MKT 472 Final 2

There are 5 ways for creating a new company, brand and sub-brand name

1) Founder and Owner names → many company take the name of its founder like Hilton hotels 2) Functional names → basic benefit provided by the product like Federal Express (fast delivery) 3) Invented names → 2 kinds - one that from root words and morphemes and another that are poetics constructions based on rhythm or experience of saying it 4) Experiential names → company associated with an experience such as the experience of discovery, success, movement or good health 5) Evocative names → evoke a positive attribute or a feeling. (Apple)

What types of evaluation do firms make during the strategic market planning process?

1- Invest to Grow - Invest marketing resources to grow the mkt or mkt share 2- Invest to Improve Position - Invest to improve or/and strengthen competitive position 3- New Mkt Entry - Invest to enter new attractive markets or develop new product-markets 4- Protect Position - Invest to protect mkt share and competitive advantage 5- Optimize Position - Optimize price-volume and mkting resources to maximize profits 6- Monetize Strategy - Manage mkt position for maximum cash flow with limited mkting resources 7- Harvest Strategy - Manage the product for maximum short-run cash flow or minimum losses 8- Divest Strategy - same like harvest.

How can we classify positioning strategies? Describe the focus of each class of positioning strategy.

1. Differentiation and Product Positioning ➢ Product differentiation ➢ Service differentiation ➢ Brand differentiation ➢ Low cost of purchase (price) 2. Branding and Brand-Management Strategies ➢ Brand identity ➢ Brand encoding ➢ Brand assets & liabilities ➢ Brand equity 3. Brand and Product Line Strategies ➢ Umbrella & Flanker brands ➢ Product-line extensions ➢ Bundling & unbundling ➢ Product elimination

Differentiation and product position:

1. Product Diff: Many cust are willing to pay a higher $ for products that deliver important cust benefits. Differences in product quality, reliability and performance can attract cust. Who are seeking products that perform better than average. Therefore, if the bus fails to deliver acceptable or expected levels of reliability and conformance, an advantage in other dimension of product quality will not matter. 2. Service Diff : Service can also be an important source of diff, when it comes to positioning strategies 3. Brand Diff : In many consumers and b2b purchases, cust. Are influenced by the status of a brand name or by the assurance of a well-known company.

What is a brand? When do they mean something?

A Brand is a form of intellectual property. It gives an identity to a product or service, providing a way to quickly comprehend the brand's primary benefits, whether rational or emotional.

How does competitor analysis differ from competitive benchmarking?

A competitor analysis is a more detailed analysis. Competitive benchmarking is a process by which a business identifies a key area of competitive weakness and then benchmarks another business that is recognized as a world-class performer in this area.

How can companies modify their offerings? What criteria guide offering modification decisions?

A positioning strategy is enhanced by the brand name used to identify a product. Businesses with many products in many diverse mkts need to take special care in encoding brand names to ensure both meaning and consistency across the product line. Commonly used brand-encoding systems include 1- company and brand name 2- brand and sub-brand name 3- company and product name 4- company, brand, and product name, 5- company, brand name followed by # or letters or a combination, 6- brand name and benefits, 7- brand name only. → to grow a bus needs to leverage its product knowledge, production capabilities, mkt systems and brand equity.

What is the definition of a product?

A product is an article or substance that is manufactured or refined for sale. It can also be an idea or concept (Intangible). It has a core benefit (psychological/ physical benefits), and four subsets: ➢ Basic Product - To be considered in a product category ➢ Expected Product - Keep up with the competition ➢ Augmented Product - Extra amenities of a product ➢ Potential Product - Stay ahead of competition

What role do offensive and defensive strategic marketing plans play in the short- and long-run performance of a business?

A strategic mkt plan is a long-run 3-5 year strategic mkt objective that involves share position but has corresponding implications for short and long-run sales revenue growth, and profit performance. Strategic mkt plans can be offensive or defensive. Offensive strategic market plans involve mkt penetration strategies to grow share position, sales, and long-run profitability. Offensive strategies include investing to grow, investing to improve position, entering another mkt and developing a new mkt. Defensive strategies include protecting or optimizing for maximum profits, monetizing for maximum cash flow, harvesting and divesting. A combination of strategic mkt plans result in an overall view of how the bus will grow with respect to share, sales and profits. Although the strategic mkt plan for a given product-market set short-run and long-run goals with respect to mkt share, sales revenues, and profits, it does not specify how this performance will be achieved. Each strategic mkt plan, then has a corresponding tactical mkting plan. The tactics mkting plan is a mkting mix strategy (price, product, place, promotion and service) and resources allocation that specifies the tactical details of how the objectives of a give strategic mkt plan will be achieved. A performance plan is developed based on these marketing tactics, the marketing budget and a 3-5 year forecast of mkt share, sales reveunes and net mkting contribution.

Why is break-even market share more useful than break-even volume?

BE analysis is generally viewed as an accting concept, but it it extremely useflu in evaluating the profit potential and risk associated w/ a pricing strategy or any mkting strategy. ⇒ BE mkt vol is how much to sell to BE. BE mkt sh is how much to sell to get mkt sh (look at our sales as comparison to the whole mkt)(mkt sh to gain if u drop ur price - as how much)(BE mkt sh tells how easy to obtai price change to us)

Break-even market share

Because breakeven volume is an unconstrained #, the reasonableness of the breakeven volume requires additional considerations. Mkt share in contrast, is constrained between 0 and 100% and so breakeven mkt share provide a better framework for judging profit potential and risk. break-even volume / market demand

What is product positioning?

Designing a firm's offering and image so that it occupies a distinct and valued place in the target customer's mind relative to competitive offering.

7. What factors influence a firm's competitive position in a market?

Differentiation Advantage ➢ Product quality ➢ Service quality ➢ Brand image Cost advantage ➢ Unit cost ➢ Transaction cost ➢ Marketing expenses Market Advantage ➢ Market share ➢ Brand awareness ➢ Distribution Assessing competitive position: Weight each dimension, weight each metric, rate each metric, and determine index score.

how to accomplish prod. Position?

Ex. Nike establish it's position using mkt Sh model: 1. Wide in athletics (prod & cloth) 2. Brand image (just do it)-all about performance 3. Innovated w/ new prod (tech w/ beat dote to chk ur pulses) 4. Price expensive (they're a leader which allow them to charge high prices) 5. Identify w/ cust (as i am a nike person) 6. Use high celebrity endorsement (media adv) 7. Retail and merchandise (have other places hold their stuff plus they got their own stores)

Break-even volume

For a given pricing strategy and mkting effort, it's useful to determine the # of units that need to be sold in order to break even and that is to produce an operating income equal to zero. The lower the breakeven volume is relative to manufacturing capacity or expected sales volume, the greater the profit potential. fixed expenses / margin per unit

Explain how a company's intelligence about customer and competitors affects the types of competitive strategies available to it.

In any competitive environment, knowledge is the principal source of competitive advantage. In bus, attracting customers is the mission a bus seeks to accomplish and the competitors are the forces it is fighting to achieve its mission, without adequate knowledge of both customers and competitors, a bus is severely handicapped in developing strategies to gain customers and grow mkt share.

What is the flaw of cost-driven pricing?

In cost-based pricing, the cost of making a product and the desired profit margin are the two primary determinants in setting a price. The price is then marked up by channel intermediaries to arrive at the purchase price that customers are asked to pay.

Branding and Branding mgt Strategies:

It is important to brand a product in a way that communicates its intended positioning. A brand name gives an identity to a product or service, providing a way to quickly comprehend the brand's primary benefits, whether rational or emotional.

How does low-cost-leader-pricing differ from penetration-pricing?

Low-cost-leader pricing tries to keep it's costs as low as possible and tries to offer a price no competitor can beat, but does not necessarily need to be the market's volume leader.

When should a business use a combination of pulsing and heavy-up marketing communications?

Maintaining a high level of awareness is expensive and requires new ad copy as the old copy wears out. One cost-effective approach is message reinforcement that maintains awareness and reduces cop wear-out is called pulsing. Pulsing involves the use of alternating exposure period. If a business can maintain a desired level of awareness with pulsing, it can reduce the cost of advertising because no advertising costs are incurred in the alternating X period of no exposure and a secondary benefit of pulsing is that it reduces copy wear-out due to overexposure to the same message. Because the mkting message is not seen on a continual basis, the ad copy's novelty and appeal wear out at a slower rate. Also, reduces the potential for overexposure which can cause customer irritation and reduce ad effectiveness. Because certain products are purchased more frequently at some times of the year than at others, a business may use a heavy-up exposure pattern to build higher levels of awareness, comprehension and it is hoped interest in the advertised product/service.

Marketing Advantage

Market leader: high market share, brand awareness/recognition Product line advantage: a variety of choices Channel advantage: excellent product distribution

Pull Communications

Media Advertising, Social Media, Sales Promotions, Direct Marketing Target Audience: Customers and Potential Customers Pull Objectives: Built End-Customer Awareness, Interest, Purchase, Loyalty

offensive marketing strategies

Offensive Strategies: ➢ Invest to grow: invest marketing resources to grow the market or market share o Grow market share o Grow revenue per customer o Enter new market segment o Expand market demand ➢ Improve position: invest to improve and/or strengthen competitive position o Improve customer loyalty and retention o Improve differentiation advantage o Lower cost/improve marketing productivity o Build marketing advantage ➢ New market entry: invest to enter new attractive markets or develop new product-markets o Enter related new markets o Enter unrelated new markets o Enter new emerging markets o Develop new markets

Competitor Intelligence

Perceptual Mapping: technique used to capture customer perceptions of competing products or services Competitive benchmarking: is a process developed initially a co. to improve its competitive position relative to key competitors. (gain insight into its own operation) (1-identify key area of competitive weakness. 2- identify several co/benchmarking. 3-tracking the benchmark co's process adv) Intelligence Sources

What is portfolio analysis?

Portfolio Analysis is an evaluation of a product, market or business with respect to market attractiveness and competitive position as an aid in identifying the kind of strategic plan that would be most appropriate.

Define price elasticity. What forces influence price elasticity?

Price Elasticity is the % change in unit volume for a product per 1% change in $. OR is the measure of price sensitivity.

Price Elasticity

Price Elasticity is the % change in unit volume for a product per 1% change in $. OR is the measure of price sensitivity. Price elasticity = % change in volume / % change in price

Sales Promotions Pros/Cons

Pros: Boost relation between cust & co, good way to introduce new prod Cons: Expensive, wastful to co, lower price to get cust aware of it, effect prod value( as disc $-not good)

Public Relations Pros/Cons

Pros: Controllable over co's image and msg Cons:Effect not controlled, not sure who is reading the press release

Personal sales Pros/Cons

Pros: Immediate feedback, rich interaction (big adv) Cons:More Expensive, higher labor cost,( if u have bad day, & lead personal life to professional

Social Media Pros/Cons

Pros: LG audience, (could target specific gemog) Cons: Will be hard to control msg went wrong

Direct Marketing Pros/Cons

Pros: target best cust, cost effect→ through telephones (Telemarketing), msg, email Cons:Time consuming, lot of waste (catalogue sent)

When is it appropriate to pursue a low cost advantage?

Pursue a low cost advantage in markets in which price is an important determinant of customer value. Use low prices as a basis for product positioning. However, a business cannot ignore product performance, service quality, or brand reputation; it must still meet customer expectations.

Push Communications

Sales Incentives, Channel Financing, Co-Op Advertising, Channel Marketing Target Audience: Channel Customers and Influencers Push Objectives Build Channels Interested, Purchase, Inventory, Marketing Efforts

Why would Apple use skim-pricing for a new/next generation product?

Skim pricing is implemented during the early stages of the product life cycle. When a business has a considerable and sustainable differentiation advantage in a quality-sensitive market with few competitors, and entry to the market is difficult, skim pricing is a viable pricing strategy. As demand in the high-priced segment becomes saturated, the price may be gradually lowered to attract more customers, eventually reaching a level that is affordable to most potential customers (Ex: when apple releases a new iPhone, and then gradually lower the price until the next model comes to market).

¥ Distinguish between a strategic market plan and a marketing mix strategy.

Strategic market plan: ➢ Long term strategy, usually 3-5 year horizon ➢ Sets performance objectives for market share positions, sales growth, and profitability Marketing Mix Strategy ➢ Short-term plan, usually 1 year horizon ➢ Details price, product positioning, marketing communications and channel actions needed to reach share, growth, and profit objectives

How can we analyze the concept for product strategy purposes?

The first ​is the development of a positioning strategy based on target customer's need (who are the target customer AND how do we offer superior value for target cust.) A second ​important area of product mgt involves branding and brand mgt strategies. (How broad should the product line be? How should brands be created to communicate a consistent image and desired target-mkt identity). A third ​area of product mgt includes brand and product line strategies. ⇒ as iphone (com. → to make phone call) ⇒ as Milk ( nutertion → milk → common factor/have it in container/easy to pour→ ...) ⇒ as Car (autombile→ 4 wheels→ 4 doors→ extend warrantee→ do x in future to stay ahead)

Brand and Product Line Strategies

The more products a bus has to sell, the more ways it has to attract and satisfy cust. A broad line of products creates more selling opportunities for the sale force and channel partners. A bus with narrow line of products has to be more focused in order to be cost effective in its mkt efforts. Because a broad product line gives a bus more prospective cust. And the potential to sell more to each cust and this type of efficiency translates into more sales and higher level of profitability.

What is marketing communications? Broadly speaking, what is its purpose?

The process by which information about a firm and its offering is disseminated to selected markets. The general purpose is to induce initial trial, achieve post-purchase satisfaction, and to generate repeat sales. 1. Brand-building communication : seek to establish an emotional connection between the brand and the target customer 2- Interest-Arousing communication : seek to motivate target customers to retain and acquire more information. 3- Motivating-Action communication : seek to stimulate target customers to take a specific action to buy or try a product.

What are the purposes of portfolio analysis?

The purpose of portfolio analysis is to take a strategic view of where a business is and where it wants to go with its portfolio of existing and future products.

What is the role of price in a marketing strategy?

To capture some of the value (in the form of revenues) created for the customer so as to fund ongoing value-creation activities and support research that will lead to future value. Value = Benefits/ Costs to customer

Do communications objectives vary by marketing strategy? By stage of the product life cycle?

YES, it does vary by marketing strategy and by the stage of PLC. Existing Markets/Existing Offerings: Marketing Penetration Existing Markets/New Offerings: New Offering Development New Markets/Existing Offerings: Marketing Development New Markets/Existing Offerings: Diversification

Customer-directed mkting communication are pull communications. The objectives of Pull mkting communication, which is

a customer-directed that is important to build awareness, attraction and loyalty and to reduce search costs. When a pull mkting communication is successful, customers will seek out the product and in effect by the interest they create, pull the product through the channel. A pull strategy must ensure that channel intermediaries carry the product in sufficient quantities.

Businesses that have a differentiation advantage are

able to create superior customer value with above-average performance benefits, at above-average prices; attracts performance-conscious customers who are willing to pay a premium. (Ex: Apple)

Single- seg pricing

as its prod move into growth stage, bus will need to find a way to lower the cost of potential cust in order to attract their purchase vol. But this doesnt necessary mean to lower the price. By using S-S pricing, the price is based on the attractivness saving that cust realize over the life of the prod, not just the costs of mfq and mkting the prod. Cust interested in overall saving/econ value, and the higher the saving, the more attractive the bus'sprod.

Bundling and unbunding

bundling serve to create a complete solution that has the potential to create a superior cust value and attract cust (PC purchase w/ pre-installed software. Unbundling is a set of prod that is normally sold as an integrated bundle or system can also be desired in attracting and satisf cust.

Businesses with a cost advantage

can create superior customer value even with products that have average performance benefit; attracts price-sensitive customers. (Ex: Dell)

Push communications are directed at

channel intermediaries. As much as we motivate the channel intermediaries, this will make it more available to the customers. When the push communication is successful, will result in wider availability and fewer stock outs in the market coverage, and more visible merchandising and more efficient use of market dollars in the distributor push.It is important however to understand that it is the combination of both pull and push mkting communications that creates the greatest impact on customer response and therefore market share gains

Low-cost leader pricing

co has always tried to keep its costs as low as possible and to offer a price no competitor can beat

Mkt entry can be blocked in many ways such as political barriers, technology, substantial resources. Those barrier reduce

competition and enhance profit potential

the flip side of cust buying power is supplier selling powe r. If a bus is a large purchaser of a commodity product and is in an industry where switching costs are low, supplier power is generally low. For a bus, this is a

favorable mkt condition, one that strengthens industry attractiveness and profit potential.

when weak competitors can easily exit a mkt . Legal barriers, specialized assets, or strategic importance of a bus often prevent

from existing mkt when they should.

Price elasticities are often hard to estimate, we can accurately determine the $ elasticity needed to produce a profitable pricing strategy. Thus, any change in customer's' capacity to switch suppliers or a market's supply and demand conditions will cause $ elasticities to vary. Understanding these forces and tracking $ elasticities that result from $ changes allow a bus to build a set of guidelines for estimating $ elasticity. When $s are inelastic, $ increases result in a

in a decrease in volume but an increase in sales revenue and profits. A $ decrease when $s are inelastic would result in higher volume but lower sales revenue and lower profits. When $s are elastic, a $ decrease will result in higher volumes and higher revenues. Yet, profits may go down if margins are low.

the more substitute products available to customers, the easier it is for them to switch and thus

intensifies competitions and lower profit potential and industry attractiveness

Harvesting pricing

is when u higher ur price to drive away the most costly cust to you, who cost u the most to keep (when mkt shrinking)(w/ higher profit and low sale)

Selecting competitive enviros that favor profit potential is a key aspect of the industry analysis a bus. conducts when considering entry into new mkts. But no matter how attractive a new mkt may be in light of the competitive, it has been shown

it has been shown that developing a strong competitive position is still critical.

Brand assets and liabilities

like a bus's fin assests, the brand namr itself has diff kinds of assests. (cola assest based on its mkt leadership and high level of awareness)

when relatively few customers buy a large quantities and can easily switch suppliers, the cust's strong buying power diminishes

mkt attractiveness.

Differentiation Advantage

o Product differentiation: highly specialized performance benefits, durability, reliability, appearance, features, etc. o Service Quality: must be meaningful and important to target customers, must be sustainable o Brand reputation

Cost Advantage

o Variable costs: lower unit cost (manufacturing costs, other costs associated w/ distribution, such as discounts, sales commissions, transportation, etc.), larger unit volume o Marketing expenses o Operating expenses

Cost-based pricing ignores customer

performance needs and what they will pay for a desired level of product performance. Second, this approach to pricing overlooks both competitors' offering relative to customer needs and price sensitivity.

What is a strategic market plan?

performance. A strategic marketing plan sets the direction and provides guidelines for resource allocation. In order to specify a strategic direction for each product-market and to allocation resources in a way that will bring about the desired shot and long run performance, businesses engage in a strategic market planning process.

Perceived-value pricing

price is set on the basis of customer preferences for different levels of price and performance and taking into consideration how the company and competitors are positioned with respect to delivering both price and performance.

Value- in pricing

price is set to provide customers with an attractive savings after considering the life-cycle costs of acquiring, owning, using, maintaining, and disposing of a product. To achieve this, a company would evaluate the costs of ownership.

Advertising Pros/Cons

pros: one-way com, msg is controlled by the company (the msg vary & quickly) cons: Expensive (is paid for), slow feedback

Product line extensions

purpose of line extension under an umbrella brand is to leverage the awarness and image of the umbrella brand

penetration pricing

start at bottom to sell more (charge very low) mkt as whole react better to lower prices (big size of seg to respond to lower prices) hope to sell more would be much better.

6-the more competitors an industry has, the lower will be the differentiation among those competitors and low differentiation lead to

stepped-up competitive rivalry .

Brand Identity

successful mgt of brand is built around sound mkting practices. A bus w/ a strong orientation that has seg-ed its target mkts and tracks cust beh by segment is in the best position to build a successful brand.

Business with a marketing advantage can create

superior customer value with high levels of market share and brand awareness, along with broad product lines and highly effective distribution systems; typically has much higher market share than its competitor and can easily attract new customers; does not offer lowers cost or greater benefits. (Ex. Nike)

Brand equity

the owner's equity is the value of the owner's holding in the co (determine by the diff between asset and liab)

Brand encoding

to create a specific brand names. Great many possibilties for brand name, a brand encoding system will help us understand how prod id positioned w/ a brand name for a specific mkt and desired image.

Umbrella & Flanker brands

umbrella is the core prod of a bus (Apple- iphone, ipad, mac, watch). Flanker brand are : brand awareness, known quality, mkt reach, prod mix

In Penetration pricing, the primary objective is to build volume to drive down costs. Penetration pricing is a mass-market strategy where the

volume leader can gain a cost advantage and continue to lower prices, discourage competitor entry and encourage competitor exit.

Cost-based pricing can lead to underpricing and lower profits by not taking into account what customers are

willing to pay for a product. Cost-based pricing can also lead to overpricing and lower profits.

Why are customer awareness and message comprehension critical to the success of a marketing strategy?

⇒ Target cust must be aware of the prod and its benefit,, be continually reminded of those benefits, and be stimulated to take action. ⇒ To be effective and cost efficient, a business's marketing communications must reach target customers and have an adequate level of message frequency to maintain desired levels of awareness, comprehension and interest. Building awareness, message comprehension and interest are essential phases in achieving a high level of customer response. The customer response index is a diagnostic tool that enables a management team to determine the sources of weakness in its marketing communications program.

Marketing Communication Mix:

➢ Advertising ➢ Personal selling ➢ Public relations ➢ Sales promotion ➢ Direct marketing ➢ Social media

What factors should be considered when selecting advertising media?

➢ Cost: expressed as cost per thousand (CPM) viewers to facilitate cross-vehicle comparisons ➢ Reach: number of buyers potentially exposed to an ad in a vehicle o Reach situations: new products, expanding category, flanker brand, undefined target market ➢ Frequency: number of times buyers actually exposed to an ad in a given time period o Frequency situations: strong competitors, complex story, frequently purchased category, weak loyalty to the brand, consumer resistance to brand or category ➢ Vehicle audience: the more closely target market's characteristics match those of a vehicle's audience, the more appropriate the vehicle

Competitor Analysis based on Knowledge:

➢ Customer Reactive Strategy (Extensive Customer Knowledge, Limited Competitor Knowledge) o Overreaction due to customer demands due to limited competitor knowledge ➢ Oblique Strategy (Extensive Customer Knowledge, Extensive Competitor Knowledge) o Leverages a knowledge advantage w/ respect to customers and competitors (best) ➢ Inside-the-box Strategy (Little or no Customer Knowledge, Little or no Competitor Knowledge) (worst) ➢ Competitor Reactive Strategy (Limited Customer Knowledge, Extensive Competitor Knowledge) o Overreaction to competitor moves due to limited customer knowledge

How should one go about developing meaningful brand names?

➢ Customer problem ➢ Product Solution ➢ Product benefits ➢ Descriptive words

When to use penetration pricing:

➢ Demand is price elastic ➢ The offering is not unique ➢ Competitors can imitate and enter market quickly ➢ There are no distinct price-market segments ➢ Large savings in production and marketing costs possible if large sales volume can be generated ➢ The major objective is to obtain a large market share

When to use skimming pricing:

➢ Demand is price inelastic ➢ Distinct price-market segments exist ➢ The offering is difficult to imitate in the short run (e.g., protected by patent or trade secret) ➢ Production or marketing costs are unknown ➢ A capacity constraint in producing the product of providing the service exists ➢ There is a realistic perceived value in the product

What general types of product strategy decisions do marketing managers make?

➢ Differentiation and Product Positioning ➢ Branding and Brand-Management Strategies ➢ Brand and Product Line Strategies

Describe the six forces that affect the attractiveness of a competitive environment.

➢ Entry Barriers: international markets, technology/resource requirements, heavy investment, etc. ➢ Exit Barriers: legal barriers, specialized assets, political/social forces ➢ Buyer's Power: ease that a customer can switch from one product to another ➢ Seller's Power: supplier switching costs, etc. ➢ Threat of Substitutes ➢ Price Rivalry: intense competition --> lower price & margins

How can we classify brand growth strategies?

➢ Line extension (Existing brand, existing product): introduces additional offering with the same brand in a product class that it currently serves ➢ Brand extension (Existing brand, new product): using a current brand name to enter a completely different product class ➢ New brand (New brand, new product): new brand and often a new offering for a product class that has not been previously served by the organization ➢ Fighting/flanker brand (New brand, existing product): defensive brands developed to counteract competitors o Fighting: new brand whose sole purpose is to confront competitive brands that threaten a firm's main bran din a product class o Flanker: new brands on the high of low end of a product line based on a price-quality continuum. Designed for a separated set of users to fill gaps not offered by the main brand

¥ What causes low customer response?

➢ Low ad exposure: poor media selection and/or limited exposure frequency ➢ Low ad awareness: insufficient ad frequency and/or ineffective ad content ➢ Low ad context recall: insufficient ad frequency and/or ineffective ad content ➢ Low intentions to take action: insufficient ad frequency and/or weak value proposition ➢ Low levels of desired action: insufficient ad frequency and/or action not clearly specified

What aspects of a market determine its attractiveness to a company? How can we classify these aspects?

➢ Market forces: market size, growth rate, buyer power ➢ Competitive analysis: number of competitors, ease of competitor entry, price rivalry ➢ Market access: customer familiarity, channel access, sales requirements Assessing attractiveness: Weight each dimension, weight each metric, rate each metric, and determine index score.

By what criteria should a firm's business performance be evaluated?

➢ Market share position ➢ Sales growth: unit volume, dollar volume ➢ Profitability: NMC, R.O.S., R.O.M.I. ➢ Other financial and marketing performance metrics

Defensive marketing Strategies:

➢ Protect position: invest to protect market share and competitive advantage o Protect market share o Build customer retention ➢ Optimize position: optimize price-volume and marketing resources to maximize profits o Maximize net marketing contribution o Reduce market focus ➢ Monetize: manage market position for maximum cash flow with limited marketing resources o Manage for cash flow o Harvest/divest for cash flow ➢ Harvest/Divest: manage the product for maximum short-run cash flow or minimum losses o Manage for cash flow o Harvest/divest for cash flow

How can we characterize and decompose a company's offering mix?

➢ Width/Breadth: how many lines? ➢ Depth: how many items in each line? ➢ Consistency: extent to which line items or lines satisfy similar needs, appeal to similar buyers, or use similar technologies