MBA 517 Fall 99 The Summary Session Go forth and prosper! - David Perry

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MBA 517 Fall 99The Summary SessionGo forth and
prosper!- David Perry

• Your Host David Perry
• December 9, 1999

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Agenda 3 Things

• Summary of the Course
• PharmaSim Performance Review Awards
• Teacher Evaluation

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Summary Key Elements

• Foundation for understanding marketing
• Balance
• Theory/Real World
• Left Brain/Right Brain
• Individual/Team
• Tools
• Kotler text
• Cases (and current marketing events)
• PharmaSim

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Marketing Mgmt 11 Thoughts

• Its the customer stupid (industry of the
  individual)
• Marketing is becoming more vital to everyone
• Intuition Analytics (right brain/left brain)
• The 4Ps make sense..so remember them
• Marketing Plan Objectives gt Strategies gt
  Tactics
• Have a plan but be ready to roll with the punches
• Always have a POV and a rationale to support it
• Brothers and sisters you need to evangelize!
• It takes more than 1 to tango (partnerships,
  outsource)
• Internet has HUGE impact on marketing
• 2 KEY things in future 1) Relationship 2)
  Integrated

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Marketing Basics

• 3 stages Entrepreneurial Formulated, Intre..
• Mix 4 Ps Product, Price, Place, Promo
• Orgs Mktg Concepts Production, selling
• Customer Sat Attract/retain, measure, deliver
• Relationship Integration Keys for future
• Strategic Planning BCG Matrix, GE model, SWOT
• Marketing Plan OBJ gt STRAT gt TATICS

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BCG Matrix
Stars
Question ???
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Office
WebTV
Market Growth Rate
Cash Cow
Dogs
Ancient Lands
Project
0
1X
0.1X
10X
Relative Market Share
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Marketing Research/Behavior

• Marketing research process define gt present
• Primary vs. secondary data
• Forecasting and demand measurement
• Market vs. Company
• Current vs. Future
• Buying behavior stages of process
• problem recognition gt post purchase

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Forecasting Demand Measurement

• Market Demand vs. Company Demand
• Current Demand
• Market Potential
• Industry Sales Market Shares
• Future Demand (forecasting)
• Surveys of buyer intent
• Salesforce opinions
• Experts
• Past sales
• Test market

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Case Goodyear Aquatread

• Areas of Focus
• Tire industry Goodyears position/role
• Consumer Behavior
• Market Segmentation
• Distribution Channels
• New Product Introduction
• Product features

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Competition

• POSITIONS
• Dominant (Intel)
• Strong (Sony TV)
• Favorable (Levi Straus)
• Tenable (NEC/Packard Bell Alamo)
• Weak (Mon.Ward)
• Nonviable (Renault in US market)

• REACTIONS
• Laid-back
• Lotus 1-2-3 vs. Excel on Windows platform
• Selective
• Gatorade (vs. PowerAde)
• Tiger
• HP LaserJet Gerber
• Stochastic
• Gardenburger

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Segmentation gt Targeting gt Differentiation
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Positioning

• Creation of an offerings perceived image in a
  customers mind
• Al Ries Jack Trout
• Not what you do to offering, what you do to mind
  of customer
• 4 strategies
• Strengthen current position (Wolverine boots)
• Grab an unoccupied position (DiGiorno Pizza
  Callaway)
• Deposition or reposition the competition
  (MasterCard)
• Exclusive club (Chrysler and the Big Three)
• 4 errors under gt over gt confused gt doubtful
• Unique Selling Proposition (USP)

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Positioning Statement

• Develop an effective one
• Know it like the back of your hand
• .and stick to it (long term play)!
• Key elements
• Simple
• Relevant
• Credible
• Fresh
• OFFERING is for TARGET who need BENEFIT
• Can translate to tagline (Avis we try harder)

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Product Life Cycle
Maturity
Growth
Decline
Units Sold
Intro
Time
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Marketing Strategies

• Introduction
• Rapid skimming (Philips HDTV)
• Slow skimming (Crestron touch screens)
• Rapid penetration (AOL)
• Slow penetration (Larger size Snickers)
• Growth (examples from Ford and Volvo)
• Quality, features, styling (Ford Explorer Eddie
  Bauer)
• New Models/Flankers (Ford Expedition Excursion)
• New market segments (Volvo XC wagon)
• Lower price (Volvo S40 _at_ 22,000 base)
• Decline Restage vs. abandon (Carmex Converse)

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Ben Keylin Empty Space

• The Promotions Triad

Partners
Empty Space
Money
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Case Microsoft Works

• Areas of focus
• Positioning
• Product design international/globalization
• Segmentation by country, by customer, etc.
• Microsoft culture

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Five Models of EntryInto Foreign Markets
Indirect Exporting
Amount of commitment, risk, control, and profit
potential
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Global MarketingHighly matrixed highly strung
Worldwide Headquarters Business Unit A Business
Unit B Business Unit C
Global Mktg Team
Asia Subsidiaries
EMEA Subsidiaries
Americas Subsidiaries
Regional HQ
Regional HQ
Regional HQ
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Products Classification

• Buy frequently immediately
• Low priced
• Many purchase locations
• Includes
• Staple goods
• Impulse goods
• Emergency goods

• Buy less frequently
• Gather product information
• Fewer purchase locations
• Compare for
• Suitability Quality
• Price Style

• Special purchase efforts
• Unique characteristics
• Brand identification
• Few purchase locations

• New innovations
• Products consumers dont want to
  think about.
• Require much advertising
• personal selling

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Product Mix
Width - number of different product lines
Length - total number of items within the lines
Depth - number of versions of each product
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Two-Way Product-Line Stretch Marriott Hotels
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Brand Strategies
New Brands
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Price - Quality Strategies
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The Three Cs Modelfor Price Setting
Costs
Competitors prices and prices of substitutes
Customers assessment of unique product features
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Promotional Pricing

• Loss-leader pricing
• Special-event pricing
• Cash rebates
• Low-interest financing
• Longer payment terms
• Warranties service contracts
• Psychological discounting

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Case Zenith HDTV

• Role of marketing research in formulating
  strategy for the introduction of an innovation
• To buy or not to buy research
• Types of market research
• Scenario Analysis (assessing mkt potential)
• Conjoint Analysis
• Forecasting demand
• Aspect ration study (testing prototypes)

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Integrated Marketing Marketing Communications Mix
Advertising
Personal Selling
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Effective Communications
Step 1. Identifying the Target Audience
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
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Push vs. Pull Strategy
Producer
Push Strategy
Producer
Pull Strategy
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Advertising Objectives

• Specific Communication Task
• Accomplished with a Specific Target Audience
• During a Specific Period of Time

Informative Advertising Build Primary Demand
Persuasive Advertising Build Selective Demand
Reminder Advertising Keeps Consumers
Thinking About a Product.
Comparison Advertising Compares One Brand to
Another
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Marketing PR

• Objectives
• Build Awareness (its coming!)
• Build Credibility (thought leadership)
• Stimulate sales force, channel (buzz)
• PR strategy
• Proactive
• Reactive

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Online Marketing Channels
Electronic Presence Corporate Website Marketing
Website
Advertising Online Place Ads in Special Sections
of Online Services Place Ads in Certain Internet
Newsgroups Buy Online Ads That Pop Up While
Consumers are Surfing
Participating in Forums, Newsgroups Web
Communities Forums Discussion Groups on
Commercial Online Services Newsgroups Internet
Version of Forums Web Communities Sites Where
Members Exchange Views Online
Using E-Mail and Webcasting Customers Send
Questions, Suggestions Complaints Via
E-Mail Webcasting Automatic Downloading of
Information to PCs
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USA Today Online

• Focus on 4 components
• Consumer who, change, brand
• Advertisers web vs. direct mail pricing
• Company core competencies
• Competition who advantages
• Watch the numbers closely
• Think about new way of setting advertising fees
• Prescription for Gannett
• Stay the course
• Exploit the web

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Post Mortem/Learnings

• Kotler text is good base use it!
• Guest speakers provide different view
• 3 cases vs 4 more depth and discussion
• Integrate lectures PharmaSim more
• Needed a creative original/current project

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Parting Thoughts

• Pass the ball not the buck
• Maybe shes/hes right
• Greatest darkness comes just before the dawn
• Open a few doors for someone else
• Go or at least think global
• Criticism take it offline
• Hire cultivate great people (admins are key
  here)
• Grow your left and right brain
• Get a life ( a balanced one)
• The brand called YOU (www.brandyou.com)

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PharmaSim Results