Week 5 Lecture Class - Marketing Planning Fall 2024 PDF

Marketing Planning BUAD 307 – Week 5 – Lecture Class Fall 2024 Session Learning Objectives Textbook learning objectives:  Learn how the different elements of marketing fit together for a marketing plan  Create a basic marketing plan for a product or service (later in the semester)...

Marketing Planning BUAD 307 – Week 5 – Lecture Class Fall 2024 Session Learning Objectives Textbook learning objectives:  Learn how the different elements of marketing fit together for a marketing plan  Create a basic marketing plan for a product or service (later in the semester)  Discuss why marketing analytics are important for tracking marketing success  Define marketing analytics approaches and types of metrics to track. Class learning objectives:  Summarize BCG portfolio analysis and its use to evaluate market performance.  Describe how firms grow their businesses (through 4 basic growth options)  Understand different criteria for identifying a competitor.  Explain common reasons marketing collaborations are sought. Marketing as a Process Understan d Plan Implement Measure (5 Cs) Customer… Market Product … Insights Service Knowledge Corporate 1. Brand … Strategy Customers Value Price Perception 2. Propositi Incentives … Competitors on Communicat Behavior 3. Context Marketing Strategy (where ion Resources to play) Distribution Capabilities Used 4. Target audience Positioni Company Clear objectives Required resources ng Supporting Financial 5. Forecasted processes Adjustment Collaborator financials and systems s s PRODUCT/SERVICE MARKETING PLAN PRODUCT/SERVICE MARKETING PLAN Understan d (5 Cs) Plan Implement marketing mix Measure Understand Situation Analysis Complete Market Analysis Base analysis on a 5 C approach: CustomersCovered last week (and touched upon during Sept. 5 & 6 discussion classes) Company Competitors Will cover today Collaborators Context  Political landscape  Economic landscape  Social-cultural landscape Covered during Sept. 5 & 6  Technology landscape discussion classes  Environmental landscape  Legal/regulatory landscape  Other 5C’s “Company” Company considerations: Company objectives Marketing objectives Resources Value adding role Mission Statement A mission statement is a brief general description defining the basic needs the SBU hopes to fill in the marketplace. Our Mission  Market Chains (auto example) Auto Raw Componen Systems/ Dealershi End User / Manufactur Materials ts Components p Consumer er $ value added Unbundling FedEx Using a value chain to understand business opportunities Portfolio Analysis Boston Consulting Group (BCG) Portfolio Model High Industry Growth ? Rate Low High Low Market Share  Does a firm have to grow? 2024 Projected Revenue: $125 million Source: https://rocketreach.co/king-arthur-flour-profile Number Employees: 81 Amount needed to grow by 1% (based on 2023 revenue) $5.8 billion $6.1 billion $.9 bill. $2.4 billion $3.9 billion $.9 billion $1.8 billion 2023 Revenues = $6.3 billion  Business Growth Matrix General Growth Strategies Existing New Products Products Core Product Product Development Existing Focus maintain, improve products; Market expand, or add to product Segments harvest current line products Market Development Diversification New add new market add new product Market segments lines; expand into Segments unrelated businesses Core Product Focus Examples Added mobile ordering and selling breakfast items all day (recently discontinued). An Australian B2B IT support company, the firm grew existing customer relationships by improving its customer satisfaction surveys (HubSpot). From 2020 – 2022, added 500 drive-thru lanes (Chipotlanes) that increased business for mobile orders and pick-up.  General Growth Strategies Existing New Products Products Core Product Product Development Focus Reloadable Existing Cards Double- Market Shot Segments Market Development Diversification Stores in China Evolution New Market Fresh Segments 5C’s “Collaborators” (or strategic alliances) Common Marketing Reasons for Collaborating: Co-marketing alliances Product development alliances Global distribution alliances Common Marketing Reasons for Collaborating: Co-marketing alliances Common Marketing Reasons for Collaborating: Co-marketing alliances Common Marketing Reasons for Collaborating: Co-marketing alliances Common Marketing Reasons for Collaborating: Co-marketing alliances Common Marketing Reasons for Collaborating: Product Development Alliances Common Marketing Reasons for Collaborating: Product Development Alliances Dunkin + Coca Cola Common Marketing Reasons for Collaborating: Product Development Alliances Chipotle + Wonderskin Common Marketing Reasons for Collaborating: Product Development Alliances Apple + MasterCard Common Marketing Reasons for Collaborating: Global Distribution Alliances 5C’s “Competition” What is a competitor? Who competes with ? for similar discretionary dollars??  A competitor is any entity that competes for customers, resources, revenues, and/or future opportunities with your firm. Apple iPhone Nintendo (with iPEGA PG 9023) Switch OLED Competing directly in hand-held game market Amazon’s Competitors Online Books & Cloud Marketplace Services Electronics Kindle Video on Demand Ad Network App Search Studio Phone Store Planning Marketing as a Process Understan d Plan Implement Measure (5 Cs) Customer… Market Product … Insights Service Knowledge Corporate 1. Brand … Strategy Customers Value Price Perception 2. … Propositi Incentives Competitors Communicat Behavior 3. Context Marketing on Strategy (where ion Resources to play) Positioni Distribution Capabilities Used 4. Target audience ng Clear objectives Company Supporting Financial Required resources 5. Forecasted processes Adjustment Collaborator financials and systems s s Differentiation Points of Parity vs. Points of Difference vs. Evaluating the Competition Points of Parity vs. Points of Difference vs. Many years ago, when RIM introduced a Blackberry model with a keypad and touch screen, the touch screen was a A. Point-of-parity? B. Point-of-difference? SWOT Internal External company environmental capabilities factors Strengths Opportunities Weaknesses Threats  Company: Sample Marketing Objectives  Successfully launch Cherry Flavored Gatorade. Generate $10 million in 2024 incremental sales.  Measurabl  Ensure awareness scores for new e Denzel Washington movie reach  Realistic 85% before premiere.  Target  Increase XYZ product market share date from 30% to 34% by 2025.  Generate $45 million in sales revenues from Pacific Rim markets during 2nd quarter, 2025. ST Segment Target Position Implementation Tactical Use of 4Ps Develop Business Case Why now? What is happening that is leading to this opportunity? Can you make it? Who is the target market, and will we attract enough buyers? What is the value proposition? What position do you need and how are you going to get it? Will projected volumes and margins justify the investment? Marketing Mix Product, Service, Brand, Price, Incentives, Communication, Distribution  Measure Evaluation and Follow-up Marketing as a Process Understan d Plan Implement Measure (5 Cs) Customer… Market Product … Insights Service Knowledge Corporate 1. Brand … Strategy Customers Value Price Perception 2. … Propositi Incentives Competitors Communicat Behavior 3. Context Marketing on Strategy (where ion Resources to play) Positioni Distribution Capabilities Used 4. Target audience ng Clear objectives Company Supporting Financial Required resources 5. Forecasted processes Adjustment Collaborator financials and systems s s Marketing Metrics: Basic Measurement Categories Effectivene Efficiency ss Measures Measures Activity Outcome Metrics Metrics Leading Output Indicator Metrics Metrics Operation Predictive al Metrics Metrics Marketing Metrics: Market Share Ours Ours + Theirs  …percentage of market accounted for by a specific entity.  Can be calculated based on units or revenues.  Complication and cautions:  When is a “sale” counted…when the end user buys or earlier in the channel?  If revenue is used, do the sale prices used consider rebates, discounts, etc.?  Data can be available through purchase tracking or surveys Example: Market Share (based on number of vehicles) Global automotive market share in 2020, by brand Global automotive market share in 2022, by brand Source: Statista.com  Market Share of Share Wallet Share of sales Share of sales among all among customers customers that that buy our brand buy any brand in the category Marketing Metrics: Share of Wallet Brand Purchases (# or $) Total Category Purchases by Brand's Buyers (# or $)  % of purchases within a category, accounted for by a given brand.  Can be calculated based on units or revenues.  Calculated among buyers of a particular brand.  Frequently used to gauge loyalty and/or penetration Example: Share of Wallet For business travelers who purchased tickets on our airline, we have a 42% share of what these travelers spend annually for flights. $ spent by Singapore business travelers on Heavenly Airline flights in 2023 $ 63 million = = 42% share TOTAL $ spent on any airline $ 150 million of wallet in 2023 for these same travelers