Marketing 360 At a Glance Professor Joel Huber BA 360 Marketing Management Fuqua School of Business

Goals of the course Orientation – Skills Frameworks Customer, company, competition Skills Case analysis, group effectiveness Frameworks Analysis, planning and implementation

Why these are important? WSJ September 9, 2002 Three most important criteria for employers by recruiters at business schools: Communication and interpersonal skills Ability to work well in a team Analytic and problem solving skills These are above leadership or creativity!

Case learning Learn to structure an unstructured problem Learn to structure an unstructured team Lean to think laterally—try different options and discard if they do not work Learn to invert your analysis—put the plan first even though it generally is developed last

Marketing math— back of the envelope Variable costs Fixed Costs Market Shares Annual break even Project Pay Back Needed market Share Back of the envelope methods will get you to 90% of your results…they are not sufficient You need to complement these with spreadsheet analyses Idea: Find simple, compelling ways to summarize and think about the problem

Marketing Math--Spreadsheets Spreadsheets allow complex, realistic assumptions They permit a clear vision the future Key ideas: Keep assumptions simple, conservative Develop aggregate statistics from the complex analysis—e.g. 500K credit cards needed to break even for Citibank Spreadsheets and simple statistics are complementary. Both are needed. Note the best analysis never requires a person to look into the details. However, the details are critical for planning and implementation. Budgets are real!

Tools and frameworks: 3C’s Company SWOT Market selection BCG, GE Matrix Marketing Plan Idea of the GE matrix is to use some kind of weighting scheme when you need to evaluate incomparable criteria…useful when you have many options that differ on many difficult to compare dimensions. Marketing plan: Target market, 3C’s +marketing mix + financial projections

Tools and Frameworks: 3 C’s Customer Value in use of your product Lifetime value of a customer margins, retention rates, # of customers Buying process model Who buys vs. who uses Innovators vs. followers Segmentation Value in use is the technical value of a product, for Angiomax we found that that may be harder to sell than it status value Lifetime value of a customer—Consider the value of a OneTouch Basic user buying strips at $.80 each Segmentation is the key idea of marketing. By proper segmentation you serve the markets for each customer and make it more difficult for competitors

Tools and frameworks: 4 P’s Product Defining the product Core benefit—essence Physical characteristics Perceived attributes Extended product Product life cycle analysis Product line analysis Cannibalization Impact on competition

Tools and frameworks: 4 P’s Price Common tools are often flawed (e.g., cost plus) 7 Better steps to pricing Economic value, elasticity based, competitive considerations Segment based pricing (across persons and channels) Psychological factors to consider

Tools and frameworks: 4 P’s Promotion Promotional mix Sales, advertising, sales promotion, p.r. The promotional plan Target market Objectives Message Mix Budget Results Process

Tools and frameworks: 4 P’s Distribution Channel may be more efficient than vertical integration (channel functions) Breadth and depth of channels Managing channel conflict Efficiency is the reason channels exist. New technologies alter than tradeoff. A broad channel is one that gets in as many stores as possible. A narrow channel offers services that cannot be delivered directly Dell is key here…it was the channel that killed Compaq’s ability to copy Dell’s model

Orientation and attitude Marketing should be the eyes and ears of the firm, enabling it to look outward, adapt to new customer needs, competitors’ actions and company competencies Analysis works, hard work matters, you make a difference

Marketing is fun!