The Rady School of Management Lecture #9 Market Research – Actionable Marketing (wrap up from Lecture #8) Market Segmentation M, W MGT 103 Professor De Mill STEP 4: DEVELOP FINDINGS Marketing dashboards that present findings to Tony’s marketing manager that lead to recommendations and actions. STEP 5: TAKE MARKETING ACTIONS Make Action Recommendations Implement the Action Recommendations Evaluate the Results • Evaluate the Decision Itself • Evaluate the Decision Process Used SALES FORECASTING TECHNIQUES 1. Judgments of the Decision Maker: • Direct Forecast – best guess; used for new products • Lost-Horse Forecast – “where did we leave off?” 2. Surveys of Knowledgeable Groups: • Survey of Buyers’ Intentions Forecast • Salesforce Survey Forecast 3. Statistical Methods: • Trend Extrapolation: Extending a Pattern Observed in Past Data into the Future • Linear Trend Extrapolation: When the Pattern Is Described with a Straight Line FIGURE 8-8 Linear trend extrapolation of sales revenues at Xerox, made at the start of 2000 Copyright © McGraw-Hill Education. Permission required for reproduction or display. LEARNING OBJECTIVES – Market Segmentation 1. Explain what market segmentation is and when to use it. 2. Identify the five steps involved in segmenting and targeting markets. 3. Recognize the bases used to segment consumer and organizational (business) markets. LEARNING OBJECTIVES – Market Segmentation 4. Develop a market-product grid to identify a target market and recommend resulting marketing actions. 5. Explain how marketing managers position products in the marketplace. FIGURE 9-1 Market segmentation links market needs to an organization’s marketing program through marketing mix actions. FIGURE 9-2 A market-product grid shows the kind of sleeper that is targeted for each of the bed pillows with a different firmness. Using Market-Product Grids WHY SEGMENT MARKETS? WHEN AND HOW TO SEGMENT MARKETS (1 of 2) One-Size-Fits-All Mass Markets No Longer Exist • Three Segmentation Strategies: 1. One Product and Multiple Market Segments (Example: Books) 2. Multiple Products and Multiple Market Segments (Example: Cars) 3. Segments of One–“Mass Customization” (Example: Tailor Products to Individuals) FIGURE 9-3 The five key steps in segmenting and targeting markets that link market needs to a firm's marketing program. research SEGMENTING AND TARGETING MARKETS STEP 1: GROUP POTENTIAL BUYERS INTO SEGMENTS (1 of 4) Criteria to Use in Forming the Segments • • • • Simplicity and Cost-Effectiveness Potential for Increased Profit Similarity of Needs of Buyers in Segment Difference of Needs of Buyers among Segments • Potential of Marketing Action to Reach Segment ©Reed Saxon/AP Images FIGURE 9-4 Segmentation bases, variables, and breakdowns for U.S. consumer markets SEGMENTING AND TARGETING MARKETS STEP 1: GROUP POTENTIAL BUYERS INTO SEGMENTS (3 of 4) Variables to Use in Forming Segments for Wendy’s: • Students: • • • • Dorms, Sororities, and Fraternities Apartments Day Commuters Night Commuters • Nonstudents: • Faculty and Staff • Residents in Area • Workers in Area SEGMENTING AND TARGETING MARKETS STEP 2: GROUP PRODUCTS INTO CATEGORIES Individual Wendy’s Products Groupings of Wendy’s Products: Meals 1. 2. 3. 4. 5. Breakfast Lunch Between Meal Snack Dinner After Dinner Snack FIGURE 9-9 Selecting a target market for your Wendy’s fast-food restaurant next to an urban university (target market is shaded). SEGMENTING AND TARGETING MARKETS STEP 4: SELECT TARGET MARKETS (1 of 3) Criteria to Use in Selecting Target Markets • Two Types of Criteria: 1. Those That Divide a Market into Segments 2. Those That Actually Pick the Target Segments MARKETING MATTERS Apple’s Segmentation Strategy POSITIONING THE PRODUCT (1 of 2) Product Positioning Product Repositioning Two Approaches to Product Positioning 1. Head-to-Head Positioning 2. Differentiation Positioning Writing a Positioning Statement POSITIONING THE PRODUCT (2 of 2) Product Positioning Using Perceptual Maps: 1. Identify Important Attributes for a Product or Brand Class 2. Discover how Customers Rate Competing Products or Brands on These Attributes 3. Discover Where the Company’s Product or Brand Is on these Attributes in Minds of Customer. 4. Reposition the Company’s Products or Brands in the Minds of Consumers FIGURE 9-11 The strategy American dairies are using to reposition chocolate milk to reach adults. The Rady School of Management Team Project Assignment Group Break Outs MGT 103 Group Assignments • Each of you have been assigned to a Working Group (#110) • Assignment is to create a Marketing Plan for a new product or service. You decide! • Follow the template for “Marketing Plan” in Appendix 2 of the textbook (page #56) • Each of you to take on a Specific Section(s) of the Plan (e.g. Executive Summary, Company Description, Strategic Focus and Plan, etc.) Group Assignments • Group Leader to be chosen (20 extra credit points towards final grade) – Group Leader finalizes PowerPoint & Executive Summary “2 pager”. This will serve as his/her Executive Summary Brief as well • Remaining Team Members pick one of the remaining 8 “elements of the plan”, page #57 2. 3. 4. 5. Description of Company Strategic Plan/Focus Situation Analysis Market-Product Focus 6. Marketing Program 7. Financials, Org structure 8. Implementation Plan 9. Evaluation Plan • Each team member will create 2-3 slides, and a 2-page Executive Summary Brief of their topic (single space, 10 font) Considerations……. • Pick a product, service, segment that you understand fairly-well • This is a “start up” company. No one knows you! • Suggest weekly team meetings to review content. You have 5 weeks to complete the Power Point and Summary Brief. Both are due on December 1st. • PowerPoint rules….6 X 6 “six lines, six words” • Select a template for your Brand…keep it simple! • A picture is worth a thousand words! Graphs, charts, pictures strongly encouraged! Considerations……. • Neatness counts! (No typos, blurry images) • Consistent use of color and fonts • Avoid effects unless deliberately used (don’t let Power Point be a distraction to your presentation) • You are asking a Venture Capitalist or CEO to approve your launch….it should look that way Announcements…….. • Read Chapter #10 – New Products & Services • Wednesday, October 27th - Mid-Term Review! Not to be missed – Chapters #1-#10, Case Studies #1,2 (GM: Mary Barra, Starbucks) • Mid-Term Examination on Monday, Nov. 1st. • Exam offered at 9:30 a.m. & 5:30 p.m. Pacific. Please email Rohit if you prefer 5:30 p.m. • Office Hours on Monday, 2:30 p.m. – 3:30 p.m., please email me for a private appointment The Rady School of Management Lecture #9 Market Research – Actionable Marketing (wrap up from Lecture #8) Market Segmentation M, W MGT 103 Professor De Mill FIGURE 9-8 Wendy’s new products and innovations target specific market segments based on a customer’s gender, needs, or university affiliation. The Rady School of Management Lecture #8 Case Study #2 – Starbucks in Milan Wrap Up Marketing Research: Insights to Action MGT 103 M, W Professor De Mill Starbucks in Milan – Wrap up Key Talking Points……. 1. Identify the reason for conducting marketing research. 2. Describe the five-step marketing research approach that leads to marketing actions. 3. Explain how marketing uses secondary and primary data. Key Talking Points……. 4. The uses of observations, questionnaires, panels, experiments, and newer data collection methods. 5. Explain how data analytics and data mining lead to marketing actions. 6. Describe three approaches to developing a company’s sales forecast. HOLLYWOOD LOVES MARKETING RESEARCH! A Film Industry Secret: Research • Movie Title Testing • Concept Testing & Script Assessment • Test Screening • Tracking Studies • Social Listening TOP GUN 2 TRAILER FIGURE 8-1 Five-step marketing research approach leading to marketing actions STEP 1: DEFINE THE PROBLEM SET THE RESEARCH OBJECTIVES (1 of 2) Set the Research Objectives Have a Clear Research Purpose Types of Marketing Research: 1. Exploratory 2. Descriptive 3. Causal Identify Possible Marketing Action STEP 1: DEFINE THE PROBLEM SET THE RESEARCH OBJECTIVES (2 of 2) Measures of Success • Measure of Success: Playtime • Children Spend More Time Playing with New Design • Possible Marketing Actions • Introduce New Design • Drop Old Design STEP 2: DEVELOP THE RESEARCH PLAN DETERMINE HOW TO COLLECT DATA Constraints Identify Data Needed for Marketing Actions 1. Identify Data Needed 2. Determine How to Collect Data • Concepts – Ideas about Products • Methods – Approaches to Collect Data STEP 3: COLLECT RELEVANT INFORMATION Relevant Information for Rational, Informed Marketing Decision • Data • Secondary Data • Primary Data Source: U.S. Department of Commerce FIGURE 8-2 Types of marketing information Jump to Appendix 2 long image description SECONDARY DATA SOURCES Online Databases and Internet Resources for Marketers Sources of News and Articles: • LexisNexis -• CNBC -• Wall Street Journal -• Fox Business -Sources of Statistical and Financial Data: • FedStats -• Census Bureau -Portals and Search Engines: • USA.gov -• Google – STEP 3: COLLECT RELEVANT DATA SECONDARY DATA (5 of 5) Advantages: • Time Savings • Inexpensive Disadvantages: • Out of Date • Definitions/Categories Not Right • Not Specific Enough STEP 3: COLLECT RELEVANT DATA PRIMARY DATA—WATCHING PEOPLE (1 of 2) Observational Data Mechanical Methods • Nielsen’s People Meter • Nielsen’s TV Ratings ©CBS/Photofest STEP 3: COLLECT RELEVANT DATA PRIMARY DATA—WATCHING PEOPLE (2 of 2) Personal Methods: • Mystery Shopper • Observation • Ethnographic Research Neuromarketing Methods • Technologies Used to Study the Brain Top: ©Editorial Image, LLC; Bottom: ©Ronny Hartmann/picture-alliance/dpa/AP Images STEP 3: COLLECT RELEVANT DATA PRIMARY DATA—ASKING PEOPLE (1 of 3) Questionnaire Data Idea Generation Methods – Coming Up with Ideas • Individual Interviews • In-Depth Interviews STEP 3: COLLECT RELEVANT DATA PRIMARY DATA—ASKING PEOPLE (2 of 3) Idea Generation Methods – Coming Up with Ideas • Focus Groups • Informal Session of Customers Who Are Asked for Opinions • “The Next Big Thing” • Trend Hunting Trend Hunter 3:15 top ten ©Spencer Grant/PhotoEdit STEP 3: COLLECT RELEVANT DATA PRIMARY DATA—ASKING PEOPLE (3 of 3) Idea Evaluation Methods – Testing an Idea: • • • • • Personal Interview Surveys Telephone Interviews Mail Surveys Online (E-Mail/Internet) Surveys Mall Intercept Interview Surveys FIGURE 8-4 Different types of questions in a sample Wendy’s survey (Q1 – Q5) Open ended Closed ended Likert Scale Semantic Differential STEP 3: COLLECT RELEVANT DATA PRIMARY DATA—OTHER SOURCES (1 of 2) Primary Data – Other Sources: • Social Media Can Provide Ideas for New Products and Services • Use Social Media Listening Tools FIGURE 8-5 How marketing researchers and managers use information technology to turn information into action MAKING RESPONSIBLE DECISIONS NO MORE PERSONAL SECRETS: THE DOWNSIDE OF DATA MINING Data Mining Reveals Personal Information • Collected via Tracking Devices (Examples: Cookies and Apps) • Enables Personalization and Targeting ©Brent Jones STEP 3: COLLECT RELEVANT DATA ADVANTAGES/DISADVANTAGES OF PRIMARY DATA Advantages of Primary Data: • More Flexible • More Specific to the Problem Disadvantages of Primary Data: • Expensive • Time Consuming to Collect STEP 4: DEVELOP FINDINGS Marketing dashboards that present findings to Tony’s marketing manager that lead to recommendations and actions. STEP 5: TAKE MARKETING ACTIONS Make Action Recommendations Implement the Action Recommendations Evaluate the Results • Evaluate the Decision Itself • Evaluate the Decision Process Used SALES FORECASTING TECHNIQUES 1. Judgments of the Decision Maker: • Direct Forecast – best guess; used for new products • Lost-Horse Forecast – “where did we leave off?” 2. Surveys of Knowledgeable Groups: • Survey of Buyers’ Intentions Forecast • Salesforce Survey Forecast 3. Statistical Methods: • Trend Extrapolation: Extending a Pattern Observed in Past Data into the Future • Linear Trend Extrapolation: When the Pattern Is Described with a Straight Line Homework Assignment #2 – Due Monday, April 26th before class! • You are the Product Manager for brand new electric skateboard! Your company is targeting college campuses/college students as their Primary Customer Segment. • Develop a 10 question Primary Market Research Questionnaire that will help you to market to the needs of your target Customer Segment. You will be setting up a table-top booth on campus, outside of the Geisel Library. • Use Open Ended, Closed Ended, Likert, and Semantic Differential style questions in your survey. • Make is clear, clean, professional! This is your brand! • Review Chapter 8 carefully to help you to develop your Questionnaire. • Include a brief description of how you plan to attract attention to your booth and encourage students to complete the survey! • 1 to 1 & 1/2 -page Word or PDF document submission Announcements & Wednesday Assignment • Homework – Read Chapter #9 • Group Assignment - Business Plan Project. Be thinking about your “start-up” company idea • Office Hours Reminder - Mondays 2:30 – 3:30p ZOOM • Rady Labs……complete ASAP, don’t delay! The Rady School of Management Lecture #8 Case Study #2 – Starbucks in Milan Wrap Up Marketing Research: Insights to Action MGT 103 M, W Professor De Mill The Rady School of Management Lecture #7 Global Consumers and Markets Case Study #2 – Starbucks in Milan MGT103 M,W Fall ’21 De Mill Key Talking Points for Today…… 1. The nature and scope of world trade from a global perspective. 2. The major developments that have influenced world trade and global marketing. 3. Environmental forces that shape global marketing efforts. Key Talking Points for Today…… 4. Name and describe the alternative approaches companies use to enter global markets. 5. The distinction between standardization and customization when companies craft worldwide marketing programs. DYNAMICS OF WORLD TRADE (1 of 2) Global Perspective • U.S., China, Japan, West. Europe, Canada Account for Two-Thirds of World Trade • Products and Commodities: 80 Percent of World Trade, Services: 20 Percent • Exports and Imports Have Complementary Economic Flow • Trade Feedback Effect • Countertrade DYNAMICS OF WORLD TRADE (2 of 2) United States Perspective • • • • • U.S. Share of World Exports Has Decreased U.S. World Imports Have Increased Gross Domestic Product (GDP) Balance of Trade Largest Importers of U.S. Products: Canada, Mexico, China, Japan FIGURE 7-1 Leading countries in global merchandise trade in terms of imports (U.S.) and exports (China). MARKETING IN A DYNAMIC GLOBAL ECONOMY ECONOMIC PROTECTIONISM BY COUNTRIES Protectionism Tariffs Quota World Trade Organization (WTO) FIGURE 7-2 Protectionism hinders world trade when countries raise prices and limit supply through tariff and quota policies MARKETING IN A BORDERLESS ECONOMIC WORLD RISE OF ECONOMIC INTEGRATION European Union (EU) • 28 Countries Eliminated Barriers to Trade (750 Million Consumers) North American Free Trade Agreement (NAFTA) • Lifted Trade Barriers Between Canada, Mexico, and U.S. (475 Million Consumers) 46 Percent of U.S. Exports Are to Free Trade Partners FIGURE 7-3 The European Union in 2018 consists of 28 countries with about 750 million consumers. MARKETING IN A BORDERLESS ECONOMIC WORLD GLOBAL COMPETITION FOR GLOBAL CUSTOMERS (1 of 2) Global Competition • Firms Originate, Produce, and Market Products Worldwide Strategic Alliances Courtesy Mary Kay, Inc. FIGURE 7-A Global Companies and Marketing Strategy TYPE OF GLOBAL COMPANY TYPES OF MARKETING STRATEGY International Firm Extension of Home Marketing Strategy Multinational Firm Multi-domestic Marketing Strategy Transnational Firm Global Marketing Strategy MARKETING IN A BORDERLESS ECONOMIC WORLD GLOBAL CONSUMERS Global Consumers • Consumer Groups in Different Countries with Similar Needs • Ex: Middle-Class, Youth Market, Elite Segment, etc. • Companies Benefit from Similarities in Markets MARKETING MATTERS The Global Teenager—A Market of Voracious Consumers Global Market of Teens: • Exposure to TV, Movies, Travel, Social Media, and Global Advertising • Teens’ Rooms Look Similar, No Matter the Country • Teens Spend $820 Billion Annually for Common Products (Jeans, Video Games, etc.) • U.S. Trends Influence Attitudes and Purchase Behavior ©Kim Petersen/Alamy Stock Photo MARKETING IN A BORDERLESS ECONOMIC WORLD PREVALENCE OF ECONOMIC ESPIONAGE Economic Espionage Exists! • Clandestine Collection of Trade Secrets or Proprietary Information about Competitors • Costs U.S. Firms $400+ Billion/Year • 23 Nations Routinely Target U.S. Firms • Economic Espionage Act (1996) Makes Theft a Federal Crime A GLOBAL ENVIRONMENTAL SCAN CULTURAL DIVERSITY (1 of 3) Cross-Cultural Analysis • Study of Similarities and Differences Values • Preferable Modes of Conduct that Persist Over Time Customs • Considered Normal in a Country • Foreign Corrupt Practices Act (1977) ©CB2/ZOB/WENN/Newscom A GLOBAL ENVIRONMENTAL SCAN CULTURAL DIVERSITY (2 of 3) Cultural Symbols • Represent Ideas and Concepts in a Culture • Evoke Deep Feelings (first): ©Sylvain Sonnet/Photographer’s Choice RF/Getty Images; (second): ©Antonio M. Rosario/Getty Images COMPARING MARKET-ENTRY STRATEGIES ALTERNATIVE APPROACHES Options for Market Entry: 1. Exporting • Indirect Exporting • Direct Exporting 2. Licensing 3. Joint Venture 4. Direct Investment FIGURE 7-4 Alternative global market-entry strategies GLOBAL MARKET-ENTRY STRATEGIES LICENSING Licensing: • Offers Right to a Trademark, Patent, Trade Secret, or Intellectual Property for a Royalty or Fee • Advantages and Disadvantages? Franchising: • Fastest-growing Market-entry Strategy • Advantages and Disadvantages? ©China/Alamy Stock Photo GLOBAL MARKET-ENTRY STRATEGIES JOINT VENTURE Joint Venture • Sharing Ownership, Control, and Profits • Advantages and Disadvantages? Direct Investment • Biggest Commitment to Enter Global Market • Advantages and Disadvantages? FIGURE 7-5 Five product and promotion strategies for global marketing CRAFTING A WORLDWIDE MARKETING PROGRAM PRODUCT AND PROMOTION STRATEGIES (2 of 2) Possible Communication Strategies: • Identical Message around the World • Communication Adaptation: • Same Product but Different Advertising • Dual Adaptation • Modifying Both Products and Promotion Messages Nescafe China CRAFTING A WORLDWIDE MARKETING PROGRAM DISTRIBUTION AND PRICING STRATEGIES Distribution Is Critical in Global Marketing: • Availability and Quality of Retailers, Wholesalers, and Transportation Countries Impose Pricing Constraints: • Prices May Be Too High or Too Low • Dumping • Gray Market (Parallel Importing) Case Study #2 Starbucks Plans in Italy: Carrying Coal to Newcastle? Starbucks in Milan- Group Work • What is Starbucks strategy to adjust to the Italian market? • How does Starbucks pay homage to the strong expresso tradition in Italy? Why do they do this? • What products and services have been added compared to the U.S. Starbucks presence? Why? • What would your pricing strategy be? Why? • Describe the ideal customer demographic for the Starbucks Milan store? How would you reach them? Starbucks in Milan – Group Work Wednesday, homework……. • Chapter 8, Marketing: Research to Actions • Be think about what new product or service you would like to launch? Team Marketing Plan project to be assigned Monday, October 25th. • See you on Wednesday! The Rady School of Management Lecture #7 Global Consumers and Markets Case Study #2 – Starbucks in Milan MGT103 M,W Fall ’21 De Mill The Rady School of Management Lecture #6, Wrap up – Consumer Marketing Coppertone Organizations as Customers MGT 103 M,W F‘21 VIDEO CASE Coppertone 1. How understanding consumer behavior helped Coppertone grow in the United States and around the globe? 2. Describe the five-stage purchase decision process for a Coppertone customer. 3. What are the possible situational, psychological, and sociocultural influences on the Coppertone consumer purchase decision process? 4. What challenges does Coppertone face in the future? What actions would you recommend related to each challenge? COPPERTONE: CREATING THE LEADING SUN CARE BRAND BY UNDERSTANDING CONSUMERS Coppertone Video Case Key Talking Points….Organizational Buying 1. Distinguish among industrial, reseller, and government organizational markets. 2. Key characteristics of organizational buying that make it different from consumer buying. 3. Explain how buying centers and buying situations influence organizational purchasing. 4. Recognize the importance and nature of online buying in industrial, reseller, and government organizational markets. ORGANIZATIONAL BUYING IS MARKETING, TOO! PURCHASING PUBLICATION PAPER FOR JCPENNEY • JCPMedia: • Buys 100,000+ Tons of Paper per Year for Newspaper Inserts and Direct Mail • 10 Companies Around the World Supply the Paper • Sizable Revenue and Expense JCPenney Website Courtesy of JCPenney BUSINESS-TO-BUSINESS MARKETING AND ORGANIZATIONAL BUYERS Business-to-Business Marketing Organizational Buyers 1. Industrial Markets (Industrial Firms) 2. Reseller Markets (Resellers) • Wholesalers • Retailers 3. Government Markets (Government Agencies) NASA Courtesy of Lockheed Martin Company FIGURE 6-1 Key characteristics and dimensions of organizational buying behavior Jump to Appendix 1 long image description ORGANIZATIONAL BUYING DEMAND CHARACTERISTICS Derived Demand Size of Order or Purchase Number of Potential Buyers Organizational Buying Objectives • Profits • Women and Minority Suppliers and Vendors • Efficiency • Environment and Sustainability ©Karie Hamilton/Bloomberg via Getty Images CHARACTERISTICS OF ORGANIZATIONAL BUYING ORGANIZATIONAL BUYING CRITERIA Organizational Buying Criteria • • • • • • • Price Ability to Meet Specs Ability to Meet Schedules Technical Capacity Past Performance Warranties Production Capacity Supplier Development FIGURE 6-2 Product and supplier selection criteria for buying machine vision equipment emphasize factors other than price. Machine vision inspection camera used in auto industry to perform a gear inspection Percentage of machine vision buyers citing individual selection criteria as important when making supplier decision Photo: Courtesy of © Keyence Corporation of America CHARACTERISTICS OF ORGANIZATIONAL BUYING BUYER-SELLER RELATIONSHIPS AND SUPPLY PARTNERSHIPS Reciprocity Supply Partnership Sustainable Procurement • To Benefit the Environment MARKETING MATTERS Milsco Manufacturing—Delivering a Great Ride for Customers’ Seats Milsco Manufacturing: • 3 Million Seats • 200 Unique Variations • 84-Year Partnership with Harley-Davidson • 100 New Products perYear to Meet Customer Requirements Milsco Website . ©Lluis Gene/AFP/Getty Images MAKING RESPONSIBLE DECISIONS Sustainable Procurement for Sustainable Growth Starbucks Is a Leader in Sustainable Procurement: • Integrates Environmental Considerations into the Organization’s Buying Process • Coffee Growers in 20 Countries • Fair Price for Beans • Ecologically Sound Growing Starbucks Sustainability ©Jewel Samad/AFP/Getty Images ORGANIZATIONAL BUYING FUNCTION AND PROCESS AND THE BUYING CENTER Organizational Buying Behavior Buying Function in Organization Responsible for: • • • • Selection and Purchase of Products For Organization’s Use or Resale Formal Bids Purchasing Contract Awards FIGURE 6-3 Comparing the stages in a consumer and organizational purchase decision process. Jump to Appendix 4 long image description ORGANIZATIONAL BUYING PROCESS AND THE BUYING CENTER Buying Center Buying Committee People in the Buying Center Roles in the Buying Center • • • • • Users Influencers Buyers Deciders Gatekeepers ©monkeybusinessimages/iStock/Getty Images CHARACTERISTICS OF ORGANIZATIONAL BUYING THE BUYING CENTER Number of People in Buying Center Depends on the Buying Situation Buy Classes • New Buy • Straight Rebuy • Modified Rebuy FIGURE 6-4 The buying situation affects buying center behavior in different ways. ONLINE BUYING IN BUSINESS-TO-BUSINESS MARKETING Prominence of Online Buying in Organizational Markets • Provides Timely Information E-marketplaces Online Auctions in Organizational Markets • Traditional Auction • Reverse Auction FIGURE 6-5 Buyer and seller participants and price behavior differ by type of online auction. MARKETING MATTERS eBay Means Business for Entrepreneurs ebay Offers Trading Platform for Millions of Small Businesses • 81 Percent of Small Businesses Sell to 5 or More Foreign Countries • 82 Percent Report It Helped Business Grow • 78 Percent Reduced Costs • 79 Percent Became More Profitable eBay Website ©Grzegorz Knec/Alamy Stock Photo VIDEO CASE Key Points to Observe…… 1. What is the role of the buying center at Trek? Who is likely to comprise the buying center in the decision to select a new supplier at Trek? 2. What selection criteria does Trek utilize when it selects a new supplier or evaluates an existing supplier? 3. How has Trek’s interest in the environmental impact of its business influenced its organizational buying process? 4. Provide an example of each of the three buying situations—straight rebuy, modified rebuy, and new buy—at Trek. VIDEO CASE TREK: BUILDING BETTER BIKES THROUGH ORGANIZATIONAL BUYING Trek Video Case ©Jean Christophe Bott/Keystone/AP Images Reading Assignments for Monday…. • Read Chapter 7 • Case Study #2 ”Starbucks Plans in Italy” Cognella Course Reader (Redshelf) The Rady School of Management Lecture #6, Wrap up – Consumer Marketing Coppertone Organizations as Customers MGT 103 M,W F‘21 The Rady School of Management Lecture #5 Consumer Behavior MGT 103 Product Marketing & Management M,W Professor Burt De Mill Announcements • Rady Labs- don’t wait until the busy end of quarter period Key Points for Today’s Lecture 1. Review the stages in the consumer purchase decision process. 2. Distinguish among three variations of the consumer purchase decision process: extended, limited, and routine problem solving. 3. Identify the major psychological influences on consumer behavior. 4. Identify the major sociocultural influences on consumer behavior. FIGURE 5-1 The purchase decision process consists of five stages. CONSUMER PURCHASE DECISION PROCESS PROBLEM RECOGNITION Purchase Decision Process Problem Recognition Starts with the Difference Between: • Consumer’s Ideal Situation • Consumer’s Actual Situation CONSUMER PURCHASE DECISION PROCESS INFORMATION SEARCH Information Search: Seeking Value • Internal Search • External Search • Personal Sources • Public Sources • Marketer-Dominated Sources FIGURE 5-2 Common Consumer Selection Criteria for the Evaluation of Smartphones CONSUMER PURCHASE DECISION PROCESS ALTERNATIVE EVALUATION Alternative Evaluation Stage: 1. 2. 3. Suggests Criteria for Purchase Yields Brands that Meet Criteria Develops Value Perception Evaluative Criteria Consideration Set CONSUMER PURCHASE DECISION PROCESS PURCHASE DECISION Purchase Decision: Buying Value Make the Purchase Decision by: 1. 2. Decide from Whom to Buy Decide When to Buy ©Seb Oliver/Cultura/Getty Images CONSUMER PURCHASE DECISION PROCESS POSTPURCHASE BEHAVIOR Post purchase Behavior: Realizing Value Customer Satisfaction Studies • Satisfied Customers Tell 3 People • Dissatisfied Customers Tell 9 People! Cognitive Dissonance • ”Buyers Remorse” • Use post sale reinforcement to alleviate MARKETING MATTERS How Much Is a Satisfied Customer Worth? Customer Satisfaction Underlies the Marketing Concept How Much is it Worth? • Frito-Lay: Average Consumer Spends $52.50 per year • Exxon: $500 per year for Gas • Kleenex: $994 over 60 Years • Ford: Increasing Customer Retention from 60 percent to 80 percent Is Worth $100 Million in Profit per Percentage Point Research Shows 5 Percent Increase in Retention can Increase Profits by 70-80 Percent ©DWImages Motoring/Alamy Stock Photo CONSUMER PURCHASE DECISION PROCESS CONSUMER INVOLVEMENT AND PROBLEM SOLVING Consumer Involvement Affects Problem Solving Involvement • Extended Problem Solving (High Involvement) • Limited Problem Solving (Medium Involvement) • Routine Problem Solving (Low Involvement) FIGURE 5-3 Comparison of problem-solving variations: extended, limited, and routine. SHREDDED WHEAT What strategy is used to reduce perceived risk? Why Do Post Cereals Display Heart-Healthy Claims on Packaging? ©McGraw-Hill Education/Mike Hruby, photographer CONSUMER PURCHASE DECISION PROCESS CONSUMER INVOLVEMENT & MARKETING STRATEGY Low Involvement • • • • Common Products Maintain Product Quality Avoid Stockouts Reduce Cognitive Dissonance with Ads High Involvement • Consumers Seek Product Information • Use Comparative Ads • Use Personal Selling CONSUMER PURCHASE DECISION PROCESS SITUATIONAL INFLUENCES Situational Influences Affect Purchase Decisions Situational Influences 1. 2. 3. 4. 5. Purchase Task Social Surroundings Physical Surroundings Temporal Effects Antecedent States FIGURE 5-4 Apple Consumer Journey Map and Consumer Touchpoints for Electronic Devices Sold in Apple Stores FIGURE 5-5 Influences on the consumer purchase decision process from both internal and external sources. FIGURE 5-6 Maslow’s Hierarchy of needs - why do we buy? PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR PERSONALITY Personality Self-Concept Key Traits – Enduring Characteristics of a Person: • • • • Assertiveness Extroversion Compliance Dominance, etc. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR CONSUMER PERCEPTION (2 of 2) Strategies to Reduce Perceived Risk • • • • • Obtain Seals of Approval Secure Endorsements Provide Free Trials/Samples Give Extensive Instructions Provide Warranties/Guarantees ©Whitebox Media/Alamy Stock Photo PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR CONSUMER VALUES, BELIEFS, AND ATTITUDES (1 of 2) Attitude Formation – Learned Response to Objects in Consistent Way (Favorable or Unfavorable) • Attitude • Values Affect Attitudes • Beliefs PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR CONSUMER VALUES, BELIEFS, AND ATTITUDES (2 of 2) Marketers Use Three Approaches to Change Attitudes: 1. Change Beliefs About a Brand’s Attributes 2. Change Perceived Importance of Attributes! 3. Add New Product Attributes PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR CONSUMER LIFESTYLE Lifestyle • How People Spend Their Time and Resources • Lifestyle Analysis Useful for Targeting Consumers SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR PERSONAL INFLUENCE Consumers’ Purchases Often Influenced by Others Opinion Leaders Word of Mouth • Buzz Can Be Either Positive or Negative Dove Video SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR REFERENCE GROUPS Reference Groups • Associative Group • Brand Community • Aspiration Group • Dissociative Group ©Joseph Eid/AFP/Getty Images VIDEO CASE – Key Considerations Coppertone 1. How has knowledge of consumer behavior helped Coppertone grow in the United States and around the globe? 2. Describe the five-stage purchase decision process for a Coppertone customer. 3. What are the possible situational, psychological, and sociocultural influences on the Coppertone consumer purchase decision process? 4. What specific marketing activities does Coppertone utilize to help Coppertone grow in the marketplace? COPPERTONE: CREATING THE LEADING SUN CARE BRAND BY UNDERSTANDING CONSUMERS Coppertone Video Case Reading for Wednesday October 13 • Chapter #6, Organizations as Customers • Office Hour today 2:30 – 3:30 p.m. via ZOOM • See you Wednesday! The Rady School of Management Lecture #5 Consumer Behavior MGT 103 Product Marketing & Management M,W Professor Burt De Mill MARKETING MATTERS BzzAgent—The Buzz Experience • Word-of-Mouth Experiences Are Powerful • Worldwide Volunteer Army of 1,000,000+ • Captures Honest Word-of-Mouth • “Agent” Database of Customers Receive Sample Product and Manual for Creating Buzz • Agents Keep Products and Earn Points BzzAgent ©BzzAgent FIGURE 5-7 VALS™ Identifies 8 Consumer Segments Consumers with Abundant Resources Are Near Top of Framework Consumers with Minimal Resources Are at the Bottom of Framework Consumer Groups within a Motivation Can Be Targeted Together. Ideals Motivated Groups: • Thinkers, Believers Achievement Motivated Groups: • Achievers, Strivers Self-Expression Motivated Groups: • Experiencers, Makers High and Low Resource Groups: • Innovators, Survivors © 2017 by Strategic Business Insights. All Rights Reserved. www.strategicbusinessinsights.com/vals VALS Types The Rady School of Management Lecture #4 Ethical & Social Responsibility in Marketing “Inclusive Leadership: Mary Barra” MGT 103 Product Marketing & Management M,W Professor Burt De Mill Key Points to cover……….. 1. Difference between legal and ethical behavior in marketing. 2. Identify factors that influence ethical and unethical marketing decisions. 3. Describe the different concepts of social responsibility. 4. Recognize unethical and socially irresponsible consumer behavior. ANHEUSER-BUSCH: BECOMING THE BEST BEER COMPANY IN A BETTER WORLD Alcohol Responsibility • • • • • Responsible Drinking Campaign Online Campaign Environmental Preservation Inside and Outside Breweries Reduced Water Use and Increased Recycling Rate Responsibility Matters Ad ©Richard Ulreich/ZUMA Press/Newscom FIGURE 4-1 Four ways to classify marketing decisions according to ethical and legal relationships NATURE AND SIGNIFICANCE OF MARKETING ETHICS (2 of 2) Which Cell in Figure 4.1 Best Fits These Situations? 1. Physicians Agree to Establish Fee Schedule for Health Services. 2. Computer Program for Car Dealers Omits Key Information for Buyers. 3. U.S. Tobacco Companies Advocate Free Trade to China; China Legally Restricts Tobacco Imports. 4. College Students Record Movies at Theater, then Upload to Internet FIGURE 4-2 A framework for understanding ethical behavior Jump to Appendix 1 long image description ETHICAL MARKETING BEHAVIOR SOCIETAL CULTURE AND NORMS Culture • Values, Ideas, and Attitudes That Are Learned and Shared Societal Values and Attitudes • Are Relative • Affect Ethical and Legal Relationships ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES (1 of 4) Business Culture Ethics of Exchange Caveat Emptor Consumer Bill of Rights (1962) • The Right: To Safety To Choose To Be Informed To Be Heard ©Lisa F. Young/iStock/Getty Images ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES (2 of 4) The Right to Safety • Consumer Product Safety Commission Consumer Product Safety Commission The Right to Be Informed • Federal Trade Commission (FTC) Federal Trade Commission ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES (4 of 4) Ethics of Competition Most Common Unethical Behavior: • Economic Espionage • Corruption • Bribes • Kickbacks MAKING RESPONSIBLE DECISIONS CORPORATE CONSCIENCE IN THE COLA WAR Situation: • You Are an Executive at Pepsi • Coke Employee Offers to Sell the Marketing Plan and Sample of New Product. • What Would You Do? A Survey of Marketing and Ad Execs had 67% Say They Would Buy ©Cliff Tew FIGURE 4-3 American Marketing Association Statement of Ethics (Abridged) General Norms 1. Marketers should do no harm. 2. Marketers must foster trust in the marketing system. 3. Marketers must embrace, communicate and practice the fundamental ethical values. Ethical Values 1. Honesty – to be truthful and forthright in our dealings with customers and stakeholders. 2. Responsibility – to accept the consequences of our marketing decisions and strategies. 3. Fairness – to try to balance justly the needs of the buyer with the interests of the seller. 4. Respect – to acknowledge the basic human dignity of all stakeholders. 5. Openness – to create transparency in our marketing operations. 6. Citizenship – to fulfill the economic, legal, philanthropic and societal responsibilities that serve stakeholders in a strategic manner. FIGURE 4-4 Three concepts of social responsibility MARKETING MATTERS Will Consumers Switch Brands for a Cause? Yes, if … Cause Marketing Benefits Companies as well as Causes • Estimated $12 Billion Raised in Cause Marketing in 2016 • 85% of U.S. Consumers Have More Favorable Opinion of Companies that Support Causes • 80% of Consumers will Switch to Brand that Supports a Cause FIGURE 1 Who should take the lead in addressing environmental issues? Case Study Review Mary Bara, General Motors GM History Ignition switch failure GM Leadership Study – Group Work • Old GM culture vs. “new” GM culture • What behaviors & work experience contributed to Marry Barra’s success? Why? • What key factors contributed to GM’s poor performance up to the 2009 bankruptcy? • How did Barra handle the ignition switch crisis? • Explain “the GM nod”, how does this contribute to management failures • How does GM prosper moving forward? Homework Assignment • Tesla, SWOT Analysis – 50-point value – You are the Marketing Manager responsible for the Powerwall product line at Tesla • https://www.tesla.com/powerwall – Present current strengths, weaknesses, opportunities and threats. – Six bullet points per quadrant. Maximum of 2 sentences per point. – Opportunities should focus on new products, services & markets as well as external forces considering current and future competition – Due date – Monday, April 12th before the start of class. This is an individual assignment; not group work. Announcements/Assignments for next week…… • Read Chapter 5 Consumer Behavior • Office hours via ZOOM Monday, 2:30 to 3:30 p.m. • See you on next week! The Rady School of Management Lecture #4 Ethical & Social Responsibility in Marketing “Inclusive Leadership: Mary Barra” MGT 103 Product Marketing & Management M,W Professor Burt De Mill The Rady School of Management Lecture #3 Scanning the Marketing Environment External Forces MGT 103 Product Marketing & Management M,W Professor Burt De Mill Clean up from Wednesday • • • • Implementing & Measuring Marketing success Gantt Charts Who, what, when, where? Selfridges – “How do they survive in an eCommerce World?” THE STRATEGIC MARKETING PROCESS THE IMPLEMENTATION PHASE (2 of 2) Defining Precise Tasks, Responsibilities, and Deadlines • Action Item List: • • • • The Task The Person Responsible for Task Date to Finish Task The Deliverable • Gantt Chart – Graph of a Program Schedule FIGURE 2-10 Gantt chart for scheduling a term project that distinguishes sequential and concurrent tasks. THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE (3 of 5) Step 1: Situation (SWOT) Analysis SWOT Analysis Actions – Build on a Strength – Correct a Weakness – Exploit an Opportunity – Avoid a Disaster-Laden Threat SWOT Analysis – Selfridges – Group Work Location of Factor Type of Factor Unfavorable Strengths Weaknesses Opportunities Threats external Internal Favorable Key Talking Points for today…. (1 of 2) 1. How environmental scanning provides information about social, economic, technological, competitive, and regulatory forces. 2. Social forces such as demographics and culture can have an impact on marketing strategy. 3. Discuss how economic forces such as macroeconomic conditions and consumer income affect marketing. Key Talking Points for today…. (2 of 2) 4. Describe how technological changes can affect marketing. 5. Discuss the forms of competition that exist in a market and the key components of competition. 6. Explain the major legislation that ensures competition and regulates the elements of the marketing mix. ENVIRONMENTAL SCANNING (1 of 2) Environmental Scanning What Trends Might Affect Marketing in the Future? • Examples: • Brand Advocates • Virtual Reality • Augmented Reality • “Gig” Economy ENVIRONMENTAL SCANNING (2 of 2) Ex: Coffee Industry • Regular Drinkers Declining • “Gourmet” Drinkers Increasing • Online Ordering • Cold Brew Coffee • Roastery Tasting Rooms • Coffee Bars ©Starbucks/Cover Images/Newscom FIGURE 3-1 Environmental forces affect the organization, its suppliers, and its customers. SOCIAL FORCES Population by Age Group (Thousands) What Are the Implications of Changes in World Population? Source: United Nations, Department of Economic and Social Affairs, Population Division SOCIAL FORCES GENERATIONAL COHORTS Baby Boomers: 1946 to 1964 • Retiring at Rate of 10,000 Every 24 Hours • All Will Be 65+ by 2030 Generation X: 1965 to 1976 • 50 Million People Generation Y (Millennials): 1977 to 1994 • 75 Million People Generation Z: 1995 to 2010 • Broadest Diversity MAKING RESPONSIBLE DECISIONS PROFITS AND PURPOSE – MILLENNIAL STYLE Expect Brands and Companies to Embrace Social Change, Corporate Social Responsibility, and Environmental Stewardship Net Impact – a Nonprofit for Students Who Want to “Use Business to Improve the World” Net Impact Website SOCIAL FORCES THE AMERICAN HOUSEHOLD AND POPULATION SHIFTS American Household Structure Has Changed Regional Shift Toward Southern and Western States Shifting Within States (30% in Cities, 50% in Suburbs, 20% in Rural) • Metropolitan Statistical Area: 50,000+ People • Micropolitan Statistical Area: 10,000 to 50,000 People SOCIAL FORCES DEMOGRAPHICS—RACIAL AND ETHNIC DIVERSITY Composition Trends • African Americans • Hispanics • Asian Americans Multicultural Marketing U.S. Census Bureau ©products and brands/Alamy Stock Photo SOCIAL FORCES CULTURE—CHANGING ATTITUDES OF MEN AND WOMEN Notable Cultural Changes in Attitudes and Roles of Men and Women in the Marketplace • Careers • Sports • Technology SOCIAL FORCES CULTURE—CHANGING VALUES Culture: • Values, Ideas, and Attitudes Shared by Members of a Group • Values May Change Over Time Value Consciousness Colgate Super Bowl Ad ©Ellen Isaacs/Alamy Stock Photo ECONOMIC FORCES MACROECONOMIC CONDITIONS Economy – Income, Expenditures, Resources Macroeconomics – Performance of the Economy based on Indicators (Example: GDP, Inflation, Deflation, etc.) • Inflation – Production Costs and Prices Increase • Recession – Periods of Declining Economic Activity FIGURE 3-4 The Index of Consumer Sentiment (ICS) Closely Related to Economic Conditions ECONOMIC FORCES CONSUMER INCOME Microeconomics – Ability of Consumers to Buy • Gross Income • Disposable Income • Discretionary Income Courtesy of Cunard Line MARKETING INSIGHTS ABOUT ME American FactFinder: Economic Information Marketers Use Environmental Information to Better Understand Consumers • Environmental Scan to Compare Data About a Segment • What Does Your Hometown Look Like? Fact Finder TECHNOLOGICAL FORCES TECHNOLOGY OF TOMORROW Technology • • • • Artificial Intelligence Capabilities Automation (Drones, Cars, Robots, etc.) Internet of Things (IoT) Wearable Technology TECHNOLOGICAL FORCES TECHNOLOGY’S IMPACT ON CUSTOMER VALUE Impact on Customer Value: • Plummeting Costs • New Focus on Quality, Service, Relationships • Thousands of New Products • Changes Production of Existing Products • Recycling ©dpa picture alliance/Alamy Stock Photo TECHNOLOGICAL FORCES TECHNOLOGY ENABLES DATA ANALYTICS Marketspace Electronic Commerce Internet of Things COMPETITIVE FORCES ALTERNATIVE FORMS OF COMPETITION Competition • Pure Competition – Many Sellers “price takers” • Monopolistic Competition – Many Sellers With Substitutable Products • Oligopoly – Few Sellers • Pure Monopoly – Only One Seller REGULATORY FORCES (1 of 2) PRODUCT-RELATED LEGISLATION Product-Related Legislation: • Patent Law • Copyright Law • Digital Millennium Copyright Act (1998) • Infant Formula Act (1980) • Nutritional Labeling and Education Act (1990) • Fair Packaging and Labeling Act (1966) • Child Protection Act (1966) • Consumer Product Safety Act (1972) REGULATORY FORCES PRICING-RELATED LEGISLATION Pricing-Related Legislation: • Price Fixing – Illegal • Price Discounting – Certain Forms Are Allowed MARKETING MATTERS Does Protecting Privacy Hurt the Web? Many Consumers Are Unaware that Their Actions Are Tracked to Create Profile of Their Interests (Online Behavioral Targeting) Advertisers Match Advertising Just for You FTC Suggests “Do Not Track Option” Is Legislation Needed? FTC Privacy Website Announcements/Reading Assignments……… • Chapter #4 • Review Case Study #1, Mary Barra @ GM • Office hours today at 2:30 – 3:30 p.m. via ZOOM • See you on Wednesday! The Rady School of Management Lecture #3 Scanning the Marketing Environment External Forces MGT 103 Product Marketing & Management M,W Professor Burt De Mill VIDEO CASE GEEK SQUAD: A NEW BUSINESS FOR A NEW ENVIRONMENT Geek Squad Video Case VIDEO CASE Geek Squad at Best Buy 1. What are the key environmental forces that created an opportunity for Robert Stephens to start the Geek Squad? 2. What changes in the purchasing patterns consumers made the acquisition of Geek Squad particularly important for Best Buy? 3. Based on the case information and what you know about consumer electronics, conduct an environmental scan for Geek Squad to identify key trends. For each of the five environmental forces (social, economic, technological, competitive, and regulatory), identify trends likely to influence Geek Squad in the near future. 4. What promotional activities would you recommend to encourage consumers who currently use independent installers to switch to Geek Squad? The Rady School of Management MGT 103 Lecture #2 Organization & Strategy Marketing Plans Spring ‘21 M, W Designing a Better Candy Bar Designing a Better Candy Bar Example: Ghirardelli Chocolate Candy Bar Exercise • Sell me on your Candy/Snack bar!! 3M’S STRATEGY AND MARKETING PROGRAM DISCOVERING AND SATISFYING STUDENT STUDY NEEDS (1 of 2) • Move from Ideas to a Marketable Highlighter Product • Add the Post-it® Flag Pen • Develop a Marketing Program for the Post-it® Flag Highlighter and Pen 3M Post-it Flag Highlighter ©McGraw-Hill Education/Mike Hruby, photographer FIGURE 1-4 Marketing programs for two new 3M Post-it® brand products targeted at college students and office workers. Key Topics for Today – Lecture #2 1. Three kinds of organizations and the three levels of strategy in them. 2. Core values, Mission, Organizational culture, Business, and Goals. 3. Marketing Dashboards and Marketing Metrics. 4. Discuss how an organization assesses Key Topics for Today – Lecture #2 (cont.) 5. The three steps of the planning phase of the strategic marketing process. 6. Describe the four components of the implementation phase of the strategic marketing process. 7. Discuss how managers identify and act on deviations from plans. BEN & JERRY ON A MISSION: MAKE FANTASTIC, SUSTAINABLE, WORLD-CHANGING ICE CREAM Mission: Product, Economic, Social Free Cone Day Fair trade B-Corp Certification PartnerShop Program Ben & Jerry’s Website © Rafael Ben-Ari/Alamy TODAY’S ORGANIZATIONS KINDS OF ORGANIZATIONS Organization Offerings 1. For-Profit Organization (Business Firm) 2. Nonprofit Organization 3. Government Agency 4. Industry (trade association) © Rafael Ben-Ari/Alamy MAKING RESPONSIBLE DECISIONS Social Entrepreneurs Are Creating New Types of Organizations to Pursue Social Goals Social Entrepreneurship to address important social needs and issues Teach For America – 10,000 members teach 750,000 students each year FIGURE 2-1 The board of directors oversees the three levels of strategy in organizations: corporate, business unit, and functional. TODAY’S ORGANIZATIONS STRATEGY AND ORGANIZATIONAL STRUCTURE (1 of 2) Can’t Be “All Things to All People” Strategy Corporate Level Chief Marketing Officer (CMO) Strategic Business Unit (SBU) Level TODAY’S ORGANIZATIONS STRATEGY AND ORGANIZATIONAL STRUCTURE (2 of 2) • Functional Level examples: shoe division, iPhone • Department Level examples: finance, sales • Cross-Functional Teams examples: finance, marketing, sales – all working together to launch a new products FIGURE 2-2 Visionary organizations use key elements to (1) establish a foundation and (2) set a direction using (3) strategies that enable them to develop and market their products successfully. STRATEGY IN VISIONARY ORGANIZATIONS ORGANIZATIONAL FOUNDATION (WHY) Core Values • Stakeholders Mission or Vision • Mission Statement Organizational Culture Nike STRATEGY IN VISIONARY ORGANIZATIONS ORGANIZATIONAL DIRECTION (WHAT) (2 of 2) Goals or Objectives • Profit • Sales (dollars or units) • Market Share • Quality • Customer Satisfaction • Employee Welfare • Social Responsibility • Efficiency (nonprofit organizations) STRATEGY IN VISIONARY ORGANIZATIONS ORGANIZATIONAL STRATEGIES (HOW) Variation by Level • Corporate • SBU • Functional Variation by Product (or Offering) • Product • Service • Idea STRATEGY IN VISIONARY ORGANIZATIONS TRACKING STRATEGIC PERFORMANCE WITH MARKETING ANALYTICS Marketing Dashboard Marketing Metric Data Visualization APPLYING MARKETING METRICS How Well Is Ben & Jerry’s Doing? Dollar Sales and Dollar Market Share • Dollar Sales ($) = Average Price × Quantity Sold • Dollar Market Share (%) = Ben & Jerry’s Sales ($) ÷ Total Industry Sales ($) SETTING STRATEGIC DIRECTIONS A LOOK AROUND: WHERE ARE WE NOW? Competencies • Competitive Advantage: “why are we better?” • Customers: who are they, what does my ideal customer look like?” • Competitors: “who are they? What is their message? Where are they strong/weak?” SETTING STRATEGIC DIRECTIONS WHERE DO WE WANT TO GO? (1) Business Portfolio Analysis (BCG Matrix) 1. Question Marks: • Low Share of High-Growth Market 2. Stars: • High Share of High-Growth Markets 3. Cash Cows: • Generates Large Amounts of Cash 4. Dogs: • Low Share of Slow-Growth Markets FIGURE 2-4 BCG business portfolio analysis for Apple’s consumer SBUs Apple’s Website All product photos: Source: Apple Inc. SETTING STRATEGIC DIRECTIONS WHERE DO WE WANT TO GO? (2) Diversification Analysis • Market Penetration: • Increase Sales of Current Product in Current Markets • Market Development: • Sell Current Products to New Markets • Product Development: • Sell New Products to Current Markets • Diversification: • Develop New Products to Sell in New Markets FIGURE 2-5 Four market-product strategies: alternative ways to expand sales revenues for Ben & Jerry’s using diversification analysis. THE STRATEGIC MARKETING PROCESS Strategic Marketing Process 1. How do we allocate our resources to get to where we want to go? 2. How do we convert our plans into actions? 3. How do our results compare with our plans and do deviations require new plans? FIGURE 2-6 The strategic marketing process has three phases: planning, implementation, and evaluation. THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE (1 of 5) Step 1: Situation (SWOT) Analysis Situation Analysis SWOT Analysis • Strengths • Weaknesses • Opportunities • Threats THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE (2 of 5) Step 1: Situation (SWOT) Analysis SWOT Analysis Study • Identify Industry Trends • Analyze Competitors • Assess the Organization • Research Present and Prospective Customers FIGURE 2-7 Ben & Jerry’s SWOT analysis that serves as the basis for management actions regarding growth. THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE (3 of 5) Step 1: Situation (SWOT) Analysis SWOT Analysis Actions – Build on a Strength – Correct a Weakness – Exploit an Opportunity – Avoid a Disaster-Laden Threat THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE (4 of 5) Step 2: Market-Product Focus and Goal Setting Market Segmentation Points of Difference Who is my “perfect” customer? Buyer persona Why am I better, faster, cheaper? VALUE THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE (5 of 5) Step 3: Marketing Program • • • • Product Strategy Price Strategy Promotion Strategy Place (Distribution) Strategy FIGURE 2-8 The four Ps elements of the marketing mix must be blended to produce a cohesive marketing program. The invention of the modern “Department Store” Selfridges, London Announcements, Reading assignments for Monday class • Textbook - Chapter 3 • Visit http://www.selfridges.com/US/en/ to prepare for in class exercise • Office Hours on Mondays, 2:30 – 3:30 p.m. via ZOOM The Rady School of Management MGT 103 Lecture #2 Organization & Strategy Marketing Plans Fall ‘21 M, W Teach for America FIGURE 2-9 Organization of a typical manufacturing firm, showing a breakdown of the marketing department. STRATEGY IN VISIONARY ORGANIZATIONS ORGANIZATIONAL DIRECTION (WHAT) (1 of 2) Business • What do we do? • What business are we really in? Business Model © Digital Vision; Source: United Parcel Service of America, Inc. The Rady School of Management WELCOME ! MGT 103 Product Marketing & Management Mon. & Wed. Fall 2021 Professor Burt De Mill GROUND RULES 1. Have Fun ! (Marketing is fun…but I’m biased) 2. Marketing is a contact sport. Lectures are best enjoyed live 3. Engage – challenge yourself, your classmates, AND the Professor 4. Be respectful, constructive 5. Review course syllabus carefully Our unique Fall 2021 Quarter! • ZOOM proficiency is key! • Decide on your Track – A. Live, in class attendance. Cameras ON! – B. Asynchronous Learning. Participate via Media Gallery lecture posting • Lectures will be recorded, posted in Canvas in the “Media Gallery” section • Please add your name to the “Asynchronous Learning” Group in People/Groups in Canvas if you are not attending lectures live for the duration of the course • All others are expected to attend live, cameras on. 12hour notice if ill/emergency occurs to avoid participation deducts. Your MGT 103 Goals? What would you like to get from MGT 103? What are your favorite companies, brands? Key Topics for Today - Lecture #1 1. Define marketing and identify the diverse factors influencing marketing actions. 2. Explain how marketing discovers and satisfies consumer needs. 3. Distinguish between marketing mix factors and environmental forces. 4. Explain how organizations build strong customer relationships and customer value through marketing. 5. Describe how today’s customer relationship era differs from prior eras. WHAT IS MARKETING? (1 of 2) What Is Marketing? • You Are a Marketing Expert Already • Involved in Thousands of Buying Decisions • Involved in Some Selling Decisions • Marketing Is NOT Easy Many try, few excel! ©Patrick T. Fallon/Bloomberg via Getty Images FIGURE 1-1 The see-if-you’re-really-a-marketingexpert test 1. What is the name of Pepsi’s most recent entry into the mid-calorie market for cola flavored soft drinks? (a) Pepsi XL, (b) Pepsi Edge (c) Pepsi Next, (d) Pepsi True. 2. True or False. The 60-year lifetime value of a loyal Kleenex customer is $994. 3. To be socially responsible, Patagonia recycles which of the following to produce many of its products? (a) tires, (b) paper, (c) plastic bottles. WHAT IS MARKETING? (2 of 2) Marketing and Your Career • Goal is to “Do Marketing!” • Small Businesses Offer Marketing Careers You Too Could Start a Successful Business! ©Reuters/Alamy Stock Photo WHAT IS MARKETING? DELIVERING VALUE TO CUSTOMERS Marketing Seeks to: • Discover Needs and Wants of Customers • Satisfy Them Exchange • Money for goods and services WHAT IS MARKETING? REQUIREMENTS FOR MARKETING TO OCCUR 1. 2. 3. 4. Two+ Parties with Unsatisfied Needs A Desire and Ability to Be Satisfied A Way for the Parties to Communicate Something to Exchange WHAT IS MARKETING? REQUIREMENTS FOR MARKETING TO OCCUR FIGURE 1-2 A marketing department relates to many people, organizations, and environmental forces. HOW MARKETING DISCOVERS CONSUMER NEEDS THE CHALLENGE: NEW PRODUCTS Consumers May Not Know or Cannot Describe What They Need or Want Most New Products Fail The Challenge: • “Focus on the Consumer Benefit” • “Learn From Past Mistakes” Wearable Computer? What “benefits” and what “showstoppers”? Mid-Calorie Soda Pepsi True Ad Automobile Subscription Service Wearable Computer Volvo Google Glass Top: ©Victor Virgile/Gamma-Rapho via Getty Images; Bottom: ©Consumer Trends/Alamy Stock Photo Google Glass winner or loser? HOW MARKETING DISCOVERS CONSUMER NEEDS NEEDS vs. WANTS • Needs • Wants • Does Marketing Persuade People to Buy the “wrong” things? FIGURE 1-3 Marketing seeks to discover consumer needs through research and then satisfy them with a marketing program. HOW MARKETING SATISFIES CONSUMER NEEDS THE FOUR Ps Target Market The 4 Ps: Controllable Marketing Mix Factors • • • • Product Promotion Price Place HOW MARKETING DISCOVERS CONSUMER NEEDS ENVIRONMENTAL FORCES Customer Value Proposition Uncontrollable Environmental Forces • • • • • Social Competitive Economic Regulatory Technological ©Luke MacGregor/Bloomberg via Getty Images THE MARKETING PROGRAM HOW CUSTOMER RELATIONSHIPS ARE BUILT Customer Value Customer Value Strategies • Best Price: Target • Best Service: Nordstrom • Best Product: Starbucks ©Studio Works/Alamy Stock Photo What is their message? Target audience? Value? THE MARKETING PROGRAM RELATIONSHIP MARKETING Relationship Marketing • Easy to Understand • Hard to Do Marketing Program Market Segments ©Paul Hilton/Bloomberg via Getty Images 3M’S STRATEGY AND MARKETING PROGRAM DISCOVERING AND SATISFYING STUDENT STUDY NEEDS (1 of 2) • Move from Ideas to a Marketable Highlighter Product • Add the Post-it® Flag Pen • Develop a Marketing Program for the Post-it® Flag Highlighter and Pen 3M Post-it Flag Highlighter ©McGraw-Hill Education/Mike Hruby, photographer FIGURE 1-4 Marketing programs for two new 3M Post-it® brand products targeted at college students and office workers. FIGURE 1-5 Four different orientations in the history of American business Selfridge’s HOW MARKETING BECAME IMPORTANT EVOLUTION OF THE MARKET ORIENTATION Market Orientation Customer Relationship Management (CRM) Customer Experience • What Firms Think They Offer Customers • What Customers Say They Receive ©Lannis Waters/ZUMA Press/Newscom HOW MARKETING BECAME IMPORTANT ETHICS AND SOCIAL RESPONSIBILITY Societal Marketing Concept Ethics–Companies develop codes of ethics Social Responsibility– Organizations are accountable to a larger society HOW MARKETING BECAME IMPORTANT BREADTH AND DEPTH OF MARKETING (2 of 2) Who Buys and Uses What Is Marketed? Ultimate Consumers Organizational Buyers Who Benefits? How Consumers Benefit: Utility • • • • Form Utility Place Utility Time Utility Possession Utility ©Source: Peace Corps IN-CLASS ACTIVITY 1-1 DESIGNING A CANDY BAR Designing a Better Candy Bar Designing a Better Candy Bar Example: Ghirardelli Chocolate Announcements & Assignments for Wednesday…….. • Textbook Reading, Chapter 2 and Appendix A • Appendix A will be our model for Group Project later in the quarter • Group Office Hours – Mondays 2:30 p.m. – 3:30 p.m. via ZOOM. Personal meetings by appointment The Rady School of Management MGT 103 Product Marketing & Management Mon. & Wed. Fall 2021 Professor Burt De Mill HOW MARKETING BECAME IMPORTANT BREADTH AND DEPTH OF MARKETING (1 of 2) Who Markets? What Is Marketed? • Products (Goods) • Services • Ideas Hermitage Tour Top: ©AFP/Getty Images; Bottom: ©Izzet Keribar/Lonely Plant Images/Getty Images 3M’S STRATEGY AND MARKETING PROGRAM DISCOVERING AND SATISFYING STUDENT STUDY NEEDS (2 of 2) Developed Third-Generation Post-it® Flag Highlighter Appeared on The Oprah Winfrey Show LEARNING OBJECTIVES Product Development 1. Recognize the various terms that pertain to products and services. 2. Identify the ways in which consumer and business products and services can be classified. 3. Explain the significance of “newness” in new products and services as it relates to the degree of consumer learning involved. LEARNING OBJECTIVES Product Development 4. Describe the factors contributing to the success or failure of a new product or service. 5. Explain the purposes of each step of the new-product development process. APPLE: THE WORLD-CLASS NEW-PRODUCT MACHINE Stumbles: Successes: • Apple III (1980) • Apple II (1977) • Lisa (1983) • Mac (1984) • Newton (1987) • iPod (2001) • Mac Portable • iPhone (2007) (1989) • iPad (2010) • Hockey Puck • CarPlay (2014) Mouse (1998) • Apple Watch (2015) What’s Next? • An Appleenabled iCar? WHAT ARE PRODUCTS AND SERVICES? CLASSIFYING PRODUCTS (1 of 2) Consumer Products 1. 2. 3. 4. Convenience Products Shopping Products Specialty Products Unsought Products FIGURE 10-1 How a consumer product is classified affects which products consumers buy and the marketing strategies used. WHAT ARE PRODUCTS AND SERVICES? CLASSIFYING PRODUCTS (2 of 2) Business Products • Derived Demand • Components • Support Products • Installations • Accessory Equipment • Supplies • Industrial Services WHAT ARE PRODUCTS AND SERVICES? CLASSIFYING SERVICES Delivery by: • People or Equipment • Business Firms or Nonprofit Organizations • Government Agencies WHAT ARE PRODUCTS AND SERVICES? PRODUCT CLASSES, FORMS, ITEMS, LINES, AND MIXES (1 of 2) • Product Class (or Industry) • Different Product Forms Exist within the Product Class Example: In the Recorded Music Industry There Are Records, Tapes, CDs, MP3s WHAT ARE PRODUCTS AND SERVICES? PRODUCT CLASSES, FORMS, ITEMS, LINES, AND MIXES (2 of 2) Product Item • Stock Keeping Unit (SKU) Product Line Product Mix NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHAT IS A NEW PRODUCT? (1 of 3) Newness: Compared to Existing Products 1. Product Is New if Functionally Different from Existing Products 2. Revolutionary Newness Can Create New Industries (Example: Smartphones) Xbox One Video MARKETING MATTERS Too Much of a Good Thing: Feature Bloat and Fatigue in New-Product Development Feature Bloat: • Unnecessary Features or Functions Feature Fatigue: • Consumers Choose Overly Complex Products Jump to Appendix 2 long image description NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHAT IS A NEW PRODUCT? (2 of 3) Newness: The Consumer’s Perspective 1. Continuous Innovation 2. Dynamically Continuous Innovation 3. Discontinuous Innovation FIGURE 10-2 The degree of “newness” in a new product affects the amount learning effort consumers exert to use the product. Jump to Appendix 3 long image description NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHAT IS A NEW PRODUCT? (3 of 3) Newness in Legal Terms • “New” Term Is Limited to 6 Months Newness from the Organization’s Perspective • Product Line Extension • Jump in Innovation • Brand Extension NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHY PRODUCTS AND SERVICES SUCCEED OR FAIL (1 of 4) Protocol Difficult to Produce a Successful New Product • Most Consumers Buy the Same 150 Items Consistently • Less than 3 Percent of New CPG Exceed Year 1 Sales of $50 Million NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHY PRODUCTS AND SERVICES SUCCEED OR FAIL (2 of 4) Marketing Reasons for New-Product Failures 1. Insignificant Point of Difference 2. Incomplete Market and Product Protocol Before Product Development Starts 3. Not Satisfying Customer Needs on Critical Factors 4. Bad Timing Left: ©David Paul Morris/Bloomberg via Getty Images; Right: ©Suzanne Kreiter/The Boston Globe via Getty Images NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHY PRODUCTS AND SERVICES SUCCEED OR FAIL (3 of 3) Marketing Reasons for New-Product Failures (continued) 5. 6. 7. 8. No Economical Access to Buyers Poor Execution of the Marketing Mix Too Little Market Attractiveness Poor Product Quality Left: ©B Christopher/Alamy Stock Photo; Right: ©Patrick Farrell/KRT/Newscom FIGURE 10-3 Seven stages in the new-product process leading to success Jump to Appendix 4 long image description THE NEW-PRODUCT PROCESS STAGE 1: NEW-PRODUCT STRATEGY DEVELOPMENT New-Product Development Process New-Product Strategy Development • • • • • SWOT Analysis Environmental Scanning Protocol and Strategic Role Defined Disruptive Innovation Can Occur Service Development Difficult THE NEW-PRODUCT PROCESS STAGE 2: IDEA GENERATION (1 of 3) Idea Generation • Open Innovation • Employee and CoWorker Suggestions • Customer and Supplier Suggestions • Crowdsourcing Life Is Good Tide Pods Ad Top: ©Michael Dwyer/AP Images; Bottom: ©McGraw-Hill Education/Mike Hruby, photographer THE NEW-PRODUCT PROCESS STAGE 3: SCREENING AND EVALUATION Screening and Evaluation Internal Approach • Customer Experience Management (CEM) External Approach • Concept Tests THE NEW-PRODUCT PROCESS STAGE 4: BUSINESS ANALYSIS Business Analysis • Prototype – Full-Scale Model • Business Fit of New Product • Financial Projections THE NEW-PRODUCT PROCESS STAGE 5: DEVELOPMENT Development • • • • Turns Ideas into Prototypes Results in Demonstrable Product Lab and Consumer Tests Example: Google Driverless Car ©Kim Kulish/Corbis via Getty Images MARKETING MATTERS Was the Google Glass Half Full or Half Empty? Augmented Reality Glasses: • Prototypes Sold to 8,000 Qualified “Glass Explorers” for $1,500 (2013) • Incomplete Product Testing • “Glassholes” • Withdrawn from Market (2015) • New Version – Glass Enterprise Edition – Being Tested for use by Workers ©Rex Features/AP Images THE NEW-PRODUCT PROCESS STAGE 6: MARKET TESTING Market Testing • • • • Standard Test Markets Controlled Test Markets, “Beta” launch Simulated Test Markets (STMs) When Test Markets Don’t Work • Use Mock-ups or Prototypes Courtesy of Bolin Marketing THE NEW-PRODUCT PROCESS STAGE 7: COMMERCIALIZATION Commercialization • The Boeing 787 Dreamliner Experience • Technical Problems • Burger King French Fries: The Complexity of Commercialization“Satisfries” • Too Complicated to Get Right, “2” fryers slowed service Top: ©KiyoshiOta/Bloomberg via Getty Images; Bottom: ©McGraw-Hill Education/Mike Hruby, photographer The Rady School of Management Mid-Term Review MGT103 Fall 2021 De Mill Mid Term Monday, November 1st - Format & Focus • 50 Canvas Quiz questions (5.0 points each) – Multiple choice, fill in blank, T or F • Open book format • Delivered via Canvas Quiz. Video camera required for proctoring • Questions via public chat. Limited to 80 minutes. All Chat is recorded • One question/one answer! No “scrolling back”. • Focus – 80% lecture presentations, class discussions, case studies – 20% textbook concepts • No hats, no headphones, no talking during the Exam • Special Mid-Term Review Office Hour – Friday 3:00 p.m. ( will be recorded and posted in Media Gallery) Other Focus Areas for Mid-Term • Case Studies – Mary Barra: GM – Starbucks in Milan • Videos presented in class • Classroom Discussions- Review your notes • “Learning Objectives Review” at the end of Chapters • Reach out to Kylie or Max for help as well….. FIGURE 1-3 Marketing seeks to discover consumer needs through research and then satisfy them with a marketing program. Jump to Appendix 2 long image description SETTING STRATEGIC DIRECTIONS WHERE DO WE WANT TO GO? (1) Business Portfolio Analysis (BCG Matrix) 1. Question Marks: • Low Share of High-Growth Market 2. Stars: • High Share of High-Growth Markets 3. Cash Cows: • Generates Large Amounts of Cash 4. Dogs: • Low Share of Slow-Growth Markets FIGURE 2-4 BCG business portfolio analysis for Apple’s consumer SBUs Apple’s Website Jump to Appendix 4 long image description All product photos: Source: Apple Inc. FIGURE 2-7 Ben & Jerry’s SWOT analysis that serves as the basis for management actions regarding growth. Jump to Appendix 7 long image description FIGURE 2-8 The four Ps elements of the marketing mix must be blended to produce a cohesive marketing program. FIGURE 3-1 Environmental forces affect the organization, its suppliers, and its customers. FIGURE 4-2 A framework for understanding ethical behavior FIGURE 4-4 Three concepts of social responsibility FIGURE 5-1 The purchase decision process consists of five stages. FIGURE 5-4 Apple Consumer Journey Map and Consume Touchpoints for Electronic Devices Sold in Apple Stores FIGURE 5-5 Influences on the consumer purchase decision process from both internal and external sources. FIGURE 6-1 Key characteristics and dimensions of organizational buying behavior FIGURE 6-3 Comparing the stages in a consumer and organizational purchase decision process. FIGURE 7-1 Leading countries in global merchandise trade in terms of imports (U.S.) and exports (China). FIGURE 7-2 Protectionism hinders world trade when countries raise prices and limit supply through tariff and quota policies Jump to Appendix 2 long image description FIGURE 7-A Global Companies and Marketing Strategy TYPE OF GLOBAL COMPANY TYPES OF MARKETING STRATEGY International Firm Extension of Home Marketing Strategy Multinational Firm Multi-domestic Marketing Strategy Transnational Firm Global Marketing Strategy FIGURE 7-4 Alternative global market-entry strategies FIGURE 8-1 Five-step marketing research approach leading to marketing actions FIGURE 8-2 Types of marketing information: Market Research Jump to Appendix 2 long image description FIGURE 8-4 Different types of questions in a sample Wendy’s survey (Q1 – Q5) Open ended Closed ended Likert Scale Semantic Differential FIGURE 8-5 How marketing researchers and managers use information technology to turn information into action FIGURE 8-7 Marketing dashboards that present findings to Tony’s marketing manager that lead to recommendations and actions. FIGURE 9-1 Market segmentation links market needs to an organization’s marketing program through marketing mix actions. FIGURE 9-3 The five key steps in segmenting and targeting markets that link market needs to a firm's marketing program. research MARKETING MATTERS Apple’s Segmentation Strategy – Product/Segment Grid FIGURE 9-11 The strategy American dairies are using to reposition chocolate milk to reach adults. FIGURE 10-1 How a consumer product is classified affects which products consumers buy and the marketing strategies used. MARKETING MATTERS Too Much of a Good Thing: Feature Bloat and Fatigue in New-Product Development Feature Bloat: • Unnecessary Features or Functions Feature Fatigue: • Consumers Choose Overly Complex Products FIGURE 10-2 The degree of “newness” in a new product affects the amount learning effort consumers exert to use the product. FIGURE 10-3 Seven stages in the new-product process leading to success MGT103- Starbucks in Milan- In Class Group Work Notes: Rady School of Management, 2020 Professor De Mill Primary Market Research Questionnaire - Electric Skateboard! Meixuan Zhu A17199353 MGT-103 C00 Professor Burt De Mill Oct 27, 2021 Greetings and welcome to our booth! I am a product manager at the Ace Mobility Company. I am surveying to investigate the effectiveness of our newly launched electric skateboard designed to help students in movement across campus. Walking vast distances across campus or from the car park to class can be exhausting and time-consuming. While the walk is not physically exhausting, it wastes time in our hectic student life schedule. Our electric skateboards will help maximize our time efficiency. I warmly encourage you to take part in this survey by responding to the questions on the questionnaire. Your contribution to this research is of vital importance. This survey will take the utmost five minutes of your time to complete. We are grateful for your assistance! Thank you very much! 1. What is your gender? …………………………………………………………………………………………….. 2. What is your Age? …………………………………………………………………………………………….. 3. Have you ever considered purchasing an electric skateboard? ……………………………………………………………………………………………. 4. Have you ever tried skateboarding? …………………………………………………………………………………………… 5. Which of these controls do you think you would choose for your electric skateboard? Hand control while holding a wireless controller Foot control with weight sensing button on the deck of the board Other (please specify) 6. Do you want to be able to travel as far as possible without needing to recharge your board? ……………………………………………………………………………………………….. 7. What speed limits would you prefer your electric skateboard to have? A. 5-10 mph B. 10-15 mph C. 15-20 mph D. Fast Response ____ 8. Rank the following characteristics of an Electric Skateboard in order of relevance to you. Transport use Environment friendly Fun ride Cool image weight Most important Second most important Third most important Fourth most important Other (please specify) 8. How do you intend to use your electric skateboard? ………………………………………………………………………………………………….. 9. Which color would you prefer for your electric skateboard? ………………………………………………………………………………………………… 10. What other features do you think we should add to the electric skateboards? ………………………………………………………………………………………………… how I plan to attract attention to my booth and encourage students to complete the survey My booth will include fun and engaging attraction. I will hold Trivia games and picture booths to energize and engage my guests. I will supply Complimentary drinks to entice people to the booth. Additionally, I will provide caps, stickers, wristbands, and other items and encourage attendees to wear our company’s branded goods in exchange for a chance to win a reward after the Show. References Mothersbaugh, D. L., Hawkins, D. I., Kleiser, S. B., Mothersbaugh, L. L., & Watson, C. F. (2020). Consumer behavior: Building marketing strategy. McGraw-Hill Education. Varadarajan, R. (2020). Customer information resources advantage, marketing strategy and business performance: A market resources based view. Industrial Marketing Management, 89, 89-97. Tesla Powerwall SWOT Analysis Meixuan Zhu A17199353 MGT-103 C00 Professor Burt De Mill Oct 11, 2021 Strengths ➢ A leading employer firm • Tesla is a top ideal workplace. • The Company attracts highly skilled workers, guaranteeing high-quality Powerwall products. ➢ Innovative Company • The innovation rate at Tesla Inc. is relatively high. • The market expects and trusts the firm in producing good and competitive batteries. ➢ Energy efficiency product • The firm is prominent in producing efficient renewable energy storage products. • For every solar purchased, a Powerwall product is included. ➢ Partnerships • Tesla has partnered with firms like Yes Energy • These collaborations ensure continuous expansion of Powerwall products. ➢ Good brand image • Powerwall product is immensely famous. • Customers trust Powerwall products in storing renewable energy. ➢ Control over the production process • The firm produces all the components of the Powerwall product. • There is less vulnerability to other parties and companies. Weaknesses ➢ Limited presence • The firm concentrates on becoming a hypercompetitive renewable energy market. • Other firms are expanding globally. ➢ Premium product ranges • The firm is a developed premium renewable energy brand. • High costs of the Powerwall product might be unaffordable to many customers. ➢ Succession strategy • Elon Musk is the face of Tesla. • His exit might affect the production of Powerwall products. ➢ Manufacturing complications • High innovation is associated with mechanical complications. • There is a risk of continuous manufacturing delays of Powerwall products. ➢ High market demand • Tesla relies on complicated and experimenting procedures. • There is a challenge of unbalanced demand and supply of Powerwall products. ➢ Shortage of Powerwall products • Elon accepts that there is a limited production of Powerwall products. • Shortage decreases the sales of the products. Opportunities ➢ Environmental-friendly products • Consumers are increasingly becoming environmentally conscious. • Demand for Powerwall products will potentially increase. ➢ Powerwall production technology • Tesla promotes in-house manufacturing of the product. • This will potentially lower production costs in the future. ➢ Sales expansion in unexplored markets • The firm currently dominates in the Asian markets. • Expanding to global markets will increase sales of Powerwall products. ➢ Less expensive Powerwall products • Expensive innovation increases the prices of the products. • The manufacture of affordable Powerwall products will increase sales. ➢ Market confidence • Tesla stocks value keep on increasing. • The value and trust of Powerwall products will increase. ➢ Supply chain • The Company’s supply chain capabilities have room for development. • This will make the firm attain novel demands and sales. Threats ➢ Increasing product liability claims • High assurance and standards of manufacturing are likely to increase liability claims of Powerwall products. • The launch of unsuccessful products might subject the firm to considerable financial blows. ➢ Extensive competition • Several firms are now engaging in the production of renewable energy storage batteries. • Customers might get alternatives for unaffordable and expensive Powerwall products. ➢ Products defects • Complex engineering innovations cause these. • Bad products taint the image of the firm. ➢ Long-term confidence • The firm needs long-term confidence to maintain the reputation of the products. • Unstable manufacturing procedures and conditions threaten the gadgets. ➢ Supply disruption • This is caused by limited materials to manufacture Powerwall products. • Price volatility of the materials threatens the production line of the products. ➢ Lithium-ion usage risk • The firm uses lithium-ion cells to manufacture the Powerwall product. • Lithium is largely reactive and explosive, increasing the risk concerns of the products. References Tesla website https://www.tesla.com/powerwall LEARNING OBJECTIVES Product Development 1. Recognize the various terms that pertain to products and services. 2. Identify the ways in which consumer and business products and services can be classified. 3. Explain the significance of “newness” in new products and services as it relates to the degree of consumer learning involved. LEARNING OBJECTIVES Product Development 4. Describe the factors contributing to the success or failure of a new product or service. 5. Explain the purposes of each step of the new-product development process. APPLE: THE WORLD-CLASS NEW-PRODUCT MACHINE Successes: • Apple II (1977) • Mac (1984) • iPod (2001) • iPhone (2007) • iPad (2010) • CarPlay (2014) • Apple Watch (2015) Stumbles: • Apple III (1980) • Lisa (1983) • Newton (1987) • Mac Portable (1989) • Hockey Puck Mouse (1998) What’s Next? • An Apple-enabled iCar? WHAT ARE PRODUCTS AND SERVICES? CLASSIFYING PRODUCTS (1 of 2) Consumer Products 1. 2. 3. 4. Convenience Products Shopping Products Specialty Products Unsought Products FIGURE 10-1 How a consumer product is classified affects which products consumers buy and the marketing strategies used. WHAT ARE PRODUCTS AND SERVICES? CLASSIFYING PRODUCTS (2 of 2) Business Products • Derived Demand • Components • Support Products • Installations • Accessory Equipment • Supplies • Industrial Services WHAT ARE PRODUCTS AND SERVICES? CLASSIFYING SERVICES Delivery by: • People or Equipment • Business Firms or Nonprofit Organizations • Government Agencies WHAT ARE PRODUCTS AND SERVICES? PRODUCT CLASSES, FORMS, ITEMS, LINES, AND MIXES (1 of 2) • Product Class (or Industry) • Different Product Forms Exist within the Product Class Example: In the Recorded Music Industry There Are Records, Tapes, CDs, MP3s WHAT ARE PRODUCTS AND SERVICES? PRODUCT CLASSES, FORMS, ITEMS, LINES, AND MIXES (2 of 2) Product Item • Stock Keeping Unit (SKU) Product Line Product Mix NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHAT IS A NEW PRODUCT? (1 of 3) Newness: Compared to Existing Products 1. Product Is New if Functionally Different from Existing Products 2. Revolutionary Newness Can Create New Industries (Example: Smartphones) Xbox One Video MARKETING MATTERS Too Much of a Good Thing: Feature Bloat and Fatigue in New-Product Development Feature Bloat: • Unnecessary Features or Functions Feature Fatigue: • Consumers Choose Overly Complex Products Jump to Appendix 2 long image description NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHAT IS A NEW PRODUCT? (2 of 3) Newness: The Consumer’s Perspective 1. Continuous Innovation 2. Dynamically Continuous Innovation 3. Discontinuous Innovation FIGURE 10-2 The degree of “newness” in a new product affects the amount of learning effort consumers exert to use the product. Jump to Appendix 3 long image description NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHAT IS A NEW PRODUCT? (3 of 3) Newness in Legal Terms • “New” Term Is Limited to 6 Months Newness from the Organization’s Perspective • Product Line Extension • Jump in Innovation • Brand Extension NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHY PRODUCTS AND SERVICES SUCCEED OR FAIL (1 of 4) Protocol Difficult to Produce a Successful New Product • Most Consumers Buy the Same 150 Items Consistently • Less than 3 Percent of New CPG Exceed Year 1 Sales of $50 Million NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHY PRODUCTS AND SERVICES SUCCEED OR FAIL (2 of 4) Marketing Reasons for New-Product Failures 1. Insignificant Point of Difference 2. Incomplete Market and Product Protocol Before Product Development Starts 3. Not Satisfying Customer Needs on Critical Factors 4. Bad Timing Left: ©David Paul Morris/Bloomberg via Getty Images; Right: ©Suzanne Kreiter/The Boston Globe via Getty Images NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHY PRODUCTS AND SERVICES SUCCEED OR FAIL (3 of 3) Marketing Reasons for New-Product Failures (continued) 5. 6. 7. 8. No Economical Access to Buyers Poor Execution of the Marketing Mix Too Little Market Attractiveness Poor Product Quality Left: ©B Christopher/Alamy Stock Photo; Right: ©Patrick Farrell/KRT/Newscom FIGURE 10-3 Seven stages in the new-product process leading to success Jump to Appendix 4 long image description THE NEW-PRODUCT PROCESS STAGE 1: NEW-PRODUCT STRATEGY DEVELOPMENT New-Product Development Process New-Product Strategy Development • • • • • SWOT Analysis Environmental Scanning Protocol and Strategic Role Defined Disruptive Innovation Can Occur Service Development Difficult THE NEW-PRODUCT PROCESS STAGE 2: IDEA GENERATION (1 of 3) Idea Generation • Open Innovation • Employee and CoWorker Suggestions • Customer and Supplier Suggestions • Crowdsourcing Life Is Good Tide Pods Ad Top: ©Michael Dwyer/AP Images; Bottom: ©McGraw-Hill Education/Mike Hruby, photographer THE NEW-PRODUCT PROCESS STAGE 3: SCREENING AND EVALUATION Screening and Evaluation Internal Approach • Customer Experience Management (CEM) External Approach • Concept Tests THE NEW-PRODUCT PROCESS STAGE 4: BUSINESS ANALYSIS Business Analysis • Prototype – Full-Scale Model • Business Fit of New Product • Financial Projections THE NEW-PRODUCT PROCESS STAGE 5: DEVELOPMENT Development • • • • Turns Ideas into Prototypes Results in Demonstrable Product Lab and Consumer Tests Example: Google Driverless Car ©Kim Kulish/Corbis via Getty Images MARKETING MATTERS Was the Google Glass Half Full or Half Empty? Augmented Reality Glasses: • Prototypes Sold to 8,000 Qualified “Glass Explorers” for $1,500 (2013) • Incomplete Product Testing • “Glassholes” • Withdrawn from Market (2015) • New Version – Glass Enterprise Edition – Being Tested for use by Workers ©Rex Features/AP Images THE NEW-PRODUCT PROCESS STAGE 6: MARKET TESTING Market Testing • • • • Standard Test Markets Controlled Test Markets, “Beta” launch Simulated Test Markets (STMs) When Test Markets Don’t Work • Use Mock-ups or Prototypes Courtesy of Bolin Marketing THE NEW-PRODUCT PROCESS STAGE 7: COMMERCIALIZATION Commercialization • The Boeing 787 Dreamliner Experience • Technical Problems • Burger King French Fries: The Complexity of Commercialization- “Satisfries” • Too Complicated to Get Right, “2” fryers slowed service Top: ©KiyoshiOta/Bloomberg via Getty Images; Bottom: ©McGraw-Hill Education/Mike Hruby, photographer The Rady School of Management Mid-Term Review MGT103 Fall 2021 De Mill Mid Term Monday, November 1st - Format & Focus • 50 Canvas Quiz questions (5.0 points each) – Multiple choice, fill in blank, T or F • Open book format • Delivered via Canvas Quiz. Video camera required for proctoring • Questions via public chat. Limited to 80 minutes. All Chat is recorded • One question/one answer! No “scrolling back”. • Focus – 80% lecture presentations, class discussions, case studies – 20% textbook concepts • No hats, no headphones, no talking during the Exam • Special Mid-Term Review Office Hour – Friday 3:00 p.m. ( will be recorded and posted in Media Gallery) Other Focus Areas for Mid-Term • Case Studies – Mary Barra: GM – Starbucks in Milan • Videos presented in class • Classroom Discussions- Review your notes • “Learning Objectives Review” at the end of Chapters • Reach out to Kylie or Max for help as well….. FIGURE 1-3 Marketing seeks to discover consumer needs through research and then satisfy them with a marketing program. Jump to Appendix 2 long image description SETTING STRATEGIC DIRECTIONS WHERE DO WE WANT TO GO? (1) Business Portfolio Analysis (BCG Matrix) 1. Question Marks: • Low Share of High-Growth Market 2. Stars: • High Share of High-Growth Markets 3. Cash Cows: • Generates Large Amounts of Cash 4. Dogs: • Low Share of Slow-Growth Markets FIGURE 2-4 BCG business portfolio analysis for Apple’s consumer SBUs Apple’s Website Jump to Appendix 4 long image description All product photos: Source: Apple Inc. FIGURE 2-7 Ben & Jerry’s SWOT analysis that serves as the basis for management actions regarding growth. Jump to Appendix 7 long image description FIGURE 2-8 The four Ps elements of the marketing mix must be blended to produce a cohesive marketing program. FIGURE 3-1 Environmental forces affect the organization, its suppliers, and its customers. FIGURE 4-2 A framework for understanding ethical behavior FIGURE 4-4 Three concepts of social responsibility FIGURE 5-1 The purchase decision process consists of five stages. FIGURE 5-4 Apple Consumer Journey Map and Consumer Touchpoints for Electronic Devices Sold in Apple Stores FIGURE 5-5 Influences on the consumer purchase decision process from both internal and external sources. FIGURE 6-1 Key characteristics and dimensions of organizational buying behavior FIGURE 6-3 Comparing the stages in a consumer and organizational purchase decision process. FIGURE 7-1 Leading countries in global merchandise trade in terms of imports (U.S.) and exports (China). FIGURE 7-2 Protectionism hinders world trade when countries raise prices and limit supply through tariff and quota policies Jump to Appendix 2 long image description FIGURE 7-A Global Companies and Marketing Strategy TYPE OF GLOBAL COMPANY TYPES OF MARKETING STRATEGY International Firm Extension of Home Marketing Strategy Multinational Firm Multi-domestic Marketing Strategy Transnational Firm Global Marketing Strategy FIGURE 7-4 Alternative global market-entry strategies FIGURE 8-1 Five-step marketing research approach leading to marketing actions FIGURE 8-2 Types of marketing information: Market Research Jump to Appendix 2 long image description FIGURE 8-4 Different types of questions in a sample Wendy’s survey (Q1 – Q5) Open ended Closed ended Likert Scale Semantic Differential FIGURE 8-5 How marketing researchers and managers use information technology to turn information into action FIGURE 8-7 Marketing dashboards that present findings to Tony’s marketing manager that lead to recommendations and actions. FIGURE 9-1 Market segmentation links market needs to an organization’s marketing program through marketing mix actions. FIGURE 9-3 The five key steps in segmenting and targeting markets that link market needs to a firm's marketing program. research MARKETING MATTERS Apple’s Segmentation Strategy – Product/Segment Grid FIGURE 9-11 The strategy American dairies are using to reposition chocolate milk to reach adults. FIGURE 10-1 How a consumer product is classified affects which products consumers buy and the marketing strategies used. MARKETING MATTERS Too Much of a Good Thing: Feature Bloat and Fatigue in New-Product Development Feature Bloat: • Unnecessary Features or Functions Feature Fatigue: • Consumers Choose Overly Complex Products FIGURE 10-2 The degree of “newness” in a new product affects the amount of learning effort consumers exert to use the product. FIGURE 10-3 Seven stages in the new-product process leading to success Examinations Both the Mid-Term Exam as well as the Final Exam will be “open book” examinations, textbook, notes or web access will be allowed. Exams represent a total 50% of the course grade. Examinations will be delivered via Canvas Quiz. Video cameras will be required for all Examinations to confirm your identity and proctor the Exam. Question 1 1. In order for Marketing to occur, one party must have a need, and the other the goods or services to fill that need. O True O False Next → MOTROP-Prod. Marketiny * BB Ceasudedu bourses:80254/quizzes/75178/take/questions/794839 O tome Page - Iasie 4 # $ # POFA# integral Calculator Mail - Meixuan Zh. S studypool 5A Question 2 2) A carefully crafted combination of Product, Price, Promotion and Services is known as: O none of these O a Cohesive Marketing plan O Maslow's Hierarchy organizational Buying Pro, un
Purchase answer to see full attachment