MKT500 Discussion Board 10 "Marketing Strategy" Please respond to the attached questions. I have attached the question, scenario, and lecture notes. Thank You

"Marketing Strategy" 1.) From the scenario: 1.a.) Suggest two (2) marketing strategy options that Golds Reling, Inc. could implement. 1.b.) Select the option that you believe will be most effective for the new product launch. Justify your response. 2.) Imagine that you are about to launch a social networking site: 2.a.) Determine the target market to which your social media site will cater. 2.b.) Recommend a marketing strategy to entice your chosen target market to join your site. 2.c.)Determine the approach you will use to measure success. Provide a rationale for your response. MKT 500 Week 10 Scenario: Marketing Plans and Putting all Together. Slide # Slide 1 Scene # Scene 1 Narration MKT500_10_1_Samantha-1: Good morning, Ed. How are you doing today? [Ed, Samantha - Ed's Office] Ed and Samantha meet in the morning to discuss the next steps in the tablet PC launch. MKT500_10_1_Ed-1: Good morning, I'm great. I was just looking over the work we've done so far for this launch. Things are progressing quite nicely. MKT500_10_1_Samantha-2: I can't believe we're already on the final step of creating the marketing plan. I'm really proud of the work we've done, and I'm excited to put it all together in a written marketing plan. MKT500_10_1_Ed-2: Yes, it is an exciting process. You have been a tremendous help throughout this journey, so you should feel proud. I spoke with Carl earlier. He said that now that we have met for the past ten weeks in and out of meetings he would like to see a recap of your marketing plan. MKT500_10_1_Samantha-3: Yes, I agree, Ed. Putting everything together in a written plan is the ultimate goal of our efforts. I have some ideas for where to start that I learned from my Strayer classes. See, a good marketing plan begins with an assessment of where things currently stand for Golds Reling. This is called the situation analysis, and is documented by the 5Cs. Marketers draw on those Cs to develop segments and choose segments to target, by using segmenting, targeting and positioning, which, as you know, is abbreviated, STP. The STP section of the marketing plan usually involves summaries of marketing research. Marketing and financial goals follow, which stipulate the objectives the company wishes to achieve, as well as how success and ROI will be measured. (Display SWOT graphic on screen) MKT500_10_1_Ed-3: You're right, Samantha. As you may recall from your classes at Strayer, the first step in building a marketing plan involves a corporate self-examination. The company uses a SWOT analysis to determine its strengths. It also decides on its goals. I'm sure you'll also recall that a SWOT analysis is a method that companies use to analyze the strengths, weaknesses, opportunities, and threats to create the foundation of a marketing strategy. With the S and W, we're characterizing the company: 'What are our strengths and weaknesses?' With the O and T, we're characterizing the broader environment, such as the industry as a whole, suppliers, or government: 'What are the opportunities and threats to our company?' S and W are considerations internal to the organization, whereas O and T are external and beyond our control. MKT500_10_1_Samantha-4: I do remember learning about SWOT analysis at Strayer University. However, I've never seen one actually implemented. Can you explain how we will apply the SWOT analysis to help develop our marketing strategy? Slide 2 Interaction Click the tabs for more information on Golds Reling's SWOT analysis. Customer: As a part of gaining a better understanding of our MKT500_10_1_Ed-4: Sure. There are four factors that we will consider when examining our strengths, weaknesses, opportunities, and threats. MKT500_10_1_Ed-5: Click the tabs for more information on Golds Reling's SWOT analysis. MKT500_10_1_Ed-5A: As a part of gaining a better understanding of our current business, we will also try to understand our customers by collecting data on them. We will start with studying secondary data to know the background trends. Later on, we will collect fresh data on our current business, we will also try to understand our customers by collecting data on them. We will starts with studying secondary data to know the background trends. Later on, we will collect fresh data on our current customers, past customers, potential customers, our competitor's customers, and so on. Context: With regard to context, we will assess the macroenvironmental issues we must attend to. Some common sample questions that we should pose in order to understand the business context include: what are we known for? Or what do we want to become? We will revisit these questions when we see changes in our environments or if we change our brand or target segments. current customers, past customers, potential customers, our competitor's customers, and so on. MKT500_10_1_Ed-5B: With regard to context, we will assess the macro-environmental issues we must attend to. Some common sample questions that we should pose in order to understand the business context include: 'What are we known for?' and 'What do we want to become?' We will revisit these questions when we see changes in our environments or if we change our brand or target segments. MKT500_10_1_Ed-5C: We should also study the relationship we have with our providers in the supply chain. MKT500_10_1_Ed-5D: By constructing and using a SWOT analysis, we will be better able to determine our strength relative to other providers in the market place. Collaborators: We should also study the relationship we have with our providers in the supply chain. Competitors: By constructing and using a SWOT analysis, we will be better able to determine our strength relative to other providers in the market place. Slide 3 Scene 1, cont. [Ed, Samantha - Ed's Office] MKT500_10_1_Samantha-5: I see. Thanks for that explanation, Ed. I know that our team has written marketing plans for many of our previous product launches. Do you think that Carl is looking for how we are going to grow Golds Reling's business? MKT500_10_1_Ed-6: Yes, I do, but we need to take a deeper look into the Golds Reling business model and growth initiatives first. Let's show Carl the Ansoff Product-Market Growth Matrix. As you review the figure, you can see that it shows all four possible product and market combinations. Slide 4 Interaction Click the quadrants of the matrix for more information. MKT500_10_1_Ed-7A: Marketers simply encourage their current customers to purchase from them more frequently. This strategy is low risk, but it might max out quickly. MKT500_10_1_Ed-7B: Marketers using this strategy do not offer new products, but find a new use for their product which suits a new customer segment, or they plan to advertise through new outlets to reach different demographics. Market Penetration Strategy: In this scenario, marketers simply encourage their current customers to purchase from them more frequently. This strategy is low risk, but it might max out quickly. Market Development Strategy: Marketers using this strategy do not offer new products but find a new use for their product which suits a new customer segment, or they plan to advertise through new outlets to reach different demographics. Product Development Strategy: In this scenario, marketers introduce new products to their current customers. This approach is perceived to be a great way to really delight one's customers MKT500_10_1_Ed-7C: Marketers introduce new products to their current customers. This approach is perceived to be a great way to really delight one's customers and strengthen their loyalty. MKT500_10_1_Ed-7D: This is the most difficult and riskiest strategy in this framework. Marketers try to introduce new products to new customers. and strengthen their loyalty. Slide 5 Diversification Strategy. This is the most difficult and riskiest strategy in this framework. Marketers try to introduce new products to new customers. Scene 1, cont. [Ed, Samantha - Ed's Office] MKT500_10_1_Samantha-6: This is excellent, Ed. Carl will see from the Ansoff Matrix that we are adopting the market development strategy for our new tablets, which certainly justifies our growth needs and why the new tablet computer fits in with Golds Reling's existing product offerings. MKT500_10_1_Ed-8: Yes. Also, an important assessment in strategic thinking is corporate identity with regard to Golds Reling's philosophy toward the marketplace. In addition to SWOT and the Ansoff Matrix, we need to decide whether Golds Reling shows tendencies toward either offensive or defensive actions in our marketing plan, which are not necessarily correlated with the size of an organization. In offensive business strategies, the company attempts to take the lead; however, in a defensive strategy, the company is typically a follower, and often lacks the skills, resources, and entrepreneurial spirit to be a leader in the industry. For instance, a company with a large market share may have the resources to take the initiative and lead the other players in a new direction, which would be offensive action. However, small entrepreneurial companies frequently create something new in the marketplace that may elicit responses from other, bigger or older, competitors. Such responses would be considered defensive action. The role that Golds Reling plays in the marketplace can change over time. MKT500_10_1_Samantha-7: I remember learning the term \"value-added\" in my marketing classes at Strayer University. Is this what you are referring to as it relates to the dynamics of the marketplace? MKT500_10_1_Ed-9: Yes! Value-added is a term used in marketing today to measure a company's worth and competiveness in the eyes of the customer. Furthermore, it is not clear that being first-tomarket is always a good thing. For example, launching really new products like our tablet can be risky - adoption can be slow, and the pioneering company can take quite a hit. In comparison, the so-called \"quick-follower companies\" can learn from the leader's mistakes, and can benefit from customers learning how the new offering might be valuable in their lives. MKT500_10_1_Samantha-8: So what I think you are saying is that Golds Reling wants to be a leader for some of its brands in their respective markets, and more of a follower for its other brands, but overall we must continue to focus on value-added. Whether our orientation is on the offense or defense may vary across our brand portfolio mature, \"cash cow\" brands should be treated carefully, whereas more risk can be taken with newer ventures, like our tablet. This distinction depends on the products' life cycles and the stage of maturity of their industries. Lastly, there are dynamics coinciding with the 5Cs to take into consideration. MKT500_10_1_Ed-10: Perfect. You're totally right. MKT500_10_1_Samantha-9: Very interesting, Ed. I think we also need to understand the competitive forces that may affect our tablet launch. Additionally, I think we need to present to Carl a re-examination of strategic goals that we discussed in our previous meetings. Our goals may need to be adjusted as a result of changes in the external elements of SWOT, or when observing the effects of the 5Cs on perceived opportunities and threats. MKT500_10_1_Ed-11: I'm glad you mentioned this, Samantha. I have a video that we can watch that explains the five competitive forces that shape strategy. Slide 6 The Five Competitive Forces That Shape Strategy http://youtu.be/mYF2_FBCvXw Slide 7 Scene 1, cont. [Ed, Samantha - Ed's Office] MKT500_10_1_Samantha-10: Thanks, Ed. From what I understood from this video and from my classes at Strayer University, a company can dominate its market in one of three ways. First, it can strive for cost leadership, producing goods and services more efficiently than the competition. To deliver this, the company should have resources such as easy access to plentiful, good raw materials; cheaper labor sources; better information or other technologies; and so on. Second, a company might take the approach of differentiation. This strategy is an attempt to distinguish one's products as unique in the industry. Differentiation may be fostered through excellent quality in products and customer service, distinctive design, exclusivity, or valueadded bundled into the core purchase, among other things. The final approach is called focused. Whereas the cost leadership and differentiation approaches are said to be broad, the focused strategy is narrower. Companies using this strategy often serve niche markets, and customers in that segment can be very satisfied, very loyal, and rather price-insensitive. MKT500_10_1_Ed-12: Right. The strategy is to win and retain profitable customers. In writing our plan for Carl, as the \"do\" or action part of the plan, Golds Reling must know itself, its environmental context, its competitors, its collaborators, and its customers - which are the 5Cs - before knowing where it wants to go next or deciding there is a problem to solve or opportunity to exploit. At the end of the day, it is important for Golds Reling to keep an eye on our goals. We need to be smart about launching our new tablet. We can do this either by being consistent with our current business or in using this new action to ultimately move purposely through the positioning matrix. MKT500_10_1_Samantha-11: Ed, you are correct. In the end, the marketing plan is a document that should not only remind the marketers about the corporate goals but should also be a working document. It is important to remember that all of marketing, both strategy and planning, is iterative. In particular, Golds Reling must look for internal consistency throughout the planit is critical for good branding and good marketing that the whole of the plan be synchronous. MKT500_10_1_Ed-13: As you already mentioned, marketing plans are always works in progress. While they are intended to keep everyone on track, they are also not rigid. Thus, as situations change, Golds Reling must be able to modify the marketing plan. MKT500_10_1_Samantha-12: I think we are almost ready to meet with Carl. What do you think? MKT500_10_1_Ed-14: Yes, I agree, but there is one more thing that we need to add to the plan. That is a marketing dashboard. MKT500_10_1_Samantha-13: Why a marketing dashboard? MKT500_10_1_Ed-15: This will please Carl, who's a \"numbers\" guy, and additionally, a marketing dashboard will provide a visual image of the successes or failures of the new Tablet launch. Marketing dashboards are poised to aid marketers in the planning and execution of marketing initiatives, as well as with the evaluation of those campaigns to tie success or failure to overall financial performance. MKT500_10_1_Samantha-14: That makes a lot of sense, and I can see why we should include one. Let's finalize this information for Carl. MKT500_10_1_Ed-16: Good idea. But before we do, I think we should briefly recap the most important concepts we've covered today. Slide 8 Check Your Understanding 1. In the spirit of a SWOT analysis, a company's strengths are defined somewhat relative to_______. a) Behavior of non-buyers b) Other providers in the marketplace c) Customer satisfaction levels d) Competitiors' misfortunes Incorrect answer: A, SWOT is a strategic marketing planning tool. It is not used to determine consumer behavior. Correct answer: B, SWOT compares a company's strengths against the strengths of their competitors. Incorrect answer: C, SWOT is not a customer satisfaction measurement tool. Incorrect answer: D, SWOT does not measure competitors' misfortunes. This would occur through competitve intelligence. 2. Which strategy in the Ansoff Product-Market Growth Matrix combines current markets and current products? a) b) c) d) market development product development market penetration diversification Incorrect answer: A, Market development does not fit into the matrix quadrants. Incorrect answer: B, Product development does not fit into the correct matrix quadrant. Correct answer: C, market penetration. Looking at the graphic, one can easily determine that market penetration fits into the quadrant combining current markets and current products. Incorrect answer: D, Diversification does not fit into the matrix quadrants. The 5 C's In consideration of the 5Cs, if we are assessing the macroenvironmental issues we must attend to, such as legal, technical, and social changes, then we are considering our ______. a) b) c) d) context company customers collaborators Correct answer: A, context, Macro-environmental issues such as legal, technical, or social changes are considerations that occur within context. Incorrect answer: B, In the 5 C's, company is concerned with defining who the company is, what they are known for and good at, and what they want to become. Incorrect answer: C, Macroenvironmental issues are not a part of the customers as described by the definition of the 5C's found in the textbook. Incorrect answer: D, Macroenvironmental issues are not a part of the collaborators as described by the definition of the 5C's found in the textbook. Slide 9 Scene 2 [Ed, Samantha, Carl - Conference Room] Ed, Samantha, and Carl meet in the conference room to discuss the final written marketing plan and revised strategies of the product launch. MKT500_10_2_Carl-1: Good afternoon, Ed and Samantha. I saw you both looking very busy in Ed's office earlier. I'm looking forward to hearing the information that you two have put together for the marketing plan for our new tablets. MKT500_10_2_Samantha-1: Yes, Ed and I have been very busy. We have a lot of great ideas and revised strategies for our new tablet launch. MKT500_10_2_Carl-2: I'm glad to hear that. Go on, please. Display dashboard image MKT500_10_2_Samantha-2: Marketing strategies can be successful or unsuccessful. However, before even thinking about making any changes, we feel that Golds Reling needs to conduct an honest self-assessmentwhat does our brand portfolio look like and what are our strengths and weaknesses as measured by our newly created marketing dashboard? Therefore, we have proposed an extensive SWOT analysis as part of our plan. In addition, we have considered both what and how we would like to change, should the analysis conclude we need to do so: target segments, and if necessary, the 4P's of product, price, place, promotion. Thus, we have created an Ansoff Product / Market Matrix to guide Golds Reling's strategic initiatives. In conclusion, both Ed and I feel that with these strategies in place, Golds Reling is poised to increase profitability, in addition to achieving the goals we've discussed in previous meetings. To review, those goals include the following: One - Penetrate twenty percent of existing market segments for tablet computers within the first twelve months. Two - Reach a target segment of one million potential consumers within the first six months of launch. Three - Cross-sell current Golds Reling customers with the use of database marketing in international markets. Four - Obtain an initial markup of twenty percent on new tablet computer sales; and Five - Offer twelve month warranties for all new tablets sold. MKT500_10_2_Carl-3: Excellent. I like what I'm hearing. Your methods seem very reasonable and effective for marketing our new tablets. I'm excited to take a closer look at the written plan. Very nice work, both of you. Samantha, I would like to personally congratulate you on all the work you have done on this product launch. Over the past several weeks, your input has been integral in developing a solid marketing plan that I have no doubts will take Golds Reling through a successful tablet launch. As a reflection of all of your hard work, I would like to offer you full-time employment at Golds Reling as a member of my marketing team. You don't have to give me an answer today, but I sincerely hope that you will consider coming on board. No matter what decision you make, I wish you great success in your career. Slide 10 Scene 3 [Ed, Samantha - Hallway] MKT500_10_3_Samantha-1: What a day! I'm so excited about Carl's offer of employment. It appears that he was really impressed with my work. I'm eager to tell all of my classmates at Strayer University about my experiences here! MKT500_10_3_Ed-1: Your hard work has really paid off, Samantha. I'm so happy for you. As Carl mentioned, your work has been impressive, and I, too, hope that you will give some serious thought to taking Carl's offer. In the meantime, remember to complete the eActivity and the threaded discussion covering marketing plans for the new product launch. Take care! MKT500 Week 10 Lecture 1: Marketing Strategy Slide 1 Introduction In this lesson we will examine portfolio assessment, offensive versus defensive marketing strategies, linking marketing goals to tactics, and different strategies to achieve goals. Please go to the next slide. Slide 2 Objectives Upon completion of this lesson, you will be able to develop strategies to assess performance and achieve marketing goals. To support this objective, we will cover the following supporting topics: Portfolio assessment; Boston consulting group matrix (BCG); Offensive versus defensive strategies; Leaders versus followers; Measure to achieve marketing strategy; Linking goal and tactics; and Strategies to achieve goals. Slide 3 Slide 4 Portfolio Assessment Boston Consulting Group Matrix (BCG) Please go to the next slide. When determining the appropriate marketing strategy for a new product or brand extension, a company must first have knowledge of its current strengths and position. Similarly, when setting out on a road trip to Orlando, we don't necessarily know the trip route without knowing where the starting point is for the trip. Numerous questions must be asked by company staff in the form of a portfolio assessment. A portfolio assessment asks questions regarding the company's corporate identity, where the company currently stands, and it is the starting point that a marketing manager uses. The questions may encompass information related to the business the company is in and who its competitors are, as well as identify its strengths, weaknesses, opportunities, and threats. The marketing strategy will reflect the answers obtained to the questions and then an analysis of the portfolio of products the company offers. Please go to the next slide. A common tool that marketing managers use to conduct a portfolio assessment is the Boston Consulting Group Matrix which is commonly referred to as a BCG matrix. In a BCG analysis, the company's products are classified based upon their market share and whether or not it is weak or strong. Market growth is also taken into consideration as to whether the market share occurs in the context of a growing market or a slow market. There are four classifications that a BCG matrix uses to label a brand. The first classification refers to a brand with a small share in a market that is not growing and is referred to as a dog. The second classification applies to a brand with a large share in a market that is growing and is referred to as a star. The third classification includes a brand that is doing well in the market, garners a large market share, and is referred to as a cash cow. The last classification references a brand that isn't doing well in the market and is labeled a question mark. Obviously, a company wants to keep its star brands and minimize its dogs. With a star brand, a marketing manager needs to analyze the brand's competitors and be continuously aware of the threats to the star's success. This is accomplished so that the company is always ready to take action immediately if threatened by a competitor. With a brand that is considered a dog, the company has the option to minimize marketing and take in whatever profits are realized. A company can sit back and reap the benefits and profits realized by a cash cow brand and minimize marketing efforts. However, this approach may put the product in jeopardy and contribute to a faster decline of the brand in the product's life cycle. The performance of a question mark brand is unknown. There may be potential for the brand with increased marketing efforts such as quality improvements, promotional campaigns and price cuts for a limited timeframe. A BCG matrix consists of a two by two matrix which is used to conceptualize the potential of the brands being analyzed and includes all four classifications of star, dog, cash cow, and question marks. If a company has successful star and cash cow brands, it may be equipped to carry dogs and question marks. A question mark may be a product that is being newly developed, technology to improve upon efficiency, a product that is targeted for global expansion, or a product which is being tested in an uncertain market. Please go to the next slide. Slide 5 Check Your Understanding Slide 6 Offensive vs. Defensive Strategies Another factor that must be taken into consideration when developing a portfolio assessment is the identity of the company in terms of its philosophy of the marketplace. A company may be innovative, invest in research and development, and enter the marketplace with a new product regularly and frequently. Another company may be more conservative and not be a leader in the marketplace even though it may lead in other ways such as via market share. Some companies act in a more offensive manner by using price wars or by being strong competitive advertisers while other companies may be more defensive in their strategy. The approach that a company takes, whether it be offensive or defensive, may not have anything to do with the size of the company. For example, if a company possesses a strong market share, it may have the funds to be offensive in its approach, take initiative, and be a leader in the marketplace. Conversely, a smaller company may be a leader in developing new products and hence, gets attention from potential competitors. Slide 7 Leaders vs. Followers Please go to the next slide. A company can be classified as a leader or a follower for different reasons. A company may be considered a leader because it possesses a large market share, is innovative, is successful with new product development, is savvy at improving upon competitor ideas, or has a strong desire to please its customer base. A company that is considered innovative often has to take great risks when introducing new product ideas, brands, or line extensions. However, new product launches are often not successful since the product, brand, or line extension may actually be too new for consumers to accept since they do not have a frame of reference for the product or anything to compare the new product to. Consumers are not sure how they feel about the new product and what features are considered good. Because of this, they may be slow to accept the new product and purchase it. This was the case when personal computers were first introduced to the marketplace and consumers were totally unaware of what specifically they would use a personal computer for and what value the features of it held for them. A company may have the opportunity to learn from a leader company's mistakes with new product development and launches. As a result, this follower company may realize an increase in the market share when consumers become more aware of the value of a new product and end up purchasing it from the follower company after a bit of time has lapsed. There are instances where a company can be both a leader and a follower simultaneously. The company may have success with some products and hence, be a leader while also being a follower with other products. The leader versus follower distinction also depends upon the product life cycle stages. Slide 8 Measures to Achieve Marketing Strategy Please go to the next slide. Marketing metrics or measures are used to determine how well a company is doing on a variety of indicators. Metrics are used during the assessment phase, as well as during strategic planning. A company may wish to measure its profitability, customer and employee satisfaction, revenue, and areas where improvements are needed. The goals the company wishes to reach are taken into consideration as to what specifically is measured. Indicators are areas that are measured and evaluated so that the company is aware of where improvements can be made to increase profits and determine how successful the company is. An example of indicators would be sales, share, average prices, and levels of the products that a company offers. The indicators can be mapped using a dashboard which looks similar to the dashboard in a car that uses gauges to indicate revolutions per minute, gas levels, and engine temperature which are indicators of the car's actual and potential performance. Simply put, the indicators are the attributes the company cares about and which need to be measured so that action can be taken to improve the company's performance. Please go to the next slide. Slide 9 Linking Goals and Tactics Companies must be able to link their marketing goals with tactics that make sense. Four distinct goal classes have been identified and include monetary, customer satisfaction, position redefinition, and society concerns. Monetary goals relate to the company making money which is the reason for its existence in the first place. The contemporary environment and culture is that a company will make money for its shareholders. Monetary goals can be stated in terms of market share desired or sales goals. Sales goals can be set that compare sales by quarter, region, past quarters, or in relation to investments made toward current sales. Customer satisfaction goals are set by a company who wishes to enhance customer satisfaction, create customer loyalty through loyalty or rewards programs, and for those customers who assist the company in meeting its goals through word of mouth advertising. As we discussed previously, measures of the lifetime value of a customer can assist the company with developing tactics to retain customers over a longer timeframe. A company can also choose to redefine its position by measuring the amount of sales that are due to introducing a new product to the marketplace, rebuilding a brand, or increase or vary the type of advertising being used. Also, a review of how advertising dollars are spent and making decisions to change current advertising methods may help a company redefine its position. The increasing use of e-commerce is also a consideration for a company wishing to redefine its position. Addressing societal concerns through marketing efforts can also assist a company with meeting its goals. Initiatives related to employee career development, turnover reduction, making charitable contributions, and maintaining a strong presence in the community as an employment leader can strengthen a company's visibility and assist it with meeting its goals. Please go to the next slide. Slide 10 Strategies to Achieve Goals Slide 11 Summary To achieve the goals previously discussed, there are three strategies that can be taken. The first strategy is to do nothing. With a do nothing strategy, a company may choose to let a brand run its course without infusing any marketing funds. The second strategy is to do nothing differently and maintaining the status quo. The company would conduct business as usual by offering the same product at the same price with the same amount of marketing support. The last strategy involves taking action and doing something differently. But, thought must be given as to exactly what to do differently. Does the company look at segmentation, targeting, and positioning and change one or all three? Or, does it look at the four P's and make changes to one or all of them by taking an integrated marketing approach? Please go to the next slide. We have reached the end of this lesson. Let's take a look at what we've covered. First, we explained the importance of portfolio assessment and examined a BCG matrix. Next, we described offensive vs. defensive and leader vs. follower strategies. Next, we discussed measures to achieve marketing strategies, linking goals and tactics, and strategies to achieve goals. This completes this lesson. 2013 2013 Cengage Cengage Learning. Learning. All Rights All Rights Reserved. Reserved. MayMay not not be scanned, be scanned, copied copied or duplicated, or duplicated, or posted or posted to atopublicly a publicly accessible accessible website, website, in whole in whole or inorpart. in part. 16.1 1 6 Marketing Strategy 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16. 2 Marketing Framework 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.3 Marketing Goals Profit = Sales Revenue - Costs Sales Revenue = Sales Volume Price Costs = Variable Costs + Fixed Costs Thus, Profit = (Sales Volume Price) - (Variable Costs (Unit Cost x Sales Volume) + Fixed Costs) Growing profit is the ultimate marketing goal 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.4 Increasing Profitability To increase profitability, companies can 1. Increase sales volume 2. Change prices 3. Decrease variable or fixed costs 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.5 Profitability: Growing Sales To grow sales volume, companies can Grow the overall market or grow the company's market share \"Up-sell\" current customers to more expensive offerings Get customers to buy more frequently Steal customers from competitors Pursue another segment 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.6 Profitability: Growing Sales To grow sales volume, companies can, (cont.) Create new products Reduce brand switching by enhancing brand Adding value through a loyalty program Raising switching costs so leaving brand is unattractive 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.7 Profitability: Changing Prices To change prices, companies can Cut prices Raise prices 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.8 Profitability: Decreasing Variable Costs To decrease variable costs, companies can Find less expensive suppliers, outsource, become a niche player, etc. To decrease fixed costs, companies can Spend less on R&D and/or advertising, milk the brand, etc. 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.9 Ansoff's Growth Matrix Market penetration: current products, current markets Market development: current products, new markets Product development: new products, current markets Diversification: New products, new markets 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.10 BCG Matrix Classify according to market share and market growth Stars: optimize or hold Dogs: minimize or divest Cash cows: milk Question marks: invest or divest 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.11 General Electric Model The General Electric Model Measures market attractiveness and business strength Weights: how important dimension is Rating: how the company is doing 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.12 Porter's Strategies Porter's strategies Companies can dominate in 1 of 3 ways 1. Cost leadership 2. Differentiation 3. Focused 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.13 Tracy and Wiserna's Strategies 1. Operational excellence: deliver products smoothly, reliably 2. Product leadership: excellent quality; innovation 3. Customer intimacy: knowledge of customer needs 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.14 SWOT Understand company's identity/strengths/weaknesses in marketplace Consider opportunities and threats in marketplace 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.15 Do Something Differently Let's make more money Let's delight our customers Let's reposition our brand Goals beyond marketing Charitable or community contributions Boosting stability of local employment Demonstrating leadership in environmentally friendly business practices, etc. 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.16 Marketing Metrics 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.17 Managerial Recap Before making strategy changes, conduct a self-assessment Use dashboard indicators There are many ways to increase profitability There are goals beyond profitability 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16.18 2013 2013 Cengage Cengage Learning. Learning. All Rights All Rights Reserved. Reserved. MayMay not not be scanned, be scanned, copied copied or duplicated, or duplicated, or posted or posted to atopublicly a publicly accessible accessible website, website, in whole in whole or inorpart. in part. 17.1 1 7 Marketing Plans 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17. 2 Marketing Framework 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.3 Marketing Plan Overview 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.4 Situational Analysis An analysis of the current situation facing the company 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.5 5 Cs: Company Example Company questions What are we known for? Who do we want to become? Proposed answers A central point to coordinate receipt and dispersal of scholarships, to enhance college attendance and graduation rates. A brand as well-known as Unicef or World Wildlife Fund so we would be the 1st NPO a donor would think of when wishing to spend their largesse. 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.6 5 Cs: Customer Example Customer questions Demographics Psychographics Buying behavior Customer satisfaction? Proposed answers 30-45 to 60-65 years Care about higher education Give $20 or $50 once a year Never measured, assumed ok if repeated No, but give a calendar if receive $100+ Do we have a loyalty program? Why don't non-donors donate? They think they have to give large amounts Channel for donors? Are our buyers price sensitive? Send check by mail Let donors know that giving only a little is ok, and give more frequently Changes to expect? Should grown as awareness grows Begin with secondary research, then primary research 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.7 5 Cs: Context Example Context questions Economy Politics Proposed answers Concerned with economy Unknown; never tried a different appeal to Democrats and Republicans Legal Technology N/a Move more giving online, perhaps online videos of students' testimonials Societal Emphasize the many benefits of an educated populace 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.8 5 Cs: Collaborators Example Collaborator questions Proposed answers Good relations with supply chain? Fine so far, perhaps try to partner with some professional associations? Good relations with distribution channel members? Perhaps post ads on professional sites, Linked-In, etc., to broaden appeal 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.9 5 Cs: Competitors Example Competitor questions Proposed answers Who are they? Competitors' strengths? Any donation behavior: medical and health, museums & the arts, etc. Some have very good brand names 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.10 Marketing Plan Overview 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.11 Segmentation Example Segmentation questions Current customers Non-users Ideal customers Proposed answers Early 20s, some stay connected to friends, some click through and buy trips 40s and older Mid 20+ with good disposable income Identify segmentation variables that are relevant to the product 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.12 Targeting Example Targeting questions Estimate size and profitability Proposed answers Friendship connectors bring in no direct $ and only minimal from WOM; buyers are worth $625 a year (they take one trip every other year, approx. $1350) Corporate fit Maybe aim a little older, maybe we should stop trying so hard to be hip (we may be turning off older crowd) Rank desirability of segments 25-35better disposable income than younger, and more time than 35-50 crowd Find targets that Fit well with company Are profitable Are actionable 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.13 Positioning Example Positioning questions High quality and high price? or Low quality and low price? Compare to competitors? Distribution mass/exclusive? Promo heavy/light? Proposed answers High quality, prices are high but we say they're \"good value\" No one is exclusive To succeed, need some scale, which suggests wide availability/presence and mass promo if cheap (e-referral program) Positioning is executed via the 4Ps Write a positioning statement 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.14 Marketing Plan Overview 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.15 Product Example Product questions Are we high-end or basic? Proposed answers High-end, innovative What are our primary features? Convenient, trusted, good product What are our brand associations? Few due to minimal awareness as yet Where are we in product life cycle? Brand new 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.16 Pricing Example Price questions What are our customers' price sensitivities? Proposed answers Minimal, what is being digitized is valued, and the time-savings would be great Offer occasional price discounts? No reason, benefits outweigh high price Beneficial to price differently from competitors? No competitors yet, but keep price high to gain margin and spend on R&D 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.17 Promotion Example Promotional questions Our marketing communications (advertising) goals? Proposed answers Search engines, get into Sharper Image How to measure ad effectiveness? Click-thrus How to budget across IMC? Aim for BusinessWeek, Forbes 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.18 Place Example Place questions Proposed answers Will we be extensive or selective? Selective currently, one office Use more pull or push? Any conflicts to resolve? Pull Still forging relationships 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.19 Market Plan Considerations Establish a time line for actions Establish cost estimates Make sure that your 4Ps are consistent with one another Make sure that your 4Ps are what your target desires 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.20 Appendices 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.21 Marketing Plans Better marketing plans Have more refined detail Have precise estimates Shed light on weaknesses of the plan Are more actionable Allow for better forecasting, understanding of costs, tighter ops delivery, etc. 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.22 Managerial Recap When completing a marketing plan, remember the 5Cs, STP and the 4Ps The marketing plan reminds the company of its goals and serves as a guide to achieve those goals Marketing strategy/planning is iterative 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.23 Managerial Recap Marketing plans are works in progress As situations change, plans change More detailed plans are better Create a readable plan and market it 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17.24