This document provides an overview of various marketing techniques and strategies. It discusses marketing at the organization, business unit, product line, and brand levels. It also covers conducting new product opportunity analysis, including evaluating factors like category size, growth rates, margins, and competition. Additionally, it outlines components of a marketing plan such as defining the product and competition, positioning, communication strategies, packaging, launch plans, public relations, advertising, pricing, distribution, and metrics for measuring success.

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Marketing Techniques

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Product Development and New
Business Strategy
n Strategic Plan will identify business
objectives, time frames, and direction for
achieving growth
n Marketing decisions made at:
n Organization level
n Business unit level
n Product line level
n Brand level

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Organization Level
n Determine what business the organization
wishes to compete in
n E.g. Kraft
n E.g. Proctor & Gamble

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Business Unit Level
n Choose:
1. The market(s) to serve
2. Product line that will serve these
markets
n Decide how to allocate resources to
serve across those product lines and
customers

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Product Line Level
n Which items to carry?
n How broad or narrow and how deep or
shallow should the line be?
n Tactical decisions such as positioning,
advertising, pricing, and packaging

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Brand Level
n Monitors product/line performance
n position and advertisement
n promotion and pricing
n packaging and distribution

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Strategic Business Plan
n Specifies the financial objectives
n Specifies the avenue for growth

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Role of Top Management in
Setting New Product Strategy
Identified as:
n Direction setter
n Product line architect
n Project portfolio manager
n Process owner/creator
n Team launcher

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Strategic Approaches in the Food
Industry
n Example: Nabisco
n changed it’s vision in order to meet it’s
stated goal
n Reviewed its own basic competencies
n Renewed emphasis in and growing core
brands

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New Product Opportunity Analysis
n Involves ongoing environmental scanning
n Systematic procedure for evaluating
whether opportunities fits objectives
n Flows from the business plan
n Must be disciplined and directed
n Ideally started in existing product lines

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n Need to expand beyond current categories
in order to locate emerging needs
n May result in potentially higher investment
and greater risk
n Must focus on categories that fit
organizational competencies
New Product Opportunity Analysis

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n Factors to consider in evaluating market
opportunities:
§ Increasing interest in a new product benefits
§ Category size, as measured in sales
§ Category growth rate, as measured by the rate of
increase in sales
§ Category margins
§ Number and rate of new buyers in the category
§ Degree of brand switching (a measure of customer
loyalty and product appeal)
New Product Opportunity Analysis

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New Product Opportunity Analysis
n Factors to consider (cont.)
n Stage of the category life cycle, indicated by rate
of growth in sales, and nature and extent of
competition
n Amount of product/brand differentiation
n Recent innovation in the category
n Innovations in related fields that have potential
applications in the category
n Number of competitors
n Market shares of competitors

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New Product Opportunity Analysis
n Factors to consider (cont.)
n Technology position of competitors
n Barriers to entry and barriers to exit: access to
raw materials, capital requirements, proprietary
technology, economies of scales, customer-
switching costs
n Advertising and promotional expenses to sales
ratios in the category
n Seasonality of sales

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n Understand the consumer and what they are
seeking
n Opportunity high in:
n Products in early stage of life cycle
n Products with high margin and growth
n Products with few recent innovations
n Products without entrenched and dominant
competition
n Avoid categories with high barriers to entry/
exit
New Product Opportunity Analysis

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Marketing plan

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Market Summary
n Market: Past, present, and future
n Review changes in market share,
leadership, players, market shifts,
costs, pricing, and competition

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Product Definition
n Describe the product or service
being marketed

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Competition
n The competitive landscape
n Provide an overview of product
competitors, and their strengths and
weaknesses
n Position each competitor’s product
against the new product

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Positioning
¨ Positioning of product or service
¤ Statement that distinctly defines the
product in its market and against its
competition over time
• Consumer promise
– Statement summarizing the benefit
of the product or service to the
consumer

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Communication Strategies
n Messaging by audience
n Target consumer demographics

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Packaging and Fulfillment
¨ Product packaging
¤ Discuss form factor, pricing, look,
and strategy
¤ Discuss fulfillment issues for items
not shipped directly with the
product

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Launch Strategies
¨ Launch plan
¤ If product is being announced
• Promotion budget
• Supply backup material with detailed
budget information for review

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Public Relations
n Strategy and execution
n PR strategies
n PR plan highlights
n Have backup PR plan including
editorial calendars, speaking
engagements, conference
schedules, etc.

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Advertising
n Strategy and execution
n Overview of strategy
n Overview of media and timing
n Overview of ad spending

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Other Promotion
¨ Direct marketing
¤ Overview of strategy, vehicles, and timing
¤ Overview of response targets, goals, and
budget
• Third-party marketing
– Co-marketing arrangements with other
companies
• Marketing programs
– Other promotional programs

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Pricing
n Pricing
n Summarize specific pricing or
pricing strategies
n Compare to similar products
n Policies
n Summarize policy relevant to
understanding key pricing issues

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Distribution
n Distribution strategy
n Channels of distribution
n Summarize channels of distribution
n Distribution by channel
n Show plan of what percent share of
distribution will be contributed by each
channel – a pie chart might be helpful

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International
n International distribution
n Address distribution strategies
n Discuss issues specific to international
distribution
n International pricing strategy
n Localization issues
n Highlight requirements for local
product variations

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Success Metrics
n First year goals
n Additional year goals
n Measures of success/failure
n Requirements for success