Review Information More of What to Know

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Review InformationMore of What to Know

• Review and know the material in each of the
  lecture summary notes contained
  athttp//marketing.byu.edu/download/ASEM/
• Additional information is found in the file
  Marketing Readings.doc that is contained there.

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Marketing Myopia
Company
Myopic Description
Marketing-Oriented Description
ATT
We are a telephone company.
Were a communications company.
Greyhound
We are in the bus business.
Were in transportation
Salt Palace
We are in the ticket selling business.
Were in the exhibit conferences service
business.
Nintendo
We are in the video game business.
We are in the entertainment business.
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But . . . 4 Ps Updated The 4 Cs
Consumer Needs
Target Market
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The 4 Ps Updated
The 4 Ps
The 4 Cs
Why
Product
Consumer Needs
Consumer needs are more important than particular
products.
Promotion
Communi- cation
Paid promotion is only one portion of a total
communication plan.
Price
Cost/price toSatisfy Needs
Financial price is just one cost (price, time,
opportunity cost, risk).
Distribution
Convenience to Buy
Accessibility overshadows store location (direct
mktg, phone, Internet, TV)
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Understand the innovation-adoption curveand that
the upper curve is the product life cycle curve
that shows the total sales over the product life
cycle. What causes the curve to grow so quickly?
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Extended Decision MakingFor High Involvement
Decisions
Perceived need
Need Recognition
Individual Influences
Search for Value
Information Search
Environmental Social Influences
Evaluate value
Set Criteria
Feedback
Decide what to buy
Decide onSolution
Cognitive DissonanceEver experiencedit in your
choice ofsomething important?
Make purchase
PurchaseProduct
Judgment of valuereceived post-purchasefeelings
Post-purchase Responses
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Routinized Decision MakingFor Low Involvement
Decisions
Need Recognition
Individual Influences
Information Search
Environmental Influences
Set Criteria
Feedback
Decide onSolution
PurchaseProduct
Post-purchase Responses
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Attitudes
CONATION Intentions, Behavior
Attitudes
AFFECT Attitudes, Feelings
COGNITION Awareness, Beliefs
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Visionaries vs Pragmatists
Visionaries
Pragmatists
Intuitive Support revolution Break from the
pack Take risks Motivated by future
opportunities See what is possible
Analytic Support evolution Stay with the
herd Manage risks Motivated by present
problems Pursue the probable
Source Geoffrey Moore,Inside the Tornado
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The Uncontrollable Variables
Direct the Controllable Ones
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Strategy Planning Process
Cus-tomers
SWOTAnalysis
Com-pany
Competitors
External Market Environment
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Window of Opportunity
Cus-tomers
Compe-titors
Windowof Opportunity
Com-pany
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Evaluating the EnvironmentSWOT Analysis
Internal to the Firm
Strengths Cost advantagesWorker
loyaltyProduction facilitiesPatents
Maximize
Minimize
Opportunities Growing marketLow
competitionLoyal customersNew technologies
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SWOT Matrix 2002
Strengths
Weaknesses
Old, traditional design No sport bike Expensive

• An American tradition
• Macho, rugged
• Unique sound
• Committed management
• Committed/loyal workers

Opportunities
Continue to target samecustomer segment Keep
traditional design Get "personality" sponsors
Improve production qual. Improve H-D
design Reduce prices Target same
customers "Personality" sponsors
Harley trendiness Strong Harley loyalty Many
"wannabe's Growing market of younger riders
Threats
Improve prod'n capability Improve
performance Develop a sport bike Target young
riders w/ cheaper bike
Reduce motorcycle bus. Sell mcycle businessto
Japanese Emphasize golf carts, RVs, or ...?
Competition copyingtraditional Harley Sport
bikes Aging Harley rider