Marketing & Sales

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Módulo 2 :

Entendiendo el Mercado

Programa de Formación en Marketing Cono Sur

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Understand the Market

Understandthe

Market

Understandthe

Market

MarketMarketFocusFocus

Designed to Answer Principal Question:

How should we focus our marketing efforts in the Value-Adding Chains of our chosen industry/market segments in order to build competitive advantage for our business?

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Agenda

Día 1– Introduction/Objectives

– Review of Key Understand the Market Concepts

– Team Review of Current VAC Map & Dynamics

• List key Business Strategy inputs

• Update VAC Diagram to reflect new inputs

• Verify Value Driver and power distribution

• ID current allocation of Marketing Effort

– Brainstorm: Ways to enhance DP influence on decisions

• Capture all ideas

• Prioritize top 5

– Trends Analysis: Capture and Prioritize Trends affecting relevant VACs

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Agenda

Día 2– Competitive Analysis

• Review new info from each “expert”• Chart likely competitor moves to thwart Project success• Prioritize by “Likelihood” & “Significance”• Brainstorm DuPont responses to high-priority competitive moves

– Customer Analysis• Create “Sources of Competitive Advantage” & “Unmet/Poorly met

Needs” matrix (3-4 levels of VAC)• Brainstorm potential DuPont Value-Add responses

– Mktg Effort Future State: ID ideal allocation of Mktg effort along VAC – Decision: What is Targeted Level for Mktg Planning emphasis?– Project Path Forward Exercise: Defining Next Steps– Pre-Work for Segmentation Workshop– Reflections

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• Objectives for thisTraining• Data Gathering Techniques for Latin America• Review of Key VAC Concepts• Refining Value Chain Process Maps• Brainstorming Influence Strategies• External Trend Analysis• Competitor Analysis• Customer Analysis• VOC & Market Insights• Path Forward Exercise• Pre-Work for Marketing Competency Training Session

#3: Segmentation, Targeting & Positioning

Understand the Market Roadmap

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Objectives of Understanding the Market

In the context of the Business Direction:• Fully understand the “players”, operation and

dynamics of the relevant Value-Adding Chain(s) • Assemble and analyze VOC, competitor and

external trend data for insights into where and how to create competitive advantage by adding value

• Qualitatively and quantitatively identify business/market opportunities

• Decide where to focus Marketing & Sales efforts along the Value-Adding Chain

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Additional Objectives for this Session

• Determine the work that must be done to complete Understand the Market for each Project and establish Path Forward for accomplishing that work

• Understand the Pre-work assignment for Session #3, Segmentation, Targeting and Positioning

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Understand the Market

Key questions to be answered: • What are the dynamics in those Value Chains that may

create opportunities we can address?– Player roles, flow of materials and decisions, trends

• What do we know about customers that can guide our efforts to create greater value and influence them in favor of our offerings?

• What should we expect from our competitors? How can we benefit from anticipating their actions?

• How should we focus our marketing efforts in the Value-Adding Chains of our chosen industries in order to capture greater value for DuPont?

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SIPOC - Understand the Market

Customer Needs, Values & Critical Success Factors

Competitors’ Strategic Thrusts, Capabilities & Limitations

Key Trends which Must be Planned for

Identification of Info. Gaps & a plan to address

Rigorous foundation for Market and Sales Strategy Development

Agreement as to where we will focus resources along VAC

Value Chain Analysis

External Trend Analysis

Competitor Analysis

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VOC Data & Insights

Business Strategy/Goals

Prioritized CTQ’s(translated from VOC)

Channel Partner Insights

Industry/Market Data & Insights

Customer Satisfaction Data

Market Research Data

Competitor Literature and Data

Economic & Societal Insights

Customer Analysis

“Planning Focus” Decision

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Key Marketing Strategy Questions

Where will we compete?

How will we compete?

What will it take to win?

These Questions must be addressed in the context of Business Strategy

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Business Strategy Input

• Business Definition / Purpose• Overall Strategies(e.g. Brand Portfolio Strategy)• Strategic Intent• Key Issues Impacting the Business• Resources Available• Limitations or Constraints• Industry Structure Analysis• Current and Future Industry Attractiveness• Chosen Product/Market Combinations• Measurable Goals and Objectives• Financial Performance and Expectations

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Some Indicators of the Need to Refresh Marketing Strategy

• A key patent will soon expire, opening the field to competitors• Market growth and/or market share are declining• Mergers among your customers increase their power• Significant change in competitor’s strategy or results• Segmentation is “fuzzy”, not universally understood• There’s no alignment on a clear-cut marketing strategy• Price increases aren’t “sticking” or cause defection• Environmental regulations threaten to make core products obsolete• The market is saturated; few green field opportunities remain• Price becomes king, and the market isn’t recognizing differentiation• Business conditions demand improved competitive performance

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Workshop 1:Business Strategy Inputs

Objective: Full understanding of the Business Strategy environment affecting the Team’s project

Output: A list of Business Strategy considerations/parameters/ limitations/guidelines the Team must incorporate in its strategic thinking

Steps: Review the list of sample Business Strategy inputs (Slide #11)

Write down the Business Strategy inputs that affect this project; rephrase as appropriate to business situation as you know it

Decide which one require validation and note plan accordingly Review Slide #12 for possible relevance to Team’s project; incorporate

as appropriate Designate spokesperson to characterize Team’s Business Situation for

the class.

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Value Adding Chain

Definition:

A progress of steps from fundamental raw materials through goods purchased by end-use consumers

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Value Adding Chain (VAC) Analysis

• A critical step in Strategic Marketing: Guides planning, segmentation, allocation of resources, activity

• Potential competitive advantage from understanding the VAC better than competition!

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• Objectives for this Training• Review of Key VAC Concepts• Refining Value Chain Process Maps• Brainstorming Influence Strategies• External Trend Analysis• Competitor Analysis• Customer Analysis• VOC & Market Insights; Data Gathering Techniques for

South America• Path Forward Exercise• Pre-Work for Session #3: Segmentation, Targeting &

Positioning

Understand the Market Roadmap

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Value Adding Chain Analysis Summary

Understanding the VAC is a foundation for effective marketing Planning:

• Describes the various levels of the Value Chain in terms of roles, power, critical success factors, values and needs

• Recognizes value-adding activities throughout

• Forces attention beyond the transactional customer—all the way to the End User/Consumer, the ultimate determiner of value

• Assesses how well the Value Chain is working (effectiveness and efficiency) and opportunities for improvement

• Prompts real consideration of how your business should allocate/focus marketing resources along the VAC to become more influential in selection of products/services used

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Push and Pull Strategies

Pull Strategy: Create demand downstream, thus pulling the offering through the channel with preference/specification

TransactionalCustomer Value Driver

Push Strategy: Focus effort on moving product into the VAC through marketing/sales efforts with transactional customers; little attention to what happens after that.sale to Transactional Customer.

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Push / Pull Strategies

• Breadth of offering types

• Differentiation of offering types

• Complexity of offering

• Dispersion of customer demand

• Complexity of customer purchase decision

• Availability of channels

• Availability of communication vehicles

• Positioning appeal

• Availability of substitutes

Push If Pull IfBroad

NarrowLow HighComplex SimpleHigh LowComplex Simple

Many FewFew Many

Commodity Premium

Few Many

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Workshop 2: Value Adding Chain (VAC) Update

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Value Adding Chain

Definition:

A progress of steps from fundamental raw materials through goods purchased by end-use consumers

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Simplified Value-Adding Chain

CONSUMER

END

USER

TransactionalCustomer

ValueDriver

DuPont

Revenue

Offering

Information

Raw MaterialSupplier

Customers

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VAC Player Definitions

• Transactional Customer– That level in the chain that we exchange goods and services for

revenue

• Value Driver– That level in the chain that best interprets end-user needs and

values into specifications and represents (sometimes dictates) them along the chain

• Power Center– That level of the chain having the ability to affect what happens in

the industry

– May be same level as Value Driver

• VAC Influencer - People or entities(who may not purchase/handle products) that

influence the buying decisions made by targeted customers

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Workshop 2: Value Adding Chain (VAC) Update

Objective: Update each Team’s “Process Map” of how the VAC operates

Output: An easily-understood drawing showing:

-- VAC Players & relationships along the VAC; approx. # per level

-- Key flows of Value Adding activity

-- Key influencers

-- Notes indicating key dynamics

-- Value Driver & estimated % of decision making power re inputs like ours at each level

-- Current allocation of DP marketing effort at each level of VAC

Steps: Review current draft of VAC diagram; list new inputs from Team pre-work

exploration Incorporate new information into outputs listed above; update VAC Process

Map accordingly Prepare report back: overview of Project VAC and key learnings.

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VAC Dynamics Questions

• What level is the value driver?• What level has the power currently?• How would you anticipate that power distribution might change in

the future? Why?• Do we anticipate structural changes due to:

– Acquisitions/Divestitures -Technology Shifts

– Backward/Forward Integration -Failures / New Entrants

– Alliances

• How might we gain power and influence along the chain to create and extract greater value?

• Where along the chain is the business currently focused? • Where should it be focused in the future?

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Capturing Value Downstream

Direct Customer

YourBusiness

End Customer

• Does our offering provide benefit/value to the End Customer? If not, what is the last level of the VAC to recognize DuPont’s contribution to value?

• Does our Direct Customer recognize (and acknowledge) the benefit/value our offering delivers to the End Customer? To his Customer? Is he capturing value for benefits/uniqueness of what we provide?

• What might we do to help our direct customers (and other VAC Players) be more successful?

• Do downstream customers have a reason to specify our product to our Direct Customer? Or to exert other pull-through influence? Do we have a means of explaining tos them the value of specifying DP inputs?

Distribution

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Value Adding Chain Analysis Summary

Understanding the VAC is a foundation for effective marketing Planning:

• Describes the various levels of the Value Chain in terms of roles, power, critical success factors, values and needs

• Recognizes value-adding activities throughout

• Forces attention beyond the transactional customer—all the way to the End User/Consumer, the ultimate determiner of value

• Assesses how well the Value Chain is working (effectiveness and efficiency) and opportunities for improvement

• Prompts real consideration of how your business should allocate/focus marketing resources along the VAC to become more influential in selection of products/services used.

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Workshop 3:Brainstorming Ways DP might Gain Influence

Objective: Broad early-stage thinking about possibilities for improving DP’s Influence / Value Add / Value Capture in the VAC

Output: A prioritized list of possible strategies/actions that would improve DP’s position

Steps: Designate Scribe Encourage open participation by all Team members Generate un-evaluate list of possibilities Review list and highlight those that seem most “exciting” and

somewhat practical

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Workshop 3:Brainstorming Guidelines

• Everyone participates equally• No criticism / evaluation of ideas during idea collection phase• Don’t be limited by practicality• As ideas dwindle, take a “new perspective” on the problem:

– Turn it upside down or inside out

– Paint it a new “color” or “texture”

– Think about it from POV of customer at each level of VAC

– Think about the most dreaded moves competitors might make and what they suggest you might do to preclude them

• Write everything down; you’ll come back later to sort it all out• Be sure to highlight your best ideas for easy reference later

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• Objectives for this Training• Review of Key VAC Concepts• Refining Value Chain Process Maps• Brainstorming Influence Strategies• External Trend Analysis• Competitor Analysis• Customer Analysis• VOC & Market Insights; Data Gathering Techniques for

South America• Path Forward Exercise • Pre-Work for Session #3: Segmentation, Targeting &

Positioning

Understand the Market Roadmap

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Marketplace Trends

Marketing Strategy is most effectively developed when external trends are well understood, or anticipated, and used to advantage

– Significant trends must be planned for and met with a timely, appropriate response

– Anticipating and responding to trends more effectively than competitors can provide significant competitive advantage

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Si Usted no piensa en el futuro

es porque no quiere tener uno.

Proverbio chino

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Para talar un árbol hacen falta

10 minutos para cortarlo

y 2 horas para afilar el hacha.

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ESCENARIOS

LOS ESCENARIOS SON HERRAMIENTAS PARA ORDENAR

LAS PERCEPCIONES DE LA DIRECCION

SOBRE LOS CONTEXTOS FUTUROS ALTERNATIVOS

DENTRO DE LOS CUALES LA EMPRESA

PODRIA TENER QUE OPERAR Y TOMAR DECISIONES.

DENTRO DE CADA ESCENARIO SE MANIFIESTAN Y RELACIONAN LAS

TENDENCIAS DEL CONTEXTO DE UNA MANERA DETERMINADA.

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MATRIZ DE IMPACTOS (I)

IMPACTO

OPORTUNIDADES Y AMENAZAS

A

B

O A

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MATRIZ DE IMPACTOS (II)

IMPACTO

GRADO DE PROBABILIDAD

DE OCURRENCIA

A

B

A BPLANES

LISTOS

PLANES

CONTINGENTES

ACTUACION

INMEDIATA

MONITOREAR

MONITOREAR

A

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EL DIAMANTE

DETERMINANTES DE LAS VENTAJAS COMPETITIVAS NACIONALES

ESTRATEGIA, ESTRUCTURA DE

LA EMPRESA

RIVALIDAD

INDUSTRIAS RELACIONADAS

Y DE APOYO

CONDICIONES DE LOS FACTORES PRODUCTIVOS

CONDICIONES DE LA DEMANDA

GOBIERNO

IMPRE- VISTOS

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DOTACIÓN DE FACTORES

RECURSOS HUMANOS

RECURSOS FISICOS

RECURSOS DE CONOCIMIENTO

RECURSOS DE CAPITAL

INFRAESTRUCTURA

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JERARQUÍAS ENTRE FACTORES

FACTORES BASICOS

FACTORES GENERALIZADOS

FACTORES AVANZADOS

FACTORES ESPECIALIZADOS

LA VENTAJA COMPETITIVAMAS SIGNIFICATIVA Y SUSTENTABLE

ESTA DADA POR LOS FACTORESAVANZADOS Y ESPECIALIZADOS

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COMPOSICIÓN DE LADEMANDA INTERNA

ESTRUCTURA SEGMENTARIA DE LA DEMANDA

COMPRADORES ENTENDIDOS Y EXIGENTES

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INFLUENCIAS SOBRE LAS CONDICIONES DE LA DEMANDA INTERNA

ESTRATEGIA, ESTRUCTURA Y RIVALIDAD DE LA EMPRESA

SECTORES CONEXOS Y DE APOYO

CONDICIONES DE LOS FACTORES

CONDICIONES DE LA DEMANDA

LA INTENSA RIVALIDAD HACE QUE LA DEMANDA INTERIOR SEA

MAYOR Y MAS REFINADA

UN GRUPO DE RIVALES CREA UNA IMAGEN Y UN RECONOCIMIENTO

DE LA NACION COMO COMPETIDORA IMPORTANTE

LOS AVANZADOS MECANISMOS DE CREACION DEFACTORES ATRAEN A ESTUDIOSOS EXTRANJEROSY LA PARTICIPACION DE EMPRESAS EXTRANJERAS

QUE TIRAN DE LOS PRODUCTOS DE LA NACION

LA IMAGEN MUNDIALMENTE ACREDITADA DE LOS SECTORES CONEXOS Y DE APOYO REBOSA PARA BENEFICIAR A UN SECTOR

LOS SECTORES CON EXITO INTERNACIONAL FABRICAN PRODUCTOS COMPLEMENTARIOS TIRAN DE LA DEMANDA EXTERIOR PARA EL

PRODUCTO DEL SECTOR

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TAMAÑO Y PAUTAS DE CRECIMIENTO DE LA DEMANDA

TAMAÑO DE LA DEMANDA INTERIOR

TEMPRANA DEMANDA INTERIOR

TEMPRANA SATURACION

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SECTORES CONEXOS Y AUXILIARES

EL TERCER DETERMINANTE GENERICO

DE LA VENTAJA NACIONAL EN UN SECTOR

ES LA PRESENCIA EN LA NACION

DE SECTORES PROVEEDORES O SECTORES CONEXOS

QUE SEAN INTERNACIONALMENTE COMPETITIVOS

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INFLUENCIAS SOBRE EL DESARROLLO DE SECTORES CONEXOS Y DE APOYO

ESTRATEGIA, ESTRUCTURA Y RIVALIDAD DE LA EMPRESA

SECTORES CONEXOS Y DE APOYO

CONDICIONES DE LOS FACTORES

CONDICIONES DE LA DEMANDA

UN GRUPO DE RIVALES DOMESTICOS ESTIMULA LA FORMACION DE MAS

PROVEEDORES ESPECIALIZADOS Y DE SECTORES CONEXOS

LA DEMANDA INTERNA, GRANDE OCRECIENTE, ESTIMULA EL

CRECIMIENTO Y LA PROFUNDIZACIONDE LOS SECTORES PROVEEDORES

LAS DOTACIONES DE FACTORES ESPECIALIZADOS SON

TRANSFERIBLES A SECTORES CONEXOS Y DE APOYO

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ESTRATEGIA, ESTRUCTURAY RIVALIDAD

NATURALEZA DEL SISTEMA COMPETITIVO

FORMAS DIRECTIVAS VINCULADAS A UNA ESTRATEGIA COMPETITIVA

METAS Y MOTIVACIONES EN LINEA CON LAS FUENTES DE VENTAJAS COMPETITIVAS

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INFLUENCIAS SOBRE LA RIVALIDAD DOMÉSTICA

ESTRATEGIA, ESTRUCTURA Y RIVALIDAD DE LA EMPRESA

SECTORES CONEXOS Y DE APOYO

CONDICIONES DE LOS FACTORES

CONDICIONES DE LA DEMANDA

LA ABUNDANCIA DE FACTORES O LOS MECANISMOS ESPECIALIZADOS

DE CREACION DE FACTORES GENERAN NUEVOS PARTICIPANTES

USUARIOS DE PRESTIGIO MUNDIAL SE INCORPORAN A LOS SECTORES

PROVEEDORES

LA TEMPRANA INTRODUCCION DEL PRODUCTO INDUCE A

INCORPORACIONES

SURGEN NUEVOS PARTICIPANTES A PARTIR DE SECTORES CONEXOS

Y DE APOYO

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DETERMINANTES DE LAVENTAJA COMPETITIVA NACIONAL

CONCEPTOS GENERALES

LAS FUENTES DE LA VENTAJA COMPETITIVA DIFIEREN MUCHO ENTRE LOS SECTORES Y ENTRE LOS SEGMENTOS DE UN SECTOR

SE CONSIGUEN Y MANTIENEN LAS VENTAJAS COMPETITIVAS MEDIANTE LA MEJORA, INNOVACION Y PERFECCIONAMIENTO

ES NECESARIO CONTAR VENTAJAS EN TODO EL DIAMANTE

LA UNIDAD BASICA PARA EL ESTUDIO ES EL SECTOR

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EL SISTEMA COMPLETO

ESTRATEGIA, ESTRUCTURA Y

RIVALIDAD DE LA EMPRESA

SECTORES CONEXOS Y DE

APOYO

CONDICIONES DE LOS FACTORES

CONDICIONES DE LA DEMANDA

CASUA- LIDAD

GOBIERNO

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Marketplace Trends Model

External

Industry

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Some Types of Trends

• Cultural• Social• Economic• Technological• Political• Legal

• Regulatory• Business Management• Aesthetic• Environmental• Customer behavior

– Preferences & Aversions– Purchasing Practices

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LOS 7 ENTORNOS CRÍTICOS

LA ORGANI- ZACION

ENTORNO DE LOS

CLIENTES

ENTORNO DE LOS

COMPETI-DORES

ENTORNO ECONOMICO

ENTORNO LEGAL

ENTORNO POLITICO

ENTORNO TECNOLO-

GICOENTORNO

SOCIAL

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Workshop #4: Trends Affecting your VAC

Objective: Identify trends affecting Industry and VAC that need to be considered in the Strategic PlanOutput: A prioritized list of relevant trends, ranked according to likelihood of occurrence and significance to the businessSteps: With reference to the Industry/VAC in which you plan to participate: Have each Team member write relevant trends on Post-It® notes, one per sheet. Capture as many as come to mind. (Be sure to reflect on VAC interviews you’ve conducted) Arrange Post-It® notes on a 2x2 matrix

Vertical = Degree of Certainty, Lo to Hi Horizontal = Impact on the business, Lo to Hi

As a Team, confirm location of each trend Capture a list of trends remaining in upper right quadrant, starting in top right corner Highlight 3-5 that have greatest leverage on Project success

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External Trend Analysis Map

Minimum Resources

If Any

Forget It

Must Plan For

Low

High

Maintain Flexibility In

Plan

HighImpact on Business

Degreeof

Certainty

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Prioritized List of TrendsIndustry/VAC = ______________________

Trends in order of Significance to our Project:• Trends working FOR us:

• Trends working AGAINST us: