Transcript Introduction to Marketing

Summary of Product
Management
Professor Carl Mela
BA 460 Product Management
Fuqua School of Business
• Brand
Management
System
• On Building
A Brand
• Managing
Across
Brands
Product Management Summary–1
Agenda
• PharmaSim Wrap-up
– Insights from the marketing plan
– Insights from the game
• Course Summary
• Latest Research Project
Product Management Summary–2
PharmaSim Wrap-up
• Marketing Planning Lessons
• Strategies and Performance by Group
Product Management Summary–3
Marketing Planning Lessons
• Situation Analysis
– Length
• Is it germane to strategy and tactics
– Information ->Inferences ->Implications
• If no implications, than consider omitting
– The plan is also a request for resources
• Affects tone
Product Management Summary–4
Marketing Planning Lessons
• Situation Analysis
– Internal consistency
• If it is in the situation, is it in the summary?
The objectives? The strategy?
– Assumptions
• Includes growth, competitive reactions, etc.
– Objectives - are they attainable?
• Bonuses and merit raises
• Forecasts
Product Management Summary–5
Marketing Planning Lessons
• Competitor and Customer Analyses
– What do the customers want?
• Table of benefits by segment or perceptual map
– Who provides it?
• Table of benefits by competitor or perceptual map
– Are there positioning gaps?
– Who will rush to fill them and what are the
threats?
Product Management Summary–6
Marketing Planning Lessons
• Strategy and Tactics
– Link objectives, strategy and tactics
– Specificity: How many sales people?
What ad budget? What allocation of
trade promotions?
• Pricing Analysis
– All teams adopt competitive positioning,
but is this profit maximizing?
Product Management Summary–7
Marketing Planning Lessons
• Promotion Analysis
– Caution in reallocating marketing support from core
product (e.g., Coke to Diet Coke)
• Advertising Analysis
– Objective of primary demand is often not
commensurate with a line extension or a lower share
brand (increases competitor’s sales)
Product Management Summary–8
Marketing Planning Lessons
• Product Design Analysis
– Articulate rationale
– Competitors and customers
– Promotional plan should vary by product
Product Management Summary–9
Game Results
Rank Within Industry
Team Cum. Mfr. Sales
A
B
C
D
E
F
G
H
Cum. Net Income
2
1
1
1
3
1
2
1
Share of Mfr. Sales
3
3
2
3
4
2
3
3
Stock Price
3
2
1
2
3
1
1
1
4
2
1
2
3
1
3
2
• Groups maximized share and sales as
opposed to net income - marketing bias?
Product Management Summary–10
Game Results:
Team Strategies
Advertising
Team
Rank
A
3
B
3
C
3
D
3
E
4
F
3
G
3
H
3
Promotion
Rank
1
1
1
3
3
1
2
5
Sales
Force
Rank
3
4
4
3
3
3
4
3
Price
Rank
2
2
2
2
4
1
2
2
Number
of
Products
2
3
3
2
2
3
3
3
Product Management Summary–11
Game Results
• Correlation between teams’ strategies and teams’
results
Cum. Mfr. Sales Cum. Net Income Sh. Mfr. Sales Stock Price
Cum. Ads
-0.03
-0.04
-0.21
-0.08
Cum. Promo
0.64
0.37
0.66
0.68
Cum. Sales F.
0.10
0.41
-0.25
-0.02
Avg. Ret. Price
0.64
0.79
0.29
0.49
No. Products
0.46
-0.04
0.73
0.59
Product Management Summary–12
PharmaSim Wrap-up
• Experience with marketing planning
– Number of lessons with respect to
writing a plan
• Goal-setting experience
– How did you do vs. plan
• Experience managing a brand
– Most teams did well
– Correlates of success
Product Management Summary–13
Course Overview
• Objective - Theoretical and practical
grounding in brand management
• Structure
– Brand Management System
– On Building A Brand
– Managing Across Brands
Product Management Summary–14
Structure
• Part I - The Brand Management System
– Brands and Brand Management: Class 1
• The Nature of a Brand
• Brand/Product Management
• An Application to the Pepsi Syringe Scare.
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–
–
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Sophisticated organizational structure
Integrated plan
Facilitated information flows to and from markets
Result: brand not affected
Product Management Summary–15
Structure
• Part I - The Brand Management System
– Organizational Design: Class 2
• P&G Case
– The brand management system gives brands attention
– In mature categories, be wary of product proliferation
• Live commentary from P&G
– Whitewater packaging
– Challenges of implementing decisions (approvals and
interactions)
– P&G continually adapts its structure
Product Management Summary–16
Structure
• Part II - Building Brands
– Pricing: Class 3
• Kodak
– Strategic choice between share, margins, and equity
– Innovation is necessary to increase all three
– Price points and flanker (fighter) brands
• Pricing
– Price-quality inferences
– EDLP
– The effect of pricing on equity (JMG 1999)
• Red Hat’s Director of Marketing
– Product v. brand
– Flanker brands
Product Management Summary–17
Structure
• Part II - Building Brands
– Distribution: Class 4
• Goodyear case and video
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–
–
–
–
Channel cares about price and store equity (not brand)
Manufacturer cares about brand equity (not store)
Intensive v. exclusive distribution and equity
Push v. pull and equity
Channel is front line to customer and has large impact on equity
Video: dealing with the media
• Brand Elements
– Name, logo, characters, slogans, and jingles
– Memorable, meaningful, protectable, transferable, adaptable
Product Management Summary–18
Structure
• Part II - Building Brands (Cont.)
– Private Label and Promotion: Class 5
• Private Label
– Change quality, change price, add low quality brand, or do
nothing (Hoch)
– Recall, these are Kodak’s options
• Sales Promotion
– Event marketing (raise awareness and leverage secondary
associations, but weak payoffs and unforseen consequences)
– Sales promotion (trade and consumer)
» Short term gains, long term costs
• Craig Stacey (VP from IRI) discusses the use of scanner
data information to build brands.
Product Management Summary–19
Structure
• Part II - Building Brands (Cont.)
– Promotion: Class 6
• Marketing in the NHL
– Promotion of event rather than game
– Grass roots marketing
• Hurricanes Director of Communications,
Ken Lehner
– Live survey on marketing the NHL and building
the Hurricanes brand
– Promotional design
Product Management Summary–20
Structure
• Part II - Building Brands (Cont.)
– Advertising: Class 7
• Advertising
– Integrated communications (awareness and brand associations)
• Intel Inside Interactive CDROM.
– Process of developing advertising strategy
• Live Commentary and Discussion with Michael J.
Ganey, Director, Howard, Merrell & Partners,Inc.
– How to use an agency
– Effect of advertising on brands
Product Management Summary–21
Structure
• Part III - Across Brands and Markets
– The Marketing Plan: Class 8
• The Marketing Plan
– Plans serve to coordinate and formalize research
and decisions
– Planning process
– Planning format
• Tom O’Guinn, Visiting Professor discusses
Brand Communities.
– Consumers are now empowered by the internet
and increasingly difficult to manage
Product Management Summary–22
Structure
• Part III - Across Brands and Markets
– Product Extensions: Class 9
• Product Extensions
– Tremendous efficiencies
– Consumer confusion
– Issues of fit
• The Black and Decker Case and Video
– Demonstrates effect of extensions on parent brand
– Strategies to mitigate negative brand associations
» Rebrand
» Inimitable points of differentiation (service, sales relationships)
Product Management Summary–23
Structure
• Part III - Across Brands and Markets
– Global Branding: Class 10
• The Heineken Case
– Messages can transcend culture
» Think global (message)
» Act local (design)
– Local v. global control
• Global branding
– Efficiency v. customization
• The Fuqua MBA with Jim Gray, Associate
Dean, Fuqua.
Product Management Summary–24
Structure
• Part III - Across Brands and Markets
– Branding on the Internet: Class 11
• Deborah Kania (Lens Express and author of
branding.com) and Beth Yakel (Sciquest)
– Brands are increasingly important on the web
– Traditional brands have greater awareness but
carry traditional “baggage.” The opposite is true
for e-brands
– Branding on the web implies personalization and
community
Product Management Summary–25
Structure
• Part III - Across Brands and Markets
– Wrap-up and PharmaSim Summary:
Class 12
• You are here!!
Product Management Summary–26
Course On a Page
• Part 1 - Brand Management System
– Brands and Organizational Design
• Part 2 - On Building A Brand
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Price to Image
Distribution Presents Image
Christen and Nathaniel Arrive!
Promotion to Develop Image
Product is Image (Private Label)
• Part 3 - Managing Across Brands & Regions
– Marketing Plan
– Product Lines Interact
– Global v. Local Associations
Product Management Summary–27
Good Luck!
• Stay in touch
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Guest speaking
Examples
Feedback regarding preparation
Vexing issues faced this summer or next
year
• Thank you for making this a great and
enjoyable course!!
Product Management Summary–28