Today
9:30 to 10:50
Check your group # -- are you in a
group? If not – you need to get in one
Simulation information
Finish Seinfeld’s “Soup Nazi”
Notice – Group Pictures today and on
Thursday
Get the “Groups” Settled
Chapter 4
4-0
Simulation
Teams for simulation are
comprised of 2 to 3 students
from the same marketing plan
group
I’ll be around to ask you who are
the simulation team members
I will give you a team (group #)
and a Game ID allowing you to
sign-up for the simulation
4-1
The Soup Nazi
GroupSoupNazi2005.ppt
4-2
Groups
After watching the video (last Thursday)
we need to answer the following
questions:
What is his value proposition?
Is there a value chain?
Is there a value delivery network?
Who’s the segment?
Who’s the target market?
What’s the market position?
What marketing mix elements are
emphasized?
4-3
8 Steps of SBU Strategic Planning
4 Elements
-What’s the business
-Who’s the customer
-What’s the value to
the customer
-What should the
business become
MOA – 5Q’s
Opportunity and threat matrix
-Benefit articulated to target
-Reach target effectively with Probability of success and how attractive is opportunity
promotion and price
Probability of occurrence and seriousness of threat
-Capabilities and resources
-Deliver value better than
competition
-ROR meet or exceed company
Porter Generic Strategies
threshold
-Cost leader
-Differentiation
-Focus
Strengths/Weaknesses
Analysis - Org. Dept.,
rate, rank
6 Basic Objectives
-Profit
-Growth
-Share
-Risk containment
-Reputation
The Mix
-Product
-Price
-Promotion
-Place
4-4
Opportunity and Threat Matrices
Opportunities and Threats Matrices (external)
Strengths and Weaknesses (internal)
Strength and Weaknesses Analysis
A market opportunity is an area of buyer need or potential interest in which the
company can perform profitably.
Opportunity Matrix
MOA Questions
1. Can the benefits involved in the opportunity be articulated convincingly to a defined
target market?
2. Can the market be located and reached with cost-effective median and trade channels?
3. Does the company possess or have access to the critical capabilities and resources
needed to deliver the customer benefits?
4. Can the company deliver the benefits better than any actual or potential competitors?
5. Will the financial rate of return meet or exceed the company’s required threshold for
investment?
Performance
Major
Minor
Strength
Strength
Neutral
Importance
Minor
Major
W eakness
W eakness
Hi
Med
Low
MARKETING
I. Com pany reputation
2. Market share
3. Custom er satisfaction
4. Custom er 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 or availability of capital
14 Cash flow
15 Financial stability
MANUFACTURING
16. Facilities
17. Econom ies of scale
18. Capacity
19. Able, dedicated workforce
20. Ability to produce on time
21. Technical m anufacturing skill
ORGANIZATION
22. Visionary, capable leadership
23. Dedicated em ployees
24. Entrepreneurial orientation
25. Flexible or responsive
Four outcomes of a SWOT analysis
A market threat is a challenge posed by an unfavorable trend or development that would
lead, in the absence of defensive marketing action, to deterioration in sales or profit
Threat Matrix
1. An ideal business high in major opportunities and low in major threats
2. A speculative business is high in both major opportunities and threats
3. A mature business is low in major opportunities and low in threats
4. A troubled business is low in opportunities and high in threats
Opportunity
1. Major threat
2. Monitor cell
3. Monitor cell
4. Minor threat
1
2
3
4
Threat
4-5
Value Creation
Product Strategy
Value Creation and Delivery Sequence
Product
Price
Place
Promotion
4-6
The Marketing Process
The Marketing Process
 Analyzing Market Opportunities
 Researching and Selecting
Target Markets
 Designing Marketing Strategies
 Planning Marketing Programs
 Organizing, implementing, and
Controlling the Marketing Effort
4-7
The Marketing
Environment
Chapter 4
Key Environments
Aspects of the marketing
environment:
 Microenvironment:

Actors close to the company
 Macroenvironment

Larger societal forces
For the exam, know the actors or
forces comprising each marketing
environment and general trend
4-9
Actors in the
Microenvironment
4 - 10
Major Macroenvironmental
Forces
4 - 11
The Macroenvironment
Key Demographic Trends
 World population
growth
Now 6.2 billion
 Projected to
reach 7.9 billion
by 2025

4 - 12
The Macroenvironment
Key Demographic Trends
 Changing age structure

The U.S. population consists
of seven generational groups.
• Baby boomers, Generation X
and Generation Y are key
groups.

Distinct segments typically
exist within these generational
groups.
4 - 13
Figure 4-3:
Seven U.S. Generations
4 - 14
The Macroenvironment
The Economic Environment
 Affects consumer purchasing power and
spending patterns.
 U.S. consumers now spend carefully and
desire greater value.
Key Economic Trends
 U.S. income distribution is skewed.


Upper class, middle class, working class, underclass
Rich: getting richer
Middle class: shrinking
Underclass: still poor
 Consumer spending patterns are changing.
4 - 15
The Macroenvironment
The Natural Environment
 Concern for the natural
environment has grown
steadily, increasing the
importance of these trends:



Shortage of raw materials
Increased pollution
Increased governmental
intervention
4 - 16
The Macroenvironment
Key Technological Trends
 The technological environment
is characterized by rapid
change.
 New technologies create new
opportunities and markets but
make old technologies obsolete.
 The U.S. leads the world in
research and development
spending.
4 - 17
The Macroenvironment
The Political Environment
 Includes laws, governmental agencies, and
pressure groups that impact organizations and
individuals.
 Key trends include:



Increased legislation to protect
businesses as well as consumers.
Changes in governmental agency
enforcement.
Increased emphasis on ethical
behavior and social responsibility.
4 - 18
The Macroenvironment
The Cultural Environment
Is composed of institutions and other forces that
affect a society’s basic values, perceptions,
preferences, and behaviors.
Core beliefs are persistent
 Passed from parents to children; reinforced by society
 Shape attitudes and behavior
Secondary cultural values change and shift more
easily
Society’s cultural values are expressed through
people’s views of:






Themselves
Others
Organizations
Society
Nature
The Universe
4 - 19
Responding to the
Marketing Environment
Reactive:
Passive Acceptance and Adaptation
 Companies design strategies that avoid
threats and capitalize upon opportunities.
Proactive:
Environmental Management
 Use of lobbyists, PR, advertorials, lawsuits,
complaints, and contractual agreements to
influence environmental forces.
4 - 20
Soup Nazi
2GroupSoupNazi2005.ppt
4 - 21
Today
9:30 to 10:50
Groups and names
How to sign-up for the simulation
Chapter 5
Video
Groups question and pictures
And a surprise
4 - 22
Photos
Group photo --- please write
your group # on the photo,
and list the group members
from left to right
List names of group
members not in photo after
the first set of names
4 - 23
Teams
Within your group you will have
two (2) teams (Group 1 will have
Teams 1 and 2….Group 15 will
have teams 29 and 30)
The teams will be comprised of 2
to 3 group members each
You decide who is on what team
4 - 24
Simulation Sign-up
Go to:
https://web.marketplacesimulation.com/home2/purch
ase/purchase.php
Purchase student license
Follow hand-out instructions
4 - 25
Managing Marketing
Information
Chapter 5
Marketing Info. System
Marketing Information System (MIS)
 Consists of people, equipment, and
procedures that gather, sort,
analyze, evaluate, and distribute
needed, timely, and
accurate information
to marketing
decision makers.
4 - 27
Marketing Info. System
Developing
Information
Internal data
Marketing
intelligence
Marketing
research
Internal Data is
gathered via customer
databases, financial
records, and
operations reports.
Advantages of internal
data include quick/easy
access to information.
Disadvantages stem
from incompleteness
or inappropriateness
of data to a particular
situation.
4 - 28
Marketing Info. System
Developing
Information
Internal data
Marketing
intelligence
Marketing
research
Marketing intelligence
is the systematic
collection and analysis
of publicly available
information about
competitors and trends
in the marketing
environment.
Competitive
intelligence gathering
activities have grown.
Many sources of
competitive info. exist.
4 - 29
Marketing Info. System
Sources of
Competitive Intelligence
Company
employees
Competitor’s
employees
Internet
Trade shows
Garbage
Benchmarking
Published
information
Channel members
and key customers
4 - 30
Something Neat
Cipher Systems
http://www.cipher-sys.com
4 - 31
Marketing Info. System
Developing
Information
Internal data
Marketing
intelligence
Marketing
research
Marketing research is
the systematic design,
collection, analysis,
and reporting of data
relevant to a specific
marketing situation
facing an organization.
Several steps are
involved in the
marketing research
process.
4 - 32
Figure 5-2:
The Marketing
Research Process
4 - 33
Marketing Info. System
Step 1: Defining the problem and
research objectives
 Don’t confuse the symptoms
of the problem with its cause
when defining the problem.
 Exploratory, descriptive, and
causal research each fulfill
different objectives.
4 - 34
Marketing Info. System
Step 2:
Developing the
Research Plan
 Research
objectives
guide the
determination
of specific
information
needs.
4 - 35
Marketing Info. System
Step 2: Developing the Research Plan
 Research proposals outline the
type of data needed and the
research plan.
Secondary data: Information
collected for another purpose
which already exists.
 Primary data: Information collected
for the specific purpose at hand

4 - 36
Marketing Info. System
Types of Data
Secondary
data
Primary data
Secondary data
sources:
 Government information
 Internal, commercial,
and online databases
 Publications
Advantages:
 Obtained quickly
 Less expensive than
primary data
Disadvantages:
 Information may not
exist or may not be
usable.
4 - 37
Marketing Info. System
Types of Data
Secondary
data
Primary data
Planning primary
research:
 Research
approaches:
 Observation
 Survey
 Experiment
 Contact methods
 Sampling plan
 Research
instruments
4 - 38
Marketing Info. System
Research approaches:
 Observation research using people or
machines
Mystery shoppers, traffic counters, web
site “cookies” are some examples.
 Discovers behavior but not motivations.
 Ethnographic research expands
observation research to include
consumer interviews.

4 - 39
Marketing Info. System
Types of Data
Secondary
data
Primary data
Planning
primary research:
 Research
Approaches
 Contact methods:
 Mail
 Telephone
 Online
 Personal
 Sampling plan
 Research
instruments
4 - 40
Marketing Info. System
Step 3 of the
Research Process:
Implementing the
Research Plan
 Involves collecting,
processing, and
analyzing information.
4 - 41
Marketing Info. System
Step 4 of the Research Process:
Interpreting
and
Reporting
the Findings
4 - 42
The Persuaders
9 minute video highlighting
the impact marketing
(political) research can have
on the way we interpret
issues
FinalPersuaders.wmv
4 - 43
Groups
Based on your knowledge of the
research process, what types of
marketing research might you
employ in your marketing plan?
Why?
Group Pictures--- Smile
4 - 44
Pop-Quiz Time
Pop-Quiz #1
4 - 45