 We take on role of Marketing Manager (general management team) and Mkting Dept

Team

 Framework on slide: use analysis (customer, competitor, company, category) to drive

marketing decisions (strategy & tactics)

 Marketing focused on driving cash in the front door

 Course roadmap: intro, marketing analysis, marketing strategy, strategy execution,

pulling it together

 MARKETING TWITTER
o Questions
 How is user market segmented
 What segment is Twitter focused on
 How to describe value of twitter to them
 How does T reach potential new users
 How easy is it for customer to discover T and understand
 How does T inspire trial
o What is role of Mkting leader? Requires broad perspective – it’s not just
advertising
 Wears many hats: analyst, visionary, dept manager, org leader, strategy
implementation leader, strategist
 How do we add value & beat competition and get to our target
customers
 Mkting leader is strategy implementation leader; change management

 CLEAN EDGE RAZOR

o Mkting decisions require systematic analytical approach; IT’S NOT JUST ABOUT
NUMBERS (financial analysis is still a key component)
o FRAMEWORK was useful for this case
o Best analysis rooted in deep understanding of consumer behaviour & decision
making

 VOSS WATER
o Success resulted from: 1) clear market position, 2) value proposition
 ALL OTHER DECISIONS CAME AFTER POSITIONING
o Consistent tactics in price, packaging, location, promos
o Positioning/strategy might change with team to evade competition, saturation,
etc.

 KRAFT COFFEE PODS

o Key concepts learned:
  Unit contribution calculation
 Break-even volume
 Break-even market share calculation
 Projected contribution statement
o Different segments may: 1) have different relative point of comparison, 2)
require different value proposition
 For each customer segment, the coffee machine had different value
proposition
o Failure resulted from:
 Inconsistent marketing tactics
 Insufficient incremental value to get customs to switch
o TARGET SEGMENT, OFFERING, BRAND triangle  alignment = value creation
 NEED TO CREATE A LOT OF VALUE FOR HABITUAL PROCESS CHANGES

 STRUGGLING TO MAKE THE BEST BUY

o Buying:
 Is process; not a single act
 Involves info seeking & evaluation
 Decisions include spectrum of influencers
 Involves risks
o NEED TO UNDERSTAND BUYING CRITERA & INFLUENCES
o Qualifying criteria gets you into the consideration set; SELECTION criteria gets
you chosen
o Low vs high involvement; some products, we put a lot of effort into
o High vs low risk
o What happens when differences between competing products are high or low?

 OASIS OF THE SEA

o Segments are characteristics of customers
o Categories are based on characteristics of products
o WE NEED BOTH OF THESE ^
o We might have to question existing segmentations that are the norm; might give
us better insights
o Segments need to be:
 Distinguishable: they need to be different
 Actionable: we need to be able to reach out to them
 Differentiate-able: different responsive profiles
 Provide some measure of profitability

 STARBUCKS
o Total Offering creates value and differentiation
o Ex: it’s not just coffee that’s the offering (that’s just the product); it’s the
EXPERIENCE
o Markets evolve & require ongoing monitoring
 o Not all customers are of equal value
o “Back of the Envelope” business calculation

 SAMSUNG
o Differentiation is only an advantage if customers value it
o Attractive vs Uniqueness scale
o Clear understanding is necessary to understand difference bw loss of mkt share
vs declining market???
o Markets differ bw developing & developed economies

 TESCO
o Mkt strategy rooted in comprehensive mkt & consumer research
o Retailing requires deep understanding of consumer behaviour & preferences
o Breaking consumer habitual behaviour is significant barrier to growth
o Copy&Paste strategies from other markets are RISKY
 They used UK strategy in US… didn’t work
o Not all markets have opportunity; markets could be saturated

 MOUNTAIN MAN BREWING

o Key topics:
 Structured evaluation of strategic growth alternatives
 Inter-related impact of positioning & cannibalization
 Evaluation of Brand Equity
 Limitations of brand stretching
o New customers & existing customers VS. Existing products & new products
o Perceptual map: new position vs existing position
o Elements of brand equity:
 Awareness
 Preference/loyalty
 Perceived quality
 Associations

 RED LOBSTER
o Key ideas:
 What is positioning? What is that distinctive place in the customers’
minds that you want to own? What opinion do you want them to have
when they think about you? Who will customers compare us to?
 WE WANT TO BE THE PREFERRED CHOICE OF OUR TARGET SEGMENT
o Price-Value Curve
 It can also shift over time but moving around might mean losing some
segments
 We can compete in many different areas, BUT we don’t want to be above
or below the curve
 o The more specific we are with our targeting, the better our message will
resonate with target customers
 Although, broad target provides more volume

 DOVE REAL BEAUTY

o Started way back; advertising has changed with time
o Function benefits (expert care) … to … Sensory benefits (fragrance)
o Social image (real beauty) … to … awareness?
o Brand value ladder
 Incorporate emotional benefits to a strong foundation functional benefit
 Functional  Emotional  Social
 Emotional or social position doesn’t fit in every market
 BUT IF WE ARE GENUINCE, then we can get it
 Result: there is opportunity to help brand & society

 COLGATE
o Share-point value
o Understanding competitor behaviour at individual product manager level can
product important insight
o No-win positions require foresight (prisoner’s dilemma)
o Ultimate goal is driving profitability; not demise of competition

 SOREN POOL CHEMICALS

o Need to create value at every stage
 Partners at each stage have options
 Even if one stage is missed, we lose
o Economic vs non-economic value

 Union Pearson Express

o Customers will evaluate differentiated value created, compared to the relevant
competitive alternative, and evaluate price vs. the differentiated value
 Basically, customers decide how much they’re going to pay for each value
point, which limits how we can price
o Pricing: think about customers, partners, competitive limits (how competitors
will react), corporate goals

 British Columbia Box

o Lots of people (decision making unit -DMU) have input in organization decisions;
they all have diff perspectives & criteria
o Purchases follow predictable path
o Buyers feel risk & will try to share to minimize it
o Company sales rep is IMPORTANT in B2B
o Low price doesn’t always win
  WESTRIDGE CABINETS
o Selling time is a finite resource
 Once an hour is spent, it’s gone
 So, it requires focus & trade offs  need to decide what these are
o Many sales roles

 THE MOLSON RANT

o Molson had message aligned with their market
o Effective messaging:
 Succinct, unique & compelling, clear, creative/engaging, execution on
point?
o Understanding WHY an ad was successful is important; or you’ll repeat and bust
o Ads depend on product differentiation, lifecycle, concentration of competitions,
etc.

 HCL BEANSTALK
o Use Segment Preferences & Competitive Perceptions to discover positioning
options

 SABRE SIMULATION
o World is dynamic
o Competitors are smart
o Generating profits is difficult
o Managers need to help move through bad outcomes

 VISA
o What is the ROI of marketing?
 Spend money now but realize benefits in future
o Measuring market shares needs you to know size of market, but this isn’t always
easy to obtain
o MEASURING KPIs is important

 What is a great marketing strategy?

o What need are we filling with our product?
o Who are our competitors?
o Can we deliver?
o What is the correct pricing point?
o Barriers to entry
o AND MORE!

GOAL: Ask the right questions to generate insights that maybe competitors have missed
EXAM DETAILS
 Past exam cases: clean edge razor, voss, kraft coffee, starbucks, mountain man, red
lobster, colgate, soren
 USE MAIN FRAMEWORK TO STRUCTURE THINKING  allows you to look at all aspects
 Marketing analysis planning process:
o Context
 What are we dealing?
 What problem are we facing?
 What are our goals?
 What alternatives do we have?
 What kinds of things do you want to know? (ASK THE RIGHT QUESTIONS)
o Situation Analysis (Size up)
 Answer questions generated above
 Ask “why does this matter” for every situation (implications of decisions)
o Evaluation of Alternatives
 Qualitative & quantitative
 Analyze every alternative on every criteria
 Strategy will drive tactical decisions
o The Decisions and The Plan
 Best Alternative & why?
 Summarized strategy
 Execution plan
 Case exam
o Management report
o Use Examplify & hand-written stuff; will be graded in conjunction
 Can do the whole thing by hand too
o Open book; will have access to computer files
o Can use excel or bring actual calculator
o What is a good approach to the report:
 Use the 4 sections: context, situation analysis, evaluation of alternatives,
decisions & plan; EXEC SUMMARY IS USEFUL BUT NOT MANDATORY
o Make small notes if using notes from other cases

 Exam Tips
o Headings & subheadings help
o Bullet points okay; but sentence fragment doesn’t make sense to reader
o MAKE SURE HAND-WRITTEN PORTIONS ARE LEGIBLE
o Read first paragraph & last paragraph, read headings & exhibit titles, THEN read
case
o Write questions as they pop in your head; some may be answered, but some
may not and the ones not answered may be key
o What numbers should you do? Enough to make a good decision & possible make
some projections
 - Past Exam
o Clean Edge Razor
o Voss Water
o Kraft Coffee Pod
o Starbucks
o Mountain Mna
o Red lobster
o Colgate
o Soren

DMA

Same format
- Executive Summary
- Summary for VP
- ICI
- JAIKUMAR
- Enron
- Clonara
- Techventures