Post on 11-Jan-2016
Product Management Summary–1
Summary of Product Management
Professor Carl Mela
BA 460 Product Management
Fuqua School of Business
• Brand Management System
• On Building A Brand
• Managing Across Brands
Product Management Summary–2
Agenda
• PharmaSim Wrap-up– Insights from the marketing plan– Insights from the game
• Course Summary
• Latest Research Project
Product Management Summary–3
PharmaSim Wrap-up
• Marketing Planning Lessons
• Strategies and Performance by Group
Product Management Summary–4
Marketing Planning Lessons
• Situation Analysis– Length
• Is it germane to strategy and tactics
– Information ->Inferences ->Implications• If no implications, than consider omitting
– The plan is also a request for resources• Affects tone
Product Management Summary–5
Marketing Planning Lessons
• Situation Analysis– Internal consistency
• If it is in the situation, is it in the summary? The objectives? The strategy?
– Assumptions• Includes growth, competitive reactions, etc.
– Objectives - are they attainable?• Bonuses and merit raises• Forecasts
Product Management Summary–6
Marketing Planning Lessons
• Competitor and Customer Analyses– What do the customers want?
• Table of benefits by segment or perceptual map
– Who provides it?• Table of benefits by competitor or perceptual map
– Are there positioning gaps?– Who will rush to fill them and what are the
threats?
Product Management Summary–7
Marketing Planning Lessons
• Strategy and Tactics– Link objectives, strategy and tactics– Specificity: How many sales people?
What ad budget? What allocation of trade promotions?
• Pricing Analysis– All teams adopt competitive positioning,
but is this profit maximizing?
Product Management Summary–8
Marketing Planning Lessons
• Promotion Analysis – Caution in reallocating marketing support from core
product (e.g., Coke to Diet Coke)
• Advertising Analysis – Objective of primary demand is often not
commensurate with a line extension or a lower share brand (increases competitor’s sales)
Product Management Summary–9
Marketing Planning Lessons
• Product Design Analysis– Articulate rationale– Competitors and customers– Promotional plan should vary by
product
Product Management Summary–10
Game Results
• Groups maximized share and sales as opposed to net income - marketing bias?
Team Cum. Mfr. Sales Cum. Net Income Share of Mfr. Sales Stock PriceA 2 3 3 4B 1 3 2 2C 1 2 1 1D 1 3 2 2E 3 4 3 3F 1 2 1 1G 2 3 1 3H 1 3 1 2
Rank Within Industry
Product Management Summary–11
Game Results:Team Strategies
TeamAdvertising
RankPromotion
Rank
Sales Force Rank
Price Rank
Number of
ProductsA 3 1 3 2 2B 3 1 4 2 3C 3 1 4 2 3D 3 3 3 2 2E 4 3 3 4 2F 3 1 3 1 3G 3 2 4 2 3H 3 5 3 2 3
Product Management Summary–12
Game Results
• Correlation between teams’ strategies and teams’ results
Cum. Mfr. Sales Cum. Net Income Sh. Mfr. Sales Stock PriceCum. Ads -0.03 -0.04 -0.21 -0.08Cum. Promo 0.64 0.37 0.66 0.68Cum. Sales F. 0.10 0.41 -0.25 -0.02Avg. Ret. Price 0.64 0.79 0.29 0.49No. Products 0.46 -0.04 0.73 0.59
Product Management Summary–13
PharmaSim Wrap-up
• Experience with marketing planning– Number of lessons with respect to writing a
plan
• Goal-setting experience– How did you do vs. plan
• Experience managing a brand– Most teams did well
– Correlates of success
Product Management Summary–14
Course Overview
• Objective - Theoretical and practical grounding in brand management
• Structure– Brand Management System– On Building A Brand– Managing Across Brands
Product Management Summary–15
Structure
• Part I - The Brand Management System– Brands and Brand Management: Class 1
• The Nature of a Brand
• Brand/Product Management
• An Application to the Pepsi Syringe Scare.– Sophisticated organizational structure
– Integrated plan
– Facilitated information flows to and from markets
– Result: brand not affected
Product Management Summary–16
Structure
• Part I - The Brand Management System– Organizational Design: Class 2
• P&G Case– The brand management system gives brands attention
– In mature categories, be wary of product proliferation
• Live commentary from P&G– Whitewater packaging
– Challenges of implementing decisions (approvals and interactions)
– P&G continually adapts its structure
Product Management Summary–17
Structure
• Part II - Building Brands– Pricing: Class 3
• Kodak– Strategic choice between share, margins, and equity– Innovation is necessary to increase all three– Price points and flanker (fighter) brands
• Pricing– Price-quality inferences– EDLP– The effect of pricing on equity (JMG 1999)
• Red Hat’s Director of Marketing– Product v. brand– Flanker brands
Product Management Summary–18
Structure
• Part II - Building Brands– Distribution: Class 4
• Goodyear case and video– Channel cares about price and store equity (not brand)
– Manufacturer cares about brand equity (not store)
– Intensive v. exclusive distribution and equity
– Push v. pull and equity
– Channel is front line to customer and has large impact on equity
– Video: dealing with the media
• Brand Elements– Name, logo, characters, slogans, and jingles
– Memorable, meaningful, protectable, transferable, adaptable
Product Management Summary–19
Structure
• Part II - Building Brands (Cont.)– Private Label and Promotion: Class 5
• Private Label– Change quality, change price, add low quality brand, or do nothing (Hoch)– Recall, these are Kodak’s options
• Sales Promotion– Event marketing (raise awareness and leverage secondary associations, but weak
payoffs and unforseen consequences)– Sales promotion (trade and consumer)
» Short term gains, long term costs
• Craig Stacey (VP from IRI) discusses the use of scanner data information to build brands.
Product Management Summary–20
Structure
• Part II - Building Brands (Cont.)– Promotion: Class 6
• Marketing in the NHL – Promotion of event rather than game
– Grass roots marketing
• Hurricanes Director of Communications, Ken Lehner
– Live survey on marketing the NHL and building the Hurricanes brand
– Promotional design
Product Management Summary–21
Structure
• Part II - Building Brands (Cont.)– Advertising: Class 7
• Advertising– Integrated communications (awareness and brand associations)
• Intel Inside Interactive CDROM. – Process of developing advertising strategy
• Live Commentary and Discussion with Michael J. Ganey, Director, Howard, Merrell & Partners,Inc.
– How to use an agency– Effect of advertising on brands
Product Management Summary–22
Structure
• Part III - Across Brands and Markets– The Marketing Plan: Class 8
• The Marketing Plan– Plans serve to coordinate and formalize research and
decisions– Planning process– Planning format
• Tom O’Guinn, Visiting Professor discusses Brand Communities.
– Consumers are now empowered by the internet and increasingly difficult to manage
Product Management Summary–23
Structure
• Part III - Across Brands and Markets– Product Extensions: Class 9
• Product Extensions– Tremendous efficiencies
– Consumer confusion
– Issues of fit
• The Black and Decker Case and Video– Demonstrates effect of extensions on parent brand
– Strategies to mitigate negative brand associations
» Rebrand
» Inimitable points of differentiation (service, sales relationships)
Product Management Summary–24
Structure
• Part III - Across Brands and Markets– Global Branding: Class 10
• The Heineken Case– Messages can transcend culture
» Think global (message)
» Act local (design)
– Local v. global control
• Global branding– Efficiency v. customization
• The Fuqua MBA with Jim Gray, Associate Dean, Fuqua.
Product Management Summary–25
Structure
• Part III - Across Brands and Markets– Branding on the Internet: Class 11
• Deborah Kania (Lens Express and author of branding.com) and Beth Yakel (Sciquest)
– Brands are increasingly important on the web
– Traditional brands have greater awareness but carry traditional “baggage.” The opposite is true for e-brands
– Branding on the web implies personalization and community
Product Management Summary–26
Structure
• Part III - Across Brands and Markets– Wrap-up and PharmaSim Summary:
Class 12• You are here!!
Product Management Summary–27
Course On a Page
• Part 1 - Brand Management System– Brands and Organizational Design
• Part 2 - On Building A Brand– Price to Image– Distribution Presents Image– Christen and Nathaniel Arrive!– Promotion to Develop Image– Product is Image (Private Label)
• Part 3 - Managing Across Brands & Regions– Marketing Plan– Product Lines Interact– Global v. Local Associations
Product Management Summary–28
Good Luck!
• Stay in touch– Guest speaking– Examples– Feedback regarding preparation– Vexing issues faced this summer or next
year
• Thank you for making this a great and enjoyable course!!