1 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Dr. Dawne Martin MKTG 550 Business Marketing October 30,2012

 Schedule › Read Chap. 11 & 12 › Read & Prepare to Discuss Dow Corning case › Prepare to work on Pricing Paper  Learning Objectives › Identify issues in business planning and the role of the product life cycle in business planning › Apply Business planning decision making to analyze Microsoft Surface Strategy Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 2

The search for opportunities and the structuring of business entities to exploit those opportunities with current or near term organizational capabilities. Involves:  Creation and analysis of markets and market segments.  Maintenance of relationships with partners: customers, channel members, or suppliers of complementary products and services. 3 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Strategic forecasts  Marketing planning forecasts  Marketing operation forecasts (MOFs)  Sales forecasts 4 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 “Top down” forecast  Usually 3-5 years  More qualitative than quantitative  Attempt to reconcile reality with desired strategic direction 5 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Usually associated with a product or market  Significant inputs from market research and competitive analysis  Attempt to predict what customers and competitors will do  Usually 1-3 year periods 6 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Usually the responsibility of the field marketing organization  Tactical in nature  Source of significant market information, often sourced through customer relationships  An element in sales forecasts  Serves many parts of the organization  Usually 1-3 year periods; continuously updated 7 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Shorter range than MOF  Input to logistical functions, resource planning, etc.  Usually derived from analysis of historical data — assumption that future activities will follow current patterns 8 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Products NewExisting New Existing Markets New Business Core Translation Core Churn Business Development Tracking Grid Exhibit Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Provides the “who, what, where, when and how much information” about current and future business › Core Business › Core Churn › Real New Business › Translation Business 10 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

The TALC and PLC Superimposed TALC - Sales from New Adopters/ Period PLC – Total Sales Time Exhibit Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Ever-changing as new customer groups emerge at different stages:  Development Stage  Introduction Stage  Growth Stage  Maturity Stage  Decline Stage 12 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Activity Development Stage Intro Stage Chasm and Early Growth Tornado – Later Growth Maturity Stage Decline Stage Research & analysis ▲▲▲▲▲▲ Product development ▲▲▲▲▲ New business development ▲▲▲ Translation business dev. ▲▲▲ Core churn business dev. ▲▲▲ Selling & sales support ▲▲▲ Channel development & management ▲▲▲▲ Market communication ▲▲▲ Customer service ▲ Exhibit Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Time Revenue Business Development Bands Over The Product Life Cycle Range of Initial Business Development for Each Offering Range of Major Translation Effort Range of Major Sales-Driven Effort Exhibit Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Where is Microsoft in the PLC?  Why did Microsoft choose to introduce a product such as Surface? What are the major potential markets for Surface?  Why would Microsoft choose to produce Surface itself?  What advantages does it have over Apple iPad?  What is the logic of Apple’s introduction of the 7” iPAD relative to Microsoft’s announcement?  Examine the potential future of the different technology approaches between Apple and Microsoft? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15