Download - 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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3-28
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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3-32
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