MBA 626.01 Class 1: Introduction

1
MBA 626.01 - Class 1 Introduction

• Todays objectives
• Introductions
• In-class Bulldog Books
• Review of syllabus
• Review next class assignment

2
MBA 626.01 - Lecture 1 Introduction

• Introductions
• Professor
• Students
• Name -Hometown
• Major -Class goals
• Job experience -Misc.

3
MBA 606.11 - Class 2 Targeting Segmentation

• In-class Learning objectives
• Review the following
• Positioning 4Ps
• Discuss the marketing planning process
• Discuss important environmental factors affecting
  marketing decisions
• Review important marketing questions

4
MBA 626.01 - Lecture 1 Introduction

• In-class Project
• Form groups of 2 to 5 people
• Positioning targeting exercise
• Bulldog

5
Marketing Class 1 Positioning

• Positioning is what you want consumers to think
  about your brand
• Brand positioning is supported by decisions
  about
• Product, Price, Promotion, Place
• Targeting is identifying the consumers at which
  your positioning/marketing efforts are aimed
• Brand is different from product(s)

6
Marketing Class 1 Positioning

• Positioning
• Staking out mental territory for a brand
• Two things that need to be done
• First, Membership
• Second, Point of difference (POD)

7

• Positioning
• Target Market Membership
• Point of Difference Reasons to Believe
• The positioning drives marketing strategy
• Marketing Mix 4Ps
• The four elements of the marketing mix
• Product Price
• Place Promotion

8
Marketing Class 1 Positioning

• Targeting example

9
Membership
10
Membership
11
Membership
12
pod
13
Marketing - Class 2 Targeting Segmentation

• Positioning statement
• Four parts
• 1 Membership
• 2 Point of difference
• 3 Reason to believe
• 4 Target market
• Example Sony Mavica in Wired magazine

14
MBA 606.11 - Class 2 Targeting Segmentation

• REVIEW POSITIONING
• For technically savvy amateur photographers,
  Mavica is a digital camera that makes it easier
  to share your pictures because it uses a 3.5
  disk.

15
Marketing Class 1 Positioning

• Positioning
• Staking out mental territory for a brand
• Two things that need to be done
• First, Membership
• Second, Point of difference (POD)

16
Marketing Class 1 Positioning

• In-class part 1 Positioning
• Write the positioning statement for these ads
• Princess Cruises
• Minolta Vectis

17
Marketing Class 1 Positioning

• In-class part 1 Positioning
• Princess Cruises
• 1 Membership - cruise vacations (luxury)
• 2 Point of difference - customer service
• 3 Reason to believe - free planning kit ports
  of call
• 4 Target market - upper-middle interested in
  travel, probably not upper class

18
Marketing Class 1 Positioning

• In-class part 1 Positioning
• Minolta Vectis
• 1 Membership - Advanced Photo System cameras
• 2 Point of difference - underwater
• 3 Reason to believe - camera underwater
  co-branding with Kodak APS film
• 4 Target market - active people above novice,
  probably below expert photographer.

19
Marketing Class 1 Positioning

• Positioning is what you want consumers to think
  about your brand
• Brand positioning is supported by decisions
  about
• Product, Price, Promotion, Place
• Targeting is identifying the consumers that your
  positioning/marketing efforts are aimed at
• Brand is different from product(s)

20
MBA 606.11 - Class 2 Targeting Segmentation

• Positioning does drive strategy 4Ps
• Lets use our positioning targeting statement
  to drive a basic marketing strategy
• Price-(buying book)
• Product-(type of books)
• Promotion-(e.g., ad campaign)
• Place-(type of website)

21
Marketing Strategy Key Questions

• Basic Questions to answer
• Product Questions
• Price Questions
• Place Questions
• Promotion Questions

22
Product Questions (Brand)

• Look at sales data to find where to start.
• How are you doing compared to your history to
  your competition
• Explore image and/or awareness break-down in
  depth.
• Do something to Existing Products
• Introduce New Products
• Does it fit with my brand concept, awareness and
  image goals?
• Does it have a positive profit impact?

23
Price Questions

• How do you want to make your profit
• Profit Units sold(Price - VC) - FC
• Contribution Margin
• Four sets of information
• Your costs to produce, deliver, maintain
  dispose
• Maximum price consumers willing to pay
• Competitors pricing
• Your objectives for the product brand
• Consumers learn prices reference price
• Base Price
• Price Promotion

24
Place (Channel) Questions

• Physical Distribution of Products
• How should my brands products be sold?
• Direct or Indirect
• How should the channel support my positioning
• How many outlets?
• Intensive, selective, exclusive
• Which outlets?
• Where in the outlet should I be positioned?
• POP, shelf position

25
Place (Channel) Questions

• Service Outputs
• Lot Size how many units per purchase?
• consumer preference for small lots favors
  indirect distrib
• Assortment how big a variety to choose from?
• consumer preference for large assortments favors
  indirect
• Convenience willing to do some work to get it?
• consumer preference for high convenience used to
  favor indirect
• Waiting/Delivery Time how long until receive
  it?
• consumer preference for low waiting time favors
  indirect
• Atmosphere
• consumer preference for atmosphere favors indirect

26
Promotion Questions

• Message considerations
• Communicates position
• Speaks to the target market
• Gets attention of target market
• ACHIEVES GOAL - NEW (E.G., AWARENESS, IMAGE)
• Media considerations
• Accesses target market
• Cost effective access
• E.g., cost per 1000 (cpm)
• Supports/consistent with positioning

27
Marketing Management9120B

• Situation Analysis (Environment)
• 5cs
• consumer
• company
• competition
• channels
• conditions

28
MBA 626.01 - Lecture 1 Introduction

• Consumers
• Deep (benefit) segmentation - cause and effect
• Contact segmentation - media usage and retail
  shopping behavior
• Analysis of key customer relationships
• Trends in values, needs, purchase and usage
  behavior
• Customer characteristics - demographic, economic,
  cultural, etc.
• Overall demand forecast
• Customers Perceptions

29
MBA 626.01 - Lecture 1 Introduction

• Company
• Company's Objectives
• Company positioning
• Brand/product positioning
• Products long-term role in corporate
  mission/plan
• contribution, ROI, and cash flow objectives
• culture and resources, strengths and weaknesses
  audit

30
MBA 626.01 - Lecture 1 Introduction

• Company (cont)
• Specific budget constraints
• Internal political and bureaucratic constraints
• Market share change analysis/industry analysis
• New technology threats
• Backward and foreword integration threats
  opportunities

31
MBA 626.01 - Lecture 1 Introduction

• Competition
• Company's objectives
• Products long-term role in corporate
  mission/plan contribution, ROI, and cash flow
  objectives
• Company positioning
• Brand/product positioning
• Culture and resources, strengths and weaknesses
  audit

32
MBA 626.01 - Lecture 1 Introduction

• Competition
• Specific budget constraints
• Internal political and bureaucratic constraints
• Market share change analysis/industry analysis
• Competitive trends analysis
• New technology threats opportunties
• Anticipated competitor behavior

33
MBA 626.01 - Lecture 1 Introduction

• Conditions
• Regulation/deregulation issues trends
• New federal, state, and county regulations
  trends
• Relevant changes in public opinion and values
• Cultural issues trends
• Resource
• Technology

34
MBA 626.01 - Lecture 1 Introduction

• Channels
• Technology changes in logistics
• Backward and foreword integration threats
• New channel trends/channel industry analysis
• Short-term economic effects on channels
• Key distributor relation audit
• Channel/segment match

35
Marketing Management

• SWOT
• (strengths, weaknesses, opportunities threats)
• General, unfocused in nature

36
Marketing Planning Process
ID Marketing Issue
Situation Analysis
Marketing Research
Strategy Development
Implementation

• Evaluation Control

37

• Marketing Plan
• Marketing Objectives
• Positioning Statement
• Target Market
• Marketing Strategy
• Budget
• Sales forecast
• Implementation schedule
• Control Plan

38

• Evaluating marketing plan/action
• 5Ks-
• (k)Congruent with...
• company goals resources
• consumer needs
• (k)Creative
• (k)Comprehensive (all the market mix variables)
• (k)Consistent (are the 4Ps consistent?)
• (k)Consideration of conditions competition

39
Targeting Segmentation

• In-class Learning objectives
• Review the following
• Positioning 4Ps
• Discuss the marketing planning process
• Discuss important environmental factors affecting
  marketing decisions
• Review important marketing questions

40
MBA 626.01 - Lecture 1 Introduction

• Next class assignment
• Before leaving, turn in personal sheet
• Read pages
• Assigned 1. (1-2) Positioning homework
•                 2. (1-4) Marketing math
•                 3. (1-2) Read Schweppes Case
• Due    1. Group list of names by the end of
  class
•            2. Marketing Math
• Read (2-4) Marketing research chap
  45