marketing management 2011.02 mm

Marketing ManagementStephan Langdon, MBA, M.Ed.

Class 2

The Customer Value Proposition

Perceived

benefit to

customer:

Functional

Emotional

Social

Self-Expressi

ve

PPT 1-3

Three V’s Approach to Marketing

Define the value segmentDefine the value segment

Define the value proposition

Define the value proposition

Define the value networkDefine the value network

REFLECTIONHow does MUJI demonstrate the Three V’s Approach to Marketing

Define the value segmentDefine the value segment

Define the value proposition

Define the value proposition

Define the value networkDefine the value network

Core Business Processes• Market-sensing process• New-offering realization process• Customer acquisition process• Customer relationship management process• Fulfillment management process

PPT 1-7

A Business Strategy

Where to CompeteThe product-market investment decision

How to CompeteValue Assets & Function area

proposition competencies strategies and programs

Figure 1.1

A Business Strategy – Figure 1.1 Page 5

Functional Strategies and Programs

• Manufacturing strategy

• Distribution strategy

• Brand-building strategy

• Communication strategy

• Information technology strategy

• Sourcing Strategy

PPT 1-8

• Global strategy

• Logistical strategy

• Quality program

• Customer relationship

program

• Social technology strategy

Criteria to Select Business Strategies• Is the ROI attractive?

• Is there a SCA?

• Will the strategy have success in the future?

• Is the strategy feasible?

• Does the strategy fit with the other strategies of the firm?

PPT 1-9

A Holistic Marketing Framework

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2-10

The Strategic Planning, Implementation, and Control Processes

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2-11

The Strategic Planning Gap

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2-12

The Product-Market Investment Strategy

• Invest to grow (or enter a product market)

• Invest only to maintain the existing

position

• Milk the business by minimizing

investment

• Recover as many of the assets as possible by liquidating or divesting the business

PPT 1-13

Ansoff ’s Product-Market Expansion Grid(memorize for exam and be able to apply)

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2-14

Opportunity Matrix

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2-15

Threat Matrix

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2-16

Activity• Please apply the opportunity and threat matrix to

Muji and Gallo

Strategic Uncertainties

Strategic Uncertainties• Will a major firm enter?• Will a tofu-based dessert

product be accepted?• Will a technology be

replaced?• Will the dollar strengthen

against an off-shore currency?

• Will computer-based operations be feasible with current technology?

• How sensitive is the market to price?

Strategic Decisions• Investment in a product market• Investment in a tofu-based

product

• Investment in a technology

• Commitment to off-shore manufacturing

• Investment in a new system

• A strategy of maintaining price parity

Strategic Uncertainties

What will thefuture demand?

• Performance improvements?

• Competitive technological developments?

• Financial capacity of health care industry?

The Role of External Analysis

External

Analysis

Strategic Decisions• Where to compete

• How to compete

Analysis• Information-need areas

• Scenario analysis

Identification• Trends/future events

• Threats/opportunities

• Strategic uncertainties

Figure 2.1

Chapter 2 - External and Customer Analysis PPT 2-21

Customer AnalysisSegmentation

• Identification of customer groups that respond differently from other groups to competitive offerings. Thus, a successful segmentation strategy requires the conceptualization, development, and evaluation of a targeted competitive offering.

• Who are the biggest customers? The most profitable? The most attractive potential customers?

Figure 2.2

Chapter 2 - External and Customer Analysis PPT 2-22

Segmentation

How should segments be defined?

• Benefit Segmentation

• Price Sensitivity

• Loyalty

• Applications

• Multiple Segments versus Focus Strategy

PPT 2-23

The Brand Loyalty Matrix: Priorities

LowLoyalty

ModerateLoyalty

Loyal

Customer

Non-customer

Medium

Lowto

Medium

High

Highest

Zero

High

Figure 3.4

Customer Motivation Analysis

IdentifyMotivations

Group andStructure

MotivationsAssess

MotivationImportance

Assign StrategicRoles to Motivations

Figure 2.6

Population and Demographics• Population growth• Population age mix• Ethnic markets

• Educational groups• Household patterns• Geographical shifts

Natural Environment

Shortage of raw materials

Increasedenergy costs

Anti-pollutionpressures

Governmentalprotections

Consumer Environmental Segments

True Blue Greens (30%)

Greenback Greens (10%)

Sprouts (26%)

Apathetics (18%)

Grousers (15%)

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Secondary Commercial Data Sources

Nielsen

Information Resources, Inc.

MRCA

Arbitron

Simmons

SAMI/Burke

Technological Environment

Pace of change

Opportunitiesfor innovation

Varying R&D budgets

Increased regulationof change

Political-Legal Environment

Increase in business legislation

Growth of specialinterest groups

3-31

MIS Systems Provide Information on Buyer Preferences and Behavior:Dupont’s Pillow Study

Pillow Segments• 23% - stackers• 20% - plumpers• 16% - rollers or folders• 16% - cuddlers• 10% - smashers

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What is a Marketing Information System (MIS)?

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.

Internal Records and Marketing Intelligence

Order-to-PaymentCycle

Databases,Warehousing, Data Mining

MarketingIntelligence

System

Sales Information

System

Steps to Improve Marketing Intelligence

Train sales force to scan for new developments

Train sales force to scan for new developments

Motivate channel members to share intelligence

Motivate channel members to share intelligence

Network externallyNetwork externally

Utilize a customer advisory panelUtilize a customer advisory panel

Utilize government data resourcesUtilize government data resources

Purchase informationPurchase information

Collect customer feedback online

Collect customer feedback online