Strengths Weaknesses As MARKETING MANAGER Youre will be

Strengths & Weaknesses

As MARKETING MANAGER You’re will be responsible for: Planning, implementing & controlling your marketing strategy Product Place Target & Position Price Promotion

Marketing Managers become one-w/ Relationships betw Price & demand n Price & margin n Promotion budget & awareness n Sales budget & accessibility n A/R policy & demand n

M A RKETING M G T. S I M U LA T I ON Fine tune your Promotion & Sales efforts:

• Marketing also selects media vehicles & message weights • AND determines composition of sales/distribution staff. . and allocation of their efforts by segment & Brand

M A RKETING M G T. S I M U LA T I ON Promo Budget

M A RKETING M G T. S I M U LA T I ON Advertising Budget Drives Awareness $3 M buys 49% New products are newsworthy events. The buzz creates 25%

M A RKETING M G T. S I M U LA T I ON Sales Budget Drives Access $3 M buys ~31% (w/1 product) 33% (w/ 2+ products)

M A RKETING M G T. S I M U LA T I ON Decide on how many F 2 F salespersons, Webstirs, Customer support & Distributors…will have: Sales Budget & Time Allocations How much effort will be focused on Individual Brands w/in channels: • OUTSIDE sales-meet face-to-face (cost $120 K/each) • INSIDE sales-works leads & operates website & customer support systems (cost $50 K/each) • Distributors: push product (cost $100 K/each)

Direct R&D A SIZE Product Position ü Age & Quality ü New product development ü B Performance High Eight < < < Low Quality Line Low Age One Prdt

n Establish product positioning to meet customer demand n Build quality & reliability (MTBF) into products Create new products Ensure age of product meets customer demands n n Drift

The Big Q How good are your goods…

R U Meeting Consumers’ Expectations?

Portfolio Analysis Which Brands should receive more/ less/ no investment-Based on: Ø Ø Product Position/ Potential Profitability/ Margins Market-Growth/Market. Share Matrix Competitive Strategy

Strategic Thinking- the ten big ideas 4. Portfolio theory- GE-(three-by-three matrix, using business strength & market attractiveness as variables). The Boston Consulting Group (BCG) introduced its two-by-two matrix(invest in the stars, divest the dogs, milk the cows, and solve the question marks)

G. E Strategic Planning Model Business Strength Strong Average Weak High Industry Attractivenes s Low Business Strength Index Attractiveness Index * Market Share * Price Competitiveness * Product Quality * Customer Knowledge Competition Industry * Market size * Market Growth * Industry Profit Margin * Amount of

Boston Consulting Group’s Growth-Share Matrix Product-Market Growth (%) High Low 10 x STARS PROBLEM CHILD CASH COWS 4 x High DOGS 2 x 1. 5 x 1 x Relative Market Share . 5 x . 2 x. 1 x Low

M A RKETING M G T. Portfolio Analysis & Brand. Plans S I M U LA T I ON

M A RKETING M G T. S I M U LA T I ON Acre (Low End Segment) Criteria Weight Current Expected Objectives Tactics (Rnd 1) Price 53. 0% $21. 00 $14. 50 $24. 50 Price is #1 buying criterion and must be kept relatively low to stay competitive. As a differentiator, our company will keep prices in the upper third of the range. Price will not be changed for the initial rounds, then will be slowly reduced to account for "inflation" and improvements in automation. Age 24. 0% 7. 0 4. 6 Keep age relatively close to ideal by updating the R&D parameters every 3 -4 rounds. Current age is on the fringe of the acceptable range, have to update the brand in Round 1 even if slightly. Position 16. 0% Pfmn 3. 0, Size 17. 0 Pfmn 2. 2, Size 17. 8 This will be the slowest-drifting segment on the market. Changes to positioning will only be needed to update the brand's age and stay within a reasonable range of the ideal spot. Since age needs to be updated ASAP, minor changes are needed in Round 1: * Pfmn +0. 2 * Size -0. 2 Reliability, MFBT 7. 0% 14 k 12 k - 17 k Reliability is not a major factor for consumers, can be upgraded only if resources allow. No change, keep at 14 k.