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29 Cards in this Set
- Front
- Back
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Make sure you have the CLV equation memorized & comprehended
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yes! and make sure you know how it relates to Net Present Value (NPV)
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there are only ever 4,000 items in a costco at a given time
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Focus on the most VALUED items.
e.g. Christmas rolls around and the 4,000 product mix must be adjusted Christmas item in on shelves, other things off shelves |
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Creat value
attract and retain customers glean value from customers to create profit |
goal of this class
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Marketing STrategy
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How can we create value?
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Strategy Perspectives
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Dig a well before your thirsty
Would you tell me which way i should go from here? It depends on where you want to go |
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Failing in Business is extremely easy
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true.
between 80 & 90% of new products fail... |
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Are you asking THE RIGHT QUESTIONS?
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Think Strategically.
<b>Business Models/Tools</b> 1. BCG Growth Matrix 2. The 4 C's 3. Segment (who could we), Target(who should we), Position(how will we communicate) 4. The 4 P's 5. SWOT Analysis |
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Company-wide Strategic Planning
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Corporate:
Define the company mission-->Set company objectives/goals-->Design the business portfolio then it goes to Business Unit/product and market level: planning, budgeting, strategy, etc. |
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Corporate Strategy--WHAT business should we be in?
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Know how to use the BCG Growth Model--
http://www.coursework4you.co.uk/essays-and-dissertations/bcg-growth-sharemarket.php |
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Watch out for self-fulfilling prophesies--they can make or break brands
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Snuggle example--Unilever decided to not invest ANYTHING in it and just milk it. Bounce didn't and ended up stealing its market share and Unilever divested it.
If you don't continue to invest (something) in your Cash Cows they will become dogs |
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Marketing (product) hits of the 1980's
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MTV
Apple Computer Air Jordan Ninja Turtles Nintendo IBM PC Nickeloden American Eagle Costco Capri-Sun |
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Marketing Misses of the 1980's
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New Coke
Premier Cigarettes IBM PC jr. Yugo LA Beer Home Banking Fab 1 Shot (market wasn't ready) Holly Farms Chickens Yugo-little car |
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products flop because of
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messed up Value
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Marketing within a firm
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create value for the firms chosen customers (target)
value is created by meeting customer's functional AND EMOTIONAL needs |
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The most important model to memorize through the rest of the year
IT WILL BE ON THE EXAM most important framework in business. <b>Review the slides</b> |
Harvard Business Framework--Identify Problems Identify creative solutions =create value
The Marketing Strategy Process |
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<b>Harvard Business Framework</b>
Understand Value (4 C's -context) Create Value Capture Value Sustain Value |
4 C's--<b>Context</b>
Company Consumers Competitors Channel 4 P's Product Placement Price Promotion |
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Company
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Know your role within the big strategic picture.
are you a Star, questions mark, cash cow, or a dog? what's the expectation? |
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Consumer
Segment, Target, Position (differentiate) |
Who is the core target?
Demographic? Psychographics (observe in natural environment)? Ethnographics? Purchase Behavior? Media Usage? |
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Competition
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How can you out maneuver? Threats?
Know the arena Always be fortifying & preparing |
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Channel/Collaboration
One of most important--bec even with a great idea you need to get through the gatekeepers (distribution channels) |
You must understand what's important to the channel-- Are you going to help grow their business? how?
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How do you create and capture value?
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Marketing Mix
Product Place Promotion Price |
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Part 2 of Lecture
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SWOT--Situational Analysis
Help you identify ideas to grow. Turn strengths to take advantage of new opportunities. How can we use our strengths to overcome our weaknesses? Use strengths to overcome potential threats |
<b>INTERNAL</b>--(customers, consumers, employee feedback, Capabilities? Resources? Processes?
Strengths: Leverage/Capitalize Weaknesses: Reinforce <b>EXTERNAL</b> (Industry data, Competitive Data, Customer Feedback) Opportunities: Invest Threats: Identify |
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Product/Market Expansion Matrix!
Review Slides!! |
Products on top
Exisiting/New Markets on side Existing/New http://tutor2u.net/business/strategy/ansoff_matrix.htm |
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Context of the Market place changes things--All of the 4 C's
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Think 9/11
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P&L--Income Statement
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Taking the Mystery out of the P&L
Always divide by NET SALES when calculating the GM% or PCM% |
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Value is created by...
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meeting customer’s
<b>functional and emotional needs. |
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Break-Even & Margin Analysis
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Break-Even Analysis
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Analysis to determine that unit volume and dollar sales needed to be profitable given a particular price and cost structure.
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