Marketing Management<br />Stephan Langdon, MBA, M.Ed.<br />
Class 2<br />
The Customer Value Proposition<br />PPT 1-3<br />
Three V’s Approach to Marketing<br />Define the value segment<br />Define the value proposition<br />Define the value netw...
REFLECTIONHow does MUJI demonstrate the Three V’s Approach to Marketing<br />Define the value segment<br />Define the valu...
Core Business Processes<br />Market-sensing process<br />New-offering realization process<br />Customer acquisition proces...
PPT 1-7<br />A Business Strategy – Figure 1.1 Page 5<br />Where to Compete<br />The product-market investment decision<br ...
Functional Strategies and Programs<br />Manufacturing strategy<br />Distribution strategy<br />Brand-building strategy<br ...
Logistical strategy
Quality program
Customer relationship program
Social technology strategy</li></li></ul><li>Criteria to Select Business Strategies<br />Is the ROI attractive?<br />Is th...
A Holistic Marketing Framework<br />Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall		         2-10<b...
The Strategic Planning, Implementation, and Control Processes<br />Copyright © 2009 Pearson Education, Inc.  Publishing as...
The Strategic Planning Gap<br />Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall		         2-12<br />
The Product-Market Investment Strategy<br />Invest to grow (or enter a product market)<br />Invest only to maintain the ex...
Ansoff’sProduct-Market Expansion Grid(memorize for exam and be able to apply)<br />Copyright © 2009 Pearson Education, Inc...
Opportunity Matrix<br />Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall		         2-15<br />
Threat Matrix<br />Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall		         2-16<br />
Activity<br />Please apply the opportunity and threat matrix to Muji and Gallo<br />
Strategic Uncertainties<br />Strategic Uncertainties<br />Will a major firm enter?<br />Will a tofu-based dessert product ...
Strategic Uncertainties<br /><ul><li> Performance improvements?
 Competitive technological           	 developments?
 Financial capacity of health care   	 industry?</li></ul>What will the<br />future demand?<br />
The Role of External Analysis<br />Strategic Decisions<br /><ul><li>  Where to compete
  How to compete</li></ul>External<br />Analysis<br />Identification<br /><ul><li>  Trends/future events
  Threats/opportunities
  Strategic uncertainties</li></ul>Analysis<br /><ul><li>  Information-need areas
  Scenario analysis</li></ul>Figure 2.1<br />
Chapter 2 - External and Customer Analysis<br />PPT 2-21<br />Customer Analysis<br />Segmentation<br />Identification of c...
Chapter 2 - External and Customer Analysis<br />PPT 2-22<br />Segmentation<br />How should segments be defined?<br />Benef...
PPT 2-23<br />The Brand Loyalty Matrix: Priorities<br />Low<br />Loyalty<br />Moderate<br />Loyalty    <br />Loyal<br />Me...
Customer Motivation Analysis<br />Identify<br />Motivations<br />Group and<br />Structure <br />Motivations<br />Assess <b...
Population and Demographics<br />Population growth<br />Population age mix<br />Ethnic markets<br />Educational groups<br ...
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Marketing Management 2011.02 mm

  1. 1. Marketing Management<br />Stephan Langdon, MBA, M.Ed.<br />
  2. 2. Class 2<br />
  3. 3. The Customer Value Proposition<br />PPT 1-3<br />
  4. 4. Three V’s Approach to Marketing<br />Define the value segment<br />Define the value proposition<br />Define the value network<br />
  5. 5. REFLECTIONHow does MUJI demonstrate the Three V’s Approach to Marketing<br />Define the value segment<br />Define the value proposition<br />Define the value network<br />
  6. 6. Core Business Processes<br />Market-sensing process<br />New-offering realization process<br />Customer acquisition process<br />Customer relationship management process<br />Fulfillment management process<br />
  7. 7. PPT 1-7<br />A Business Strategy – Figure 1.1 Page 5<br />Where to Compete<br />The product-market investment decision<br />A Business Strategy<br />How to Compete<br />Value Assets & Function area<br /> proposition competencies strategies and programs<br />Figure 1.1<br />
  8. 8. Functional Strategies and Programs<br />Manufacturing strategy<br />Distribution strategy<br />Brand-building strategy<br />Communication strategy<br />Information technology strategy<br />Sourcing Strategy<br />PPT 1-8<br /><ul><li>Global strategy
  9. 9. Logistical strategy
  10. 10. Quality program
  11. 11. Customer relationship program
  12. 12. Social technology strategy</li></li></ul><li>Criteria to Select Business Strategies<br />Is the ROI attractive?<br />Is there a SCA?<br />Will the strategy have success in the future?<br />Is the strategy feasible?<br />Does the strategy fit with the other strategies of the firm?<br />PPT 1-9<br />
  13. 13. A Holistic Marketing Framework<br />Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 2-10<br />
  14. 14. The Strategic Planning, Implementation, and Control Processes<br />Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 2-11<br />
  15. 15. The Strategic Planning Gap<br />Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 2-12<br />
  16. 16. The Product-Market Investment Strategy<br />Invest to grow (or enter a product market)<br />Invest only to maintain the existing position<br />Milk the business by minimizing investment<br />Recover as many of the assets as possible by liquidating or divesting the business<br />PPT 1-13<br />
  17. 17. Ansoff’sProduct-Market Expansion Grid(memorize for exam and be able to apply)<br />Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 2-14<br />
  18. 18. Opportunity Matrix<br />Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 2-15<br />
  19. 19. Threat Matrix<br />Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 2-16<br />
  20. 20. Activity<br />Please apply the opportunity and threat matrix to Muji and Gallo<br />
  21. 21. Strategic Uncertainties<br />Strategic Uncertainties<br />Will a major firm enter?<br />Will a tofu-based dessert product be accepted?<br />Will a technology be replaced?<br />Will the dollar strengthen against an off-shore currency?<br />Will computer-based operations be feasible with current technology?<br />How sensitive is the market to price?<br />Strategic Decisions<br />Investment in a product market<br />Investment in a tofu-based product<br />Investment in a technology<br />Commitment to off-shore manufacturing<br />Investment in a new system<br />A strategy of maintaining price parity<br />
  22. 22. Strategic Uncertainties<br /><ul><li> Performance improvements?
  23. 23. Competitive technological developments?
  24. 24. Financial capacity of health care industry?</li></ul>What will the<br />future demand?<br />
  25. 25. The Role of External Analysis<br />Strategic Decisions<br /><ul><li> Where to compete
  26. 26. How to compete</li></ul>External<br />Analysis<br />Identification<br /><ul><li> Trends/future events
  27. 27. Threats/opportunities
  28. 28. Strategic uncertainties</li></ul>Analysis<br /><ul><li> Information-need areas
  29. 29. Scenario analysis</li></ul>Figure 2.1<br />
  30. 30. Chapter 2 - External and Customer Analysis<br />PPT 2-21<br />Customer Analysis<br />Segmentation<br />Identification of customer groups that respond differently from other groups to competitive offerings. Thus, a successful segmentation strategy requires the conceptualization, development, and evaluation of a targeted competitive offering.<br />Who are the biggest customers? The most profitable? The most attractive potential customers?<br />Figure 2.2<br />
  31. 31. Chapter 2 - External and Customer Analysis<br />PPT 2-22<br />Segmentation<br />How should segments be defined?<br />Benefit Segmentation<br />Price Sensitivity<br />Loyalty<br />Applications<br />Multiple Segments versus Focus Strategy<br />
  32. 32. PPT 2-23<br />The Brand Loyalty Matrix: Priorities<br />Low<br />Loyalty<br />Moderate<br />Loyalty <br />Loyal<br />Medium<br />Highest<br />High<br />Customer<br />Low<br />to<br />Medium<br />Non-customer<br />High<br />Zero<br />Figure 3.4<br />
  33. 33. Customer Motivation Analysis<br />Identify<br />Motivations<br />Group and<br />Structure <br />Motivations<br />Assess <br />Motivation<br />Importance<br />Assign Strategic<br />Roles to Motivations<br />Figure 2.6<br />
  34. 34. Population and Demographics<br />Population growth<br />Population age mix<br />Ethnic markets<br />Educational groups<br />Household patterns<br />Geographical shifts<br />
  35. 35. Natural Environment<br />Shortage of<br /> raw materials<br />Increased<br />energy costs<br />Anti-pollution<br />pressures<br />Governmental<br />protections<br />
  36. 36. Consumer Environmental Segments<br />True Blue Greens (30%)<br />Greenback Greens (10%)<br />Sprouts (26%)<br />Grousers (15%)<br />Apathetics (18%)<br />
  37. 37. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 3-28<br />Secondary Commercial Data Sources<br />Nielsen<br />SAMI/Burke<br />MRCA<br />Simmons<br />Information<br /> Resources, Inc.<br />Arbitron<br />
  38. 38. Technological Environment<br />Pace of change<br />Opportunities<br />for innovation<br />Varying R&D <br />budgets<br />Increased regulation<br />of change<br />
  39. 39. Political-Legal Environment<br />Increase in <br />business legislation<br />Growth of special<br />interest groups<br />
  40. 40. 3-31<br />MIS Systems Provide Information on Buyer Preferences and Behavior:Dupont’s Pillow Study<br />Pillow Segments<br />23% - stackers<br />20% - plumpers<br />16% - rollers or folders<br />16% - cuddlers<br />10% - smashers<br />
  41. 41. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 3-32<br />What is a Marketing Information System (MIS)?<br />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. <br />
  42. 42. Internal Records and Marketing Intelligence<br />Order-to-Payment<br />Cycle<br />Sales <br />Information<br />System<br />Databases,<br />Warehousing, <br />Data Mining<br />Marketing<br />Intelligence<br />System<br />
  43. 43. Steps to Improve Marketing Intelligence<br />Train sales force to scan for new developments<br />Motivate channel members to share intelligence<br />Network externally<br />Utilize a customer advisory panel<br />Utilize government data resources<br />Purchase information<br />Collect customer feedback online<br />
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