1. Marketing Strengths & Weaknesses

2. 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

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

5. Fine tune your Promotion & Sales efforts:

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

7. Promo Budget

8. Advertising Budget Drives Awareness
$3M buys 49%
New products are newsworthy events. The buzz creates 25% awareness at no cost.

9. Sales Budget Drives Access
$3M buys ~31% (w/1 product) 33% (w/ 2+ products)

10. Sales Budget & Time Allocations
Decide on how many F2F salespersons, Webstirs, Customer support & Distributors…will have:
How much effort will be focused on Individual Brands w/in channels:
OUTSIDE sales-meet face-to-face (cost $120K/each)
INSIDE sales-works leads & operates website & customer support systems (cost $50K/each)
Distributors: push product (cost $100K/each)

11. Direct R&D Product Position Age & Quality New product development <B
Performance
SIZE
Product Position
Age & Quality
New product development
High High Eight
<
<
<
Low Low One
Quality Age Prdt Line

12. 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

13. How good are your goods…
The Big Q
How good are your goods…

14. R U Meeting Consumers’ Expectations?

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

16. 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)

17. 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

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

20. Complete Consumer Report @ CapSim
Intro |  Perceptual Map 1 |  Perceptual Map 2 |  Demand Analysis |  Capacity Analysis |  Margin Analysis |  Consumer Report

21. Portfolio Analysis & BrandPlans

22. Acre (Low End Segment) Criteria Weight Current Expected Objectives
Tactics (Rnd1)
Price
53.0%
$21.00
$ $24.50
Price is #1 buying criterion and must be kept relatively low to stay competitive. As a differentiator, our company will keep prices in the upper third of the range.
Price will not be changed for the initial rounds, then will be slowly reduced to account for "inflation" and improvements in automation.
Age
24.0%
7.0
4.6
Keep age relatively close to ideal by updating the R&D parameters every 3-4 rounds.
Current age is on the fringe of the acceptable range, have to update the brand in Round 1 even if slightly.
Position
16.0%
Pfmn 3.0,
Size 17.0
Pfmn 2.2,
Size 17.8
This will be the slowest-drifting segment on the market. Changes to positioning will only be needed to update the brand's age and stay within a reasonable range of the ideal spot.
Since age needs to be updated ASAP, minor changes are needed in Round1:
* Pfmn +0.2
* Size -0.2
Reliability, MFBT
7.0%
14k
12k - 17k
Reliability is not a major factor for consumers, can be upgraded only if resources allow.
No change, keep at 14k.