tom gillpatrick, ph.d. juan young professor of marketing & executive director, filc
Post on 19-Jan-2016
29 Views
Preview:
DESCRIPTION
TRANSCRIPT
Tom Gillpatrick, Ph.D.
Juan Young Professor of Marketing & Executive Director, FILC
Master International Management Program
School of Business Administration
Portland State University
Global Marketing
Fall 2004Fall 2004
MIM 515MIM 515
10-Nov10-Nov
Agenda
• Market Research
• Competitor Analysis
• Colgate Case
• Samsung Case
• Case Analysis Discussion
• Quiz
Marketing Research Defined
Marketing research is the planning, collection, and analysis of data relevant to marketing decision making and the
communication of the results of this analysis to management.
Market Research Examples
Market strategy• Segmentation• Profiling• Market simulation
Corporate marketing• Branding• Image tracking• Positioning• Web site evaluation
Product marketing• Packaging tests• Naming• Price/voluem
estimation• Advertising
effectivenessChannels• Dealer programs• Direct sales evaluation• Win/loss studies
International Research Griggs-Anderson/Gartner Consulting
Market Research Examples
Product development• Concept testing• Feature valuation• Consumer ethno-
graphics• Beta tests
Customer satisfaction• Tracking studies• Models• Transaction
monitoring
• Factors influencing a manager’s decision to use research information.– Conformity to prior expectations.– Clarity of presentation.– Research quality.– Political acceptability within the firm.– Lack of challenge to the status quo.
Managing the Research Process
Forward Research Design
Define the research problem
Check secondary sources
Determine primary research strategy
Estimate research cost
Design questionnaire
Define sample
Implement research design
Analyze data
Write report
Turning the Process on Its Head
The backward approach I advocate rests on the premise that the best way to design usable research is to start where the process usually ends and then work backward.
1. Determine how the research results will be implemented (this helps to define the problem).
2. To ensure the implementation of the results, determine what the final report should contain and how it should look.
3. Specify the analyses necessary to fill in the blanks in the research report.
Turning the Process on Its Head
4. Determine the kind of data that must be assembled to carry out these analyses.
5. Scan the available secondary sources and/or syndicated services to see whether the specified data already exist or can be obtained quickly and cheaply from others. (While you are at it, you should observe how others have tried to meet data needs like your own.).
6. If no such easy way out presents itself, design instruments and a sampling plan that will yield the data to fit the analysis you have to undertake.
Turning the Process on Its Head
7. Carry out the field work, continually checking to see whether the data will meet your needs.
8. Do the analysis, write the report, and help management make it have its intended effects.
What else does this process do?
Backward Research Design
Determine what key decisions are to be made using research results
Determine what information will help management make the best decisions
Prepare prototype report and ask management if this is what will best help them make their decisions
Determine the analysis that will be necessary to fill in the report
Determine what questions must be asked to provide the data required by the analysis
Ascertain whether the needed questions have been answered already
Backward Research Design
Design sample
Implement research design
Analyze data
Write report
Assist management to implement the results
Evaluate the research process and contribution
Advantages of Manager Participation in Backward Research
1. It serves to co-opt managers into supporting the research work should it be criticized later by others.
2. It deepens their understanding of many of the details of the research itself and their appreciation of both its strengths and its weaknesses.
3. Working with hypothetical tables can make the manager eager for the findings when they do appear and ready to implement them.
Advantages of Manager Participation in Backward Research
4. Working with contrasting tables makes it unlikely that the manager will be startled by surprising results, an outcome that sometimes causes a manager to reject an entire study.
5. Participation will also help reveal to management any limitations of the study. In my experience, managers are often tempted to go far beyond research “truth” when implementing the results, especially if the reported truth supports the course of action they prefer to take anyway.
What’s Important Depends on Your Perspective
Marketing people put more emphasis on price while engineering puts more perceived customer value in display.
+1
0
-1
Price Display
Engineering Perspective
Marketing Perspective
Relative Importance
Estimating Market Potential
• Current market demand– Demand for our firm
– Demand for all competitive firms
• Potential demand– Not aware– Not available– Unable to use– Lacks benefits– Not affordable
Demand
MarketDemand
CompanyDemand
Estimating Current Demand
• Total market potential
• Area market potential
• Industry sales
• Market share
Ninety Types of Demand Measurement (6 X 5 X 3)
All salesAll sales
Company salesCompany salesProduct line salesProduct line sales
Product form salesProduct form salesProduct item salesProduct item sales
Industry salesIndustry sales
ProductProduct levellevel
TerritoryTerritoryRegionRegion
U.S.A.U.S.A.
CustomerCustomer
WorldWorldSpaceSpacelevellevel
Short run Medium run Long run
Time levelTime level
Factors Driving Market Growth
• Current factors– Felt need– Perceived risk– Innovativeness– Type of decision
• Product positioning– Relative advantage– Relative cost– Relative complexity– Ease of use
• Market influences– Observability– Trialability– Marketing effort
• Faster growth– High– Low– High– Individual
– Attractive– Low– Minimal– Easy
– Easily seen– Easy to try– Extensive
Performance Measurement
Internal Measures External Measures• Unit Cost• Mfg. Overhead• Mktg. Expense• R&D Expense• Inventory Turn• Sales/Employee• Day’s Act.’s Receivable• ROS, ROI, ROE• Asset Turnover
• Market Share• Relative Share• Customer satisfaction• Market Coverage• Product awareness• Relative quality• Relative Price• Customer Preferences• Relative New Product• Response Time
Market Strategy, Marketing Mix, & Performance
Market Strategy
Market Mix Strategy
Customer Satisfaction
Net Marketing
Contribution
Roger Best, 1997Market-Based Mgt.
Fundamental Market-Based Strategies & Profit Growth
Strategies to Grow Demand
Manage Market Share
Grow Customer
Purchases
Enter or ExitMarkets
Lower VariableCost per Customer
Increase MarketingEfficiency
Net Marketing Contribution
Market
Demand
Market Share
Revenue Variable per - Cost perCustomer Customer
MarketingExpense
X X -=
COMPETITOR ANALYSISCOMPETITOR ANALYSIS
What You Should Expect From A Competitor Analysis
•Which competitors does our strategy pit us against?
•What are competitor strengths and weaknesses? (Core capabilities, ability to grow, ability to respond)
•What are your competitors strategies?
•What kind of counter moves will the competitor accept? Which moves has it already countered?
Induce your competitors not to invest in Induce your competitors not to invest in those products, markets and services those products, markets and services where you expect to invest the most … where you expect to invest the most … that is the fundamental rule of strategy.that is the fundamental rule of strategy. Bruce Henderson, Founder of BCGBruce Henderson, Founder of BCG
There is nothing more exhilarating than There is nothing more exhilarating than to be shot at without result.to be shot at without result. Winston ChurchillWinston Churchill
Five Forces Determining Segment Structural Attractiveness
Potential Entrants(Threat ofMobility)
Potential Entrants(Threat ofMobility)
Buyers(Buyer power)
Substitutes(Threats ofsubstitutes)
Suppliers(Supplier power)
Suppliers(Supplier power)
IndustryCompetitors
(Segment rivalry)
PORTER’S FIVE FORCES MODELDeterminants of Supplier PowerDifferentiation of Inputs:Switching Costs:Presence of substitute inputs:Supplier concentration:Importance of volume to supplier:Cost relative to total purchases in the industry:Impact of inputs on cost or differentiation:Threat of forward vs. backward integration:
Determinants of Buyer PowerBuyer concentration vs. firm concentration:Buyer volume:Buyer switching costs vs. firm switching costs:Buyer information:Ability to backwards integrate:Substitute products:Pull through:
Entry BarriersEconomies of scale:Proprietary product differences:Brand identity:Switching costs:Capital requirements:Access to distribution:Absolute cost advantages:Proprietary learning curve:Access to necessary inputs:Proprietary low-cost product design:Government Policy:Expected retaliation:
SubstitutesRelative price/performance of substitutes:Switching costs:Buyer propensity to substitute:
Rivalry DeterminantsIndustry growth:Fixed costs/value added:Intermittent overcapacity:Product differences:Brand identity:Switching costs:Concentration & balance:Informational complexity:Diversity of competitors:Corporate stakes:Exit barriers:
Price sensitivity:Price/total purchases:Product differences:Brand identity:Impact on quality/performance:Buyer Profits:Decision makers incentives:
Competitive rivalry
Competitor Analysis & Competitive Positioning
• Competitive Environment– Market Entry/exit– Buyer/supplier power– Substitutes/rivalry
• Competitive Position– Competitor intelligence– Competitor analysis– Competitive benchmarking
• Competitive advantage– Cost advantage– Quality advantage– Marketing advantage
Competitive Position & Competitive Advantage
• Cost Advantage– Variable Costs– Marketing Expenses– Operating/Overhead Expenses
• Differential Advantage– Product Differentiation– Service Quality– Brand Reputation
• Marketing Advantage– Distribution– Sales Effort– Marketing Communications
Developing Competitive Advantage
DifferentiationAdvantage
Differentiationwith Cost
Advantage
Stuck-in-theMiddle
Low CostAdvantage
Superior
Inferior
RelativeDifferentiationPosition
Inferior Superior
Relative Cost Position
Niche Mainstream
Pro Forma Year 1 Year 2 Year 1 Year 2
Unit Volume 13,000 20,000 42,000 59,000
Retail unit sales 8,000 15,000 27,000 44,000
Retail Dollar Sales $16,160.00 $30,300.00 $47,520.00 $77,440.00
Professional unit sales 3,000 3,000 8,000 8,000
Professional Dollar Sales $ 2,466.00 $ 2,466.00 $ 6,576.00 $ 6,576.00
Total Unit Sales 11,000 18,000 35,000 52,000
Total Dollar sales $18,626.00 $32,766.00 $54,096.00 $84,016.00
Niche Mainstream
Pro Forma Year 1 Year 2 Year 1 Year 2
Manufacturing Costs $ 7,260.00 $11,880.00 $22,400.00 $33,280.00
Sampling costs $ 1,320.00 $ 1,320.00 $ 4,480.00 $ 4,480.00
Adv. & Promotion $11,200.00 $11,700.00 $32,800.00 $29,000.00
Capacity Costs $ 317.00 $ 450.00 $ 887.00 $ 1,270.00
Total Costs $18,777.00 $24,030.00 $56,087.00 $63,550.00
Niche Mainstream
Pro Forma Year 1 Year 2 Year 1 Year 2
Operating Profits $ (151.00) $ 8,736.00 $ (1,991.00) $20,466.00
Profits as Percentage of Sales -81% 26.66% -3.68% 24.36%
Cost of Cannibalization $ 2,298.00 $ 3,761.00 $ 12,537.00 $18,626.00
Profit after cannibalization $ (2,449.00) $ 4,975.00 $ (14,527.00) $ 1,840.00
Objectives Colgate Case• To explore the evolution of a product category,
demand for which is largely derived from usage of a related product.
• To review a new product development process and the importance of evaluating product company and product market fit in assessing NPD opportunities.
• To emphasize the importance and marketing program implications of determining whether a new product represents a big breakthrough idea or a line extension.
• To consider the relative merits of emphasizing a corporate brand umbrella vs. an individual brand names when launching a new product.
Samsung Case• To Illustrate the critical importance of effective
marketing in achieving a corporate turnaround.
• To demonstrate the cross-border consumer research in guiding global brand repositioning.
• To explore the marketing planning and budgeting challenges typical of a multinational company (MNC) with a single global brand.
• To explore the responsibilities of a CMO in a major MNC.
Summary for Case Analysis
• What is a case?
• What is purpose of case analysis?
• How to analyze a case?
• How to write a case?
• How to discuss a case?
• Questions?
Written Case Analysis MIM 515
• Format- 5 pages– Executive summary- 1 page
– Analysis
– Conclusion
– Attachments/Appendix (optional)
Executive Summary• Introduction:
– Overview of key issues– Decision Context
• Problem Statement– What are key managerial problems– Use question format, prioritize– Focus- underlying problem Vs. symptom
• Recommendations– Do they address problem(s)
Case Analysis• What is analysis?
– Critical breaking apart data/facts and processing to add meaning
– Can be quantitative or qualitative– Developing structure to convey meaning- eg.
pro/con analysis, model
• What is NOT analysis?– Restating case facts– listing solutions
Recommendations
• Link to key problems.
• What are implications for action?
• Do not confound with analysis section.
• Is there a theme?
• Are recommendations supported by analysis? Do they flow from analysis?
Appendix-Examples
• Do you have any graphs charts that support analysis?- (label, reference)
• Calculations that are too detailed for body of paper
• Assumptions that you feel are necessary to support analysis
Industry Research
Research Overview: Key Questions
• What is the target industry?
• What is the industry overview?
• What are the industry norms?
• Who are the key players?
• What is the size of the market & market share?
• What are the forecasts and trends?
What is the target industry?• Internet:
– SIC Manual Online: http://www.osha.gov/oshstats/sicser.html
– NAICS & SIC Correspondence Tables: http://www.census.gov/epcd/www/naicstab.htm
• Paper (behind Business Reference Desk)
– SIC Manual: HF1042 .U58 1987
– North American Industry Classification System (NAICS): HF1042 .N67 1998
What is the industry overview?• Internet
– Hoovers: http://www.hoovers.com/industry/resources.html
– Current Industrial Reports: http://www.census.gov/cir/www/index.html
– VIKAT: http://www.lib.pdx.edu/netwk/sirsi.html
• Paper (Basement)– Moody’s Industry Review: Reference HG4961.M68– Standard and Poor’s Industry Surveys: Reference
HG4905.S66– Manufacturing USA: Reference HD9721 .M364
What are the industry norms?• PSU Databases:
– ABI Inform– Lexis - Nexis– Investext
• Paper: (behind Business Reference Desk)
– Almanac of Business and Industrial Financial Ratios: HF5681 .R25 T68
– Industry Norms and Key Business Ratios: HD9724 .I514
Who are the key players?• Internet
– Forbes Annual Report on American Industry: http://www.forbes.com/
• PSU Databases– http://www.lib.pdx.edu/netwk/databases.html
– Disclosure Global Access (sort by SIC)
• Paper CorpTech Directory of Technology Companies: Reference T12 .C82
What is size of market/market share?
• PSU Databases– http://www.lib.pdx.edu/netwk/databases.html
– ABI Inform
– Lexis - Nexis
– Investext
• Paper (behind Business Reference Desk)
– Market Share Reporter: HF5410 .M35
– U.S. Industry and Trade Outlook: HC106.5 .A17
What are the forecasts and trends?
• PSU Databases– http://www.lib.pdx.edu/netwk/databases.html
– Investext
– Lexis - Nexis
– ABI Inform
• Paper– U.S. Industry and Trade Outlook: HC106.5.A17 (behind
Business Reference Desk)
– Standard & Poor’s Industry Surveys: Reference HG4905.S66
Quiz #3 Due 11-15
1. C6-n6
2. C6-n103. C6-n12, part two use Costco (rather than Sears & K Mart)
4. C7-n1
5. C7-n11
6. Briefly apply Ch:4 GM to Samsung case relative to benefits and challenges of global branding
top related