Competitive Effectiveness Test #1

Problem solving (Organizational Team)

-Special team formed to eliminate problems -Make implementable recommendations

Formal Planning - essence of management!

-Specific goals covering a specific time period -Comprehensive hierarchy of integrated and coordinated activities -Written and shared with organizational members

Meeting Minutes

-A written record of the major discussions held, decisions made, action items assigned, and next meeting reminder. -Critically important to follow-up! -Scribe - assigned in advance (rotate among team members) -Minutes should be brief and produced within a day Description of: -Topics discussed (follow the agenda, be concise) -Decisions made -Action items: what; when; accountability -Next meeting reminder

Technical skills

-Ability to perform tasks in a specific discipline or department

Customized (Individual) Marketing

-Companies tailor one or more aspects of their marketing mix to individual customers. Ex: Interior decorating, hair cuts, etc. The marketing mix is being customized for each individual customer. Most software sold to institutions is like this. Advantages? You give people EXACTLY what they want, not approximately. Because you are dealing with customers on a one-on-one basis. Disadvantages? Drives up manufacturing and marketing costs. Can create logistical back-ups in trying to meet the needs of so many customers.

Primary Research

-Conducting research to collect new data to solve a marketing information need. -Summary of your survey findings throughout the plan -Example: Surveys! Use these as an opportunity to get consumer feedback on your ideas or to get information about questions that are unanswered after secondary research

Continuum of Decision Environments

-Decisions are made on a continuum 3 Environments: Certain Environment (Low risk of failure and programmed decision) - Alternative courses of action and their outcomes are known to the decision-maker. -Alternative 1 -> Outcome A -Alternative 2 -> Outcome B Risk Environment (Middle ground) - Decision maker views alternatives and their outcomes in terms of probabilities. -Alternative 1 -> 70% sure to Outcome A -Alternative 2 -> 50% sure to Outcome B Uncertain Environment (High risk of failure and includes a non-programmed decision) - Decision maker doesn't know all alternatives and outcomes, even as probabilities. -Alternative 1 -> 40% sure to Outcome A -Alternative 2 -> Outcome?? -Alternative ?

Structures Situations/Programmed Decisions

-Decisions tend to be repetitive and routine, telling heavily on previous solutions -Procedures, rules, and policies are available Examples: -Compensation ranges (merit increases) -Automobile repair -Core college curriculums -Etc.

Formal Groups

-Defined and structured, leads to Team formation -Appointed/assigned by management Types: -Command groups - organizational level models -Task groups - short term, non-routine tasks -Committees - see chart -Work Teams - problem-solving; special-purpose; self-managed.

Positioning (3rd Step of the Target Marketing Process)

-Developing a marketing strategy that promotes a clear, distinct and desirable perception in target customers' minds in comparison to the competition. -An image, not reality! -Don't be myopic about who you assume will be your target market -There are other competitors

What's the shortcoming of research methods that rely on direct questioning (interviews, focus groups, surveys, etc.)?

-Directly asking for their opinion puts them on the spot and the interviewer might influence their opinion -Questions can be biased -People may be uneducated -People might not care -People are not willing to admit they don't know what you are talking about -Or they don't really know why they made that decision (Unconscious bias!) Could be autopilot mode when it comes to buying groceries etc. Or they are embarrassed and lie -Displayed in the Jimmy Kimmel example - Lie Witness News - Equinox So, how do we get this information if people won't tell us directly? Anonymity? Other research methods:

So, what makes a team successful?

-Diversity of Thought! -Trust, Openness, Reliability -Healthy conflict, Collaboration -Commitment -Accountability -Focus on Results -Effective Working Relationships - never a 'once and one'; requires nurturing.

That said, Blocking Behaviors can exist...

-Dominating: excessive interrupting, talking -Fault-finding: excessive criticism -Stalling: sidetracking the discussion/decision -Overanalyzing: determine "good enough" -Presenting opinions as facts -Passivity: not engaged, remaining on the fringe -Pulling rank: "You get more accomplished if you don't care who gets the credit" - Ronald Reagan -Premature decision-making: consider alternatives!

Promotion (4P's of Marketing Mix)

-References the "communicating" part of the AMA definition of marketing -Communicate the product's value to customers. -Inform, persuade, and build relationships with customers

Product (4P's of Marketing Mix)

-References the "creating" part of the AMA definition of marketing Questions to ask: -What do customers want? -What features? -What do they need along with the product?

Place (4P's of Marketing Mix)

-References the "delivering" part of the AMA definition of marketing -Distributing the product; coordinating where and how the offering makes its way to users.

Price (4P's of Marketing Mix)

-References the "exchanging" part of the AMA definition of marketing -Assign a desirable value to the product for exchange.

What can be marketed?

-References the "offerings' part of the AMA definition of marketing -Places -People -Events -Ideas -Anything!

Informal Groups

-Relationships that extend beyond formal ones established by management -Emerge and spontaneously develop Types: -Interest groups: common concern, specific issue, short-lived -Friend groups: personal factors driven...

4. Formulation of Strategies - (Six-Step Process for Formal Planning in Organizations & the Strategic Management Process)

-Relevance to the industry and competitive environments -Design to achieve the firm's mission, goals, and objectives. -3 types: Corporate, Business, Functional 1. Corporate level strategy = specifies what businesses a company is or wants to be in and what it intends to do (i.e. Walmart). Types include: -1. Growth = expand the # of markets served and/or products offered -2. Stability = 'staying the course' relative to the competitive environment -3. Renewal = strategies to address declining performance; retrenchment & turnaround 2. Business Level Strategy = focus on a single product market -Cost Leadership = commodity like ... -Differentiation = focus on features ... -Focused Cost or Differentiation - narrower segments 3. Functional Strategies = execution, support for the corporate and/or business level strategies -Human Resources; Finance; Operations; etc.

#1 Fundamental Decision Rules (Techniques)

-Simply Majority (51%) -Super Majority (60 to 70%) -Multi-voting - item favored by all, but not the top choice, may rise to the top: 1. List all possible choices that the team must decide from. 2. Take the total number of team-mates that will be voting (n) and divide by 3. This gives you the number of votes (v) each... 3. Ex. 12 team members / 3 = 4. 4. Each person has those v number of votes to place on any of the options. A team member may put all of their votes on one... 5. Tally the votes.

Benefits of Informal Groups (bookmark!)

-Socialization, reinforce organizations cultural values -Increased satisfaction, feeling of belonging -Improved communications and relationships -Overall, a more inclusive and cohesive work environment.

Advantages of Teams

-Some form of teamwork permeates our daily lives. -What makes a team? 1) Generally small groups 2) Interdependency 3) Common purpose -Business teams will be commonplace when we begin our careers

Other Common Decision-Making Biases:

Anchoring effect: focusing only on early information Selective Perception: "see" only what you want to see Availability Bias: only focusing on most recent events Escalation of Commitment: ignoring new evidence that might change your initial decision Groupthink: pressures towards uniformity; overestimation of the group (be reflective/humble/invit different perspectives!)

Black Hat (Six Hats) description

Anticipate problems! -The pessimist - why this may not work -Justification required -Potential problems identified -Can make plans/decisions more resilient

1. Measuring Performance

Sources of information: 1. Personal observation 2. Statistical reports 3. Oral reports 4. Written reports 5. Budgets: planning & control 6. Audits 7. Benchmarking

According to Stanovich & West research, what are the two systems of the decision-making process?

System 1: Less formal system based on intuition. System 2: Rational decision-making process just discussed.

Employee performance

The methods an organization uses to measure how effective the workforce is. The best systems have conversations on a monthly basis.

Rational Model for Decision-Making: Strives to place decision-maker in best position to 'decide'! (bookmark!)

1) Identification of Problem/Opportunity 2) Search for Alternatives 3) Evaluation of Alternatives 4) Determine Solution 5) Implementation Then feedback.

Who does marketing create value for?

"Customers, clients, partners, and society at large" - AMA definition of marketing

Perspective (5th P of Effective Meetings)

"How are we doing in our meeting cadence?" Occasionally ask: -What went well? -What is not productive? -What else should we be doing?

Reflections on Decision Making Quotes

"In any moment of decision, the best thing you can do is the right thing, the worst thing you can do is nothing." - Theodore Roosevelt "Nothing happens until you decide. Make a decision and watch your life move forward." - Oprah Winfrey "The most important decisions you make aren't always the things you do, but the things that you decide not to do." - Steve Jobs "It's better to be approximately right than precisely wrong." - Warren Buffet

Self-Managed (Organizational Team)

-"Plans, organizes, leads, and controls" own work -Minimal management engagement, but for team selection and checkpoints

Aversion to (healthy) Conflict (2nd Dysfunction of a Team)

-"When two people in business always agree, one of them is unnecessary." - William Wrigley Jr. -In a work setting where team members do not openly air their opinions, inferior decisions are the result Teams that engage in constructive conflict: -Have lively and interesting meetings -Minimize politics -Put critical topics on the table for debate -Extract the ideas of all team members

The Sales Era (2nd Era of Marketing)

-1940s -Played the "Every day I'm Hustlin" by Rick Ross song -> Mentality: aggressive marketing and sales -Companies' invested heavily in sales promotions, advertisements, and personal selling to enhance customer acquisition. -Aggressive marketing tactics -Little attention devoted to customer retention Real-life example: WW2 ending changed business drastically. America didn't need to manufacture as many guns and other weapons, but the factories were still there with no purpose. In addition, more people/possible workers became available that were once in the war. -> So they used these factories and people to manufacture other goods (clothing, food, appliances, etc) -Because of this, competition became more stiff and companies had to learn to differentiate because of the many affordable choices now available for consumers. -However, companies still weren't asking consumers what they wanted and instead only cared about making the sale happen. They had to go hustle, door-to-door sales, and advertise. -Marketing tactics were aggressive and focused on customer acquisition, not much care beyond making the one sale or about making a well-suited product. (Short term orientation) -This led to marketing getting a bad reputation because it seemed distrustful and aggressive. -Lots of ad agencies.

The Relationship Era (3rd Era of Marketing)

-1970s/1980s -Played "I want to see you smile..I'll have to leave my hustling ways...I want to see you happier" by Marshmallow -> Mentality: Increased emphasis on wanting to make the customer happy -Companies emphasized gaining a deep understanding of customers' needs and creating favorable long-term relationships with the firm. -TQM and Marketing Research blossomed during this era. -Shift in mindset to focus on keeping customers and investing quality and feedback. -Customers have standards and want to buy safer/wiser. -Sales by any means necessary was over. Instead, there was a need to make customers happy and invest in quality.

Team Charter

-A "living document" that records the team values, agreements, and operating guidelines, as well as establishing clear expectations regarding acceptable behavior by project team members. -Strategic business plan for our team. Emphasis on "living" because it should not be static, but instead updated often like how it is in the business world. We should refresh it as we learn more about ourselves and the company. -Includes generally agreed upon principles that guide the behavior of the team. -It is a "working agreement" for the ream which spells out expectations, norms, and roles for team members. -Defines the purpose of the team and how it will function. -Charter is essentially a plan (roadmap) which should be periodically reviewed to ensure effective of team.

Positioning Statement

-A brief statement that articulates how the marketer would like the target market to envision a product relative to the competition -Why should a customer buy our product. -Different from mission statement which is more external and broad, a positioning statement is more descriptive and addresses competition. Let's do one for Starbucks: 1) WHO is your target market? -Dunkin Donuts -Convenience stores: WaWa, 7/11 -Machines for home: Keurig, nespresso -Fast Food: McDonalds (You would be short-sighted to not acknowledge consumer electronics, consumer packaged goods, convenience stores, and fast food) 2) WHAT is the unique or superior value your brand offers (USP)? -Think from the target customer's point of view, not only from a company's POV -Not always functional! 3) HOW do I know you offer this value? (RTB) 4) RELATIVE TO WHOM? What is the competitive set? Whom should (and shouldn't) the customer be comparing your brand to?

Marketing Strategy

-A company's plan that identifies how it will use marketing to achieve its goals -Who should be targeted? How should it be positioned? What will the marketing mix look like? -Emphasis on promotional strategy, schedule & budget. Part 1: Segmentation & Targeting -What segments exist? Who are you targeting? Why? Part 2: Marketing Mix -Product: What does the current product look like? If appropriate, describe new product ideas or proposed product modifications. -Price: How does your product's price stack up to competitors? Do you suggest any changes to pricing based on your research? -Place/Distribution: Discuss the current distribution strategy. Recommend relevant changes/ enhancements to the current distribution strategy. -Brand and promotion: How is your product positioned? How do you propose to modify it? What are the goals of your promotional campaign? Part 3: Promotional Schedule & Marketing Budget -Promotional schedule: What tools will you use to achieve your goals and when will you use them? How will you measure success? -Marketing budget: How much will your promotional campaign cost?

Undifferentiated (mass) Marketing

-A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer -Companies use one marketing mix (4P's) for all its customers; this approach appeals to a broad spectrum of customers. Same product, same messaging, same price, and same place/outlets. Advantages? Economies of scale in production and marketing! Cheap because there is only one version of the marketing mix. Disadvantages? Unless you have a strong brand following (coke), competitors can steal your folllowers.

Differentiated Marketing

-A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each -Companies develop different marketing mixes for different segments of customers. For example, Unilever makes Dove for women, Axe for men. It is differentiated, with different marketing mix for different segments. (different price points too like womens is more expensive) Advantages? If one product doesn't do amazing, hopefully you can make up for it with one of your others. Also, more unique products can typically be priced higher. Disadvantages? Lots of increased costs, more expensive to make and market.

Concentrated (niche) marketing

-A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches -Companies commit all their marketing resources to serve a single segment. Example: Black Opal focuses on makeup needs for black women. Advantages? Since a firm only has one segment, they will most likely do a better job of understanding that segment's needs and delivering on those needs relative to competitors. Could also be cheaper because only 1 segment is being served. Disadvantages? Less opportunities to grow (Lefty's example) Also exposed to more risk - all eggs in one basket.

Management by Objectives (MBO)

-A process of setting mutually agreed upon goals and using those goals to evaluate both organizational & employee performance. -A need for more Collaboration & Engagement, & Motivation fueled the development of MBOs Components: -Goal specificity; participative process; explicit time period; performance feedback -Goal to improve organizational and individual productivity -i.e. Increase Council Membership by 5%, 20 companies overall, by the end of the 2nd quarter in the current fiscal year (can be in each key persons expected results, their contribution to the objective)

Recall what TEAMS are all about:

-A relatively small number of people with complementary skills -Committed to common purpose and set of performance goals -Hold themselves mutually accountable (There is no I in Team)

Product-Market Expansion Grid

-A tool for developing growth strategies A framework that characterizes different types of growth strategies based on whether the firm is interested in some combination of: -New/existing customers -New/existing products

2nd Part of Management: Organizing

-Allocating resources, assigning tasks, and establishing procedures -Preparing a structure - organizational models -Staffing (recruit, select, train, develop, place) - attracting and retaining talent

Sustainable Competitive Advantage

-An advantage that cannot be copied by the competition. -At the end of the day, all firms seek to create value so they can gain a competitive advantage. The edge that a firm has over its competitors (year after year) allows it to have higher sales and profits among target customers. -Not short term but a sustainable lead above competitors in the industry. -Staying ahead of the curve and being innovative and proactive!

Figure 8.4 - Framing the discretionary arena... (bookmark)

-Avoid the "paradox of choice" - sometimes less is better! -Discretionary area (acceptable courses of actions) is in the middle -Around it is legal restrictions, moral and ethical norms, formal policies and rules, and unofficial social norms.

Participants (2nd P of Effective Meetings)

-Balance the T-P characteristics (accomplish tasks and build "esprit de corps") -Leverage each other's strengths -Together, manage the time (certainly the leader)

Creating your own Perceptual Map

-Based on your secondary research, determine what 2 characteristics you believe drive consumer choice between brands in your category -As a team, determine criteria to assess brands on these characteristics (number of colors available, sizes available, array of flavors, whatever). -Rank your competitive brands AND your brand based on these criteria. You can also ask your friends to do this, if it is a product category they are familiar with or use secondary data if possible. -Create an X/Y axis in Word or PPT using the shapes tool, and place your brands on these axes. Use the brand marks (logos) instead of points just the name to make it more visually interesting. -Copy and paste into your Marketing Plan!

Performing (Stage #4 of Team Development)

-Building off the first three stages, time to execute...work at a high level of performance! -Clear mission, goals, objectives established... -Team achieving personal commitments, loyalty, engagement -Team helps each other thrive, mutual trust is evident -Keener understanding to leverage each other's strengths! -Seek great execution, continuous improvements, quality, speed, innovation... effective teams generate momentum -Note: Effort does not equal performance!

Winning Teams

-Combination of people, organizational, tasks, and leadership factors... -Build trust, relationships early on -Divide responsibilities, establishing clear roles & expectations -Challenge and play "devil's advocate" -Get and receive constructive feedback -Ensure all are heard and contribute -Get the facts and do analyses before making decisions (Gut has its place, but data is better!) -Have fun along the way

Human Relations

-Communication -Accomplishing goals through people/teams

Importance of Control?

-Control is important because it's the only way that managers know whether organizational goals are being met and, if they are not being met, the reasons why. -The value of the Control function can be seen in 3 specific areas: planning, empowering employees, and protecting the workplace. -As the final step in the management process, controlling provides a critical link to planning, as we see here in exhibit 15.1. If managers didn't control, they'd have no way of knowing other their goals and plans were being achieved and what future actions to take. -The second reason controlling is important is because it can empower employees. Many managers are reluctant to empower their employees because they fear that something will go wrong and they will be held accountable. However, an effective control system provides information and feedback on employee performance and minimizes the chance of problems. -The final reason that managers control is to protect the organization and its assets. Organizations face threats from natural disasters, financial pressures and scandals, workplace violence, supply chain disruptions, security breaches, and even possible terrorist attacks. Comprehensive controls and backup plans help minimize such work disruptions.

Group Solidarity Stage (3rd stage of Formal Group Development)

-Cooperation and building towards success

The Production Era (1st Era of Marketing)

-Early 1900s -Played the "it's all about the Benjamins baby" song -> Mentality: make money and cut costs by making things cheap and efficiently -Companies' only focus was to produce and distribute things in a cost-effective manner. -Resulted in efficient mass manufacturing systems. -Firms didn't care about what customers wanted and didn't have to! Real-life example: Henry Ford automobile practices: -Mass manufacturing (resulted in limited selection like cars only coming in 3 colors/styles) -Assembly line (Same thing over and over again) -9-5 workday - "You can have the car in any color you want as long as it's black" (demonstrates he didn't care about what customers wanted)

Group Control Stage (4th stage of Formal Group Development)

-Effectively matching individual skills and competencies with group activities...leverage

2. External Analyses: Opportunities & Threats - (Six-Step Process for Formal Planning in Organizations & the Strategic Management Process)

-Examines the key components of the environment: Economic, Demographic; Political; Legal; Regulatory; Sociocultural; Technological; Ecological -Related to the external analysis in marketing

Market Development

-Finding new markets for existing products (current products, new markets) Examples with this strategy: -Finding untapped markets -Maybe expanding into different geological markets -Starbucks example: Starbucks grew by creating locations around the world (U.S., China, Canada, etc.) with the same products. This allowed them to reach new markets with their same products)

#5: Gathering Feedback on the Decision (5th Step of the Rational Model for Decision-Making)

-Gather the feedback to determine the effect of the implemented alternative on the problem -If problem is not solved, managers need to seek out and implement another alternative -"Look-back" feature ... critically important to evaluate. (Have to stop and look back to make sure you're on track)

Forming (Stage #1 of Team Development)

-Getting acquainted... -Determining "what is our purpose?" "rules?" "boundaries?" -Accordingly: 1) Orient members and get questions answered 2) Establish early relationships, beginning to build trust 3) Establish roles, clarity of purpose, initial expectations 4) Seek clarity of initial direction and goals from leader(s) -Seek inclusiveness and participation

Acceptance Stage (1st stage of Formal Group Development)

-Getting to know each other -Mutual trust and respect is formed

The evolution of management went from "command and control" to...

-Globalization -Sophistication of markets (Is it an emerging economy or already developed?) -Technological advances (pace is relentless! ex: Social media, zoom, blockchain) -Increasing complexity of issues (supply chains) -Constant change in external and internal environments: 1) Impacts industry, competitive, and organizational happenings. 2) "Rules" in flux. These are rules that affect businesses in each country the company operates. For example, differences in corporate taxes, global taxes, maybe environmental rules, etc. 3) Contingency planning

Running Effectieve Meetings

-Good meetings accomplish determined activities -Bad meetings are not an effective use of the team's time -Ever sat through a poorly run meeting? -Meetings are an important/prime business tool

Caution for Formal Group Development?

-Groupthink can be a downside. -Groupthink is the practice of thinking or making decisions as a group in a way that discourages creativity or individual responsibility. -If everyone is too agreeable and loyal to each other

3rd Part of Management: Leading

-Guiding -Motivating -Persuading -Providing vision -Sustaining the big picture -There is a difference between just managing tasks with an emphasis on execution vs. leading with the company's goals and values in mind.

Why do companies need to plan?

-Helps them identify strengths and weaknesses -Think about how to allocate resources -Set goals and measure progress

Storming (Stage #2 of Team Development)

-How will a team handle different points of view? Disagreements? -How will we avoid 'Group-Think'? ... leads to mediocracy! -Foster a consensus building process -Balance individuality with achieving the goals, solving problems, and completing tasks -Manage conflict, and avoiding divisive coalitions -Be comfortable saying: "And, here is why..." + "Not sure I follow..."

Controls: Keeping Track of Schedules: Gantt Charts

-Ideal for project management -Track's sequence of multiple tasks -Great for communication of status and progress (or lack thereof) -Needs to be kept "live" as conditions change -A 'less' sophisticated version of Critical Path Analyses, covered in detail in Operations Management course

What is value?

-Identifying customer needs and satisfying them -The values that businesses provide can be functional, utilitarian, etc. or sometimes its an emotional or social value

Norming (Stage #3 of Team Development)

-Identifying expectations and gaining commitments from members -Balancing task execution with relationship building -Facilitate participation, candor, and empowerment -Show engagement with and support for team members -Provide feedback on team and team member performance. Ex: TeamHelper tool to facilitate proper feedback techniques. There will be 3 surveys over the semester to "pulse" team dynamics.

Product Development

-Introducing new products for existing markets (new products, current markets) Examples with this strategy: -Coke released new flavors to attract CURRENT Coke users -Low-fat varieties are another product development example aimed at your CURRENT customer base.

Diversification

-Introducing new products for new markets (new products, new markets) -Diversification can be both RELATED and UNRELATED. -Related example: Tesla went from making electric vehicles for end/retail customers to solar energy panels for industrial customers. When you create a new product for a new market but it is somehow related to the competencies the current product is accomplishing, it is related diversification. -Unrelated example: When a company expands to a new market with a new product that has nothing to do with their old one. Google created a Health Incubator, which focused on diseases. This has nothing to do with their usual range of products and means new customers and a new product not closely related to their current offerings so this is an example of unrelated diversification.

Explanation of chart depicting "Meetings: What do Strategic Leaders Do?"

-It is a pie chart about the time spent doing different things in regard to CEOs. -Face-to-face meetings accounts for 67%, followed by working alone at 13%, then E-mail at 7%, then calls at 6%, then business meals at 5%, then public events at 2%. Takeaways: -CEOs consider face-to-face meetings most effective in getting their message across and obtaining the information they need. -Meetings = receiving information, conveying messages, nonverbal cues ... meeting management! -We were told to make our own pie charts with how we invest our time so we can improve.

What kinds of strengths does a team possess?

-Knowledge and skills -Background and experiences -Interpersonal skills Leverage value of the surveys

How to use the Six Hats

-Lateral thinking -Team members 'play' different roles perspectives -Temporary role assignments challenges team to take different perspective -Foster 360-degree examinations -Importance of naming a 'scribe'

Patrick Lencioni's 5 Dysfunctions of a Team Video Overview:

-Leadership in the context of people who report to you: people on your team is so important! -Leadership in the form of speeches isn't the same as leading by connecting with your team. That isn't the way you become leaders in your staffs' eyes. -1st Dysfunction of teams is trust. An example is "Vulnerability Based Trust." -Vulnerability Based Trust: As leaders of teams, we need to generate trust on our teams by helping people become vulnerable with each other. This means people will say things like "I'm sorry" or "I need your help" or "I admire you" etc. These statements are human and real. -One member of a team can hurt the whole dynamic so much if they lack trust and display it. -Leaders should question: "Can my people be smarter or better than me?" Not in the sense of hard skills like being better at excel/analytics, but in the sense that you can admire something about someone that you can't do or don't have. -People will follow a leader into a fire if they are human and honest and vulnerable. But people can't fake it. If you fake it, you will lose your credibility and make the situation worse. (Ex: politics) Be human! If it's not painful in the moment, then it's not real. -Level 5 Moment: I screwed up. -Trust is based on vulnerability!

#3: Selecting the Most Beneficial Alternative (3rd Step of the Rational Model for Decision-Making)

-List as accurately as possible the potential effects and impact of each alternative -Assign probability factor to each potential effect -Compare each alternative's expected effects and respective probabilities of those effects

#1: Identifying an Existing Problem/Opportunity (1st Step of the Rational Model for Decision-Making)

-Management's responsibility to identify barriers and opportunities, then take the necessary steps to eliminate the barriers. Sources of input for identifying problems/opportunities: -Direction/tasks issued by supervisors -Situations relayed by employees -Normal activity of mangers themselves -Competitive benchmarking (PESTEL/SWOT)

4th Part of Management: Controlling

-Measuring results against objectives -Monitoring -Rewarding -Taking corrective action when necessary

Why does Effective Meeting Management matter?

-Meetings use one of our most precious resources: TIME! -Time wasted in a meeting is time wasted for everyone attending ... inefficiency & costly -Information, education, and knowledge sharing occurs in good meetings -Meetings are where DIRECTION is set, DECISIONS are made, and MILESTONES are managed.

What has GAP done recently to try and address this problem of a lack of a clear, distinct positioning?

-More activewear -Releasing a collection with a Yeezy gap apparel line with Kanye West -More teen focused

Lack of Trust (1st Dysfunction of a Team)

-Most severe dysfunction: lack of trust will lead to people holding grudges, not asking for help, hiding mistakes, avoiding the team Develop trust by: -Getting to know one another -Keeping your word, being honest -Active listening -Candid discussion (know that not all will agree) -Etc. "Trust is the glue of life, it is the most essential ingredient in effective communication, it holds relationships together."

Advances in Marketing Research

-Neuromarketing is a relatively new research methodology in marketing. (90s) -Marketers use brain imaging (such as MRI's) to monitor responses to changes in the marketing mix. Brain Scans Predict Music Sales Article: -Played unreleased songs to people in MRIs -Neurologists and marketers monitored what parts of people's brains were lighting up and being active -2 parts lit up: One was obvious, One wasn't. -The pleasure center lit up. - People really liked the song. -After they asked them to do a short survey about how they liked the song. What were the results of the brain scans vs. the results of the self-reported surveys? Which one was better at predicting future record sales? -Brain data was more helpful and much more strongly correlated with the results of the song's success. -They didn't find any correlation with the survey data. Reasons? People like songs that are popular and won't admit it so they answered that they didn't like a song when they did.

Informal Planning

-Non-written, generally for smaller businesses, more day-to-day

Habits all Teams should Avoid

-Not speaking candidly and openly -There will be bumps in the road (Winston Churchill) -Avoid the "unsaid" thing -Protect against complacency (Judge Louis Brandeis quote) -Peter Lencioni, The Table Group - 'cool' model ??

Analysis Paralysis

-Occurs when someone goes into an emotional state of over-analysis (or over-thinking) a situation so that a decision or action is never taken, in effect paralyzing the outcome -"Perfect" decisions are the enemies of timely ones. -The 70% solution (debate to 'good enough') -Better a good decision quickly/timely than the "best" decision too late. -"A good plan executed now, is better than a perfect plan next week." - General George Patton

Participation (4th P of Effective Meetings)

-Often, examine the Team Charter (i.e. decision rules; respect, etc.) -All team members: encourage & enable participation -Summarize: decisions; progress & key points discusses; tasks assigned; next meeting (consider a STANDARD day/time) -Look for equity NOT equality (Not everyone in every meeting needs to talk an equal amount of time or be the keynote speaker)

Communication and Decision-Making Stage (2nd stage of Formal Group Development)

-Open and frank communication -This open environment aids decision

What is management?

-Organization and coordination of the activities of a business in order to achieve defined objectives. -4 parts are planning, organizing, leading, and controlling.

Be Watchful for Role Performance Problems such as:

-Overlapping responsibility or Role Ambiguity -Role Conflict - set the stage early... -Role Overload - balance activities -Role Underload - challenge yourself -Responsibility Gap - talk about the new things which will undoubtedly arise over the project

Secondary Research

-Past research which has already been performed and often already published -Internal (company) & external market analysis

Conceptual skills

-Picture organizations as a whole and leverage the relationships among its parts -How do we fit in as a company and how can we compete and beat the competition?

Planning in terms of management

-Planning is the primary management function -Planning is the foundation of the management process -An old management adage is the 5P's = Proper Planning Prevents Poor Performance!

How does planning improve organizational performance?

-Positive financial results - Higher profits, higher return on assets, and so forth -The quality of planning and implementation affects performance more than the extent of planning -The external environment (i.e. changing regulations) can reduce the impact of planning on performance -The planning-performance relationship seems to be influenced by the planning time frame

Controls Are Applied To All Aspects of an Organization ...

-Processes - the many functional ones executed across the organization towards the achievement of organizational objectives -Quality of output -Financial processes -Resource allocation and utilization Organizational & employee behavior: -Driven by: shared values, norms, traditions, ritual, beliefs, which permeate the organization (i.e. "got a minute"; the "blue blazer") -Work-related behaviors which are the 'generally accepted ones'

Marketing Mix: 4P's of Marketing

-Product, Price, Place, and Promotion -- the fundamental elements that comprise the marketer's tool kit that can be developed in unique combinations to set the product or brand apart from the competition. -Marketers use the "Marketing Mix" to accomplish the activities outlined in the AMA definition and create value. -Like a puzzle, the Marketing Mix MUST fit together. You can't think about each "P" independently. For example, only considering product without factoring in price. If you make a change to one "P", you have to think about the impact of that on the other Ps! (Tom Ford example about making a cheap clothing line for men)

#4: Implementing the Chosen Alternative (4th Step of the Rational Model for Decision-Making)

-Put the chosen alternative into action (project plan, etc.) -Importance of understanding ability to implement (available resources, timeframes, etc.) -Decisions must receive support if they are to succeed.

Plan (3rd P of Effective Meetings)

-Read the agenda & supporting attachments -Prepare your direct deliverables -Think about your contribution to all agenda items

3. Internal Analyses: Resources, Capabilities, Core Competencies - (Six-Step Process for Formal Planning in Organizations & the Strategic Management Process)

-Resources: tangible (factories) and intangible (intellectual property) -Capabilities: organizational processes and routine -Core Competencies: an organization's 'main things' (brand management; innovation; manufacturing; etc.) usually 3-5. Examples: -Comcast: networking effect, one-stop shopping -Ikea: good value, affordable but trendy/good quality -Netflix: Netflix originals, no advertising -Recall value of a SWOT (sums the external and internal analyses: Exploit organization strengths and external opportunities; Adjust to external threats and identified critical weaknesses.

We define Marketing ALSO as:

-Satisfying customers needs in a profitable manner that allows the company to sustain itself -Create value, communicate, deliver, and exchange it -Both the organization and customer want value -Responsibilities of marketers include advertising, branding, public relations, etc.

Some Marketing trends discussed in class:

-Saweetie line (promotion: celebrity endorsement) -Rise of Shopify (place because it facilitates the delivery of getting small business products to the customer) -Megan the Stallion Savage TikTok dance. In this example, entertainment and/or self expression is the value being created, it is communicated and delivered through the platform TikTok, and the exchange is famous TikTok creators provide you with entertainment and watch, like, follow, and share it, in exchange. -President Xi of China created a marketing campaign about youth patriotism. He wanted people to be proud to be Chinese. This demonstrates that you can market an IDEOLOGY. The point is that tangible items are not all that can be marketed! Everything can.

1st Part of Management: Planning

-Setting goals -Developing strategies to reach goals -Determining resources needed 1) People - Managers have people at their disposal as a resource. This is one of the biggest resources and that's why 60-80% of operating expenses are for compensation/people. 2) Capital (money)

Chart about understanding how external factors impact marketing strategy:

-Shows the external factors surrounding the 4P's which is surrounding the Target Segment. -External factors include Sociocultural, Competitive, Economics, Political, Natural, Demographic, and Technological. (7)

1. Mission - (Six-Step Process for Formal Planning in Organizations & the Strategic Management Process)

-Statement of the organization's purpose (Ex: Team Charter)

Six-Step Process for Formal Planning in Organizations & the Strategic Management Process

-Strategic management process enables the formation & implementation of the firm's strategies and related goals & objectives. -Defines how an organization intends to perform, its overarching plans! Six-Step Process: 1. Mission 2. External Analyses: Opportunities & Threats 3. Internal Analyses: Resources, Capabilities, Core Competencies 4. Formulation of Strategies 5. Implementation of Strategies 6. Evaluate Results

6. Evaluating Results - (Six-Step Process for Formal Planning in Organizations & the Strategic Management Process)

-Strategies effective?; progression to goals? -PESTEL or SWOT assumptions & conditions change? -Course corrections?

Market Penetration

-Take a greater share of an existing market with an existing product (current products, current markets) -Sell more of this product to existing customers Examples with this strategy: -Increasing brand awareness in some way -Advertising more -Repositioning a feature or new benefit (Example: Emphasising that Cheerios are heart-healthy) -Aggressive price promotion -Having sales -Increasing distribution channels/Enhancing distribution network (Example: Starbucks partnered with hotels and airports, while also creating drive-throughs. These actions gave people more ways to get Starbucks. Because it became so easily available, people who ALREADY like Starbucks will buy more)

Cross Functional Teams (Organizational Team)

-Team assembled from different functional areas of the organization, all focused on a specific objective(s) -Includes people from finance, marketing, operations, Human Resources, etc. -Can be self-managed -Examples include: Building a marketing plan, improve cost structure for given products and services, manufacturing operations due to portfolio changes, contingency programs, etc.

Things to keep in mind when considering how the team will be managed:

-Team meetings - 'running meetings' -Decision Making protocols - 'deep-dive' discussion -Team Communications - in and outside meetings -Team & Individual Responsibilities & Accountabilities (Select the roles and be ready to adapt and evolve over the semester) -Determine Process Roles: Leadership, Facilitator, Scribe

Based on the product-market expansion grid, for Diversification, when are companies more likely to engage in diversification? What type of companies?

-Tech? More opportunities -Beauty/skincare (types of products)

Market Fragmentation

-The creation of many consumer groups due to a diversity of distinct needs and wants in modern society. -Diverse interests and backgrounds of individuals create greater diversity in needs and wants. -Not everyone needs or wants the same thing

Triple Bottom-Line Era (4th Era of Marketing)

-The most successful companies operate in this era. -Played "I don't have money on my mind, I do it for the love" by Sam Smith -> Mentality: Companies have goals in addition to the consumer Successful companies must meet 3 goals: -Financial (profit) -Social (people) -Environmental (planet) -Good companies might be in the relationship era, but great/successful/top companies are in this era. -They understand the priority of meeting the bottom lines. -Marketing is about making that profitable exchange that creates value. Real-life example: GSK operates in the Big Pharma industry. It is a Fortune 100 company that does a lot of philanthropy + good work. Why? In addition to ethics, tax write-offs, being innovative, good PR, and helping them operate in other countries because of goodwill, this allows them to have a sustainable competitive advantage.

What is the value of committees?

-They enable organizations to exchange ideas -Generate suggestions and recommendations to many areas of the organization...policies, etc. -Develop new ideas for solving existing organizational problems -Improve the quality of decision-making (representation)! -Vehicles to increase organization participation -Can promote employee social and self-esteem needs -Bigger companies usually have more committees, while smaller companies usually have less.

Unstructured Situations/Non-programmed Decisions

-Unique, non recurring solutions for unique situations -Tends to be no precedent; nothing 'off the shelf' Examples: -Developing new organizational strategy -Contingency & Black Swan events -Certain mergers, acquisitions, divestitures (The #1 reason mergers and acquisitions fail are due to differences between the senior leaders and company culture) -Etc.

What motivates the need to do marketing research?

-Usually when there is a problem with sales or something else -But not always a problem that motivates it. -It can also be motivated by the need to evaluate and improve. -Example: Dominos used self driving cars to deliver pizza and then recorded people's responses. This was to do market research. Some people were delighted and some were confused or put off to it. Dominos was motivated by the need to evaluate and improve.

#7 Six Hats Thinking Technique (Techniques)

-We did this with the Pizza parlor case -Challenges your instinctive approach to decision making, i.e. if you tend to be optimistic or risk-averse. -Challenges you to think/look at things from six different perspectives. -It introduces creativity, resiliency in decision making -Reminder: Rotate hats!

Mission Statements

-What an organization actually does - externally focused, clear & direct, -What do they really do Examples of Mission Statements: Google: Mission is to organize the world's information and make it universally useful and accessible Amazon: To build a place where people can come to find and discover anything they might want to buy online. GM: Mission is to earn customers for life by building brands that inspire passion & loyalty through not only breakthrough technologies but also by serving & improving the communities in which we live & work around the world.

Analyzing Perceptual Maps

-What position do we claim in customers' minds? What about our competitors? -Which position (ours vs. competitors) is more valuable? -Where is the most/least valuable position in customers' minds? -Which brands occupy the most valuable spaces? How vulnerable are they? -Which brands come closest to our position? -How crowded is our position? -How do we compare to our closest competitors? -Which brands are likely to encroach on our position over time? -Which areas of the map are not claimed by anyone? How valuable are these spaces? What would it take for us to position ourselves in those spaces?

5. Implementation of Selected Strategies - (Six-Step Process for Formal Planning in Organizations & the Strategic Management Process)

-What, Who, When, Resources Required, Timeframes

What are the 4 Formal Group Development Stages?

1) Acceptance stage 2) Communication and Decision-Making stage 3) Group Solidarity stage 4) Group Control stage.

3 levels of planning

1) Corporate strategy (broadest) 2) Functional strategy (ex: Marketing or Finance are types of functions and each has a strategy) 3) Operational strategy (narrow focus)

3 Ways to Segment the Market (1st Step of the Target Marketing Process)

1) Demographics -Age, gender, family life cycle, income, and social class, ethnicity, place of residence (geography), etc. -Segmentation based on observable characteristics of the population. -Used first usually because it is easily identifiable and obvious -Example: Segmenting by Gender -> Many differences when it comes to marketing skincare, medicine, hygiene. Gone wrong in the Ellen example with "Doritos for Her." It was not heterogeneous between because both men and women like chips 2) Psychographics -Segmentation based on shared psychological & sociological similarities such as shared activities, interests, and opinions (AIO's) or shared beliefs and values and lifestyles. -AIO: Activities, Interests, Opinions (means psychographics) -Organic chicken example (shared opinion): video about using GPS to show how free range they are 3) Behavior -Segmentation based upon how consumers behave toward a product, including their usage rates and brand loyalties. Marketers use multiple segmentation variables to paint a complete picture.

Simple Questions to avoid the 5 Dysfunctions of a Team:

1) Do team members openly and readily disclose their opinions? 2) Are team meetings compelling and productive? 3) Does the team come to decisions quickly and avoid getting bogged down by consensus? 4) Do team members confront one another about their shortcomings? 5) Do team members sacrifice their own interests for the good of the team?

Steps of Targeting (2nd Step of the Target Marketing Process)

1) Evaluate Market Segments -A viable market segment should: 1. Have members with similar wants and needs that are different from those in other segments. 2. Be large enough to be profitable. 3. Be reachable by marketing communications. 4. Have needs the company can address. COST RESTRICTIONS, LEGAL RESTRICTIONS MAY POSE CHALLENGES TO MEDIA REACH (children being targeted banned in Norway example + e-cigarette example where they were banned from advertising on networks (US) ) 2) Choose Targeting Strategy -Chart shows mass marketing, differentiated marketing, niche marketed, and individual marketing (broad to narrow) -Which strategy should you choose? 1) How much money and manpower do you have? concentrated + undifferentiated costs are cheaper because it is either one segment OR one size fits all. 2) Is it a newer product or something that's been around for a while? usually when a product is introduced as time goes by it becomes more differentiated, but early on it probably doesn't make sense to do a differentiated approach. 3) How much market variability exists? If your audience is more homogenous -> undifferentiated. Know if there is a need or heterogeneity. 4) What are your competitors doing? Undifferentiated could be detrimental if there are competitors with lots of options. Maybe you could do differentiated too or niche to steal customers.

5 Main Stages of Team Development

1) Forming 2) Storming 3) Norming 4) Performing 5) Adjourning -Generally sequential in nature due to development of relationships, leadership, various roles, etc.

4 Primary Reasons for studying groups

1) Groups exist in all kinds of organizations 2) Groups inevitably form in all facets of organizational existence 3) Groups can cause either desirable or undesirable consequences within the organization 4) Understanding groups help managers increase probability groups which will cause desirable consequences in the organization?

Effective segmentation results in groups that are??? (bookmark!)

1) Homogenous within 2) Heterogeneous between If you effectively segment your market, it will result in groups of customers that are homogeneous within. Their needs and preferences are similar. Effective segmentation also means there needs to be heterogeneity between meaning when in subgroups, they must be different in some way too. Both groups want the product but maybe each for different reasons. Example: two types of people who both have a gym membership (socializers or body builders)

The Balanced Scorecard Approach to Controls - Leads to Competitive Advantage

1) How do shareholders view us? 2) What core competencies do we need? 3) How do we create value? 4) How do customers view us? (Competitive Advantage in the center of these questions)

Evolution of Marketing Stages

1) Production Era 2) Selling Era 3) Relationship Era 4) Triple Bottom-Line Era

The 5P's of Effective Meetings

1) Purpose 2) Participants 3) Plan 4) Participation 5) Perspective

Try and place these on the product-market expansion grid:

1) Snickers introduces an aggressive ad campaign encouraging people to eat more Snickers by substituting it as a snack. -> Market Penetration 2) Supreme collaborates with Air Jordan to introduce a new line of clothing and shoes aimed at a different and more youthful segment than it presently serves. -> Diversification, related 3) Canon began by making cameras for customers (for day-to-day use). It later began manufacturing photocopy machines for industrial clients (large companies) -> Diversification, related

Components of the Team Charter

1) Team Name (be creative!) 2) Mission/Purpose - Goals - Objectives - Milestones: -Objectives = SMART Model: Specific, Measurable, Attainable, Relevant, Time-bound -Milestones: build your initial 'look-ahead' (from charter to client presentation) 3) Values & Norms the team deem most important 4) Team roles/responsibilities/ org. chart - matching process -Org chart is the skeleton of the team, a visual representation 5) Team Operations - Decision Making Process and Rules 6) Operations continues - meeting times, communications, rules, etc. 7) Negotiation & Empowerment - ensure inclusion and understanding. (How are we going to agree and disagree) 8) Assessment of Team Effectiveness Statement - plan to 'keep, stop, start' activities -Periodic 'check-point,' leverage TeamHelper surveys -Achievement of Team goals -Effectiveness of Team process 9) Signatures - all must sign on a signature page. It is a statement that we understand the importance of the document.

What are the 5 Key Elements in the Decision Situation?

1) The Decision Makers themselves -Individuals or Groups who actually make the choice among the alternatives. Orientations (undesirable, to be aware of) for Decision Makers: -Receptive: pushes down, maybe too much -Exploitative: not sharing credit -Hoarding: isolated, too self-reliant -Marketing-Oriented: enhance their value 2) Goals to be Served -Should be aligned with organization's objectives 3) Relevant Alternatives -At least 2 feasible ones for solving existing problem and implementation 4) Ordering of Alternatives -Ranking most desirable to least desirable; objective and subject process 5) Choice of Alternatives -Actual choice among available alternatives

Responsibility for Making Organizational Decisions: What 2 factors determine who should make a decision?

1) The Scope of the Decision 2) Level of Management

The 4 Characteristics of Effective Meetings

1) They achieve the meeting's objective 2) They maximize the use of time 3) They leave participants with a sense of process (When the meeting is over, the group will be clear on ...") 4) They leave participants with a sense of engagement and inclusion

Qualities of Effective Control

1. Accuracy - sources, audited ... 2. Timeliness - information quickly to stay the course or adjust 3. Flexibility - respond to changing conditions 4. Understandability - check in with your Team -Reasonable criteria -Emphasis on exceptions -Multiple criteria -Corrective action

Steps in the Marketing research process

1. Define the Research Objectives -Specify the research objectives -Identify the consumer population of interest -Place the problem in an environmental context 2. Determine the Research Design -Determine whether secondary data are available. -Determine whether primary data is required (Exploratory, Descriptive, or Casual) 3. Choose the Method to Collect Primary Data -Determine which survey methods are most appropriate: (Mail questionnaires, Phone interviews, Face-to-Face interviews, Online questionnaires) -Determine which observational methods are most appropriate (Personal observation, unobtrusive measures, mechanical observation) 4. Design the Sample -Choose between probability sampling and nonprobabillity sampling 5. Collect the Data -Translate questionnaires and responses if necessary -Combine data from multiple sources (if available) 6. Analyze and Interpret the Data -Tabulate and cross-tabulate the data -Interpret or draw conclusions from the results 7. Prepare the Research Report In general, the research report includes the following: -An executive summary -A description of the research methods -A discussion of the results of the study -Limitations of the study -Conclusions and recommendations

#3: Adjustments/Corrections For Variance To Plans

1. Do Nothing; Learn - variation is acceptable; or, clearly due to an extraordinary event is significant 2. Take action to correct the performance: i.e. trainings 3. Revise the standard: unrealistic?, too aggressive?, too lenient? 4. Revise the workplan: environment may have changed; hence, adjustment need to be made to your underlying assumptions Target, Best Buy, IKEA - under or over forecast on 'pandemic' related purchases?

Recap of the 5 Stages of Team Development

1. Forming - formalities to acquaintances 2) Storming - individuality to early consensus 3) Norming - task and relationship management 4) Performing - execution, open & trusting 5) Adjourning - transition, relationships... (might not be linear)

Three Steps to the Control Process:

1. Measuring Actual Performance (business activities) 2. Comparing Actual Performance Against Expectations (a set standard) 3. Management Takes Action to Correct Any Variances Value of Controls: critical link in management planning processes; empowering employees; protecting the workplace & its assets

Why do Managers plan? Name the 4 reasons for planning:

1. Provides direction - where an organization is going and what must be done ... 2. Reduces uncertainty - consider the environmental conditions, impact of change ... 3. Minimizes waste and redundancy - understand and efficiently use the available resources ... 4. Sets the standards for controlling - progression, on-target?

Planning Process - Key Steps (aligns with Decision-Making Process!)

1. State the organizational goals & objectives: be clear, be concise! 2. Develop alternatives for reaching objectives: initial list 3. Develop the underlying rationale which might support each objective -List key assumptions for each objective (i.e. derived from research) -Understand the risks! 4. Choose the best alternative for reaching objectives: prioritize -NGT, Six Hats, other techniques to evaluate and assess feasibility -Importance of context ... 5. Create integrated plans to pursue the goals & objectives: -Strategic (longer range, at the corporate level) -Tactical (shorter range, more operational/functional arena) 6. Implementation - "brilliant strategy, but can you execute?" 7. Monitor, Evaluate Performance: -On Schedule, Scope, Budget? -Ability to reassess & institute "course" correction(s) -Celebrate achievement (... at the end, and along the way!)

Types of Data

2nd Data -Start with 2nd Data!!! Information that already exists and was collected by someone else for some other purpose. It exists but not for the purpose of your goal. It is cheaper and saves time. Time and Money is a benefit. -Downside: Might be close to what we want but alone it probably won't give you exactly what you are looking for. You also have to be very careful and use high quality, unbiased, and vetted secondary data. Lots of things are fake news or opinion not fact. -Types: Internal: Financial statements, old reports & surveys, sales data, etc. External: Trade reports, competitor sales, external studies, etc. 1st Data: Information that is newly collected by the researcher for the purposes of the project

What type of team will you be developing?

??

Is there a need for different organizational models?

???

Market Segment

A group of people within that mass market that are somehow different from others. For example, the market would be everyone who is interested in clothes/fashion, but they can be divided into segments by people interested in sustainable fashion, couture, fast fashion, etc.

Risks of Traditional Goal-Setting - Need for Effective Communications and SMART!

A problem with traditional goal-setting is that when top managers define the organization's goals in broad terms - such as achieving "sufficient" profits or increasing "market leadership" - these ambitious goals have to be made more specific as they flow down through the organization. Managers at each level define the goals and apply their own interpretation and biases as they make them more specific. However, what often happen is that clarity is lost as the goals make their way down from the top of the organization to lower levels. Exhibit 8-2 illustrates what can happen: Top Management might say their goal is to improve the company's performance, then it might turn into "increase profits" then to "don't worry about the quality, just work fast."

Management information system (MIS)

A system (general term) used to provide management with needed information on a regular basis Ex: Information security; data analytics; AI

Disregarding Team Objectives (5th Dysfunction of a Team)

A team that focuses on "collective results": -Enjoys success and suffers failure acutely -Avoids distractions -Laser-like focus on mission statement and goals "Team members naturally tend to put their own needs ahead of the collective goals of the team when individuals aren't held accountable" - Lencioni

Avoiding Team Accountability (4th Dysfunction of a Team)

A team that holds one another accountable: -Together, we get better! -Ensures that poor performers feel pressure to improve -Establishes respect among team members who are held to the same high standards -Avoids excessive bureaucracy around performance measurement and corrective action -Individual accountability AND Mutual accountability

Perceptual map

A technique to visually describe where brands are "located" in consumers' minds relative to competing brands. How does your brand stack up to the other brand people are comparing you against?

Leverage

Ability to create value by utilizing/leveraging resources. On a committee, you can do this.

Gantt Chart Example

Activity Description: 1. 1-week: Decide on new location and lease the office 2. 5-weeks: Hire new workers (assume you will use the new office) 3. 1-week: Arrange for furnishings 4. 2-weeks: Install the furnishings 5. 1-week: Arrange for phones 6. 1-week: Install the phones 7. 2-weeks: Move into offices

Evaluation of Group Decision Making Processes: Name pros/cons to the techniques.

Advantages: -Brainstorming: Many useful ideas are possible -Nominal Group Technique: Input can be offered without fear of retribution -Delphi Technique: Ideas gathered from individuals geographically separated from one another; technology mitigating use ... -Multi-voting and Devil's Advocacy are enduring ... Disadvantages: -Brainstorming: Time wasted on impractical ideas -Nominal Group Technique: Cannot discern why individuals voted the way they did -Delphi Technique: Unable to ask questions of one another

Group Decision Making & Techniques

Advantages: -More and better alternatives -Draw on collective experiences and knowledge -Individuals tend to support decisions when they have had input to the decision -Group members tend to identify decisions as their own and have a feeling of ownership Disadvantages (things to watch out for ...): -Takes longer for groups to make decisions -Costs increase because of the additional time of people involved in the group -Lower-quality decisions if group members' focus is on relationships and friendships among themselves -Groupthink: Negative impact of group decision making

Mass Market (aka "the market")

All the people who are interested in your offering regardless of their specific needs or wants. Everybody who is a potential buyer.

Consensus

An agreement by all individuals involved in making that decision. Balance team engagement vs. time-consuming and cost.

At the broadest, marketing is...

An exchange in value. Not necessarily money! For example, with politics, people exchange votes for a person they want in leadership. Another example, we don't pay for Instagram with cash but instead invest our time, actions, privacy, etc. in exchange for social connection, entertainment, content, etc. - No free lunch!

Intuition Based Decision Making

An individuals inborn ability to synthesize information quickly and effectively has its place depending on the situation!

Means of Differentiation

Any product or service benefit that can serve as a point of difference for a brand. Product differentiation: -Features, quality, durability, style & design, customization Services differentiation: -Ordering ease, delivery, installation, customer training and support, maintenance and repair, returns, financing, etc. Make your differences count! -Important -Distinctive -Superior -Affordable -Profitable

Management Understands the Effect of Goals On Performance ... Recall discussion on SMART Goals!

As goals go from easy goals, to general goals, to difficult goals, to smart goals, the performance increases to "high."

What would be some KPIs to use if you wanted to measure online engagement with your brand?

Aside from market share and sales, -New subscriptions to emails -Time spent on digital content -Email open and click through rates -Landing page bounce rate (number of users that visit and leave after the first page) These measure how engaged people are with your brand! Marketing research is where we get this information from!

Points of Parity

Attribute/benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands Examples in terms of cars: -GPS -Safety features -Fuel -Air conditioning and heat -Radio, bluetooth, entertainment systems

Control

In an experiment, the standard that is used for comparison. Be able to evaluate so you can adjust.

Primary Research(and the types)

Conducting research to collect new data to solve a marketing information need. Exploratory Research -Customer Interviews -Focus Groups -Projective Techniques -Case Studies -Ethnographies Descriptive Research -Cross-sectional -Longitudinal Casual Research -Laboratory Research -Field studies

Recall: Why is running great meetings important?

Because they are where DECISIONS get made! Decisions are turning points: the end of deliberations and the beginning of actions! Decisions are an inevitable part of life -Right decisions are a process -Wrong decisions are inevitable -But poor decisions are 'unforced errors'

From article, How does shelf placement impact sales?

Brands that sell the best are placed on "eye-level shelving."

Groups

Broadly defined, any number of people (can be employees) who: 1) Interact with one another 2) Are psychologically aware of one another 3) Perceive themselves to be a group

What is the power of teams?

By learning about teams and teamwork... -You can learn techniques to become a more effective team member -How to function more effectively in team settings -Reinforce the value and benefits of engaging in teamwork -Establishing and achieving goals and objectives!

Sherman Antitrust Act

First federal action against monopolies.

Experiments

Causal research (experiments) attempts to identify a cause-and-effect relationship between two factors. The basic goal of any experiment is to answer, "How does X impact Y?" Can be lab experiment or field experiment (how does x impact y): Field -Field are in the field like the grocery store example -Like ethnographies, they go out in the field and observe, but with an experiment, they change stuff and see how it impacts -Benefits: natural environment where people make decisions -Downside: Because you're in the natural environment, there is a lot out of your control Lab experiment -Bring people in and control all things possible (temperature, day, etc,) -Benefit: Since everything else has been controlled for, they are more confident in the factor they were testing -Downside: Not a natural environment Results of our in-class experiment: Bright colors excite and promote impulsiveness. Proved by Mcdonalds - quick in and out. White and pastels slow people down. Proved by expensive restaurants that are dimmed and slow down to buy more.

Figure 8.2: Level of managers responsible for making decisions as decision scope increases and becomes more complex ... access to information, etc. - Recap

Chart shows: -Lower-level management makes decisions on a narrow decision scope. -Middle-level management makes decisions on an intermediate decision scope. -Upper-level management makes decisions on a broader decision scope. (More responsibility) Explanation: -As you get from lower to upper level management, you have more responsibility and more non-programmed decisions. -It make take months or years for the results of your decision to play out (ex: expanding into new markets, etc.)

Planning & Goal Setting in the Hierarchy of Organizations

Chart that goes from the top to bottom in this order: Overall Organizational Objectives -> Divisional Objectives -> Departmental Objectives -> Individual Objectives

Definition of a Decision

Choice between two or more available alternatives

Ethnography

Collecting data about an issue by observing people in their homes or natural environments (as they use products & services). You don't interfere or manipulate anything IRB: Review board to protect the interests of people Good to use under 2 circumstances: 1) When people are unwilling to respond truthfully -Batra's Bacardi study: What role does alcohol play in the lives of young adults when they are socializing and what are their consumption choices? -Worst way to collect this info: public interview because the topic can be taboo. Instead, she went to parties and bars to do ethnography. Talked to bartenders, made friends, etc. -Found that the bartender is the one who decides most of the time what rum to give, etc. (key decision-maker) 2) When people are unable to respond -Maybe because they don't know about the situation or don't know why they do what they do -Example: The 1st Copy machine. When they tried to learn why people don't like it, people gave no concrete way to improve the machine. -Instead, they are unable to articulate what they find confusing about the process. So, surveys didn't get them very far. -Instead, they put cameras to watch people in an ethnographic study Must explore the other types of exploratory research in book!

Feedforward control

Control that allows managers to anticipate problems before they arise/before an activity begins. Feedforward controls require timely and accurate information that isn't always easy to obtain, so managers frequently end up using the other 2 types of control! Most desirable; anticipates & preventative I.e. advanced research on market opportunities (will consumers adopt) Example: Scheduled preventative maintenance programs on aircraft done by major airlines

Feedback control

Control that takes place after a work activity is done. i.e. error rates; financial performance

Concurrent control

Control that takes place while a work activity is in progress. i.e. Google monitoring online ads

What is Control? (context of Management theory & practice)

Control: Management function that involves monitoring activities to ensure that they're being accomplished as planned and correcting any significant deviations. How do you know a control system is effective? Look at whether Goals & Objectives are being achieved!

Strategy

Creating a strategy is like creating a plan for how your company will operate and grow.

Information

Data converted into a meaningful and useful context Information, like cashflow is the life-blood of any organization!

Example of Data/Insights/Actions

Data: -1000 surveyed women, 75% said they rarely shop alone. 90% said that they take along 1 or more friends when shopping for clothes. What are the insights that stem from this data? -Women like opinions -It's a socializing event for them What does it mean?/Action: -Stores have cafes -Make it really shareable online for opinions -Interactive salesperson

Data vs. Insights vs Action

Data: Raw and transformed information that you gather from your research Insights: The sense you make of information you gather; in a meaningful way Action: The marketing implications (tactics, strategies) that stem from these insights

Planning

Defining the organization's goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities.

#6 Delphi Technique (Techniques)

Delphi Technique (a little bit dated): Step 1: Problem is identified Step 2: Group members offer solutions through anonymous questionnaire responses Step 3: Responses are compiled and sent out to all group members Step 4: Individual group members select solution derived from Step 3. Step 5: Process repeats until consensus solution is reached Note: Group members do not have to meet face-to-face

Operational Strategy (Detailed, Shorter time horizon)

Detailed plan of day-to-day activities that will accomplish strategic and functional plans. Then, let's measure to see if we did what we wanted to!

How are the activities different?

Different size companies and different industries can have different structures, sizes, goals, values, resources, etc.

Why Do We Need to conduct Market research?

Displayed through the Febreze Example! Proctor and Gamble released Febreze, a new and revolutionary product in the early 2000s. It was the first product that is chemically formulated to neutralize and absorb bad odors. The obvious users would be pet users, people with kids, etc. Proctor and Gamble thought this too and did not do market research. They launched ads with pets, cooks, etc in mind. But Intuition isn't always right! The product bombed and was not successful. After doing market research, they realized that people were nose blind. So they didn't know it smelled bad and became desensitized to their environment. Then they added an artificial smell so people could sense the difference and sales were getting better. They did more research and they have another unexpected finding: it was more popular in the homes of neat freaks. This is because these clean freaks treated it as a reward. They clean everything and see the visual reward but this is another type of reward that tells you you did a really good job cleaning. They are not like candles or sprays that mask the smell, this neutralizes and takes the smell away. It is always important that decisions are not made entirely with intuition!

Economic Environment

Economic factors that affect consumer purchasing power and spending patterns. Examples: -State of the overall economy? Recession? Depression? -Inflation -Unemployment -Changes in discretionary income levels & purchasing power -Changes to a firm's cost structure (e.g. cost of raw materials, etc.)

Team Membership

Effective teams strive to do 2 main things: 1) Work to accomplish the tasks that have been assigned. (Ensure progression to team goals on time) 2) Work to build unity and collaboration (relationships) amongst all team members. The value of the T-P survey is a good early team building exercise!

Triangle Chart Example

Emotional Connection & Values (top of triangle) Benefits Concrete Attributes (bottom of triangle) As you go up, there is increasing difficulty for competitors to copy. Also, there is greater loyalty and higher price premiums.

Things to Encourage and Discourage in teams?

Encourage: -Listening and responding constructively to the views expressed by your teammates -Open-ended discussions and active problem solving at meetings Discourage: -Group-think -Not all members contributing; dominance by an individual

Special projects as assigned

Even if you're in finance, you might still need to help in other areas and support other aspect of the team as projects ebb and flow.

#2: Range of Variation: financial performance: +/- 3% of specs.

Exhibit 15-3 Acceptable Range of Variation Next comes the step in which we compare the actual performance to the standard. Although some variation in performance can be expected in all activities, it's critical to determine an acceptable range of variation, as seen here. Any deviations outside this range require attention.

#2: Comparing Performance to Goals

Exhibit 15-4: Example of Determining Significant Variation: Green Earth Gardening Supply—June Sales This shows both the sales goals (the standard) and actual sales figures for the month of June. Sales were a bit higher than targeted, but does that mean there were no significant deviations? It depends on what the owner thinks is significant, that is, what is outside the acceptable range of variation. Shows both overvariance and undervariance may require managerial attention, which is the 3rd step in the control process. Percentage variance is missing to make it relative!

Controls: Keeping Track of an Organization's Finances: Ratio Analysis (bookmark!)

Exhibit 15-6: Popular Financial Ratios - (company, competitor, industry analysis) Shows Liquidity, leverage, activity, and profitability ratios. Some key areas that require control are finances, company information, and organizational performance. A balanced scorecard approach may be used. For a company to earn a profit, managers need financial controls. Traditional financial controls include ratio analysis. Ratios, like the ones in the table, are calculators using selected information from the organization's balance sheet and income statement.

Types and Timing of Control: another way to 'think about' & institute controls:

Exhibit 15.5: When does control take place? 1) Input (Feedforward control / Anticipates problems) 2) Processes (Concurrent control / Corrects problems as they happen) 3) Output (Feedback control / Corrects problems AFTER they occur) A few important performance indicators that executives in the intensely competitive call-center service industry measure are: cost efficiency, the length of time customers kept on hold, and customer satisfaction with the service provided. To make good decisions, managers want and need the type of information that will help them control work performance.

Data Centers

Facilities that store, manage and disseminate data and house a network's most critical systems. Data centers can serve either as a centralized facility for a single organization's data management functions or as a third-party provider for organization's data management needs. Ex: hardware; software; accessibility

#3 Brainstorming (Techniques)

Figure 8.7: The Brainstorming Process Step 1: Group members state ideas (no comments on ideas at this stage). Step 2: Group leader records each idea where group can read it. Step 3: Ideas evaluated only after all have been recorded. ...then, consider multi-voting!

Amazon Positioning Statement (Example)

For consumers who want to purchase a wide range of products online with quick delivery. Amazon provides a one-stop online shopping site. Amazon sets itself apart from other online retailers with its customer obsession, passion for innovation, and commitment to operational excellence. (WHO, WHAT, COMPARE)

Technological Environment

Forces that create new technologies, creating new product and market opportunities

What are the two typical types of groups in an organization?

Formal Groups and Informal Groups

So, How Do Leaders & Managers Set: Goals, Objectives, and Plans?

Goals = Desired outcomes or targets for individuals, groups, or entire organization; written down; clearly communicated; outcomes vs. actions Objectives = Desired outcomes or target, more specifically stated; means to measure progress -Remember SMART! Plans = Documents that outline how goals are going to be met -Resources, schedules, finances, etc.

Goals vs. Objectives

Goals state general targets to be accomplished. Objectives state what is to be accomplished in specific and measurable terms by a certain target date

Type of Goals & Objectives

Goals: Financial Goals: Related to the expected internal financial performance of the organization. Strategic Goals: Related to the performance of the firm relative to factors in its external environment (i.e. competitors; markets). Objectives: Stated Objectives: Official statements of what the organization wants the public to believe; or, originally intended to pursue Real Objectives: Objectives that the organization actually pursues; defined priorities! What can cause differences between stated and real objectives?

What should good managers do in terms of monitoring groups within in their organization?

Good managers should know what groups exist within their organization and what membership characteristics exist within those groups. Also, they must understand how informal groups evolve.

Target Market (aka target segment or target audience)

Group of people you choose to do business with. For example, you choose to pursue the fast fashion market segment to target.

Groups vs. Teams

Groups -Number of people interacting with one another -Psychologically aware of one another -Think of themselves as a group Team: a specific type of group! -Group whose members influence one another toward accomplishing organizational goals and objectives -Pervasive throughout most organizations The major difference between a group and a team is that groups interact/discuss and are goal-oriented, while teams have a specific objective.

Team Decision-Making Pitfalls

Heuristics & Biases! 1) Heuristics: simple rules of thumb to make decisions. (lack of data, non-programmed, risk rises) 2) Biases: making decisions based on rules of thumb and in doing so, introducing flaws/decision-making biases Substantial research indicated both lead to flawed decisions!

Corporate Strategy (Broader, Longer time horizon)

High-level matching of the company's resources and capabilities with opportunities.

Contemporary Issues in Planning for Management:

How Can Managers Plan Effectively in Dynamic Environments? -In an uncertain environment, managers should develop plans that are specific, but flexible. -Scan - Monitor - Forecasting the 'environments' -Managers need to recognize that planning is an ongoing process! How Can Managers Use Environmental Scanning? -Detect emerging trends? -Gathering information about competitors - allow managers to anticipate their actions rather than merely reacting to them.

Something all firms must plan for?

How do we grow? -How you choose to grow will impact every aspect of the marketing mix. -In your corporate strategy, you must figure out what to grow and how to grow. We are focusing on the "how" right now.

How to know what areas you need to develop?

Identify them and make a plan for addressing them.

Purpose (1st P of Effective Meetings)

Importance of an Agenda - stick to the agenda! -Purpose/results expected; Sequence; Time-box topics; Date & Time of Meeting; Place -Publish in advance at least 1 day (communication channels?) -Relate directly to your charter - Project timeline! Hold a meeting when: -Information sharing & Idea generation -Charter/Plan development & Commitment building -Discussion & Feedback -Problem solving & Brainstorming Status reports? Use an email! Late-comers? Don't spend time recapping!

Decision Making Tools & Techniques (Examples/Types)

Important for individual vs. group decision-making considerations! 1. Decision Rules System: Votings 2. Probabilistic Systems 3. Brainstorming 4. Nominal Group Technique 5. Devil's Advocacy 6. Delphi Technique 7. Six-Hats Technique (lateral thinking) These decision-making tools are NOT mutually exclusive.

Satisfice

In decision-making, it is difficult, if not impossible, to analyze all information on all topics! Decision-making is an art and a science. Managers often "satisfice," meaning they make a decision that is just "good enough." Herbert Simon Theory: Managers are bounded in terms of time, computational power, and knowledge when making decisions.

Order of Marketing recap:

In terms of Comcast project: -First thing is to identify the target segment (residential users) -Then we do positioning. How do we propose to make the pods more attractive? -Then 4Ps

Sample stakeholders

In terms of a gas station: -Retail customers for gas -Institutional customers like factories -Anyone who lives and/or works in the area -Workers/Employees -The environment! Competitors are NOT stakeholders, but are still impacted.

Examples of How Managers can use 'Environmental Scanning'

In the General Environment: Political -> Via lobbyists and political representatives Economic -> Via Fed Reserve minutes; financial news Social -> Via Social media; 'outside the industry' Technological -> Via Industry conferences, patent reports In the Competitive & Internal Environments: Industry -> Via Business media; industry associations Competitors -> Via Websites; others in the industry; benchmarking Suppliers -> Via vendors Customers -> Via surveys, focus groups, buying patterns

Decision Making: Managers must make individual and group decisions. Explain this statement.

Individual = Innate + Development + Experiences Group Decision-Making -> High-level pros: -Diversity of experiences and perspectives! -More information, more alternatives! -Increases acceptance of solution(s)! Cons: -Time-consuming (agendas, meeting mgmt.) -Blocking behaviors Several techniques applicable to both! Our life experience will help our decision-making skills.

Red Hat (Six Hats) description

Intuition! -Gut Instinct -Quick, emotional read -No need for justification -How would others respond who weren't part of our process?

Things to keep in mind about your sample:

Is it sufficiently large enough? Representativeness? -Are the people I am interviewing/surveying representative of the people I plan to make decisions on? -Based on their target audience, who should Yeezy recruit for product perception surveys? Must make sure you survey people in the target audience's age range and gender so it is representative and not useless.

Team Leadership

Leadership - multiple styles can be effective (situational) Critical Aspect (early on) Developing Credibility & Respect Leading through influence vs. command & control Behaviors demonstrated include: -Trust building - do what you say -Be clear and consistent -Create positive energy -Manage agreement & disagreement -Share information -Encouragement - provide coaching, assistance, compliments -Checkpoints...focus on the goals and deliverables

#2: Listing Alternative Solutions (2nd Step of the Rational Model for Decision-Making)

Limitations and boundaries on the number of alternatives available: 1) Authority/Policy factors - 'out of bounds' by leadership 2) Biological/Human factors - available of skilled workers 3) Physical factors - space constraints 4) Technological factors - may be behind 5) Economic factors 6) Available capital

Based on the product-market expansion grid, what is a problem with the market penetration growth approach in the long-run?

Limited growth

Gantt Chart Example: New Office Location (cont.)

Logic: -First activity must be completed -After this, company can begin to: hire workers; arrange for furnishings; arrange for phones -Activities 2, 3, 5 occur in sequence after Activity 1 -Activity 6, install the phones, after Activity 4 - furnishings are set up -Then, Activity 7 can occur - Move into office -Total time - estimated to be an 8-week project

Name the Types of plans

Long-term Plans - Plans with a time frame beyond 3 years. Short-term Plans - Plans covering 1 year or less. Specific Plans - Plans that are clearly defined and leave no room for interpretation. Directional Plans - Plans that are flexible and set out general guidelines. Single-use Plan - A one-time plan specifically designed to meet the needs of a unique situation. Standing Plans - Ongoing plans that provide guidance for activities performed repeatedly.

Level of Management

Lower, middle, or upper management

SWOT analysis

Managers often synthesize the findings of an environmental analysis into a format known as SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) Strengths and Weaknesses are INTERNAL and WITHIN a company's control: -Key technologies, machinery, & facilities -Patents -Financial stability & financial resources -Supplier relationships -Reputation -Human capital (employees, skills, training) -Customer loyalty -Location -Intellectual capital (knowledge) -Brand strength (awareness, equity, etc.) Opportunities and Threats are EXTERNAL and not directly within a company's control (can be positive and negative). You can respond and plan around them. Trends in: -Global & local economy -Competitive environment -Technology -Sociocultural environment -Legal/political system -Natural environment She will give us a News article and you must identify SWOT and environment! Examples: 1) CVS wants to be your therapist too, CVS started stationing mental health providers at locations. They spanned their competitive environment and were not myopic or narrow-minded. -> Strength! Because opportunities and threats are out of our control. This is a strength because they made the choice. This is an internal, controllable decision that makes them better than competitors. 2) Tyson Foods Says Labor, Grain Cost Boosting Meat Prices -> Threat because out of their control. Also, an example of the Natural Environment because it has to do with grain and covid.

Definition of Marketing from the American Marketing Association (AMA)

Marketing: "The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."

Blue Hat (Six Hats) description

Meeting Chair, process control -Organization -Management -Summarizing -Rule Enforcement Movement to Hats: Ideas drying up, go to Green Contingency plans needed, go to Black

Controls: Keeping Track with a Balanced Scorecard Approach - (company level)

Must pay attention to: -Financial Metrics: ROIC (return on invested capital), ratios! -Customer: Revenue, Satisfaction -Internal processes: - Efficiency -Value creation: Innovation/growth assets; new product introduction; organizational learning Managers should: develop goals for each of the four areas and then measure whether goals are being met. The balanced scorecard approach looks at more than the financial perspective by typically looking at four areas that contribute to a company's performance: financial, customer, internal processes, and people/innovation/growth assets.

Table 8.2: Common Decision-Making Biases (bookmark!)

Name of Bias + Brief description: Bandwagon Effect: The tendency to believe certain outcomes will occur (i.e., the stock market will increase) because others believe the same thing. Confirmation Bias: The tendency to search for information that supports one's preconceived beliefs and to ignore information that contradicts these beliefs. Loss Aversion: Characteristic of individuals who tend to more strongly prefer avoiding losses rather than acquiring gains. Overconfidence: When assessing our ability to predict future events, the tendency to believe that our forecasts are better than they truly are. Unrealistic Optimism: Individuals' tendency to believe that they are less susceptible to risky events (i.e., earthquakes, disease transmission, etc.) than others.

Moving from Groups to Teams...What's their relationship?

Not all groups are teams, but all teams are groups.

Are the same activities performed at all levels in an organization?

No, it varies by senior leaders, industry, and firm maturity.

How does Nike position itself? Is it along functional attributes?

No, more emotional. The problem with just using concrete attributes is it doesn't allow you to differentiate. What is harder to copy, while also leading to a price premium and more brand loyalty, is the emotional, social, and personal values. (more sustainable position)

Activity Ratios

Objective: Assess how efficiently a company is using its assets 1) Inventory Turnover: Calculation: Sales / Inventory Meaning: The higher the ratio, the more efficiently inventory assets are being used 2) Total Asset Turnover: Calculation: Sales / Total assets Meaning: The fewer assets used to achieve a given level of sales, the more efficiently management is using the organization's total assets.

Leverage Ratios

Objective: Examine the organization's use of debt to finance its assets and whether it's able to meet the interest payments on the debt. 1) Debt to Assets: Calculation: Total debt / total assets Meaning: The higher the ratio, the more leveraged the organization 2) Times interest earned: Calculation: Profits before interest and taxes/Total interest charges Meaning: Measures how many times the organization is able to cover its interest expenses

Liquidity Ratios

Objective: Measure an organization's ability to meet its current debt obligations. 1) Current Ratio: Calculation: Current Assets/Current Liabilities Meaning: Tests the organization's ability to meet short-term obligations. 2) Acid Test: Calculation: (Current Assets - Inventories)/Current liabilities Meaning: Tests liquidity more accurately when inventories turn over SLOWLY or are difficult to sell

Profitability Ratios

Objective: Measure how efficiently and effectively the company is using its assets to generate profits 1) Profit margin on sales Calculation: Net profit after taxes / Total sales Meaning: Identifies the profits that are being generated 2) Return on Investment (ROI) Calculation: Net profit after taxes / Total assets Meaning: Measures the efficiency of assets to generate profits

First-Mover advantage

Occurs when an organization can significantly impact its market share by being FIRST to market with a competitive advantage. -Avoid analysis paralysis!

Green Hat (Six Hats) description

Outside the box! -Creative thinking -New alternatives -New possibilities -Doesn't have to be logical -Little criticism of ideas

Describe further the difference between strategic and tactical planning and which managers use which:

PLANS: spread throughout an organization - ensures ALIGNMENT (recall the 'Planning in Marketing' discussion) Strategic Planning: Top Executive/Middle Level Mgrs. -Describes the strategy and operations of that business -Top level, broader in nature -Encompasses all parts of the operations Tactical Plans (Operational): Middle/First Level Mgrs. -Strategic plan cascades down to goals/objectives and scheduling in small increments and explains how resources are to be used -Encompasses each of the functional departments Example: Automotive industry - shift to electric, sustainable focus and leveraging technology. Also more safety features using technology.

What is management's #1 asset?

People

Exhibit 15.1: Planning - Controlling Link - enables 'course corrections'

Planning: -Goals -Objectives -Strategies -Plans Organizing: -Structure -Human Resource Management Leading: -Motivation -Leadership -Communication -Individual and Group Behavior Controlling: -Standards -Measuring -Comparison -Actions Then repeat.

How do companies position their products?

Points of Parity AND Points of Differentiation

PESTEL Analysis

Political, Economic, Social, Technological, Environmental, Legal -> we also include natural and demographic

#2 Probabilistic Decision-Making (Techniques)

Probability Theory - key concepts: -A tool used in risk situations in which the outcome of an alternative is not certain -The Expected Value of an alternative is the income (I) the alternative would produce, multiplied by its probability of producing that income (P) Figure 8.5: Expected values from locating a surfboard rental store in each of 3 possible locations 1) Alternative A: Potential income ($90,000) x Probability of Income (.2) = Expected Value ($18,000) 2) Alternative B: Potential Income ($75,000) x Probability of Income (.4) = Expected Value ($30,000) -> Choose #2! Figure 8.6: A Basic decision tree illustrating the decision facing Stygian management. -Shows the squares as decision points and circles as chance events

What are the 3 typical organizational teams?

Problem solving, self-managed, and cross functional.

Lego Example (Using the Steps)

Problem that motivated the market research: -Sales are down by 40% -Negative cash flows of $200m -$800m outstanding debt What's the research question(s) that stems from this problem? -Why are kids not playing with Legos anymore? -Why are Legos not a popular toy choice anymore? What kind of information or data would we need to help answer this question? -What kids are playing with instead (competitive offerings) -Competitive market share and sales -Pricing -Demographic info about who is buying -Children's interests -Where are they being marketed in stores? -Parents, safety concerns -How complex/easy to use legos are Determine the Research Design -Primary Data -Secondary Data What kind of data is needed? 1st Data: Information that is newly collected by the researcher for the purposes of the project Start with 2nd Data!!! Information that already exists and was collected by someone else for some other purpose. It exists but not for the purpose of your goal. It is cheaper and saves time. Time and Money is a benefit. Downside: Might be close to what we want but alone it probably won't give you exactly what you are looking for. You also have to be very careful and use high quality, unbiased, and vetted secondary data. Lots of things are fake news or opinion not fact. Types: Internal: Financial statements, old reports & surveys, sales data, etc. External: Trade reports, competitor sales, external studies, etc. What information sources and research methods could we use? Primary -> Exploratory -> focus groups -> safety concerns Secondary -> external -> government sources -> americans spending

What are the 2 fundamental types of decisions?

Programmed Decisions and Non-programmed Decisions

The 5 Dysfunctions of a Team

Pyramid -> Inattention to Results (top of pyramid) Avoidance of Accountability Lack of Commitment Fear of Conflict Absence of Trust (bottom of pyramid)

Sociocultural Environment

Refers to the culture, values, and beliefs of the society in which an organization functions. What changes have occurred with respect to your target market's: -Values -Attitudes -Beliefs -Opinions & Perspectives -Behaviors Example: How have gender roles and norms changed in America? How does this impact consumption? Old: Van Heusen ad - It's a man's world Now: More Men are wearing makeup, Chanel Boy

Relationship Oriented Roles

Relationship Oriented Roles - interpersonal cohesion, collaboration -Energizing -Developing -Supporting -Consensus Building -Empathizing -Tension Relieving - judicious use of humor?? -Confronting - respectful challenging -Harmonizing - mediating, common ground

Describe the Decision Making Conditions: Risk & Uncertainty

Risk: situations in which statistical probabilities can be attributed to alternative potential outcomes. Uncertainty: Situations where the probability of an outcome is not known in advance. Mangers dislike uncertainty more than risk. -Pervasive in business -Same in the markets!

SMART Goals

S = specific: clear, concise with precise targets M = measurable: be able to assess and measure A = attainable: ensure alignment with the organization, don't go rogue! R = realistic: set 'stretch' (challenging) goals, but not far-fetched T = time bound: set the end-point; don't be open ended. -As goals and objectives are set in planning phase, apply each to the SMART test.

What's in the Marketing plan?

Secondary Research, Primary Research, and a Marketing Strategy

Team Meeting Agenda Items (don't wing-it!)

Set: -Meeting date and time -Leader or Facilitator (rotate among team members) -Timekeeper -Attendance required - please read ___ - please bring ___ (Likely these are follow-up action items and deliverables from the previous session) -Agenda Item by Topic - Who is presenter - Time allotted -Meeting minutes to be taken by ______. (Meeting minutes are memory joggers)

Marketing is not just between the marketer and customer, don't be ___________!

Short-sighted Explanation: -Need to think about all stakeholders (everyone who is affected) AND/VS. shareholders (people who own stock in the company).

Table 8.1: Traditional and Modern Ways of Handling Programmed and Non-Programmed decisions (bookmark!)

Shows the type of decisions: Programmed: Type: -Routine, repetitive decisions -Organization develops specific processes for handling them Traditional Decision-Making Techniques: 1) Habit 2) Clerical routine: standard operating procedures (bold) 3) Organization structure: Common expectations, A system of sub-goals, and well-defined information channels Modern Decision-Making Techniques: 1) Operations research: Mathematical analysis models or Computer simulation 2)Electronic data processing 3) Technology-enabled... (bold) Non-programmed: Type: -One-shot, ill-structured, novel policy decisions. -Handles by general problem-solving processes Traditional Decision-Making Techniques: 1) Judgement, intuition, and creativity (bold) 2) Rules of Thumb 3) Selection and training of executives Modern Decision-Making Techniques: -Heuristic problem-solving techniques applied to: Train human decision-makers; programs/scenarios (bold) Overall: -Programmed and non-programmed decisions should be thought of as being at opposite ends of a continuum. -Programmed typically requires less time and effort.

Bounded Rationality

Simon's Theory led to the concept of Bounded Rationality. Bounded Rationality: Decisions made rationally, through within abilities to gather/process information. (Managers simply may not have access to ideal levels of information) -Tendency to satisfice is rather common -Judgement matters, timing matters -Example: Hiring an "acceptable" job candidate.

The Target Marketing Process

Step 1: Segmentation -Identify and describe market segments Step 2: Targeting -Evaluate segments and decide which to go after Step 3: Positioning -Develop a marketing mix that will create a clear, distinct and desirable place in target customers' minds

#5 How to Use a Devil's Advocacy to Improve Decision Making (Techniques)

Step 1: Team 1 generates a detailed course of action. Step 2: Team 2 plays devil's advocate and equations assumptions of and criticizes proposed course of action. Step 3: Team 1 revises proposed course of action based on input received from Team 2. Step 4: Team 2 questions assumptions of and criticizes revised course of action. Team 1 further revises course of action. Step 5: Both teams agree upon a course of action. Te entire process frequently takes place under the supervision of a higher-level executive or executive team.

Steps in the MBO Process - another variation of the Planning Process!!!!

Step 1: The organization's overall objectives and strategies are formulated. Step 2: Major objectives are allocated among divisional and departmental units. Step 3: Unit managers collaboratively set specific objectives for their units with their managers. Step 4: Specific objectives are collaboratively set with all department members. Step 5: Action plans, defining how objectives are to be achieved, are specified and agreed upon by managers and employees. Step 6: The action plans are implemented. Step 7: Progress toward objectives is periodically reviewed, and feedback is provided. Step 8: Successful achievement of objectives is reinforced by performance-based rewards.

Relate the 3 levels of planning to movie rom-com steps (from video)

Step 1: Vision board -> main character might make a vision board for how she wants her life to turn out. Corporate planning is like the vision board. It takes stock of who the company is by matching the company's resources and capabilities with market opportunities to ensure growth. It tends to be broader and for a longer time horizon. Step 2: When the character thinks about making their vision board come to life -> Marketing strategy, or any functional strategy, takes that broad corporate strategy and says "how do we get there?" Each functional area is based off the corporate strategy and makes plans to align with it. Step 3: The actual scheming in a rom com (to get the job, guy, friend, etc. you like). The Operational strategy is the actual doing and follow through to accomplish the other strategies.

Go through the Rational Model for Decision-Making steps for when purchasing an automobile:

Step 1: identification Step 2: Identify Decision Criteria & Relative Importance Step 3: Identify Alternatives Step 4: Analysis of Alternatives (due diligence) Step 5: Decide! Step 6: Evaluate Decision Effectiveness Thoughtful, disciplined, objective, rationale, not too subjective.

Complementing the 6 SMP Steps ... A Firm's Resource Endowment

Strategic 'weapons' for management in today's fast paced & highly competitive business environment: 1. Great Customer Service: a differentiator pre-, during-, post sale! 2. Great Talent: Loyalty; Employee Competencies & Skills 3. Great Innovation: Processes & practices 4. Great Quality: Continuous improvements ... 5. Great Social Media Practices: WHY in today's business environment? 6. Great Data (AI, Digital Tools): collect, visualize, analyze, understand (i.e. pandemic & comfort foods; Walmart - Hurricanes - Pop-Tarts) 7. Great Benchmarking: Seek best practices & metrics from competitors; industry; non-competitors

Functional Strategy

Strategic planning with respect to each function/area (ex: marketing, finance, HR, etc.)

Strategy does not stop at planning! It has to be followed by...

Strategy does not stop at planning! It has to be followed by implementation, control, and measurement! Measurement is so important to see if the strategy will make a return on investment. What KPI (key performance indicators) will you use to measure success? Sales and revenues are just one benchmark. They may be important, but might not be the most appropriate for your objective.

Task Oriented Roles:

Task Oriented - build and maintain the momentum - Providing direction - clarifying goals and direction -Information seeking - ask questions, seek perspectives -Information giving -Elaborating - building on ideas -Controlling - checking on progress, accountability -Testing/Analyzing -Deciding - avoid 'analysis paralysis!" -Summarizing

Other things to keep in mind for team process management:

Team Values: "We believe in collaboration and inclusivity..." Team Norms - Behavioral expectations and ground rules of one another -ex: "All team members are expected to come to meetings on time with their assignment completed." -Attendance expectations -Managing electronic devices -Participation expectations -Brining off-track conversations back -General courtesy & respect -Etc. Document other Expectations & Consequences as identified by the team.

What do teams enable?

Teams enable "more freedom" in the workplace; more responsive to the pace of technological change in the business world...think leverage!

Lack of Commitment (3rd Dysfunction of a Team)

Teams that commit, ultimately engage on and supports their decisions: -Creates clarity around direction and priorities -Develops an ability to learn from mistakes -Moves forward without hesitation! (big one) -Changes direction without guilt -Takes advantage of opportunities ahead of the competition "Unless commitment is made, there are only promises and hopes, but no plans." - Peter Drucker

Errors to keep in mind

The Data you collect = The Truth + Error 1) Measurement error: Did you ask the right questions? Did you ask the questions in the right way? Did you conduct the survey in the appropriate format? 2) Sampling error: Did you sample enough people? Did you sample the right people?

15.2: The Control Process: Key Steps

The control process has 3 steps: measuring actual performance, comparing actual performance against a standard, and taking managerial action to correct deviations or to address inadequate standards. Here, in Exhibit 15.2, we see how the control process works. Note that the control process assumes that performance standards already exist; these standards are the specific goals created during the planning process. Chart shows: Goals -> Standards -> Measure actual performance or Compare actual performance with standard After, Is standard being attained?, Is variance acceptance?, Is standard acceptable?, Revise Standard.

Segmentation Variables

The factors or characteristics that marketers use to segment (divide) the mass market.

Discipline

The majority of businesses (and in your personal lives as well... i.e. community pursuits, volunteerism, etc.) gets accomplished though meetings/group efforts! It takes discipline! Discipline is training to improve strength or self-control. This course is a way to build these lifelong skills and competencies.

#4 Using Nominal Group Technique (Techniques)

The nominal group technique (NGT) is a structured method for group brainstorming that encourages contributions from everyone. We did this for the McDonalds case. Steps: 1. Issue/Problem is defined. Discuss, ask questions, seek clarification (i.e. number and design types of standard kitchens to be made available). 2. Each person generates ideas, silently (individual brainstorming). 3. All ideas are shared and explained. 4. Master list is compiled and duplicates are eliminated. 5. Anonymous, ranked votes on paper (secret ballot). 6. Votes are tallied, weight is given to higher rankings. 7. Vote is reported & recorded. When to Use Nominal Group Technique: ¤ Some group members are much more vocal than others. ¤ Some group members think better in silence. ¤ There is concern about some members not participating. ¤ The group does not easily generate quantities of ideas. ¤ All or some group members are new to the team. ¤ Controversial issues or there is heated conflict.

Competitive Environment

The number and types of competitors the marketing manager must face, and how they may behave

Natural Environment

The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities How do the following factors impact how you do business & market your offering? -Weather -Pollution -Climate change -Availability of natural resources -Public health issues (pandemics!) Example: How has Covid-10 impacted grocery retailing? (Video) -Buying in bulk -Self shop services -Inclusive offerings like Starbucks got shut down because of covid -Supply chain issues!

Definition of Decision-Making

The process of choosing the best alternative for reaching objectives. "When you get to a fork in the road, take it!" - Yogi Bear

Segmentation

The process of dividing a larger market into smaller groups based on meaningful, shared characteristics.

Contingency Planning (very important!)

The process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives Environmental Risk & Uncertainty is virtually a constant: -When uncertainty is high, plans should be specific, but flexible. -Managers must be prepared to change, amend or abandon plans as they're implemented. -Scenario planning ... -Table-top exercises ... -Practice when applicable ... (i.e. phone trees, temporary relocations, etc.)

Scope of the Decision

The proportion of the total management system that the decision will affect

High Functioning Teams can Accelerate Performance

The quicker you achieve each stage of development, the more functioning as a team you are, and the better you will PERFORM (4th stage). Forming is getting started/acquainted, storming is going through disagreements/conflict, norming is developing norms/commitment/feedback, and then performing is all about executing at a high level of performance.

Political/Legal Environment

The relationship between business and government, usually in the form of government regulation of business Questions to think of: Are there any legal restrictions that would impact the success of your offering? Are your target segments subject to regulatory constraints? Regulatory & legislative actions are mean to protect: consumers AND other businesses. Protect societies at large from unrestrained business behavior. Examples of regulation and legislative action to protect businesses? -Patents/trademarks/intellectual property -Antitrust acts (Sherman Antitrust is the most famous example) -Amazon, Apple, Facebook, and Google - Have they gotten too big?

Demographic Environment

The study of human populations according to easily identifiable characteristics like location, age, gender, family structure, race, occupation, and other statistics Important demographic trends in America: -Changing family structure (That typical dynamic is gone. 50% of families only have 1 parent households. This has impacted commercials and restaurants) -Aging population -Geographic shifts -Increased education -Increased diversity -Decreased marriage rates -More people are choosing not to have kids General changes to the population make certain market segments more or less attractive. For example, take a glance at the world population (China most, then India, then US)

Longevity Economy

The sum of all economic activity driven by the needs of Americans aged 50 and older, and includes both products and services they purchase directly and the further economic activity this spending generates (sub-economy of the U.S.)

Customer Lifetime Value

The value of the entire stream of purchases a customer makes over a lifetime of patronage.

Programmed Decisions

They are... -Routine and repetitive -Structures, planned -Made according to established guidelines Example: Owning a business and ordering the same products from suppliers

Non-programmed Decisions

They are: -One-time, non-routine, unique -Less structured than programmed decisions Example: Expanding into a new market with a brand new position is less structured and non-routine. Additional example: the decisions you make when contingency events happen

White Hat (Six Hats) description

Thinking hat! -Information & Data -What do we know? -What do we need to know? -Accuracy check

Yellow Hat (Six Hats) description

Thinking positively! -The optimist -Justification required -Benefits and Values -Use to move away from 'gloom & doom rut'

What are the skills needed at various levels in regard to jobs?

Top managers: More conceptual skills, then human relations, then technical skills. Middle managers: Equal amount of conceptual, human relations, and technical skills. First line managers: More technical skills, then human relations, then conceptual skills.

Approaches to Setting Goals & Objectives

Traditional Goal-Setting - An approach to setting goals in which top managers set goals that then flow down through the organization and become subgoals for each organizational area. Means-Ends Chain - An integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level. -Engagement, Inclusion, Bottom-up insights -Can be referred as 'planned emergence'

Exhibit 8-1: Describe the Types of Plans: A General Framework

Types of Plans aren't independent. That is, strategic plans are usually long-term, directional, and single-use. Whereas operational plans are usually short-term, specific, and standing.

Dove Example of their Values, Benefits, and Attributes Positioning:

Values Positioning: -Dove brings out your real beauty; love and embrace the skin you're born in Benefits Positioning: -Protect the skin you're born in Attributes Positioning: -1/4 moisturizing cream

Difference between Values and Norms

Values: collective ideas about what is right or wrong, good or bad, and desirable or undesirable in a particular culture. Norms: established rules of behavior or standards of conduct. Norms need consequences to hold each other accountable.

SWOT example of Tiffany

What are Tiffany's strengths and weaknesses? -Customer Loyalty -Location What are they opportunities/threats? -Gender norms -Less people getting married -Lots of new competition Their Beyonce and Jay Z Tiffany campaign: Appeals to a different sociocultural environment. Threat: Blood Diamond movie and Kanye's song Diamonds are from Sierra Leone about the bad side of diamonds. -> Tiffany could not expect it but they could adapt their strategy or change their sourcing Be proactive not reactive!

SMART example

Which objective is SMART? 1) "We will be the best in our industry at delivering our products." 2) "We will achieve a 5% improvement in the on-time delivery of our products by the end of the 4th quarter, 2020." Number 2! Impact: -More motivating -Team can understand and shoot for... -Specifies the target, something to rally around... Another example: "We will increase market share by __% by expanding ________ to __% all by the end of the year."

Lululemon example (Segmenting, Targeting, Positioning, 4Ps)

Who is their target audience? -Younger, wealthier, active, women, fashionable What is their positioning? -Luxurious activewear -Versatile How does their marketing mix (product, price, place, promotion) reflect this positioning? -Location in malls with nice stores -Higher prices -Fashionable styles with colors

Are the same activities performed at all organizations? (ex: businesses, non-profits, and government) Are they universal?

Yes! All three of these need people to plan, organize, lead, and control, to be successful.

What to do after you decide your positioning?

Your marketing mix (4P's) should clearly support the image that you're trying to achieve with your positioning. Reposition if needed.