You’re will be responsible for: As MARKETING MANAGER You’re will be responsible for: Planning, implementing & controlling your marketing strategy Target & Position Product Place Promotion Price

Marketing also selects media vehicles & message weights AND determines composition of sales/distribution staff ..and allocation of their efforts by segment & Brand

Marketing Managers become one-w/ Relationships betw Price & demand Price & margin Promotion budget & awareness Sales budget & accessibility A/R policy & demand

As R&D Mgr Responsible for: Product Position Age & Quality Performance SIZE Responsible for: Product Position Age & Quality New product development High High Eight < < < Low Low One Quality Age Prdt Line

Drift Establish product positioning to meet customer demand Build quality & reliability (MTBF) into products Ensure age of product meets customer demands Create new products Drift

How good are your goods… Now Evaluate How good are your goods…

Strategic Thinking- the ten big ideas 4. Portfolio theory- GE-(three-by-three matrix, using business strength & market attractiveness as variables). The Boston Consulting Group (BCG) introduced its two-by-two matrix-(invest in the stars, divest the dogs, milk the cows, and solve the question marks)

Portfolio Analysis Which Brands should receive more/ less/ no investment-Based on: Product Position/ Potential Profitability/ Margins Market-Growth/Market- Share Matrix Competitive Strategy

G.E Strategic Planning Model Business Strength Strong Average Weak High Low Industry Attractiveness Business Strength Index Industry Attractiveness Index * Market Share * Market size * Price Competitiveness * Market Growth * Product Quality * Industry Profit Margin * Customer Knowledge * Amount of Competition * Sales Force and Effectiveness * Seasonality * Geographic Advantage * Cost Structure

Boston Consulting Group’s Growth-Share Matrix STARS High PROBLEM CHILD Product-Market Growth (%) CASH COWS DOGS Low 10x 4x 2x 1.5x 1x .5x .2x .1x High Relative Market Share Low

R U Meeting Consumers’ Expectations?

Evaluate Your Company’s Marketing Situation & Develop Your Brand Plans

Next Big Q How good are you in making your goods…

Buy or sell capacity of product lines Schedule production for each line Buy or sell capacity of product lines Purchase machinery to automate our facilities Establish your workforce complement

Current Ideal

Right-Sizing Capacity: FAIR SHARE ESTIMATES: 3-4 Rnds out:

A Historical Consideration… RE: Projected Share LOW END: 0-1 product killed.. 0-1 repositioned or introduced TRADITIONAL: 3-6 repositioned from High…0-1 killed…1-2 introduced SIZE: 0-1 killed, 0-1 repositioned to Traditional, 1-2 introduced PERFORMANCE: 1-2 killed, 0-1 repositioned to Traditional, 0-1 introduced HIGH: 1-3 killed or repositioned to Traditional, 1-3 new products arrive in rounds 2 or 3

Round 3- Forecast Segment Competitive Density LOW END: 6 products=rivalry unchanged TRADITIONAL: 9 products, w/ 3 repositioned= increased competition SIZE: 7 products, w/ 2 new= increased competition PERFORMANCE: 4 products, w/ 1 new= reduced competition HIGH: 6 products, w/ 2 new= increased competition 6 4 9 6 7

-Given Round 3 Scenario- How should adjust your production capacities? Round 0-1st shift Capacity Round 3-Unit Demand Traditional 1800 1068 Low End 1400 2081 High End 900 668 Performance 600 823 Size 469

Optimum Automation Levels? Current Ideal

Use of 2nd Shift? Current Ideal

Should You Run 2nd shift –when Labor Costs 50% higher? Will we make less because labor costs are 50% higher for 2nd shift? Another Q: If we double sales will we double our net margin? Answer by using your proformas: 1- On production spreadsheet build 1200 units 2-On Marketing display- FORECAST 1200 UNITS 3.-ON Proforma Income statement- note NET MARGIN – 4- On production spreadsheet build 2400 units 5-On Marketing display- FORECAST 2400 UNITS 6.-ON Proforma Income statement- note NET MARGIN –

2nd shift gets a free ride-only has to pay labor premium… The Big Answer 1st shift- covers all fixed costs- 2nd shift gets a free ride-only has to pay labor premium…

Evaluate Your Company’s Production Situation & Formulate Strategies to Optimize Quality & Efficiencies

Can I be excused my brain is full..