BUS7450 Strategic Marketing Management Week 2 Dr. Jenne Meyer

BUS7500  Article reviews 1. A 1 minute summary of the article 2. Key learnings: what information was new to you? What surprised you 3. How would/could the topic affect you personally or at work

2 Developing Marketing Strategies and Plans

What is the Value Chain? The value chain is a tool for identifying was to create more customer value because every firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product.

Phases of Value Creation and Delivery Choosing the value Providing the value Communicating the value

Characteristics of Core Competencies  A source of competitive advantage  Applications in a wide variety of markets  Difficult to imitate

Maximizing Core Competencies  (Re)define the business concept  (Re)shaping the business scope  (Re)positioning the company’s brand identity

What is Holistic Marketing? Holistic marketing sees itself as integrating the value exploration, value creation, and value delivery activities with the purpose of building long-term, mutually satisfying relationships and co-prosperity among key stakeholders.

Questions to Address in Holistic Marketing What value opportunities are available? How can we create new value offerings efficiently? How can we delivery the new offerings efficiently?

Figure 2.1 The Strategic Planning, Implementation, and Control Processes Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-10

Table 2.1 Master Marketers

What is a Marketing Plan? A marketing plan is the central instrument for directing and coordinating the marketing effort. It operates at a strategic and tactical level.

Levels of a Marketing Plan  Strategic  Target marketing decisions  Value proposition  Analysis of marketing opportunities  Tactical  Product features  Promotion  Merchandising  Pricing  Sales channels  Service

Marketing Plan Contents Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls Check out Marketing Plan Template on website.

Evaluating a Marketing Plan Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?

Figure 2.3 The Business Unit Strategic Planning Process

SWOT Analysis

Strategic Planning Earn Executive Sponsorship Liaison to govnt reform Create courses online Globalize Ed Srvcs Engage in emerging markets More targeted mktg using CRM Build global materials Partner w/major medical school Build ROI case study Develop learning consultant competencies Create social networks Impact Ease of Implementation Low Difficult High Easy

Market Opportunity Analysis (MOA)  Can the benefits involved in the opportunity be articulated convincingly to a defined target market?  Can the target market be located and reached with cost-effective media and trade channels?  Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?

Market Opportunity Analysis (MOA)  Can the company deliver the benefits better than any actual or potential competitors?  Will the financial rate of return meet or exceed the company’s required threshold for investment?

Porter’s Generic Strategies

Intel Case Study  8GVi2Fdi4 8GVi2Fdi4

3 Collecting Information and Forecasting Demand

Case Studies

What is a Marketing Information System? A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

Table 3.2 Information Needs Probes  What decisions do you regularly make?  What information do you need to make these decisions?  What information do you regularly get?  What studies do you periodically request?  What information would you want that you are not getting now?  What are the four most helpful improvements that could be made in the present marketing information system?

Internal Records and Marketing Intelligence  Order-to-payment cycle  Sales information system  Databases, warehousing, data mining  Marketing intelligence system

What is a Marketing Intelligence System? A marketing intelligence system is a set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment.

Steps to Quality Marketing Intelligence  Train sales force to scan for new developments  Motivate channel members to share intelligence  Hire external experts to collect intelligence  Network externally  Utilize a customer advisory panel  Utilize government data sources  Purchase information

Sources of Competitive Information  Independent customer goods and service review forums  Distributor or sales agent feedback sites  Combination sites offering customer reviews and expert opinions  Customer complaint sites  Public blogs

Scanning the Marketing Environment  The process of continually acquiring info on the events occurring outside the organization to identify and interpret potential trends.

Scanning the Marketing Environment

Social/Cultural Factors Social Factors  Views of themselves  Views of others  Views of organizations  Views of society  Views of nature  Views of the universe Demographics  Population growth  Population age mix  Ethnic markets  Educational groups  Household patterns

Perspective on the Global Demographic Environment

Economic Factors  Economy – pertains to the income, expenditures, and resources that affect the cost of running a business and household.  Macroeconomic – view of the marketplace  Microeconomic – consumer perspective  Consumer Income  Disposable income – the money a consumer has left, after paying taxes (for food, shelter, clothing, etc.)  Discretionary income – the money that remains after paying for taxes and necessities, used for luxury items

Technological Factors  New innovations of inventions from applied science and engineering  Impact on Customer Value  Cost of technology is decreasing, causing customer value assessment to change  Provides value through development through new products  Change existing products and the way they are made  Pace of change  Opportunities for innovation  Varying R&D budgets  Increased regulation of change

Political/Legal/Regulatory Forces  Protecting competition  Product-related legislation  Company protection  Consumer protection  Pricing-related legislation  Distribution-related legislation  Advertising – and promotion-related legislation

Natural Environment  Shortage of raw materials  Increased energy costs  Anti-pollution pressures  Governmental protections

A Vocabulary for Demand Measurement Market Demand Market Forecast Market Potential Company Demand Company Sales Forecast Company Sales Potential

Forecasting and Demand Measurement  How can we measure market demand?  Potential market  Available market  Target market  Penetrated market

Microsoft Case Study I’m a PC  mPLybw mPLybw  Q Q  E&feature=relmfu

4 Conducting Marketing Research

What is Marketing Research? Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. Syndicated Custom

Types of Research Exploratory Descriptive Causal

The Marketing Research Process  Define the problem  Develop research plan  Collect information  Analyze information  Present findings  Make decision

Step 1: Define the Problem  Define the problem  Specify decision alternatives  State research objectives

Step 2: Develop the Research Plan  Data sources  Research approach  Research instruments  Sampling plan  Contact methods

Research Approaches  Observational and ethnographic  Focus group  Survey  Behavioral  Experimental

Research Instruments  Questionnaires  Qualitative Measures  Technological Devices

Research Class Activity  Share key brands  Yes/No Questions

Questionnaire Do’s and Don’ts  Ensure questions are free of bias  Make questions simple  Make questions specific  Avoid jargon  Avoid sophisticated words  Avoid ambiguous words  Avoid negatives  Avoid hypotheticals  Avoid words that could be misheard  Use response bands  Use mutually exclusive categories  Allow for “other” in fixed response questions

Sampling Plan  Sampling unit: Who is to be surveyed?  Sample size: How many people should be surveyed?  Sampling procedure: How should the respondents be chosen?

Pros and Cons of Online Research Advantages  Inexpensive  Fast  Accuracy of data  Versatility Disadvantages  Small samples  Skewed samples  Technological problems  Inconsistencies

Barriers Limiting the Use of Marketing Research  A narrow conception of the research  Uneven caliber of researchers  Poor framing of the problem  Late and occasionally erroneous findings  Personality and presentational differences

Market Research Can Fail

Table 4.3 Characteristics of Good Marketing Research  Scientific method  Research creativity  Multiple methods  Interdependence  Value and cost of information  Healthy skepticism  Ethical marketing

What are Marketing Metrics? Marketing metrics are the set of measures that helps marketers quantify, compare, and interpret marketing performance.

Table 4.4 Marketing Metrics External  Awareness  Market share  Relative price  Number of complaints  Customer satisfaction  Distribution  Total number of customers  Loyalty Internal  Awareness of goals  Commitment to goals  Active support  Resource adequacy  Staffing levels  Desire to learn  Willingness to change  Freedom to fail  Autonomy

Figure 4.3 Marketing Dashboard

Table 4.4 Sample Customer-Performance Scorecard Measures  % of new customers to average #  % of lost customers to average #  % of win-back customers to average #  % of customers in various levels of satisfaction  % of customers who would repurchase  % of target market members with brand recall  % of customers who say brand is most preferred

Videos  Importance of marketing strategy ( marketing-plan-and-its-importance ) marketing-plan-and-its-importance

Class wrap up  What is due for next week