BUS7450Strategic Marketing Management

Week 2Dr. Jenne Meyer

BUS7500 Article reviews

1. A 1 minute summary of the article2. Key learnings: what information was new to you? What

surprised you3. How would/could the topic affect you personally or at work

2Developing Marketing Strategies and Plans

What is the Value Chain?

The value chain is a tool for identifying was to create more customer value because every firm is a synthesis of primary and support activities performed to design,

produce, market, deliver, and support its product.

Phases of Value Creation and Delivery

Choosing the value

Providing the value

Communicating the value

Characteristics of Core Competencies

A source of competitive advantage Applications in a wide variety of markets Difficult to imitate

Maximizing Core Competencies

(Re)define the business concept (Re)shaping the business scope (Re)positioning the company’s brand identity

What is Holistic Marketing?

Holistic marketing sees itself as integrating the value exploration, value creation, and

value delivery activities with the purpose of building long-term, mutually satisfying

relationships and co-prosperity among key stakeholders.

Questions to Address in Holistic Marketing

What value opportunities are available?

How can we create new value offerings efficiently?

How can we delivery the new offerings efficiently?

Figure 2.1 The Strategic Planning, Implementation, and Control Processes

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 2-10

Table 2.1 Master Marketers

What is a Marketing Plan?

A marketing plan is the central instrument for

directing and coordinating the marketing effort.

It operates at a strategic and tactical level.

Levels of a Marketing Plan

Strategic Target marketing

decisions Value proposition Analysis of

marketing opportunities

Tactical Product features Promotion Merchandising Pricing Sales channels Service

Marketing Plan Contents

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls

Check out Marketing Plan Template on website.

Evaluating a Marketing Plan

Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?

Figure 2.3 The Business Unit Strategic Planning Process

SWOT Analysis

http://en.wikipedia.org/wiki/SWOT_analysis

Strategic Planning

Earn Executive Sponsorship Liaison to

govnt reform

Create courses online

Globalize Ed Srvcs

Engage in emerging markets

More targeted mktg using CRM

Build global materials Partner

w/major medical school

Build ROI case study

Develop learning

consultant competencies

Create social networks

Impa

ct

Ease of Implementation

Low

Difficult

High

Easy

Market Opportunity Analysis (MOA)

Can the benefits involved in the opportunity be articulated convincingly to a defined target market?

Can the target market be located and reached with cost-effective media and trade channels?

Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?

Market Opportunity Analysis (MOA)

Can the company deliver the benefits better than any actual or potential competitors?

Will the financial rate of return meet or exceed the company’s required threshold for investment?

Porter’s Generic Strategies

Intel Case Study

http://www.youtube.com/watch?v=q-8GVi2Fdi4

3Collecting Information and Forecasting Demand

Case Studies

What is a Marketing Information System?

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.

Table 3.2 Information Needs Probes What decisions do you regularly make? What information do you need to make these

decisions? What information do you regularly get? What studies do you periodically request? What information would you want that you are

not getting now? What are the four most helpful improvements

that could be made in the present marketing information system?

Internal Records and Marketing Intelligence

Order-to-payment cycle Sales information system Databases, warehousing, data mining Marketing intelligence system

What is a Marketing Intelligence System?

A marketing intelligence system is a set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment.

Steps to Quality Marketing Intelligence

Train sales force to scan for new developments Motivate channel members to share intelligence Hire external experts to collect intelligence Network externally Utilize a customer advisory panel Utilize government data sources Purchase information

Sources of Competitive Information

Independent customer goods and service review forums

Distributor or sales agent feedback sites Combination sites offering customer reviews

and expert opinions Customer complaint sites Public blogs

Scanning the Marketing Environment The process of continually acquiring info on the

events occurring outside the organization to identify and interpret potential trends.

Scanning the Marketing Environment

Social/Cultural Factors

Social Factors Views of themselves Views of others Views of organizations Views of society Views of nature Views of the universe

Demographics Population growth Population age mix Ethnic markets Educational groups Household patterns

Perspective on the Global Demographic Environment

Economic Factors

Economy – pertains to the income, expenditures, and resources that affect the cost of running a business and household.

Macroeconomic – view of the marketplace Microeconomic – consumer perspective

Consumer Income Disposable income – the money a consumer has

left, after paying taxes (for food, shelter, clothing, etc.)

Discretionary income – the money that remains after paying for taxes and necessities, used for luxury items

Technological Factors

New innovations of inventions from applied science and engineering

Impact on Customer Value Cost of technology is decreasing, causing customer value

assessment to change Provides value through development through new products Change existing products and the way they are made

Pace of change Opportunities for innovation Varying R&D budgets Increased regulation of change

Political/Legal/Regulatory Forces

Protecting competition Product-related legislation Company protection Consumer protection Pricing-related legislation Distribution-related legislation Advertising – and promotion-related

legislation

Natural Environment

Shortage of raw materials Increased energy costs Anti-pollution pressures Governmental protections

A Vocabulary for Demand Measurement

Market Demand

Market Forecast

Market Potential

Company Demand

Company Sales Forecast

Company Sales Potential

Forecasting and Demand Measurement How can we measure market demand?

Potential market Available market Target market Penetrated market

Microsoft Case Study I’m a PC

http://www.youtube.com/watch?v=HrmF-mPLybw

http://www.youtube.com/watch?v=7hhVjSbV_oQ

http://www.youtube.com/watch?v=wj5UyZKo2iE&feature=relmfu

4Conducting Marketing Research

What is Marketing Research?

Marketing research is the systematic design, collection, analysis, and reporting of data

and findings relevant to a specific marketing situation facing the company.

SyndicatedCustom

Types of Research

Exploratory

Descriptive

Causal

The Marketing Research Process

Define the problem Develop research plan Collect information Analyze information Present findings Make decision

Step 1: Define the Problem

Define the problem Specify decision alternatives State research objectives

Step 2: Develop the Research Plan

Data sources Research approach Research instruments Sampling plan Contact methods

Research Approaches

Observational and ethnographic Focus group Survey Behavioral Experimental

Research Instruments

Questionnaires Qualitative Measures Technological Devices

Research Class Activity

Share key brands Yes/No Questions

Questionnaire Do’s and Don’ts

Ensure questions are free of bias

Make questions simple Make questions specific Avoid jargon Avoid sophisticated

words Avoid ambiguous words

Avoid negatives Avoid hypotheticals Avoid words that could

be misheard Use response bands Use mutually exclusive

categories Allow for “other” in fixed

response questions

Sampling Plan

Sampling unit: Who is to be surveyed? Sample size: How many people should be

surveyed? Sampling procedure: How should the

respondents be chosen?

Pros and Cons of Online ResearchAdvantages Inexpensive Fast Accuracy of data Versatility

Disadvantages Small samples Skewed samples Technological problems Inconsistencies

Barriers Limiting the Use of Marketing Research

A narrow conception of the research Uneven caliber of researchers Poor framing of the problem Late and occasionally erroneous findings Personality and presentational differences

Market Research Can Fail

Table 4.3 Characteristics of Good Marketing Research

Scientific method Research creativity Multiple methods Interdependence Value and cost of information Healthy skepticism Ethical marketing

What are Marketing Metrics?

Marketing metrics are the set of measures that helps marketers quantify, compare, and

interpret marketing performance.

Table 4.4 Marketing MetricsExternal Awareness Market share Relative price Number of complaints Customer satisfaction Distribution Total number of

customers Loyalty

Internal Awareness of goals Commitment to goals Active support Resource adequacy Staffing levels Desire to learn Willingness to change Freedom to fail Autonomy

Figure 4.3 Marketing Dashboard

Table 4.4 Sample Customer-Performance Scorecard Measures

% of new customers to average # % of lost customers to average # % of win-back customers to average # % of customers in various levels of satisfaction % of customers who would repurchase % of target market members with brand recall % of customers who say brand is most preferred

Videos

Importance of marketing strategy (http://businessmarketingstrategies.biz/videos/marketing-plan-and-its-importance )

Class wrap up

What is due for next week