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InnovationTRANSCRIPT
The Innovators' Survival Guide: Marketing EditionBy Michael Brandt
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The Innovators' Survival Guide: Marketing Edition
• Useful information, tools, advice, buzzwords and examples to help you be successful!
• You can get there from here....it's marketing! Michael Brandt
VP of Marketing and PlanningWHITE PASS & YUKON ROUTE
entrepreneur
en·tre·pre·neur (ŏn'trə-prə-nûr', -nʊr') n.A person who organizes, operates, and assumes the risk for a business venture.
"someone who perceives an opportunity and creates an organization to pursue it."
innovatein·no·vate (ĭn'ə-vāt')
To begin or introduce (something new) for or as if for the first time.
New ProductsNew Production MethodsNew MarketsNew Forms of Organization
& Distribution
Thesaurus: entrepreneur (noun)One that creates, founds, or originates:architect, author, creator, father, founder, inventor, maker, orarchitect, author, creator, father, founder, inventor, maker, originator, parent. iginator, parent.
The Innovators' Survival Guide: Marketing EditionBy Michael Brandt
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The Innovators' Survival Guide: Marketing Edition
A G E N D A
• Welcome & Introductions
• Setting Objectives for the Planning Session
• MARKETING 101• Open Forum
A Fishing Story• The American investment banker was at the pier of a small coastal
Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna. The American complimented the Mexican on the quality of his fish and asked how long it took to catch them.
• The Mexican replied, only a little while. The American then asked why didn't he stay out longer and catch more fish? The Mexican said he had enough to support his family's immediate needs.
• The American then asked, "but what do you do with the rest of your time?"
• The Mexican fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life."
The Innovators' Survival Guide: Marketing EditionBy Michael Brandt
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A Fishing Story -- continued• The American scoffed, "I am a Harvard MBA and could help you.
You should spend more time fishing and with the proceeds, buy a bigger boat with the proceeds from the bigger boat you could buyseveral boats, eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually NYC where you will run your expanding enterprise."
• The Mexican fisherman asked, "But, how long will this all take?" To which the American replied, "15-20 years." "But what then?"
• The American laughed and said that's the best part. "When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions."
• "Millions.. Then what?"
A Fishing Story -- conclusion• The American said, "Then you would retire. Move to a small coastal
fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos."
The Innovators' Survival Guide: Marketing EditionBy Michael Brandt
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What is Marketing?
• the process of• planning and executing• the conception, pricing, promotion and distribution• of ideas, goods and services• to create exchanges• that satisfy individual and organizational objectives.
“satisfying customers’ needs systematically and at a profit”
Competitive fo
rces
Regulatory forces So
cial
forc
es
Economic forces
Environmental forcesTechnological forces
The Marketing Starting Point
Target Market
PROMOTION
PLACE
PRICE
PRODUCT
The Innovators' Survival Guide: Marketing EditionBy Michael Brandt
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The Strategic Marketing Process: The Strategic Marketing Process: Actions and InformationActions and Information
Step 1
Situation (SWOT) analysis
• Identify industry trends
• Analyze competitors
• Assess own company
• Research customers
• Determine trend in past and current revenues:
For industry and competitors in total and by segment
• Project future revenues, expenses and profits:
For own product in total and by segment
Step 2
Market-product focus and goal
setting• Set market and product goals
• Select target markets
• Find points of difference
• Position the product
• Market potentialBy industryBy segment
• Market-product grids, with ranked targets
• Product positioning that stresses key features, advantages, benefits
Step 3
Marketing program• Develop the program's marketing mix
• Develop the budget, by estimating revenues, expenses, and profits
• Characteristics and timing of:
Product actionsPrice actionsPromotion actionsPlace actions
• Projected marketing expenses
• Detailed plans to execute the marketing program
• Obtain resources
• Design marketing organization
• Develop schedules
• Execute marketing program
• Memos assigning responsibilities for actions and deadlines; Gantt charts
• Organizational charts and job descriptions
ControlPhase
• Compare results with plans to identify deviations
• Correct negative deviations; exploit positive ones
•measuring results of the marketing actions
• Deviation reports comparing actual results with plans
• Action memos to try to correct problems and exploit opportunities
Plans Results
Planning Phase
Corrective actions Corrective actions
ImplementationPhase
Tracking reports
Info
rmat
ion
Act
ion
The Strategic Marketing Process..• The Planning Phase
– Situation (SWOT) Analysis
– Market-Product Strategies
• Market Penetration– increasing market share
• Market Development– developing new markets
• Product Development– developing new products
• Diversification– developing new products
for new markets
– Market-Product Focus and Goal Setting
• Market Segmentation• Selecting the Target
Market• Defining Competitive
Advantage
• Marketing Program• Develop the Marketing
Mix (the 4 Ps)
• Developing the Budget
The Innovators' Survival Guide: Marketing EditionBy Michael Brandt
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..The Strategic Marketing Process
• The Implementation Phase– Obtaining Resources– Designing the
Marketing Organization
– Developing Schedules– Executing the Program
• Marketing Strategy• Marketing Tactics
• The Control Phase– Comparing Results
with Plans to Identify Deviations
– Acting on Deviations
Key Organizational Buying CriteriaKey Organizational Buying Criteria
QualitySpecifications
TechnicalCapability
PastPerformance
OrganizationalOrganizationalBuying CriteriaBuying Criteria
DeliverySchedulesPrice
Warranty/Claim Policies
ProductionFacilities/Capacity
The Innovators' Survival Guide: Marketing EditionBy Michael Brandt
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Why Consumers Buy OnlineWhy Consumers Buy Online
Convenience
ControlCustomization Communication
ChoiceCost
Five Product & Promotion StrategiesFive Product & Promotion Strategiesfor Global Marketingfor Global Marketing
Same Product Adapt Product Create New Product
SamePromotion
AdaptPromotion
Communicationadaptationstrategy
ProductExtensionStrategy
ProductAdaptation
Strategy
DualAdaptation
Strategy
ProductInventionStrategy
The Innovators' Survival Guide: Marketing EditionBy Michael Brandt
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THE MARKETING MIXTHE MARKETING MIX
PlaceOutletsChannelsCoverageTransportationStock level
PlaceOutletsChannelsCoverageTransportationStock level
PromotionAdvertisingPersonal sellingSales promotionPublicity
PromotionAdvertisingPersonal sellingSales promotionPublicity
PriceList priceDiscountsAllowancesCredit itemsPayment period
PriceList priceDiscountsAllowancesCredit itemsPayment period
ProductFeaturesBrand namePackagingServiceWarranty
ProductFeaturesBrand namePackagingServiceWarranty
MarketingElements
MarketingElements
Cohesive marketing mix
PromotionPlace
Price
PromotionPlaceProduct
The Promotional MixThe Promotional Mix• Advertising• Personal Selling• Public Relations• Sales Promotion• Direct Marketing
• Coupons• Deals• Premiums• Contests• Sweepstakes• Samples• Point of Purchase
Displays• Rebates
The Innovators' Survival Guide: Marketing EditionBy Michael Brandt
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How stages of the product life cycle relate to a firmHow stages of the product life cycle relate to a firm’’s s marketing objectives and marketing mix actionsmarketing objectives and marketing mix actions
Marketing objective
Marketing objective Gain
AwarenessGain Awareness Stress
differentiationStress differentiation Maintain
brand loyaltyMaintain brand loyalty Harvesting,
deletionHarvesting, deletion
CompetitionCompetition NoneNone GrowingGrowing ManyMany ReducedReduced
ProductProduct OneOne More versionsMore versions Full product line
Full product line Best sellersBest sellers
PricePrice Skimming or penetration
Skimming or penetration Gain share, dealGain share, deal Defend share,
profitDefend share, profit Stay profitableStay profitable
PromotionPromotion Inform, educateInform, educate Stress competitive differences
Stress competitive differences
Reminder oriented
Reminder oriented Minimal
promotionMinimal promotion
Place(distribution)
Place(distribution) LimitedLimited More outletsMore outlets Maximum
outletsMaximum outlets Fewer outletsFewer outlets
Stage of the product life cycleSa
les r
even
ueor
pro
fitIntroduction Growth Maturity Decline
+0–
Total industrysales revenue
Total industry profit
Importance of Promotional ElementsImportance of Promotional Elementsduring the Consumerduring the Consumer’’s Purchase Decisions Purchase Decision
Prepurchase Purchase Postpurchase
Personal selling
Sales promotion
Advertising
Impo
rtan
ce o
f pro
mot
iona
l too
l
High
Low
Stage of consumer’s purchase decision
Direct Marketing
Public relations
The Innovators' Survival Guide: Marketing EditionBy Michael Brandt
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Promotional Tools used over the Promotional Tools used over the Product Life Cycle of Purina Product Life Cycle of Purina
Puppy ChowPuppy Chow
Introduction
Growth Maturity
Decline
To inform To persuade To remind
Stage ofproduct
lifecycle
Promotionalobjective
Promotionalactivity
• Publicity inveterinarymagazines
• Advertising• Salesforce calling• on intermediaries• Sales promotion
in form offree samples
• Personal sellingto intermediaries
• Advertising todifferentiatePuppy Chowattributes fromthose ofcompetingbrands
• Reminderadvertising
• Sales promotion inform of discountsand coupons
• Limited personalselling
• Direct mailreminders
• Littlemoneyspent onpromotion
Steps in Setting PriceSteps in Setting Price
Determine cost, volume, and profit relationships
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Identify pricing constraints and objectives
Estimate demand and revenue
Select an approximate price level
Set list or quoted price
Make special adjustments to list or quoted price
APPROACHES• Demand• Cost• Profit• Competition
The Innovators' Survival Guide: Marketing EditionBy Michael Brandt
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Tot
al r
even
ue o
r to
tal c
ost
Loss
Profit
Quantity
Total revenue
Total cost (fixed and variable cost)
Variable cost
Fixed cost
⎫⎬⎭
BreakBreak--Even Analysis ChartEven Analysis Chart
Functions Performed by Independent Functions Performed by Independent Wholesaler TypesWholesaler Types
FULL SERVICE
FUNCTIONSPERFORMED
GENERALMERCHAN-DISE
SPECIALTYMERCHAN-DISE
RACKJOBBERS
CASHANDCARRY
DROPSHIPPERS
TRUCKJOBBERS
BuyingSales calls oncustomersRisk taking(taking title toproducts)LOGISTICALFUNCTIONSCreates productassortmentsStores products(maintainsinventory)Sorts products
TransportsproductsFACILITATINGFUNCTIONSProvides financing(credit)Provides marketinformation andresearchGrading
TRANSACTIONALFUNCTIONS
MANUFAC-TURER'SAGENTS
SELLINGAGENTS BROKERS
LIMITED SERVICEMERCHANT WHOLESALERS
AGENTS AND BROKERS
Key: , Yes; , Sometimes; , No.
The Innovators' Survival Guide: Marketing EditionBy Michael Brandt
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Balancing Total Logistics CostsBalancing Total Logistics Costsand Customer Service Factorsand Customer Service Factors
Stockoutcosts
Inventorycosts
Transportationcosts
Materials handlingand warehousing
costs
Orderprocessingcosts
Convenience
Time
Communication
Dependability
Total logistics cost factors Customer service factors
Michael’s Favorite Axioms
• “What gets measured gets managed”• “If you’ve got to do “A” and “B” to get an
outcome and you’ve got a 90% chance at each “A” an “B”, you’ve got an 81% chance of the outcome.”
• “If you fail to plan, you plan to fail!”• “Adaptation to change is the key to survival.”• “It’s about the Customer!”