DuPont Latin America Programa de Formación en Marketing

1

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market

MarketMarketFocusFocus

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


DuPont Consulting Solutions

DuPont Latin America Programa de Formación en

Marketing

Taller 2: Entendiendo el MercadoHojas de trabajo

13 y 14 de junio de 2006Buenos Aires

2

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Workshop 1:Business Strategy Inputs

Objective: Full understanding of the Business Strategy environment affecting the Team’s project

Output: A list of Business Strategy considerations/parameters/ limitations/guidelines the Team must incorporate in its strategic thinking

Steps: Review the list of sample Business Strategy inputs (Slide #11)

Write down the Business Strategy inputs that affect this project; rephrase as appropriate to business situation as you know it

Decide which one require validation and note plan accordingly Review Slide #12 for possible relevance to Team’s project; incorporate

as appropriate Designate spokesperson to characterize Team’s Business Situation for

the class.

3

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Value Adding Chain

Definition:A progress of steps from fundamental raw materials through goods purchased by end-use consumers

4

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Simplified Value-Adding ChainCONSUMER

END

USER

TransactionalCustomer

ValueDriverDuPont

Revenue

Offering

Information

Raw MaterialSupplier

Customers

5

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



VAC Player Definitions

Transactional Customer– That level in the chain that we exchange goods and services for

revenue Value Driver

– That level in the chain that best interprets end-user needs and values into specifications and represents (sometimes dictates) them along the chain

Power Center– That level of the chain having the ability to affect what happens in

the industry– May be same level as Value Driver

VAC Influencer - People or entities(who may not purchase/handle products) that

influence the buying decisions made by targeted customers

6

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



US Mobile AC After Market VAC

Bulk Producer Bulk Producer & In-House Loading

Repackager/Marketer “Broker” Marketer

Mass MerchandiserDistribution

Centers

Discount AutoParts Dist. Ctrs.

TraditionalWarehouseDistributors

OEMParts

DistributionNetwork

“Stationary”WholesaleDistribution

Centers

TraditionalDistributor “Stationary”

Wholesale Distributors

Mass MerchandiserRetail Sotres

(Auto Parts Dept.)

Retail In-HouseService

Discount Auto Parts Store

Retail Wholesale In-HouseService

TraditionalAuto Parts

Store/J obbers

Retail Wholesale

DealerParts

Counters

Retail In-House

In-House Service

Mass. Merch

Dlse.Autoparts

IndependentService/Installation

DealerService/Installation

D.I.Y. Owner Individual Vehicle Owner Fleet Owner with/in-house Service

or

Parts

Service

U.S. MOBILE A/C AFTERMARKET DISTRIBUTIONDuPont 2.2 1998 Est (M Tons)

3.0M Tons (12 oz cans)10 m Tons (30 lb DACs)

DiscountChains

DIYIndustry Serviceman

Dealer

7

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Industrial Motors Value Adding Chain (Global)

DuPontNOMEX®

Distributor/Fabricator

(12)

Motor OEM(50)

End-user(1000’s)

Sub-assembler(20)

LaminatorNMNDMD (80)

PolyesterFilm

& Matt

OtherInsulationMaterials

InfluencersUL, IEC

Key competitors:• Lower temperature sheet insulation materials Mfg. (Quin-T) Laminators - polyester based laminates

• OEMs are primary value drivers and power center• Laminators have been gaining power

EquipmentVendors

(15)

Core SteelMagnet Wire

Suppliers

8

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



VAC Dynamics Questions

What level is the value driver? What level has the power currently? How would you anticipate that power distribution might change in

the future? Why? Do we anticipate structural changes due to:

– Acquisitions/Divestitures -Technology Shifts– Backward/Forward Integration -Failures / New Entrants– Alliances

How might we gain power and influence along the chain to create and extract greater value?

Where along the chain is the business currently focused? Where should it be focused in the future?

9

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Workshop 2: Value Adding Chain (VAC) Update

Objective: Update each Team’s “Process Map” of how the VAC operates Output: An easily-understood drawing showing:

-- VAC Players & relationships along the VAC; approx. # per level-- Key flows of Value Adding activity-- Key influencers-- Notes indicating key dynamics-- Value Driver & estimated % of decision making power re inputs like ours at each level-- Current allocation of DP marketing effort at each level of VACSteps: Review current draft of VAC diagram; list new inputs from Team pre-work

exploration Incorporate new information into outputs listed above; update VAC Process Map

accordingly Prepare report back: overview of Project VAC and key learnings.

10

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Value Adding Chain Analysis Summary

Understanding the VAC is a foundation for effective marketing Planning:

Describes the various levels of the Value Chain in terms of roles, power, critical success factors, values and needs

Recognizes value-adding activities throughout Forces attention beyond the transactional customer—all the way

to the End User/Consumer, the ultimate determiner of value Assesses how well the Value Chain is working (effectiveness

and efficiency) and opportunities for improvement Prompts real consideration of how your business should

allocate/focus marketing resources along the VAC to become more influential in selection of products/services used.

11

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Capturing Value Downstream

Direct Customer

YourBusiness

End Customer

• Does our offering provide benefit/value to the End Customer? If not, what is the last level of the VAC to recognize DuPont’s contribution to value?

• Does our Direct Customer recognize (and acknowledge) the benefit/value our offering delivers to the End Customer? To his Customer? Is he capturing value for benefits/uniqueness of what we provide?

• What might we do to help our direct customers (and other VAC Players) be more successful?

• Do downstream customers have a reason to specify our product to our Direct Customer? Or to exert other pull-through influence? Do we have a means of explaining tos them the value of specifying DP inputs?

Distribution

12

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Workshop 3:Brainstorming Ways DP might Gain Influence

Objective: Broad early-stage thinking about possibilities for improving DP’s Influence / Value Add / Value Capture in the VAC

Output: A prioritized list of possible strategies/actions that would improve DP’s position

Steps: Designate Scribe Encourage open participation by all Team members Generate un-evaluate list of possibilities Review list and highlight those that seem most “exciting” and

somewhat practical

13

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Workshop 3:Brainstorming Guidelines

Everyone participates equally No criticism / evaluation of ideas during idea collection phase Don’t be limited by practicality As ideas dwindle, take a “new perspective” on the problem:

– Turn it upside down or inside out– Paint it a new “color” or “texture”– Think about it from POV of customer at each level of VAC– Think about the most dreaded moves competitors might make and what

they suggest you might do to preclude them Write everything down; you’ll come back later to sort it all out Be sure to highlight your best ideas for easy reference later

14

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Workshop #4: Trends Affecting your VAC

Objective: Identify trends affecting Industry and VAC that need to be considered in the Strategic PlanOutput: A prioritized list of relevant trends, ranked according to likelihood of occurrence and significance to the businessSteps: With reference to the Industry/VAC in which you plan to participate: Have each Team member write relevant trends on Post-It® notes, one per sheet. Capture as many as come to mind. (Be sure to reflect on VAC interviews you’ve conducted) Arrange Post-It® notes on a 2x2 matrix

Vertical = Degree of Certainty, Lo to Hi Horizontal = Impact on the business, Lo to Hi

As a Team, confirm location of each trend Capture a list of trends remaining in upper right quadrant, starting in top right corner Highlight 3-5 that have greatest leverage on Project success

15

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



External Trend Analysis Map

Minimum Resources

If Any

Forget It

Must Plan For

Low

High

Maintain Flexibility In

Plan

HighImpact on Business

Degreeof

Certainty

16

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Prioritized List of TrendsIndustry/VAC = ______________________

Trends in order of Significance to our Project: Trends working FOR us:

Trends working AGAINST us:

17

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Workshop #5:Competitive Analysis

Objective: Determine how competitive activity or intentions might affect decisions about opportunities to influence VAC and extract valueOutput: Completed Competitive Analysis Worksheets showing type of competitive activity present at each level of VACSteps:

Fill in key VAC levels at top of Competitive Activity in VAC template provided On left, list companies that provide alternative solutions to DP inputs or services in subject VAC Characterize competitive activities at each level of the VAC Complete the Competitor Analysis Map (you may modify axis titles if others are of greater value) Complete Competitor Analysis Worksheet for 2-3 key levels of VAC, focusing on last 4 columns Consider the “thought expansion” questions

18

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Competitive Activity in the VAC

First Question: What have your VAC explorations told you

about the nature and strength of activity by key competitors at each level of the VAC?– Valuable for understanding competitive strategy – Valuable for knowing what you’re “up against” in

marketing at each level of the VAC

19

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



MARKET

Competitive Activity in the VACLevel of

VAC

Key Competitor

Activity at this Level of VAC




Highlight Boxes where Activity is Strong/Effective

20

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Competitor Analysis

Assess each competitor’s:– Strategic thrust– Capabilities/limitations– Likely outcomes (if they succeed with their

strategic thrust)– Impact on us– Customers/markets on which they focus– Recent initiatives to better serve customers

21

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Competitor Analysis Elements

• Capabilities/Limitations– Business resolve/commitment– Market/Customer focus– Offering match– Amount of synergy– Degree of mobility– Access to resources– Interface competency – eBusiness capability

• Threats/Opportunities– Threats to your business– Opportunities for your business

• Marketplace Behavior– Competitor intentions related to:

» Choices of markets/customers» Customer interface approach» Resource commitment» Interaction with target markets

• Likely Outcomes– Strategic thrust vs.

strengths/weaknesses– Impact of external forces

22

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Competitor Analysis Map

Commodity Differentiated

Type of Offering

Narrow

Broad

Scope ofCustomer’s

Participation

23

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Competitor Analysis Worksheet

Competitor Vol. Rev Share Prods/Srvcs Strategic Thrusts Capabilities & Limitations

Likely Outcomes

Impact on Us

1

2

3

4

5

6

7

8 DuPont

Level of VAC:__________________________

24

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market





Likely Outcomes

Impact on Us

1

2

3

4

5

6

7

8 DuPont

Level of VAC:__________________________

25

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market





Likely Outcomes

Impact on Us

1

2

3

4

5

6

7

8 DuPont

Level of VAC:__________________________

26

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Strategic Thrust

Based on observations of competitive activities, what seems to be each company’s strategic thrust in this market?

Thought starters:•Aggressively invest, grow•Maintain•Defend at all costs•Respond aggressively to competition•Harvest or exit

• Develop• Penetrate• Gain share on price• Exit

27

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Competitor Analysis: Questions to Expand Your Thinking

How satisfied is each competitor with its position?– What are their likely moves?– What are the implications for the industry and your business?– What are they doing to better meet customer needs?

Competitive Threats– New Entrants?

• What are the incentives to enter this market?• What are the Barriers to Entry?

– Substitute Products?– What can you do to deter new entrants?

What competitive moves would have most serious impact on our business? Which competitor is most likely to adopt that strategy?

28

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Workshop #6:Customer Analysis

Objective: Understand customer needs and buying behavior at 2-4 levels of the VACOutput: Draft Customer Analysis Worksheets for 2-4 levels of VACSteps:

Select 2-4 levels of the VAC that you feel might offer opportunity to influence input decisions Write those VAC functions across the top of the Customer Analysis worksheet. Working on one level of the VAC at a time, use the template to summarize what you know about CSFs, Needs, and Sources of Competitive Advantage from your VAC explorations to date. At each level, take a few moments to note possible ways DuPont could gain leverage on input decision making.

29

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



MARKET

CriticalSuccessFactors

Values

Sources of Competitive Advantage

% of DP Focus:

Customer Analysis Worksheet(Capturing What’s Important to Players at key levels of VAC)

Level of VAC

Ways to Influence:

CSFs = MUST achieve for their business to prosper; VALUES = Things they care deeply about; SOURCES OF COMP. ADVANTAGE = How they WIN vs. competitors

30

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Workshop #7:Marketing Effort “Future State” Allocation

Objective: Allocate future marketing efforts along the VAC in accordance with VAC dynamics and opportunities to favorably influence use of DP products and services.Output: A list of VAC functions/players/influencers with corresponding percentages for future marketing emphasis and preliminary thinking about appropriate types of marketing effort.Steps:

Insert VAC players/functions in the table provided. Remember not to overlook influencers Allocate 100% of marketing effort (all types) to the various points on the VAC where opportunity to influence exists Begin characterizing the types of marketing effort most suitable for each place where marketing effort has been allocated.

31

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Workshop #7: Marketing Emphasis “Future State”

Level of VAC % of DP Mktg EffortCurrent Future

Types of Mktg Activity

32

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Understand the Market Conclusion: Level of VAC for Primary Marketing Emphasis

Project Title: ____________________ Team Leader: __________________ Team Members:

_________________________________________________________________________________________________________________________________________________________

Industry / Market ______________________________ LEVEL OF VAC chosen for Mktg Emphasis________________ Three key reasons why this level has been chosen:

1. __________________________________________________

2. __________________________________________________

3. __________________________________________________

33

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Marketing Insight for Improved Results

Information is a source of business improvement:

VOC data to guide customer-focused strategic planning & actions

Marketing Research to make better business decisions Competitive info to better anticipate competitive responses A formalized approach to “knowing” the marketplace Market sensing to anticipate the future Customer database management to support customer

care and retention A formalized approach to sharing information among

members of the Business Team

34

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Workshop #8:Path Forward to Complete Understand Market

Objective: Leave Session 2 with clear plan for what has to be done to complete Understand the Market moduleOutput: A list of PF items, with responsibilities and completion datesSteps:

Complete the Path Forward template, paying special attention to unresolved questions or “need-to-confirm” information from Session 2 Workshops As a Team, determine whether you can confidently select a level of the VAC for special marketing emphasis for your Project to be successful—and make that selection

-- If you’re not yet comfortable making this key decision, make specific plans to reconvene the Team when the additional info required will be available. This decision must be made so that customers at the targeted level can be interviewed prior to Session III (Segmentation, Targeting and Positioning)

Time: 45 MinsRECONVENE AT:

35

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Path Forward to Complete Understand the Mkt:Industry/VAC: _____________________

Item for Action Due By Deliver To

Person Accountable

36

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Marketing Research Issues

Question to be Researched/Decision to be made

Expected approach to gathering the data

Person resp. & due date

Project Title:_______________________________

37

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Understand the Market Conclusion:Selected Level of VAC for Marketing Emphasis

Project Title: ____________________ Team Leader: __________________ Team Members:

_________________________________________________________________________________________________________________________________________________________

Industry / Market ______________________________ LEVEL OF VAC chosen for Mktg Emphasis________________ Three key reasons why this level has been chosen:

1. __________________________________________________

2. __________________________________________________

3. __________________________________________________

38

Marketing & Sales

Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market


Segment &Target

Segment &Target

AuditPerformance

AuditPerformance

Manage theMarketing

Mix

Manage theMarketing

Mix

Deliverthe

Offering

Deliverthe

Offering

CreateDemandCreate

Demand

Understandthe

Market

Understandthe

Market



Pre-work for Segmentation & Target Workshop

To prepare for the next workshop in the Marketing Competency Development series, your Team must:

Arrange and conduct VOC interviews with customers at the selected level(s) of the VAC.

– At least six companies– High share. medium share, low share– At least two members of the Buying Center at each company– In-person interviews preferred– Two Team members per interview– Explore relative perceptions of competitive offerings– Explore CSFs, needs, values, sources of competitive advantage

Summarize the knowledge acquired in these interviews and share with all Project Team members

Create a draft (preliminary) of criteria the would make a segment…– Attractive for a marketer to pursue– One where DuPont can compete effectively

DuPont Latin America Programa de Formación en Marketing

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