sustainable management session 1 product and services – an introduction and relationship with the...

Sustainable Management

Session 1Product and Services – an introduction and relationship with the marketing mix

Colin Love

Director MSc Strategic Marketingc.love@imperial.ac.uk

Outline lecture timetable and content:Monday Wednesday Thursday Tuesday Thursday

19-Nov 11.00 21-Nov 10.00 22-Nov 10.00 27-Nov 14.00 29-Nov 10.00

Lecture Theme Central role of P&S in Complexity of P&S Critical relationship with Forward view Group Presentations

marketing Additional requirements brand - awareness and Designing in green,

Relationship with of services reputation and damage sustainabilty 20 minutes / group

marketing mix New Product Ansoff matrix - for New requirements from

Development - NPD development decisions Social Media and P&S

Blue ocean thinking

In Class activity P&S and the marketing Identification of real Using the Ansoff matrix to Application of Social

mix breakthrough products assess risk of P&S Media

Formula ! and services development risk to support P&S

What is the product?

Case Study and other Assignment brief Case discussion Case discussion Case Discussion Each group should bring

briefs Developing New Products Developing a breakthrough Social Media their presentation on a

Group allocation and Services service strategy to drive flash drive. Hard copy

profit and growth (ISS) is not required

Read case for Nov 21 Read case for Nov 22 Read case for 28 Nov Preparation for Load to desktop at

Commence preparation presentations 29 Nov start of lecture -

for presentations 29 Nov presentation order

random!

Some concepts and discussions:

• What is marketing?• Where do products and services fit in?• What processes are involved?• How do products and services add value to an

organization?• Sales / profits• Goodwill / brand value

• Where are Products and Services going?• How do we manage products and services

4

Marketing – setting the scene

• Is it a science ? – rigorous, measurable, strategic

• Is it an art ? – pragmatic, creative, gut feel

• Key to corporate success – product and service

• Success in the past 10 years based on putting customers first

• Product and Services are the key component of an organisations strategic toolbox

The Green Customer is King

5

Steve Jobs: Innovator – Marketer – Entrepreneur?

Brand Value driven by

products and services

Apple - $182Bn

Coca Cola -$74BN

SINGAPORE GDP $182Bn

6

Marketing as a Business Philosophy

• What is Market Orientation?• The organisation-wide collection, analysis, dissemination and

response to information on competitors and consumers • Customer and Market facing

• Market oriented firms are generally:• More innovative • More profitable

7

The Marketing Mix as the central concept:

• The marketing tool box – classical 4 P’s

• Product• Price• Promotion• Place• 5th P?

A useful explanation of the development and execution of the Marketing Plan

The Marketing Mix

8

Marketing cycle – and important links

Product Life Cycle:

Simplistic New Product Development process - NPD

Today – main focus on hard tactile product:

12

What is a product?

13

Steve Jobs: Innovator – Marketer – Entrepreneur?

"Design is not just what it looks

like. Design is how it works.”

Interview with The New York Times, 2003

14

Product or Service: Can You Tell the Difference?

Product transition to Services

Fast Moving Consumer

goodsHard / tactile

Consumer durableHard / tactile plusService / Warranty

BankingMedicare

EntertainmentIntangible

Inseparable VariablePerishable

Pure PRODUCT

PureSERVICE

Other elements of the Marketing Mix:

16

PRICE – what is it? The cash that customer pays for a good or service

• Includes VAT – ( collected on behalf of Govt)• Includes delivery• Includes installation• Includes duties• Includes local taxes……….• Includes whatever…………• Usually expressed as RRP

Influenced by scope of augmented product features

17

PROMOTION – what is it?

Its not all sex, drugs and rock ‘n’ rollIncludes • Advertising – all media• Sales promotion – all channels• Sales Forces / Direct Marketing • PR

• Testimonials• Sponsorship

• Internet• Social Media

• and it’s a Major Marketing Spend!!

18

Place - Channels of Trade

• A bridge for customer access to the marketing mix• ordering / purchasing• delivery / pick up• leisure

• Places• Physical – retail shops, markets• Non physical – direct channels• direct mail / mail order / tv / direct selling• internet / mobiles / social media -the growth area

19

“Why join the navy if you can be a pirate?”

It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them

20

Group Discussion

• Outline the perceived marketing mix for Formula 1 ?

• 4 groups • Product / price / place / promotion

21

F1 marketing mix:• Product • Price

22

F1 marketing mix:• Promotion • Place

F1 – Marketing Mix:

• What does this tell us about the F1 product?

• Product?• Service?• Hard / Soft• Development?

• Where does the product add value?

Group Assignment – background – the CEO:

• The CEO of a top ‘services’ company is concerned that the contribution from generic growth or further opportunities from M&A / Strategic Alliances is unlikely to generate significant increases in profit in the next 5 years

• The CEO has briefed the companies management team to develop a ‘breakout product or service’ to leverage the existing corporate position and resources to dramatically grow the company

• The CEO is under extreme pressure from shareholders and other key stakeholders to deliver sustainable corporate growth

Group Assignment – the brief – YOU - the management teamThe CEO has briefed the following 4 elements for development:

1. A strategic/marketing review of the current environment

2. The identification of a break out concept which is executable by the organization – either products or services

• rationale for development• competency gaps• resource requirements

3. An outline of the key development steps – set against a timeline and broad financial targets

4. The new concept must be sustainable and meet stakeholder CSR expectations

The concept should have significant scale!!

Group assignment – assessment – Thursday 29th December

A presentation to be delivered in the final lecture. Maximum 20 minutes with 3-5 minutes for Q&A. The presentation should take the following format / role play: • The presentation should represent the CEO publicizing the new concept

and expected incremental contribution to the company. The CEO can have other members of the management team joining the presentation

• The presentation should address the 4 key points in the brief• Assume the audience is made up of shareholders / media / institutions /

EU agencies / other stakeholders

• Use ‘ppt’ to deliver the presentation• Use ‘ppt note pages’ as a summary report• I would expect max 10 content pages• Less is more!!

Case study questions for discussion:

Developing New Products and Services:

Consider:

• NPD• Entrepreneurship• Technology diffusion