Embed Size (px)
DESCRIPTION
Marketing course at Copenhagen business School
Citation preview
Marketing strategy and planning in an international perspective
Intro to the course
the role of marketing in devoleping succesful business strategies
Week 37
Jacob Holm
www.office2go.dk
Jacob HolmEmail:
Studies:
Masters in economics, Århus Universitet (Cand Oecon)
University of California at Berkeley
Positions: Position now:
www.Office2go.dk
The marketing management processPart 1:Marketing Strategy
• Market –led strategic management – chapter 1
• Strategig marketing plannng
Part 2: Competitive market analysis• The changing market environment – chapter 3
• Customer analysis – chapter 4
• Competitor analysis - chapter5
• Understanding the organizational resource base – chapter 6
• Forecasting future demand and market requirements – chapter 7
Part 3: Identifying current and future competitive positions
• Segmentation and positioning principles – chapter 8
• Segmentation and positioning research – chapter 9
• Selecting target markets– chapter 10Part 4: Competitive position strategies
• Segmentation and positioning principles – chapter 11
• Competing through the new marketing mix – chapter 12
• Competing trough innovation– chapter 13
• Competing through superior service and customer relationship – chapter 14
Part 5: Implementing the strategy• Strategic customer management – chapter 15
• Strategic alliances and network – chapter 16
• CSR – chapter 18 www.Office2go.dk
A bit inspiration before we startWhat’s it all about?
Fenway and Why sport
www.Office2go.dk
Teachers
• Lecturer: Jacob Holm (Jes Trygved, Peter Becker)
• Classes:– Class A: Peter Becker– Class B: Jes Trygved– Class C: Jacob Holm
• Markops Online Simulation– Jacob Holm,
• Exams: Synopsis and oral examination
www.Office2go.dk
Eksamen
• Hvordan får du et top resultat– Kend din teori (dette er CBS)– Relater teorien til en case (det virkelige liv)– Ha’ overblik over stoffet– Kunne kritisere teori – kritik kan både være positivt og negativt.
• Se pensum som en helhed• Formuler klart of præcist
www.Office2go.dk
Hvad lægges der vægt på til eksamen
• at den studerende demonstrerer forståelse for og indblik i diverse strategiske modellers, teoriers og metoders anvendelsesmuligheder/-begrænsninger i forbindelse med identifikation, formulering og analyse af marketingmæssige problemstillinger på det internationale marked;
• at den studerende demonstrerer evne til at koble og konvertere interne og eksterne informationer/data samt analyseresultater til beslutningsstøttende information med henblik på at kunne vurdere valg af strategiske alternativer:
• at der vises forståelse for og indblik i det kulturelle aspekt af international marketing, og hvilke udfordringer det medfører for virksomhedens strategier og planlægning;
• at den studerende formår at relatere fagets teoretiske apparat til konkrete cases;Det forventes således, at der bl.a. kan drages paralleller til cases gennemgået i undervisningen.
• at såvel synopsis som oplæg er velstruktureret, velargumenteret og velformuleret
www.Office2go.dk
”It is not the future that I fear.....
it is not being able to let go of the
past”John Meynard Keynes, 1883-1946
Before we start………
www.Office2go.dk
Case: Renault F1
• Scene: Race track ”Monza, Italy”, 2009, July – race day; Saturday, time=10.00 hrs.
• Weather: Sunny, temperatures are expected to be above 30 C during mid day.
• Race starts at 1300 hrs and finish at 1600 hrs.• You are technical director Bob Bell of the
Renault sponsored F1 team.• You have a team of a 100 specialist and
mechanics to help you take decisions.
But you are the manager and have to take the decisions!
www.Office2go.dk
Case: The situation
• Test races has shows problems with the breaks.
• You have had 2 cancellations previous this year due to engine failures and similar break problems as this race day.
• Renault is entitled to withdraw its sponsorship with its finance share of more than 75% of the team budget if the team cancel a third time.
• You are in the middle of the season and finding a new sponsor is not an option.
• If you decide not to run, Renault will withdraw and cause a bankruptcy and you and your colleagues will be without a job.
• Break failures can be fatale.
www.Office2go.dk
Case: Renault F1 - Data
Data are inconclusive:• Tests show signs of break failure when the
temperature is at 28 C or above, but only under wet conditions (rain)
• However tests also shows that in 30% of the cases, break failures appears at temperatures higher than 28 C under dry conditions.
• However it is not certain if this temperature limit is 28, 30 or 33 C due to lack of significant tests.
• Their is no proven correlation between temperature and the likely hood of break failure at this stage.
www.Office2go.dk
Case: Renault F1 - Monza
Monza has an extremely dangerous corner – “point A” –
where the drivers come into the corner with app 300 km (186
miles) A
Robert Kubica & Vitay Petrov
Whether forecast: above 30 C during mid day.
www.Office2go.dk
Case: Renault F1 - Task:
Do you race: Yes or No ?
You alone have to take the decision!
Renault F1 technical director Bob Bell
www.Office2go.dk
Case or real life ?
This is of course a story, but a story with a point. As marketing people we need to take decisions – not life or death
decisions, but budget decisions every day!To be able to take the right decisions we need to have a
appropriate strategy!
www.Office2go.dk
How do we work?
1. Problem identification2. Problem formulation3. Solution or suggestion
Method
Case discussion Markops game
Teach method – we will go behind the problem to come up with a
solution
www.Office2go.dk
222 Third Street Cambridge, MA 02142Tel: (617) 494-8282 Fax: (617) 494-1421
Markops Online Simulation
Why include a simulation game in the course?
Introduction to the Markops world
Your task in brief!
www.Office2go.dk
4 companies are in competition in a fictitious FMCG market: the “Yumite” market
“Yumites” are a class of edible consumer products comparable to savory snacks, confectionary products or dessert items
“Yumite products have existed for several years
Now a well-established market, with several strong brands at different price points covering a wide range of needs
Consistent solid growth since the introduction of the first Yumite brand
Probable continued growth over the next five years
www.Office2go.dk
Five consumer segments of Yumite products vary in age, occupation and family status
Low family income 25 – 45 Married with kids Buy lower quality products Very price sensitive
LOW INCOME FAMILIES
Low income 18 – 35 Single, student or employee Heavy users, rather price
sensitive
SINGLES
Lower income than Affl. Fam. 25 – 45 Married with kids Buy average quality products Slightly price sensitive
MEDIUM INCOME FAMILIES
High income 25+ Single or married no kids Buy expensive products Motivated by social status
HIGH EARNERS
High income 25 – 45 Married with kids Frequent buyers of Yumites Buy high quality products
AFFLUENT FAMILIES
www.Office2go.dk
Over 95% of Yumite products are purchased in traditional distribution channels
10 chains – 12,500 stores Food, house wares, personal
care products Limited product line Cheaper, lower-quality brands
MASS MERCHANDISERS
20 chains – 2,000 stores Large % sales from Yumites Broad product line Both cheap and expensive
brands
SUPERMARKETS
15 chains – 6,000 stores Specialize in Yumites Extensive customer service Focus on expensive, high quality
brands
SPECIALTY CHAIN STORES
www.Office2go.dk
Data is available on Consumers, Firms, Brands... It is up to you to prioritize, digest and interpret them
InformationStrategicOptions
Data
www.Office2go.dk
Newsletter Attributes of marketed brands
Brand names start with firm’s initial
www.Office2go.dk
You are responsible for designing and implementing the marketing strategy of your firm
Product portfolio strategy Which brands the company is going to develop and market
Segmentation and positioning strategy Which market segments will be targeted
How products will be positioned
Marketing mix strategy Day-to-day operational marketing decisions
Pricing, production, communication, distribution, …
www.Office2go.dk
Your mission
IMPROVE CONSUMER WELL-BEINGTHROUGH INNOVATIVE
PRODUCTS AND SERVICES
AND
MAXIMIZESHAREHOLDER VALUE
www.Office2go.dk
www.Office2go.dk
www.Office2go.dk
What is marketing’s role
“There are only one valid definition of business purpose: To create a customer!
Because it’s purpose is to create a customer, a business has two – and only two – basic functions. Marketing and innovation. They produce results – all the rest are costs”
Peter Drucker – Markedsføring 12 – 2005
Therefore we need to focus on: 1. how we increase the effectiveness of the
marketing effort2. The level of innovation
www.Office2go.dk
Controlling marketing activity
There is an old saying that goes somewhat like this:“Half of the marketing budget will probably be wasted – the problem is that we do not know which half it is before after the budget period………..”
This is just not god enough in today’s business world !!!
Marketing needs to compete for resourcesIn the company like all other departments
www.Office2go.dk
FindingsUniverse: 400 BTB DK based
companies Written Mkt-plan: 79% no
Does Mkt-dept know KPI: 70% no
Act or react mode: 75% react mode (ie vs competitor)
Does Mkt-dept know sales targets: 70% no
Does Mkt-dept know markets and competition: 70% no
Is marketing involved in costumer relations: 80% no
Is the Mkt-dept ”competent”: 72% no
Is the Mkt-dept marketing educated: 75% no
Is the Mkt-dept respected in ”sales”: 80% no
Is Mkt-dept part of top management: 92% no
Research in ”Markedsføring” No 12 (24 of Augst 2004), page 15, source ChangeMarketig
www.Office2go.dk
But this is not the case………..
In a recent research 204 CEO’s in Danish companies with over 50 employees where asked which department who contributed with most value to the company?
0% 10% 20% 30% 40% 50% 60%
Human research
Research & Development
Finance
IT
Marketing
Distribution
Production
Business development
Customer service
Sales
Source: Institut for konjunktur-analyse: 5-11 juli 2005
www.Office2go.dk
Strategy
“ A strategy is a fundamental pattern of present and planned objectives, resource deployments and interactions of an organization with markets, competitors, and other environmental factors”
-------- And what does that mean ?……………………
www.Office2go.dk
Clausewitz was one of the first and largest strategic thinkers:
“War is merely a continuation of politics”
Wom Kriege 1832
What is strategyStrategy is war tactics
Carl Philipp Gottlieb von Clausewitz1. juli 1780 - 16. november 1831
www.Office2go.dk
Marketing fundamentals
• Principle 1: Focus on the customer– What business are we in?– What business could we be in?– What business do we want do be in?– What must we do to get into or consolidate in that business
www.Office2go.dk
Marketing fundamentals
• Principle 1: Focus on the customer• Principle 2: Only compete in markets where you can
establish a competitive advantage
www.Office2go.dk
Marketing fundamentals
• Principle 1: Focus on the customer• Principle 2: Only compete in markets where you can
establish a competitive advantage• Principle 3: Customers do not buy products……..
• Women do not by shoes for walking – they by fashion. • You by headache relief not Aspirin
– A products value is a function of a lot of different aspects which are different from buyer to buyer.
www.Office2go.dk
Marketing fundamentals
• Principle 1: Focus on the customer• Principle 2: Only compete in markets where you can
establish a competitive advantage• Principle 3: Customers do not buy products……..• Principle 4: Marketing is to important to leave to the
marketing departmentProducts, prices, place, promotion
www.Office2go.dk
Marketing fundamentals
• Principle 1: Focus on the customer• Principle 2: Only compete in markets where you can
establish a competitive advantage• Principle 3: Customers do not buy products……..• Principle 4: Marketing is to important to leave to the
marketing department• Principle 5: Markets are heterogeneous
www.Office2go.dk
Marketing fundamentals
• Principle 1: Focus on the customer• Principle 2: Only compete in markets where you can
establish a competitive advantage• Principle 3: Customers do not buy products……..• Principle 4: Marketing is to important to leave to the
marketing department• Principle 5: Markets are heterogeneous• Principle 6: Markets and customers are constantly
changing– Situationsbestemt forbrug (Institut for fremtidsforskning 2003)
• Her tager mennesket ikke udgangspunkt i sig selv og den type man tilhører, men mere i den situation som man står i og den rolle man har i situationen.
• Lad os kigge på et godt eksempel ØL!
www.Office2go.dk
Eksempel: øl og det situationsbestemte forbrug
www.Office2go.dk
Mission, Vision og Værdier
Mission (hvem er vi?)• Fortæller kort hvilke behov og ønsker hos kunderne virksomheden vil dække –
og hvordan de vil gøre det• Bæredygtig over tid• Beskriver kerneforretningen• Virksomhedens eksistensberettigelse – hvorfor er vi her?
Vision (hvem vil vi være?)• Fremtiden – det virksomheden stræber mod (fyrtårn, stjerne mm)• Skal være ambitiøs og skabe inspiration/motivation/stolthed
Værdier (hvordan gør vi det?)• De grundlæggende principper for ledelsens og medarbejdernes adfærd
www.Office2go.dk
SWOT…
S: STYRKER T: TRUSLER
INTERNE ANALYSE-MODELLER
EKSTERNE ANALYSE-MODELLER
W: SVAGHEDER M: MULIGHEDER
INTERNE ANALYSE-MODELLER
EKSTERNE ANALYSE-MODELLER
• HVAD KAN VI KONKLUDERE PÅ BAGGRUND AF VORES SWOT?• HVILKE STYRKER/SVAGHEDER SPILLER SAMMEN MED HVILKE TRUSLER/MULIGHEDER?
• DET ER HER VI FINDER VORE KONKURRENCEFORDELE!
www.Office2go.dk
Inden du laver en SWOT
• Definer hvad du laver en SWOT for!– Virksomhed– Produktgruppe– Brand– Marked
• Hvor en SWOT kun analyserer, tager TOWS løsninger med !
www.Office2go.dk
Forretningsstrategier
www.Office2go.dk
Generic strategies
“ How should a business position its product offering so customers in the target market perceive the offering as providing the benefits they seek, thereby giving the product an advantage over current and potential future competitors”.
“ A company can outperform its rivals only if it can establish a difference that in can preserve. It must deliver greater value to customers or create comparable value at a lower cost”.
www.Office2go.dk
Good
Poor
Strategy
Implementation
Success:
• All that can be done to assure success has been done – 25%
Roulette:
• Good execution can mitigate poor strategy, ”forcing” management to success – 10 %
Or
• The good execution can hasten failure.
Trouble:
• Poor execution hampers good strategy. Management may never become aware of strategic soundness because of execution inadequacies. – 50 %
Failure:
• Very hard to diagnose, because bad strategy is masked by poor execution.
• Even harder to fix, because two things are wrong. – 25 %
Thomas Bonoma; Problem diagnosisSource : ”The marketing edge – making strategies work”
Appropriate Inappropriate
www.Office2go.dk
The marketing management processPart 1:Marketing Strategy
• Market –led strategic management – chapter 1
• Strategig marketing plannng
Part 2: Competitive market analysis• The changing market environment – chapter 3
• Customer analysis – chapter 4
• Competitor analysis - chapter5
• Understanding the organizational resource base – chapter 6
• Forecasting future demand and market requirements – chapter 7
Part 3: Identifying current and future competitive positions
• Segmentation and positioning principles – chapter 8
• Segmentation and positioning research – chapter 9
• Selecting target markets– chapter 10Part 4: Competitive position strategies
• Segmentation and positioning principles – chapter 11
• Competing through the new marketing mix – chapter 12
• Competing trough innovation– chapter 13
• Competing through superior service and customer relationship – chapter 14
Part 5: Implementing the strategy• Strategic customer management – chapter 15
• Strategic alliances and network – chapter 16
• CSR – chapter 18 www.Office2go.dk
Jacob HolmEmail:
Nothing more for today
