New product Management: Increasing your odds of success
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New product Management: Increasing your odds of success

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Why new products fail and what you can do about it… a big presentation 1224 slides, 24 hours of instruction ..

Why new products fail and what you can do about it… a big presentation 1224 slides, 24 hours of instruction ..

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    New product Management: Increasing your odds of success New product Management: Increasing your odds of success Presentation Transcript

    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com INTRODUCTION The sad fact is 9 out of 10 new products/services fail. This course is about why products fail and what you can do to increase your odds of success. In this PDF you will find 11 lectures from my last course and a bonus lecture on viral marketing. I hope in 1224 pages that follow you will find new ideas and inspiration… If you have a new product or service you would like help with, please feel free to contact us. We offer a 1 hour first consultation free of charge… Bryan Cassady bryan@fast-bridge.com +32-475-860-757
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Click on layers to to the different lectures and slide titles Or simple go to the page numbers listed Eg. 6 Fist Movers vs. Fast Seconds _ 528 Starts on page 528 Click here for outline
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Dave’s story
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com "A medium-sized 'butter' popcorn at a typical neighborhood movie theater contains more artery-clogging fat than a bacon-and-eggs breakfast, a Big Mac and fries for lunch, and a steak dinner with all the trimmings — combined!"
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Talk to someone tonight…  The kidney heist  The story  The details (probably not all)  Movie popcorn  A lot of fat  The car  The visuals  The brand  The benefit  The non-profit company  ?
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A lie can get halfway around the world before the truth can even get its boots on. Mark Twain
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com To develop sticky ideas, make your message: 1 2 3 4 5 6
    • S imple U nexpected C oncrete C redible E motional S tory Based
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 1 2 3 4 5 6
    • 10 minutes
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com It is always easier to explain after the fact
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 16 reasons products fail (Nielsen) Lecture Number 1 A less-than-optimal "configuration" of product or service attributes and benefits is selected. 1 What is a new product 2 Marketers fall in love with a product no one else loves 3 Marketers assess the marketing climate inadequately. 2 Market research 4 A failure to ask the right questions and a belief that everything is a big idea 5 A questionable pricing strategy is implemented. 3 Pricing 6 Cannibalization underestimated 4 Forecasting and business planning 7 Over-optimism about the marketing plan leads to a forecast that cannot be sustained in the real world. 8 Too focused on the internal game not enough on the market 5 What really happens at work/ Selling a business case 9 Too focused on being first 6 Timing: Is there a first mover advantage 10 The Lemming effect 11 Lack of a strong sustainable position in the market 7 The basics of market interaction 12 The marketing plan for the new product or service is not well implemented in the real world. 8 Execution 13 The plan is too complicated 14 No Support to get things done 9 Selling your ideas 15 A weak positioning strategy is used. 16 The advertising campaign generates an insufficient level of new product/new service awareness. 10 Popper : Asking the 1 big question
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A group presentation 20-30 min Lecture 80-90 min Then a discussion 60 min
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Date Lecture Who Assignment Student Presentation Present Group Reading 11/02/2010 intro B Brand You None Summary: Made to Stick 18/02/2010 What is a new product B Concept proposals None New product evaluation methods Concept Training 25/02/2010 Market research B 3 big research Qs/ How to answer Concept proposals 1-Jan The wisdom of crowds 04/03/2010 Pricing for Value B Pricing Reco in 1 category 3 big research Qs/ How to answer 2-Jan TBD 11/03/2010 Forecasting and business planning B A systems view of the business Pricing Reco in 1 category 3-Jan Chapter 5 Senge + Fifth discipline 18/03/2010 Building Buzz and interest B A buzz activity: contest invite or link request A systems view of the business 4-Jan The cluetrain manifesto 25/03/2010 What really happens at work/ Selling a business case E Choosing the Best ad A buzz activity: contest invite or link request 5-Jan PG 99 01/04/2010 Timing: Is there a first mover advantage E First mover or fast second your reco Choosing the Best ad 6-Jan Managing What consumers learn through experience the second mover advantage 08/04/2010 No Class(Spring Break) X no assignment X X 15/04/2010 No Class(Spring Break) X no assignment X X 22/04/2010 The basics of market interaction (strategy) E Choice of a value discipline First mover or fast second your reco 7-Jan The discipline of market leaders 29/04/2010 S-D Logic (execution) E A service Mantra proposal Choice of a value discipline 8-Jan TBD 06/05/2010 Selling your ideas E A sales letter A service Mantra proposal 9-Jan Cialdini/ The new positioning 13/05/2010 New Class or no class ? E Winner or loser A sales letter 10-Jan TBD 20/05/2010 Class wrap up j no assignment Winner / Loser 11-Jan Nothing Practice Exam Due If all goes as planned , an Oxford style debate in the last class
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Success is a question of how to marshal your resources. Be really great in four or five areas. Make some hard choices. “The big challenge is to worry less about your weaknesses and build more on your strengths. Every success in your life will be based on your strengths.”
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Bryan Cassady Email: bryan@leuvenresearch.com Why did you take this course? :To teach it About you: A long time ago, an American boy came to Belgium, where he met a pretty woman in a Laundromat. They got married a year later and decided to stay in Europe. Since then, Bryan has set up 9 successful business in 7 different countries. Several of which should have never succeeded. Skills:  A born marketer and salesman with a proven track of record business start-ups and business development  A Talent for thinking outside the box and finding simple solutions to complex business issues. Driven by the challenge of new business initiatives…Proud to be able to make impossible things to happen. Now in academia, because he enjoys learning and teaching.
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com S imple Unexpected C oncrete C redible E motional S tory Based
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A less-than-optimal "configuration" of product or service attributes and benefits is selected. Lack of a strong sustainable position in the market Marketers fall in love with a product no one else loves The marketing plan for the new product or service is not well implemented in the real world. Marketers assess the marketing climate inadequately. The plan is too complicated A failure to ask the right questions and a belief that everything is a big idea No Support to get things done A questionable pricing strategy is implemented. A weak positioning strategy is used. Cannibalization underestimated The advertising campaign generates an insufficient level of new product/new service awareness. Over-optimism about the marketing plan leads to a forecast that cannot be sustained in the real world. Too focused on the internal game not enough on the market The Lemming effect
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A less-than-optimal "configuration" of product or service attributes and benefits is selected. Lack of a strong sustainable position in the market Marketers fall in love with a product no one else loves The marketing plan for the new product or service is not well implemented in the real world. Marketers assess the marketing climate inadequately. The plan is too complicated A failure to ask the right questions and a belief that everything is a big idea No Support to get things done A questionable pricing strategy is implemented. A weak positioning strategy is used. Cannibalization underestimated The advertising campaign generates an insufficient level of new product/new service awareness. Over-optimism about the marketing plan leads to a forecast that cannot be sustained in the real world. Too focused on the internal game not enough on the market The Lemming effect
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably. The Chartered Institute of Marketing (CIM)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Sometimes you gotta shoot the puppy before he grows up
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “There will always be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available.”Peter Drucker
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Expected
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Core Benefit Generic Product Expected Product Augmented Product Potential Product Q: Why is the iPod a success…
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com What makes what you’re selling Different and desirable
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  Business analysis  Evaluation of ideas  Making things happen 3 fundamental roles  Accountable for definition, development, marketing and profits of a product  Defines the business case, gets money, responsible for ROI  Managing a business A baby CEO
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Product Manager Customer Service R & D Logistics Advertising Top Management Sales Purchasing Marketing Research Legal Customers Finance Production
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Product management is one of the most common training grounds for senior executives. Many VPs and CEOs were formerly product managers. The joy (and sometimes pain) of product management is it’s horizontal nature, working with Sales, Development, Marcom, Finance, Professional Services and senior Executives. Product management is where we learn to lead through influence rather than mandate.” Barbara Nelson, Pragmatic Marketing
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com You have to keep pulling
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com High Low High New product lines 20% Improvements to existing products 26% Additions to existing product lines 26% New-to-world products 10% Repositioning's 7% Newnesstocompany Newness to market Size of circle denotes number of introductions relative to total
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Apple operating system vs. Windows This South African Shiraz received 87pts from Rovani, Wine Advocate #155
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “people look at what interests them and sometimes it’s your ad.” Howard Gossage
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 1965 1974 1981 1986 1990 1997 34% 24% 13% 12% 8% ? Percent of adult viewers who could name one or more brands advertised in a TV program they had just watched: Newspaper Ad Bureau
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com ‘‘More than nine out of ten consumable products launched in the last ten years offered absolutely nothing new to the consumer. More than eight out of ten new products fail. You don’t need to be a statistician to realize there’s a correlation between the two numbers.’’ -- Robert McMath
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Idea Generation Screening Concept Development & Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialization
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Ideas, screening Concept, analysis Prod. devel Test mktg commercialization The time to Make mistakes ! Budget
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “I think there’s a world market for about five computers.” (President of IBM) “TV won’t be able to hold on to any market it captures after the first six months. People will soon get tired of staring at a plywood box every night.” (President of 20th Century Fox)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “I think there’s a world market for about five computers.” (President of IBM) TV won’t be able to hold on to any market it captures after the first six months. People will soon get tired of staring at a plywood box every night.” (President of 20th Century Fox)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com today’s business
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Study Test Do
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Solution Do more But in my opinion, almost certainly wrong
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Ready, Aim,Fire
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Concept Development Implementation Project Start Concept Freeze Market Introduction Concept Time Response Time Total Lead Time
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Post-It-Notes: the super glue that wouldn’t stick Levi jeans: the failed gold digger feeding his family
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Ready, Fire, Aim
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Failure = Normal = Good. (“Reward excellent failure. Punish mediocre success.”) “Fail faster. Succeed sooner.“ “Fail. Forward” Tom Peters
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Concept Development Implementation Project Start Concept Freeze Market Introduction Concept Time Response Time Total Lead Time
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Fire, Fire, Fire
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com "Life is what happens while you’re busy making plans" --John Lennon
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Exultation Disenchantment Confusion Search for the guilty Punishment for innocent Distinction for uninvolved Introduction Testing/Test MKTG Screening & Refinement Idea Generation
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Remember Perspective is everything.” Two shoe salesmen... find themselves in backward part of Africa. The first salesman wires back to the head office.... there is no prospect of sales.. Natives do not wear shoes. The second wires "No one wears shoes here. We can dominate the market. Send all available stock
    • Plus organization in groups
    • business ideas Which puppy(ies) worth saving ?
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Group Number Pets.com Kosmo Despair.com Etoys.com Petrock.com Flooz Webvan Is there a benefit (real or percieved) People willing to pay (enough) Cost of cut-through acceptable People will see the benefit buy again / recommend to others Will someone hate it Kill Puppy (0 = kill, 1 = love) Member Views Class ID
    • Pets.com Pet supplies via the internet Save big, save time Stay at home
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Kosmo.com Instant delivery of products purchased via the internet in big cities. Order a wide variety of products, from movies to snack food, and get them delivered to your door for free within an hour.
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Despair.com We hate all the senseless, wasted time on employee motivation and un-founded optimism We imagine you do to, buy our products and show your true colors
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Continuous effort is the key to unlocking your potential Winston Churchill
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Etoys.com The new place to buy toys. Find you want on the internet
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Petrock.com Pets take a lot of time and energy. Your kids can have almost as much fun with a pet rock. We even include a care guide
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Webvan.com Buying groceries should be easier. With web van you can get all your groceries, so you have time for other things
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Group Number Pets.com Kosmo Despair.com Etoys.com Petrock.com Flooz Webvan Is there a benefit (real or percieved) People willing to pay (enough) Cost of cut-through acceptable People will see the benefit buy again / recommend to others Will someone hate it Kill Puppy (0 = kill, 1 = love) Member Views Class ID
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Where do big ideas come from ?
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Distinguishing Characteristic: Selecting between given means to achieve pre-determined goals Sometimes new means may be generated M1 M2 M3 M5 M4 Given Goals
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com E2 E3 E . . . En M1 M2 M3 M4 M5 Given Means Imagined Ends E1 Distinguishing Characteristic: Imagining possible new ends using a given set of means
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  Who is coming  What will they like  Plan a menu  Go Shopping  Make the meal  Enjoy Traditional  What is in the Fridge ?  What can we do with that  Guess what is for dinner ?  Enjoy ? Effectual
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com ?
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Leverage contigencies
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Who I am What I know Whom I Know What can I do? Interact with others Stakeholder pre- commitments New goals new means
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Causal Logic (predict) Visionary Logic (predict) Adaptive Logic (react) Effectuation Logic (negotiate) lowhigh low high Predictability ofthefuture Controllability of the future Effectuate … … under uncertainty … in new markets … for new products
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com The quickest easiest way to get started selling a product… Objective: Fast failures and maybe a big success
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Concepts are ideas that you think will resonate and mean something to people interested in a product or service. Good concepts are insight based.” “You need to think about what are the real benefits consumers are looking for. Concept statements should be written in a manner that stresses the strategic benefits of any given concept vs. creative writing appeal.” “While the copywriting should be neither boring nor bland, it is important to distill the idea down to its primary reason-for-being.”
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com or
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Reciprocity  On is more willing to comply with a request for participation to the extent that compliance constitutes repayment of a perceived gift favour or concession. Consistency  Once an individual has taken a freely chosen stand on an issue, he/ she will exhibit a tendency to act consistently with this commitment Social validation  Individual commonly decide on appropriate actions for themselves by searching for information as to how similar other have acted or are acting in a similar situation Authority  People are more likely to participate if a legitimate authority is asking for participation Scarcity  Requests than emphasise the value of “making your voice hear” or “having your opinion count” will be more effective when coupled with information suggesting that such an opportunity is rare.
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com What you need to deliver Group Core Concept + Loans: Home or personal 1 6 Core Concept + Credit Card 2 7 Core Concept + Insurance: Life, Home, Car, Travel… 3 8 Core Concept + Telephone/ Internet or Mobile 4 9 Core Concept + Utility: Gas, Electric, Water… 5 10
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Accepted beliefs Consumers are getting more and more frustrated with "unwanted mail“ The mail I send is not junk mail - it just needs to go to the right people There is a shortage of relevant data. Data is often out of date/not updated very regularly Benefit Select Post gives you the information you need to reach consumers that want your mail Reason to believe in the product Proven to work in other countries. Response rates 20-400% higher a program being developed with you in mind with the support of the Belgian Post brand Reassurance Developed in collaboration with leading companies, and industry leaders based on detailed consumer and advertiser testing Brand Character Always on the look out for win/win/ solutions. Always doing the right thing.... A good listener, willing to learn/open/progressive, well-informed/ever striving
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A less-than-optimal "configuration" of product or service attributes and benefits is selected. Lack of a strong sustainable position in the market Marketers fall in love with a product no one else loves The marketing plan for the new product or service is not well implemented in the real world. Marketers assess the marketing climate inadequately. The plan is too complicated A failure to ask the right questions and a belief that everything is a big idea No Support to get things done A questionable pricing strategy is implemented. A weak positioning strategy is used. Cannibalization underestimated The advertising campaign generates an insufficient level of new product/new service awareness. Over-optimism about the marketing plan leads to a forecast that cannot be sustained in the real world. Too focused on the internal game not enough on the market The Lemming effect
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 1000 40 1000 30 1000 20 1000 10 5,000
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Paradigms = models, patterns the basic way of perceiving, thinking valuing A dominant paradigm is seldom if ever stated explicitly; it exists unquestioned… transferred through culture and unspoken business practices William Harmon- An incomplete guide to the future
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Hot summers Warm winters Evidence of global warming Cold summers Cold winters Evidence of global warming
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com I will see it when I believe it vs. I will believe it when I see it Too much research is the first type
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  We often do research to check our brilliant ideas  SUGGING (Selling under the guise of market research) Issues  Objective criteria in place before the research starts  Is 35% planned purchase good or bad  Clearly define your biases before you start  Focus on insight (vs. confirmation)  Do regular reality checks Solutions
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “The formulation of the problem is often more essential than its solution” Albert Einstein
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Research that Produces Customer Insights Based on a lecture by M. Sawney (Northwestern University)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A good product manager  Builds, Shares, and uses insights Chris Start P&G
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Example “The consumer isn’t a moron. She is your wife.” David Ogilvy “We don’t sell cosmetics, we sell hope” Revlon
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com today’s business
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Offering (WHAT) Process (HOW) Presence (WHERE) Customers (WHO) 1 4 2 3 Networking Brand Supply Chain Organization Value Capture Customer Experience Platform Solution
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Offering (WHAT) Process (HOW) Presence (WHERE) Customers (WHO) Networking Brand Supply Chain Value Capture Customer Experience Platform Solution Organization
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Offering (WHAT) Process (HOW) Presence (WHERE) Customers (WHO) Networking Brand Supply Chain Value Capture Customer Experience Platform Solution Organization
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Offering (WHAT) Process (HOW) Presence (WHERE) Customers (WHO) Networking Brand Supply Chain Value Capture Customer Experience Platform Solution Organization One place all The info Answers in 30 minutes
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Using observation to formulate an idea or theory. “Qualitative” or “Interpretative” research draws on inductive reasoning. Sheba cats are part of the family Inductive Reasoning Taking a known idea or theory and applying it to a situation (often with the intention of testing whether it is true). “Quantitative” or “positivist” research draws on deductive reasoning. Sheba buyers are 240% more likely to buy pet magazines Deductive Reasoning
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Qualitative Research Quantitative Research Also Known As interpretative / responsive positivist / deductive Type of Reasoning (usually) inductive (usually) deductive Objective Generate insights that lead to hypotheses Validate insights by testing hypotheses Outcomes Illuminate a situation to create deeper understanding and insights Accept or reject a proposed theory, or get specific answers to well - defined questions Methods Qualitative, eclectic Quantitative, rigorous Approach to Validity truth seen as subjective and socially constructed truth seen as objective and universal
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com New understanding that is actionable and competitively unique Interpretation of the research findings Consider carefully the research objectives. Data Analysis and Data Reduction Traditionally, marketing researchers and research agencies stop here
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Of most value because offers new ways of looking at markets that lead to competitive advantage Summarizes the implications of the research for the business Selected information that is of interest, but lacking in implications Informs the business about a market, but no indication of relative importance of different pieces of information Of little value because it is usually difficult to understand and interpret on its own.
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Inductive, Qualitative, Exploratory Research that Produces Insights Deductive, Quantitative, Confirmatory Research that Validates Insights
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com New Products focus… Proactive, Episodic Reactive, Routine Validation Research Exploratory Research
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Customer insights Ideas from Innovative Customers and Partners Patterns in Customer Transaction Data Observation of Customer Behavior in Native Surrounding Anomalies and Discrepancies Metaphors and Analogies Introspection, Intuition and Brainstorming
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Top Management Product Development Legal and corporative affairs Corporate Marketing Market Research Product Marketing
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Worst practices Best practices
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Source : McKinsey Finance & Accounting Marketing Information Service Human Resources Market Research How useful is the information?Not very 1 2 3 4 5 very
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com How do you think the insight was developed ?
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com His conclusion… the idiots errors cancelled each other out
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Bringing new members into the organization, even if they’re less experienced and less capable, actually makes the group smarter simply because what little the new members do know is not redundant with what everyone else knows.” (p.31)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Alpha Group 138 132 135 139 135 137 Diverse Group 121 84 111 75 135 31
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Most of the time” the diverse group outperforms the group of the best by a substantial margin. See Lu Hong and Scott Page Proceedings of the National Academy of Sciences (2002)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Alpha Group ABD ADE BCD ABC BCD ACD Diverse Group AHK FD AEG EZ BCD IL
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com collective intelligence increases as the “herd mentality” decreases and the people in the group express what they genuinely think rather than going along with whatever everyone else is saying. “The more influence a group’s members exert on each other, and the more personal contact they have with each other, the less likely it is that the group’s decisions will be wise ones.” (p.42)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Decentralization means everyone in the crowd will try their own approach to the problem rather than having their efforts directed from the top down.
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Mon Tue Wed
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Brad: (8-8)2 +(10-12)2 +(10-9)2 = 5 Matt: (10-8)2 +(12-12)2 +(8-9)2 = 5 Crowd: (9-8)2 +(11-12)2 +(9-9)2 = 2
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com (Brad-Crowd)2 = 1 + 1 + 1 = 3 (Matt-Crowd)2 = 1 + 1 + 1 = 3
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Implication: Diversity can trump skill
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “If a group satisfies those conditions [diversity, independence, decentralization, aggregation] , its judgement is likely to be accurate. Why? At heart, the answer rests on a mathematical truism. If you ask a large enough group of diverse, independent people to make a prediction or estimate a probability, and then average those estimates, the errors each of them makes in coming up with an answer will cancel themselves out. Each person’s guess, you might say, has two components: information and error. Subtract the error, and you’re left with the information.” – James Surowiecki
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Armstrong’s seer-sucker theory… no matter how much evidence exists than seers do not exist, suckers will pay for the existence of seers…
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Why do we believe in seers… because we get fooled by randomness… because we are looking back not looking forwards..
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Why not just hire an expert… Because, groups usually do better than experts
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    • Conclusions Cheap crowds ≈ Expensive research Greater descrimination between ideas New Product Concept Monadic Test With matched samples of 100 in the target market (Top 2 Box Purchase Intent) Research Market 1* With diverse group of 500 people- *betting (Top 2 Box Purchase Intent) Significant Differences A 85 86 B 83 82 C 81 90 + D 78 91 ** E 74 69 UK Norms (top 2 box) 67 67 F 64 24 *** G 64 22 *** H 54 53 I 49 39 *** J 43 17 Respondent Base Sizes: Monadic = 100 per cell / Research Market *Betting =502 Fig. 1, Top Two Box Purchase Intention Result – Research Market 1*
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “The best collective decisions are the product of disagreement and contest, not consensus or compromise.” (p.xix) “The best way for a group to be smart is for each person in it to think and act as independently as possible.” (p.xix)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A less-than-optimal "configuration" of product or service attributes and benefits is selected. Lack of a strong sustainable position in the market Marketers fall in love with a product no one else loves The marketing plan for the new product or service is not well implemented in the real world. Marketers assess the marketing climate inadequately. The plan is too complicated A failure to ask the right questions and a belief that everything is a big idea No Support to get things done A questionable pricing strategy is implemented. A weak positioning strategy is used. Cannibalization underestimated The advertising campaign generates an insufficient level of new product/new service awareness. Over-optimism about the marketing plan leads to a forecast that cannot be sustained in the real world. Too focused on the internal game not enough on the market The Lemming effect
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Unfortunately, they lost a few dollars on every customer they served.
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Source: Compustat; Mckinsey analysis 100.0 19.2 68.3 12.5 101.1 13.5 Revenuees Fixed Costs Variable costs Operating profits 1 1 Price increase of 1.0% Price increase of 8.0%
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 2.3 3.3 7.8 11.1% Fixed cost Volume Variable cost Price …Create Operating Profit Improvement of 1% improvement in... *Based on average econimics of 2,463 companies in comopustat aggretate
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com And most importantly something you think about, not (and I repeat) not something determined solely by your competition
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Illustrating Price Relationship Price Vol. Rev. Cost Profit (£) Unit (m) (£m) (£m) (£m) 1 17 17 27 -10 2 16 32 36 6 3 14 42 24 18 4 9 36 19 17 5 7.5 37.5 17.5 20 6 5 30 13 15 7 3 21 13 8 8 2 16 13 8 9 1 9 11 -2 10 0 0 10 -10
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com -15 -10 -5 0 5 10 15 20 25 1 2 3 4 5 6 7 8 9 10
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com High Value Super Value Mild Value Economy
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com The right price is not objective, but value based
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com How much a rational consumer would be willing to pay for your product, if he had a perfect understanding of its actual worth* … John Gourville Harvard Marketing Guru
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com $120 $108 $480 $432 $100 $108 Price Labour Costs Servicing/Diesel $700 - $540 - 10% - 10% $ 700
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com The problem: result = ball dependent Consumers didn’t use the ball Worse results, product died (same idea back as Liquid compact)
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com High Price Low Price Price 31 18 Client 60 100 Cost/ Unit 14 10 Net/ unit 17 8 Profit 1020 800
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Our chef's thinking High Price Low Price Likely Best Case Price 31 18 24.5 54.5 Clients 60 100 80 85 Cost /unit 14 10 12 11.5 Net/ unit 17 8 12.5 13 Profit 1020 800 1000 1105 Differential Pricing High Medium Low Total Price 31 24.5 16 27.5 Clients 55 25 10 90.0 Cost /unit 11 11 11 11.0 Net/ unit 20 13.5 5 16.5 Profit 1100 337.5 50 1,487.5 Extra points % Increase Versus likely results 578 63% Versus maybe scenario 383 26%
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    • Before you start… Do you have a product someone wants ? If not, don’t waste your time
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Facts The new airplane will be competing against Cessna’s flagship C172 which has a list price of $300,000. This would be your logical starting price point. Thoughts Customers look to substitutes for clues on what your product is worth. Even if you have a great product but competitors set their prices unrealistically low, customers will assume your product is worth less. Substitutes Competitors Income Demand Environment
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Facts Your plane will have a faster cruising speed, a longer cruising range, a faster climb rate and a revolutionary new safety system. Your research suggests these attributes should be worth about $120,000 to purchasers. Your brand, however, is less well known meaning resale value will be affected. Detract $30,000 from the new airplane’s value to allow for this. Thoughts How your product measures up (in terms of attributes) by comparison with your competitors. Customers will look at brand, convenience, quality, service, style and other attributes to evaluate whether your product’s value is lower or higher. This dictates whether you can charge a premium. Substitutes Competitors Income Demand Environment $300,000
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Facts People who purchase your airplanes are able to claim a $25,000 tax break on their federal taxes because this plane features an enhanced safety system. Thoughts The income level of your product’s buyers, and whether they have discretionary income or watch every penny. Obviously the higher their income, the more “wriggle room” you have to increase your margins. Increases in your customer’s income will also impact their value perceptions Substitutes Competitors Income Demand Environment $300,000 $90,000
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Facts To cover increased operational costs, airports have recently raised their landing fees. To compensate for that, most airplane manufacturers are lowering their list prices by $20,000. Thoughts Changes in the price for related products. For example, the price of gasoline influences the relative value of gas guzzlers. Increases or decreases in the prices of any products which are related to yours will impact noticeably on the perceived value of your product. Substitutes Competitors Income Demand Environment $300,000 $90,000 $25,000
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Facts There have recently been some very positive news articles run in major newspapers talking about the benefits of private ownership of airplanes. It’s currently considered to be the “in thing” to do. This should allow you to increase your prices by about $15,000 Thoughts The overall market environment and whether your product’s value is going to be affected by the arrival of a fad, new information, or other external events beyond your control Substitutes Competitors Income Demand Environment $300,000 $90,000 $25,000 - $20,000
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com $5 $6 $7 $8 $9 $10 $11 $12 $13 $14 $15 Potential Price Points Too Cheap Expensive Too Expensive Bargain 100 Van Westerndorp Output 0 80 60 40 20 “Stress Zone” MPC (Marginal Cheap Price) OPP (“Optimal Price Point”) IDP (Indifference Price Point) MEP (Marginal Expensive Price)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com $5 $6 $7 $8 $9 $10 $11 $12 $13 $14 $15 Potential Price Points 40% 20% 0% Van Westerndorp Output
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Brand A Brand B Brand C I would not buy any of these. Brand A Picture Brand B Picture Brand C Picture No Bells and Whistles Bells and Whistles Bells, no Whistles Regular Shipping Next Day Delivery Two Day Delivery No Money Back Guarantee Money Back Guarantee Money Back Guarantee $27.00 $44.00 $35.00     A regression technique - usually multinomial logit -- is used to analyze the model. Even so, a fair amount of analysis can be done using high level data summaries.
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Note: Disguised example. Attributes and measures have been altered. Select the beverage you would be most likely to purchase at your next visit to a convenience store. If you would not choose any of these, select the “none” option. Next None
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Price +20% +15% +10% +5% Current -5% -10% Share of Demand Elasticity: Rate at which demand falls as price increases. 10% 14% 18% 22% 26% 30% 34% 36%
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Consumer surplus Ride 1 at $ 0 price Price willing to Pay per ride Demand 0 1 2 3 4 5 6 Number of rides
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Strategic Options Lever Segment Attribute Importance Price Discount Smart Consumer High Income Shopper Advance Purchase Smart Consumer High Income Shopper Airlines Smart Consumer High Income Shopper Restricted Timings Smart Consumer High Income Shopper Magnet Fence Proposed Design Discount Vocation travel Fare Feature Rationale  50% discount to full fare  Attract price sensitive “ Smart Consumer segment”  1 month advance purchase  No ability to specify airline carriers  Weekday department  Discharge “High income Shopper” from switching to low price seats
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Be Found offers several flexible pricing solutions which are all based on a "no cure no pay" model. For example you may choose to pay for the qualified visitors who enter your site, a flat fee for every new membership or a percentage of each online sale.
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “One fallacy is the belief that the consumer acts ‘logically’ in his or her buying decisions.” James P. Nault, Fairmont Foods
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Source: Dickson & Sawyer (1990)
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com $ 9.95 Shipping and handling = their profit Question: Why does it work
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com i iii ii iv
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    • I offered to pay €0 They then processed my order
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Note Best Selling album in 2008 4 million copies
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A less-than-optimal "configuration" of product or service attributes and benefits is selected. Lack of a strong sustainable position in the market Marketers fall in love with a product no one else loves The marketing plan for the new product or service is not well implemented in the real world. Marketers assess the marketing climate inadequately. The plan is too complicated A failure to ask the right questions and a belief that everything is a big idea No Support to get things done A questionable pricing strategy is implemented. A weak positioning strategy is used. Cannibalization underestimated The advertising campaign generates an insufficient level of new product/new service awareness. Over-optimism about the marketing plan leads to a forecast that cannot be sustained in the real world. Too focused on the internal game not enough on the market The Lemming effect
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • 0 1 2 3 4 5 6 7 8 9 10 utilities mortgage credit cards internet pension savings telephone personal loans insurance Lowest chance of success Highest chance of success
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 0 1 2 3 4 5 6 7 8 9 10 utilities mortgage credit cards internet pension savings telephone personal loans insurance Lowest chance of success Highest chance of success
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Group 2 3 4 5 6 8 9 Total Utilities 55 69 77 106 42 76 49 72 Credit cards 136 149 85 45 52 53 72 86 Mortgage 96 43 44 144 106 101 79 89 Pension 98 79 81 58 111 113 109 94 Internet 67 51 181 96 98 129 93 102 Savings 128 113 111 125 85 102 83 106 Telephone 75 98 135 75 163 105 136 111 Personal loans 114 132 79 141 129 78 144 114 Insurance 133 177 100 109 130 144 136 129 Correlations Group 0.42 0.58 0.50 0.48 0.40 0.40 0.34 0.45 Class 0.17 0.32 0.13 0.12 0.36 0.22 0.35 0.24
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Group 2 3 4 5 6 8 9 Total Utilities 55 69 77 106 42 76 49 72 Credit cards 136 149 85 45 52 53 72 86 Mortgage 96 43 44 144 106 101 79 89 Pension 98 79 81 58 111 113 109 94 Internet 67 51 181 96 98 129 93 102 Savings 128 113 111 125 85 102 83 106 Telephone 75 98 135 75 163 105 136 111 Personal loans 114 132 79 141 129 78 144 114 Insurance 133 177 100 109 130 144 136 129 Correlations Group 0.42 0.58 0.50 0.48 0.40 0.40 0.34 0.45 Class 0.17 0.32 0.13 0.12 0.36 0.22 0.35 0.24
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com * Not accurate, but for description
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Number of hits on website 1.4 Number of books sold in the U.S. 1.5 Telephone calls received 1.22 Magnitude of earthquakes 2.8 Diameter of moon craters 2.14 Intensity of solar flares 0.8 Intensity of wars 0.8 Net worth of Americans 1.1 Number of persons per family name 1 Population of U.S. cities 1.3 Market moves 3 (or lower) Company sizes 1.5 Exceedance = breaking point = 250K Exponent = power = 1.5 Num Books Sales 0 16,000,000 0 8,000,000 0 4,000,000 3 2,000,000 A 12 1,000,000 64 500,000 Given 96 250,000 272 125,000 2,172 62,500 B 49,152 31,250 3,145,728 15,625 569,437,594 7,813 291,552,047,998 3,906 Calculations A 96/((1,000,000/250,000)^-1.5) B 96* ((250,000/31,250))^1.5)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Exponent Share of the top 1% Share of the top 20% 1 99.99% 99.99% 1.1 66% 86% 1.2 47% 76% 1.3 34% 69% 1.4 27% 63% 1.5 22% 58% 2 10% 45% 2.5 6% 38% 3 4.6% 34% * Clearly, you do not observe 100 percent in a finite sample.
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Investment Investment Return ROI Cum invest Cum return Cum ROI 1 100 2000 2000% 100 2000 2000% 2 100 150 150% 200 2150 1075% 3 100 100 100% 300 2250 750% 4 100 100 100% 400 2350 588% 5 100 50 50% 500 2400 480% 6 100 50 50% 600 2450 408% 7 100 25 25% 700 2475 354% 8 100 25 25% 800 2500 313% 9 100 10 10% 900 2510 279% 10 100 10 10% 1000 2520 252% 11 100 5 5% 1100 2525 230% 12 100 4 4% 1200 2529 211% 13 100 3 3% 1300 2532 195% 14 100 2 2% 1400 2534 181% 15 100 1 1% 1500 2535 169% 16 100 1 1% 1600 2536 159% 17 100 1 1% 1700 2537 149% 18 100 0 0% 1800 2537 141% 19 100 0 0% 1900 2537 134% 20 100 0 0% 2000 2537 127% Totals 2000 2537 127%
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 0% 500% 1000% 1500% 2000% 2500% 0% 500% 1000% 1500% 2000% 2500% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Cumulative ROI ROI
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Output Output Output 20.0% 80.0% *20% 36.0% 64.0% *20% 48.8% 51.2% 20.0% 51.2%
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com For each of the following ten items, provide a low and high guess such that you are 90 percent sure the correct answer falls between the two. Your challenge is to be neither too narrow (i.e., overconfident) nor too wide (i.e., underconfident). If you successfully meet this challenge you should have 10 percent misses– that is, exactly one miss. Low High Correct 1. Martin Luther King's age at death _________ _________ _________ 2. Length of the Nile River (km) _________ _________ _________ 3. Number of countries that are members of OPEC _________ _________ _________ 4. Number of books in the Old Testament _________ _________ _________ 5. Diameter of the moon (km) _________ _________ _________ 6. Weight of an empty Boeing 747 (kg) _________ _________ _________ 7. Year in which Wolfgang Amadeus Mozart was born _________ _________ _________ 8. Gestation period (in days) of an Asian elephant _________ _________ _________ 9. Air distance from London to Tokyo _________ _________ _________ 10.Deepest (known) point in the ocean (meters) _________ _________ _________
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com PERCENTAGE OF MISSES Type of People Tested Type of Question Asked Ideal Target Actually Observed Harvard MBA’s Trivia facts 2% 46% Employees of a chemical company Chemical industry and company - specific facts 10% 50% 50% 79% Managers of a computer Co. General business facts Company - specific facts 5% 80% 5% 58% Physicians Probability that a patient has pneumonia 0-20% 82% Physicists Scientific estimates like the speed of light 32% 41%
    • (Source: Gary Larson, The Farside Gallery Chronicle Publishing Co.,1980) “What do you mean ‘Your guess is as good as mine’? My guess is a hell of a lot better than your guess!”
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    • 2 out of 10 real differences, the rest statistically significant Yes Yes Source: New products what separates winners from losers Cooper & Kleinschmidt
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    • 40 60 50 30 20 10 0 True accuracy Part 1 Estimated accuracy Amount of case study read by subjects Part 2 Part4Part 3 Percentageofquestionscorrect
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Items of information available to handicappers 405 2010 40% 20% 10% 30% Confidence Does Increase Accuracy Does Not Increase Performance
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Actualprobability Predicted probability (confidence) Medical Diagnoses Weather forecasts
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  The British were sinking many German subs.  The assumptions:  Codes could not be broken  It must be a leak  The right Q: How could they have broken our code  A false code released just in code could have tested the assumption and might have changed the way  It is now 2 years after the launch, Beatthatquote has failed  Why did it fail…  Just asking the question You’ll get more ideas… (about 50% more on average)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Be humble1 2 3 Look at the big picture 4
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com For a good introduction see The Fifth Discipline, Peter Senge
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Turn knob Measure Change Filling a glass of water
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Soviet Arms Threat to Americans Need to Build US Arms US Arms Threat to Soviets Need to Build USSR Arms USSR Arms Threat To Soviets US Arms Need To Build US Arms Threat To Americas Need to build USSR ARMS
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Number of visits Experience Partner sites Number of leads Client conversion costs Quality of Leads What clients will pay Type of clients Repeat Visits Page visits Trust
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Number of visits Experience Partner sites Number of leads Client conversion costs Quality of Leads What clients will pay Type of clients Repeat Visits Page visits Trust
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 1 2 3 4
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Issues Can we increase profitability with a new production process? Sub-Issues Will it reduce our costs? Sub-Issues Can our organization implement the changes? Sub-Issues Will our quality level fall while making the changeover?
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Events Patterns Structures **Mckinscy&Company
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 1 2 3 4 Look at the big picture
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Key word_ English UK num Key_Word_ NL BE num NL num loan 7.87 4,090,000 lening 7.1 49,500 7.23 90,500 home mortgage 7.31 60,500 hypotheek 6.04 18,100 3.21 260 mortgage 11.72 5,000,000 hypotheek 6.04 18,100 3.21 450,000 Cost per click Searches per month
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Key word_ English UK num Key_Word_ NL BE num NL num loan 7.87 4,090,000 lening 7.1 49,500 7.23 90,500 home mortgage 7.31 60,500 hypotheek 6.04 18,100 3.21 260 mortgage 11.72 5,000,000 hypotheek 6.04 18,100 3.21 450,000 Belgium Netherlands Data from google adwords Are Belgian consumers really less interested ? If yes, why is the price higher than the Netherlands ? Are they searching in a different way (eg. Using google.nl instead of google.be) Do you believe the numbers ?
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Secondary source Data Calculation Result
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Belgium Mortage New House Households 4,000,000.00 % Move/ year 0.08 Total Movers 320000 Renters 0.4 Net 192000 % take loan 0.75 Market Size 144000 Re-mortgage Households 4000000 % second mortage 0.04 Market Size 160000 Total Market 304000 Avg. Value of a new loan 5000 Market Value 1,520,000,000.00 Available market Total Loans 304,000 % Internet 60% % would use internet 50% Available market 91,200
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Registered Minivans Dodge Caravans 120,000 Ford Windstars 20,000 Toyota Sienas 8,000 Total Market Size 148,000
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Costs of production Number Fixed Costs First 50 K After 50 K Total Costs Avg. Cost 25,000.00 100,000 150 40 3,850,000 154.0 50,000.00 100,000 150 40 7,600,000 152.0 75,000.00 100,000 150 40 8,600,000 114.7 100,000.00 100,000 150 40 9,600,000 96.0 125,000.00 100,000 150 40 10,600,000 84.8 150,000.00 100,000 150 40 11,600,000 77.3 175,000.00 100,000 150 40 12,600,000 72.0 200,000.00 100,000 150 40 13,600,000 68.0 225,000.00 100,000 150 40 14,600,110 64.9 250,000.00 100,000 150 40 15,600,220 62.4 275,000.00 100,000 150 40 16,600,330 60.4
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 1 2 3 4
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com At companies like P&G, brand managers are trained hard to stay in touch with their gut feelings…
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A less-than-optimal "configuration" of product or service attributes and benefits is selected. Lack of a strong sustainable position in the market Marketers fall in love with a product no one else loves The marketing plan for the new product or service is not well implemented in the real world. Marketers assess the marketing climate inadequately. The plan is too complicated A failure to ask the right questions and a belief that everything is a big idea No Support to get things done A questionable pricing strategy is implemented. A weak positioning strategy is used. Cannibalization underestimated The advertising campaign generates an insufficient level of new product/new service awareness. Over-optimism about the marketing plan leads to a forecast that cannot be sustained in the real world. Too focused on the internal game not enough on the market The Lemming effect
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com - Startup firm
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Convert the value proposition into a market offering Inbound Product Development Outbound Product Marketing Take the offering and the value message to market
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Outbound/Tactical”  Outbound-heavy role  Understanding of product  Understanding of vertical markets  Less authority and direct influence  Ability to manage interfaces  Ability to communicate internally “Inbound/Strategic”  Inbound-heavy role  Close interaction with engineering  Defining target markets  Generating customer wins  Broad authority and influence  Ability to think strategically
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Market requirements Positioning framework Product launches List pricing/SKUs
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Product Manager Influence (1-None, 10- Complete) Defining Product Specifications 7.23 Managing Product Releases 6.96 Product Positioning 6.93 Product Upgrade Decisions 6.28 Managing Launch Events 6.44 Product Pricing 6.28 Product Packaging/SKU Decisions 6.31 Customer Segmentation 5.62 Consumer Promotions 5.48 Channel and Partner Promotions 5.15 Product Advertising 5.26 Channel Selection 4.78 Corporate Branding & Advertising 4.46
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Product Development Product Conception Product Launch Product Sustaining Responsibilities:  Market research  Target market definition  Competitive analysis  Positioning  Market Requirement Forecasts Interfaces:  Customers  Research firms  Engineering  Finance  Sales Responsibilities:  Refine market requirements  Customer research  Trade-off schedule vs. features Interfaces:  Engineering  Customers  Partners Responsibilities:  Product introduction plan  Customer demos  Refined forecasts  Sales training  Press kits  Trade shows Events collateral  Promotion/Advertising  BOM/Inventory Responsibilities:  Sales training  Customer promotions  Trade promotions  Product updates  Next version planning Interfaces:  Customers  Engineering  Tech support  Sales  Partners Interfaces:  Customers  Sales  Analysts  Press  Engineering  Finance  Tech support
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Yes No Product Revenues 62.2% 37.8% Product Profitability 61.5% 38.5% Market Share 46.9% 53.1% Customer Satisfaction 19.7% 80.3%
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Business Knowledge Business Knowledge Business Knowledge Business Knowledge Business Knowledge  “What it does”  “What it needs to do”  Product functionality  Product roadmap  Product architecture  Core technology  Product bugs/gaps  Product usability  Complementary products  Competing products  Who - Customer segments  Why - Customer needs  Where – End-use scenarios  How often – Usage levels  Why not – Usage barriers  Who else – Customer DMU  How – Customer DMP  Purchase drivers  Upgrade drivers  Installation experience  Usage experience  Customization experience  Support experience  Upgrade experience  Partner/VAR experience  Unmet needs  Known product problems  Known service problems  Brand/company image  Customer satisfaction  Key demand trends (by segment)  Key technology trends  Key alliances/partnerships  Competitive products  Competitors’ motivations  Potential competitors  Strengths/weaknesses (company)  Strengths/weaknesses (product)  Strengths/weaknesses (partners)  Strengths/weaknesses (brand)  Customer insight process  MRD development process  Product planning process  Budgeting process  Product development process  Product testing process  Product launch process  Partner management process  Company values  Company vision/strategy  Company image/brand  Vision of the business  Goals of the business
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Importance (10 point scale) Customer knowledge 8.81 Product knowledge 8.65 Competitor knowledge 8.21 Company business knowledge 8.00 Macro environmental knowledge 7.61
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com +/- 20% 20-30% +/- 20% +/- 40%
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Important ! What you know don’t know might be less important than what don’t know you don’t know
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Important: remember we tend to over-estimate our capabilities I wouldn’t invest in this business
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Group Group Prediction Score Group Size Worse Percentile Number Correct Group Number Indiv. Avg 9 1 5 4 20% 7 4.4 1 1 9 8 11% 5 3.0 4 2 9 7 22% 5 3.2 10 3 7 4 43% 4 2.8 5 4 8 4 50% 4 3.0 2 4 5 1 80% 4 3.0 7 6 7 1 86% 4 4.4 8 3 8 5 38% 3 1.6 6 5 8 3 63% 3 2.9 3 7 8 1 88% 2 2.6 50%
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Statement of Purpose An introductory sentence that concisely and succinctly states the reason for the recommendation. Provides a context for the memo as a whole Background Factual analysis That connects the purpose of the memo to the strategic objectives of the company or the brand. Also provides facts in relation to the problem recommendation Is supposed to address. Rationale The reasons for the recommendation, and the logic by which the recommendation was reached. Recommandation The specific proposal on how to solve the problem or exploit the opportunity detailed in the background section. Discussion Details of the recommendation, anticipated questions or areas of concern, risk assessment, identification of other alternatives, details of the recommendation. Next Steps Who will be following through on the recommendation, what target dates they would be working towards, what actions they would be taking to execute the recommendation Supporting Exhibits Other supplementary information as appropriate.
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com (not looking for an answer but how to find the answer) Is there a market for high priced (very effective) loan leads in Belgium
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Note; if you want to make this east, think about how an advertisement is put together. Hook, Product (in your case your Reco) Benefit, Reason Why, Next steps.
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Facts
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Next assignment due before the next class not Monday
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Due Date Assignment Presentation Group Grading Group 10/10/2007 What is the product (consumer + partner) 1 5 10/10/2007 What is the product (consumer + 2 6 10/17/2007 What are the right research Qs 3 7 10/31/2007 Pricing for value and profits 4 8 11/7/2007 Predicting business results/scenario planning 5 9 11/14/2007 15 minutes to fame; presenting your bus. Case 6 10 11/21/2007 A realistic into market timing 7 1 11/28/2007 What if, planning for the first 3 months 8 2 12/5/2007 Business Metrics – scorecard for success 9 3 12/12/2007 Launch advertising 10 4 Deliver your next assignment to group 10 and me List of groups and group member sent by email to all class participants
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Assignment due November 5 (this is Monday November 5)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Keys to evaluating advertising And some fun to end the class 7
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Where is John The beef West Drugs [ ] Win [ ] Win [ ] Win [ ] lose [ ] lose [ ] lose What is your gut reaction? Is a clear strategy communicated? What’s the Big Selling Idea? Is Drama used and is it good? Product Registration and Recall Is it convincing and distinctive Does it motivate action? Winner/Loser Budget Allocation
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A less-than-optimal "configuration" of product or service attributes and benefits is selected. Lack of a strong sustainable position in the market Marketers fall in love with a product no one else loves The marketing plan for the new product or service is not well implemented in the real world. Marketers assess the marketing climate inadequately. The plan is too complicated A failure to ask the right questions and a belief that everything is a big idea No Support to get things done A questionable pricing strategy is implemented. A weak positioning strategy is used. Cannibalization underestimated The advertising campaign generates an insufficient level of new product/new service awareness. Over-optimism about the marketing plan leads to a forecast that cannot be sustained in the real world. Too focused on the internal game not enough on the market The Lemming effect
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com % passers by that joined 1 5% 5 20% 15 45% 30 80% Social Proof: the tendency to assume that if a lot of people are doing something or believing something there must be a good reason why
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com One bad decision, can lead to lots of bad decisions…
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Revenues Profit Value 1995 0.00 0.00 0.15 1997 0.01 0.00 100 1998 150 -30 250 April 8, 1999 (morning) 108 -56 1045 April 8, 1999 (mid day) 108 -56 3316 April 8,1999 (close) 108 -56 2498 Aug – 99 140 -124 681 Nov – 99 240 -124 681 Jun – 00 ??? ??? 2
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A small idea Shameless copycats Group Think Gotta be first
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  The great Tulip crisis  The US plank road bonanza  Bowling in the 60s Historical Examples  Social networking and blogs ?  The US Dollar ? Today
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  Source of the technology change  Advantage in technological development activity  Advantage in skills  The diffusion rate of technological information  Consumer involvement in the product  Ability to define competitive rules  Reputation advantage  Ability to preempt and make it stick  Switching costs  Position on the learning curve  Superior access to channels and to inputs  Ability to define industry standard  A higher share of the consumers mind  Non-proprietary pioneering costs  Demand & technology uncertainty  Threat of obsolescence and/or imitation
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • 2 lab tests over time
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Repeated Exposure to Pioneer 0.6 0.5 0.4 0.3 0.2 0.1 Pioneer 2nd Entrance 3nd Entrance Session 3Session 2 Probability of choice
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Repeated Exposure to Pioneer Probability of choice 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Session 2 Session 3 Pioneer 2nd Entrance 3nd Entrance Recall of Unique Features
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Repeated Exposure to Pioneer Probability of choice 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Session 2 Session 3 Pioneer 2nd Entrance 3nd Entrance Recall of Shared Features
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • 2 lab tests over time
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Before any change can occur. We need to conceptualize change Hypotheses are the concepts of change. Note: self-inflicted search biases “I’ll see it when I believe it’ 1
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 2 Before learning can occur. Evidence needs to be received (1) Familiarity influences what is seen (2) Law of small numbers… I have enough info (3) Sequential vs. side by side learning (Framing issues) 1
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 2 Information received needs to be encoded Prior knowledge, Expectations  Selection of evidence & meaning(s) attached Bottom-up : Data driven (e.g. Tasting) or Top-down concept driven (e.g. how a brand name influences taste) Consumers likely to see what they expect to see Might not be motivated to accommodate discrepant evidence  Reinterpretation so it fits, or explain it away as an exception 1 3
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 2 Integration = new beliefs Cognitive conservatism:  A tendency to accept confirmation and reject disconfirmation Mixed messages  polarized views 1 3 4
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com How motivated are consumers to learn? What do consumers already know? How much can experience teach? Most consumer products here Hence, the logic of first movers…
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com How motivated are consumers to learn? What do consumers already know? How much can experience teach? Experience can be Managed Hard to manage Product dependent
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com How motivated are consumers to learn? What do consumers already know? How much can experience teach? Block exposure to evidence Show risks of experimentation Kelloggs: Value of the brand you know It’s as good as Xerox
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com How motivated are consumers to learn? What do consumers already know? How much can experience teach? Explain the Experience: Heinz Anticipation, Thomas muffins: nooks taste better Reinforce the agenda: Budweiser beachwood aged, Lays: bet you can’t eat just one Ryder: your brother in lay, pay too much or Ryder (Uhaul left off the list)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com How motivated are consumers to learn? What do consumers already know? How much can experience teach? Virtually any comparison with top dog will Build credibility and image Eg. Pepsi Challenge: let your taste decide
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com How motivated are consumers to learn? What do consumers already know? How much can experience teach? Disrupt the Agenda / change the rules The beer for good friends: Weekends are for Michelob Build Trial
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Nobody ever got fired for buying IBM” Reinforcing the Agenda
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Oral: Questions on work, no written Qs on class No difference
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com INNOVATOR FOLLOWER WINNE
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Consumers Established Market (USA) New Market (Belgium) Product Features Focused Selection Wide Selection Message A new way to save $ A better way to shop Note: A few more details would be nice.....
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Your Class ID Number : Strongly Disagree Disagree Somewhat Neither Disagree nor Agree Agree Somewhat Strongly Agree Goals: We have clear performance objectives 1 2 3 4 5 Climate: The atmosphere is informal & relaxed. 1 2 3 4 5 Roles: Everyone is clear about what is expected of them on the team. 1 2 3 4 5 Participation: Everyone participates in team discussions and decisions. 1 2 3 4 5 Communication: Members feel free to express themselves all on 1 2 3 4 5 Meetings: Team meetings are well planned and carried out. 1 2 3 4 5 Conflict: Disagreements among team members are resolved quickly & effectively. 1 2 3 4 5 Score:
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • The rest of today’s class Working together in groups
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Coming together is a beginning. Keeping together is progress. Working together is success.” - Henry Ford
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “I will pay more for the ability to deal with people than any other ability under the sun.” – John D. Rockefeller
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Suggested Reading : The Pyramid Principle
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A LETTER FROM A FRIEND (1/3) Dear Shirley, Remember last Saturday afternoon when I was playing in the park with my boyfriend and you came over, and he told me that when my back was turned, you kissed him? And also, on Sunday when you came to my house and my Mom made you a tuna fish salad for lunch and you said: “Yech! That’s the worst salad I ever ate!”? And yesterday, when my cat brushed against your leg, you kicked her and threatened to sic your “Monster” on her? Well, for all of these reasons, I hate you, and I no longer want to be your friend. Lucy Source: [Zel99], http://education.dbai.tuwien.ac.at/wie/WS05/
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Dear Shirley, I HATE you. Here are my reasons: 1. You stole my boyfriend. 2. You insulted my mother. 3. You scared my cat. Main statement or “Governing thought” Reasons supporting the governing thought A LETTER FROM A FRIEND (2/3) Source: [Zel99], http://education.dbai.tuwien.ac.at/wie/WS05/
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A LETTER FROM A FRIEND (3/3)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Independent group of answers (logical grouping)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Chain Of Statements (logical arguments)
    • Make it easy, go inductive…
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com *Notice the distinction between early learning and late learning. Early learning establishes the leader, late learning is their downfall
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Strategy Systems Passion Execution Porter 50% 20 15 15 Drucker 35% 30 15 20 Bennis 25% 20 30 25 Peters 15% 20 35 30 Welch 10% 90%
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Mid-Sized Chemical Company
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  Differentiation – Distinguish products and services in order to charge a premium price  Focus – Follow one of the other strategies in a narrow market  Cost Leadership – Offer substitutable products at the lowest price
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Michael Porter, “What is Strategy?” (1996) “[D]eveloping a strategy in a newly emerging industry or in a business undergoing revolutionary technological change is a daunting proposition.” What makes us think we can forecast the future in a meaningful way?  Getting future predictions right doesn’t happen often  The process is over-simplified and static  Virtually no proof that it works
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Frederick Winslow Taylor Henry Mintzberg
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo to create an unsustainable series of competitive advantages. This is not an age of defensive castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of ‘sustainable advantage’ after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the only level of competition.”
    • Chivalry and 5 years plans may be dead, but focusing is not.
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    • Superior value and product quality are no longer a competitive advantage They are the cost of market entry… your ticket to play in the game …
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    • Everything = Nothing
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Best Product Oriented Build a state-of-the-art product which sells at a premium. Best Total Cost Oriented Achieve the best and lowest cost combination of product features and Best Service Oriented Solve the customer’s big picture problems and develop a close relationship Product (What a company sells) Services (How a company does business)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Best product Best Total cost Best Service Operational Excellence Customer Intimacy Product Leadership
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Invention Product Devel Speed to market Product Leadership Customer Intimacy Operational Excellence Solution Devel. Cust. Service Relationships Operational Processes Supply chain management Operations Meet Basic requirements Strategic focus Customer Management Innovation
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    • Some Examples…
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  Wal-Mart  Charles Schwab  Southwest Airlines  FedEx  Taco Bell  AT & T  McDonalds  Dell Examples  Processes streamlined and standardized  Few decisions will be left to front-line employees  Strong management systems  Reward efficiency and abhor waste. Characteristics:
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  Microsoft  Sony  Apple  Nike  Reebok  Swatch  MTV  Walt Disney Examples  Invention, product development = glamour departments  A project focus  high tolerance for experimentation  out-of-the-box type thinking. Characteristics:
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com More expensive, slower, closed systems… but they look and feel cool
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  IBM  Home Depot  Nordstroms  Cable & Wireless  Johnson Controls  Roadways  Cott Corporation Examples  An obsession with educating the customer  solutions focus  delegation to the employees who meet face to face with customers.  Reward customer service  Culture of going the extra mile Characteristics:
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com More details in the lecture notes… or the articles
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com You gotta deliver real value to consumers
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Is there something that makes you special Normal = nothing !
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com It's about being the third place: home, work, and Starbucks--the place in between,"
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Are you offering, value, innovation or service (you need to choose ! )
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Own a piece of the consumer’s mind
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Create uncontested market space and make the competition irrelevant
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Learn to make tough decisions to your strategy
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com What does the “M” stand for ? Over a 9 year period sales grew by 35 billion. How much in the M. Zero, Nada, Nix. Today, they don’t even make PCs Before they sold the PC division, salespeople were told they need to sell computers from other companies
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Think about what your competition does best, and use it against them
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Focus your investments, focus your message
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley exec, quoted in Results-Based Leadership
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  520 fold return on investment (not bad)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com you’ll never lead.. If can’t ignore them
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Aiming to beat the competition has the opposite effect to the one intended. It keeps companies focused on the competition. When asked to build competitive advantage, managers typically rate themselves against competitors, assess what they do and try to do it better.” W. Chan Kim & René Mauborgne, “Think for Yourself—Stop copying a Rival”/FT/08.03
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “How do dominant companies lose their position? Two- thirds of the time, they pick the wrong competitor to worry about.” - Don Listwin, CEO,Openwave Systems/WSJ3
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Get your competition to invest where you want them to
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Induce your competitors not to invest in those products and services you expect to invest the most… that is the fundamental rule of strategy Bruce Henderson Fonder of BCG
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Of course the smart car has low emissions Getting consumer focused on emissions gets other companies to work harder to catch up
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Make sure the strategic intent is clear at every level
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “I didn’t have a ‘mission statement’ at Burger King. I had a dream. Very simple. It was something like, ‘Burger King is 250,000 people, every one of whom gives a shit.’ Every one. Accounting. Systems. Not just the drive through. Everyone is ‘in the brand.’ That’s what we’re talking about, nothing less.” — Barry Gibbons
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Create a standard supported by the market and you can be rich
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com The total value of a product/service that possesses a network effect is roughly proportional to the square of the number of customers already using that product/service. As the network grows, value grows geometrically
    • And now for the bakers bonus…
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A little less talk and a little more action
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “We have a ‘strategic plan.’ It’s called doing things.” — Herb Kelleher
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “You miss 100 percent of the shots you never take.” — Wayne Gretzky
    • Source: Hugh MacLeod/tompeters.com/NPR 1. Every morning, write a list of the things that need to be done that day. 2. Do them.
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 1 Distinguish your product from competition in a consumer-relevant way 2 Capitalize on key corporate competencies / brand strengths 3 Develop and market to people’s needs and habits 4 Market to long-term trends, not fads 5 Don’t ignore consumer research… but don’t be paralyzed by it 6 Make sure your timing is right 7 Be a marketing leader, not a distant follower 8 Offer a real value to consumers 9 Determine the product’s short- and long-term sales potential 10 Gain legitimacy and momentum for the brand 11 Give the trade as good a deal as the consumer 12 Clearly define, understand, and talk to your target 13 Develop and communicate a distinctive and appealing brand character … and stick to it 14 Spend competitively and efficiently, behind a relevant proposition 15 Make sure the consumer is satisfied… and stays that way
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    • Linking strategy to business metrics and action plans
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Initiatives & Programs PERFORMANCE STRATEGY BALANCED SCORECARD BUDGET
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Quality of Management Rank
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Knowledge, Skills, Systems, and Tools
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Objective Measures Targets Initiatives Objective Measures Targets Initiatives Objective Measures Targets Initiatives Objective Measures Targets Initiatives Source: A Management Guide for the deployment of strategic metrics, Ratheon
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com What will drive operating efficiency?”  More customers on fewer planes How will we do that?  Attract targeted customer segments who value price and on time arrivals What must the internal focus be?  Fast turnaround Will our people do that?  Educate and compensate ground crew regarding how they contribute to the firm’s success  Employee stockholder program Financial Customer Internal Learning Illustrative Example: Southwest Airlines
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  Fast ground turnaround  On Ground Time  On-Time Departure  30 Minutes  90%  Cycle time optimization Financial Customer Internal Learning
    • Dare2compare Example
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Financial Consumer & Customer Internal Learning
    • Step 3: Split the business in parts
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  30 million in 3 years  Profits  Customer base  Growth Rates  1.1 profits  40% Growth vs. year 2  Build consumer & customer base  Heavy spending to jump start growth Financial Consumer & Customer Internal Learning
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  A brand consumers trust  First stop for loan info  Approval ratings  MGM activity  Image vs. key competition  98% trust  20% reco. to a friend  75% customers trained  Consumer champion survey  How much could you save ?  Cust. Training/ system integration Financial Consumer & Customer Internal Learning
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  Understand value for consumers & customers  Customer & consumer ratings  95% say they under-stand me  Research on customer /consumer needs  Industry round tables Financial Consumer & Customer Internal Learning
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  A focus on new consumer insight  Review participation  Level of consumer/ customer interaction  100 client contacts per day  Monthly analysis  Feedback links on the site  Insight manager Financial Consumer & Customer Internal Learning
    • Step 4: Does it make sense ? Could you explain it to someone else Is it action driven If not, start again 
    • Step 5: Bring the high level objectives, targets and initiatives to an operational level This is beyond the scope of our exercise
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A less-than-optimal "configuration" of product or service attributes and benefits is selected. Lack of a strong sustainable position in the market Marketers fall in love with a product no one else loves The marketing plan for the new product or service is not well implemented in the real world. Marketers assess the marketing climate inadequately. The plan is too complicated A failure to ask the right questions and a belief that everything is a big idea No Support to get things done A questionable pricing strategy is implemented. A weak positioning strategy is used. Cannibalization underestimated The advertising campaign generates an insufficient level of new product/new service awareness. Over-optimism about the marketing plan leads to a forecast that cannot be sustained in the real world. Too focused on the internal game not enough on the market The Lemming effect
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com YOU
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Starbucks is a sign of the times…. It is to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of all that is good and bad about the aesthetic imperative. … ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ writes CEO Howard Schultz.” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture, and Consciousness
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 1 + 1 + 1 + 1 = Beauty 1 + 1 + 1 + 0 = Failure
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Having spent a century or more focused on other goals— solving manufacturing problems, lowering costs, making goods and services widely available, increasing convenience, saving energy—we are increasingly engaged in making our world special. More people in more aspects of life are drawing pleasure and meaning from the way their persons, places and things look and feel. Whenever we have the chance, we’re adding sensory, emotional appeal to ordinary function.” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture, and Consciousness
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A company with fantastic operations, but no sales ? = DEAD Fantastic controls and procedures, but no clients = Just as DEAD
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com In its purest form, advertising is a form of salesmanship. It does not exist independently. That is, the only criteria by which to judge an advertisement is the same criteria by which to judge any salesman - does it produce the results? Claude Hopkins Scientific Advertising
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    • Every day You are bombarded by up to 4,000 ads
    • YOU
    • YOU
    • Too much information vying for consumer ATTENTION
    • Telecommunications bandwidth is NOT a problem, but human bandwidth IS Consumers seek to take control over media consumption
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com In today’s economy, the scarcest business resource isn’t ideas, talent or even capital. All of these are actually available in plentiful supply. Instead, the rarest resource of all is attention itself. There is now so much information competing to be noticed that the limiting factor isn’t supply but demand - the ability of people to absorb and take notice of all the pieces of information they are constantly being presented with. THE ATTENTION ECONOMY Understanding The New Currency Of Business THOMAS DAVENPORT and JOHN BECK
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Typical Advertising
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Narrowing Phase Decision Phase
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    • His/her character… Or at least your impressions of character
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com When consumers get cheated they share their experiences and companies are getting caught… The future is about honest dialogues, not rather than broadcasting half-truths about products and services.
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Should also be the marketer of the year
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    • Robert B. Cialdini, Influence: The Psychology of Persuasion (revised; New York: Quill, 1993)
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    • Question 3ways to use reciprocity in your job search
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    • Question 3ways to use consistency in your job search
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    • Question 3ways to use social proof in your job search
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    • Question 3ways to use authority in your job search
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    • Question 3ways to use authority in your job search
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    • Question 3ways to use scarcity in your job search
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    • Class Break
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    • More Suds More dishes Mild to hands Squeaky Clean
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Your Class Num Overt Benefit Reason to Believe Dramatic Difference Budget Allocation Budweiser - Sheep Is Big Fan Fedex - Caveman Going To Disney World Gm Hummer - Monsters Make Baby Hummer Unilever/Dove - Self Esteem Fund Promo Toyota - Tachoma Pick Up Rides Waves Slim Fast - Hunger Control Manager Sharpie - Retractable Gillette - Fusion 5-Blade Razor [ ] Cinderella [ ] Frog prince [ ] Start over € 900
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Group Evaluation Overt Benefit Reason to Believe Dramatic Difference Budget Allocation Budweiser - Sheep Is Big Fan Fedex - Caveman Going To Disney World Gm Hummer - Monsters Make Baby Hummer Unilever/Dove - Self Esteem Fund Promo Toyota - Tachoma Pick Up Rides Waves Slim Fast - Hunger Control Manager Sharpie - Retractable Gillette - Fusion 5-Blade Razor [ ] Cinderella [ ] Frog prince [ ] Start over € 900
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Persuasion Rank Popularity Score Popularity Ranking Budweiser - Sheep Is Big Fan 2.30% 7.81 6 Fedex - Caveman 17.50% 7.95 3 Going To Disney World 18.00% 7.22 7 Gm Hummer - Monsters Make Baby Hummer 2.80% 6.37 23 Unilever/Dove - Self Esteem Fund Promo 20.80% 6.96 16 Toyota - Tachoma Pick Up Rides Waves 17.60% 6.16 28 Slim Fast - Hunger Control Manager 28.30% 4.28 57 Sharpie - Retractable 3.10% 6.82 17 Gillette - Fusion 5-Blade Razor 41.00% 5.27 47
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Note: for those of you that read the Black Swan article you’re a week ahead 
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Ranked by Group Ranked by Persuasion Scores Ranked by Popularity Group Persuasion Popularity Group Persuasion Popularity Group Persuasion Popularity Average 170 5967 Group8 224 5793 Group7 175 6203 Equal Invest 151 5884 Group4 186 5906 Group9 154 6195 Group1 162 6168 Group2 182 5856 Group5 150 6175 Group2 182 5856 Group7 175 6203 Group1 162 6168 Group3 165 5973 Group6 173 5906 Group3 165 5973 Group4 186 5906 Average 170 5967 Average 170 5967 Group5 150 6175 Group10 167 5625 Group4 186 5906 Group6 173 5906 Group3 165 5973 Group6 173 5906 Group7 175 6203 Group1 162 6168 Equal Invest 151 5884 Group8 224 5793 Group9 154 6195 Group2 182 5856 Group9 154 6195 Equal Invest 151 5884 Group8 224 5793 Group10 167 5625 Group5 150 6175 Group10 167 5625 Persuasion Rank Popularity Score Gillette - Fusion 5-Blade Razor 41.00% 5.27 Slim Fast - Hunger Control Manager 28.30% 4.28 Unilever/Dove - Self Esteem Fund Promo 20.80% 6.96 Going To Disney World 18.00% 7.22 Toyota - Tachoma Pick 17.60% 6.16 Fedex - Caveman 17.50% 7.95 Sharpie - Retractable 3.10% 6.82 Gm Hummer - Monsters Make Baby Hummer 2.80% 6.37 Budweiser - Sheep Is Big Fan 2.30% 7.81
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Write the email, explain the strategy behind your email and why you think it will work in less than a page  Create an email inviting consumers to participate in a national survey about financial services. Benefit: learn how much you could save. Email: Survey Invitation  Create an email inviting consumer to visit the dare2compare site and learn how much they could save on everyday financial services Email: Site visit OR
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    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Explain the strategy behind your keyword ads and why you think they will work in less than a page
    • Break
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 1 Is there a benefit (real or perceived) 2 People willing to pay (enough) 3 Cost of cut-through acceptable 4 People will see the benefit buy again / recommend to others (A systems effect)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Your Class Number Why Yes Why No It might fail, but a risk worth taking A passing fad, that will never work in Belgium  Consumer want/need better information on mortgages. Banks are looking to match their services to the right customers.  There is no need for more information anything dare2compare could do a bank could do better.  A profitable service bank will be happy to pay for.  The banks have no money to buy loan leads. They’d rather in invest in brand building.  A strong message that will resonate with consumers. And many ways to reach consumers.  No real benefit = no real interest. The few that are interested won’t react.  A system and service that will grow over time  If it works, dare2compare will lose its customer and create a host of new competitors.it will never make money. Would you invest  Yes  No If yes  First mover or  Fast second In your words, why is dare2compare a good/bad idea………..
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com It is the biggest decision most people will ever make. They want and need help
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Best Rate High Rate .1% difference Loan Value €200,000.00 €200,000.00 €200,000.00 Years 20 20 20 Interest Rate 4.5% 6.0% 4.6% Payment -€15,375.23 -€17,436.91 -€15,508.74 Total Payment -€307,504.58 -€348,738.23 -€310,174.90 Difference -€41,233.65 -€2,670.32
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Nuttige links Deze pagina bevat enkele nuttige links naar gerelateerde sites of nuttige informatie. Notaris.be Immobelg.be Hypotheek Starpagina (NL) Dienst Inschrijvingen Voertuigen Premiezoeker.be OnlineWinKelcentrum.Com Belgie Hypotheek Hypotheek planeet Hypovision Financieel Dienstencertrum Geldexpresse Belgie Hypotheken Hypotheek Buitenland Hypotheek Start Hypotheek Wikipedia Hypotheek 2link Hypotheek Starpagina (BE) Web guide De Beste Informatie Hypotheek Belgie Rabobank Bergeijk Hypotheek in Belgie Huis Kopen in Belgie George Vossen B9 Hypotheek & Buitenland Belgie Hypotheek Lenen Gids Hypotheek met verzekeringen Claes finance Goedkope Hypotheek
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Profit on a Loan Loan Rate 4.50% Base Rate of Money 3.80% Cost of Loan administration 0.08% Costs of Loan 3.88% Loan Value 200,000 Yearly Payment -€15,375.23 PV of payments €211,192.38 PV of loan 200,000 Margin on loan €11,192.38 Lead Profitability Cost of a lead €125.00 [A] Cannibalization 25% [B] Net Cost €167 [C]=[A]/(1-[B]) Expected conversion 20.00% [D] Investment per loan €833 [E]=[C]/[D] Value of a loan €11,192 Profit €10,359 Break-even conversion 1.49%
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Profit on a Loan Belgium UK Loan Rate 4.50% 5.20% Base Rate of Money 3.80% 3.80% Cost of Loan administration 0.08% 0.08% Costs of Loan 3.88% 3.88% Loan Value 200,000 300,000 Yearly Payment -€15,375.23 -€24,482.68 PV of payments €211,192.38 €336,291.35 PV of loan 200,000 300,000 Margin on loan €11,192.38 €36,291.35 3 X more money on the table !
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Almost no one will visit the site And those that do won’t generate revenues !
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A virtuous cycle of business development InteractionValue Leads Visits The better we do, the better we’ll do…
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com If consumers can get better offers on loans No barriers to entry If it works … ▼ Loan rates ▲ New companies ▼ Profits for banks ▲ Demand for search links ▼ € to buy loan leads ▲ Price click throughs ▼ Profits for dare2compare ▼ Profits for dare2compare Client with no money are bad clients Google will make money Dare2compare won't
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 2 views of the financials It will work It will fail Revenues Revenue Number of Leads Number of Leads 40000 100 4,000,000 25000 25 625,000 Costs Costs Cost of Leads Leads Cost Lead Cost of Leads Leads Cost Leads TV 10000 900,000 90 TV 5000 900,000 180 Surveys 20000 500,000 25 Surveys 10000 500,000 50 Search Links 20000 250,000 12.5 Search Links 1000 250,000 25 Fixed Costs 750,000 750,000 Profits 1,850,000 Profits -125,230 € 5 click through,40% request info € 5 click through , 20% request info
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  There is a good chance it will fail, but the upside is big enough to justify the risk… If odds of success greater than 1/30 go ! An easy decision …  Dare2compare is based on a business model that will never work in Belgium €1 million is a small investment, but it money that could be spent betting on the horses
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Puppy Shooters Investors
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 0 5 10 15 20 25 30 9 10 11 12 13 14 15 16 17 18
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com % of grade Evaluation % Your Cover Letter 25% Clear Benefit (relevant to company) 30% Creative/memorable 30% Professional 40% Your success / failure cases 50% Fact based/ Intellectual thinking 30% Used ideas from class (readings) 25% Professional 25% Clearly answered profit question 10% Showed a system understanding 10% Answers to take home (oral) questions 25% Shows understanding of course materials 100% Professional = Short Well organized No types Easy to read
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Your Cover letter Your fail / succeed cases Background information on the company (this can be copied for the internet or a few short paragraphs) Use the structure discussed in class (or something similar) Introducing your cover letter What do you think they are looking for What is the objective of your letter Enough background information to understand (can be copied) Could someone get your points in 60 seconds or less Your cover letter 2 cases 1 that will fail 1 that will succeed To check  Clear Benefit ( relevant to company)  Creative/ memorable  Professional To check  Fact based/ Intellectual thinking  Used ideas from class (readings)  Professional  Clearly answered profit question  Showed a system understanding
    • Don’t try to impress me with lot’s of pages
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  You can be more selective about which readings you do  You can do the work when you have time  Grading will be a bit harder (especially on the class questions) Take-home  You will need to read about ¼ of the course materials to prepare for the exam  If I don’t like the work you have done, you will have a chance to defend it.  You’ll get some immediate feedback on your cover letter Oral Exam
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 0 10 20 30 40 50 60 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 1 Is there a benefit (real or perceived) 2 People willing to pay (enough) 3 Cost of cut-through acceptable 4 People will see the benefit buy again / recommend to others (A systems effect) 5Case Studies
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com BREAK
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Let’s make a dent in the universe.” Steve Jobs Apple Computer
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Let’s make sure we follow the books… A typical Marketing MBA
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com An interesting book… Counterintuitive Marketing Studying brand in 48 categories
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Airlines Gas Stations Mid-priced American Cars Athletic Shoes Haircare Products Mid-priced Foreign Cars Auto Insurance Headache Remedies Motor Oils Banks Health & Fitness Clubs Newspapers Beers Home Entertainment Equip. Office Supply Stores Bookstores Hotels Personal Computers Bottled water Household Cleansers Pet Supply Stores Catalog clothing Internet Search Engines Pet Supply Stores Cigarettes Internet Service Providers Political Parties Colas Jewelry Potato Chips Cold Cereals Laundry Detergents Rental Cars Cookies Liquor Soaps Cosmetics Long-Distance Telephone Spaghetti Sauces Credit Cards Luxury American Cars Toothpastes Department Stores Luxury Foreign Cars TV Networks Fast Food Restaurants Major Household Appliances Weight Loss Programs
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  Decreasing in 39  Stable in 5  Improving in only 4
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com The study also showed that in two-thirds of all product categories, a low price is becoming more important than brand driven product features, attributes, and benefits.
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com The study led us to conclude that far more brands are being transformed into commodities than commodities are being transformed into brands.
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 14% Above Average 2% Well below average 68% Average Marketing Program The Zone of Exceptional Marketing The Zone of Conventional Marketing 14% Below Average 2% Well above average The Marketing Performance Bell Curve Source: Counter-Intuitive marketing (2002)
    • In a connected world, little incremental steps are the slow death of a brand
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Learn not to be careful.” —Photographer Diane Arbus to her students (Careful = “The sidelines,” per Harriet Rubin in The Princessa)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Google, 9/11, the Internet Banking: : 1982/Default Latin America = Total historical earnings; 1992/S & L; 2002/dot.com Wall Street: “In the last 50 years, the most extreme days in the financial markets represent half of the returns. Ten days in 50 years. Meanwhile, we are mired in chitchat.” The 3 of biggest inventions of the 20th century were accidents: The Laser, the computer, The internet The Black Swan: The Impact of the Highly Improbable, Nassim Nicholas Taleb
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com “This book is about luck disguised and perceived as non-luck (that is, skills) and more generally randomness disguised and perceived as non-randomness. It manifests itself in the shape of the lucky fool, defined as a person who benefited from a disproportionate share of luck but attributed his success to some other, generally precise reason.” “We underestimate the share of randomness in just about everything, a point that might not merit a book—except when it is the specialist who is the fool of all fools.” “Mild success can be explainable by skills and labor. Wild success is attributable to variance.” Source: Fooled by Randomness: The Hidden Role of Chance in Life and the Markets —Nassim Nicholas Taleb
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com  Scientific Research  Biotech  Movies  Publishing  Venture Capital  Military  Catastrophe insurance  Homeland security  Banking, lending
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • 10 Class Summary Thoughts to leave with
    • 1 Meaningful differentiation Is there something that makes you special Normal = nothing !
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 218 142 100 McMaster University Hamilton, Ontario, Canada
    • 2Your advertising needs to be as good as your best salesman Clarity in communication
    • Every day You are bombarded by up to 4,000 ads
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Let a customer say NO because what you offer doesn’t apply to them. But NEVER let a customer say NO because they don’t understand what you’re offering.
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 3 Chefs - 3 Years - World Cooking Competition Medalists
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 18% 29% 42%
    • 3Are you offering, value, innovation or service (you need to choose ! ) Everything Sells
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 1 + 1 + 1 + 1 = Beauty 1 + 1 + 1 + 0 = Failure
    • Dramatic differences Clarity in communication Everything Selling
    • 4 Candor Counts ! Be Real
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • 5Good advertising = nice Good word of mouth = Great ! Be connected
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com You
    • 6Develop gut feelings Talk to non-experts Don’t be fooled by the experts !
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • 2 out of 10 real differences, the rest statistically significant Yes Yes Source: New products what separates winners from losers Cooper & Kleinschmidt
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Personal opinion: All the success criteria identified in the winners/losers article are relevant. But what makes a product a success is An exceptionally high score on 1 criteria or more likely… A good score on a range of criteria
    • 7If you enjoy what you do… you’re likely to do it well If you believe you’ll do it even better Have fun
    • 8Good marketing is about business and people. Understanding business is easy… understanding people takes lifetime Expand your horizons
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com "Our buyers"
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Not Aware Sole Buyer
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 11 Representative FMCG Brands 69% to the competition the brand 31% to Not Aware Sole Buyer
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Dramatic differences Clarity in communication Everything Selling What… How… Be Real Be connected Don’t be fooled Have fun Learn Measures Share of customer Ongoing dialogue: what do they say Good Marketing [the full picture]
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com — Photographer Diane Arbus to her students (Careful = “The sidelines,” per Harriet Rubin in The Princessa)
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Magic 1. What you are Good at 2. What are you Made to do 3. What will people pay for A simple 3 step program for brands and people
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com It is about people It is about marketing Cool math & Methods
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com The website 8% Advertisement 15% Newspaper/Magazine recommended it 22% A friend recommended it 76% Television 21% Newspaper/Magazine 26% Info services (e.g. Consumer Reports) 35% Another consumer 67%
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • http://www.themasterstrophy.com/www/index.php? id=d9dd8941d4a308467baf4130311f28a2 http://en.tackfilm.se/?id=1268739536456RA94
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Cause Effect Biology Virus Disease Marketing Value Proposition Sales Spread the Word
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Indian Airlines Route Map
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Trivial Pursuit In search of Excellence
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Results A B Tipping Point
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • S imple U nexpected C oncrete C redible E motional S tory Based
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Now for some fun…
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Note: A great book The Cluetrain manifesto
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Why do you think these campaigns worked ?
    • Will these work ?
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 0 2 4 6 8 10 12 14 16 18 0 20 40 60 80 AverUsageDaysperVisitor Reach (%) Note: Size of bubble represents Total Time Spent per Month Google.com MSN.com Yahoo.com Facebook AOL.com YouTube Ask.com Myspace AIM.com FlickR CNN.com Ebay.com Source: ComScore USA, Dec 2008
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 0 2 4 6 8 10 12 14 16 18 0 20 40 60 80 AverUsageDaysperVisitor Reach (%) Note: Size of bubble represents Total Time Spent per Month Google.comMSN.com Yahoo.com Facebook AOL.com YouTubeAsk.com Myspace AIM.com FlickR CNN.com Ebay.com Source: ComScore USA, Dec 2008
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 0 2 4 6 8 10 12 14 16 18 0 20 40 60 80 AverUsageDaysperVisitor Reach (%) Note: Size of bubble represents Total Time Spent per Month Google.comMSN.com Yahoo.com Facebook AOL.com YouTubeAsk.com Myspace AIM.com FlickR CNN.com Ebay.com Source: ComScore USA, Feb 2009
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 0 2 4 6 8 10 12 14 16 18 0 20 40 60 80 AverUsageDaysperVisitor Reach (%) Note: Size of bubble represents Total Time Spent per Month Google.comMSN.com Yahoo.com Facebook AOL.com YouTube Ask.com Myspace AIM.com FlickR CNN.com Ebay.com Source: ComScore USA, March 2009
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 0 2 4 6 8 10 12 14 16 18 0 20 40 60 80 AverUsageDaysperVisitor Reach (%) Note: Size of bubble represents Total Time Spent per Month Source: ComScore USA, April 2009 Google.com Yahoo.com MSN.com YouTube AOL.com Facebook Myspace Ebay.comAsk.com CNN.com AIM.com FlickR
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 0 2 4 6 8 10 12 14 16 18 0 20 40 60 80 AverUsageDaysperVisitor Reach (%) Note: Size of bubble represents Total Time Spent per Month Source: ComScore USA, June 2009 Google.com Yahoo.com MSN.com YouTube AOL.com Facebook Myspace Ebay.com Ask.com CNN.com Bing.com Twitter
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com 0 2 4 6 8 10 12 14 16 18 0 20 40 60 80 AverUsageDaysperVisitor Reach (%) Note: Size of bubble represents Total Time Spent per Month Source: ComScore USA, July 2009 Google.com Yahoo.com MSN.com YouTube AOL.com Facebook Myspace Ebay.com Ask.com CNN.com Bing.com Twitter
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Social Bookmarks flickrPodcasts Virtual works Wikis facebookMicro blogs Youtube Google talk RSS Message board Widgets
    • Almost 4,000,000 articles
    • >100,000,000 videos (65,000 new videos/day)
    • 2000,000,000 blogs
    • 73% of active online users have read blog
    • 45% have started their own blog
    • 39% subscribe to an RSS feed
    • 57% have joined a social network
    • 5,000,000,000 The number of minutes spent on Facebook each day.
    • 55% Have uploaded photos
    • 83% have watch video clips
    • 83% have watch video clips
    • The old communication model was a monologue
    • Only 18% of TV ad campaigns generates positive ROI
    • 90% of people who can skip TV ads, do.
    • The average person id exposed to 3000 advertising messages/day
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • “Content is the new democracy and we the people, are ensuring that our voices are heard.”
    • 34% Pose opinions about products & brands on their blog
    • trust blogger’s opinions on products & services 32%
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com %Everdone 90% 70% 60% 50% 40% 30% 20% 10% 0% 80% Wave 1 sep 06 Wave 2 june 07 Wave 3 march 08 Read blogs/weblogs Start my own blogs/weblogs Leave a comment on a new site Watch video clips online Download a podcast (pre- recorded radio audio show) Create a profile on a social network Subscribe to an RSS feed
    • By 2010, Millenials/Gen Y-ers will outnumber Baby boomers
    • They already wield $350 BILLION/ year in direct spending power
    • Acquaintance s, 51% Online Friends, 38% Close Friends, 11% They have an average of 53 online friends
    • Listen A
    • Immerse yourself in the conversations. (any or all of the above are a good place to start!)
    • Messages are not conversations.
    • participate B
    • Relinquish control. C
    • D Engage!
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com A campaign to focus on the benefit This contest was set up by 18procent.be Using this site and shopping smarter the average consumer could save 2138 euro per year. The represent 18% of the average family’s fixed costs. We wanted to show what cool things consumers could do with this money
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Example
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Linked to
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Invites Sensitivity Targets 150,000 % that participate 1 4.0% 0.04 T0 T+1 T+2 Starting participants [Part] 6,000 [Part 2] 3,750 2,344 Viral impact Passive views 50 50 50 Participation 1 0.5% 0.5% 0.5% 0.5% New Participants [A] 0.25 0.25 0.25 Invites 5.0 5 5 5 Participation 1 7.5% 7.5% 7.5% 7.5% New Participants [B] 0.38 0.38 0.38 Sub-total [A] + [B] 0.63 0.63 0.63 Viral Participants [Part] * [A + B] 3,750 2,344 1,465 Total Participants 9,750 12,094 13,559
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Invites Sensitivity Targets 150,000 % that participate 1 4.0% 0.04 T0 T+1 T+2 T+3 T+4 T+5 T+6 T+7 T+8 T+9 T+10 Starting participants 6,000 3,750 2,344 1,465 916 572 358 224 140 87 55 Viral impact Passive views 50 50 50 50 50 50 50 50 50 50 50 Participation 1 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% New Participants 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 Invites 5.0 5 5 5 5 5 5 5 5 5 5 5 Participation 1 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% New Participants 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 Sub-total 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 Viral Participants 3,750 2,344 1,465 916 572 358 224 140 87 55 34 Total Participants 9,750 12,094 13,559 14,474 15,046 15,404 15,627 15,767 15,854 15,909 15,943 Participation Rates vs. Target 15,943 0.5 0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5 Num of Invites 1 3,582 4,472 5,437 6,486 7,633 8,889 10,272 11,803 13,506 15,412 17,558 2 3,750 4,737 5,833 7,059 8,437 10,000 11,785 13,844 16,244 19,073 22,451 3 3,934 5,035 6,292 7,742 9,432 11,427 13,816 16,724 20,329 24,887 30,769 4 4,138 5,373 6,829 8,571 10,691 13,323 16,669 21,032 26,880 34,935 46,316 5 4,364 5,760 7,466 9,598 12,330 15,943 20,885 27,888 38,157 53,665 77,623 6 4,615 6,207 8,234 10,899 14,538 19,723 27,449 39,447 58,719 90,419 143,254 7 4,898 6,728 9,174 12,591 17,615 25,415 38,153 59,802 97,559 164,214 281,984 8 5,217 7,345 10,350 14,853 22,056 34,310 56,210 96,567 171,894 312,314 571,266 9 5,581 8,083 11,850 17,964 28,666 48,610 87,286 163,535 313,601 604,949 1,159,180 10 5,999 8,980 13,806 22,351 38,749 72,000 141,136 284,980 579,750 1,169,572 2,317,434 11 6,483 10,088 16,410 28,674 54,385 110,542 234,166 502,416 1,069,255 2,229,450 4,526,114 12 7,050 11,478 19,943 37,940 78,851 174,010 393,295 884,906 1,948,433 4,163,186 8,604,935 13 7,720 13,247 24,815 51,668 117,225 277,843 661,674 1,544,387 3,489,185 7,594,014 15,910,823 14 8,523 15,534 31,618 72,124 177,249 445,962 1,106,948 2,657,932 6,124,704 13,520,513 28,627,969 15 9,493 18,526 41,201 102,645 270,537 714,722 1,832,965 4,499,442 10,529,028 23,503,828 50,184,287
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com Invites Sensitivity Targets 150,000 % that participate 1 4.0% 0.04 T0 T+1 T+2 T+3 T+4 T+5 T+6 T+7 T+8 T+9 T+10 Starting participants 6,000 3,750 2,344 1,465 916 572 358 224 140 87 55 Viral impact Passive views 50 50 50 50 50 50 50 50 50 50 50 Participation 1 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% New Participants 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 Invites 5.0 5 5 5 5 5 5 5 5 5 5 5 Participation 1 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% New Participants 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 Sub-total 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 Viral Participants 3,750 2,344 1,465 916 572 358 224 140 87 55 34 Total Participants 9,750 12,094 13,559 14,474 15,046 15,404 15,627 15,767 15,854 15,909 15,943 Participation Rates vs. Target 14,544 0.5 0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5 Num of Invites 1 3,699 4,606 5,570 6,589 7,664 8,795 9,982 11,225 12,524 13,879 15,289 2 3,952 4,970 6,065 7,236 8,484 9,807 11,206 12,682 14,234 15,862 17,566 3 4,262 5,417 6,673 8,030 9,488 11,047 12,707 14,468 16,330 18,292 20,356 4 4,648 5,973 7,430 9,018 10,739 12,591 14,575 16,691 18,939 21,318 23,830 5 5,136 6,676 8,387 10,268 12,321 14,544 16,939 19,504 22,240 25,147 28,225 6 5,765 7,582 9,619 11,878 14,359 17,060 19,983 23,126 26,491 30,077 33,885 7 6,590 8,769 11,236 13,989 17,030 20,359 23,974 27,876 32,066 36,543 41,307 8 7,691 10,355 13,394 16,808 20,598 24,763 29,303 34,218 39,509 45,175 51,216 9 9,186 12,508 16,325 20,637 25,443 30,745 36,541 42,832 49,618 56,899 64,675 10 11,249 15,479 20,369 25,919 32,128 38,998 46,527 54,717 63,566 73,076 83,245 11 14,134 19,633 26,023 33,303 41,475 50,536 60,489 71,333 83,067 95,691 109,207 12 18,209 25,502 34,011 43,736 54,679 66,838 80,214 94,807 110,616 127,642 145,885 13 24,010 33,855 45,380 58,586 73,473 90,041 108,289 128,219 149,829 173,120 198,092 14 32,304 45,798 61,636 79,818 100,345 123,216 148,431 175,991 205,895 238,143 272,736 15 44,184 62,905 84,920 110,231 138,836 170,735 205,930 244,419 286,203 331,281 379,654
    • Bryan Cassady Guest Professor, Bryan@fast-bridge.com
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