Class 3

1
Class 3

• Sales
• Marketing

2
Todays Drucker

• The purpose
• of a business
• is to create and
• keep a customer.

3
Sales Marketing
Product/Service
Customers
COMPANY
Money

• Sales (Revenue)
• Money received for selling product or service
• Source of funds for business operations
• Basis for business existence
• Marketing how company gets sales
• selection, pricing, promotion and distribution of
  products/services to customers

4
Marketing and 4 Cs 2 Ss
5
Customers

• Who are your customers (or target customers)?
• How many potential customers are there?
• What are their characteristics?
• Age, sex, wealth, education, hobbies, work, is it
  one person?
• What are their goals, desires, needs, wants?
• How do they buy?
• What do they think about?
• Where do they get information? Who influences
  them?
• What is important to decide (price, features)
• When do they buy (seasonal products, bonus
  season)
• When do they pay?
• Market segment group of similar customers
• Broad market U.S. Market, Software Market
• Narrow market segment left-handed golfers

6
Marketing Universe

• Product/Service (what)
• Market (where, who)
• Location (U.S.,Japan,????)
• Gender (male, female)
• Age (lt21, 21-35, gt70,??)
• Activity (ski, golf, travel)
• Preference (????????)
• Application (how, why)
• New application for a keitai
• New application for a tree

Products
Applications
Markets
7
Example Consumer Market Segmentation
Positioning
Automobiles
Car
Classy
Safe
Zoom
American
Single Women
Single Men
Younger Families
Older Families
Older Drivers
8
Business Market Segmentation
How Many
1
Microsoft
Fortune 500
500
Large Businesses
10-20,000
Medium Businesses
9 million
Small Businesses gt1 person
1-person companies
10 million total
All U.S. Businesses
9
Consumer Business Markets
Google?
Haagen-Dazs
Microsoft
Nike
Intel
Dell
Uniqlo
Product
HP
Starbucks
GE
Sony
Bloomberg
Hair Salon
Amazon
Askul
???
Service
eBay
Secom
Business/Industrial Market
Consumer Market
10
3rd Party Business Model
11
Sales/Buying Cycle

• Awareness gt Interest gt Trial gtPurchase gt
  Repurchase
• Hear About Curious Try Buy
  Keep Using
• This Exists Educate Test Use it
  KeepBuying

Repeat customers are key to business success
12
Industry/Market Life-Cycle
SALES
Awareness ? Interest ? Trial ? Purchase ?
Repurchase
Emerging Growing Maturing Declining
TIME
13
Technology Adoption Life Cycle
Chasm
Main Market
Financial Services
Academics Tech. Fans
Innovators
Early Majority
Laggards
Early Adopters
Late Majority
Time
Examples- Internet
Geoffrey Moore, Crossing the Chasm
14
4Ps Marketing Mix

• Product (what do we make)
• Place (where do we sell it)
• Price (how much we sell it for)
• Promotion (how we communicate about it)

15
Product

• What is our product and/or service
• Physical/tangible alarm, software, newspaper,
  coffee
• Intangible security, insurance, information,
  experience
• Why do people buy it
• What does it do?
• How is it used?
• Does it need something else?
• One-time or consumable?
• Packaging (box, label, information, customer
  experience)
• Positioning
• How different is it (perceived) from other
  products?
• What is my brand image/strength

16
Place Where do I sell?

• Choosing the Channel, Supporting It
• How many potential customers are there?
• Can I easily identify customer?
• How expensive is my product?
• How many products can I sell one customer?
• How powerful, or valuable are the resellers?
• Are there many resellers that compete?

17
Price Issues

• What does it cost to produce? (floor)
• Cars, Soda, Computers
• Pharmaceuticals, Software
• How much value does it have to customer?
  (ceiling)
• How many can I sell at each price?
• How many customers are there?
• How much competition is there?
• Is it easy to compare with other prices?
• How much better is my product?
• Does price fit with my positioning?

18
Price Margin
Price to customer
Price to Channel
Cost
19
Promotion
20
Promotion (communications, selling)

• Advertising
• Push (direct mail, email)
• Is each customer readily identifiable?
• Pull (TV, radio, poster, newspaper, some banner
  ad)
• Cant readily identify individual customers
• Internet can be push or pull
• Chirashi?
• Public Relations
• Investor Relations
• Intel Case Examples
• Motorola 13 Wall Street Journal Ads
• Intel 6 rebate 4 up to 66 of Print, 2 up
  to 50 of TV/radio

21
Visual Aids
22
Humor in Advertising
23
Packaging Functionality
24
Product Positioning Promotion
25
Promotion Market Segmentation
Promotion Media

Direct Mail
Taro Tanaka
Overweight, Athletic, Beer-Drinking Men, Who
care about their figure
Fitness Magazine
Targeted Poster
Overweight, Athletic, Beer-Drinking Men
Football Broadcast
Overweight Athletic Men
Train Poster
Overweight Men
Night TV
Men
People
TV
26
Women, buy ALL the stuff
1
Women buy or influence the purchase of nearly
all consumer products and an increasingly high
percentage of business related products
1
Tom Peters, author of In Search of Excellence
27
Next Class 5?27?

• Regional Goods Marketing Project Presentation

28
Region Marketing Project

• Group project 1-2 people
• Pick product/service from Kagoshima or home
  region/country
• Pick a target market
• Develop company sales/marketing/branding
  promotion
• 5/?27? presentation (powerpoint, poster, or
  other)
• Presentation 5?
• QA and advice 2-5?
• English Preferred

29
Famous Country Products

• German Car
• Italian Clothing
• Swiss Knife
• Swiss Watch
• Japanese Watch
• American Rock Roll
• Japanese Sake, Soy Sauce
• Scotch Whisky
• Tennessee Whiskey
• Irish Whiskey

• Mercedes Benz, BMW
• Fendi, Versace
• Victorinox
• Rolex, Omega
• Seiko, Casio
• Elvis Presley
• Gekkeikan, Kikkoman
• Glenlivet, Chivas Regal
• Jack Daniels
• Jamieson

30
Guinness Ireland Genius?

• Alcohol as Product
• Easy to label, package
• Niche-ability
• Easy trial
• Consumable
• Addictive
• Social pressure
• Challenges
• Advertising Costs
• Channel Strength
• Social pressure

159 ?? 36.5? ? per year
31
Region Goods/Service Promotion Project

• Product/service
• Company/brand
• Customer target size
• Promotion message
• Place
• Channel
• Competition
• Price
• Collaborators

ADVERTISEMENT Sample
32
Promotion Project

• Product/service
• Company/brand
• Customer target/size
• Promotion message
• Place
• Channel
• Competition
• Price
• Collaborators

• Kagoshima fresh tonkatsu
• Big Pig Ka-ton
• Japanese tourist hotels (200?)
• Japans juiciest tonkatsu
• Trade fair, magazine, site visits
• Direct (sales force)
• Kumamoto Ton, Nissin
• Slight premium
• Kagoshima pig farmers ?

33
TM
BIG PIG KA-TON
So Fresh You Think It Can Fly
34
Fit Is this the Right Match?

• Opportunity
• Environment (4Cs)
• Marketing Mix (4Ps)
• Selling/Buying Cycle (Goal)
• Promotion Message Strategy
• Business Model

35
Suggested Readings

• Books
• ????? by ????E. ????
• ??????? by ????E. ???? , ?? ??
• ???? by ????????
• ??????????????? ??by ???
• ??????????????????????????? by?? ?????
• ??????????? by ????? ?????
• Video
• ???????  with ????????
• ??????? with ????????
• Glengarry Glen Ross with ????????
• WWW
• Entrepreneur.com

36
Class 4

• Marketing Presentations

37
Region Goods/Service Promotion Project

• Product/service
• Company/brand
• Customer target size
• Promotion message
• Place
• Channel
• Competition
• Price
• Collaborators

ADVERTISEMENT Sample
38
Fit Is this the Right Match?

• Opportunity
• Environment (4Cs)
• Marketing Mix (4Ps)
• Selling/Buying Cycle (Goal)
• Promotion Message Strategy
• Business Model

39
Stealing a Countrys Product
Emphasize the Difference, Dont Hide It!
40
Advertisement Discussion

• Product/Service
• Target Market
• Medium
• Value Proposition
• Message
• Buying Cycle

41
Product vs. Brand

• Product
• Made at factory
• Can be copied
• Quickly becomes old

• Brand
• Purchased by Customer
• Unique
• Timeless

Stephen King, WPP London
42
Homework Dell Online Case Issues to Think About

• Company History and Choices
• Industry Competition
• Products
• Customer/Market Segments
• Pricing
• Channel/Operations
• Competitive Advantage
• Case questions decisions