Marketing Seminar Midterm

Tactical Decisions Period 1

- [1] Marketing MIX decisions setting production planning, price, as well as advertising and segmentation strategy -[2] Commercial team decisions setting the size of your commercial team across channels and brands - [3] ordering Market Research studies to ensure you have access to sound qualitative data at the next period.

To develop an R&D project, you will need to...

-Choose a meaningful name and description -Enter the desired physical characteristics of the future brand -Enter the desired base cost -Set a budget for R&D to allocate resources and complete the project.

Semantics Scale

-Gives the ideal points of various segments -Tells you where various brands are positioned -Use this report to figure out who you're competing with and where their market is

Decisions in Period 2

1. R&D: initiating new projects and continuing or shelving uncompleted projects 2. Brand Portfolio: Launching new brands and upgrading or withdrawing existing brands 3. Marketing Mix: Production planning and pricing, advertising and segementation strategy. Setting perceptual objectives. 4. Commercial Team: Size of commerical team, allocation across distribution channels, allocation across marketed brands 5. Market Research: Ordering indsutry wide market studies, ordering market specific market studies

Advertising

ADVERTISING DECISIONS will help you build brand awareness, develop market demand, influence distributors to carry your products, and potentially create a barrier to entry for your competitors. [1] You may allocate budget for advertising in -media to purchase media space and time -and Research to improve the quality of your advertising message - [2] Setting a segmentation strategy will indicate where to place your advertising efforts. MAKE SURE THAT YOUR SEGMENTATION STRATEGY TOTALS TO 100% TO SAVE YOUR DECISIONS.

Strategy

Ability to answer uncertainty What competition does

Repostion brand in Markstrat

Advertising and/or R&D

Advertising & Sales Promotions

Advertising is used to create awareness Information about the product in which you eventually end up buying Sales promotions incentivize customers to buy now Given to customers so that they actually end up buying the product Awareness | Interest | Desire | Action

Experiments

Advertising: tells you what will happen to your profit if you spend more more on advertising (will tell you for various brands) Commercial: tells you what will happen to sales & profits if you hire [10] more commercial teams to each store. Also, where customers shop. Distribution panel: where the brands are sold

Sales (dependant) = advertising, PR, distribution, packaging, and price (dependant)

By changing the independent variables increase sales

Ideal Point Attribute

Customers have a value that they prefer ** In markstrat, all attributes are ideal point attributes including price

Sonite Consumers (5)

Explorers Professionals Shoppers Savers High earners

Consumer Survey & Panel

Gives you date on customers purchase intentions How likely is the customer to buy the brand? Tells you where customers are currently shopping, awareness levels (of your brand)

Perceptual Map

How consumers want quality and price In Markstrat You will be able to use the Perceptual map, available in the Multidimensional Scaling studies, to analyze consumers ideal needs and their perception of marketed brands on composite dimensions: Economy, Performance, and Convenience

The probability consumers buy from you depends on how close you are to ideal points

Ideal points vary across segments Depends how close you are to ideal points

Strategy

Long term goals and objectives of an enterprise and the adoption of courses nd actons and allocation of resources necessary for carrying out a goal Strategy also includes what you are not gonna do

6 Sonite Product Attributes

Number of features Design index Battery life Display size Processing power Base cost

Distribution Channels

Online Mass merchandisers Specialty stores

Value Proposition

Promise of benefits A defined segment of customers can expect from your company that are differentiated from other alternatives and are backed up by reasons to believe

6 Vodite Product Attributes

Resolution Energy efficiency Carbon footprint Connectivity Number of apps Base cost minimum

Market Forecast

Segment size for sonites and vodites Now to 5+ years ahead New audience opportunities !!

The Pillars of Marketing

Segmenting: divide a brands total addressable market into smaller groups (geographic, demographic, psychographic and behavior) Targeting: several segments which one to go after Positioning: how customers perceive it in your mind

Purpose of Marketing:

Sensing value Creating value Delivering value Extracting value

Commercial Team

Sonites has 5 segments Vodite has 3 segments

Market Forecast

Tell you what is going to be the segment size for various products (next year, in 5 years, etc.)

Vector Attribute

The more the better, sometimes less is better

Introduce New Brands

To Introduce a new Brand, open the Brand Portfolio decision screen and click on the "launch a new brand" button, either for Sonite or Vodite. A pop up will appear letting you enter the Brand name using the naming convention, describe the brand's role in your portfolio and select the completed R&D project of your choice. A project requested from the R&D department is never available for commercialization before the beginning of the following period.

R&D IS REQUIRED IN SEVERAL CASES

To develop and launch a brand in a new market (eg: Vodite) To develop and launch a brand in a new segment (eg: Shoppers) To develop and launch a brand in a segment where you are not yet present To modify a brand if its characteristics do not match consumers' expectations To reduce the manufacturing unit cost of an existing product.

Submitting a Production Plan

To submit a production plan for each brand, remember to consider your expected sales and your existing inventory. [1] You should also know that your production department will final adjust your plan by plus or minus 20% depending on the actual market demand.

Competitive Intelligence

What is the competition doing

Distribution Pannel

Where different brands are sold Which channel and how much

Pricing

You will need to recommend a retail price to your distributors. The actual average retail price will vary depending on margins and discounts applied by channels. [1]To decide on a price, you should watch out the contribution it will generate, and take into account Distributors' margins Channel discounts Consumers' expectations And Competitive prices

Vodite Consumers (3)

[1] Innovators will be willing to try new ideas at some risk. {2] Early adopters usually adopt new ideas early but carefully. [3] Followers represent the bulk of customers, but adopt an innovation only after a large number of people have tried it.

Brand Name Conventions

[1] The first letter identifies your firm [2] The second one will be either a 'O' for Sonites, or a 'E' for a Vodite. [3] You are free to choose the last characters to personalize your brands

Commercial Team Decisions

[1] Your commercial team is responsible for obtaining and entering orders, and for supporting distributors in a number of trade and promotional actions [2] You will set the size of your commercial team for each channel and brand

Cannibalization

a loss in sales caused by a company's intro of a new product that displaces one of its own older products

Y denotes a

dependent

There are 2 variables

dependent and independent

Market & Competitive News

free newsletter with information on other groups, carrying costs, growth rates, other expenditures

Positive variable

if I participate in class, my grade goes up

Negative variable

if price goes up, sales might go down

X denotes an

independent

Correlation

is only between two variables. It can only lie between -1.0 and +1.0

The maximum number of brands marketed by a company in a given period is ...

limited to five brands per market (Sonite or Vodite).

Consumer Promotion

manufacturers promoting the product to customers (ex: coupons) Manufacturer to consumer

Trade Promotions

manufacturers promoting the product to the trade; retailers (ex: off invoice deals on quantity orders in a period - buy x amount and get 20% off) Manufacturer to retailer

Success strategy and execution

poor implementation of strategy will lead to poor firm performance Your outcome depends not only on what you do but also on what your competitor does

Retail Promotions

retailers promoting the product to the customers (ex: end aisle displays, buy one get one free) Retailer to consumer

Linear equation

y = a + bx1 + cx2 → {Linear because they are joined by a plus sign}