Mountain Man Brewing Company is facing challenges as light beer sales increase and premium beer sales decrease. Their Mountain Man Light brand has higher costs but lower prices than their flagship Mountain Man Lager brand. The company must decide whether to invest in growing Mountain Man Light through advertising or risk cannibalizing sales of their core Mountain Man Lager brand.
3. How to make presentations
• Start with the end in mind
• Know your audience as well as possible
• Content is very important
• Keep it simple
• Outline your content
• Have a clear and sound structure
4. How To Speak so that People want
to listen
“Human voice is the most
powerful sound in the world”
-Julian Treasure
5. 7 deadly sins of speaking
• Gossip
• Judging
• Negativity
• Complaining
• Excuses
• Exaggeration
• Dogmatisim
6. HAIL
•Honesty - to be clear and straight
•Authenticity - to be yourself
•Integrity - to be your word
•Love - to wish them well
7. This tool box change the way you Speak
Register Pace
Timbre Pitch
Volume Prosody
10. What is Marketing?
• Marketing is Meeting needs Profitably
• Definition: Marketing is the activity, Set of Institutions and
process for creating, communicating , delivering and
exchanging offerings that have value for customers,
clients, partners and society at large
11. What is Marketed?
• Goods
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organisations
• Information
• Ideas
12. Core Marketing concepts
• Need, Want , Demand
• Target markets – It is set of customers we decided to do
marketing
• Positioning
• Segmentation – It is dividing a broad target market into
subsections
• Offerings
• Brand – It is an offering from known source
• Value – It is combination of Quality, Service and Price
• Satisfaction – It defines product performance in relation to
expectations
13. Updating P
Marketing Mix 4 Ps
Marketing
mix
place
product
price
promotion
Modern Marketing
Management 4 Ps
Marketing
mix
people
process
programs
performance
14. DEVELOPING MARKETING STRATEGIES AND
PLANS
• Defining the corporate mission – Short, memorable and meaningful
• Establishing strategic business units
• Assigning resources to each strategic Business unit
• Assessing growth opportunities – Intensive growth, integrated
growth, diversified growth
15. Business Strategic unit Planning Process
Swot analysis
Goal
formulation
Strategy
Formulation
Program
formulation
Implementation
Feedback and
control
17. Components Of Marketing Information System
• Internal records – order payment cycle,sales information, data
mining and ware housing
• Marketing Intelligence System supplies the happening data
• Collecting Marketing Intelligence on Internet and
communicating and acting on marketing Intelligence
• We have to communicate and act on Marketing Intelligence
closely co-ordinating the decision making process
19. Fore casting and Demand Measurement
• Market Potential is the limit approached by market demand as
industry marketing expenditures approach infinity for an
environment
• Total market potential = Potential number of buyers *Average
quantity purchased by a buyer * Price
• To measure the market potential we can use Multiple-Factor
Index method and Market-Build up Method
• We should forecast the future demand by using intentions of
buyers, composite of Salesforce opinion and expert opinion
20. The market Research Process
Defining the problem and research objective
Develop the Research Plan
Collect the Information
Analyse Information
Make Decisions
21. Creating Customer Value and
Relationships
Traditional Organisational Chart
Top
Management
Middle Man
Frontline people
Customer
Modern Customer Oriented
Organisational Chart
Customers
Frontline people
Middle Man
Top
Management
22. Maximizing Customers Lifetime Value
• Customer Profitability Analysis is conducted with tools of accounting
technique called Activity Based Costing
• Don Lehmann and Sunil Gupta recommended the following formula
CLV= 𝑡=0
𝑇 𝑃𝑡−𝐶𝑡 𝑅𝑡
(1+𝑖) 𝑡 - AC
Pt = Price paid by customer at time t
Ct = Direct cost of serving customer
Rt = Probability of customer repeat buying at time t
AC = acquisition cost i= discount rate
23. Customer Relationship Management (CRM)
• CRM is the process of carefully managing detailed information about
individual customers ‘touch points’ to maximize loyalty
• CRM includes personalizing marketing, customer empowerment,
customers review and recommendations
• Building loyalty include interacting with customers ,Developing Loyalty
Programs
• We should utilise customer data base and manage Data Ware Houses and
Data Mining
25. Six great traits that characterize all great ideas
“SUCCESS”
Simple – find a core idea
Unexpected – Grab peoples attention by surprising them
Concentrate – make sure any idea can be grasped and
remembered later
Credibility – give an idea believability
Emotion – help people see importance of idea
Stories – empower people to use idea through narratives
26. The buying Decision Process
Problem
Recognition
Information
Research
Evaluation of
Alternatives
Purchase
Decisions
Post purchase
Behaviour
27. Analysing business markets
What is organisational Buying
?
It is the decision making process by which formal
organisations establish the need for purchased
product and services and identify, evaluate and
choose among alternative brands and suppliers
28. Stages of Buying Process
• Problem recognition
• General Need Description and Product Specification
• Supplier Search
• Proposal Solicitation
• Supplier Selection
• Order routine Specification
• Performance Review
29. Managing Business to Business Customer
Relationships
• Close relationships are driven in part of supply chain
management ,early supplier involvement and purchasing
alliainces
• Four factors such as availability of alternatives, importance of
supply, complexity of supply and supply market dynamics
influence development of relation between business partners
• Business relationships have risks and opportunities involved in
it which are to be managed
• Many companies are using new technologies to improve the
way they do business with business to business customers
31. Bases for segmenting customers
• Geographic Segmentation – segmenting by region, city, rural
and semi urban
• Demographic segmentation – segmenting by age, family size,
gender, income, occupation, education
• Psychographic segmentation – segmenting by life style,
personality
• Behavioural Segmentation – segmenting by occasions,
benefits, user status, user rate, loyalty status, readiness stage,
attitude towards product
32. Major segmentation variables for business
markets
• Demographic – industry, company size, location
• Operating Variables – technology, user status, customer capabilities
• Purchasing Approaches – purchasing function organisations, power
structure, nature of existing relationship, purchasing criteria
• Situational Factors – urgency, specific application, size of order
• Personal Characteristics – buyer seller similarity, attitude towards risk,
loyalty
33. Competitive dynamics
• Expanding total Market Demand by attracting new customers and
increasing the usage of product
• Protecting Market Share by using strategies suitable for business such
as proactive marketing or defensive marketing
• We should choose a general attack strategy against our competitors
• Market nichers have to use innovative strategies to tap its customers
and sustain in the market against competition
34. Product Life Cycle
• Introduction – A period of slow sales growth as the product is
introduced in the market
• Growth – A period of rapid market acceptance and substantial
profit improvement
• Maturity – A slowdown in sales growth because the product has
achieved acceptance by most potential buyers
• Decline – Sales show a downward drift and profit erodes
35. Marketing in an Economic Downturn
• Explore the upside of increasing investment during
downturn
• Get close to customers in tough times as they change
what they want
• Review budget allocations at the time of economic
downturn
• Put forth the most compelling value proposition during
downturn
• Fine tune brand and product offering during downturn
36. Crafting the brand positioning
• Identifying Optimal Point of Difference(POD) and Point of Parity (POP)
between your product and your competitors is important in crafting
brand positioning
• Choosing PODs and POPs by using hypothetical Perpetual maps
• Brand Mantra is an articulation of the heart and soul of the brand
• Brand Mantras are short three to five word phases that capture the
irrefutable essence or sprit of brand positioning
37. Differentiation Strategies
• Means of differentiation : Employee differentiation
Channel differentiation
Image differentiation
Service differentiation
Emotional Branding :
Mystery adds complexity of relationships and people are
naturally drawn to know
Sensuality keeps five senses alert for sensory stimulus
Intimacy means empathy, commitment , passion
38. Positioning and Branding Small Business
• Creatively conduct low cost marketing research
• Focus on building one strong brands based on key associations
• Employ a well integrated set of brand element
• Create buzz and a loyal brand community
• Leverage as many secondary associations as possible
39. Creating brand equity
“Brand is a name, term, sign, symbol or design or
combination of them intended to identify the goods or
services of one seller or group of sellers and to
differentiate them from competitors”
Brand equity is the added value endowed on product and
services which may be reflected in the way customers
feel, think, and act
40. Brand Equity Models
Strong relationships
Nothing else beats it
Does it offer some thing
Can it deliver?
Does it offer me some
thing
Do I know about it Weak Relationshippresence
relevance
performance
advantage
bonding
42. Choosing Brand Element
• Memorable – How easily do customers recall and recognise
brand element
• Meaningful – Is the brand element credible?
• Likable – How aesthetically appealing is the brand element ?
• Transferable – Can the brand element can introduce new
products in same or different categories ?
• Adaptable – How adaptable and updatable is the brand
element?
• Protectable – How legally protectable is brand element ?
44. Setting product strategy
• Product classification: Products falls into three groups according
to durability and tangibility
• Nondurable goods are tangible goods consumed in few uses:
shampoos, soft drinks
• Durable goods are tangible goods normally survive many uses :
fridges, machine tool, clothing
• Services are intangible, inseparable, variable and perishable
products that normally require more quality control, supplier
credibility
45. Product and services differentiation
Product differentiation
• Form
• Features
• Customisation
• Performance quality
• Conformance quality
• Durability
• Reliability
• Repairability
Services differentiation
• Ordering Ease
• Delivery
• Installation
• Customer Training
• Customer Consulting
• Maintenance and Repair
• Returns
46. Product and Brand Relationship
• The Product Hierarchy stretches from basic needs to
particular items that satisfy those needs
• Product system is a group of diverse but related items
that function in a compatible manner
• Product line analysis and product line lengths are
important factors that effects the brand
• Co Branding and Integrated branding are important
features to be considered
47. Developing price strategies & programs
• Price is not just a number on a tag. It comes in many
forms and performs many functions
• A changing price environment let you get instant price
comparisions from thousands of vendors
• Many customers use price as a quality indicator
• Image sensitive pricing is effective with ego-sensitive
products such as perfumes, expensive cars and
designer clothing
48. Steps in setting a price policy
• Selecting the price objective
• Determining Demand
• Estimating Costs
• Analysing Competitors Costs, Prices and Offers
• Selecting a Pricing Method
• Selecting Final Price
49. Initiating and Responding to Price Changes
• Initiating price cuts
• low quality trap : The customer assumes quality is low
• Fragile market share trap : Low Price buys market share but
not loyalty
• Shallow pocket trap : Higher priced competitors match lower
prices but have longer staying power because deeper cash
revenue
• Price war trap : Competitors respond by lowering their prices
even more triggering a price war
51. Designing & managing integrated
marketing channels
•Channel Design decision :
•Analysing Customer Needs and Wants
•Establishing objectives and Constraints
•Identifying Major Channel Alternatives
•Evaluating Major Channel Alternatives
52. Channel-Management Decisions
• Selecting Channel Members
• Training and Motivating Channel Members
• Evaluating Channel Members
• Modifying Channel Design and Arrangement
• Channel Modification Decision
• Global Channel Considerations
53. Channel Integration and Systems
• Vertical Marketing Systems : Corporate VMS
Administered VMS
Contractual VMS
• Horizontal Marketing Systems
• Integrating Multiple Channel Marketing Systems
• Similarly conflicts are also divided into Horizontal, Vertical and
Multi Channel Conflict
54. Managing retailing, Wholesale & logistics
• Retailing includes all the activities in selling goods directly to
final customer
• Types of Retailers :
• Store retailer – self service ,self selection ,limited services, Full
services
• Nonstore Retailer -- Direct selling ,Direct marketing, Automatic
vending, Buying Services
• Corporate Retailing and Franchising
55. Wholesaling
• Wholesaling include activities in selling goods or
services to those who buy for resale or business
• Merchant Wholesalers
• Full-service Wholesalers
• Limited-service Wholesalers
• Brokers and agents
• Manufacturers and retailers branches and offices
• Specalized wholesalers
56. Market Logistics
• Market logistics include planning the infrastructure to meet
demand then implementing and controlling the physical flow of
materials and final goods
M=T+FW+VW+S
• M= total market logistic cost of proposed system
• T= total freight cost of proposed system
• FW= total fixed warehouse cost of proposed system
• VW= total variable warehouse costs
• S= total cost of lost sales due to average delivery delay
58. Marketing Communication Mix
• Advertising
• Sales Promotion
• Events and Experiences
• Public Relations and Publicity
• Direct Marketing
• Interactive Marketing
• Word of Mouth Marketing
• Personal Selling
59. Developing Effective Communications
Identify target
audience
Determine
objectives
Design
communications
Select channels
Establish Budget
Decide on Media
Mix
Measure results
Manage
integrated
marketing
communication
60. Deciding the Marketing Communication Mix
• Advertising : pervasiveness, amplified expressiveness, control
• Sales Promotion :ability to attention getting, Incentives , invitation
• Public Relationship and Publicity : High credibility, Dramatization
• Events and Experiences : Relevant, Engaging, Implicit
• Direct and Interactive Marketing :Customized, Up to date, Interactive
• Word of Mouth Marketing : Influential, Personal, Timey
• Personal Selling : Personal interaction, Cultivation, Response
61. Managing mass communication
Mission
Sales goals
Advertising objective
Money
Factors to consider
Stages in PLC
Market Share and
consumer base
Message
Message generation
Message evaluation
Message execution
Media
Reach,frequency,impact
Geographic media
allocation
Measurement
Communicatio
n impact
Sales impact
62. Sales Promotion
• Major consumer Promotion tools : Samples, Coupons, Cash
refund offers ,Price packs, Premiums, Frequency Programs,
Prizes, Patronage awards, Free Trails, Product warranties, Tie
in Promotions, Cross Promotions
• Major Trade Promotional Tools : Price off, Allowance, Free
goods
• Major Business and Sales Force Promotion Tools : Trade
shows and Conventions, Sales Contests, Specialty Advertising
65. • Chris Prangel a recent MBA has come to manage marketing operation
of MMBC
• Light beer sales has increased by 4% from past 6 years
• Premium beer sales has decreased by 4% from 6 years
66. Mountain Man :The Company and Brand
• In 2005 MMBC was generating 50 million dollars revenue and is
selling 520000 barrels of beer
• $2.25 for 12 ounce serving of draft beer and $4.99 for a pack of six in
local convention store
• Its core drinkers are blue collar men , middle to lower income men
over age 45
• Best beer of Virginia in 2005 straight 8 years
• Best Beer or Indiana
• Mountain Man has its sales in East central Region
67. Mountain Man situation in 2005
• Mountain Man is generating sale of $75 billion in 2005
• The share of East central region in total U.S. beer sales is 18.3%
• Light Beer has accounted to 50.4 % in 2005 compared to 29.8% in
2001
• Mountain Man is know as West Virginia Beer and is recognised for its
toughness and bitter taste
• Mountain Man has relied on Grass Root Marketing to Spread the beer
68. Challenges ahead for Mountain Man Light
• The variable costs per barrel of Mountain Man Light is $4.69 more
than its premium beer
• Oscar Prangel has fears that Mountain man Light can cannibalize the
sales of Mountain Man Langer
• The advertising agency estimated creating a brand awareness levels
of 60% in East central region would cost $750000 in a intensive six
month campaign.
• This is top of annual incremental SG&A which is $900000
69. Chris decision
• From the financial projections he had done a few week before
Mountain Man Light is expected to grow at least .25% of total market
share every year and light beer is to grow by 4% in regional market
Share
• Chris looked at projections for Mountain Man lager which he
obtained to be 2% loss till 2010
• Chris is not able to decide whether to launch Mountain Man Light or
get with some strategy to improve sales of Mountain Man Lager
70. The Spring Field Nor’Easters
Maximising the revenues in the Minor
League
71. • Larry Buckingham is Marketing Director of Nor’Easters
• Jimmy Mercante is owner and President of club and Bob Cortez the
General Manager
• Before finalising the ticket rate Buckingham wanted undergo a survey
and keep the announcement made by Falcon in mind
• Bucking ham has experience in marketing events but he is doing it for
sports for the first time
72. The city of Springfield
• It is the third largest city in Massachusetts and a median income of
$37,800 for a family of three
• 25% of families live below poverty line
• 60% of families has children younger than 18 years of age
73. Minor League Baseball
• In 2008 there were 176 minor league baseball teams in U.S
competing through 19 regional leagues
• The teams are located in small towns, sub-urbs of large cities where
player development program
• The major league teams provided funding for salaries of players and
bat ball expenses
• Spring field stadium has 3600 seats under open air arena, 2000 seat
bleachers and 1600 grand stand seats
74. Developing the Sample to Survey
• Sample of 5000 names taken from Springfield census tracts of
households with income above poverty line at $90 per thousand
names
• 5000 names were obtained from mailing list of four sports related
organisations at $125 to $130 per thousand names
• The sample was heavily weighted towards the house holds with
children under 18 years of age and is 64%
76. • Even companies with formidable assets are slow to fend off free
product competitors .The reason is the ubiquity of the profit center
structure and mind set
• Assessing the threat
• Choosing whether and when to respond
• Offer a free better
• Rethink Profit Centers
77. How Big a Threat is Free Competition
Immediate
Threat
• Launch free
product
immediately
Business
Model Threat
• Change
Business
Model
Minor Threat
• Monitor
Situation
Delayed
Threat
• Delay Launch
of free
product
78. Four Tried and True Strategies
• Up-Sell – Introduce a free basic offering to gain wide spread use and
then change for a premium version
• Cross -Sell – Sell other products that are not directly tied to free
products
• Charge third Parties – provide a free service to user and charge third
party for access to them
• Bundle – offer a free product or service with a paid offering