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Slides from Seminar 3 in my Managing Marketing Processes course at SSE in Oct 2014
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Seminar 3
Managing Marketing Processes----Marketing Research Processes: Analyzing the Market and the Competition
Robin TeiglandMaster of General ManagementStockholm School of Economics
October 14, 2014
Assignment 4 – STP (corrected)1. Introduction: Electrolux Brand. Describe the
Electrolux brand mantra + main target audience + key benefits
2. Market segments: socio-demographic. Describe a socio-demographic segmentation – What is it and how can you use it? What are the key learnings from segmenting using socio-demographic data? Describe the limitations of using a socio-demographic approach only.
3. Market segments: needs-based. Describe a needs-based segmentation – what is it and how can you use it? What benefits does a needs-based segmentation provide?
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Seminar 3 Overview Analyzing the Market
Guest Speaker, Wei Wei, Springfellow
Marketing Plan assignment
3
Marketing planning process
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1. Summary of Current Situation - Provides a description of the business; product/service analysis. The situational analysis encompasses internal and external factors, e.g., the company’s mission, strategy, offerings, and financial status; the economic and political climate; demand trends, and competitors. Discuss PESTEL, five forces, SWOT.
Wood, 2008
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Porter’s five forces of competitionENTRANTS
SUPPLIERS BUYERS
SUBSTITUTES
INDUSTRYCOMPETITORS
Rivalry amongexisting firms
Threat of new entrants
Threat of substitutes
Bargaining
power of suppliers
Bargaining
power of buyers
http://www.youtube.com/watch?v=mYF2_FBCvXw&feature=channel
Porter, 2008
How to draw the industry boundaries?•What industry is BMW in?
– World auto industry– European auto industry– World luxury car industry?
•Key criterion is SUBSTITUTABILITY– On the demand side: Are buyers willing to substitute
between types of cars and across countries?– On the supply side: Are manufacturers able to switch
production between types of cars and across countries?
•The industry may need to be analyzed at different levels of aggregation for different types of decisions
Grant 2008 7
Threat of
Potential
Entrants
Bargaining Power of Buyers
Bargaining Power of Suppliers
Threat of Substitute
s
Rivalry Between Competitors
• Identify Competitors and intensity of Rivalry amongst competitors.
• Briefly explain.
•Identify Buyers and Bargaining Power of each. •Briefly explain.
What business segment or industry is being considered:
___________________________________________
•Identify Suppliers and Bargaining Power of each. •Briefly explain.
•Identify Substitutes and the threat level of each. •Briefly explain
•Identify Potential Entrants and the threat level of each. •Briefly explain.
Is this an attractive industry? Briefly explain, why or why
not?
Process steps:1. Identify industry or segment boundaries.2. Identify players in each Force using case facts.3. Assess level of threat, power, intensity of each
Force using case facts and course concepts.4. Make final assessment of whether it is an
attractive industry in which to compete using results of 5 Forces analysis to support your view.
Industry Level Analysis: Porter’s Five Forces
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How does the environment (PESTEL)affect the five forces (now and in future)?
Johnson & Scholes 1997
Politics and government
Environment Technology
Legal structure
Social and Demographic
structure
International/nationaleconomy
Industryenvironment
http://www.youtube.com/watch?v=jp_oyHY5bug
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1. What factors are affecting the industry?2. Which of these are the most important at the present time?3. Which of these are the most important in the next few years?
Political Global, regional, and national
political development (administration, political parties)
Taxation policy Foreign trade regulations Labour market politics Government stability
Socio-cultural Population demographics Income distribution Social mobility Lifestyle changes Attitudes to work and leisure Attitudes to consumerism Levels of education Changes in values/attitudes Education conditions Work environment conditions Health conditions
Environmental Ecology Pollution conditions ”Green” energy Energy conservation Waste handling
Economic Business cycles GNP trends Interest rates & Exchange rates Money supply Inflation Unemployment Wage level Private consumption and
disposable income Public finances Energy availability and cost
Technological Government spending on research Government and industry focus of
technological effort New discoveries/development Speed of technology transfer Rates of obsolescence New patents and products
Legal Development in price and
competitive legislation Labour market legislation Product safety and approvals
Marketing planning process
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2. Focused Assessment of the Market Opportunity - Explains the segmentation, targeting, and positioning decisions. Discusses which segments are to be targeted, with an overview of customer and prospect needs, wants, behaviors, attitudes, loyalty, and purchasing patterns as well as the competitive challenges faced by the company and its offerings.
Wood, 2008
Group Assignment – Part A How powerful are suppliers to this industry? What are the
implications for the company’s business relationships? How powerful are buyers in this industry? What are the
implications for the company’s pricing strategy? Can customers substitute other goods or services for the
company’s offering? What are the implications in terms of customer loyalty for this company?
How fierce is the competition among competitors in the industry?
Can the company or competitors easily exit the industry? Can more rivals easily enter the industry? What are the implications for the company if environmental conditions threaten profitability?
Overall how attractive is this industry? 21
Group Assignment – Part B How can this market be described broadly in terms of
product, geography, and demographics? If you are researching a consumer market,
approximately how many people, families, or households are in the market?
What, specifically, are the main influences on buying behavior in this consumer market?
If you are researching a business market, approximately how many and what type of organizations are in the
market for the product? What characteristics such as turnover, number of employees, and other
descriptions relevant to the product apply to customers in this business market?
What changes are currently affecting (or will soon affect) this consumer or business market?
What relationships and organizational considerations have the most influence on buying in this market? 22
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
4-23
Research Approaches Observational and ethnographic Focus group Survey Behavioral Experimental
Rising interest in ethnography“Ethnography or observational research has
drawn significant attention recently, not only in the market research and marketing fields but in the mass media as well …all
starts by doing something simple – keenly watching consumers, fact to face, knee to knee and listening, with ears, eyes, heart,
brain and your intuitive sixth sense.”
Procter & Gamble
ex-CEO A.G. LafleyTesco: http://www.youtube.com/watch?
v=fGaVFRzTTP4
Seminar 3 Overview Analyzing the Market
Guest Speaker, Wei Wei, Springfellow
Marketing Plan assignment
25
75–80%75–80% of new products being launched fail. The idea is good, but the market share is overrated.The idea is good, but the market share is overrated. The product itself is not developed enough. The new product is badly positioned on the market,
not well-known enough, is priced too high or has the ”wrong” packaging.
The management wants to see their favorite ideas become products against all market research.
Developing costs are higher than anticipated. Competitors put up more of a fight than anticipated.
GfK 2012
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
2-27
What is a Marketing Plan?
A marketing plan is the central instrument for
directing and coordinating the marketing effort.
It operates at a strategic and tactical level.
McDonald, M. (2006) Strategic Marketing Planning: Theory and Practice, The Marketing Review, 6, 375-
418.
A marketing plan ≠ A business plan
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Wide overview of business, eg
mission, goals, strategy, staff,
operations, location,
marketing, financial
Often used as financial tool to see if business
viable
Business Plan
Marketing PlanDetails actions to fulfill mission and goals. Identifies
business price points, target markets, and
competition and explains how business generates customers
http://smallbusiness.chron.com/difference-between-marketing-business-plan-1682.html
But they are interdependent
!
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
2-29
Levels of a Marketing Plan
Strategic Target marketing
decisions Value proposition Analysis of
marketing opportunities
Tactical Product features Promotion Merchandising Pricing Sales channels Service
Marketing Plan Contents
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
2-30
Executive Summary Table of Contents Situation Analysis Marketing Opportunity Assessment Marketing Strategy Financial and Marketing Goals and Budgets Implementation and Controls References
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
2-32
Evaluating a Marketing Plan
Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?
Marketing Plan Group Assignment Assume role of a “marketing manager” and
select a company within a specified industry Develop a marketing plan for a product or
service not currently offered by your company to be launched on the Swedish market Completely new-to-the-world or can be new just to
your company Write a comprehensive marketing plan
profiling the competitive strategy to bring that product or service to the Swedish market.
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Marketing Plan Teams
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GROUPS PREFERENCES
1. CG AwesomeB2C SME Service - Crown Innovative Parking
2. Brazilian BBQ B2C SME Service -
4. Fika 4 SixB2C SME Product – Frank’s Red Hot Sauce
5. 6 Llamas B2C MNC Product - Uniqlo
6. WICB2C MNC Service - Uber
Milestones October 20 – See “Group Assignment for Seminar 5” for information. October 20 – Submit Feedback on another team’s Initial Presentation. The
Feedback should add value to the other Team’s presentation content and the communication of the Team’s message. Your Feedback is also to include a summary of the main points made by the other students during the presentation on October 20. Your Feedback is to be in MS Word Doc (max 2 pages) format and have points on both strengths and weaknesses regarding content and communication style. Feedback teams will be assigned in class.
November 3 – Present a 10 min max Final PPT Presentation on your marketing plan.
November 4 – Submit Feedback on another team’s Final Presentation. The Feedback should add value to the other Team’s presentation content and the communication of the Team’s message to help them finalize their Final Report. Your Feedback is also to include a summary of the main points made by the other students during the presentation on November 3. Your Feedback is to be in MS Word Doc (max 3 pages) format and have points on both strengths and weaknesses regarding content and communication style. Feedback teams will be assigned later in the course.
November 9 - Submit the Marketing Plan of maximum 15 pages (MS Word Doc not including title page, executive summary, table of contents, references or appendices).
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Final Report 15 pages
Not including title page, executive summary, table of contents, references or other appendices
Single-spaced, 12 Times Roman, numbered pages, 2.54 margins All sources documented in proper manner
See www.plagiarism.org for more information on how to cite and document sources.
The marketing plan is evaluated according to three criteria
Professional Written and Oral Communications Critical Thinking Involving Analysis and Understanding of Theoretical
Concepts and Frameworks that Build Your Argument Creative and Original Content yet Feasible Plan
Each group member contributes to the assignment in fair proportion
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Independent Research – Get Started Now
Start researching Use library’s databases and library staff Determine what data you need to collect and how
Qualtrics, databases, interviews, etc. Contact any relevant people
Follow related topics on twitter: marketing, industry product, etc.
Blog, tweet, post, etc. about what you find #SSEMGM2014
Share with one another!
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Take a look at what is out there Online marketing plan templates /
software slideshare, youtube, blogs
Passport GMID database (Amazing!) E.g., SWOT
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Seminar 4 Overview Identifying Market Segments and Targets:
Exploring Segmentation, Targeting, and Positioning
Guest Speaker, Paola Peretti, Electrolux
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