1. Marketing Management Stephan Langdon, MBA, M.Ed.

2. Class 2

3. The Customer Value Proposition PPT 1-3

4. Three V’s Approach to Marketing Define the value segment Define the value proposition Define the value network

5. REFLECTIONHow does MUJI demonstrate the Three V’s Approach to Marketing Define the value segment Define the value proposition Define the value network

6. Core Business Processes Market-sensing process New-offering realization process Customer acquisition process Customer relationship management process Fulfillment management process

7. PPT 1-7 A Business Strategy – Figure 1.1 Page 5 Where to Compete The product-market investment decision A Business Strategy How to Compete Value Assets & Function area proposition competencies strategies and programs Figure 1.1

9. Logistical strategy

10. Quality program

11. Customer relationship program

13. A Holistic Marketing Framework Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 2-10

14. The Strategic Planning, Implementation, and Control Processes Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 2-11

15. The Strategic Planning Gap Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 2-12

16. The Product-Market Investment Strategy Invest to grow (or enter a product market) Invest only to maintain the existing position Milk the business by minimizing investment Recover as many of the assets as possible by liquidating or divesting the business PPT 1-13

17. Ansoff’sProduct-Market Expansion Grid(memorize for exam and be able to apply) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 2-14

18. Opportunity Matrix Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 2-15

19. Threat Matrix Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 2-16

20. Activity Please apply the opportunity and threat matrix to Muji and Gallo

21. Strategic Uncertainties Strategic Uncertainties Will a major firm enter? Will a tofu-based dessert product be accepted? Will a technology be replaced? Will the dollar strengthen against an off-shore currency? Will computer-based operations be feasible with current technology? How sensitive is the market to price? Strategic Decisions Investment in a product market Investment in a tofu-based product Investment in a technology Commitment to off-shore manufacturing Investment in a new system A strategy of maintaining price parity

23. Competitive technological developments?

24. Financial capacity of health care industry?What will the future demand?

27. Threats/opportunities

29. Scenario analysisFigure 2.1

30. Chapter 2 - External and Customer Analysis PPT 2-21 Customer Analysis Segmentation Identification of customer groups that respond differently from other groups to competitive offerings. Thus, a successful segmentation strategy requires the conceptualization, development, and evaluation of a targeted competitive offering. Who are the biggest customers? The most profitable? The most attractive potential customers? Figure 2.2

31. Chapter 2 - External and Customer Analysis PPT 2-22 Segmentation How should segments be defined? Benefit Segmentation Price Sensitivity Loyalty Applications Multiple Segments versus Focus Strategy

32. PPT 2-23 The Brand Loyalty Matrix: Priorities Low Loyalty Moderate Loyalty Loyal Medium Highest High Customer Low to Medium Non-customer High Zero Figure 3.4

33. Customer Motivation Analysis Identify Motivations Group and Structure Motivations Assess Motivation Importance Assign Strategic Roles to Motivations Figure 2.6

34. Population and Demographics Population growth Population age mix Ethnic markets Educational groups Household patterns Geographical shifts

35. Natural Environment Shortage of raw materials Increased energy costs Anti-pollution pressures Governmental protections

36. Consumer Environmental Segments True Blue Greens (30%) Greenback Greens (10%) Sprouts (26%) Grousers (15%) Apathetics (18%)

37. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-28 Secondary Commercial Data Sources Nielsen SAMI/Burke MRCA Simmons Information Resources, Inc. Arbitron

38. Technological Environment Pace of change Opportunities for innovation Varying R&D budgets Increased regulation of change

39. Political-Legal Environment Increase in business legislation Growth of special interest groups

40. 3-31 MIS Systems Provide Information on Buyer Preferences and Behavior:Dupont’s Pillow Study Pillow Segments 23% - stackers 20% - plumpers 16% - rollers or folders 16% - cuddlers 10% - smashers

41. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-32 What is a Marketing Information System (MIS)? A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

42. Internal Records and Marketing Intelligence Order-to-Payment Cycle Sales Information System Databases, Warehousing, Data Mining Marketing Intelligence System

43. Steps to Improve Marketing Intelligence Train sales force to scan for new developments Motivate channel members to share intelligence Network externally Utilize a customer advisory panel Utilize government data resources Purchase information Collect customer feedback online