M1 Marketing Studies with BrandPRO Business Simulation 2024 PDF

M1 Marketing Studies with BrandPRO Business Simulation 2024 SKEMA BUSINESS SCHOOL CM2: Strategic Marketing (with BrandPro) Academic Year 2024-2025 Course coordinator: Katharina Zeugner-Roth  Welcome to M1 Market...

M1 Marketing Studies with BrandPRO Business Simulation 2024 SKEMA BUSINESS SCHOOL CM2: Strategic Marketing (with BrandPro) Academic Year 2024-2025 Course coordinator: Katharina Zeugner-Roth  Welcome to M1 Marketing Studies § By the end of this course, you should be able to understand : § Part 1 (3h) – The importance of branding in the marketing strategy § Part 2 (2h) – How to segment the market in order to target the most profitable consumers and to position your brand in this target’s mind. § Part 3 (1h) – How to develop the marketing mix according to an established positioning. § How to present your project § (Public Speaking Skills) – eLearning Module, 1h § How to apply these concepts in the real world with the Brand Pro Simulation § workshop sessions (12h)  Google Digital Garage Course § Speaking in Public - https://tinyurl.com/PUBSPEAK23 - Free, 20-min e-Learning - Sign-in required 3 Marketing Studies II  Summary of last Session Brands deliver value to Firms need to brand their companies and consumers. products in order to break They serve as sign of recogniton, through the clutter and protect physical manifestation and their business psychological product Financial brand equity measures Customer-based brand equity this effect and indicates the refers to the differential effect of monetary value of a brand a brand on consumer response 4 Marketing Studies II  Part 2a: Strategic Marketing From the Marketing Environment to the Marketing Mix (Theory related to BrandPro) 5 Marketing Studies II 6 Marketing Studies II  https://app.wooclap.com/BPRO24B § Which of these two men is more likely to survive? § An OLD man who travels WEST and gets lost in a FOREST § A YOUNG man who travels EAST and gets lost in a DESERT  Choose wisely where you go 8 Marketing Studies II  Vision x Strategy Vision Deep understanding of the unmet needs you serve Strategy How to reach the vision by......constantly monitoring opportunities and threats in the environment... and leveraging your strengths to take advantage of these opportunities 9 Marketing Studies II  Vision vs Strategy § RIGHT vision, RIGHT strategy = very likely SUCCESS § RIGHT vision, WRONG strategy = likely SUCCESS § WRONG vision, RIGHT strategy = probable FAILURE § WRONG vision, WRONG strategy = certain FAILURE 10 Marketing Studies II  https://thepracticalleader.com/4-components-to-include-in-your-vision-statement/ 4 Components to consider in a Vision Statement 11 Marketing Studies II  Examples of Iconic Product Visions “to create a better everyday life for many people” “Bring inspiration and innovation to every athlete* in the world. (*If you have a body, you are an athlete.)” “A world without poverty.” https://www.projectmanager.com/blog/guide-writing-perfect-vision-statement-examples 12 Marketing Studies II Wrong Vision? 13 Marketing Studies II 14 Marketing Studies II  Steve Jobs' Visions and Strategies Core strength: Simplify / beautify the user experience Mature vision: Early vision: “Enriching people’s lives” “Computers for ordinary people” Leaves Apple in 1985 Returns 15 in 1997 Marketing Studies II  Steve Jobs’ Golden Opportunities In 1976 computers were ugly and difficult to use Leaves Apple in 1985 Returns 16 in 1997 Marketing Studies II  Steve Jobs’ Golden Opportunities In 1983 computers were STILL ugly and difficult to use Leaves Apple in 1985 Returns 17 in 1997 Marketing Studies II  Steve Jobs’ Golden Opportunities In 1997 computers were old fashioned Leaves Apple in 1985 Returns 18 in 1997 Marketing Studies II  Steve Jobs’ Golden Opportunities In 2000 you could not easily carry “1000 songs in your pocket” Leaves Apple in 1985 Returns 19 in 1997 Marketing Studies II  Steve Jobs’ Golden Opportunities In 2006 a phone, a music player and a web navigator were three separate devices Leaves Apple in 1985 Returns 20 in 1997 Marketing Studies II  A Cautionary Tale: The Nokia Case ‘‘More than seven years before Apple rolled out the iPhone [late 1990s], the Nokia team showed a phone with a color touch screen set above a single button. The device was shown locating a restaurant, playing a racing game and ordering lipstick. In the late 1990s, Nokia secretly developed another alluring product: a tablet computer with a wireless connection and touch screen—all features today of the hot-selling Apple iPad.’’ “We had it all!” Frank Nuovo, the former chief designer at Wall Street Journal, July 18th, 2012 Nokia Corp. 21 Marketing Studies II  Nokia were not the only blind ones in 2007... Motorola Q phone Blackberry phone 22 Marketing Studies II  The Nokia Case 23 Marketing Studies II 24 Marketing Studies II  Two Components of Military Strategy § Internal (under your control) - Strengths and weaknesses - Your own troops, their formation, their weapons, their training, their tactics § External (outside your control) - Opportunities and threats - The terrain, the weather, the enemy - You cannot change them, but you can adapt to them 25 Marketing Studies II  Sun Tzu (died 496 BCE) The Art of War “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” 26 Marketing Studies II  Sun Tzu EXTERNAL INTERNAL Opportunities Strengths & Threats & Weaknesses “Know the enemy” “Know yourself” 孙⼦ 27 Marketing Studies II 28 Marketing Studies II  Segmentation x Targeting x Positioning Source: Kotler et al. 2020 29 Marketing Studies II  Segmentation, Targeting, Positioning 30 Marketing Studies II Segmentation  https://youtu.be/ktmAaT2hlho?si=GrqoNkURRtf8hf_q Banyan Tree Case Segmentation  Segmentation 34 Marketing Studies II Exercise: Segmentation DISCUSS WITH YOUR NEIGHBOUR: How would you market ORGANIC EGGS? 1. How would you SEGMENT the market? 2. Which POSTIONING would you choose? Marketing Studies II 35  1. How to segment the market? Scientific Research on Egg Segmentation Marketing Studies II 36 Segment 1: Economic oriented Source: Huang & Chien (2006) 37 Marketing Studies II Segment 2: Product oriented Source: Huang & Chien (2006) 38 Marketing Studies II Segment 3: Production-process oriented 39 Marketing Studies II 2. Which segment would you target? Core segment is Segment 2 Biggest segment: Most interesting segment: (Product oriented) Economic oriented Production oriented BUT: smallest segment (15% market share) 44% market share 41% market share BUT: most concerned about price (attractive segment?) Marketing Studies II 40 41 Marketing Studies II  Positioning 1C 42 Marketing Studies II  Example: Positioning § Positioning Statement for Mountain Dew: - To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine. 44 Marketing Studies II  Positioning § Is this the right perceptual map for Mountain Dew? 45 Marketing Studies II  Re-Positioning https://youtu.be/pd0IlE966h4?si=Ek0nnsVE9yjqDdve § Which effect would this campaign have on Mountain Dew’s positioning? (use the positioning map below) Energy 46 Marketing Studies II Source: http://www.slideshare.net/madhusudanpartani/segmentation-targeting-and-positioning  Re-Positioning 47 Marketing Studies II  Positioning § Avoid Negatively Correlated Attributes! - Low-price vs. High quality - Taste vs. Low calories - Nutritious vs. Good tasting - Efficacious vs. Mild - Powerful vs. Safe - Strong vs. Refined - Ubiquitous vs. Exclusive - Varied vs. Simple 48 Marketing Studies II Source: http://www.slideshare.net/madhusudanpartani/segmentation-targeting-and-positioning  Possible Value Propositions for Positioning Maps A B C The trap 2C D Source: Kotler et al. 2020 E 49 Marketing Studies II 50 Marketing Studies II  Technologic Forces Economic Forces Product/Brand Cultural Marketing Mix Positioning Segmentation Forces Decisions: Product Place/ Distribution /Targeting PRODUCT Social Promotion Price 3C Forces Competitive Legal/Political Advantage Forces Competitive Forces  Three Levels of a Product 52 Source: Kotler et al. 2020 Marketing Studies II  Product Life Cycle and Marketing Mix Decisions 53 Marketing Studies II Source: Kotler et al. 2020  Product Life Cycle and Marketing Mix Decisions 54 Marketing Studies II Source: Kotler et al. 2020  Technologic Forces Economic Product/Brand Cultural Marketing Mix Forces Positioning Forces Segmentation Decisions: Product Place/ Distribution /Targeting PRICING Social Promotion Price Forces Competitive Legal/Political Advantage Forces Competitive Forces  Price decisions + -- Source: Kotler et al. 2020 56 Marketing Studies II  Value-based vs Cost-based Pricing Source: Kotler et al. 2020 57 Marketing Studies II  Source: Kotler et al. 2020 Responding to competitor price changes 58 Marketing Studies II  Skimming versus Penetration Strategies Promotion high low high Rapid- Slow-skimming skimming strategy strategy Price Rapid- Slow-penetration low penetration strategy strategy Source: Gauri et Kateora 2014 59 Marketing Studies II  Technologic Forces Economic Forces Product/Brand Cultural Positioning Forces Segmentation Marketing Mix Product Place/ Distribution /Targeting Decisions: PLACE Social Promotion Price Forces Competitive Legal/Political Advantage Forces Competitive Forces  Distribution in Brand PRO § There are NO distribution decisions to be made in Brand PRO § For more information, please refer to « Principles of Marketing » course 61 Marketing Studies II  Technologic Forces Economic Product/Brand Cultural Marketing Mix Forces Positioning Forces Segmentation Decisions: Product Place/ Distribution /Targeting PROMOTION Social Forces Promotion Price Competitive Legal/Political Advantage Forces Competitive Forces  Typical advertising decisions Source: Kotler et al. 2020 63 Marketing Studies II  Promotion tools 64 Source: Kotler et al. 2020 Marketing Studies II 65 Marketing Studies II  The Marketing Planning Process Phase 1 Preliminary analysis and screening: The Competitive Environment Information derived from each phase, Phase 2 market research Segmentation, Targeting, and evaluation Positioning of programme performance Phase 3 Adapting the marketing mix to target market(s) Phase 4 Implementation and control 66 Marketing Studies II  Part 2b: Strategic Marketing How to implement in BrandPro 67 Marketing Studies II  So what? How do these insights apply to 68 Marketing Studies II  Marketing Objectives In Brand Pro Initial Share Price Index (SPI) = 100 69 Marketing Studies II  The BrandPro World THE BRANDPRO WORLD The BrandPRO world is a fictitious country of 80 million Your inhabitants that roughly behaves like most markets. TEAM Inflation is virtually zero and no major political, social or economic event is anticipated in the near future. THE SONITE MARKET Understanding consumer needs and matching their expectations is key to designing a favorable offering. Exceeding consumer expectations is not always a smart decision. This may in particular result in a lower margin or you may upset your consumers. For instance, a long-lasting battery may be heavy and a large screen may not fit in a Your COMPETITORS purse.  Marketing process overview in Brand PRO 71 Marketing Studies II The Marketing Planning Process OPPORTUNITIES / THREATS Phase 1 Preliminary analysis and screening: Competitive The Competitive Environment Economic Political/legal Phase 2 Level of technology Segmentation, Targeting, Positioning Culture Structures of distribution Geography Phase 3 Adapting the marketing mix Other to target market(s) Phase 4 Implementation and control 72 Marketing Studies II  https://app.wooclap.com/BPRO24B § Which brands are you going to manage in Brand PRO ?  Copyright by StratX Know yourself - get familiar with your products 74 Marketing Studies II Know your enemy - get familiar with the marketing environment (market, competitors) Your TEAM Your COMPETITORS The Marketing Planning Process Phase 1 Preliminary analysis and screening: matching company/country needs Segmentation What are the available markets? Targeting Phase 2 In which market segment can we Segmentation, Targeting, be most effective? Positioning Positioning Considering the competitive Phase 3 environment and our competitive Adapting the marketing mix advantages, what is our to target market(s) differentiation strategy for the targeted segment(s)? Phase 4 Implementation and control 76 Marketing Studies II  https://app.wooclap.com/BPRO24B Which ONE of the following is not a Brand Pro segment? The Marketing Planning Process Phase 1 Segmentation Preliminary analysis and screening: matching company/country needs Trendy Phase 2 Segmentation, Targeting, Positioning Savvy Phase 3 Adapting the marketing mix to target market(s) Phase 4 Implementation and control Pros 78 Marketing Studies II  Segmentation Which segment to target? Which segment is most attractive? 79 Marketing Studies II  https://app.wooclap.com/BPRO24B Which ONE of the following is NOT related to a SEGMENT ATTRACTIVENESS analysis ? The Marketing Planning Process Phase 1 Targeting Preliminary analysis and screening: matching company/country needs Phase 2 Segmentation, Targeting, Positioning Phase 3 Adapting the marketing mix to target market(s) Phase 4 Implementation and control 81 Marketing Studies II  Targeting Strategy 82 Marketing Studies II The Marketing Planning Process Phase 1 Positioning Preliminary analysis and screening: matching company/country needs Phase 2 Segmentation, Targeting, Positioning Phase 3 Adapting the marketing mix to target market(s) Phase 4 Implementation and control 83 Marketing Studies II  Possible value propositions for positioning maps A B C The trap D E Source: Kotler et al. 2020 84 Marketing Studies II  Technologic Forces Economic Forces Product/Brand Cultural Marketing Mix Positioning Segmentation Forces Decisions: Product Place/ Distribution /Targeting PRODUCT Social Promotion Price Forces Competitive Legal/Political Advantage Forces Competitive Forces The Marketing Planning Process Phase 1 Product Preliminary analysis and screening: matching company/country needs Features / Attributes Adaptation Phase 2 Segmentation, Targeting, Positioning Brand name Packaging Phase 3 Adapting the marketing mix Service to target market(s) Warranty Phase 4 Style Implementation and control 86 Marketing Studies II  https://app.wooclap.com/BPRO24B § Which ONE of the following is NOT part of the PRODUCT strategy?  Product Decisions In Brand PRO, you only decide about product attributes SONITE PRODUCTS 88 Marketing Studies II  Which number of product attributes is ideal? 89 Marketing Studies II  Brand PRO Product Decisions 90 Marketing Studies II  Product Life Cycle and Marketing Mix Decisions 91 Marketing Studies II Source: Kotler et al. 2020  Product Life Cycle and Marketing Mix Decisions 92 Marketing Studies II Source: Kotler et al. 2020  https://app.wooclap.com/BPRO24B Which of the following is true about product attributes?  Technologic Forces Economic Product/Brand Cultural Marketing Mix Forces Positioning Forces Segmentation Decisions: Product Place/ Distribution /Targeting PRICING Social Promotion Price Forces Competitive Legal/Political Advantage Forces Competitive Forces The Marketing Planning Process Phase 1 Preliminary analysis and screening: Price matching company/country needs Competitive adaptation Life-cycle adaptation Phase 2 Segmentation, Targeting, Positioning Phase 3 Adapting the marketing mix to target market(s) Phase 4 Implementation and control 95 Marketing Studies II  Price Decisions in Brand PRO 96 Marketing Studies II  Technologic Forces Economic Forces Product/Brand Cultural Positioning Forces Segmentation Marketing Mix Product Place/ Distribution /Targeting Decisions: PLACE Social Promotion Price Forces Competitive Legal/Political Advantage Forces Competitive Forces  Distribution in Brand PRO § There are NO distribution decisions to be made in Brand PRO § The platform assumes 35% as the fix distribution costs for your products, regardless of product design / pricing / promotion decisions 98 Marketing Studies II  Technologic Forces Economic Product/Brand Cultural Marketing Mix Forces Positioning Forces Segmentation Decisions: Product Place/ Distribution /Targeting PROMOTION Social Forces Promotion Price Competitive Legal/Political Advantage Forces Competitive Forces The Marketing Planning Process Phase 1 Preliminary analysis and screening: Promotion matching company/country needs Advertising Personal selling Phase 2 Segmentation, Targeting, Media Positioning Message Phase 3 Sales promotion Adapting the marketing mix to target market(s) Phase 4 Implementation and control 100 Marketing Studies II  Promotion tools § Brand Pro assumes you will invest in all of these types of promotion tools (one budget for all promotion types) § You only control the investment in promotion, you don't actually manage promotion campaigns 101 Source: Kotler et al. 2020 Marketing Studies II  Promotion/Communication Decisions in Brand PRO 102 Marketing Studies II  Promotion/Communication Decisions in Brand PRO 103 Marketing Studies II The Marketing Planning Process Phase 1 Planning Preliminary analysis and screening: matching company/country needs Control process Objectives Phase 2 Budgets Implementation Segmentation, Targeting, Assignment of responsibility Positioning Measurement of performance Phase 3 Error correction Control Adapting the marketing mix to target market(s) REMEMBER to FORECAST a scenario with your decisions before you RUN Phase 4 them!!! Implementation and control 104 Marketing Studies II  Forecasting – Estimate your Contribution 105 Marketing Studies II  Homework! § Prepare for the Brand Pro Challenge !!! - Download the manual & preview BrandPRO : https://brandpro2.stratxsimulations.com/ (or K2) - Take the 1-hour Google Garage course on Public Speaking: https://tinyurl.com/PUBSPEAK23 106 Marketing Studies II Thank you! Questions? [email protected] (Course Coordinator) YOUR EMAIL