BUS7450 Strategic Marketing Management Week 2

BUS7450
Strategic Marketing
Management
Week 2
Dr. Jenne Meyer
BUS7500
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Article reviews
1.
2.
3.
A 1 minute summary of the article
Key learnings: what information was new to you? What
surprised you
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
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A source of competitive advantage
Applications in a wide variety of markets
Difficult to imitate
Maximizing Core Competencies
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(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
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Strategic
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Target marketing
decisions
Value proposition
Analysis of
marketing
opportunities
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Tactical
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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
http://en.wikipedia.org/wiki/SWOT_analysis
Strategic Planning
Earn Executive
Sponsorship
High
Liaison to
govnt reform
Impact
More targeted
mktg using CRM
Globalize Ed Srvcs
Build global
materials
Engage in
emerging markets
Create
courses
online
Build ROI
case study
Develop
learning
consultant
competencies
Create social
networks
Partner
w/major
medical school
Low
Easy
Ease of Implementation
Difficult
Market Opportunity Analysis (MOA)
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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)
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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
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http://www.youtube.com/watch?v=q8GVi2Fdi4
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
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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
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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
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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
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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
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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
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Views of themselves
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Views of others
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Views of organizations
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Views of society
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Views of nature
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Views of the universe
Demographics
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Population growth
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Population age mix
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Ethnic markets
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Educational groups
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Household patterns
Perspective on the Global
Demographic Environment
Economic Factors
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Economy – pertains to the income,
expenditures, and resources that affect the
cost of running a business and household.
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Macroeconomic – view of the marketplace
Microeconomic – consumer perspective
Consumer Income
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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
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New innovations of inventions from applied science
and engineering
Impact on Customer Value
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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
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Protecting competition
Product-related legislation
Company protection
Consumer protection
Pricing-related legislation
Distribution-related legislation
Advertising – and promotion-related legislation
Natural Environment
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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
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How can we measure market demand?
 Potential market
 Available market
 Target market
 Penetrated market
Microsoft Case Study I’m a PC
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http://www.youtube.com/watch?v=HrmFmPLybw
http://www.youtube.com/watch?v=7hhVjSbV_o
Q
http://www.youtube.com/watch?v=wj5UyZKo2i
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
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Define the problem
Develop research plan
Collect information
Analyze information
Present findings
Make decision
Step 1: Define the Problem
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Define the problem
Specify decision alternatives
State research objectives
Step 2: Develop the Research Plan
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Data sources
Research approach
Research instruments
Sampling plan
Contact methods
Research Approaches
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Observational and ethnographic
Focus group
Survey
Behavioral
Experimental
Research Instruments
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Questionnaires
Qualitative Measures
Technological Devices
Research Class Activity
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Share key brands
Yes/No Questions
Questionnaire Do’s and Don’ts
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Ensure questions are
free of bias
Make questions simple
Make questions specific
Avoid jargon
Avoid sophisticated
words
Avoid ambiguous words
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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
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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
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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
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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
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Awareness
Market share
Relative price
Number of complaints
Customer satisfaction
Distribution
Total number of
customers
Loyalty
Internal
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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
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% 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
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Importance of marketing strategy
(http://businessmarketingstrategies.biz/videos/
marketing-plan-and-its-importance )
Class wrap up
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What is due for next week
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