Strategic Planning for Competitive Advantage

MKT 202, Taufique HossainStrategic Planning for Competitive Advantage

Elements of Marketing PlanThe BCG Matrix

BuildHoldHarvestDivest

Chapter FourManaging Marketing Information to Gain Customer Insights

Chapter 4- slide #Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallChapter 4- slide #Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallMarketing Research

Developing Marketing InformationMailTelephonePersonalOnlineFlexibilityPoorGoodExcellentGoodQuantity of data that can be collectedGoodFairExcellentGoodControl of interviewer effectsExcellentFairPoorFairControl of sampleFairExcellentGoodExcellentSpeed of data collectionPoorExcellentGoodExcellentResponse ratePoorPoorGoodGoodCostGoodFairPoorExcellentMarketing ResearchContact Methods6Chapter SevenCustomer-Driven Marketing StrategyCreating Value for Target CustomersChapter 7- slide #Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallChapter 7- slide #Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallMarket SegmentationSegmenting Consumer Markets

Market SegmentationGeographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities

Segmenting Consumer Markets

9Market SegmentationDemographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality

Segmenting Consumer MarketsMarket SegmentationAge and life-cycle stage segmentation is the process of offering different products or using different marketing approaches for different age and life-cycle groupsGender segmentation divides the market based on sex (male or female)

11Market SegmentationIncome segmentation divides the market into affluent or low-income consumers

Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits

Segmenting Consumer Markets

12Market SegmentationBehavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a productOccasionsBenefits soughtUser statusUsage rateLoyalty status

Segmenting Consumer Markets13

Chapter EightProduct, Services, and Brands: Building Customer ValueChapter 8 - slide #Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallChapter 8 - slide #Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall14

What Is a Product?Levels of Product and Services

Note to InstructorCore benefits represent what the buyer is really buying.

Actual product represents the design, brand name, and packaging that delivers the core benefit to the customer.

Augmented product represents additional services or benefits of the actual product.

It is a good idea for the students to bring in some products so the class can discuss the levels of product and services. Products including Gatorade, toothpaste, facial moisturizer or cosmetics work well in this discussion. You can often find augmented product features on the products Web sites including games, features and support.15Product Mix at Unilever

16Product Life-Cycle StrategiesProduct Life Cycle

Note to Instructor

Discussion QuestionName a product at each stage of the PLC.

This concept is very new to students. See if they can identify products or product categories that are in each stage of the model. Introduction might include online movie viewing software, growth might include MP3 players, maturity might include bottled water, and decline could include soda (actually in a decline) or videotape players.17Product development Sales are zero and investment costs mountIntroduction Slow sales growth and profits are nonexistent GrowthRapid market acceptance and increasing profits.Maturity Slowdown in sales growth and profits level off or declineDeclineSales fall off and profits dropProduct Life-Cycle Strategies18Product Life-Cycle StrategiesSlow sales growthLittle or no profitHigh distribution and promotion expense

Introduction Stage19Product Life-Cycle StrategiesSales increaseNew competitors enter the marketPrice stability or decline to increase volumeConsumer education Profits increasePromotion and manufacturing costs gain economies of scale

Growth Stage20Product Life-Cycle StrategiesSlowdown in salesMany suppliersSubstitute productsOvercapacity leads to competitionIncreased promotion and R&D to support sales and profits

Maturity StageNote to InstructorCars are very mature products so companies are always coming up with new models and features. This is a link to a very funny YouTube ad about a new car product.

21Product Life-Cycle StrategiesMarket modifyingProduct modifyingMarketing mix modifying

Maturity Stage Modifying Strategies

Note to InstructorThis link is for 1000 Uses of Glad Web site. It is described below, and in the book, as a way to modify the product. In modifying the market, the company tries to increase the consumption of the current product. It may look for new users and new market segments. The manager may also look for ways to increase usage among present customers. The company might also try modifying the productchanging characteristics such as quality, features, style, or packaging to attract new users and to inspire more usage. It can improve the products styling and attractiveness. It might improve the products quality and performanceits durability, reliability, speed, taste. 22Product Life-Cycle StrategiesMaintain the productHarvest the productDrop the product

Decline Stage

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Chapter TwelveMarketing Channels: Delivering Customer ValueChapter 8 - slide #Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallChapter 8 - slide #Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall24The Nature and Importance of Marketing ChannelsHow Channel Members Add Value

25The Nature and Importance of Marketing ChannelsHow Channel Members Add Value

Note to InstructorChannels perform the following functions:Information: Gathering and distributing marketing research and intelligence information about actors and forces in the marketing environment needed for planning and aiding exchange.Promotion: Developing and spreading persuasive communications about an offer.Contact: Finding and communicating with prospective buyers.Matching: Shaping and fitting the offer to the buyers needs, including activities such as manufacturing, grading, assembling, and packaging.Negotiation: Reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred.Physical distribution: Transporting and storing goods.Financing: Acquiring and using funds to cover the costs of the channel work.Risk taking: Assuming the risks of carrying out the channel work26The Nature and Importance of Marketing ChannelsNumber of Channel Levels

Note to InstructorThe remaining channels in Figure 12.2A are indirect marketing channels, containing one or more intermediaries. Figure 12.2B shows some common business distribution channels. The business marketer can use its own sales force to sell directly to business customers. Or it can sell to various types of intermediaries, who in turn sell to these customers. Channel 1, called a direct marketing channel, has no intermediary levels; the company sells directly to consumers. 27