4 - 0 Today 9:30 to 10:50 Check your group # -- are you in a group? If not – you need to get in...

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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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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 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 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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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 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 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.





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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 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.





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Figure 5-2:

The Marketing Research Process

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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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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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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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Planning primary Planning primary research:research: Research Research

approaches:approaches:ObservationObservationSurveySurveyExperimentExperiment

Contact methodsContact methods Sampling planSampling plan Research Research

instrumentsinstruments




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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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Planning Planning primary research:primary research: Research Research

ApproachesApproaches Contact methods:Contact methods:

MailMailTelephoneTelephoneOnlineOnlinePersonalPersonal

Sampling planSampling plan Research Research

instrumentsinstruments




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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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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

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