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
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