Im 1.1 Rev.5

1

International Marketing Management

Asolo January 12th and 13th , 2006

CIMBA

UNIVERSITY OF ALABAMAUNIVERSITY OF ARKANSASCLEMSON UNIVERSITYUNIVERSITY OF CONNECTICUTUNIVERSITY OF DELAWAREFLORIDA STATE UNIVERSITYUNIVERSITY OF FLORIDA

GEORGIA STATE UNIVERSITYUNIVERSITY OF GEORGIAIOWA STATE UNIVERSITY UNIVERSITY OF KANSASKANSAS STATE UNIVERSITYUNIVERSITY OF KENTUCKYLOUISIANA STATE UNIVERSITY

UNIVERSITY OF MISSOURI-MISSISSIPPI STATE UNIVERSITYUNIVERSITY OF NEBRASKAOKLAHOMA STATE UNIVERSITYUNIVERSITY OF OKLAHOMAUNIVERSITY OF RHODE ISLANDPORTLAND STATE UNIVERSITY

UNIVERSITY OF TENNESSEESOUTHERN MISSISSIPPI UNIVERSITYTEXAS TECH UNIVERSITYUTAH STATE UNIVERSITYVIRGINIA COMM.TH UNIVERSITYVIRGINIA TECH UNIVERSITYWEST VIRGINIA UNIVERSITY

Consortium Institute of Management and Business Analysis

2

INTERNATIONAL MARKETING MANAGEMENT

Day 1 : Session 1 & 2Introduction and Definitions of MarketingThe process of Marketing Management

Basic tools and concepts: Marketing MIX (the 4 ‘P’ of Marketing)

Product’s life cycle

Process of Marketing Management in depth:Analysis of opportunities

Research of target marketDevelopment of strategies

Planning, Implementation and control

How to write a solid Marketing plan

Essential tools: Risk Anaysis, Montecarlo analysis, Sensitivity, Tornado Analysis and real

Options.International Product Launches in Europe:

a real case.

Entry Strategies: Agency, distribution, licensing, Joint Ventures, direct sales.

A framework for cooperative strategies and Joint Venture design.

Cultural issues: ethics and compliance

Day 2 : Session 3 & 4

900am Morning Class

10:30 Break

11:30 Case Discussion

12:30 Lunch

14:00 Afternoon Class

15:30 Break

16:30 Case Discussion

17:30 Closeout

Club Med

Euro Disney Ital Sedia

Baxter

3

Working Groups

• GROUP 1• Argentin Federica• Farronato Nicola• Virago Roberta• Folle Ivo• Ceolin Angelo *• • GROUP 2• Cagnin Moreno• Fiumicetti Anna• Negretto Luigi• Dal Bo Peter•

• GROUP 3• Santato Donata• Simonetto Enrico• Ronzani Roberto• Zago Valentina• Pettenon Francesco*• • GROUP 4• Fiammengo Wallì• De Marchi Giovanni• Del Prete Enrico• Baldassar Stefano*

4

What is its role in the corporation and in the society?What is marketing

5CIMBA Fondamenti di Marketing Management: Luigi Negri

6

What is marketing: its role in society and corporations

• Stereotypes• Definitions of Marketing• Key concepts to remember when talking about

marketing– Needs– Products– Value, cost and satisfaction– Exchange, transactions– Markets– Corporation– Marketing Management

What is Marketing

7

• “…Marketing is used by corporations to create needs by convincing consumers to buy products they do not need…..”

• “… Marketing in a corporation is made of all that publicity that triggers automatic purchases of products for which there is no real need …”

What is marketing

Stereotypes

8

Marketing definitions

• “ Marketing is the social and managerial process through which an individual or a group can obtain the object of their needs and desires by creating, offering and exchanging products and values.”

• “Marketing is the managerial process through which a corporation maximizes its sales profits in the short, medium and long term by designing, offering and selling its products or services.”

What is marketing

9

Cos'e' il marketing

10

Needs

• Needs: – A need appears when a basic necessity for human life is

not satisfied.• Desire:

– Appears when an individual assesses a solution for the satisfaction of a need.

• Demand:– Is made of desires for specific products enriched by the

ability and willingness to purchase them.

What is marketing

11

Demand origins, an example (Angel’s Model)What is marketing

Stimulus Exposition

Attention

Comprehension

Retention

Information and Experience

Problem Recognition

Post-purchase evaluation Future behavior

Income

Culture

Family

Social Class

Physical Factors

Others

External Research

Informative retroaction

Wait

Wait

Wait

EvaluationCriteria

Attitude

Per

sona

lity

Filte

r

Information Process Central Control Unit Environmental Influences

Internal research And evaluation of alternatives

External research and evaluation of alternatives

Purchasing Process

Results

12

Product

• Definition: “Any thing that can be offered to somebody to satisfy a need or a desire”.

• Product Vs. Service• Miopia of marketing: product Vs. need

What is marketing

13

Value, Cost and Satisfaction

What is marketing

NEED RATE PROD.A SATISFACTION A PROD. A PRICE PROD. B VALUE-PRICE A SATISFACTION B PROD. B PRICE VALUE-PRICE BOBJECTIVE 1 3 3 9 2 6OBJECTIVE 2 5 4 20 2 10OBJECTIVE 3 8 6 48 9 72OBJECTIVE 4 2 3 6 2 4

83 50 33 92 80 12

• The value of a product /offer is tied up with its capacity of meeting the objectives relative to an attempt at satisfying a need

• Each objective has got its level of priority• Each product may give a different reaction so as to meet single

objectives • Satisfaction relative to a product is a function of the satisfactions

relative to various objectives ranked according to their levels of priority

• Theoretically, the product to be chosen is the one which maximizes the SATISFACTION - PRICE difference

14

Trade and transactions

• There are 4 fundamental ways to satisfy a need:– Self-production– Coercion– Begging– Exchange

• Trade consists of an act of obtaining the product desired by a person to whom something is offered in exchange

• In the case of transactions , values pass between two parties involved: actually, these are the basic units of trade.

What is marketing

15

MarketsA market consists of all potential buyers who, by sharing

a particular need, might be interested in getting involved in an exchange/ trade so as to satisfy the

said need or desire

.

What is marketing

SECTOR(OF A SET OF SELLERS)

MARKET(A SET OF BUYERSI)

GOODS AND SERVICES

MONEY

COMMUNICATION

INFORMATION

ELEMENTARY SYSTEM OF MARKETING:

16

FLOWSHEET OF MODERN TRADE ECONOMY

What is marketing

MARKETof

Products

MARKETof

Consumers

MARKET of Resources Money Money

Resources Resources

Publicsector

Leviesgoods

ServicesMoney

levies

services

Services, money

Levies, money

Leviesgoods

Servicesmoney

MARKETof

Intermediaries

moneymoney

Goods and services Goods and servics

17

Glossary• M.S. o Market Share :

– {sales} revenue/ Total value – Units sold/ Total units consumed

• Penetration– Units sold/Units of market

• Gross Profit or G.P.– GP per Unit: Unit Price - Unit Cost– TGP: Total Net Sales – Total cost of sold units

• G.P./P indicated with GP%– GP/Net sales

• Net profit / Pre-Tax– G.P. – opex - overheads

• Profitability

What is marketing

18

Simple Exercise #1What is marketing

Total Market 2005

Units 300 M UnitsValue ? M$ASP ? $

Company A

Units Sold 180 M UnitsASP 0,3 $Cost 0,09 $Net Sales ? M$Gross Profit ? M$GP% ? %MS% in Units ? %MS% in Value ? %

Company B

Units Sold 120 M UnitsASP 0,25 $Cost 0,09 $Net Sales ? M$Gross Profit ? M$GP% ? %MS% in Units ? %MS% in Value ? %

Question 1

19

Answers to Simple Exercise #1What is marketing

Total Market 2005

Units 300 M UnitsValue 84 M$ASP 0,28 $

Company A

Units Sold 180 M UnitsASP 0,3 $Cost 0,09 $Net Sales 54 M$Gross Profit 37,8 M$GP% 70% %MS% in Units 60% %MS% in Value 64% %

Company B

Units Sold 120 M UnitsASP 0,25 $Cost 0,09 $Net Sales 30 M$Gross Profit 19,2 M$GP% 64% %MS% in Units 40% %MS% in Value 36% %

Answer 1

NoB

20

Simple Exercise #2What is marketing

Total Market 2005 2006

Units 300 320 M UnitsValue 84 ? M$ASP 0,28 ? $

Company A

Units Sold 180 190 M UnitsASP 0,3 0,31 $Cost 0,09 0,1 $Net Sales 54 ? M$Gross Profit 37,8 ? M$GP% 70% ? %MS% in Units 60% ? %MS% in Value 64% ? %

Company B

Units Sold 120 130 M UnitsASP 0,25 0,28 $Cost 0,09 0,09 $Net Sales 30 ? M$Gross Profit 19,2 ? M$GP% 64% ? %MS% in Units 40% ? %MS% in Value 36% ? %

Question 2

Which CompanyDid „better” In 2006 ?

21

Answers to Simple Exercise #2What is marketing

Total Market 2005 2006 Var %

Units 300 320 M Units 6,7%Value 84 95,3 M$ 13,5%ASP 0,28 0,30 $ 6,4%

Company A

Units Sold 180 190 M Units 5,6%ASP 0,3 0,31 $ 3,3%Cost 0,09 0,1 $ 11,1%Net Sales 54 58,9 M$ 9,1%Gross Profit 37,8 39,9 M$ 5,6%GP% 70% 68% % -2,3MS% in Units 60% 59% % -0,6MS% in Value 64% 62% % -2,5

Company B

Units Sold 120 130 M Units 8,3%ASP 0,25 0,28 $ 12,0%Cost 0,09 0,09 $ 0,0%Net Sales 30 36,4 M$ 21,3%Gross Profit 19,2 24,7 M$ 28,6%GP% 64% 68% % 3,9MS% in Units 40% 41% % 0,6MS% in Value 36% 38% % 2,5

Answer 2

NoB

22

Marketing Management

• Marketing Management is a process of planning and realization of the project, pricing, promotion and distribution of ideas, goods and services in order to make trade/ exchanges which may allow to reach the objectives of individuals and corporations

What is marketing

23

Marketing vs. Sales

What is marketing

Starting point

Focus of attention

Means Targets

Conceptof

Sale

Production Products Sale and promotion

Profits through sales volume

Conceptof

Marketing

Market Customer’s needs

CoordinationActivitiesmarketing

Profits through customer’s satisfaction

24

What is the process of marketing management and how does it work

25

What is the process of marketing management and how does it work

• Definition of the process of Marketing Management• Dynamics of the process of Marketing Management

– Analysis of opportunities– Research into target market– Development of strategies– Planning, – Implementation and control

• Basic tools and concepts:– Marketing MIX (the 4 ‘P’ of Marketing)– Product’s life cycle– Marketing plan– Signs of International Marketing Management

26

Definition of the process of Marketing Management

The process of marketing management consists of analyzing market opportunities, researching and selecting target markets, developing marketing strategies and planning marketing actions which eventually will have to be realized and controlled

Process of Marketing Management

Analysis

Research

Strategies

Plans

Actions

Con

trol

27

Analysis of Opportunities• 1.1 ENVIRONMENT

– 1.1.1 TECHNOLOGICAL FACTORS– 1.1.2 POLITICAL FACTORS– 1.1.3 ECONOMIC FACTORS– 1.1.4 REGULATORY FACTORS– 1.1.5 SOCIAL FACTORS

• 1.2 MARKET

– 1.2.1 CONSUMER MARKET AND BUYERS BEHAVIOR

– 1.2.2 BUSINESS MARKET AND BUYERS BEHAVIOR

– 1.2.3 AGGREGATE MARKET FACTORS– 1.2.4 MARKET SIZE– 1.2.5 MARKET GROWT– 1.2.6 PROD.LIFE CYCLE– 1.2.7 SALES CYCLICITY– 1.2.8 SEASONALITY– 1.2.9 PROFIT VARIABILITY

• •


• 1.3 COMPETITORS

1.3.1 INDUSTRY COMPETITION ENVIRONMENT (PORTER MODEL)

1.3.1.1 POTENTIAL ENTRANTS

1.3.1.2 BUYERS POWER 1.3.1.3 SUPPLIERS

POWER 1.3.1.4 PRESSURE FROM

SUBSTITUTES1.3.1.5 INDUSTRY RIVALRY1.3.1.6 INDUSTRY

CAPACITY

1.3.2 IDENTIFYING COMPETITORS

1.4 ORGANIZATION

Analysis

research

strategies

Plansi

actions

cont

rol

28

Research of target market


analysis

research

strategies

plans

actions

cont

rols

• Market segmentation• Research criteria for target market• Selection of target market

29

Development of strategies


• The marketing strategy defines the logic through which a corporation hopes to reach its objectives on the market

• A marketing strategy consists in making decisions on marketing expenses, marketing-mix and allotment of marketing efforts in relation to the forecast environmental and competition conditions

• “Positioning”• “Differentiation”• “Marketing MIX”

Analysis

Research

Strategies

Plans

Actions

cont

rol

30

Planning, implementation and control

• Marketing Plan• Project Management

– Priorities– Milestones– Critical paths– Resources– Risk management

• Periodic feedback and updating of:– plans,– strategies.


Analysis

Research

Strategies

Plans

Actions

Con

trol

31

Marketing Mix

• Marketing MIX consists of marketing variables which can be managed with in order to reach the objective pre-defined in the field of the target market.

• The four “P”s of marketing:– Product– Price– Place– Promotion


Price

Product

Place

Promotion

MKTGMIX

Marketing-MIX

32

PRICE

• The role of Price• How to decide on the price

Process of Marketing Management Marketing-MIX

33

The Role of Price

– Coverage of costs ->profit

– Variable of positioning– Incentive for distribution

channels– Barrier/Entrance door– Demand manager Q =

f(P)

Process of Marketing ManagementIMarketing-MIX

• P>C always ?• What is positioning ?• Sellers, agents, resellers,

single agencies• multiple agencies.• Who can enter ?Q

P

34

How to decide on the Price

• COST BASED• P=C+D• Break-even: Revenue = Q*(P-Var.Cost)- Fixed Costs• Target Return: P = Target / Q

• COMPETITOR BASED• Market structure• Price leadership


35


• DEMAND BASEDDemand BackwardMarginal Cost=Marginal RevenueElasticity EstimationTest MarketingConsumer SurveyAwarenessMarket StructureProduct Importance

• NEW PRODUCT– Penetration – Skimming

• PRODUCT LINE STRATEGY– Consistency– Cross-elasticity

How to decide on the Price (cont.)

36

Il Processo di Marketing ManagementIl Marketing-MIX

How to choose the price (cont.)

37


How to choose the price (cont.)

38

Penetration and PricingFenwal Penetration

-20%

0%

20%

40%

60%

80%

100%

120%

ASP in US$


MS% Penetration Vs. Pricing

39

Pricing Sensitivity Milestones

P1 P2 P3 P4

PenetrationRate %

P1 -> From Customer InterviewsP2-> Price of Cheapest SubstituteP3-> Price of Expens. SubstituteP4-> Price of Competition


40

Price Setting and Key Compromises

Process of Marketing ManagementMarketing-MIX

NoB

N = number of Units Sold S = Sales = P*NGP = P- CGP% = (P-C)/PTGP= GP * N

P N C TGP

GP%

S

N

P

C

N

41

Total Profit: Price or M.Share ?MS%

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10

Price

MS%

GP/Unit

-4

-2

02

4

6

8

1 2 3 4 5 6 7 8 9 10

Price

GP/Unit

Total GP

-2,5

-2

-1,5

-1

-0,5

0

0,5

1

1,5

1 2 3 4 5 6 7 8 9 10 Total GP


42

Lessons Learned on Price Setting

1. There is always time to decrease prices, while price increases are difficult.

2. Never agree on a price without agreeing on the payments terms.

3. Never agree on price without agreeing on the exchange rate.

4. Never be light while discounting: 1. a 5% Price decrease on a 50% GP Product causes a 10%

Profit decrease2. while on a 30% GP Product causes a 16% profit decrease!!

5. Keep Price as LAST item to be negotiated always!.


NoB

43

Exercise on Price Setting

– Calculate the cost-based price of a bottle of water that cost (COGS) 0,2$ in order to obtain 32% GP.

– Perform a decision analysis for price setting of an highly innovative product balancing the needs of high profit, fast MS% penetration and the maintenence of high quality product.


Q

P0.294

44

PROMOTION


45

PROMOTION


• MAIN GOALS:– INFORM– PERSUADE– REMIND

• • MAIN METHODS:

– ADVERTISING– PERSONAL SELLING– SALES PROMOTION– Other PUBLICITY

46

PROMOTION


• PROMOTIONAL BLEND • Depends on:

– Product type– Corporate and market size– Maturity stage in the life cycle of a product– INTRODUCTION: Inform, stimulate primary demand– GROWTH: Persuade, Stimulate Selective demand.– MATURITY: Positioning, Persuade, Remind, Inform, New

users– DECLINE: Withdraw support not necessarily from channel

47

How to develop an advertising campaign: Fundamental parts


• Marketing targets• Increase in consumption

– Increase in MS– Development of “brand loyalty”– Generate ‘trials’– Improve relations with distributors

• Advertising targets– Definition of audience– Definition of timelines– Specific targets– Level of penetration

• Advertising Budget – Report with sales fcst– ROI approach– Marginal benefit– “all you can afford”– Target-tailored

• Creative strategy: what to say in relation to research and targets.

• Creative execution:– How to say it– How to draw attention– Maintain attention– Reach the targets– Be ‘legal’– Be ‘moral’– Be ‘ethical’

• Pretext• Strategy of the mass media• Measure the effectiveness

48

Evaluation of communication agencies and relations with the media


• Understanding of the targets• Capacity of critical

interpretation of the targets and of making valid proposals

• Orientation towards the result- Increase in MS– Development of “brand

loyalty”– Generate ‘trials’– Improve relations with

distributors• Capacity of transparent

estimation• Historical reports with the

media• Capacity of lobbing

• Make use of agencies for consolidating personal ties with the journalists of interest

• Cherish relations with journalists on a regular base

49

Exercise on Promotion:How much should we spend in Promotion?

– Choose (O1,O2 or O3) the maximum amount of promotional expenses for the below two cases of a product with a MS%/Opex curve as following:

– Make and Justify your choice using Decision Analysis


PromotionalExpenses (Opex)

MS%

PromotionalExpenses (Opex)

MS%

O1 O2 O3 O1 O2 O3

50

PLACE


• Options for sale:– Direct sellers

• Incentive schedules• Formation• Training

– Resellers• Negotiations on “transfer prices”• Sharing of strategies• Contractual Size/Power

– Agencies• Reference strategy for the commissions (sales Vs. profit)• Coherence on the territory

– Others• E-business• Mailing

51

Channels for Consumer Products

Producer Producer Producer Producer

Consumers Consumers Consumers Consumers

Retailers Retailers Retailers

Wholesalers Wholesalers

Agents orBrokers

WholesalerChannel

RetailerChannel

DirectChannel

Agent/BrokerChannel


52

Channels for Business-to-Business Products

Producer Producer Producer Producer

IndustrialUser

IndustrialUser

IndustrialUser

IndustrialUser

IndustrialDistributor


Agents orBrokers

Agents orBrokers

Agent/BrokerChannel


DirectChannel

Producer

GovernmentBuyer

DirectChannel

Agent/BrokerIndustrialChannel


53

Lessons Learned on Distributor management


1. Make sure you understand the cost structure of your distributors in order to:

1. Let them enjoy an actual margin that make your product attractive compared to other opportunities.

2. Make sure that they do not take too much of your margin.2. Have clear exit clauses in the contract.3. Ensure that you have access to customer and to

sensitive marketing information during the execution of the contract.

4. Never let your distributor be your only choice in a Country: keep good relationship with other distributors and maintain your negotiation power.

5. Never give to distributors to control exclusively the Price to end-customers.

NoB

54

PRODUCT• The role of the products

• CASH FLOW• COMPANY IMAGE• OVERHEAD CONTRIBUTION• SHARED ECONOMIES• PERSONNEL SUPPORT• LINE COMPLETENESS• TEMPORAL DEMAND ADJUSTMENT• DIVERSIFY RISK• DEFENSIVE POSTURE• DEALERS SUPPORT• SHELF SPACE• PROFIT• BARRIER TO ENTRY• COMPETITIVE MESSAGE• FLEXIBILITY


• Importance of the products

• SKU (Inventory)• MANAGEMENT TIME• MARKETING SUPPORT• ADMINISTRATIVE• EXPOSURE / RISK• INVESTMENT• BARRIERS TO EXIT• FLEXIBILITY

55

Why new PRODUCTs fail?


1. An high level executive might push a favorite idea in spite of negative market research findings.

2. The idea is good , but the market size is overestimated.

3. The actual product is not well designed.4. The new product is not correctly positioned in the

market, not advertised effectively, or overpriced.5. Development costs are higher than expected.6. Competitiors fight back harder than expected.

NoB

56

Factors Influencing Adoption Process


1. People differ it their rediness to try new Products

2. Personal – Reciprocal Influence3. The type of Innovation:

1. Relative Advantage over existing products2. Compatibility3. Complexity4. Divisibility

NoB

Time

% ofCustomers

1,5%Innovators

13,5%Early

Adopters

34%Early Majority

34%Late Majority

16%Laggards

57

PRODUCT

• The House of Quality:• Allows the definition of

characteristics of a product by putting all the critical variables into the decision-making process:– Technical

requirements– Customer’s

requirements– Differentiating

requirements– Characteristics of

competing products


Easy to put on

Comfortable when hanging

Fits over different clothes

Accessible gear loops

Does not restrict movement

Lightweight

Safe

Attractive

PERCENTAGE OF TOTAL

54 81.2 63 23.4 70.2 191.6 98.6 30

9 13 10 4 12 31 16 5

Our product

Competitor A's product

Competitor B's product

DESIGN TARGETS

Y

Y

Y

174g

193g

157g

250

321

198

5

3

6

4

5

4

4mm

8mm

3mm

1

4

1

4

5

3

Y 160g 250 8 6 4mm 2 4

612

Performancemeasures

Size ofrange

Technicaldetails

DIRECTION OF IMPROVEMENT

CUSTOMERREQUIREMENTS

TECHNICALREQUIREMENTS

2

5

1

3

5

3

5

2

+

-

+ +-

--Key to roof / correlation

matrix symbols+ Positive / Supporting- Negative / Tradeoff

Strong interrelationship

Medium interreltionship

Weak interrelationship

Key to interrelationship matrix symbols

PLANNING MATRIX

3

1

2

3

1

2

4

5

3

4

2

5

1.2

1.2

1.6

2.6

1.2

11.2

4

3

3

4

2

4

4

2

3

2

2

1

5

3

5

5

3

3

4

3

1.2

1.0

1.0

1.0

1.2

8.4

3.0

3.0

6.0

2.6

7

22

3

8

29

8

16

7

Total (100%) 38

Del

ta R

atin

g

Del

ta R

atin

g X

Wei

gh

Our

(exi

stin

g) P

rodu

ct

Tech. Priority % of TOTAL

Rock Climbing Harness

58

EXERCISE• The House of Quality:• Exercise: Rock Climbing Harness• A climbing harness is a piece of equipment used in certain types

of rock-climbing, abseiling or other activities requiring the use of ropes to provide access and/or safety (eg industrial rope access, working at heights, etc.). A harness is used to secure a person to a piece of rope or an anchor point of some kind.

• In its simplest form a harness can be fashioned from a length of rope or a nylon tape sling tied round the waist and attached to the rope, usually by means of a carabiner. More sophisticated harnesses exist in many different patterns, designed to give greater comfort and security, and to provide more options for carrying equipment.

• There are three main kinds of harnesses.

• Sit Harness• A sit harness comprises of a waist belt and two leg loops which

are normally connected in the front of the hips either through a permanent webbing loop (sometimes called a belay loop) or through the use of a carabiner.

• These harness are the most commonly used for recreational activities such as abseiling or rock-climbing as a wide range of movement is afforded whilst still maintaining a good level of safety.

• Chest Harness • A chest harness is worn around the shoulders. These harness

are not used on their own, but normally in conjunction with a sit harness so as to provide an additional attachment point further up the body. This additional attachment point can prove valuable in some circumstances as it allows for better balance when carrying a heavy pack (as the centre of mass is well below the connection to the rope) or where the person in the harness may be unable to maintain an upright position (due to injury or other influences).

• Full-body Harness • A full-body harness is most commonly used in industrial/rescue

situations. In essence is it the combination of a sit harness and a chest harness which are permanently or semi-permanently connected to each other. These harnesses normally offer a very extensive range of attachment points allowing for safe positioning in a number of positions.

• Whilst these harnesses can be improvised as mentioned earlier, it is recommended that a commercially produced harness be used wherever possible. This is because there are stringent guidelines surrounding the manufacture of harnesses, and as such a store-bought harness is safer and often more comfortable than an improvised one.


Easy to put on

Comfortable when hanging

Fits over different clothes

Accessible gear loops

Does not restrict movement

Lightweight

Safe

Attractive

TECHNICAL PRIORITIES


Our product



DESIGN TARGETS

Performancemeasures

Size ofrange

Technicaldetails




Key to roof / correlationmatrix symbols+ Positive / Supporting- Negative / Tradeoff


Medium interrelationship



PLANNING MATRIX

Total (100%)M

eets

Eur

opea

n S

tand

ards

Del

ta R

atin

g

Del

ta R

atin

g X

Wei

gh

3

1

2

3

1

2

4

5

3

4

3

3

4

2

4

4

2

3

2

2

1

5

3

5

Our

(exi

stin

g) P

rodu

ct

9 13 10 4 12 31 16 5

Y

Y

Y

174g

193g

157g

250

321

198

5

3

6

4

5

4

4mm

8mm

3mm

1

4

1

4

5

3

54 81.2 63 23.4 70.2 191.6 98.6 30 612

2

5

1

3

5

3

5

2

Webbing Strength = Resistenze della tessituraWebbing Strength = Spessore del riempimentoPadding thickness = Spessore del riempimento

Buckles = Elementi in plastica ricurviGear loops = numero di giri sul gancio

59

EXERCISE

• The House of Quality:• Exercise


PERCENTAGE OF TOTAL

Our product



DESIGN TARGETS

Performancemeasures

Size ofrange

Technicaldetails




Key to roof / correlationmatrix symbols+ Positive / Supporting- Negative / Tradeoff


Medium interrelationship



PLANNING MATRIX

Total (100%)

Del

ta R

atin

g

Del

ta R

atin

g X

Wei

gh


60

Product Life Cycle

Time

Dol

lars

ProductCategory Profits

ProductCategory Sales

IntroductoryStage

GrowthStage

MaturityStage

DeclineStage

0

Process of Marketing ManagementLife Cycle

61

Marketing Strategies for PLC

INTRODUCTION GROWTH MATURITY DECLINE

ProductStrategy

DistributionStrategy

PromotionStrategy

PricingStrategy

Limited modelsFrequent changes

More modelsFrequent changes.

Large number of models.

Eliminate unprofitable

models

LimitedWholesale/

retail distributors

Expanded dealers. Long-term relations

Extensive.Margins drop.Shelf space

Phase out unprofitable

outlets

Awareness. Stimulate

demand.Sampling

Aggressive ads.Stimulatedemand

Advertise. Promote heavily

Phase outpromotion

Higher/recoupdevelopment

costs

Fall as result ofcompetition &

efficient produc-tion.

Prices fall (usually).

Prices stabilize at low level.

Process of Marketing ManagementLife Cycle

62

Il Processo di Marketing ManagementLife Cycle

63

Il Processo di Marketing ManagementLife Cycle

64

- 4Ps are four investment forms- How do I decide in which product/product group/SBU to invest ?- There are several method of resources allocation:

- Graphical Portfolio Methods- Mathematical Portfolio Methods- Analytic Hierarchy Process

Managin Product Portfolio:Resources Allocation Issues

Marketing Management Process

NoB

Resources Allocation

65

Growth–Share Matrix


NoB


Relative Market Share

STARTS

CASH COWS

QUESTION MARKS

DOGS

Mar

ket

Gro

wth

Rat

e

High Low

High

Low

Stars:Maintain share by investing earnings in Price reductions, priduct refinement, advertising and personal selling to discourage competitive entry.Cash Cows:Milk the cash and invest in marketing only enough to maintain share.Question Marks:Investing in market segmentation strategies, thereby reducing competition and increasing share.OrReduce investment and let the product drop in DOGS.Dogs:Move to Cash Cow by increasing the market share if returns exceed the cost of segmentation strategy.OrDrop the product.

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Directional–Policy Matrix


NoB


Business Sector Prospects

Disinvest

Com

pany

’s C

ompe

titi

ve C

apab

ility

Unattractive Attractive

Weak

Strong

Business Sector Prospects::Market Growth rateMarket QualitySupply of raw materialEnvironmental (regulatory) aspectsCompetitive Capabilities::Market Position (MS%)Product CapabilityProduct research and development

Average

Average

Phased Withdrawal

CashGeneration

Growth Or

Leader

Keep Or

Grow

Phased WithrdawalOr

Keep Double or Quit

Try Harder

Leader

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Club Med

Case Discussion

Case Discussion

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- Divide in 4 groups- Read againg the Club Med. Case- Perform Situation Appraisal for Club Med. American Challenge within the frame of the four „P”s of the Marketing Mix- Perform a Decision Analysis for Club Med. American challenge with specific reference to Product and Promotion.- Answer few Additional Questions:

- Are all the 4-Ps taken in consideration by Martin?- What id the Stage of Product Life Cycle in U.S. ?

- Preare your presentation on a flip-chart

Club Med Case Discussion

Im 1.1 Rev.5

Education

Transcript of Im 1.1 Rev.5