Strategic Planning

The process of developing and maintaining a fit between a compan ys goals and capabilities and its changing marketing opportunities It involves:
Defining company vision/mission Specifying objectives Designing portfolio of products/businesses Coordinating functional strategies

Three Levels of Strategy in an Organization

Corporate strategy Corporate strategy
Vision Vision Corporate goals Corporate goals Philosophy and culture Philosophy and culture

Business unit strategy Business unit strategy

Mission Mission Business goals Business goals Competencies Competencies

Functional strategy
Information systems Finance Research & development

Manufacturing Human resources

Marketing

Components of Strategy
Scope
Breadth of strategic domain: number and types of industries, product lines, market segments. Reflects company mission and strategic intent (vs. Strategic fit) MCI... Core business (long distance), Contiguous business (fastest growing sector communications related products: wireless paging, Internet, local service), Content (invested $2 billion in News Corp): Vision of Bert Roberts, Chai rman MMM PCL EllisDon Mattamy

Components of Strategy
Goals and Objectives
Desired level of accomplishment on one or more performance dimen sions and the growth vector Allocation of human, financial and other resources across businesses, markets, etc. What are the distinctive competencies or strengths relative to competitors? MMM PCL EllisDon Mattamy Improving overall efficiency and effectiveness by exploiting syn ergies across businesses and product markets

Resource deployments

Identification of a sustainable competitive advantage

Synergy

Market Oriented Vision / Missions

PRODUCT-ORIENTED VISION/MISSION STATEMENTS MARKET-ORIENTED VISION/MISSION STATEMENTS
We sell lifestyle and self expression; success and status; memories, hopes and dreams.

COMPANY

Revlon

We make cosmetics.

Disney

We run theme parks.

We provide fantasies and entertainment -- a place where America still works the way it is supposed to.

Wal-Mart

We run discount stores.

We offer products and services that deliver value to middle Americans.

Market Oriented Vision / Missions

PRODUCT-ORIENTED VISION/MISSION STATEMENTS MARKET-ORIENTED VISION/MISSION STATEMENTS

COMPANY MMM PCL EllisDon Mattamy

The Strategic Marketing Process:

1. 2. 3.

Situation and SWOT analysis Market-product focus & goal setting Marketing programs

1. Situation Analysis: The Three Cs

Market Potential (size, Market Potential (size, growth rate) growth rate) Customer Behavior Customer Behavior (wants and needs, (wants and needs, segmentation, price segmentation, price sensitivity) sensitivity)

Customers
Industry Structure Industry Structure Analysis (entry/exit Analysis (entry/exit barriers, buyers, sellers, barriers, buyers, sellers, substitutes) substitutes) Competitor Response Competitor Response Profiles (capabilities, Profiles (capabilities, current and future actions) current and future actions)

Company
Economic Analysis Economic Analysis (costs, break -even, -even, (costs, break profitability) profitability) Company Fit Company Fit (strengths, weaknesses, (strengths, weaknesses, resources, culture, resources, culture, goals) goals)

Competitors

Company considerations

History / Culture Resources Existing portfolio Existing customer base

characteristics, esp. vis a vis future market loyalty with markets with marketing

Experience

Business Objectives

Maximize profits Maximize shareholder returns Maximize market share Survival Social responsibility

SWOT Analysis
Favorable Strengths: Internal Unfavorable Weaknesses:

External

Opportunities:

Threats:

Strategic Issue Analysis

Opportunities Strengths Areas to Leverage Chances lost

Threats Problems

Weaknesses

Vulnerabilities

Strengths and Weaknesses Checklistdo this for every competitor

Performance MAJOR STRENGTH Marketing 1. Company reputation -------2. Market share -------3. Customer satisfaction -------4. Customer retention -------5. Product quality -------6. Service quality -------7. Pricing effectiveness -------8. Distribution effectiveness -------9. Promotion effectiveness -------10. Sales force effectiveness -------11. Innovation effectiveness -------12. Geographical coverage -------Finance 13. Cost/availability of capital -------14. Cash flow -------15. Financial stability -------Manufacturing 16. Facilities -------17. Economies of scale -------18. Capacity -------19. Able, dedicated workforce -------20. Ability to produce on time -------21. Technical manufacturing skill -------Organization 22. Visionary,capable leadership-------23. Dedicated employees -------24. Entrepreneurial orientation -------25. Flexible or responsive -------MINOR STRENGTH -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------NEUTRAL --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------MINOR WEAKNESS ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------MAJOR WEAKNESS -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------HI ---------------------------------------------------------------------------Importance MED ----------------------------------------------------------------------------------------------------LOW -----------------------------------------------------------------------------

Opportunities and Threats

Success Probability Attractiveness Seriousness

High High Low 1 3 Low 2 4

Probability of Occurrence
High High Low 1 3 Low 2 4

Opportunities 1. ___________________ 2. ___________________ 3. ___________________ 4. ___________________

Threats 1. ___________________ 2. ___________________ 3. ___________________ 4. ___________________

Designing the Business Portfolio

Fit company strengths and weaknesses to the opportunities in the environment

Analyze current SBUs Which SBUs should receive more, less, or no investment? Develop growth strategies

2. Identify SBUs

Single business standing alone from rest of company Having own competitors to equal or surpass Has own manager who is responsible for strategic planning and profit Examples?

3. Evaluate your Current Portfolio

The Boston Consulting Group (BCG) Matrix

The General Electric (GE) Approach

Portfolio Analysis: The BCG Matrix

Strategies Associated with the BCG Matrix

Business unit strategy: Manage your portfolio

Marketing/product strategy: Build Hold Harvest Divest

Limitations of the BCG

Beyond growth rate:

Barriers to entry Long term, stable consumer demand High ROI relative to other options Technological leadership Related competencies Distribution strength Supplier relationships Management skills Leverage/extend brand equity

Beyond market share:

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General Electrics stoplight strategy chart

Green band = Go signal = Build Yellow band = Caution signal = Hold

C Market attractiveness
Hi gh ov er all att ra cti ve ne ss ov er all
High

Medium

ov era ll a ttr ac tiv en ess

att ra cti ve ne ss
Red band = Stop signal = Divest

Low

M ed iu m

Strong

Medium

Lo w

Weak

Business position

Competitive Analysis

Market structure
Leader Follower Nicher Industry Based Definition Market Based Definition
Substitutes

Defining competition

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Porters Five Forces

Barriers to Potential Entrants Bargaining Power of Suppliers Intensity of Competitive Rivalry & Barriers to Exit Substitutes in Other Industries Bargaining Power of Buyers

External environment
Political trends-- politically correct, partisan Regulatory trends whats (il)legal Economic trends: macro, micro Social and Cultural trends
Changing family, immigration

Technological trends Other:

Demographic trends Natural resources

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Agenda for Competitor Analysis

Introduction Competitive Analysis
Strengths and Weaknesses Behaviors

Competitive Strategy for dealing with competition

Game Theory Porters 5 Forces Framework

Competitive Analysis and Strategy

Competitive analysis answers
What is driving competition in this industry or industries the firm may consider joining? What actions are competitors likely to take, and what are the best responses? How will the industry evolve?

in order to set strategy, which answers

How should the firm be positioned to compete in the long-run?

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Competitive Analysis
Current position and strategy
Market share and sales Target market and positioning Marketing mix (4 Ps) Manufacturing and R&D Financial strength

Capabilities: Ability to
Design new products Manufacture Market Finance Manage

Future Goals
Product portfolio Share or profit Product Differentiation or Cost Leadership

Step 2: Market-product focus & goal setting

1. 2. 3. 4.

Set market & product objectives Select target markets Find points of difference Position the product

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Step 3: Marketing Programs

Marketing Mix Marketing Mix Place Product
Product Variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns Channels Coverage

Target Market Target Market Price

List Price Discounts Allowances Payment Period Credit Terms

Assortments Locations Inventory

Promotion
Sales Promotion Advertising Sales Force Public Relations Direct Marketing

Transport

The Marketing Plan

- Integrating the 3 Cs and the 4 Ps Current marketing situation (3 Cs) Opportunity and issue analysis (3 Cs) Objectives Marketing strategy (4 Ps) Action programs (4 Ps) Project profit-andloss statement Background data on sales, costs, profits, market, competitors, distribution, and environment. Identifies the main opportunities/threats, strengths/weaknesses. Defines plans financial and marketing goals in terms of sales volume, market share, and profit. Presents the broad marketing approach that will be used to achieve the plans objectives. Presents the special marketing programs designed to achieve the business objectives. Forecasts the plans expected financial outcomes.

Adapted From: Philip Kotler, Marketing Management, pg. 89.

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Ansoff Product-Market Expansion Grid

Existing Products Existing Markets New Markets

Market Penetration

New Products
Product Development

Market Development

Diversification

Strategy: Porters Five Forces Model

Potential Entrants
Threat of new entrants

Bargaining power of suppliers

Industry Competitors

Bargaining power of customers

Suppliers
Rivalry among existing firms Threat of substitute offerings

Customers

Substitutes

Porters Five Forces Model - Each Force is a Threat

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Existing Rivalry More Intense If:

Numerous or equally balanced competitors Slow industry growth High fixed costs Low customer loyalties or switching costs Added capacity comes in large increments Diverse competitors High strategic stakes High exit barriers
Specialized assets, emotional barriers, government and social restrictions (e.g., concerns for job losses, etc)

Threat of New Entry

Barriers to entry
Economies of scale Brand loyalties Capital requirements Switching costs independent of loyalties Access to distribution Cost disadvantages independent of scale

Market Attractiveness

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Expected Reactions of Firms

Conditions that signal strong retaliation

Firms with history of retaliation to entrants Firms with substantial resources
Cash and unused debt and/or equity capacity Excess productive capacity High leverage with channels or customers

Firms with commitment to industry and high levels of idiosyncratic assets employed in it Slow industry growth

The Entry Deterring Price

Structure of prices that just balances ...
the potential rewards from entry that are forecast by the potential entrant with the expected costs of overcoming structural barriers to entry an d costs of retaliation

If prevailing prices exceed the entry deterring price, entry will occur

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Bargaining Power of Customers

Customers compete for lower prices Customers tend to be powerful when

They represent a large portion of the firms sales Offerings represent large portion of their expenditures Offerings are undifferentiated Switching costs are low They pose a credible threat of backward integration Quality of offerings is not important to them They have full information

Big customers are attractive and dangerous (e.g., Walmart)

Bargaining Power of Suppliers

Suppliers compete with the industry by trying to force costs higher Suppliers tend to be powerful when
They are concentrated There are few substitutes to their offerings The industry is not an important customer of theirs Their offerings are important inputs to the firms Their offerings are differentiated or there are high switching costs They pose a credible threat of forward integration They have full information

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Customer or Competitor Orientation?

Focus on competitors: Aggressive and alert for changes Focus on customers: Align resources to customer needs Which is better? Which is more common?

Porters 4 Generic Business Strategies

Source of Competitive Advantage

Competitive Scope
Lower Cost Broad Target Differentiation

Cost Leadership

Differentiation

Narrow Target

Cost Focus

Differentiation Focus

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Market Life Cycle

High

Price

*Product/Market expansion *Competitive activity *Knowledgeable customers

*Selected products / selected markets *Problem solving emphasis *Customer needs knowledge

Low Low Cost-to-serve

*Product/market proliferation *Market volatility *Aggressive customer

High

Changing the players

Bring in customers - Increase industry demand. Educate consumers about your product Pay customers (esp. early adopters) Subsidize some customers, other full paying customers will follow (Initial discount to lower risk) Become your own customer

Bring in suppliers Bring in complementors Do it yourself. Encourage complementors to come (Banking)

Bring in competitors License technology to make money, avoid complacency Create a second source to encourage buyers to adopt technology

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Changing the added value

Limit your supply DeBeers and diamonds Raise amount consumers are willing to pay Policies that build loyalty (frequent flier miles) increase will ingness to pay - GM / Ford credit cards; Intuit Lower competitors value Questions to ask : What is your added value? How can you increase value by changing supply, buyers, suppliers, complementors, or substitutors in your value net? What is the value added by other players? Should you be increasi ng or decreasing their added values?

Changing the rules

Questions to ask are: Which rules are helping you? Which ones are hurting you? Rules can be for pricing, advertising, product variety, satisfaction, etc. What kinds of contracts are you willing to write with your buyer s and suppliers? Do you want Match Competition Clauses? What does this do for you? Do you have the power to change the rules? Does someone else have the power to overturn them? Can you signal your commitment credibly

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Changing tactics
Questions to ask are: How do other players perceive the game? How do these perceptions affect the play of the game? Which perception do you want to keep, which to change? Do you want the game to be transparent or opaque? When do you want to send signals that benefit you? When do you want to preserve the fog? To establish credibility (clear the fog) Accept a pay-for-performance contract Offer guarantees or advertise

Ask others to demonstrate their credibility to you To preserve the fog Create complexity (long distance calling rates) Bluff: Ask yourself whether you will be believed and under what circumstances Ask what others stand to gain by preserving the fog, and what they could be bluffing about

Changing tactics

Competitive stances that can be used to clear / add to the fog

Appear Tough

Appear Soft

Being Big

Top Dog

Fat Cat

Being Small

Lean & Hungry

Puppy Dog

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The Strategy Game

Fishbowl. This exercise brings everybody with an ax to grind on a given issue together in one room, with advocates of certain points of view in the center of the Red team / blue team assign managers to teams representing major competitors and have them plan . the strategies they would use to beat us. Future mapping. This is a fancy name for a way of looking at different scenarios for the future. We look at several alternative futures, or "end states," for our bu siness, assign a probability to each one, and identify the forces that will determine whether that scenario will happen.

Strategic objectives for share leaders

Typically the pioneer or initial entrant Share maintenance objectives Retain current customers by:

Maintaining and improving loyalty Encourage / simplify repeat purchase Reduce attractiveness of switching
Stimulate selective demand among later adopters

Head-to-head positioning against competition Differential positioning against competition

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Strategic choices for share leaders

Flanker strategy: Proactive / Reactive

Competitor or potential competitor

Confrontation Strategy Proactive / Reactive

Fortress / Position defense Leader

Contraction / Strategic withdrawal

Market Expansion

Fortress or position defense

Increase satisfaction, loyalty, repeat purchase Build on strengths to keep current customers; use same tactics to appeal to late adopters Market characteristics Relatively homogeneous market Strong preference for leaders product in the largest segment Competitors characteristics Current / potential competitors have limited resources and competencies Primary objective Firms characteristics High awareness and preference for leaders product Marketing and R&D resources exceed competitions.

25

Flanker strategy

Primary objective

Market characteristics

Protect against loss of specific segment Develop a second filler entry Attract customers in the segment Two or more major segments with distinct needs and purchase criteria

Competitors characteristics

Firms characteristics

One or more current or potential competitors Have resources to implement a differentiation strategy Current product weak on at least one attribute for a major segment Firm has resources to develop and launch a second offering for disaffected segment

Confrontation strategy

Primary objective

Market characteristics

Competitors characteristics

Firms characteristics

Protect loss of share among current customers Meet/beatcompetitive offerings head-on Get new customers who may be attracted to competitors Relatively homogeneous market Little preference for leaders product in the largest segment One or more potential competitors Sufficient resources and competencies to implement head-to-head strategy Current product suffers from low awareness, preference, loyalty in a major segment Firm has resources (R&D, marketing) comparable or greater than competitor

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Market expansion strategy

Primary objective

Market characteristics

Competitors characteristics

Firms characteristics

New products or line offerings Aimed at new applications / users Improve ability to retain customers as market fragments Heterogeneous market Multiple product uses requiring different product or service attributes Current / potential competitors have limited resources / competencies in R&D and marketing No offerings in one or more application segments Firm has relative competencies in R&D and marketing

Contraction strategy

Primary objective

Market characteristics

Competitors characteristics

Firms characteristics

Increase ability to attract new customers in selected high growth segments Withdraw from slower growing segments to conserve resources Heterogeneous market Segments with different growth potential Multiple product uses requiring different product / service attributes One or more current / potential competitors with resources to mount a strong challenge in growth segments Current product suffers from low awareness, preference, loyalty in one or more major growth segment Firms resources limited vis-a-vis one or more competitor

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Strategic objectives for followers

Capture repeat / replacement purchases from current customers of the leader or other target competitor by: Head -to-head positioning against competitors offering in primary target market (athletic footwear, PCs) Technological differentiation from target competitors offering in a primary target market Stimulate selective demand among later adopters by: Head -to-head positioning against target competitors offering in established market segments Differentiated positioning focused on untapped or underdeveloped segments

Strategic choices for challengers

Leapfrog strategy Flanking attack

Guerrilla attacks

Target competitor Frontal Attack

Challenger

Encirclement strategy

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Who should a follower attack?

Attack the share leader within its primary target market Most to lose, but also most likely to retaliate - in a few geographic markets? Attack another follower who has an established position within a major market segment Attack one or more smaller competitors who have only limited resources Avoid direct attacks on any established competitor

Frontal attack

Primary objective

Market characteristics

Competitors characteristics

Capture substantial repeat / replacement buyers from target competition Attract new customers from later adopters via better price / features Homogeneous market Little preference or loyalty for existing brands Vulnerable to direct attack Few R&D and marketing resources Stronger R&D, marketing resources than target competitor and / or Lower operating costs

Firms characteristics

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Leapfrog

Primary objective

Market characteristics

Competitors characteristics

Firms characteristics

Induce current buyers to switch to a superior product offering Attract new customers via superior benefits Relatively homogeneous w.r.t. customer needs and purchase criteria Some needs or criteria are currently unfulfilled One or more current competitors has strong marketing competencies but relatively weaker R&D capabilities Firm has proprietary technology Has necessary marketing and production resources to stimulate and meet primary demand for next generation products

Flank attack

Primary objective

Attract share of new customers in market segments where needs are different from those of early adopters Two or more segments with distinct needs Needs of at least one segment not currently met Strong target competitor able to withstand direct attack Resources limited but sufficient to penetrate and serve at least one major market segment

Market characteristics

Competitors characteristics

Firms characteristics

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Encirclement

Primary objective

Market characteristics

Attract share of new customers in several smaller, specialized segments whose needs are different from those of early adopters Heterogeneous Some segments not currently served Strong competitors capable of withstanding direct attack Decentralized and adaptable management structure Resources to serve several small segments

Competitors characteristics

Firms characteristics

Guerrilla attack

Primary objective

Market characteristics

Competitors characteristics

Capture modest share of repeat, replacement purchases in several market segments or territories Attract a share of new customers in a number of existing segments Heterogeneous market, several segments Needs of most currently being satisfied by competition Number of strong competitors capable of direct attack Limited resources Decentralized and adaptable management structure

Firms characteristics

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Rubbermaids growth strategy

Objectives for the 1990s

1. Corporate objective is to increase sales, earnings, and EPS 15% a year, while achieving a 20% return on shareholders equity 2. Pay approx. 30% of current year earnings as dividends to shar eholders while using the remainder to fund future growth 3. Each year, 30% of sales are projected to come from new products introduced over the past 5 years. It is planned to enter an entirely new market every 12 to 18 months 4. The objective for customers and consumers is to offer the best value possible. Highest quality products at a reasonable price, a continuous flow of new products, and exceptional service to customers 5. Treat all constituents fairly and consider the interests of associates as individuals 6. Aim to be an environmentally responsible corporate citizen

Rubbermaids growth strategy

Incremental growth
Focus on growth within the companys businesses that was responsive to customer needs and in turn, provided value to these customers

Leap growth
High visibility and high vulnerability Win big or lose big

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Rubbermaids incremental growth strategy

To increase the value of Rubbermaids existing products. The key to this growth area was in providing value to dealers, distributors, and consumers. The ke y to value is providing quality, low cost and service To upscale existing products to meet todays consumer and new design preferences. Upscaling includes introducing new colors to existing lines To extend existing lines to capitalize on product successes, inc rease retail shelf space, and boost sales volume To expand Rubbermaids international business as a significant growth opportunity during the 1990s

Rubbermaids leap growth strategy

To develop new products. Goal is to have at least 30% of annual sales coming from new products introduced during the past 5 years To hone product lines and optimize the number of stock units retained to keep the lines manageable and provide proper customer service le vels To enter entirely new markets. This is consistent with the corporate objective to enter a new market every 18-24 months To engage in joint ventures or acquisitions to enter new markets by combining the capabilities of a strong outside partner with the many strengths of Rubbermaid

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Implications

Value axis High A

2 1

Price

C Low Low Cost-to-serve

4

Power axis High

Growth markets

Share gains are easier. Due to

Gaps or undeveloped segments in the market Lower risk of retaliation from share leader given growth

Problem: Leader has higher expectations given growth Share gains are worth more
Based on the expectation that earnings produced by each share point expands as market expands. This depends critically upon

Changes in technology and other success factors Competitive structure (large number of new entrants: PC) Market fragmentation Price competition less intense? Early entry necessary to maintain technical expertise

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Marketing strategies for mature markets

Maintain current market share

Maximize flow of profits over the remaining life which (could be several decades) Need to maintain repeat purchases via customer satisfaction For large players

Use fortress defense to improve customer satisfaction and loyalty encourage and simplify repeat purchasing Expand product line or launch flanker brands
For small players

Avoid prolonged direct confrontation with the big guys Niche strategy Extend volume growth....(later)

Marketing strategies for mature markets

Extend volume growth

Sales depend upon

(1) Number of persons buying product (2) Number of units purchased per person (3) How often the product is purchased
So, one of the following strategies can be used

Increased penetration strategy Increased frequency of use Wider variety of uses

Market expansion strategy

Underdeveloped domestic markets (BDI / CDI analysis) New customer or application segments Produce private labels Global expansion via sequential strategies

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Marketing strategies for mature markets

Assess the relative attractiveness of declining markets Conditions of demand

speed of decline, certainty of decline, existence of pockets of enduring demand, extent of product differentiation in market, price stability
Exit barriers

reinvestment requirements, amount of excess capacity, age of assets, resale market for assets, extent of facilities shares with other SBUs, extent of vertical integration, number of single product competitors
Intensity of future competitive rivalry

bargaining power of customers, customer switching costs, diseconomies of scale

Marketing strategies for mature markets....

Divestment or liquidation Strategies for remaining competitors Harvesting Maintenance Profitable survivor Niche

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Problem

Not easy to tell when a market has reached maturity Variations in brands, marketing programs, and customer groups can mean that different brands and segments reach maturity at different times Industry stability also affected by threats and opportunities Customer preferences can shift Product substitutes may appear Raw material costs may increase Changes in government regulation Entry of low-cost foreign producers Mergers and acquisitions Product improvements Process technology improvements Other environmental factors

Strategic issues

Shakeout declining growth rate potential for overestimating future demand, hence over capacity competition intensifies as volume increases needed to cover fixed costs weaker businesses fail, withdraw or acquired

Maturity volume stabilizes replacement sales dominate continued satisfaction and loyalty of existing customers key not all segments and all brands reach maturity simultaneously

possibility of extending life via new uses, applications or creative marketing Decline divest, liquidate or hang-on? consolidation

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Shakeout

Excess capacity

More intense competition

Difficulty in maintaining differentiation

Distribution problems

Pressures on prices and profits

Strategic traps during shakeout

Failure to recognize events signaling the beginning of a shakeout ...hence optimistic forecasts

Stuck without a clear strategic advantage during shakeout

Failure to recognize declining importance of product differentiation and increasing importance of price and / or service

Giving up market share in favor of short term profits ...hence priced out of the market

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Strategies to beat the commodity magnet

Pro-active strategies
Value-added strategy Process innovation strategy

Reactive strategies
Market focus strategy Service innovation strategy

Demand side: Value added & Market focus Supply side: Process innovation & Service innovation

International Marketing Strategy

Strategic Alliances Global Companies

International Firm
Take our domestic practices overseas

Multinational firm
Customize strategies to each market

Global firm
Standardize strategy globally

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Global Market Entry Strategies

Exporting Licensing Joint Venture Direct Investment

International Environment Trends

Political: stability, sentiment Regulatory: trade regulations, tariffs, quotas Economic: exchange rates Social and Cultural: ethnocentrism

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The NewProd Scoring Model

To help evaluate ideas generated

Very Good (10) EP EV .1 .1 1 1 Good (8) EP EV .2 .2 1.6 1.6 Average (6) EP EV .5 .4 3.0 2.4 Poor (4) EP EV .2 .2 0.8 0.8 Very Poor (2) EP EV .1 0.2

Sub-factor Product Superiority Unique features for users Reduce customer costs Higher quality than competitors Does unique task for user Priced lower than competition

Sub-factor Weight 1 1

TOTAL EV 6.4 6.0

Sub-factor Evaluation 6.4 6.0

.3

.4

3.2

.2

1.2

.1

0.4

7.8

23.4

.1

.2

1.6

.5

3.0

.2

0.8

6.4

6.4

2 2

.5 -

5 -

.4 .2

3.2 1.6

.1 .5

0.6 3.0

.3

1.2

8.8 5.8

17.6 11.6

10

TOTAL

71.4

Steps in the Design Process Customer Measurement Opportunity Definition

1. Qualitative measurement to identify issues 2. Quantitative measurement for input to models

Summary of Customer Refinement Marketing

R&D Engineering Production Preference Choice Segments Perception Product Features

What-if Forecasts Evaluation

1. Aggregate Individuals 2. Awareness & Availability

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