ENT 4210 – meeting no. 2
Agenda
 Introduction: industry/competitor analysis
(chs 3-4)
 Case presentations: focus, main challenges, and plan
(15 minutes per group)
1-1
Marketing Plan
A marketing plan is a written
document containing the
guidelines for the business
center’s marketing programs
and allocations over the
planning period.
1-2
Hierarchy of Planning
Corporate
Strategic Planning
Group or Sector
Planning
SBU Planning
Annual Marketing
(Business) Plan
1-3
Objectives of a Marketing Plan
1. Define the current business situation.
2. Define problems and opportunities facing the
business.
3. Establish objectives.
4. Define the strategies and programs necessary
to achieve the objectives.
1-4
Objectives of a Marketing Plan cont.
5. Pinpoint responsibility for achieving
product objectives.
6. Encourage careful and disciplined
thinking.
7. Establish a customer/competitor
orientation.
1-5
Frequent Mistakes in the Planning Process





The speed of the Process
The Amount of Data Collected
Who does the Planning?
The Structure
Length of the Plan
1-6
Frequent Mistakes in the Planning Process (cont)





Number of Courses of Action Considered
Who Sees the Plan
Not Using the Plan as a Sales Document
Insufficient Senior Management Leadership
Not Tying Compensation to Successful
Planning Efforts
 Frequency of Planning
1-7
Marketing Planning Sequence
Update
historical
data
Collect
current
situation
data
Data
analysis
Develop
objectives,
strategies,
programs Develop
financial
documents Negotiate
final plan
Measure
progress
toward
objectives
Audit
1-8
Marketing Plan Summary
I. Executive summary
II. Situation analysis
A.
B.
C.
D.
E.
Category/competitor definition
Category analysis
Company and competitor analysis
Customer analysis
Planning assumptions
1-9
Marketing Plan Summary cont.
III. Objectives
IV. Product/brand strategy
V. Supporting marketing programs
VI. Financial documents
VII. Monitors and controls
VIII. Contingency plans
1-10
Bases of Competition
I.
Customer-oriented
Who they are – competition for same budget
When they use it
Why they use it- benefits sought
II. Marketing-oriented: advertising and
promotion
Theme/copy strategy
Media
Distribution
Price
1-11
Bases of Competition cont.
III. Resource-oriented
Raw materials
Employees
Financial resources
IV. Geographic
1-12
Levels of Competition
Beers
Ice
cream
Tea
Regular
colas
Diet
lemon
limes
Diet-Rite
cola
Wine
Diet
Pepsi
Diet
Coke
Fast food
Bottled
water
Baseball
cards
Fruit
flavored
colas
Coffee
Lemon
limes
Product form
competition:
Diet colas
Juices
Product
category
Video
competition: rentals
Soft drinks
Generic
competition:
Beverages
Budget
competition:
Food and
entertainment
1-13
Energy Bar Competition
Other Snacks
Healthy Snacks
Snack/Health
Bars
Energy
Bars
Odwalla
Power Bar
Balance Bar
Clif
Nutrigrain Bars
Slimfast Bars
Granola Bars
Fruits
Nuts
Juice
Crackers
Chips
Candy
1-14
PDA Competition
Level of
Competition
Definition
Product form POAs
Full-features
Product category
PIMs
Generic computers
Notebook/
subnotebook
Paper-based solutions
Budget
Business items costing
$100-$1,000
Competitors
Palm Pilot VII
Compaq Aero
Casioplus integrated
communication
Cassio Poeia
Palm III
Royal
Casio PV-100
IBM
Toshiba
Many others
Rolodex
Day Timer
Need Satisfied
Personal information
management plus
PIM only
Other solutions to the
above
Fax machines
Personal copiers
Cellular phones
Furniture (e.g.
Steelcase)
1-15
Attractiveness of Market Variables
1-16
Category Attractiveness over
the Product Life Cycle
Sales
Stage of
product
life cycle
Introduction
Growth
Maturity
Decline
Category
size
Small
Moderate
Large
Moderate
Category
growth
Low
High
Low
Negative
Category
attractiveness
Low
High
Low/high
Low
Time
1-17
Category Factors
 Threat of new entrants
 Bargaining power of buyers
 Bargaining power of suppliers
 Current category rivalry
 Pressure from substitutes
 Category capacity
1-18
Environmental Factors
 Technological
 Political
 Economic
 Regulatory
 Social
1-19
Typology of Technical Developments
* Includes agronomic and biomedical developments.
1-20
Conceptualizing Political Risks
1-21
Projected Change in U.S. Population 1995-2005
1-22
PDA: Category Attractiveness Analysis
Aggregate
Market Factors
Attractiveness
Market Size
Market Growth
Product Life Cycle
•$2.3 billion
Profits
Sales Cyclicity
Good
Sales Seasonality
one
0%-40%
Growth
one
+
+
+
+/0
+
+
1-23
PDA: Category Attractiveness Analysis
Category
Factors
Attractiveness
Threat of New
Entrants
•Moderate; R&D required,
distribution
0
Bargaining
Power of Buyers
Low, high switching costs
+
Bargaining Power
of Suppliers
Moderate; PCs use similar
components
0
Category Rivalry
Pressure from
Substitutes
Intense
-
High
-
Category Capacity Not a problem for now
+
1-24
PDA: Category Attractiveness Analysis
Environmental
Factors:
Attractiveness
Technological
•Very sensitive
-
Political/
Regulatory
Telecommunications
deregulation
+
Economic
Relatively inexpensive
+
Social
More work done on
the road
+
1-25
Competitor Analysis System
Secondary data
-
-
Primary data
Key questions:
Who are they?
What are the
competing product
features?
What do they
want?
What is their
current strategy?
Differential
competitor
advantage analysis
i.e. Who has the
competitive product
advantage?
What are they going to
do?
1-26
Primary Sources of Competitor Information
Consultants/
Specialized
Firms
Investment
Bankers
Sales Force
Primary
Data
Suppliers
Employees
Customers
1-27
Secondary Sources of Competitor Information
Consultants
Customer
Communi
cations
Internal
Sources
Local
Newspapers
Annual
Reports
Trade Press
Internet
Patent
Filings
Secondary data
Promotional
Literature
10Ks
Business
Press
Trade
Associations
News
Releases
Electronic
Databases
Government
1-28
Other Sources of Competitor Information
Help-Wanted
Advertisements
Hiring Key
Employees
Trade Shows
Primary
Data
Plant Tours
Monitoring
Test Markets
Reverse
Engineering
1-29
Sources with Ethical Considerations





Aerial reconnaissance
Buying/stealing trash
Bribing printers
Running phony want ads
Snooping on airplanes
1-30
Assessing Competitors’ Strategies
Marketing strategy
Comparing value chains
Marketing mix
 Pricing
 Promotion
 Distribution
 Product/Service capabilities
1-31
Criteria to Assess Technological Strategy
1. Technology selection or specialization
2. Level of competence
3. Sources of capability: internal versus
external
4. R&D investment level
5. Competitive timing: initiate versus respond
6. R&D organization and policies
1-32
Competitor Information to Collect
 Ability to conceive and design
 Ability to produce
 Ability to market
 Ability to finance
 Ability to manage
1-33
PDA Product Features Matrix
1-34
Comparison of Competitor Resources: PDAs
1-35
Comparison of Competitor Resources: PDAs (cont.)
1-36