Transcript Marketing - Stevens Institute of Technology

Today’s Topic:
The Marketing Function
What it is;
why it matters;
and how to make
Marketing Mix
decisions
Course Schedule
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The Marketing Function (Lenovo)
Sales & Sales Channels (GolfLogix)
Internet-based Marketing (HubSpot)
R&D: Product Development (Guidant)
Operations (Crocs)
Product Launch (Invisalign)
Final Exam on Product Launch (Emotiv)
Today’s Agenda
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Mid-course feedback survey results
The marketing function and marketing
mix decisions
Return graded mid-term exams
Developing a marketing plan: Lenovo –
Building a Global Brand (case)
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Readings/assignment for next week:
sales channels (GolfLogix case)
Today’s Key Learnings
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Marketing roles and responsibilities
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The marketing mix
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Company and product positioning (with, against,
content)
Promoting a product (marketing communication)
The Marketing Plan
Executive
Summary
Table of Contents
Summary of Current Situation
Focused Assessment of Market Opportunity
Financial and Marketing Goals
Summary of Company’s Marketing Strategy
Target Market
Product/Service
Positioning
Distribution
Price
Promotion
Marketing Budget (Monthly)
Forecast Unit Sales and Revenues (Monthly)
Plan to Monitor/Evaluate Action Plans by Period
The Marketing Mix: C+4P
Price(s)
Product
(Target)
Customer
Place
Promotion
Taken together, the 4P’s define __?__
Marketing is responsible for
“marketing mix” decisions
(C + 4P’s)
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Customers/needs to be targeted (target
customer segments)
Product (product, positioning, service,…)
Price (levels and strategies)
Promotion (communication)
Place (sales/distribution methods)
If that’s what marketing
does…
who’s responsible for
revenues and profits?
The only choices are…….
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Senior mgmt (CEO/president, group head, ...)
Marketing
R&D
Sales
Operations (manuf, service ops, logistics)
Support:
IT, Finance, HR, Legal,
Investor Relations, Public/Media
Relations (PR), etc
What is Marketing’s “true
north” in making mix
decisions?
What is Marketing’s “true north”
in making mix decisions?
Market and financial objectives
for the product,
based on corporate
strategy/objectives (if relevant),
guided by the company’s
competitive advantages
Mix elements: Customers
Targeted end-customers
(a subset of the entire market)
Identified by:
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Names /group identity
Demographics
Psychographics
Needs
Specificity simplifies other mix
decisions!
Mix elements: Product
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Product features/functionality (“product itself”)
Cost target (and/or profit target)
Competitive positioning, and fit with corporate
(brand) positioning
Name
Packaging
Customer service
Breadth and depth of product line (versions)
…
Product Positioning Statement
“Our product,
compared to relevant competitors,
is the one that…
…(has these differentiators)
…and/or
(provides these benefits)”
Mix elements: Price
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Prices: manufacturer, wholesaler, distributor
Payment terms and conditions
Warranty
Discount policies
Price strategy vs. competitors
Bidding tactics
…
Mix elements: Place
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Channel choice: direct and/or indirect
Channel length and breadth
Channel partner selection
Franchising policies
Channel coordination and control
Channel competencies
Channel training (sales and product)
…
Mix elements: Promotion
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Branding (creating a company or product “image”)
Advertising (multiple media; paid and free)
Direct marketing (mail, catalog, telemarketing,
internet)
“Reference” customers (testimonials)
Public relations
Industry relations (trade orgs, industry analysts,…)
Trade shows and events
Price promotions
…
Promotion:
message and media
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Message: most often the “message” is
the positioning statement itself, often
expressed in an attention-grabbing way
Media: identifying the most effective
“media” for delivering the message is,
driven by consideration of who the
“positioning targets” are
The mix should “fit” with…..
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Needs/desires of the target customers
The company’s competencies and “image”
Competitors and their strategies/programs
Channel partners’ needs and competencies
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And….the competitive advantage decision
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The Marketing Plan
Summary
of Current Situation
Focused Assessment of Market Opportunity
Financial and Marketing Goals
Summary of Company’s Marketing Strategy
Target Market
Product/Service
Positioning
Distribution
Price
Promotion
Marketing Budget (Monthly)
Forecast Unit Sales and Revenues (Monthly)
Plan to Monitor/Evaluate Action Plans by Period
Marketing readings
for 10/26
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Creating a Marketing Plan: An Overview
(read to understand the specific components
of each element of the marketing mix)
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Lenovo: Building a Global Brand (case)
Lenovo case
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Case timeframe is 2006
Lenovo is the leading maker of PCs in China
Lenovo has acquired the IBM worldwide PC
division; acquisition completed in late 2005
Lenovo has to create a marketing strategy for
the combined company
Includes: rationalizing the product lines, creating
a new brand strategy, and launching
promotional activities to roll-out the new brand
and products
Marketing assignment
for 10/26
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What was Lenovo’s financial situation* before the
acquisition (2005)? What is the projected financial
impact of the acquisition (2006-8)?
What were Lenovo’s pre-acquisition competitive
advantages? What CA’s were obtained via the
acquisition?
Which of the branding alternatives (p. 9) should Lenovo
have chosen? (Consider the positives-and-negatives of
each alternative in arriving at your decision.)
How should the Lenovo brand be positioned vs.
competitors’ brands? Do the positionings of Think and
3000 (Ex. 9a) “fit” well within the Lenovo positioning?
* Use Exhibits 1a and 1b, not “Selected Company Financials”
Considerations in Creating
a Positioning Statement
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Who are you positioning yourself “with” ?
What are their desires/needs and
fears/concerns ?
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Who/what are you positioning “against” ?
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What are your differentiators ?
Today’s Key Learnings
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Marketing roles and responsibilities
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The marketing mix
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Company and product positioning (with, against,
content)
Promoting a product (marketing communication)
Topic for 11/2 Class:
Sales (Distribution Channels)
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How companies reach their customers:
types of sales channels available
Rationale for choosing which sales
channel(s) to use
Issues in “managing” and serving sales
channels
Impacts of channel choice on the design of
the “whole product”
Sales Readings
for 11/2 Class
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Going to Market - read to understand types
of sales channels, and the reasons for choosing
them
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GolfLogix: Measuring the Game of
Golf (case)
GolfLogix Case Summary
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A start-up company in 2002
Uses GPS technology to aid golfers
Two product versions: “distance only”
and “complete system”
Currently selling to/through golf courses
Considering also using retail channels
(would require a modification to their
product)
Sales questions for 11/2 class
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What are the most significant end-customer and sales
channel benefits of the each of the GolfLogix products?
What is the market potential (number sold and GolfLogix
revenues) of each of the GolfLogix products?
Who are the appropriate target customers for the
Distance Only product? For the Complete System?
What are the positives-and-negatives of selling through
golf courses? Through retail channels?
If only one of the channels can be chosen, which one
should GolfLogix use? Given the option of selling through
both channels, should GolfLogix do that?