in Designing Brands
7
Customers Buy Benefits,Not Features
8
Once you select a segment, you must design a
brand to meet the needs of the segment.
Using the computer on the road is important to
the traveler segment. What features would
provide this benefit?
Using the computer on the road
Slim, rugged, portable design
10 color flat screen for portable
Network and Internet connections
9
How far do you go in giving the customers what
they say they want?

• Is more speed, software applications, memory,
  keys on the keyboard, etc. always valued?

Could more of some feature even make a customer
unhappy?
10
What is the elasticity of the peanut?

• Searching for the
• Markets Response Function

11
Suppose you could design the ideal candy bar.
How many peanuts would you put in the candy bar
to make you the happiest?

• None
• A few?
• A bunch?
• A whole lot?

12
Influence of peanuts on candy bar enjoyment
Number of Peanuts
13
The complete presentation is available to
registered instructors.