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Innovation

Innovation

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  • 1. The Innovators' Survival Guide: Marketing Edition By Michael Brandt The Innovators' Survival Guide: Marketing Edition • Useful information, tools, advice, buzzwords and examples to help you be successful! • You can get there from here.... Michael Brandt it's marketing! VP of Marketing and Planning WHITE PASS & YUKON ROUTE entrepreneur en·tre·pre·neur (ŏn'trə-prə-nûr', -nʊr') n. A person who organizes, operates, and assumes the risk for a business venture. "someone who perceives an opportunity and creates an organization to pursue it." innovate in·no·vate (ĭn'ə-vāt') New Products To begin or introduce (something new) for New Production Methods or as if for the first time. New Markets New Forms of Organization & Distribution Thesaurus: entrepreneur (noun) One that creates, founds, or originates: architect, author, creator, father, founder, inventor, maker, originator, parent. originator, 1
  • 2. The Innovators' Survival Guide: Marketing Edition By Michael Brandt The Innovators' Survival Guide: Marketing Edition AGENDA • Welcome & Introductions • Setting Objectives for the Planning Session • MARKETING 101 • Open Forum A Fishing Story • The American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna. The American complimented the Mexican on the quality of his fish and asked how long it took to catch them. • The Mexican replied, only a little while. The American then asked why didn't he stay out longer and catch more fish? The Mexican said he had enough to support his family's immediate needs. • The American then asked, "but what do you do with the rest of your time?" • The Mexican fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life." 2
  • 3. The Innovators' Survival Guide: Marketing Edition By Michael Brandt A Fishing Story -- continued • The American scoffed, "I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat with the proceeds from the bigger boat you could buy several boats, eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually NYC where you will run your expanding enterprise." • The Mexican fisherman asked, "But, how long will this all take?" To which the American replied, "15-20 years." "But what then?" • The American laughed and said that's the best part. "When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions." • "Millions.. Then what?" A Fishing Story -- conclusion • The American said, "Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos." 3
  • 4. The Innovators' Survival Guide: Marketing Edition By Michael Brandt What is Marketing? • the process of • planning and executing • the conception, pricing, promotion and distribution • of ideas, goods and services • to create exchanges • that satisfy individual and organizational objectives. “satisfying customers’ needs systematically and at a profit” The Marketing Starting Point c es Ec or iv ef on om e tit ic mp for c Co PR es T UC OM OD OT Reg PR IO es Target Market ulat forc N ory PR al Soci E forc AC I CE PL es Technological forces Environmental forces 4
  • 5. The Innovators' Survival Guide: Marketing Edition By Michael Brandt The Strategic Marketing Process: Actions and Information Planning Phase Implementation Control Step 1 Step 2 Step 3 Phase Phase Situation (SWOT) Market-product Marketing program • Obtain • Compare analysis focus and goal • Develop the resources results with • Identify industry setting program's marketing • Design plans to identify trends • Set market and mix marketing deviations Action • Analyze product goals • Develop the budget, organization • Correct competitors • Select target by estimating • Develop negative • Assess own markets revenues, expenses, schedules deviations; company • Find points of and profits • Execute exploit positive • Research difference marketing ones customers • Position the product Plans program Results • Tracking reports • Determine trend in • Market potential • Characteristics and • Memos measuring past and current By industry timing of: assigning results of the Information revenues: By segment Product actions responsibilities marketing For industry and • Market-product Price actions for actions and actions competitors in grids, with ranked Promotion actions deadlines; • Deviation total and by targets Place actions Gantt charts reports segment • Product positioning • Projected marketing • Organizational comparing • Project future that stresses key expenses charts and job actual results revenues, features, • Detailed plans to descriptions with plans expenses and advantages, execute the • Action memos profits: benefits marketing program to try to correct For own product problems and in total and by exploit segment opportunities Corrective actions Corrective actions The Strategic Marketing Process.. • The Planning Phase – Situation (SWOT) – Market-Product Focus Analysis and Goal Setting • Market Segmentation – Market-Product • Selecting the Target Strategies Market • Market Penetration – increasing market share • Defining Competitive • Market Development Advantage – developing new markets • Marketing Program • Product Development – developing new products • Develop the Marketing Mix (the 4 Ps) • Diversification – developing new products • Developing the Budget for new markets 5
  • 6. The Innovators' Survival Guide: Marketing Edition By Michael Brandt ..The Strategic Marketing Process • The Implementation • The Control Phase Phase – Comparing Results – Obtaining Resources with Plans to Identify – Designing the Deviations Marketing – Acting on Deviations Organization – Developing Schedules – Executing the Program • Marketing Strategy • Marketing Tactics Key Organizational Buying Criteria Quality Specifications Delivery Price Schedules Technical Organizational Past Capability Buying Criteria Performance Warranty/ Production Claim Policies Facilities/Capacity 6
  • 7. The Innovators' Survival Guide: Marketing Edition By Michael Brandt Why Consumers Buy Online Convenience Cost Choice Customization Communication Control Five Product & Promotion Strategies for Global Marketing Same Product Adapt Product Create New Product Product Product Same Extension Adaptation Promotion Strategy Strategy Product Invention Communication Strategy Dual Adapt adaptation Adaptation Promotion strategy Strategy 7
  • 8. The Innovators' Survival Guide: Marketing Edition By Michael Brandt THE MARKETING MIX Marketing Marketing Elements Elements Product Product Price Price Promotion Promotion Place Place Features Features List price List price Advertising Advertising Outlets Outlets Brand name Brand name Discounts Discounts Personal selling Personal selling Channels Channels Packaging Packaging Allowances Allowances Sales promotion Sales promotion Coverage Coverage Service Service Credit items Credit items Publicity Publicity Transportation Transportation Warranty Warranty Payment period Payment period Stock level Stock level Cohesive marketing mix Promotion Promotion Place Place Product Price The Promotional Mix • Advertising • Coupons • Personal Selling • Deals • Premiums • Public Relations • Contests • Sales Promotion • Sweepstakes • Direct Marketing • Samples • Point of Purchase Displays • Rebates 8
  • 9. The Innovators' Survival Guide: Marketing Edition By Michael Brandt How stages of the product life cycle relate to a firm’s firm’ marketing objectives and marketing mix actions Stage of the product life cycle Sales revenue Introduction Growth Maturity Decline or profit Total industry sales revenue + Total industry profit 0 – Marketing Marketing Gain Gain Stress Stress Maintain Maintain Harvesting, Harvesting, objective objective Awareness Awareness differentiation brand loyalty differentiation brand loyalty deletion deletion Competition Competition None None Growing Growing Many Many Reduced Reduced Product One More versions Full Full Best sellers Product One More versions product line product line Best sellers Skimming or Skimming or Gain share, deal Defend share, Price Price penetration penetration Gain share, deal profit share, Defend profit Stay profitable Stay profitable Stress Stress Reminder Minimal Promotion Promotion Inform, educate Inform, educate competitive competitive Reminder Minimal differences oriented oriented promotion promotion differences Place Place Limited More outlets Maximum Maximum Fewer outlets (distribution) (distribution) Limited More outlets outlets outlets Fewer outlets Importance of Promotional Elements during the Consumer’s Purchase Decision High Personal selling Importance of promotional tool Sales promotion Direct Marketing Public rela tions Advertising Low Prepurchase Purchase Postpurchase Stage of consumer’s purchase decision 9
  • 10. The Innovators' Survival Guide: Marketing Edition By Michael Brandt Promotional Tools used over the Product Life Cycle of Purina Puppy Chow Growth Maturity Stage of Decline product life cycle Introduction Promotional To inform To persuade To remind objective • Publicity in • Personal selling • Reminder • Little veterinary to intermediaries advertising money magazines • Advertising to • Sales promotion in spent on • Advertising differentiate form of discounts promotion Promotional • Salesforce calling Puppy Chow and coupons activity • on intermediaries attributes from • Limited personal • Sales promotion those of selling in form of competing • Direct mail free samples brands reminders Steps in Setting Price Step 1 Identify pricing constraints and objectives APPROACHES • Demand • Cost Step 2 Estimate demand and revenue • Profit • Competition Step 3 Determine cost, volume, and profit relationships Step 4 Select an approximate price level Step 5 Set list or quoted price Step 6 Make special adjustments to list or quoted price 10
  • 11. The Innovators' Survival Guide: Marketing Edition By Michael Brandt Break-Even Analysis Chart Total revenue or total cost Total revenue Profit Total cost ⎫ (fixed and variable cost) ⎬ Variable cost Loss ⎭ Fixed cost Quantity Functions Performed by Independent Wholesaler Types MERCHANT WHOLESALERS FULL SERVICE LIMITED SERVICE AGENTS AND BROKERS GENERAL SPECIALTY CASH MANUFAC- FUNCTIONS MERCHAN- MERCHAN- RACK AND DROP TRUCK TURER'S SELLING PERFORMED DISE DISE JOBBERS CARRY SHIPPERS JOBBERS AGENTS AGENTS BROKERS TRANSACTIONAL FUNCTIONS Buying Sales calls on customers Risk taking (taking title to products) LOGISTICAL FUNCTIONS Creates product assortments Stores products (maintains inventory) Sorts products Transports products FACILITATING FUNCTIONS Provides financing (credit) Provides market information and research Grading Key: , Yes; , Sometimes; , No. 11
  • 12. The Innovators' Survival Guide: Marketing Edition By Michael Brandt Balancing Total Logistics Costs and Customer Service Factors Communication Transportation Materials handling costs and warehousing Dependability costs Time Order Inventory processing costs costs Convenience Stockout costs Total logistics cost factors Customer service factors Michael’s Favorite Axioms • “What gets measured gets managed” • “If you’ve got to do “A” and “B” to get an outcome and you’ve got a 90% chance at each “A” an “B”, you’ve got an 81% chance of the outcome.” • “If you fail to plan, you plan to fail!” • “Adaptation to change is the key to survival.” • “It’s about the Customer!” 12