Managing Markerting Processes - Seminar 3

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Slides from Seminar 3 in my Managing Marketing Processes course at SSE in Oct 2014

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  • 1. Managing Marketing Processes----Marketing Research Processes: Analyzingthe Market and the CompetitionSeminar 3Robin TeiglandMaster of General ManagementStockholm School of EconomicsOctober 14, 2014

2. Assignment 4 STP (corrected)1. Introduction: Electrolux Brand. Describe the Electroluxbrand mantra + main target audience + key benefits2. Market segments: socio-demographic. Describe asocio-demographic segmentation What is it and howcan you use it? What are the key learnings fromsegmenting using socio-demographic data? Describethe limitations of using a socio-demographic approachonly.3. Market segments: needs-based. Describe a needs-basedsegmentation what is it and how can you useit? What benefits does a needs-based segmentationprovide?2 3. Seminar 3 Overview Analyzing the Market Guest Speaker, Wei Wei, Springfellow Marketing Plan assignment3 4. Marketing planning process1. Summary of Current Situation - Provides a description of the business;product/service analysis. The situational analysis encompasses internal andexternal factors, e.g., the companys mission, strategy, offerings, and financialstatus; the economic and political climate; demand trends, and competitors.Discuss PESTEL, five forces, SWOT. Wood, 20084 5. 5Industry analysis 6. 6Porters five forces of competitionENTRANTSThreat of new entrantsINDUSTRYCOMPETITORSSUPPLIERS BUYERSRivalry amongexisting firmsThreat of substitutesSUBSTITUTESBargainingpower ofsuppliersBargainingpower ofbuyershttp://www.youtube.com/watch?v=mYF2_FBCvXw&feature=channelPorter, 2008 7. How to draw the industry boundaries? What industry is BMW in?World auto industry European auto industryWorld luxury car industry? Key criterion is SUBSTITUTABILITYOn the demand side: Are buyers willing to substitute betweentypes of cars and across countries?On the supply side: Are manufacturers able to switchproduction between types of cars and across countries? The industry may need to be analyzed at different levels ofaggregation for different types of decisionsGrant 2008 7 8. Industry Level Analysis: Porters Five ForcesThreatofPotentialEntrantsRivalry Between Competitors Identify Competitors and intensityof Rivalry amongst competitors. Briefly explain. Identify Buyers andBargainingPower of BuyersBargaining Powerof SuppliersThreat ofSubstitutesBargaining Power of each.Briefly explain.What business segment or industry is being considered:___________________________________________Identify Suppliers andBargaining Power of each.Briefly explain.Identify Substitutes andthe threat level of each.Briefly explainIdentify Potential Entrants andthe threat level of each.Briefly explain.Is this an attractive industry?Briefly explain, why or why not?Process steps:1. Identify industry or segment boundaries.2. Identify players in each Force using case facts.3. Assess level of threat, power, intensity of each Forceusing case facts and course concepts.4. Make final assessment of whether it is an attractiveindustry in which to compete using results of 5Forces analysis to support your view.9 9. 18How does the environment (PESTEL)affect the five forces (now and in future)?Johnson & Scholes 1997Politics andgovernmentEnvironment TechnologyLegalstructureSocial andDemographicstructureInternational/nationaleconomyIndustryenvironmenthttp://www.youtube.com/watch?v=jp_oyHY5bug 10. 191. What factors are affecting the industry?2. Which of these are the most important at the present time?3. Which of these are the most important in the next few years? Political Global, regional, and national politicaldevelopment (administration, politicalparties) Taxation policy Foreign trade regulations Labour market politics Government stability Socio-cultural Population demographics Income distribution Social mobility Lifestyle changes Attitudes to work and leisure Attitudes to consumerism Levels of education Changes in values/attitudes Education conditions Work environment conditions Health conditions Environmental Ecology Pollution conditions Green energy Energy conservation Waste handling Economic Business cycles GNP trends Interest rates & Exchange rates Money supply Inflation Unemployment Wage level Private consumption and disposableincome Public finances Energy availability and cost Technological Government spending on research Government and industry focus oftechnological effort New discoveries/development Speed of technology transfer Rates of obsolescence New patents and products Legal Development in price and competitivelegislation Labour market legislation Product safety and approvals 11. Marketing planning process2. Focused Assessment of the Market Opportunity - Explains thesegmentation, targeting, and positioning decisions. Discusses which segmentsare to be targeted, with an overview of customer and prospect needs, wants,behaviors, attitudes, loyalty, and purchasing patterns as well as the competitivechallenges faced by the company and its offerings. Wood, 200820 12. Group Assignment Part A How powerful are suppliers to this industry? What are theimplications for the companys business relationships? How powerful are buyers in this industry? What are theimplications for the companys pricing strategy? Can customers substitute other goods or services for thecompanys offering? What are the implications in terms ofcustomer loyalty for this company? How fierce is the competition among competitors in theindustry? Can the company or competitors easily exit the industry?Can more rivals easily enter the industry? What are theimplications for the company if environmental conditionsthreaten profitability? Overall how attractive is this industry? 21 13. Group Assignment Part B How can this market be described broadly in terms ofproduct, geography, and demographics? If you are researching a consumer market, approximately how many people, families, or households are in the market? What, specifically, are the main influences on buying behavior in thisconsumer market? If you are researching a business market, approximately how many and what type of organizations are in the market forthe product? What characteristics such as turnover, number of employees, and otherdescriptions relevant to the product apply to customers in this businessmarket? What changes are currently affecting (or will soon affect) thisconsumer or business market? What relationships and organizational considerations havethe most influence on buying in this market? 22 14. Copyright 2011 Pearson Education, Inc.Publishing as Prentice Hall4-23Research Approaches Observational and ethnographic Focus group Survey Behavioral Experimental 15. Rising interest in ethnographyEthnography or observational research hasdrawn significant attention recently, not only inthe market research and marketing fields but inthe mass media as well all starts by doingsomething simple keenly watchingconsumers, fact to face, knee to knee andlistening, with ears, eyes, heart, brain and yourintuitive sixth sense.Procter & Gambleex-CEO A.G.LafleyTesco: http://www.youtube.com/watch?v=fGaVFRzTTP4 16. Seminar 3 Overview Analyzing the Market Guest Speaker, Wei Wei, Springfellow Marketing Plan assignment25 17. 77558800%% of new products being launched fail. TThhee iiddeeaa iiss ggoooodd,, bbuutt tthhee mmaarrkkeett sshhaarree iiss oovveerrrraatteedd.. The product itself is not developed enough. The new product is badly positioned on the market, notwell-known enough, is priced too high or has thewrong packaging. The management wants to see their favorite ideasbecome products against all market research. Developing costs are higher than anticipated. Competitors put up more of a fight than anticipated.GfK 2012 18. What is a Marketing Plan?A marketing plan is thecentral instrument fordirecting and coordinatingthe marketing effort.It operates at a strategic and tactical level.McDonald, M. (2006) Strategic Marketing Planning: Theoryand Practice, The Marketing Review, 6, 375-418.Copyright 2011 Pearson Education, Inc.Publishing as Prentice Hall2-27 19. A marketing plan A business plan28Business PlanWide overview ofbusiness, eg mission,goals, strategy, staff,operations, location,marketing, financialOften used asfinancial tool to see ifbusiness viableBut they areinterdependent!Marketing PlanDetails actions to fulfillmission and goals.Identifies business pricepoints, target markets,and competition andexplains how businessgenerates customershttp://smallbusiness.chron.com/difference-between-marketing-business-plan-1682.html 20. Levels of a Marketing PlanCopyright 2011 Pearson Education, Inc.Publishing as Prentice Hall2-29 Strategic Target marketingdecisions Value proposition Analysis ofmarketingopportunities Tactical Product features Promotion Merchandising Pricing Sales channels Service 21. Marketing Plan Contents Executive Summary Table of Contents Situation Analysis Marketing Opportunity Assessment Marketing Strategy Financial and Marketing Goals and Budgets Implementation and Controls ReferencesCopyright 2011 Pearson Education, Inc.Publishing as Prentice Hall2-30 22. Marketing planning processWood 2008 31 23. Evaluating a Marketing Plan Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?Copyright 2011 Pearson Education, Inc.Publishing as Prentice Hall2-32 24. Marketing Plan Group Assignment Assume role of a marketing manager andselect a company within a specified industry Develop a marketing plan for a product orservice not currently offered by your company tobe launched on the Swedish market Completely new-to-the-world or can be new just toyour company Write a comprehensive marketing plan profilingthe competitive strategy to bring that product orservice to the Swedish market.33 25. Marketing Plan Teams34GROUPS PREFERENCES1. CG AwesomeB2C SME Service - Crown Innovative Parking2. Brazilian BBQB2C SME Service -4. Fika 4 SixB2C SME Product Franks Red Hot Sauce5. 6 Llamas B2C MNC Product - Uniqlo6. WICB2C MNC Service - Uber 26. Milestones October 20 See Group Assignment for Seminar 5 for information. October 20 Submit Feedback on another teams Initial Presentation. TheFeedback should add value to the other Teams presentation content and thecommunication of the Teams message. Your Feedback is also to include a summary ofthe main points made by the other students during the presentation on October 20.Your Feedback is to be in MS Word Doc (max 2 pages) format and have points onboth strengths and weaknesses regarding content and communication style. Feedbackteams will be assigned in class. November 3 Present a 10 min max Final PPT Presentation on yourmarketing plan. November 4 Submit Feedback on another teams Final Presentation. TheFeedback should add value to the other Teams presentation content and thecommunication of the Teams message to help them finalize their Final Report. YourFeedback is also to include a summary of the main points made by the other studentsduring the presentation on November 3. Your Feedback is to be in MS Word Doc (max3 pages) format and have points on both strengths and weaknesses regarding contentand communication style. Feedback teams will be assigned later in the course. November 9 - Submit the Marketing Plan of maximum 15 pages (MS Word Doc notincluding title page, executive summary, table of contents, references or appendices).35 27. Final Report 15 pages Not including title page, executive summary, table of contents, referencesor other appendices Single-spaced, 12 Times Roman, numbered pages, 2.54 margins All sources documented in proper manner See www.plagiarism.org for more information on how to cite and documentsources. The marketing plan is evaluated according to three criteria Professional Written and Oral Communications Critical Thinking Involving Analysis and Understanding of TheoreticalConcepts and Frameworks that Build Your Argument Creative and Original Content yet Feasible Plan Each group member contributes to the assignment in fairproportion36 28. Independent Research Get Started Now Start researching Use librarys databases and library staff Determine what data you need to collect and how Qualtrics, databases, interviews, etc. Contact any relevant people Follow related topics on twitter: marketing, industryproduct, etc. Blog, tweet, post, etc. about what you find #SSEMGM2014 Share with one another!37 29. Take a look at what is out there Online marketing plan templates / software slideshare, youtube, blogs Passport GMID database (Amazing!) E.g., SWOT38 30. Seminar 4 Overview Identifying Market Segments and Targets:Exploring Segmentation, Targeting, andPositioning Guest Speaker, Paola Peretti, Electrolux39